E4458 Config Document CO

OASIS SAP Implementation Project ID:E4458

Configuration Document - Controlling

Record of Release

Version No.

Modified By Reviewed By Authorized By Release Date Modifications Done

1.0 Harsh Bhargava

Venkata Rao B.

Sanjay Karandikar

15.12.2008

E4458V1.0 /15.12.2008 Configuration Document-CO Project Oasis

Table of contents

1. General Controlling.......................................................................................................3Maintain Controlling Area........................................................................................................................3Maintain Number Ranges for Controlling Documents.............................................................................8Maintain Versions...................................................................................................................................13

2. Cost Element Accounting............................................................................................17Automatic Creation of Primary and Secondary Cost Elements..............................................................17

3. Cost Center Accounting..............................................................................................18Activate Cost Center Accounting in controlling area.............................................................................18Define Cost Center Categories................................................................................................................19Automatic Account Assignment.............................................................................................................20

4. Internal Orders.............................................................................................................21Define Order types..................................................................................................................................21Maintain Number range..........................................................................................................................23

5. Product Cost Controlling.............................................................................................23Define Costing Sheets.............................................................................................................................23Define Calculation Bases........................................................................................................................24Define credit............................................................................................................................................27Define Cost Component Structure..........................................................................................................29Define Costing Variants..........................................................................................................................33Define Costing Types..............................................................................................................................37Define Valuation Variants......................................................................................................................39Define date control..................................................................................................................................42Define Quantity Structure control...........................................................................................................43Costing Variants for Valuation of Internal Activities.............................................................................44Define Cost-Accounting-Relevant Default Values for Order Types and Plants....................................46Define Work in Process Calculation.....................................................................................................47Define Variance Keys.............................................................................................................................48Define Variance Variants........................................................................................................................50Define target cost versions......................................................................................................................51Define settlement profile.........................................................................................................................53Create Allocation Structure.....................................................................................................................54

5. Profit Center Accounting...............................................................................................55Maintain Controlling Area Settings........................................................................................................55Set Control Parameters for Actual Postings............................................................................................56Analyze Settings.....................................................................................................................................58Assign Default Profit Center to Accounts...............................................................................................59

L


1. General Controlling

Area of Configuration

Maintain Controlling Area

Menu Path: Implementation Guide for R/3 Customizing Controlling General Controlling Organization Maintain Controlling Area

Transaction Code: OKKP

Details of Configurations/Changes:

Basic Data : Here some of the basic data for the controlling area are to be maintained. These are in the terms of:

a) Assignment control: Set it to one if the relationship between the company code and the controlling area is one to one. However if more than one-company codes are assigned to the controlling area then this indicator is set to Cross-Company-code accounting. In AKS looking to the future requirements the indicator is set to Cross Company Code Accounting. Controlling area JG10 has been assigned to company codes namely AK10. b) Currency Type: For JG10 controlling area currency type set is 20 (Controlling Area Currency).

c) Chart of Accounts: The chart of accounts to be adopted for Controlling is mentioned here. In AK10, chart of accounts used is JG10 (Chart of accounts JG10).

d) Fiscal year variant: This variant is same as that followed in company codes i.e. JG being Calendar year with 4 special periods.

e) Standard hierarchy: This is the cost centers group under which all the cost centers are arranged. Standard hierarchy defined is JAG_GROUP (Jamal Group Cost center Standard Hierarchy)

SAP-E2E-012T_Config. Document © L&T Infotech Internal Use Page 3 of 59Ver 1.0/30-Mar-05


Screen shot for “Maintain Controlling Area”

Configuration values for Maintain Controlling AreaSr. No Controlling Area Description1 JG10 Jamal Al Ghurair Group

Sr. No Configuration Values Description1 20 Controlling area Currency 2 AED UAE Dirham3 JG10 Chart of Accounts for JAG group4 JD Fiscal Year Variant5 JAG_GROUP Cost Center Standard Hierarchy



Activate Component/ Control Indicators:Here various components of the controlling module are activated / deactivated for the controlling area. Every component to be used in CO needs to be activated on this screen.

a) Cost Centers: In the activate components; cost center is set as 1. (Component active)

b) Order Management: This Component is set as 1(Component Active)

c) Commitment Management: In the activate components; commitment management is set as 1. (Component active).

d) Profitability Analysis: Profitabilty Analysis is not being used by AKS. Hence this indicator is set to Inactive.

e) Profit Center: Profit center accounting module is implemented this

Check Box is ticked.

f) CoCD Validation: This Checkbox will ensure validation of Cost centers with Company code while Document Posting so that to ensure correct cost center is posted for a Company code.



Screen shot for “Activate Components/Control Indicators”



Company Code Assignment:

Here the company code is assigned to the controlling area. More than one company codes can be assigned to one controlling area. Company code AK10 is assigned to controlling Area JG10

Screen shot for “Assignment of Company Codes”

Configuration values for Assignment of Company Code(s)Sr. No Controlling Area Description1 JG10 Jamal Al Ghurair Group

Sr. No Company Codes Description1 AK10 Al Khaleej Sugar Co.LLC




Maintain Number Ranges for Controlling Documents

Menu Path: Implementation Guide for R/3 Customizing Controlling General Controlling Organization Maintain Number Ranges for Controlling Documents

Transaction Code: KANK


With the execution of many of the controlling functions a controlling document is generated. The assignment of automatic / external document number is controlled from this feature. The scheme of the numbering system is as follows:

a) Document numbering feature is controlling area specific.

b) The numbering of document can be system determined or manually given by the user. For automatic numbering the transactions code needs to be attached with the number ranges.

c) Each and every function of CO for which a document is generated is given a technical name. For example, planned distribution is called”RKPV” and actual activity allocation is called “RKL”. For automatic numbering the transactions code to be attached with the number ranges.

d) Similar functions of the CO are assigned to a group. For this the group is created, the number range is defined manually and then the transactions are assigned to this group using assignment function. For example: a group is created for the planning transactions, group is assigned to the number range and all the planning transactions are assigned to this group. Whenever any of the planning transaction will be executed it will be assigned the sequential number by the system, if the automatic number range is allowed for the planning transactions.



Following steps were followed for creating Number ranges

1. Maintain Group for controlling Area

2. Group Insert

3. Insert Group text and from number to number (Follow above step for each group to be created)



4. Select Element from Not assigned…go to…edit Select element



5. Select element group and assign element to element group

1. You will find element is assigned to element group



Follow above mentioned steps for the entire not assigned element to assign in an appropriate element group.




Maintain Versions

Menu Path: Implementation Guide for R/3 Customizing Controlling General Controlling Organization Maintain Versions

Transaction Code: SPRO


This is one of the most important IMG settings and is year specific. The steps to be followed for controlling area settings:

a) New Entries: Create the version and give a name to the same.

b) Setting in controlling area: Choose the line for version just created and press the “Controlling area settings” button in the navigation area of the screen.

c) Settings for fiscal year: Choose the line for version to be maintained for the controlling area and press the “Settings for Each Fiscal Year” button in the navigation area of the screen.

d) Maintain the fiscal year: On the settings for the fiscal year appears. Create a New Year if that is not already created. Now double click the year to be maintained.

e) Fiscal year dependent version parameters: These year specific settings are very important for the proper usage of the controlling area.

(i) Version blocked: If this indicator is set then the planned values for the year can’t be changed. If the plan figures need to be changed once the version is blocked, the block indicator must be deactivated first. This feature is used for preventing the unauthorized changes in the plan figures.

(ii) Integrated Planning: Clicking this button enables the passing on of the plan data in cost center accounting to other functions like profit center accounting, special ledger etc.

(iii) Copying allowed: This button controls whether the data of the version can be copied in another version.

(iv) Currency Translation: This feature is used for the conversion of data from controlling area currency figures into other currencies.

(v) Activity price calculation: Here the necessary settings for the method of calculation of the cost of plan and actual costs for activities to be made. Revaluation transaction can charge the receiver of activity types with the difference of plan rate and actual rate. However, this facility to be used only if the activities are allocated from one cost center to other cost centers.



Screen shot for “General Version Definition”

Configuration values for Maintain VersionsSr. No Version Description1 0 Plan / Actual Version2 1 Plan Version 1: JG13 2 Plan Version 2: JG2

Screen shot for “Settings for Profit Center Accounting”



Screen shot for “Settings for Controlling AreaFor Fiscal year version ’0’



Screen shot for “Settings for Each Fiscal year- Planning”

Screen shot for “Settings for Each Fiscal year- Price Calculation”



2. Cost Element Accounting


Automatic Creation of Primary and Secondary Cost Elements

Menu Path: Implementation Guide for R/3 Customizing Controlling Cost Element Accounting Master Data Cost Elements Automatic Creation of Primary and Secondary Cost Elements Make Default Settings

Transaction Code: OKB2 Details of Configurations/Changes: All the GL accounts (Expenses) in the chart of accounts are created as the primary cost element in the controlling area. These cost elements can be created one by one or all of them at one stroke. The GL accounts are chosen by the use of default settings for creation of the cost elements. The category of cost elements is mentioned against the GL account. After this a batch-input session is created for the creation of all cost elements for the GL accounts chosen at default setting stage. Finally, the batch-input session is executed. On execution, cost elements for all the chosen GL accounts are created in the controlling area.

Screen shot for “Automatic Cost Element Generation”

This is only One time activity and Further creation of Cost elements has to be done manually.



3. Cost Center Accounting


Activate Cost Center Accounting in controlling area

Menu Path: Implementation Guide for R/3 Customizing Controlling Cost Center Accounting Activate Cost Center Accounting in Controlling Area.

Transaction Code: OKKP

Details of Configurations/Changes

This screen is used to activate the cost center accounting in controlling area.

Screen shot for “Activate Cost Center Accounting in Controlling Area”




Define Cost Center Categories

Menu Path: Implementation Guide for R/3 Customizing Controlling Cost Center Accounting Master Data Cost Centers Define Cost Center Categories Transaction Code: SPRO


The types and the categories of the cost centers are defined here. The cost center type is one of the input fields at the time of the creation / maintenance of the cost center. The transactions like planning primary cost / secondary cost / revenue, actual primary cost / secondary cost / revenue, quantity, commitment etc. for each type of cost centers are made allowable or disallowable at this stage. This feature is helpful in preventing mistakes. For example, the planning of revenues for administration type (e.g. administrative cost center) is possible to disabled in this screen. In future, by mistake also the revenue cost elements can’t be planned for Administration cost center.

Screen shot for “Cost center categories”

For AKS , Standard Cost center Categories have been used.




Automatic Account Assignment

Menu Path: Implementation Guide for R/3 Customizing Controlling Cost Center Accounting Actual Posting Manual Actual Posting Edit Automatic Account Assignment

Transaction Code: OKB9

Here default Account assignments are made for a particular Cost Element such as a default Cost centre for postings to Freight Account.These defaults are generally defined for cost elements with automatic postings.

Similar Default account assignment can be given to a Cost element in the Master Data , but that would be applicable to all company codes.

In AKS , one cost element 701210 has been defaulted Cost Center AKS510 in Cost element Master Record.



4. Internal Orders

Define Order types

Each Internal order is created for an Order Type.Hence order type needs to be defined in the system.Every order type has some default characteristics which are configured in the order type configuration.


Define Order Type

Menu Path: Implementation Guide for R/3 Customizing Controlling Internal Orders Order Master DataDefine Order types



Two Order Types has been configured for AKS. However AKS will presently use Order type ZAK1 as Statistical Order for their present requirement. Hence configuration of ZAK1 is only completed in the system.

Type Short Text Cat Commt Rev StatProf SProf. Profile COP

Z001 Internal orders Actual -JG10 01 1 00000002 20 000001 X

ZAK1 Internal orders:AKS statisical Orders 01 1 000001 X

Type ResT1 Rel ChD Profile ObjCl C GenSMFunc. Area

Ex. Profil

Z001 003 Overhead X

ZAK1 000 X 000001 Overhead X



Areas of Configuration

Maintain Number range

Menu Path: Implementation Guide for R/3 Customizing Controlling Internal Orders Order Master DataDefine Number range

Transaction Code : KONK

Number ranges for Order type is assigned in the Similar way as the Number range for Controlling area is maintained.Here Order types are Assigned to Number range group in the transaction KONK

“Screen Shot for Order Number Range maintenance”

5. Product Cost Controlling

Define Costing Sheets

This costing sheet establishes the relationship between the bases, overhead and the credit. The process order is debited by the amount calculated by applying the overhead rate to the base and the corresponding credit goes to the cost center.




Define Calculation Bases

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Product Cost Planning Basic Settings for Material Costing Overhead Costing Sheet: Components Define Calculation Bases



This feature is used to load the overheads / surcharges at the predefined rates to the process orders.

The cost elements, which pertain to the base, are assigned to it. In AKS, all the overheads are based upon the Quantity Input of Raw Sugar on the process order.The overheads are charged on the process order at PMT (per mt) Rate

The quantity Consumption of Raw sugar is recorded on the Consumption Cost element and hence is taken as base for charging Overhead.

Screen shot ”Costing Sheet”

Screen shot for “Details of Calculation base - Material”





Define Overhead rate

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Product Cost Planning Basic Settings for Material Costing Overhead Costing Sheet: Components Define Quantity –Based Overhead Rate.

In AKS Overhead rates are based as quatity based and charged at Per MT of Raw sugar consumed.The Rates are dependent on Plant level.

Screen Shot for Quantity Based Overhead rates.




Define credit

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Product Cost Planning Basic Settings for Material Costing Overhead Costing Sheet: Components Define Credits



The application of overhead results in debit to the process order with overhead cost element and A credit of the same amount has to go to a cost center. This setting determine the cost center to be credited and the element under which the credit to take place. The path for the creation of the credit is:

Define Credit Create

Give the credit a name having maximum three-characters and description.

Double click the credit.

Enter the validity date, surcharge cost element, % of it to be treated as fixed, name of the cost center to be credited.



Costing Sheet Final Configuration for AKS




Define Cost Component Structure

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Product Cost Planning Basic Settings for Material Costing Define Cost Component Structure

Transaction Code: OKTZ


Cost component structure need to be defined in the system for break up of the costs.The Cost component structure breaks up the Cost of the product into various cost components such as Material ,Labor ,Overhead,depreciation etc.

Cost elements are mapped to the cost components and thereby the posted to the Process Orders through primary or Secondary cost elements is captured and classified as material or Labor costs (ie Cost component wise)

Description of each factor is given hereunder:

Cost share: Variable or total (variable and fixed cost) cost of the component to be included in all the valuations given hereunder. The choice is to be made for each component.

Cost element group: The component can be grouped further.

Cost rollup: If the costs are to be included in the cost of the next highest costing level, enter this indicator.

Cost of goods sold: Select the button according to the nature of the component.

There is more than one method of the calculation of inventory available in the system. The Scheme of the selection of the button is similar for all. Each of the cost components will be given one of the three statuses for each valuation method i.e. not relevant, variable costs, fixed and variable costs.

In AKS Cost Component Structure is “JG” and have 8 cost components. All the cost components are treated as part of the cost of goods manufactured (COGM).

Activate layout: Activate the layout on the main screen.

Attach the layout to the cost-controlling version for the year.

“Screen Shot for Cost Component Structure”SAP-E2E-012T_Config. Document © L&T Infotech Internal Use Page 29 of 59Ver 1.0/30-Mar-05


Screen Shot of details of Cost component structure JG

Screen shot of a Particular Cost Component (Raw Material)



Screen Shot for Assignment of Cost element for Raw Material

“Screen Shot for Cost Component Views- COGM”



“Screen Shot for Assignment Organization Units -Cost Component Structure”




Define Costing Variants

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Material Cost Estimate with Quantity Structure Define Costing Variants

Transaction Code: OKKN


The costing variant contains all control parameters for costing. This is entered on creation of the product cost estimate, thereby forming the link between the application and customizing. The costing variants define how costing is carried out. Among other things, it controls how the quantity structure and the value structure are created. The parameters are attached in the costing variant. In addition, the following parameters are defined in Costing variant:

Whether log to be generated and saved.Whether cost components can be added manually.Whether savings of various parameters is allowed.

The costing variant is attached in the order type defined in Production Planning (PP). Each time a process order is created, all the parameters of costing variant automatically become applicable to the process order.

AKS will use Costing variant ZPC1 for calculating Standard Cost of their products.

Following are the Screen shots of Configuration of Costing variant ZPC1

“Screen Shot for Costing Variants- Control Tab”



“Screen Shot for Costing Variants- Quantity Structure Tab”



“Screen Shot for Costing Variants- Additive Costs Tab”

“Screen Shot for Costing Variants- Update Tab”



“Screen Shot for Costing Variants- Assignment Tab”

“Screen Shot for Costing Variants- Misc. Tab”




Define Costing Types

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Material Cost Estimate With Quantity Structure Costing Variant: Components Define Costing Types

Transaction Code: OKKI

Details of Configurations/Changes For a material various cost components views can be created and transferred to the material master for future pricing. The cost component view, which needs to be transferred to the accounting & costing view of the material master, is defined here. For example, the costing type “standard cost estimate” requires the standard price to be updated.

The constituents of the costing types are as follows:The date from which the standard cost estimate is stored.The material price will be updated in the costing / accounting view of material master.Valuation view.

“Screen Shot for Costing Types- Price Update tab”



“Screen Shot for Costing Types- Save Parameters tab”

“Screen Shot for Costing Types- Misc. tab”




Define Valuation Variants

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Material Cost Estimate With Quantity Structure Costing Variant: Components Define Valuation Variants

Transaction Code: OKK4


The valuation variant contains all the parameters for the valuation of the cost estimate. Normally the cost of a product has the following items:

Raw Material PriceInternal activities allocatedOverhead surcharges.

Cost Breakup Source of Data Cost Calculation Procedure

Material Cost Bills of Material Standard Qty X Rate in Material master

Activity Costs: Routing / Cost Standard time for activities (Routing)/

Center Accounting Rates defined in activity price planning (CCA)

Overheads: Costing Sheet Attached to the valuation variant.

The standard quantities and the operations for the material are determined through the bill of material and routing for it. While the rates (for material, internal activity, overheads) for the multiplication with the quantities is determined through the valuation variant. The settings in valuation variant for different constituents of the standard costs are mentioned hereunder:

a) Raw Material Price:The rate of the raw material to be used for cost estimate can be selected out of 23 possible prices of the material. In the valuation variant any 5 types of the prices has to be maintained according to the priority for the usage of the same. The system searches for the prices of the material in the sequence of the priority maintained in the valuation variant. Wherever a value exists for the material prices, the system chooses the same for valuations.All the prices are maintained in the accounting and costing view of the material master.



b) Internal Activities Allocation:Here, the sequence in which the system is to select prices from activity type in cost center accounting is defined. In the valuation variant, three strategies for the selection of the internal activity cost can be maintained out of the maximum 5 strategies. The principal of the selection of the valid activity price is similar to material cost.

c) SurchargesThe costing sheet for the application of the overheads is to be attached in the valuation variant.

a) The settings for the external activity and sub-contracting are to be maintained in the valuation variant.

“Screen Shot for Raw Material Cost”



“Screen Shot for Internal Activities”

Subcontracting and Ext. Processing Are not being Used for AKS

“Screen Shot for Overhead Calculation”




Define date control

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Material Cost Estimate With Quantity Structure Costing Variant: Components Define Date Control



The parameters are defined here controls the dates of the standard cost estimate. The following dates are controlled through the date control key:

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.

The date control key is attached in the costing type.“Screen Shot for Date Control”




Define Quantity Structure control

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Material Cost Estimate With Quantity Structure Costing Variant: Components Define Date Quantity Structure Control



Quantity structure determination is used in cost estimates with quantity structure to specify for each plant how the system searches for valid alternative Bill of Materials (BOMs) and alternative routings to create a quantity structure for multilevel BOMs. The search is carried out on the basis of two parameters:

Application of BOMs to determine alternatives automatically

This key determines how the system should choose the suitable alternative for the different company areas in which the BOM is used.Selection ID for selecting alternative routings

This key determines the priority given to routings during routing selection.

“Screen Shot for Quantity Structure Control- BOM tab”




Costing Variants for Valuation of Internal Activities

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Cost Object Controlling Product Cost by Order Check Costing Variants for Manufacturing Orders (PP) Costing Variants

Transaction Code: OPL1

Details of Configurations/Changes Here only two parameters are defined a) Costing type b) valuation variant in the costing variant for order related production. The costing variant is the linkage between the customization and the application. The costing variant is attached in the order type setting in Production Planning module. Each order created for a defined order type reads the costing variant for the purpose of finding out the material cost, internal activity, and surcharges defined in the valuation variant.

Separate costing variants need to be defined for the planned figures and the actual figures. Both of these costing variants are attached in the order type setting in Production Planning. These costing variants control the planned and the actual costs of the plan orders. For planned costing variant is ZPP1 and for actual costing variant is ZPP2

“Screen Shot for Costing Variants for Order-Plan – Control Tab”



“Screen Shot for Costing Variants for Order-Plan – Assignment tab”

“Screen Shot for Costing Variants for Order-Plan – Valuation Variant”

Note: Similarly Parameters are maintained for Costing variant ZPP2 : Order Actual




Define Cost-Accounting-Relevant Default Values for Order Types and Plants

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Define Cost-Accounting-Relevant Default Values for Order Types and Plants



The costing relevant parameters of the order types can be created on this screen, in addition to PP IMG settings screen. Default key for settlement, actual & plan costing variant, actual & plan valuation variant are specified in this screen. Further, automatic calculation of the plan costs etc. can be activated / deactivated on this screen.

“Screen Shot for Default Values for Process Order (For Refined Sugar)”



“Screen Shot for Default Values for Process Order (For Coarse,Fine & Extrafine Sugar)”


Define Work in Process Calculation

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Period-End Closing Variance Calculation Define Variance Keys

Transaction Code: OKV1


Variance key is defined here. This key is attached in the order type in Production Planning (PP) customization. This is copied in the process order at the time of creation of the same. In AKS,Standard variance Key 000001 is used.




Define Variance Keys

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Period-End Closing Variance Calculation Define Variance Keys



Variance key is defined here. This key is attached in the order type in Production Planning (PP) customization. This is copied in the process order at the time of creation of the same. In AKS,Standard variance Key 000001 is used.

“Screen Shot for Variance Keys”




Define Default Variance Keys for Plants

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Period-End Closing Variance Calculation Define Default Variance Keys for Plants

Transaction Code: OKVW


The variance key is attached to the plant in this step. Variances are calculated on the basis of the variance key shown in the order master record.

“Screen Shot for Default Values for Variance Keys”




Define Variance Variants

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Period-End Closing Variance Calculation Define Variance Variants

Transaction Code: OKVG


Variance variant controls the type of the variances to be calculated for the process orders. All the possible types of the variances like price variance, resource usage variance, quantity variance, input variance, output variance, lot size variance are activated for OMC.

“Screen Shot for Variance Variants”




Define target cost versions

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Period-End Closing Variance Calculation Define Target Cost Versions



The version calculates the variance on comparing various combinations of the costs. The versions calculate the variance in the following data.

Version Variance0 Actual cost vs. Standard cost estimate.1 Actual cost vs. Plan costs.2 Plan cost vs. Standard cost estimate.

These versions are created with relation to the variance variant.

“Screen Shot for Target Cost Version 0”








Define settlement profile

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Period-End Closing Settlement Create Settlement Profile



Settlement profile is useful to settle the cost against the receiver cost object, which defined in settlement rule. Here Settlement profile is OM01

“Screen Shot for Settlement Profile- Process Order”




Create Allocation Structure

Menu Path: Implementation Guide for R/3 Customizing Controlling Product Cost Controlling Cost Object Controlling Product Cost by Period Period-End Closing Settlement Create Allocation Structure



The settlement structure for order being used is OM

“Screen Shot for Assignments”

“Screen Shot for Assignment Primary Costs”



5. Profit Center Accounting


Maintain Controlling Area Settings

Menu Path: Implementation Guide for R/3 Customizing Controlling Profit Center Accounting Basic Settings Controlling Area Settings Maintain Controlling Area Settings

Transaction Code: OKE5


The settings for the controlling area are carried out in this step. The following fields are defined in this screen:

Dummy Profit Center: In case system doesn’t find any profit center in the transaction then posting is made to the profit center defined in the filed “Dummy Profit Center”. Here dummy profit center is DEFLT (Default)

Standard Hierarchy: All the profit centers of the company are arranged in the standard hierarchy. The concept of standard hierarchy in Profit Center Accounting (PCA) is similar to Cost Center Accounting (CCA). Here Standard Hierarchy defined is JAG_GROUP

Elimination of internal business: When a transaction debits and credits the same profit center than no profit center accounting document is generated if this box is ticked. Not applied in AKS

Currency Type: The currency in which PCA posting is made is specified in this box. In AKS controlling currency is kept as 20 controlling area currency.

Valuation: The transfer pricing functionality is not activated in AKS so the legal valuation is carried out for the transactions.

Activation: PCA is activated from a particular year in this box.



“Screen Shot for Maintain PCA Controlling Area Settings”


Set Control Parameters for Actual Postings.

Menu Path: Implementation Guide for R/3 Customizing Controlling Profit Center Accounting Basic Settings Controlling Area Settings Activate Direct Postings Set control parameters for Actual Postings.

Transaction Code: 1KEF


The settings for Actual postings for controlling area are carried out in this step. The following fields are defined in this screen:



From year: control parameters which should be valid beginning with the fiscal year entered

Lock indicator: If the lock indicator is active, the controlling area is locked for actual postings in Profit Center Accounting. No changes can be made to the actual data.

Line item: The line item indicator determines whether actual line items are updated.

Online transfer: The online indicator controls whether or not data is posted to Profit Center Accounting simultaneously (by activity).

“Screen shot for control parameters for actual postings.”




Analyze Settings

Menu Path: Implementation Guide for R/3 Customizing Controlling Profit Center Accounting Basic Settings Controlling Area Settings Analyze Settings

Transaction Code: 1KE1

The settings can be analyzed in this screen.

“Screen Shot for Analyze Settings for PCA”



Assign Default Profit Center to Accounts

Menu Path: Implementation Guide for R/3 Customizing Financial Accounting (New) Master data Profit Center Assign Default Profit Center to Accounts



E4458 Config Document CO

Documents

controlling area currency

controlling area settings

controlling area menu

area jg10

cost center accounting

cost center categories

cost element accounting

product cost