Controlling
User Manual
Prepared by: Vishnu Murthy N
Page 1 of 269
Table of Contents
CO MODULE OVERVIEW.........................................................................................................6
INTRODUCTION.............................................................................................................................7
COST CENTER ACCOUNTING..............................................................................................10
INTRODUCTION...........................................................................................................................11
MASTER DATA............................................................................................................................12
Cost Element..........................................................................................................................12
Cost Elements Group.............................................................................................................19
Standard Hierarchy...............................................................................................................21
Cost Center............................................................................................................................23
Cost Center Group................................................................................................................28
Activity Type..........................................................................................................................30
Activity Type Group...............................................................................................................33
Statistical Key Figure............................................................................................................35
Statistical Key Figure Group.................................................................................................37
PLANNING...................................................................................................................................39
Cost and Activity Inputs........................................................................................................40
Activity Output/Prices...........................................................................................................44
Statistical Key Figures..........................................................................................................48
Cost Center Budgets..............................................................................................................51
Planning Aids........................................................................................................................53
Plan Assessment Cycle..........................................................................................................57
ACTUAL POSTINGS.....................................................................................................................65
Manual Reposting of Costs....................................................................................................65
Manual Reposting of Revenues.............................................................................................68
Repost Line Items..................................................................................................................70
Statistical Key Figures..........................................................................................................74
PERIOD-END CLOSING................................................................................................................76
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Actual Assessment Cycle.......................................................................................................76
INFORMATION SYSTEM...............................................................................................................84
ENVIRONMENT...........................................................................................................................85
Period Lock...........................................................................................................................85
INTERNAL ORDERS.................................................................................................................90
INTRODUCTION...........................................................................................................................91
MASTER DATA............................................................................................................................92
Create Internal Order............................................................................................................92
Internal Order Group..........................................................................................................100
PLANNING.................................................................................................................................102
Overall Values.....................................................................................................................102
Cost and Activity Inputs......................................................................................................104
Planning Aids......................................................................................................................107
BUDGETING..............................................................................................................................111
Original Budget...................................................................................................................111
Supplement...........................................................................................................................113
Return..................................................................................................................................115
Document.............................................................................................................................117
ACTUAL POSTINGS...................................................................................................................119
PERIOD-END CLOSING..............................................................................................................120
Settlement............................................................................................................................120
YEAR-END CLOSING................................................................................................................130
Budget Carry-forward.........................................................................................................130
Commitment Carry-forward................................................................................................132
INFORMATION SYSTEM.............................................................................................................134
PLANT MAINTENANCE ORDERS.......................................................................................135
INTRODUCTION.........................................................................................................................136
MASTER DATA..........................................................................................................................137
Create Plant Maintenance Order........................................................................................137
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PERIOD-END CLOSING..............................................................................................................140
Charging of Overheads.......................................................................................................140
Settlement............................................................................................................................148
PRODUCT COST CONTROLLING......................................................................................156
INTRODUCTION.........................................................................................................................157
PRODUCT COST PLANNING......................................................................................................159
Display Materials to be Costed...........................................................................................159
Selection List for Costing Run.............................................................................................162
Edit Selection List for Costing Run.....................................................................................165
Cost Estimate with Quantity Structure................................................................................167
Cost Estimate without Quantity Structure...........................................................................173
Marking Allowance.............................................................................................................178
Marking Standard Cost.......................................................................................................180
Release Standard Cost.........................................................................................................182
PRODUCT COST COLLECTORS.........................................................................................184
INTRODUCTION.........................................................................................................................185
MASTER DATA..........................................................................................................................187
Individual Creation of Product Cost Collector...................................................................187
Collective Creation of Product Cost Collectors..................................................................191
PERIOD-END CLOSING..............................................................................................................193
Charging of Overheads.......................................................................................................193
Variance Calculation...........................................................................................................202
Settlement............................................................................................................................206
PROFITABILITY ANALYSIS.................................................................................................214
INTRODUCTION.........................................................................................................................215
PERIOD-END CLOSING..............................................................................................................219
Assessment Cycle.................................................................................................................219
PROFIT CENTER ACCOUNTING........................................................................................225
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INTRODUCTION.........................................................................................................................226
MASTER DATA..........................................................................................................................227
Profit Center........................................................................................................................227
Standard Hierarchy.............................................................................................................230
Profit Center Group.............................................................................................................232
Account Group.....................................................................................................................234
Assignment Monitor............................................................................................................236
ACTUAL POSTINGS...................................................................................................................243
Profit Center Document......................................................................................................243
Statistical Key Figures........................................................................................................246
Period-End Closing.............................................................................................................249
Transferring Payables/Receivables.....................................................................................256
Transferring Assets..............................................................................................................258
Transferring Material Stocks...............................................................................................261
Balance Carry-forward.......................................................................................................263
INFORMATION SYSTEM.............................................................................................................266
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Controlling
CO Module Overview
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Controlling
Introduction
The Controlling Module of SAP R/3 deals with tasks like Cost Center Accounting (create
required master data, planning of cost, planned activity prices and period-end closing
activities), Internal Orders (create required master data, planning, budgeting, period-end
closing activities and variance analysis), Product Costing (calculation of standard cost
estimate, actual cost and variance analysis), Profitability Analysis (profitability by
customer, customer group, product, product group, profit center, plant, sales order,
sales organization, country etc.), and Profit Center Accounting (Profit & Loss Account
and Balance Sheet by Profit Center).
SCOPE:
The following components of CO are covered in different sections of this document:
1. Cost Center Accounting
o Master data

Cost Element

Cost Element Group

Standard Hierarchy

Cost Center

Cost Center Group

Activity Type

Activity Type Group

Statistical Key Figures

Statistical Key Figure Group
o Planning

Cost and Activity Inputs

Activity Output/Prices

Statistical Key Figures
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Controlling

Cost Center Budgets

Planning Aids

Allocations
o Actual Postings

Manual Reposting of Costs

Manual Reposting of Revenues

Repost Line Items
o Period-End Closing

Assessment Cycle
o Information System

Reports for Cost Center Accounting
o Environment

Period Lock
2. Internal Orders
o Master Data

Special Functions

Order Group
o Planning

Overall Values

Cost and Activity Inputs

Planning Aids
o Budgeting

Original Budget

Supplement

Return

Document

Availability Control
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Controlling
o Actual Postings

Manual Reposting of Costs

Manual Reposting of Revenues

Repost Line Items
o Period-End Closing

Settlement
o Year-End Closing

Budget Carry forward

Commitment Carry forward
o Information System

Reports for Internal Orders
o Environment

Period Lock
3. Product Cost Controlling
o Product Cost Planning

Material Costing

Information System
o Cost Object Controlling

Product Cost by Period

Product Cost Collector

Period-End Closing

Information System

Environment
4. Profitability Analysis
o Master Data
o Actual Postings
o Information System
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Controlling
o Environment
5. Profit Center Accounting
o Master Data
o Actual Postings
o Information System
o Environment
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Controlling
Cost Center Accounting
Cost Center Accounting
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Controlling
Cost Center Accounting
Introduction
Cost Center Accounting is creating and managing the master data, cost planning, actual
postings, information systems and environment. Using cost center accounting:

Manage information for cost centers, cost centers group, cost elements, cost
elements group, activity types, activity types group, statistical key figures and
statistical key figures group.

Cost center planning or budget by cost elements.

Reposting of actual cost elements,
Revenues and line items.

Standard reports for actual or plan cost and variance analysis.
The Cost Center Accounting is divided in to following sub components:

Master data

Cost Center Planning

Actual Postings

Information System

Environment
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Controlling
Cost Center Accounting
Master Data
Master data is the data, which is created and used often as master records and this
information provides the basis for cost center accounting.
Cost Element
The costs in Controlling (CO) are stored under specific cost elements. Cost elements
are of two types 1) Primary cost elements 2) Secondary cost elements. All
primary cost elements have their corresponding number in the General
Ledger (GL) of Financial Accounting (FI) while secondary cost elements
exist exclusively in CO. The types of the cost elements are explained in
detail below:
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Cost Center Accounting
PRIMARY COST ELEMENTS
Cost Element Category1:
These cost elements have their corresponding GL accounts in FI. It means each time
there is a Journal Voucher (JV) for the GL account corresponding to the
cost element the amounts enters CO. At the time of FI entry the reference
of the cost center / internal order / maintenance order etc. need to be given.
With this the cost object gets a debit under the cost element for the amount
entered in FI entry.
Cost Element Category 11:
The cost elements of this type are revenue GL accounts. For example, the revenues
booked at the time of billing are booked in CO under cost element of this
type.
Cost Element Category 12:
The sales deduction GL accounts have cost element of type 12.
Transaction Path: Accounting  Controlling  Cost Center Accounting Master Data
 Cost Element  Individual Processing Create Primary
Transaction Code: KA01
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Controlling
Cost Center Accounting
Screen Shot for Create Primary Cost Element: Initial Screen
After entered the cost element, valid from and valid to date click on enter
button
to get the detailed screen of cost element.
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Controlling
Cost Center Accounting
Screen Shot for Create Primary Cost Element
In the above screen, name of the cost element, description and cost element category
to be entered and click on save
button to save the master data.
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Controlling
Cost Center Accounting
SECONDARY COST ELMENTS
Cost Element Category 21:
This is the settlement cost element. Suppose an internal order is to be settled to the
cost center and all the cost elements of the internal order need to be
clubbed in the receiver cost center under cost element. The settlement
profile of the sender cost object need to have the cost element of this type
for settlement. At the time of settlement, the sender cost object gets credit
and the receiver gets debit under this cost element.
Cost Element Category 41:
This is an internal activity allocation type of the cost element. This cost element is
attached in the activity type master data. Whenever production planning
(PP) confirms the activity, the product cost collector gets debited and the
cost center where the product cost collector is executed gets credited under
this cost element.
Cost Element Category 42:
The assessment type of the cost element is used during the assessment cycle
execution. The receiver cost object gets debited and sender cost object
gets credited under this cost element. The individual cost elements of the
sender loses their identity in the assessment.
Cost Element Category 43:
This is overhead type of the cost element. This cost element is maintained in the credit
key of the costing sheet. When the costing sheet is executed on the product
cost collector the debit for the product cost collector and credit for the cost
center maintained in the credit key takes place under this cost element.
Transaction Path: Accounting  Controlling  Cost Center Accounting Master Data
 Cost Element  Individual Processing Create Secondary
Transaction Code: KA06
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Controlling
Cost Center Accounting
Screen Shot for Create Secondary Cost Element: Initial Screen
After entered the cost element, valid from and valid to date click on enter
button
to get the detailed screen of cost element.
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Controlling
Cost Center Accounting
Screen Shot for Create Secondary Cost Element: Basic Screen
In the above screen, name of the cost element, description and cost element category
to be entered and click on save
button to save the master data.
Using the same path, already created cost elements could be displayed and changed.
Further, the changes made could be displayed using the same path.
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Cost Center Accounting
Screen Shot for Change, Display and Delete Secondary Cost Element
The cost element can be deleted from the tables provided not posting has been made
therein.
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Cost Center Accounting
Cost Elements Group
Cost elements can be grouped under various cost elements groups depending upon the
reporting, planning and other requirements. Cost element group CIDS is used as
comprehensive cost element group for FFP. The company should make it sure that each
newly created cost element is assigned to any one of the sub nodes of this group. At
periodical intervals the completeness check should be carried out to verify that all the
cost elements are assigned to the group. The path for completeness check is:
Extras  Check and Help Functions  Check Completeness
Transaction Path: Accounting  Controlling  Cost Center Accounting Master Data
 Cost Element Group Create
Transaction Code: KAH1
Screen Shot for Create Cost element group: Initial Screen
After entered the cost element group, click on enter
button to get the detailed
screen of cost element group.
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Controlling
Cost Center Accounting
Screen Shot for Create Cost element group: Structure
The above screen is used for creating cost element groups in different levels and
assigning cost elements.
In the above screen, enter the cost element group and click on save
button to save
cost element group.
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Controlling
Cost Center Accounting
Standard Hierarchy
All the cost centers of the controlling area are arranged in the form of standard
hierarchy, which is made of multiple nodes. The cost centers can be assigned to the last
nodes of the hierarchy. The nodes are automatically created as the cost center groups.
The hierarchy is designing by creating nodes at same, lower levels to the existing
nodes. A lower level node and cost center can’t be assigned to a node.
Transaction Path: Accounting  Controlling  Cost Center Accounting Master Data
 Standard Hierarchy  Display
Transaction Code: OKEN
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Cost Center Accounting
Screen Shot for Display Standard Hierarchy (Cost Center Group): Structure
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Cost Center Accounting
Cost Center
The cost center is an organizational unit in a controlling area representing a clearly
delimited location where costs occur. The organizational division can be made on the
basis of functional, settlement-technical, activity-technical, spatial, and/or responsibilityrelated standpoints. Cost centers are used for differentiated assignment of overhead
costs to sales activities (cost calculation functions) and in order to carry out
differentiated controlling of costs occurring in an organization (cost controlling function).
All the cost centers of the controlling area are arranged in a sequence called standard
hierarchy. Each cost centers master data must contain the name of the node of the
hierarchy to which cost center is assigned.
Transaction Path: Accounting  Controlling  Cost Center Accounting Master Data
 Cost Center  Individual Processing Create
Transaction Code: KS01
Screen Shot for Create Cost Center: Initial Screen
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Controlling
Cost Center Accounting
Screen Shot for Create Cost Center: Basic Screen
After entered the required data, click on tab Control for the control data as below:
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Controlling
Cost Center Accounting
Screen Shot for Create Cost Center: Indicators
After entered the required data, click on tab Address for the enter the address of the
cost center.
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Cost Center Accounting
Screen Shot for Create Cost Center: Address
After entered the required data, click on tab Communication for communication to the
cost center.
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Cost Center Accounting
Screen Shot for Create Cost Center: Communication
After enter the required data, click on save
button to save cost center master data.
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Controlling
Cost Center Accounting
Cost Center Group
All the nodes of the standard hierarchy are automatically created as the cost center
group. Any additional cost center groups can be created, changed, displayed using this
transaction. A cost center can be assigned to multiple cost center groups for different
purposes. However, a cost center can be assigned to only one node of the standard
hierarchy.
Transaction Path: Accounting  Controlling  Cost Center Accounting Master Data
 Cost Center Group Create
Transaction Code: KSH1
Screen Shot for Create Cost Center Group: Initial Screen
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Controlling
Cost Center Accounting
Screen Shot for Create Cost Center Group: Structure
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Cost Center Accounting
Activity Type
The activity type divides the specific activities provided by a cost center along cost
allocation lines. Valuation of activities is made with an allocation price calculated based
on the managerial strategy chosen. A cost center can be assigned one, multiple, or no
activity types.
Here the integration with the Production Planning (PP) module and Controlling (CO)
module starts. The activity types are confirmed by PP for the product cost collector. The
activity is confirmed in the units mentioned in the activity type master record. For
example packed pizza have Case as the unit of measurement of the activity type. For a
given day the production of pizza is 1000 cases. This quantity gets multiplied with the
rate maintained in the cost center accounting for the activity type. The product cost
collector gets debit and the pizza cost center gets credit under the cost element
assigned to the activity type.
Transaction Path: Accounting  Controlling  Cost Center Accounting Master Data
 Activity Type Individual Processing Create
Transaction Code: KL01
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Controlling
Cost Center Accounting
Screen Shot for Create Activity Type: Initial Screen
After entered the Activity Type, Valid From and Valid To, click on enter
button to
get the detailed screen of Activity Type as below:
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Controlling
Cost Center Accounting
Screen Shot for Create Activity Type
After enter the required data, click on save
button to save Activity Type master
data.
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Cost Center Accounting
Activity Type Group
Activity Types can be grouped under various Activity Types groups depending upon the
reporting, planning and other requirements.
Transaction Path: Accounting  Controlling  Cost Center Accounting Master Data
 Activity Type Group Create
Transaction Code: KLH1
Screen Shot for Create Activity Type Group: Initial Screen
After entered the Activity Type Group, click on enter
button to get the detailed
screen of Activity Type Group as below:
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Controlling
Cost Center Accounting
Screen Shot for Create Activity Type Group
After enter the required data, click on save
button to save Activity Type master
data.
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Controlling
Cost Center Accounting
Statistical Key Figure
The statistical key figures (SKF) are used as the basis for internal allocations in the
assessment cycles. Some of the SKF used for allocation purposes are labor hours and
machine hours etc. of each cost centers. For example, the cost of the town cost centers
are allocated among production cost centers on the basis of the number of employees
in the receiver cost centers.
Transaction Path: Accounting  Controlling  Cost Center Accounting Master Data
 Statistical Key Figure Individual Processing Create
Transaction Code: KK01
Screen Shot for Create Statistical Key Figure: Initial Screen
After entered the Statistical Key Figure, click on enter
button to get the detailed
screen as below:
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Cost Center Accounting
Screen Shot for Create Statistical Key Figure: Master Data
After enter the required data, click on save
button to save the master data.
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Cost Center Accounting
Statistical Key Figure Group
Similar to other master records, the statistical key figures can also be grouped under
groups.
Transaction Path: Accounting  Controlling  Cost Center Accounting Master Data
 Statistical Key Figure Group Create
Transaction Code: KBH1
Screen Shot for Create Statistical Key Figure Group: Initial Screen
After entered the Statistical Key Figure, click on enter
button to get the detailed
screen as below:
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Controlling
Cost Center Accounting
Screen Shot for Create Statistical Key Figure Group
After enter the required data, click on save
button to save the master data.
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Cost Center Accounting
Planning
Groups:
Planning can be carried out either at the individual or group levels for all the master data
(Cost Element, Cost Center, Activity Types, Statistical Key Figures).
Benefits of the Groups:
The usage of the groups is a time saving device because the relationship among
different master data can be established on the same screen. It is not necessary to
complete the initial screen for each constituent of the group. For example: labor cost is
to be planned for the all the cost centers. In the initial screen the name of the cost
center group and the cost elements need to be mentioned. The labor cost can be
planned for all the cost centers using the arrow on the screen.
Types of the planning:
Each planning screen has the option of 1) Free Planning 2) Form Based planning. For
example, we have assigned four cost elements to a group. We are in the process to
plan cost elements for cost centers. In the former case, the planning screen for a cost
center will be empty and we have to manually input the requisite cost elements numbers
and their values for planning. While in the second case all the four cost elements
numbers will be automatically displayed in the planning screen of the cost center and
we need to simply key in the amounts.
Distribution Key:
Normally all the planning is done on a yearly basis. Distribution keys are used to break
down the yearly figures into monthly ones. Seven types of the distribution keys have
been defined by the system. If none of the distribution keys meets our requirements,
then user defined distribution keys can be created through IMG settings.
Distribution key number 2 divides the planned values to all the months on equal basis.
This key is used in FFP.
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Controlling
Cost Center Accounting
Cost and Activity Inputs
This feature is used to plan the cost elements for he cost centers. There are two types
of planning:
1)
Activity dependent planning.
2)
Activity independent planning.
In the former type, the planned cost element are specific to the activity types in the cost
center while in the second case the planned cost elements are independent of activity
types i.e. they are not planned with respect to a specific activity type. In the basic
screen the cost centers, activity types and cost elements are filled in for the first type of
planning while the activity type box is kept empty in the second type of the planning.
Transaction Path: Accounting  Controlling  Cost Center Accounting Planning 
Cost and Activity Inputs Change
Transaction Code: KP06
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Cost Center Accounting
Screen Shot for Change Cost Element Planning: Initial Screen
After entered the required data, click on overview screen
button to get the detailed
screen as below:
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Cost Center Accounting
Screen Shot for Change Cost Element Planning: Overview Screen
In case, the annual figures to be changed monthly, then put cursor on the relevant cost
element and click on period screen (F6).
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Cost Center Accounting
Screen Shot for Change Cost Element Planning: Period Screen
After enter the required data, click on save
button to save the data.
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Cost Center Accounting
Activity Output/Prices
This feature is used to plan the quantum of activity types in all the cost centers. The rate
of the activity types is also maintained in these screens. Dividing the planned amount by
the planned activity type gives the rates.
Transaction Path: Accounting  Controlling  Cost Center Accounting Planning 
Activity Output/Prices Change
Transaction Code: KP26
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Cost Center Accounting
Screen Shot for Change Activity Type/Price Planning: Initial Screen
After entered the required data, click on overview screen
button to get the detailed
screen as below:
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Cost Center Accounting
Screen Shot for Change Activity Type/Price Planning: Overview Screen
In case, the annual prices to be changed monthly, then put cursor on the activity type
and click on period screen (F6).
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Controlling
Cost Center Accounting
Screen Shot for Change Activity Type/Price Planning: Period Screen
After enter the required data, click on save
button to save the data.
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Cost Center Accounting
Statistical Key Figures
This feature is used to plan the statistical key figures for each cost centers. The group of
cost centers and statistical key figures can be used for this exercise.
Transaction Path: Accounting  Controlling  Cost Center Accounting Planning 
Statistical Key Figures Change
Transaction Code: KP46
Screen Shot for Change Statistical Key Figure Planning: Initial Screen
After entered the required data, click on overview screen
button to get the detailed
screen as below:
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Controlling
Cost Center Accounting
Screen Shot for Change Statistical Key Figure Planning
In case, the annual prices to be changed monthly, then put cursor on the statistical key
figure and click on period screen (F6).
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Controlling
Cost Center Accounting
Screen Shot for Change Statistical Key Figure Planning: Period Screen
After enter the required data, click on save
button to save the data.
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Controlling
Cost Center Accounting
Cost Center Budgets
This feature is used to plan the overall costs for each of the cost centers on a yearly
basis. The plan for the previous year is automatically copied in this screen, next to the
current year’s budget. The monthly planning is calculated automatically by the system
based on the distribution key used in the annual value screen.
Transaction Path: Accounting  Controlling  Cost Center Accounting Planning 
Cost Center Budgets Change
Transaction Code: KPZ2
Screen Shot for Change Budget Planning: Initial Screen
After entered the required data, click on overview screen
screen as below:
button to get the detailed
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Cost Center Accounting
Screen Shot for Change Budget Planning: Period Overview
After enter the required data, click on save
button to save the data.
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Cost Center Accounting
Planning Aids
Copy Plan to Plan
This feature is used to copy the plan costs for all the cost centers by cost element to
another period. This feature has got the processing options. While copying the plan
figures from one period to another, there is a facility to overwrite the figures, which are
already there in the copying period. Then user has to click on Reset and overwrite
button.
Transaction Path: Accounting  Controlling  Cost Center Accounting Planning 
Planning Aids Copy  Copy Plan to Plan
Transaction Code: KP97
Screen Shot for Copy Planning: Initial Screen
After enter the required data, click on execute
button for processing.
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Controlling
Cost Center Accounting
Screen Shot for Copy Planning: Detail List
After getting the above screen, click on back
button to leave the screen.
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Cost Center Accounting
Copy Actual to Plan
This feature is used to copy the actual costs for all the cost centers by cost element to
another period.
This feature has got the processing options. While copying actual
figures from one period to another, there is a facility to overwrite the figures, which are
already there in the copying period. Then user has to click on Reset and overwrite
button.
Transaction Path: Accounting  Controlling  Cost Center Accounting Planning 
Planning Aids Copy  Copy Actual to Plan
Transaction Code: KP98
Screen Shot for Copy Actual to Plan: Initial Screen
After enter the required data, click on execute
button for processing.
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Cost Center Accounting
Screen Shot for Copy Actual to Plan: Detail List
After getting the above screen, click on back
button to leave the screen.
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Cost Center Accounting
Allocations:
Plan Assessment Cycle
Assessment cycle is used for transferring cost from one cost center (called sender cost
centers) to the other cost centers (called receiver cost centers). The other receivers in
the cycle could be internal orders, cost objects etc. Various aspects of a cycle are
mentioned hereunder:
Creation of Assessment Cycle
Name: Give the name and the effective date to the cycle and press enter.
Text: Enter the text and press attach segment.
Name: Give the name to the segment and text.
Sender Values:
a)
Rules: There are three options:
(i)
Posted Amounts: The basis for the transfer of values from one cost center to the
other cost centers is the posted values in the sender cost centers.
(ii)
Fixed Amount: The sender transfers the values at the predefined rates.
(iii)
Fixed Rates: The sender transfers the values to the receivers at predefined
percentages of the base figures.
b)
Percentages: The % of the value determined according to the above rule (Rule a)
to be transferred to the receivers is mentioned here.
c)
Actual/ Plan Buttons: Selection of this button is based on the data for which the
cycle is to be run. The cycle used for the distribution of the planned cost should
have “planned” button while that for actual cost should have “actual” button on.
d)
Sender Cost Center: The name of the sender cost center or group is to be
mentioned.
e)
Cost Element: The cost elements or group to take part in the distribution,
pertaining to the sender cost center or group thereof be mentioned here.
f)
Receiver Order/ Cost Center/ Cost Object: The name of the receiver cost center/
order/ cost object or group thereof is to be mentioned.
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Cost Center Accounting
g)
Tracing Factor Field Group: The basis on which the values to be distributed
among the receivers to be mentioned here. SAP has defined 10 tracing factors.
Any one of the suitable bases may be used as tracing factor.
h)
Selection Criteria: Tracing factor field group chosen above could have more than
one value. The factor, which is to take part in the execution of the operation, is
called selection criteria. For example, statistical key figure is the tracing factor
and the number of labor hours (one of the statistical key figure) in each cost
center is the selection criteria.
i)
More than one segment: If sender’s values are to be transferred to the receivers
on more than one basis, multiple segments are used. But in that case, the total
amount, which is to be transferred, should not exceed 100%. For example, 50%
of the sender cost is distributing on the basis of fixed % and in another segment
remaining 50% can be distributed on the basis of variable portions by using
Tracing factor SKF.
Further, more than one segment can be used in the cycle for the distribution of
various costs with the combination.
j)
Receivers Weighing: Suppose we wish to distribute the costs of the sender cost
center to two receiver cost center on the basis of number of employees as the
tracing factor. However we wish to charge first cost center at double the rate than
the second cost center. In such a case we give receiver weighing of 2 and 1 to
first and second cost centers respectively.
k)
Blocked: If the blocked button is switched on than that particular segment can’t
be used for allocation purposes.
l)
Run: Once the cycle is complete in all respects it could be run periodically.
Page 60 of 269
Controlling
Cost Center Accounting
Path for creation of Plan Assessment Cycle:
Transaction Path: Accounting  Controlling  Cost Center Accounting Planning 
Allocations Assessment Extras  Cycle  Create
Transaction Code: KSU7
Screen Shot for Create Plan Assessment Cycle: Initial Screen
After enter the name of the cycle and start date, click on enter
button to get the
header data.
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Controlling
Cost Center Accounting
Screen Shot for Create Plan Assessment Cycle: Header Data
After enter the required data, click on Attach Segment for attaching the segments.
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Controlling
Cost Center Accounting
Screen Shot for Create Plan Assessment Cycle: Segment
After entering the relevant fields, then click on tab Senders/Receivers for enter the data
for sender or receiver cost centers and cost element/group.
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Controlling
Cost Center Accounting
Screen Shot for Create Plan Assessment Cycle: Segment (Senders/Receivers)
After the above screen, then click on tab Receiver Tracing Factor for enter the %
against receiver cost centers.
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Controlling
Cost Center Accounting
Screen Shot for Create Plan Assessment Cycle: Segment (Receiver Tracing Factor)
If the sender rule is on the basis of variable portions, then the above screen will be
looks as below:
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Controlling
Cost Center Accounting
Screen Shot for Create Plan Assessment Cycle: Segment (Receiver Tracing Factor)
After enter the required data, click on save
After save the changes made, click on back
button to save the data.
button to leave the screen.
Page 66 of 269
Controlling
Cost Center Accounting
Actual Postings
Manual Reposting of Costs
This feature is used to transfer costs from one cost center to other. Suppose, by mistake
an expense has been debited to a wrong cost center. Using this method, the costs can
be transferred to the correct cost center. This results in credit for the wrong cost center
and debit for the correct cost center.
Transaction Path: Accounting  Controlling  Cost Center Accounting Actual
Postings  Manual Reposting of Costs  Enter
Transaction Code: KB11N
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Controlling
Cost Center Accounting
Screen Shot for Manual Reposting of Primary Costs
After enter the required data, click on save
button to save the data.
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Controlling
Cost Center Accounting
Reversal of Reposting of Primary Costs:
This feature is used to reverse the entry, which has already posted as above.
Transaction Path: Accounting  Controlling  Cost Center Accounting Actual
Postings  Manual Reposting of Costs  Reverse
Transaction Code: KB14N
Screen Shot for Reverse Manual Reposting of Primary Costs
Enter the details of Document Date, Posting Date, Reverse Document and Document
Text and press enter to get the details. After entering the required details, click on save
button to save the document.
Page 69 of 269
Controlling
Cost Center Accounting
Manual Reposting of Revenues
This feature is used to transfer revenues from one cost center to other. Suppose, by
mistake any revenue has been credited to a wrong cost center. Using this method, the
costs can be transferred to the correct cost center. This results in debit for the wrong
cost center and credit for the correct cost center.
Transaction Path: Accounting  Controlling  Cost Center Accounting Actual
Postings  Manual Reposting of Revenues  Enter
Transaction Code: KB41N
Screen Shot for Manual Reposting of Revenues
After enter the required data, click on save
button to save the data.
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Controlling
Cost Center Accounting
Reversal of Reposting of Revenues:
This feature is used to reverse the entry, which has already posted as above.
Transaction Path: Accounting  Controlling  Cost Center Accounting Actual
Postings  Manual Reposting of Revenues  Reverse
Transaction Code: KB44N
Screen Shot for Reverse Manual Reposting of Revenues
Enter the details of Document Date, Posting Date, Reverse Document and Document
Text and press enter to get the details. After entering the required details, click on save
button to save the document.
Page 71 of 269
Controlling
Cost Center Accounting
Repost Line Items
At the time of posting the transactions in General Ledger (GL) of Financial Accounting
(FI), each line item must be assigned a cost center. If cost center assignment of one or
more than one line items are to be changed then this feature can be used.
Transaction Path: Accounting  Controlling  Cost Center Accounting Actual
Postings  Repost Line Items  Enter
Transaction Code: KB61
Screen Shot for Enter Line Item Reposting: Initial Screen
After this screen, click on execute
button for the detailed report.
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Controlling
Cost Center Accounting
Screen Shot for Enter Reposting of Line Items: List
After this screen, double click on the line item, which would like to change. Then the
following screen will appear. Then change the new account assignment (Amount, Text
and Cost Center).
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Controlling
Cost Center Accounting
Screen Shot for Enter Reposting of Line Items: Individual Processing
After enter the required data, click on save
button to save the data.
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Controlling
Cost Center Accounting
Reversal of Reposting of Line Items:
This feature is used for the reversal of reposting revenues, which explained above.
Transaction Path: Accounting  Controlling  Cost Center Accounting Actual
Postings  Repost Line Items  Reverse
Transaction Code: KB64
Screen Shot for Enter Reverse Reposting of Line Items: List
After getting the above screen, click on save
button to save the document.
Page 75 of 269
Controlling
Cost Center Accounting
Statistical Key Figures
Enter Statistical Key Figures:
This feature is used to enter the actual statistical key figures on a monthly basis.
Transaction Path: Accounting  Controlling  Cost Center Accounting Actual
Postings  Statistical Key Figures  Enter
Transaction Code: KB31N
Screen Shot for Enter Statistical Key Figures
After getting the above screen, click on save
button to save the document.
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Controlling
Cost Center Accounting
Reverse Statistical Key Figures:
This feature is used to enter the actual statistical key figures on a monthly basis.
Transaction Path: Accounting  Controlling  Cost Center Accounting Actual
Postings  Statistical Key Figures  Reverse
Transaction Code: KB34N
Screen Shot for Reverse Statistical Key Figures
After getting the above screen, click on save
button to save the document.
Page 77 of 269
Controlling
Cost Center Accounting
Period-End Closing
Allocations:
Actual Assessment Cycle
Assessment cycle is used for transferring cost from one cost center (called sender cost
centers) to the other cost centers (called receiver cost centers). The other receivers in
the cycle could be internal orders, cost objects etc. Various aspects of a cycle are
mentioned hereunder:
Creation of Assessment Cycle
Name: Give the name and the effective date to the cycle and press enter.
Text: Enter the text and press attach segment.
Name: Give the name to the segment and text.
Sender Values:
a)
Rules: There are three options:
(i)
Posted Amounts: The basis for the transfer of values from one cost center to the
other cost centers is the posted values in the sender cost centers.
(ii)
Fixed Amount: The sender transfers the values at the predefined rates.
(iii)
Fixed Rates: The sender transfers the values to the receivers at predefined
percentages of the base figures.
b)
Percentages: The % of the value determined according to the above rule (Rule a)
to be transferred to the receivers is mentioned here.
c)
Actual/ Plan Buttons: Selection of this button is based on the data for which the
cycle is to be run. The cycle used for the distribution of the planned cost should
have “planned” button while that for actual cost should have “actual” button on.
d)
Sender Cost Center: The name of the sender cost center or group is to be
mentioned.
e)
Cost Element: The cost elements or group to take part in the distribution,
pertaining to the sender cost center or group thereof be mentioned here.
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Controlling
Cost Center Accounting
f)
Receiver Order/ Cost Center/ Cost Object: The name of the receiver cost center/
order/ cost object or group thereof is to be mentioned.
g)
Tracing Factor Field Group: The basis on which the values to be distributed
among the receivers to be mentioned here. SAP has defined 10 tracing factors.
Any one of the suitable bases may be used as tracing factor.
h)
Selection Criteria: Tracing factor field group chosen above could have more than
one value. The factor, which is to take part in the execution of the operation, is
called selection criteria. For example, statistical key figure is the tracing factor
and the number of labor hours (one of the statistical key figure) in each cost
center is the selection criteria.
i)
More than one segment: If sender’s values are to be transferred to the receivers
on more than one basis, multiple segments are used. But in that case, the total
amount, which is to be transferred, should not exceed 100%. For example, 50%
of the sender cost is distributing on the basis of fixed % and in another segment
remaining 50% can be distributed on the basis of variable portions by using
Tracing factor SKF.
Further, more than one segment can be used in the cycle for the distribution of
various costs with the combination.
j)
Receivers Weighing: Suppose we wish to distribute the costs of the sender cost
center to two receiver cost center on the basis of number of employees as the
tracing factor. However we wish to charge first cost center at double the rate than
the second cost center. In such a case we give receiver weighing of 2 and 1 to
first and second cost centers respectively.
k)
Blocked: If the blocked button is switched on than that particular segment can’t
be used for allocation purposes.
l)
Run: Once the cycle is complete in all respects it could be run periodically.
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Controlling
Cost Center Accounting
Path for creation of Actual Assessment Cycle:
Transaction Path: Accounting  Controlling  Cost Center Accounting Period-End
Closing Single Functions  Allocations Assessment Extras  Cycle  Create
Transaction Code: KSU1
Screen Shot for Create Actual Assessment Cycle: Initial Screen
After enter the name of the cycle and start date, click on enter
button to get the
header data.
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Controlling
Cost Center Accounting
Screen Shot for Create Actual Assessment Cycle: Header Data
After this screen, clink on Attach Segment for attaching the segments.
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Controlling
Cost Center Accounting
Screen Shot for Create Actual Assessment Cycle: Segment
After entering the relevant fields, then click on tab Senders/Receivers for enter the data
for sender or receiver cost centers and cost element/group.
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Controlling
Cost Center Accounting
Screen Shot for Create Actual Assessment Cycle: Segment (Senders/Receivers)
After the above screen, then click on tab Receiver Tracing Factor for enter the %
against receiver cost centers.
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Controlling
Cost Center Accounting
Screen Shot for Create Actual Assessment Cycle: Segment (Receiver Tracing Factor)
If the sender rule is on the basis of variable portions, then the above screen will be
looks as below screen:
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Controlling
Cost Center Accounting
Screen Shot for Create Actual Assessment Cycle: Segment (Receiver Tracing Factor)
After getting the above screen, click on save
button to save the document.
After save the changes made, click on back
button to leave the screen.
Page 85 of 269
Controlling
Cost Center Accounting
Information System
Various reports of the cost centers are available on the screens.
Transaction Path: Accounting  Controlling  Cost Center Accounting Information
System  Reports for Cost Center Accounting Choose Report
Transaction Code: S_ALR_87013611 TO S_ALR_87013648
Screen shot for Reports for Cost Center Accounting
Page 86 of 269
Controlling
Cost Center Accounting
Environment
Period Lock
This feature is used to lock the transactions for a period. With this facility usage of the
transaction is prevented for the locked periods. The locking facility is available for both
the plan and actual transactions.
Transaction Path: Accounting  Controlling  Cost Center Accounting Environment
Period Lock Change
Transaction Code: OKP1
Screen Shot for Change Period Lock: Initial Screen
After enter the Controlling Area, Fiscal Year and Version, click on Actual to get the
detailed screen as below:
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Controlling
Cost Center Accounting
Actual Period Lock:
Screen Shot for Change Actual Period Lock: Edit
Click the cursor on the period, which is to be locked and then click on Lock Period and
click on save
button to save the changes made.
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Controlling
Cost Center Accounting
After getting the initial screen and the required data, click on Plan to get the detailed
screen as below:
Plan Period Lock:
Screen Shot for Change Plan Period Lock: Edit
Click the cursor on the period, which is to be locked and then click on Lock Period and
click on save
button to save the changes made.
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Controlling
Cost Center Accounting
Actual Period Unlock:
Screen Shot for Change Actual Period Lock: Edit
Click the cursor on the period, which is to be unlocked and then click on Unlock Period
and click on save
button to save the changes made.
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Controlling
Cost Center Accounting
After getting the initial screen and the required data, click on Plan to get the detailed
screen as below:
Plan Period Unlock:
Screen Shot for Change Plan Period Unlock: Edit
Click the cursor on the period, which is to be unlocked and then click on Unlock Period
and click on save
button to save the changes made.
Page 91 of 269
Controlling
Internal Orders
Internal Orders
Page 92 of 269
Controlling
Internal Orders
Introduction
Internal Order Accounting is creating and managing the Master Data, Cost Planning or
Budgeting, Actual Postings, Information Systems and Environment. Using Internal
Orders you can

Manage information for revenue and capital internal orders.

Internal Order Planning or budget by cost elements.

Standard reports for actual or plan cost and variance analysis.
The Internal orders divided in to following sub components:

Master data

Planning

Budgeting

Actual Postings

Information System

Environment
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Controlling
Internal Orders
Master Data
Master data is the data, which is created and used often as master records and this
information provides the basis for internal order accounting.
Create Internal Order
This feature is used to create internal order master data and enter the settlement rule.
Internal orders of two types: Revenue and Capital internal orders. After entering the
required fields in the master, save the order. System will generate an internal order
number.
Transaction Path: Accounting  Controlling  Internal Orders  Master Data
Special Functions Order Create
Transaction Code: KO01
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Controlling
Internal Orders
Screen Shot for Create Internal Order: Initial Screen
After enter the Order Type IN01, click on enter
button to get the detailed screen as
below:
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Controlling
Internal Orders
Screen Shot for Create Internal Order: Master Data
After entered the required data, click on tab Control data to release the internal order.
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Controlling
Internal Orders
Screen Shot for Create Internal Order Master data: Control data
After getting this screen, click on System status “Release” to release the order.
After release the order, click on General data to enter the details as below:
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Controlling
Internal Orders
Screen Shot for Create Internal Order Master Data: General data
After entered the general data, click on Settlement Rule to enter the details as below:
Page 98 of 269
Controlling
Internal Orders
Screen Shot for Create Internal Order Master Data: Maintain Settlement Rule
After entering the above data, click on save
button. System will generate one
internal order number.
After creating the order, order can be displayed by using the following path.
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Controlling
Internal Orders
Transaction Path: Accounting  Controlling  Internal Orders  Master Data
Special Functions Order Display
Transaction Code: KO03
Screen Shot for Display Internal Order: Master data
The following path is used for change the master data of internal order.
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Controlling
Internal Orders
Transaction Path: Accounting  Controlling  Internal Orders  Master Data
Special Functions Order Change
Transaction Code: KO02
Screen Shot for Change Internal Order: Master data
After making the necessary changes, click on save
button to save the changes.
After creating the internal orders, they can be grouped for reporting purpose.
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Controlling
Internal Orders
Internal Order Group
This feature is used to create internal order master data and enter the settlement rule.
Internal orders of two types: Revenue and Capital internal orders. After entering the
required fields in the master, save the order. System will generate an internal order
number.
Transaction Path: Accounting  Controlling  Internal Orders  Master Data
Order Group Create
Transaction Code: KOH1
Screen Shot for Create Order Group: Initial Screen
After entered the Order Group, which is to be created click on enter
button to get
the detailed screen as below:
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Controlling
Internal Orders
Screen Shot for Create Order Group: Structure
After entered the required details, click on save
button to save the changes.
Page 103 of 269
Controlling
Internal Orders
Planning
Overall Values
This feature is used for planning the annual costs for internal orders.
Transaction Path: Accounting  Controlling  Internal Orders  Planning  Overall
Values Change
Transaction Code: KO12
Screen Shot for Change Overall Planning: Initial Screen
After entered the Order number and Version, click on enter
button to get the
detailed screen as below:
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Controlling
Internal Orders
Screen Shot for Change Overall Plan Values: Annual overview
After entered the Plan amount by year, click on save
button to save the changes.
Page 105 of 269
Controlling
Internal Orders
Cost and Activity Inputs
This feature is used for planning the costs by cost elements for internal orders.
Transaction Path: Accounting  Controlling  Internal Orders  Planning  Cost
and Activity Inputs Change
Transaction Code: KPF6
Screen Shot for Planning Cost Elements Change: Initial screen
After entered the required data, click on Overview Screen (F5) to get the detailed
screen as below:
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Controlling
Internal Orders
Screen Shot for Planning Cost Elements: Overview screen
In case, the annual figures to be changed monthly, then put cursor on the relevant cost
element and click on period screen (F6).
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Controlling
Internal Orders
Screen Shot for Change Cost Element Planning Change: Period Screen
After enter the required data, click on save
button to save the data.
Page 108 of 269
Controlling
Internal Orders
Planning Aids
Copy Planning
This feature is used for copying the planning data of internal orders to another period.
Transaction Path: Accounting  Controlling  Internal Orders  Planning 
Planning Aids  Copy Planning
Transaction Code: KO14
Screen Shot for Copy Planning: Initial Screen
After entered the required data, click on execute
button for the detailed screen as
below:
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Controlling
Internal Orders
Screen Shot for Copy Planning: Detail List
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Controlling
Internal Orders
Copy Actual to Plan
This feature is used for copying the actual data of internal orders to another period as a
planning.
Transaction Path: Accounting  Controlling  Internal Orders  Planning 
Planning Aids  Copy Actual to Plan
Transaction Code: KO15
Screen Shot for Copy Actual to Plan: Initial screen
After entered the required data, click on execute
below:
button for the detailed screen as
Page 111 of 269
Controlling
Internal Orders
Screen Shot for Copy Actual to Plan: Detail List
Page 112 of 269
Controlling
Internal Orders
Budgeting
Original Budget
This feature is used for budget the annual costs for internal orders.
Transaction Path: Accounting  Controlling  Internal Orders  Budgeting 
Original Budget Change
Transaction Code: KO22
Screen Shot for Change Original Budget: Initial Screen
After entered the order number, click on enter
below:
button for the detailed screen as
Page 113 of 269
Controlling
Internal Orders
Screen Shot for Change Original Budget: Annual Overview
Enter the budget amount and click on save
button to save the data. After saving the
above screen, system will generate a controlling document number.
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Controlling
Internal Orders
Supplement
This feature is used for enter the additional budget amount for internal orders.
Transaction Path: Accounting  Controlling  Internal Orders  Budgeting 
Supplement Change
Transaction Code: KO24
Screen Shot for Change Supplement: Initial Screen
After entered the order number, click on enter
below:
button for the detailed screen as
Page 115 of 269
Controlling
Internal Orders
Screen Shot for Change Supplement: Annual Overview
After enter the details, click on save
button to save the data. After saving the above
screen, system will generate a controlling document number.
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Controlling
Internal Orders
Return
This feature is used for return / deduct the budget amount for internal orders.
Transaction Path: Accounting  Controlling  Internal Orders  Budgeting  Return
Change
Transaction Code: KO26
Screen Shot for Change Return: Initial Screen
After entered the order number, click on enter
below:
button for the detailed screen as
Page 117 of 269
Controlling
Internal Orders
Screen Shot for Change Return: Annual Overview
After enter the details, click on save button to save
the data. After saving the above
screen, system will generate a controlling document number.
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Controlling
Internal Orders
Document
This feature is used for enter the text for original budget / supplement / return for
internal orders.
Transaction Path: Accounting  Controlling  Internal Orders  Budgeting 
Document Change
Transaction Code: KO2A
Screen Shot for Change Document: Initial Screen
After entered the Document number, click on enter
as below:
button for the detailed screen
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Controlling
Internal Orders
Screen Shot for Change Document
After enter the Long Text and Text, click on save
button to save the data.
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Controlling
Internal Orders
Actual Postings
This feature is same as the Actual Postings of Cost Center Accounting. Please refer the
transactions of the following:
Transaction Path: Accounting  Controlling  Cost Center Accounting Actual
Postings
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Controlling
Internal Orders
Period-End Closing
Settlement
Settlement of Individual internal orders
This feature is used for settlement of individual internal orders as a part of Period-End
Closing activities.
Transaction Path: Accounting  Controlling Internal Orders  Period-End
Closing Single Functions  Settlement  Individual Processing
Transaction Code: KO88
Screen Shot for Actual Settlement: Order
After entered the required data, click on execute
button to get the below screen:
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Controlling
Internal Orders
Screen Shot for Actual Settlement: Order Detail List
After getting the above screen, select the order number and click on accounting
documents to view the different types of documents.
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Controlling
Internal Orders
Screen Shot for Actual Settlement: Documents in Accounting
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Controlling
Internal Orders
Reverse the Settlement of individual internal orders
This feature is used for reverse the settlement. After reversal of settlement, the
accounting entries will be generated and the order balance will come to the original
status.
Transaction Path: Accounting  Controlling Internal Orders  Period-End
Closing Single Functions  Settlement  Individual Processing
Transaction Code: KO88
Screen Shot for Actual Settlement: Reversal Order
After getting the screen, enter the required data and then go to menu “Settlement and
click on Reverse”.
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Controlling
Internal Orders
Screen Shot for Actual Reversal Order: Documents in Accounting
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Controlling
Internal Orders
Settlement of Collective internal orders
This feature is used for collectively settle the internal orders.
Transaction Path: Accounting  Controlling Internal Orders  Period-End
Closing Single Functions  Settlement  Collective Processing
Transaction Code: KO8G
Screen Shot for Actual Settlement: Orders
After entered the above details, click on execute
button to get the detailed screen as
below:
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Controlling
Internal Orders
Screen Shot for Actual Settlement: Orders Detail List
After getting the above screen, select any order and then click on accounting
documents to view the different types of documents as below:
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Controlling
Internal Orders
Screen Shot for Actual Settlement: Documents in Accounting
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Controlling
Internal Orders
Collectively Reversal of Settlement of collective internal orders
This feature is used for collectively reverse the settlement of internal orders. After
reversal the accounting entries will be generated and the order balance will come to the
original status.
Transaction Path: Accounting  Controlling Internal Orders  Period-End
Closing Single Functions  Settlement  Collective Processing
Transaction Code: KO8G
Screen Shot for Actual Settlement: Reversal Orders
After getting the above screen, enter the required data and then go to menu “Settlement
and click on Reverse”.
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Controlling
Internal Orders
Screen Shot for Actual Reversal Orders: Documents in Accounting
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Controlling
Internal Orders
Year-End Closing
Budget Carry-forward
This feature is used for carry-forward the budget amount, which is left in the previous
year. This transaction will be run once in a year.
Transaction Path: Accounting  Controlling Internal Orders  Year-End Closing 
Budget Carry-forward
Transaction Code: KOCO
Screen Shot for Budget Carry-forward for Orders
After entered the required data, click on execute
button to get the below screen:
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Controlling
Internal Orders
Screen Shot for Budget Carry-forward for Orders: Detail Screen
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Controlling
Internal Orders
Commitment Carry-forward
This feature is used for carry-forward the budget amount, which is left in the previous
year. This transaction will be run once in a year.
Transaction Path: Accounting  Controlling Internal Orders  Year-End Closing 
Commitment Carry-forward
Transaction Code: KOCF - Commitment Carry-forward
Screen Shot for Commitment Carry-forward for Orders
After entered the required data, click on execute
button to get the below screen:
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Controlling
Internal Orders
Screen Shot for Commitment Carry-forward for Orders
Page 135 of 269
Controlling
Internal Orders
Information System
Various reports of the cost centers are available on the screens.
Transaction Path: Accounting  Controlling  Internal Orders  Information System
 Reports for Internal Orders  Choose Report
Transaction Code: S_ALR_87012993 TO S_ALR_87013019
Screen shot for Reports for Internal Orders
Page 136 of 269
Controlling
Plant Maintenance Orders
Plant Maintenance Orders
Page 137 of 269
Controlling
Plant Maintenance Orders
Introduction
The Plant Maintenance (PM) module requires the creation of maintenance orders for
each and every maintenance task taken up by the company. The principles of booking
of material costs, external services, activity types and overheads remains the same as
product cost collectors. The maintenance orders created by the maintenance
department are charged with the issues of materials, activity confirmations, external
processing charges etc. At the end of the period the overheads are loaded on the orders
and finally the order is settled to single or multiple cost centers as per the settlement
rule which is maintained in the master data of maintenance order. The settlement
transaction passes on the costs of the order to the cost centers.
The role of Finance / Costing department about plant maintenance orders is as follows:

Charging of Overheads

Settlement of Orders

Information System
Page 138 of 269
Controlling
Plant Maintenance Orders
Master Data
Master data is the data, which is created and used often as master records and this
information provides the basis for maintenance orders.
Create Plant Maintenance Order
This feature is used to create maintenance order master data and enter the settlement
rule by the Plant Maintenance module.
Transaction Path: Logistics  Plant Maintenance  Maintenance Processing 
Order  Create (General)
Transaction Code: IW31
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Controlling
Plant Maintenance Orders
Screen Shot for Create Plant Maintenance Order
Settlement rule has to be maintained as follows:
Menu Goto Settlement Rule
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Screen Shot for Maintain Settlement Rule for PM Orders
After entering the above data, click on save
button and system will generate an
internal order number.
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Period-End Closing
Charging of Overheads
Individual Charging of Overheads to PM orders
This feature is used for charging overheads to the PM orders at the month end as a part
of Period-End Closing activities.
Transaction Path: Accounting Controlling Internal Orders  Period-End
Closing Single Functions  Overhead Rates  Individual Processing
Transaction Code: KG12
Screen Shot for Actual Overhead Calculation: PM Order
After entered the Order number, Period and Fiscal Year, click on execute button to
calculate the overhead as below:
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Plant Maintenance Orders
Screen Shot for Actual Settlement: Order Detail List
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Plant Maintenance Orders
Reverse the charging of overheads to PM Orders
This feature is used for reverse the charging of overheads. After reversal, the
accounting entries will be generated and the order will come to the original status.
Transaction Path: Accounting  Controlling Internal Orders  Period-End
Closing Single Functions  Overhead Rates  Individual Processing
Transaction Code: KG12
Screen Shot for Reversal of Actual Overhead Calculation
After getting the screen, entered the required data and then go to menu “Overhead
Calculation and click on Reverse”.
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Screen Shot for Actual Reversal of Charging Overheads to PM Orders
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Collectively Charging of Overheads to the PM Orders
This feature is used for charging of overheads collectively to the PM Orders.
Transaction Path: Accounting  Controlling Internal Orders  Period-End
Closing Single Functions  Overhead Rates  Collective Processing
Transaction Code: KG14
Screen Shot for Actual Overhead Calculation: Internal/maintenance orders
After entered the above details, click on execute button.
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Screen Shot for Actual Overhead Calculation: Internal/maintenance orders Debits
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Collectively Reversal of Charging Overheads to PM Orders
This feature is used for collectively reverse the charging of overheads to the PM orders.
Transaction Path: Accounting  Controlling Internal Orders  Period-End
Closing Single Functions  Overhead Rates  Actuals: Collective Processing
Transaction Code: KG14
Screen Shot for Reversal of Actual Overhead Calculation for PM Orders
After getting the screen, enter the required data and then go to menu “Overhead
Calculation and click on Reverse”.
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Plant Maintenance Orders
Screen Shot for Actual Reversal of Charging Overheads to the PM Orders
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Settlement
Individual Settlement of PM orders
This feature is used for individual settlement of PM orders at the month end as a part of
Period-End Closing activities.
Transaction Path: Accounting Controlling Internal Orders  Period-End
Closing Single Functions  Settlement  Individual Processing
Transaction Code: KO88
Screen Shot for Actual Settlement: Order
After entered the above details, click on execute
button to settle the order as shown
below:
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Plant Maintenance Orders
Screen Shot for Actual Settlement: Order Detail List and Documents in Accounting
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Plant Maintenance Orders
Reverse the Settlement of individual PM Orders
This feature is used for reverse the settlement of PM Order. After reversal, the
accounting entries will be generated and the order will come to the original status.
Transaction Path: Accounting  Controlling Internal Orders  Period-End
Closing Single Functions  Settlement  Individual Processing
Transaction Code: KG12
Screen Shot for Reversal of Actual Settlement
After getting the screen, entered the required data and then go to menu “Settlement and
click on Reverse”.
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Plant Maintenance Orders
Screen Shot for Actual Reversal of Settlement and Documents in Accounting
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Plant Maintenance Orders
Collective Settlement of PM Orders
This feature is used for collective settlement of PM Orders.
Transaction Path: Accounting  Controlling Internal Orders  Period-End
Closing Single Functions  Settlement  Collective Processing
Transaction Code: KO8G
Screen Shot for Actual Settlement: Orders
After entered the above details, click on execute
button to get the detailed screen as
below:
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Plant Maintenance Orders
Screen Shot for Actual Settlement: Orders Detail List
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Plant Maintenance Orders
Collectively Reverse of Settlement of PM Orders
This feature is used for collectively reverse the settlement of PM orders.
Transaction Path: Accounting  Controlling Internal Orders  Period-End
Closing Single Functions  Settlement  Collective Processing
Transaction Code: KO8G
Screen Shot for Reversal of Actual Collective Settlement of PM Orders
After getting the screen, enter the required data and then go to menu “Settlement and
click on Reverse”.
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Plant Maintenance Orders
Screen Shot for Actual Reversal of Collective Settlement of PM Orders: Orders Detail List
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Product Cost Controlling
Product Cost Controlling
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Product Cost Controlling
Introduction
In FFP, the Semi-finished and finished goods are valued at the standard price while all
the raw materials, packaging materials, consumable stores and commercial / traded
goods are valued at the moving average prices. The system calculates the standard
price of the material and updates the value in the accounting and costing views of the
material master. The standard cost of the product is calculated by system on the basis
of the Bill of Material (BOM), Routing and Costing sheet.
On marking the cost estimate the future standard price of the material master gets
updated with price. Once the standard cost estimate is released the marked price
(future price) becomes the current standard price. The inventories are always valued at
this price till the standard cost estimate is revised.
The release can be done once in a month. In the next month again the standard cost
estimate can be created for the material. This is marked and released again. The new
cost estimate becomes the current standard cost estimate and the last months-standard
price shifts in the column of past standard cost estimate of the material master. The
revision of the standard cost estimate should not be undertaken at frequent intervals.
Normally, the standard prices are created and updated at the beginning of the year.
Product cost estimate on the basis of Bill Of Material (BOM) and Routing is with quantity
structure.
Product cost estimate without Bill Of Material (BOM) and Routing is without quantity
structure.
Product cost estimate can be created for one material at one time.
Product cost estimate can be created for a range of materials at one time.
The screen/ path for single product and cumulative product cost estimate are different.
The documentation is divided in three sections:
Section
Contents
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Product Cost Controlling
1
Product cost estimate for one material
2
Product cost estimate for range of material
3
Other features of Product cost estimate
The scope of the Product Costing is as follows:
Product Cost Planning

Display Materials to be Costed

Costing Run

Cost Estimate with Quantity Structure

Cost Estimate Without Quantity Structure

Price Update

Information System
Cost Object Controlling
Product Cost by Period

Master Data

Period-End Closing

Information System
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Product Cost Planning
Display Materials to be Costed
This feature is used for find out the semi-finished and finished goods, which are to be
costed.
Transaction Path: Accounting  Controlling Product Cost Controlling  Product
Cost Planning  Material Costing  Display Materials to be Costed
Transaction Code: CKAPP01
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Product Cost Controlling
Screen Shot for Display Materials To Be Costed: Initial Screen
After entered the required data, click on execute
button to get the detailed screen as
below:
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Product Cost Controlling
Screen Shot for Display Materials To Be Costed: Detailed Screen
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Product Cost Controlling
Selection List for Costing Run
This feature is used for creating a selection list of materials, material type and plant for
the materials.
Transaction Path: Accounting  Controlling Product Cost Controlling  Product
Cost Planning  Material Costing  Costing Run Selection List Create
Transaction Code: CKMATSEL
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Product Cost Controlling
Screen Shot for Create Selection List for Costing Run: Initial Screen
After entered the required data, click on execute
button to get the detailed screen as
below:
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Product Cost Controlling
Screen Shot for Create Selection List for Costing Run: Detailed Screen
After getting the above screen, click on save
button to save the selection list.
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Product Cost Controlling
Edit Selection List for Costing Run
This feature is used for editing the selection list of materials, material type and plant for
the materials.
Transaction Path: Accounting  Controlling Product Cost Controlling  Product
Cost Planning  Material Costing  Costing Run Selection List Edit
Transaction Code: CKMATCON
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Product Cost Controlling
Screen Shot for Edit Selection List for Costing Run
After making the necessary change, click on save
button to save the selection list.
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Product Cost Controlling
Cost Estimate with Quantity Structure
This feature is used for calculate standard cost with quantity structure for individual
materials.
The cost estimate of the semi-finished, finished goods whose BOM and Routings etc.
are available in the system, are calculated using this feature. The system reads the
constituents of the cost from the following sources:
Give the details of costing variant, material, plant, costing version (1) and costing lot
size. Press enter. If no lot size is given, the system picks up the same from the costing
view of the material master.
The system proposes the dates of various parameters as per the date control ID
maintained in the costing type view of the IMG settings. The costing type is attached to
the costing variant. The dates proposed by the system can be changed manually, if
required.
The following dates are proposed:
Costing Date From: This is the date from which the cost estimate is valid
Costing Date To: The date up to, which the standard cost estimate is to be valid.
Quantity Structure Date: The date with which the bills of material and recipe are
selected.
Valuation Date: Dates for which the material values and activity prices are selected for
the calculation of standard cost estimate.
Once the data are validated by the system the standard cost estimate is generated by
system.
With this, the system reaches to the screen of standard cost estimate. This screen gives
the following information:
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Costing Data:
Costing variant used, Posting period, Cost Version, Lot Size, Messages and the status
of the costing calculation are displayed on the screen.
Valuation Data:
Valuation Variant, Currency, Costing Sheet used for the calculation of the standard cost
is displayed. If overhead group and key are also used, they are also displayed.
Cost Component View:
The system gives various components views as per IMG settings for the cost
component layout.
Details:
On the front screen, summary of various cost component views are displayed. The
details can see by putting the cursor on the view whose details to be seen and pressing
cost component on the lower left part of the screen.
Similarly the details of the itemization view for each of the cost component view can be
displayed.
The combination of Total Cost / fixed cost and Total Cost/ Variable cost can be view by
press the button on the lower right side of the screen.
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Transaction Path: Accounting  Controlling Product Cost Controlling  Product
Cost Planning  Material Costing  Cost Estimate with Quantity Structure  Create
Transaction Code: CK11N
Screen Shot for Create Material Cost Estimate with Quantity Structure
After entering the above details, press on enter
button to get the date control
screen as below:
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Product Cost Controlling
Screen Shot for Create Material Cost Estimate with Quantity Structure (Date Control)
In this screen, costing dates to be entered. So that standard cost will be valid for that
period.
After entering the above details, click on enter to calculate the standard cost.
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Product Cost Controlling
Screen Shot for Create Material Cost Estimate with Quantity Structure (Display the Cost)
After getting the above screen, click on the button “cost components” for cost breakup.
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Product Cost Controlling
Screen Shot for Create Material Cost Estimate with Quantity Structure (Cost Components)
After checking the cost components, click on save
button.
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Product Cost Controlling
Cost Estimate without Quantity Structure
This feature is used for calculate standard cost without quantity structure for individual
materials.
If the bill of material and routing are not maintained for a material, the standard cost
estimate is calculated without quantity structure. The routings are maintained for the
plants under which the production takes place, so the standard cost estimate is
calculated using with quantity structure method. This material is transferred to the other
plants using transfer-posting mechanism. The standard price for this material in the
transferee plant can’t be calculated with quantity structure method, as the routing is not
existed therein. The standard price at the transferee plan is calculated without quantity
structure.
For example honey is produced in FFPW plant and later on transferred to FFPC plant.
The cost in FFPW is calculated with quantity structure and FFPC without quantity
structure. The method to calculate standard price without quantity structure is as
follows:
Costing Variant: PPC1, Material: 40002306, Plant: FFPC, Costing Version: 1, Costing
date: from & to, enter, enter valuation date, Category: M, Resource: 40002306, Plant:
FFPW, Quantity: 1 and enter
The system copies the cost of the material in FFPW plant to FFPC plant. This price is to
be marked and released as per the method followed for Cost Estimate With Quantity
Structure.
The method of calculating without quantity structure is used for calculating standard
cost estimates of the materials lying with different sales locations (Plants FFPC, FFPE,
FFPN & FFPS).
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Transaction Path: Accounting  Controlling Product Cost Controlling  Product
Cost Planning  Material Costing  Cost Estimate Without Quantity Structure
Create
Transaction Code: KKPAN
Screen Shot for Create Material Cost Estimate Without Quantity Structure
After entering the material number, plant, costing variant and costing version, clink on
enter
button, then the following screen will appear:
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Product Cost Controlling
Screen Shot for Create Material Cost Estimate Without Quantity Structure (Date Control)
Enter the Costing Date From and Costing Date To and Valuation Date and click on enter
button.
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Product Cost Controlling
Screen Shot for Create Material Cost Estimate Without Quantity Structure: Detail Screen
After enter the Category, Resource, Plant and Quantity press the enter
button.
Then system will bring the cost from the material master. After entered the above
details, click on save
button. After saving the screen, the following screen will
appear:
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Product Cost Controlling
Screen Shot for Create Material Cost Estimate Without Quantity Structure: Detail Screen
After getting the above screen, click on save
button to save the cost estimate.
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Product Cost Controlling
Marking Allowance
This feature is used for marking the allowance for the materials which standard cost is
going to release.
Transaction Path: Accounting  Controlling Product Cost Controlling  Product
Cost Planning  Material Costing  Price Update
Transaction Code: CK24
Screen Shot for Marking Allowance: Initial Screen
After entering the posting period / fiscal year, company code, plant and material (s),
click on “Marking Allowance” to get the following screen:
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Product Cost Controlling
Screen Shot for Marking Allowance: Detail Screen
After getting the above screen, click on save
button to save the marking allowance.
After save the marking allowance, standard cost should be marked as described below:
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Product Cost Controlling
Marking Standard Cost
This feature is used for marking the standard cost for the materials which standard cost
is going to release.
Transaction Path: Accounting  Controlling Product Cost Controlling  Product
Cost Planning  Material Costing  Price Update
Transaction Code: CK24
Screen Shot for Marking Allowance: Initial Screen
After entering the posting period / fiscal year, company code, plant and material (s),
click on “Program  Execute” to get the following screen:
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Product Cost Controlling
Screen Shot for Marking Allowance: Detail Screen
After getting the above screen, click on save
button for save the marking.
After marking a standard cost, standard cost should be released as below:
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Product Cost Controlling
Release Standard Cost
This feature is used for release the standard cost for the materials. Once the standard
cost is released, this cannot be reversed.
Transaction Path: Accounting  Controlling Product Cost Controlling  Product
Cost Planning  Material Costing  Price Update
Transaction Code: CK24
Screen Shot for Release Standard Cost: Initial Screen
After entering the posting period / fiscal year, company code, plant and material (s),
select “Release” and click on execute
button.
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Product Cost Controlling
Screen Shot for Standard Cost: Detail Screen
After getting the above screen, click on save
button to save the standard cost.
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Product Cost Collectors
Product Cost Collectors
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Product Cost Collectors
Introduction
The Product Cost Collectors will be created for the each and every semi-finished and
finished goods of the company. Each and every semi-finished and finished goods are
having one product cost collector only. Creation of master data for product cost
collectors will be done by the Finance / Costing department. The product cost collectors
are debited with the consumption of materials and activity confirmation (i.e. number of
labor and machine hours spent) to be done by the Production Planning (PP) module. At
the end of the period the overheads are loaded on the orders, calculate variance and
finally the orders are settled. After settlement of order, the difference between standard
cost and actual cost of a semi-finished or finished goods will be debited / credited to the
price difference account.
The planned costs (standard cost) of the product cost collectors are calculated by the
system at the time of the order confirmed. For the calculation of the costs system
considers the following factors:
a)
Quantity of the product cost collector.
b)
Bill of Material (BOM) for the requisite raw materials packaging materials.
c)
Routing for the requisite operations to be carried out to complete production.
d)
Activity prices maintained in cost center accounting.
e)
Costing sheet for the overheads.
Once the PP Module Confirm the operations for the product cost collector following
things takes place:
1)
All the raw materials and semi-finished products required to manufacture the
quantity mentioned in product cost collector are issued to it. The required raw materials
are copied from the BOM of the material. However, if the actual consumption of the raw
materials is different from the standards, then the quantitative figures can be changed.
The debit to the product cost collector takes place at the actual quantity of the raw
material multiplied with the moving average rate thereof. The rate used for semi-finished
products is the standard costs thereof.
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2)
The activity allocation to the product cost collector takes place. The product cost
collector gets debited and the cost center on which this is executed gets credited. This
debit / credit takes place at actual production multiplied by the standard rate of the
activity type maintained in the system. The debit to the product cost collector is
accompanied with the credit to the cost center where the work center/resource is
assigned. The work center/ resource is assigned in the recipe.
3)
The finished goods inventory is taken in the finished goods stocks. The product
cost collector is credited and the inventory accounts is debited. The accounting entry is
passed at the actual quantity multiplied by the standard cost of the material.
The transactions, which are carried out at the end of the period (month end) are:
1)
Charging of the overheads as per the costing sheet.
2)
Calculation of the variances. These are calculated with Actual Vs. Plan, Actual
Vs. Standard.
3)
Settlement of the order. This transaction passes on the difference between the
actual cost and standard cost of the order to the price difference account. The other side
of the transaction hits the factory output account. The values of the price difference
account are passed over to the profitability analysis.
The role of Finance / Costing department about product cost collectors is as follows:

Charging of Overheads

Variance Calculation

Settlement of Orders

Information System
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Master Data
Master data is the data, which is created and used often as master records and this
information provides the basis for product cost collectors.
Individual Creation of Product Cost Collector
This feature is used to individually create the product cost collector master data.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Master Data Product Cost Collector Edit
Transaction Code: KKF6N
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Screen Shot for Create Product Cost Collector (Data)
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Product Cost Collectors
Screen Shot for Create Product Cost Collector (Header)
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Product Cost Collectors
Screen Shot for Create Product Cost Collector (Production Process)
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Collective Creation of Product Cost Collectors
This feature is used to collectively create the product cost collector master data.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Master Data Product Cost Collector
Collective Entry for Repetitive Manufacturing
Transaction Code: KKF6M
Screen Shot for Create Multiple Product Cost Collectors for Production Versions: Initial Screen
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Product Cost Collectors
Screen Shot for Create Multiple Product Cost Collectors for Production Versions: Detail Screen
After getting the above screen, click on save
button to save the document.
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Product Cost Collectors
Period-End Closing
A Period-end closing activities includes the charging of overheads, variance calculation
and settlement of product cost collectors at the month end.
Charging of Overheads
Individual Charging of Overheads to product cost collectors
This feature is used for charging overheads to the product cost collectors at the month
end as a part of Period-End Closing activities.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Period-End Closing Single Functions:
Product Cost Collector Overhead Individual Processing
Transaction Code: CO42
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Product Cost Collectors
Screen Shot for Actual Overhead Calculation: Product Cost Collector
After entered the above details, click on execute
button to get the following screen:
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Product Cost Collectors
Screen Shot for Actual Overhead Calculation: Product Cost Collector Debits
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Reverse the charging of overheads
This feature is used for reverse the charging of overheads. After reversal, the
accounting entries will be generated and the order will come to the original status.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Period-End Closing Single Functions:
Product Cost Collector Overhead Individual Processing
Transaction Code: CO42
Screen Shot for Reversal of Actual Overhead Calculation: Product Cost Collector
After getting the screen, entered the required data and then go to menu “Overhead
Calculation and click on Reverse”.
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Product Cost Collectors
Screen Shot for Actual Reversal of Charging Overheads: Product Cost Collectors
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Collectively Charging of Overheads to the Product Cost Collectors
This feature is used for charging of overheads collectively to the Product Cost
Collectors.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Period-End Closing Single Functions:
Product Cost Collector Overhead  Collective Processing
Transaction Code: CO43
Screen Shot for Actual Overhead Calculation: Product Cost Collectors
After entered the above details, click on execute
button to get the following screen:
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Product Cost Collectors
Screen Shot for Collective Actual Overhead Calculation: Product Cost Collectors Debits
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Collectively Reverse of Charging Overheads to Product Cost Collectors
This feature is used for collectively reverse the charging of overheads to the Product
Cost Collectors.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Period-End Closing Single Functions:
Product Cost Collector Overhead  Collective Processing
Transaction Code: CO43
Screen Shot for Reversal of Collective Actual Overhead Calculation: Product Cost Collectors
After getting the screen, enter the required data and then go to menu “Overhead
Calculation and click on Reverse”.
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Product Cost Collectors
Screen Shot for Collective Reversal of Charging Overheads to the Product Cost Collectors
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Variance Calculation
Individual Charging of Overheads to product cost collectors
This feature is used to calculate variances for product cost collectors at the month end
as a part of Period-End Closing activities.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Period-End Closing Single Functions:
Product Cost Collector  Variances Individual Processing
Transaction Code: KKS6
Screen Shot for Variance Calculation Product Cost Collector: Initial Screen
After entered the above details, click on execute
button to get the following screen:
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Screen Shot for Variance Calculation Product Cost Collector: Details Screen
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Collective calculation of variances for product cost collectors
This feature is used to calculate variances for product cost collectors at the month end
as a part of Period-End Closing activities.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Period-End Closing Single Functions:
Product Cost Collector  Variances  Collective Processing
Transaction Code: KKS5
Screen Shot for Collective Variance Calculation Product Cost Collector: Initial Screen
After entered the above details, click on execute
button to get the following screen:
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Screen Shot for Collective Variance Calculation Product Cost Collector: Details Screen
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Settlement
Individual Settlement of Product Cost Collectors
This feature is used for individual settlement of Product Cost Collectors at the month
end as a part of Period-End Closing activities.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Period-End Closing Single Functions:
Product Cost Collector Settlement Individual Processing
Transaction Code: KK87
Screen Shot for Actual Settlement: Product Cost Collector
After entered the above details, click on execute button.
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Screen Shot for Actual Settlement: Product Cost Collector Detail List & Documents in Accounting
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Product Cost Collectors
Reverse the Settlement of Product Cost Collectors
This feature is used for reverse the settlement of Product Cost Collector. After reversal,
the accounting entries will be generated and the order will come to the original status.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Period-End Closing Single Functions:
Product Cost Collector Settlement Individual Processing
Transaction Code: KK87
Screen Shot for Reversal of Actual Settlement: Product Cost Collector
After getting the screen, entered the required data and then go to menu “Settlement
and click on Reverse”.
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Product Cost Collectors
Screen Shot for Actual Reversal of Settlement and Documents in Accounting
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Collective Settlement of Product Cost Collectors
This feature is used for collective settlement of Product Cost Collectors.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Period-End Closing Single Functions:
Product Cost Collector Settlement Collective Processing
Transaction Code: CO88
Screen Shot for Collective Actual Settlement: Product Cost Collectors
After entered the above details, click on execute
button.
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Product Cost Collectors
Screen Shot for Collective Actual Settlement: Orders Detail List
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Product Cost Collectors
Collectively Reverse of Settlement of Product Cost Collectors
This feature is used for collectively reverse the settlement of Product Cost Collectors.
Transaction Path: Accounting  Controlling Product Cost Controlling  Cost Object
Controlling  Product Cost by Period  Period-End Closing Single Functions:
Product Cost Collector Settlement Collective Processing
Transaction Code: CO88
Screen Shot for Reversal of Actual Collective Settlement of Product Cost Collectors
After getting the screen, enter the required data and then go to menu “Settlement and
click on Reverse”.
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Product Cost Collectors
Screen Shot for Actual Reversal of collective settlement of Product Cost Collectors
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Profitability Analysis
Profitability Analysis
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Profitability Analysis
Introduction
Profitability analysis (PA) gives the information about the sales, costs, profit on
customer, product, product hierarchy, customer group, sales office, distribution channel,
sales organization, country, plant, company code, profit center, controlling area, period,
fiscal year etc. parameters. This information will enable the management to analyze the
performance of the above parameters called characteristics from sales, profit angles.
This information will provide management the necessary information for taking various
decisions. This management tool will help management to take the strategic and
operational decisions to improve the profits of the company.
Operating Concern
In financial accounting the company code is the highest organization unit, in controlling
the controlling area is the highest node similarly the operating concern is the highest
organizational unit in the profitability analysis module. All the transactions are executed
with reference to the operating concern.
An operating concern is an organizational unit in the company for which the sales
market has a uniform structure. It represents the highest reporting level in Profitability
Analysis.
Profitability Analysis Structure
Profitability Analysis
OPERATING
CONCERN
FFP
FFPS
Cost Center Management
CONTROLLING
AREA
FFP
FFP
General Ledger
COMPANY CODE
FFP
FFPS
Characteristics (profitability segments)
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Profitability Analysis
The data are stored with reference parameters combination such as customer, product,
product hierarchy, customer group, sales office, distribution channel, sales organization,
country, plant, company code, profit center, controlling area, period, fiscal year. These
parameters are characteristics and combination thereof is called profitability segments.
Value Fields
The data are stored in GL accounts in FI, cost elements in CO and value fields in PA.
The value fields are of two types (a) quantitative (b) amount.
Costing-based Profitability Analysis
This type of Profitability Analysis is primarily designed to analyze profit quickly for the
purpose of sales management. Its main feature is the use of value fields, which
represent cost, and revenue element groups, and automatic valuation of data using
costing methods. The advantage of this method is that data is always current and
therefore provides an effective instrument for controlling sales. The company is using
the costing based PA only.
Record Type
Record type is used to segregate the data according to its source
Following record types are used in PA
1.
Sales order - A
All the sales orders are stored under this record type
2.
Direct Posting from FI - B
The entire direct posting from FI are stored under this record type
E.g. Direct posting of sales invoices through FI
3.
Order/project settlement -C
All the settlement transactions are recorded under this record type
E.g. Settlement of product cost collector (make to stock), the variances transferred to
PA are recorded under this record type
4.
Cost-center costs - D
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Profitability Analysis
All the direct posting of Activity allocation to Profitability Segments and Assessment
Cycle are recorded under this record type
5.
Billing - F
All the billing documents generated through SD are recorded under this record type
How the transactions flow to Profitability Analysis:
Transaction Flow from SD at the time of billing
In case of process industry the revenue and the standard cost of the product is
transferred to PA at the time of billing document generated.
The standard cost estimates of the materials are stored in the cost components defined
in product cost planning. These cost estimates are linked with the value fields in the PA.
The revenues are booked through multiple condition types defined in SD. These
condition types are linked with the value fields in PA.
Transaction Flow from PP at the time of order Settlement
The variances from Product cost collectors i.e. the difference between the actual costs
incurred and the standard cost of the product is transferred to the PA at the time of the
settlement of the product cost collector. The variance calculation takes place for each of
the cost element booked in the product cost collector. These cost elements assigned to
a group are assigned to the value fields.
Transaction Flow from CO - CCA
The debits to the cost centers takes place by way of postings from FI/ MM etc. and
credits with the activity allocation / overhead charging at the standard rates. The
variance in the actual costs and the standard absorption rates leaves over/ under
absorption in the cost centers. This over/ under absorbed amount is moved to PA
through the execution of the assessment cycle defined in PA.
The details of the assessment cycle are as stated in the cost center accounting.
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Profitability Analysis
The sender in this case are cost center and cost elements. However the receiver are
various characteristics like product, customer, product group, distribution channel, sales
office, sales district, plant, controlling area, company code etc.
The basis of allocation can be % method for various segments or amounts lying in the
value fields of the profitability segments acting as the receiver.
On the execution of the assessment cycle the credit to the cost centers takes place
under the assessment cost element mentioned in the segment. The PA gets debited
under the characteristics specified in the segment.
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Profitability Analysis
Period-End Closing
Assessment Cycle
This function makes it possible to transfer the under absorbed or over absorbed costs of
all the cost centers to Profitability Analysis.
A cycle can contain sender cost centers from one controlling area and uses value from
either costing-based or account-based Profitability Analysis as tracing factors.
Transaction Path: Accounting  Controlling Profitability Analysis Actual Postings
 Period-End Closing  Transfer Cost Center Costs/Process Costs Assessment
Transaction Code: KEU5
Screen Shot for CO-PA Create Actual Assessment Cycle: Initial Screen
After this screen, click on enter
button to get the header data as below:
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Profitability Analysis
Screen Shot for CO-PA Create Actual Assessment Cycle: Header Data
After this screen, click on Attach Segment for attaching the segments as below:
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Profitability Analysis
Screen Shot for CO-PA Create Actual Assessment Cycle: Segment
After entering the relevant fields, then click on tab Senders/Receivers for enter the data
for sender or receiver cost centers and cost element/group.
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Screen Shot for CO-PA Create Actual Assessment Cycle: Segment (Senders/Receivers) (Page1)
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Profitability Analysis
Screen Shot for CO-PA Create Actual Assessment Cycle: Segment (Senders/Receivers) (Page2)
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Profitability Analysis
Screen Shot for CO-PA Create Actual Assessment Cycle: Segment (Receiver Tracing Factor)
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Profit Center Accounting
Profit Center Accounting
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Profit Center Accounting
Introduction
Profit center accounting module gives the segmental financial results of the company.
The information system reports give the information to the management on the
functioning of the various divisions of the company.
Profit Center Accounting is creating and managing the Master Data, Planning, Actual
Postings, Information Systems and Environment. Using Profit Center Accounting you
can

Manage information for profit centers, profit centers group, statistical key figures
and statistical key figures group.

Reposting from one profit center to another
.
The Profit Center Accounting is divided in to following sub components:

Master data

Actual Postings

Information System

Environment
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Profit Center Accounting
Master Data
Master data is the data, which is created and used often as master records and this
information provides the basis for profit center accounting.
Profit Center
The screen is used to create/ change/ display the profit centers. The important fields to
be entered are name & description of the profit center, Person in charge, department,
node of the standard hierarchy, the company codes for which profit center is valid etc.
The lock indicator in the profit center master data prevents any posting therein. It follows
that postings can’t be made to any of the cost center, orders, material etc., which are
assigned to the locked profit center. A list of all the profit centers is given in annexure
number 16.
Transaction Path: Accounting  Controlling  Profit Center Accounting Master
Data  Profit Center  Individual Processing Create
Transaction Code: KE51
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Screen Shot for Create Profit Center: Initial Screen
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Profit Center Accounting
Screen Shot for Create Profit Center: Detail Screen
After entering the required input data, click on activate (Shift+F1) button.
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Profit Center Accounting
Standard Hierarchy
Similar to the cost center hierarchy the profit centers is to be arranged in the hierarchy
called as standard hierarchy. Each profit centers created has to be assigned to any of
the last node of the hierarchy. It means that profit centers can’t be assigned to node
which itself contain a node therein. The nodes are treated as profit center groups for
reporting purposes. The standard hierarchy is attached in the attachment.
Transaction Path: Accounting  Controlling  Profit Center Accounting Master
Data  Standard Hierarchy  Create
Transaction Code: KCH1
Screen Shot for Create Profit Center Group: Initial Screen
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Screen Shot for Change Standard Hierarchy (Profit Center Group): Structure
After entered the required details, click on save
button to save the changes made.
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Profit Center Accounting
Profit Center Group
The profit centers are arranged in the groups for the facilitation of planning and
reporting requirements. The nodes in the standard hierarchy are automatically termed
as profit center group. The profit centers can be arranged in alternative groups using
this screen.
Transaction Path: Accounting  Controlling  Profit Center Accounting Master
Data  Profit Center Group Create
Transaction Code: KCH1
Screen Shot for Create Profit Center Group: Initial Screen
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Profit Center Accounting
Screen Shot for Create Profit Center Group: Structure
After entered the required details, click on save
button to save the changes made.
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Profit Center Accounting
Account Group
The GL accounts created in FI and secondary cost elements created in CO are termed
as accounts in profit centers. The groups of these GL accounts and secondary cost
elements are created/ changed/ displayed in the form of account group using this
screen. The Financial Statement version (FFPG) is arranged in the account group of
FFPG containing multiple account groups for reporting purposes.
Transaction Path: Accounting  Controlling  Profit Center Accounting Master
Data  Account Group Create
Transaction Code: KDH1
Screen Shot for Create Account Group: Initial Screen
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Profit Center Accounting
Screen Shot for Create Account Group: Structure
After entered the required details, click on save
button to save the changes made.
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Profit Center Accounting
Assignment Monitor
The screen is used to monitor the assignment of various materials and cost objects like
cost centers and internal orders to the profit centers. This transaction gives the list of
assignments of material/ cost objects to the profit centers and the unassigned materials/
cost objects.
VARIOUS ASSIGNMENTS
Materials:
All the materials and plant combination are to be assigned to the profit centers. A
material lying in separate plants can be assigned to multiple profit centers. The
assignment can be carried out for an individual material, material type, material group,
and product hierarchy. Any new assignment over-writes the previous assignment. This
value of the stocks are assigned to the profit center where the material + plant
combination is assigned to.
Non-Assigned: Gives the list of all those materials, which are not assigned to the profit
centers.
Assigned Material: Gives the list of all those materials, which are assigned to the profit
centers.
Cost Centers:
All the cost centers are to be assigned to the profit centers. Any new assignment overwrites the previous assignment. The cost booked to the cost center from FI/ MM etc. is
passed on the assigned profit center.
Non-Assigned: Gives the list of all those cost centers, which are not assigned, to the
profit centers.
Assigned Cost Centers: This transaction gives profit center wise assigned cost center
list.
The assignment of the cost center is given in annexure 17.
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Internal Orders:
All the internal orders are to be assigned to the profit centers. Any new assignment
over-writes the previous assignment. The cost booked to the internal order from FI/ MM
etc. is passed on the assigned profit center.
Non-Assigned: Gives the order type wise list of all those Internal orders, which are not
assigned to the profit centers.
Assigned Orders: This transaction gives list of profit center wise assigned internal
orders.
Transaction Path: Accounting  Controlling  Profit Center Accounting Master
Data  Assignment Monitor
Transaction Code: 1KE4
Screen Shot for Profit Center Accounting: Assignment Monitor
After getting the above screen, go to menu and select “Assignment Monitor Cost
Centers Non-Assigned
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Screen Shot for EC-PCA: Non-Assigned Cost Centers: Initial Screen
After getting the above screen, click on execute button to get the detailed list of cost
centers assigned and non-assigned.
Screen Shot for EC-PCA: Non-Assigned Cost Centers: Initial Screen
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Profit Center Accounting
After getting the initial screen for assignment monitor, go to menu and select
“Assignment Monitor Materials Assigned Materials”
Screen Shot for EC-PCA: Materials Assigned to Profit Centers: Initial Screen
After entering the Material Type and Profit center group, click on execute button to get
the detailed list as below:
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Profit Center Accounting
Screen Shot for EC-PCA: Materials Assigned to Profit Centers: Detail Screen
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Profit Center Accounting
After getting the initial screen for assignment monitor, go to menu and select
“Assignment Monitor Orders Assigned Orders”
Screen Shot for EC-PCA: Orders Assigned to Profit Centers: Initial Screen
After entering the Order category, Order Type Profit center group, click on execute
button to get the detailed list as below:
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Profit Center Accounting
Screen Shot for EC-PCA: Orders Assigned to Profit Centers: Detail Screen
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Profit Center Accounting
Actual Postings
Profit Center Document
This feature is used to pass JV entries in the profit center accounting. The basic
principals of passing JV entries in PCA are:

Each line to contain GL account, profit center and amount (positive or negative)

The balance of the document should be zero i.e. the total of debit or the credits
be zero.

The document is used to pass manual entries, rectification entries, reposting
entries etc.

The profit centers are updated online.
Transaction Path: Accounting  Controlling  Profit Center Accounting Actual
Postings  Profit Center Document  Enter
Transaction Code: 9KE0
Screen Shot for Create Document: Initial screen
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After getting the above screen, click on execute button to get the following screen:
Screen Shot for Create Document: Characteristics
Enter the company code and click on entry screen (F5) button to get the following
screen:
Screen Shot for Create Document: Line Items
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After entering the required data, double click on the line item to enter the document text.
Screen Shot for Create Document Line Items: Document Detail
After entered the required data, click on save
button.
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Statistical Key Figures
Enter Statistical Key Figures:
This feature is used to enter the actual statistical key figures on a monthly basis.
This feature is used to book the parameters as the basis of allocation of values from
one profit center to various profit centers. This is similar to booking of SKF for the cost
centers. The examples of the SKF for the profit centers are turnover, asset base etc.
The SKF can be used to record the values for the information purposes also. The
details of this transaction are given in cost center planning of CCA user manual.
Transaction Path: Accounting  Controlling  Profit Center Accounting Actual
Postings  Statistical Key Figures  Change
Transaction Code: 9KE5
Screen Shot for Change Statistical Key Figures: Initial Screen
After entered the required data, click on execute button.
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Screen Shot for Change Statistical Key Figures: Characteristics
After entered the required data, click on overview screen (F5) to enter the SKF.
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Profit Center Accounting
Screen Shot for Change Statistical Key Figures: Cumulative values
After entered the required data, click on save
button.
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Profit Center Accounting
Period-End Closing
PCA Assessment Cycle:
The values (both P&L and Balance sheet related) which can’t be assigned to the
strategic business units related profit centers are booked to the common profit centers.
At the end of the period these values are allocated to various profit centers using
percentage, SKF, cost element as the basis of allocation. The details of the method of
assessment cycle are charted out in the user manual of cost center accounting. In FFP
the assessment cycles have been designed to allocate the expenses booked in PGCS
& Dummy profit centers. The details of assessment cycle are given in annexure 18.
Path for creation of Actual Assessment Cycle:
Transaction Path: Accounting  Controlling  Profit Center Accounting Actual
Postings Period-End Closing Assessment
Transaction Code: 3KE5
After getting the initial screen, go to menu “Extras  Cycle  Create”
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Screen Shot for EC-PCA Create Actual Assessment Cycle: Initial Screen
After this screen, clink on enter to get the header data.
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Profit Center Accounting
Screen Shot for EC-PCA Create Actual Assessment Cycle: Header Data
After this screen, clink on Attach Segment for attaching the segments.
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Profit Center Accounting
Screen Shot for EC-PCA Create Actual Assessment Cycle: Segment
After entering the relevant fields, then click on tab Senders/Receivers for enter the data
for sender or receiver cost centers and cost element/group.
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Screen Shot for EC-PCA Create Actual Assessment Cycle: Segment (Senders/Receivers)
After the above screen, then click on tab Receiver Tracing Factor for enter the %
against receiver cost centers.
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Profit Center Accounting
Screen Shot for EC-PCA Create Actual Assessment Cycle: Segment (Receiver Tracing Factor)
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Profit Center Accounting
Screen Shot for EC-PCA Create Actual Assessment Cycle: Segment (Receiver Weighting Factors)
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Profit Center Accounting
Transferring Payables/Receivables
The values of payables and receivables pertaining to purchases and sales made for a
profit center is not updated online. This transaction is to be executed to transfer the
values of receivables and payables pertaining to the profit centers. However, it is
necessary to execute the transaction of Balance sheet readjustment in FI before this
transaction is executed. The path of which is:
Accounting  Financial Accounting General Ledger  Periodic Processing
Closing  Regroup  Calculate Balance Sheet Adjustment  Calculate
Transaction Path: Accounting  Controlling  Profit Center Accounting Actual
Postings Period-End Closing  Transferring Payables/Receivables
Transaction Code: 1KEK
Screen Shot for PCA: Transfer Payables / Receivables
After getting the above screen, select the company code and click on execute
button
for transfer payables / receivables.
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Profit Center Accounting
Screen Shot for Call up transfer Payables / Receivables
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Profit Center Accounting
Transferring Assets
Similar to payable/ receivables, the values of fixed assets pertaining to the profit centers
are not updated online. At each month end this transaction need to be executed to
transfer the values of assets pertaining for each profit center.
In the asset master the name of the cost center is maintained, which in turn is assigned
to a profit center. With this linkage of asset master to profit center through the cost
center the values of assets is assigned to the profit center. The depreciation values are
booked to the assigned profit centers online (at the time of execution of the depreciation
run).
Transaction Path: IMG Accounting Controlling  Profit Center Accounting
Actual Postings Transferring Selected Balance Sheet Items  Generate Opening
Balance for Assets
Transaction Code: 1KE1
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Screen Shot for PCA: Transfer Assets
After getting the above screen, select the company code and click on execute
button
to transfer assets.
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Profit Center Accounting
After selecting the fields as per shown in the screen, execute
Screen Shot for EC-PCA: Transfer Assets
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Profit Center Accounting
Transferring Material Stocks
Similar to payable, receivables and assets the values of all stocks items like raw
materials, stores, semi-finished, finished, packing material etc. are not booked the profit
centers, online. This transaction is to be executed to pass on values of the inventories
held by each profit center. The material masters and plant combinations are assigned to
the profit centers. The stocks of materials lying in each of the plants are assigned to the
respective profit centers. The values booked to the profit centers are the closing
balance of the inventories lying in the plants at the time of the execution of this
transaction.
Transaction Path: IMG Accounting Controlling  Profit Center Accounting
Actual Postings Transferring Selected Balance Sheet Items Generate Opening
Balance for Material Stocks
Transaction Code: 1KEH
Screen Shot for EC-PCA: Transfer Material Stocks
After getting the above screen, select the company code and click on execute
button
to transfer material stocks.
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Profit Center Accounting
Screen Shot for EC-PCA: Transfer Material Stock to EC-PCA
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Balance Carry-forward
This feature is used for transferring the closing balances of balance sheet items as an
opening balance for next financial year.
Transaction Path: Accounting Controlling  Profit Center Accounting Actual
Postings Period-End Closing  2KES - Balance Carry-forward
Transaction Code: 2KES
Screen Shot for Profit Center: Carry forward actual balance
After entered the details of company code and carry forward to fiscal year, click on
execute
button for carry forward actual balances.
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Profit Center Accounting
Screen Shot for Profit Center: Carry forward actual balance
After getting the above screen, click on Balance sheet accounts to get the detailed
screen as follows:
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Screen Shot for Display of Balance Sheet Items
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Information System
Various reports of the profit centers are available on the screens. The following
mentioned report will gives the plan data, actual data and variance for profit centers.
Transaction Path: Accounting  Controlling  Profit Center Accounting Information
System Reports for Profit Center Accounting Interactive Reporting Profit Center
Group: Plan/Actual/Variance
Transaction Code: S_ALR_87013326
Initial screen shot for profit center-wise plan or actual cost
After entered the required data, click on execute button to get the detailed screen as
below:
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Detailed screen shot for profit center-wise plan or actual cost
Note: Profit center accounting information system is providing the many standard
reports.
Transaction Codes: S_ALR_87013326 to S_ALR_87013352.
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