PDD42 Maintain CO Master Data - Cost Centers v5_sanitized

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Chapter : Maintain CO Master Data Cost Centers (PDD42)

About cost centers 4-3Country Specific Processes 5-5References 6-6Create, change and display a cost center 7-7

Procedure flow: Create Cost Center 8-7Procedure flow: Display a cost center 9-8Procedure flow: Change a cost center 10-8Procedure flow: Delete a cost center 11-8Procedure flow: Block/unblock postings to a cost center 12-9Procedure flow: Display a cost center group 13-9Procedure flow: Delete a cost center group 14-9SAP 15-10ksh2 – Delete a cost center group 16-10Procedure flow: List cost centers 17-10Determine the need for cost center maintenance 18-11Obtain approval to maintain the cost center 19-12Ks01 – Create a cost center 20-13Advise details of maintenance 21-15ksh2 – Change a cost center group 22-16ksh1 – Create a cost center group 23-18ks03 – Display a cost center 24-20ks02 – Change a cost center 25-21ks04 – Delete a cost center 26-22ks02 – Block/unblock postings to a cost center 27-23Ksh3 – Display a cost center group 28-25ksh2 – Delete a cost center group 29-26ks13 – Cost centers: Master data report (4.6C) 30-27

Controlling User GuidePDD42

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Chapter 3: Maintain CO Master Data Cost Centers (PDD42)

About cost centersThis user procedure covers the creation, maintenance, deletion and display of cost centers, the creation, maintenance and display of cost center groups, and the reporting of cost center master data in the Cost Center Accounting (CCA) module of SAP.

New cost centers may be required, for example, in the following situation:

A new client contract is signed or a new support function is established.

Maintenance of an existing cost center may be required, for example, in the following situation:

A reorganisation may occur. The affected cost centers would need to be updated for the new cost center description and responsible person, and also to reflect the cost center’s new position in the hierarchy,.

The naming convention for cost center codes will be as follows:

CCXXXXYY

Where:

CC represents 2 digit Country Code

XXXX represents 4 digit Site Number

YY represents 2 digit Sub-site Number

For example, it is a 2 digit running number for those Sites which have more than one customer contract.

Cost center

A cost center is an area of responsibility within the controlling area for which a separate revenue and cost report can be produced. Revenues and expenses are assigned to cost centers via accounts payable, automatic interfaces, manual journals and cost allocations. Overhead costs are transferred between cost centers using internal allocation methods (assessments).

Cost centers are designed to collect revenues and expenses and report them on an on-going basis at an individual cost center and summarised level (ie. cost center group level). Cost centers are arranged in a hierarchy with the controlling area as the highest level. The next levels contain various reporting nodes, leading down to posting level cost centers. Alternate


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hierarchies can be defined to provide different views of summarised cost center data.

A cost center master record includes data such as:

cost center name,

cost center category,

hierarchy area,

profit center.

Standard SAP reports allow the listing of cost center master data based on predetermined selection criteria.

Cost center groups (Standard hierarchy)

The standard cost center hierarchy consists of a number of linked cost center groups and provides the cost center structure for common reporting and budgeting across the organisation. A cost center group is made up of a number of cost centers related by location, business activity, business operation and business type. Any new cost centers must be assigned to a cost center group in the standard hierarchy.

Cost center groups (Alternate hierarchy)

Cost center groups can also be used to provide a different perspective to the standard cost center hierarchy. Cost center groups can be arranged into a hierarchy to collect expenses and revenue that reflect various management reporting views.

Controlling Area

The first level in the company standard hierarchy is the controlling area. We have one controlling area (SCAU) which allows reporting and cost allocations across all entities within [Client name].


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Country Specific ProcessesAspect (Note Reference)

AU CN SG HK MY KR TH US


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ReferencesDocument

Process Design Documents PDD 00 [Client name] AsiaPac Organisational Settings

Reports

Development Requests


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Create, change and display a cost centerIntroduction

Use the procedures in this topic to create, modify or display a cost center. Associated procedures describe how to create, modify and display cost center groups.

Guidelines

Business policy statement

The following business rules apply to a cost center:

The cost center is the lowest level of responsibility within the organisational structure.

[Client name] revenue and operating costs are posted to cost centers.

All cost centers must be assigned to the lowest node in the standard hierarchy and to a company code, and subsequently postings are validated at entry.

A cost center cannot be assigned between two or more company codes.

The cost center is the lowest level in the hierarchy and therefore in the cost center group.

All cost centers must be included in the standard hierarchy.

All maintenance will be performed centrally by the Accounting Manager

All requests for maintenance will be made via E-mail or Fax

Policy references

Not available.

Procedure flow: Create Cost Center

Note: When commencing processing in SAP, the user will be prompted to enter the controlling area of SCAU. Further entry during the session will not be required.


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Cost centers are created in the SAP database to collect revenues and costs for management reporting purposes.

Type Task

Manual Determine the need for cost center maintenance

Manual Obtain approval to maintain the cost

SAP Ks01 – Create a cost center

SAP ksh2 – Change a cost center group

SAP ksh1 – Create a cost center group

Manual Advise details of maintenance

Procedure flow: Display a cost center

From time to time, it is necessary to view the information held in the database about a cost center.

Type Task

SAP ks03 – Display a cost center

Procedure flow: Change a cost center

From time to time, it is necessary to change the information held in the database about a cost center. It may be, for example, that a cost center needs to be linked to a different part of the management reporting hierarchy, or the description of the cost center needs to be changed.

Type Task



SAP ks02 – Change a cost center


Procedure flow: Delete a cost center

If a cost center is created in error and no transactions have been processed against the cost center, then it is possible to delete the cost center. If transactions have been processed, then a cost center can be blocked from further postings.


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Type Task



SAP


Procedure flow: Block/unblock postings to a cost center

If a cost center is no longer operational and costs are not to be collected, the cost center can be blocked for future postings. If required, the cost center can be unblocked at a later date.

Type Task



SAP ks02 – Block/unblock postings to a cost center


Procedure flow: Display a cost center group

From time to time, it is necessary to view the information held in the database about a cost center group.

Type Task

SAP

Procedure flow: Delete a cost center group

From time to time, it is necessary to delete a cost center group.

Type Task

SAP ksh2 – Delete a cost center group

Procedure flow: List cost centers

From time to time, it is necessary to list the information held in the database about cost centers.

Type Task

SAP ks13 – Cost centers: Master data report (4.6C)


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Determine the need for cost center maintenance

Why To satisfy the management reporting and cost control requirements of [Client name]

Who Finance Director, Sales department or State managers

Before you start

Worksteps1. Determine that maintenance of a cost center is required to achieve the

required management reporting and cost control of [Client name]

2. Raise Cost Center Maintenance Form. The Cost Center Maintenance form is in Appendix A of this document. This form is sent to the Accounting Manager.


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Obtain approval to maintain the cost center

Why To ensure that the maintenance is performed in accordance with [Client name] internal control procedures

Who Accounting manager

Before you start

Make sure you have completed the Cost Center Maintenance form

Worksteps1. Check that the cost center does not already exist.

2. Check, and note on the Cost Center Maintenance form, any associated maintenance that will be required when the cost center is created:

cost center hierarchies

cost assessments

reporting

3. Complete the Cost Center Maintenance form for SAP details eg. Cost center category. Sign the form.

4. Have the Financial Director approve the request by signing the Cost Center Maintenance form.


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Ks01 – Create a cost center

Why Use this SAP procedure to create a cost center.

Who Accounting Manager

Before you start

Menu path Accounting Controlling Cost centers Master data Cost center Individual processing Create

Transaction code

Ks01 – Create a cost center

Screen title Create Cost Center: Initial Screen

Work steps1. Update the required and optional fields:

Field Do this…

Cost center Type the cost center number.

Valid from Type 01.01.1990.

Valid to Type 31.12.9999.

Cost center Type or select the number of the cost center to be used as a source to copy information to the new cost center.

Controlling area Type or select the controlling area of the source cost center.

2. Click .The Create Cost Center: Basic screen displays.

3. Update the required and optional fields:

Field Do this…

Name Type the name of the cost center to be created.Note: Maximum length is 20 characters.


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Field Do this…

Description Type the description of the cost center. Note: Maximum length is 40 characters.

Person responsible

Type the position title of the person responsible for the cost center.

Department Leave blank

Cost center category

Type or select one of the following cost center categories. A for admin and support C for clients S for sales and marketing

Note: The main purpose of this field is for information. In addition the cost center types can be used for specific cost reports.

Hierarchy area Type or select the hierarchy area to define the node in the standard hierarchy to which the cost center will be attached.

Company code Type or select the company code to which the cost center is to be assigned.

Currency Will default from the entered company code.

Profit center Type or select the profit center to which the cost center is assigned.

4. Click to save the cost center. The Cost Center has been created message displays.


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Advise details of maintenance

Why To advise that the requested maintenance has been performed

Who Accounting manager

Before you start

Worksteps1. Advise the appropriate personnel of the new cost center.


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ksh2 – Change a cost center group

Why Use this SAP procedure to change a cost center group.


Before you start

Define which cost center groups are to be changed.

Menu path Accounting Controlling Cost centers Master data Cost center group Change

Transaction code

ksh2 – Change a cost center group

Screen title Change cost center group: Initial Screen


Field Do this…

Cost center group

Type or select the cost center group to be changed.

2. Click .The Change Cost Center group: Structure screen displays.


Field Do this…

Description If required, change the description of the cost center group. Maximum length is 40 characters.

4. Click the Same level to define a new cost center group (node) on the same level as the selected sub/intermediate-level cost center group (not applicable to the top node).


Field Do this…

[New Node Number]

Type the cost center group code for the new node


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Field Do this…

[Description] Enter the description of the cost center group (node).Note: Maximum length is 40 characters.

6. Click to define a new cost center group (node) for the level below the selected sub/intermediate-level cost center group.


Field Do this…

[New Node Number]



8. Click to save the changes to cost center group. The Changes have been saved message displays.


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ksh1 – Create a cost center group

Why Use this SAP procedure to create a cost center group.


Before you start

Define the cost center(s) to be included in the cost center group.

Menu path Accounting Controlling Cost centers Master data Cost center group Create

Transaction code

ksh1 – Create a cost center group

Screen title Create cost center group: Initial Screen


Field Do this…

Cost center group

Type a name for the cost center group to be created.

[Reference] Cost center group

Type or select the cost center group to be used as a source to copy information to the cost center group to be created.

Controlling area Type or select the controlling area of the source cost center group.

2. Click .The Create Cost Center group: Structure screen displays.


Field Do this…

[Description] Type a description for the cost center group.Note: Maximum length is 40 characters.

4. Click the Same level to define a new cost center group (node) on the same level as the selected sub/intermediate-level cost center group (not applicable to the top node).


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Field Do this…

[New Node Number]



6. Click to define a new cost center group (node) for the level below the selected sub/intermediate-level cost center group.


Field Do this…

[New Node Number]



8. Click to save the cost center group. The Changes have been saved message displays.


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ks03 – Display a cost center

Why Use this SAP procedure to display a cost center.


Before you start

Menu path Accounting Controlling Cost centers Master data Cost center Individual processing Display

Transaction code

ks03 – Display a cost center

Screen title Display Cost Center: Initial Screen


Field Do this …

Cost Center Type or select the cost center to be displayed.

2. Click .The Display Cost Center: Basic screen displays. Refer to the procedure Ks01 – Create a cost for details on individual fields in this and subsequent screens.

3. Click to exit the display screen.


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ks02 – Change a cost center

Why Use this SAP procedure to change a cost center.


Before you start

Menu path Accounting Controlling Cost centers Master data Cost center Individual processing Change

Transaction code

ks02 – Change a cost center

Screen title Change Cost Center: Initial Screen


Field Do this …

Cost Center Type or select the cost center to be changed.

2. Click .The Change Cost Center: Basic screen displays. Refer to the procedure Ks01 – Create a cost for details on individual fields in this and subsequent screens.

3. Click to save changes.The Cost Center has been changed message displays.


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ks04 – Delete a cost center

Why Use this SAP procedure to delete a cost center.


Before you start

A cost center can only be deleted if no postings have occurred against the cost center.

Menu path Accounting Controlling Cost centers Master data Cost center Individual processing Delete

Transaction code

ks04 – Delete a cost center

Screen title Delete Cost Center: Initial Screen

Worksteps1. Update the required and optional fields:

Field Do this …

Cost Center Type or select the cost center you want to delete.

Valid from Type 01.01.1990.

Valid to Type 31.12.9999.

Test run Select to perform a test run of the deletion.

2. Click to execute the deletion.


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ks02 – Block/unblock postings to a cost center

Why Use this SAP procedure to block/unblock postings to a cost center.


Before you start

Menu path Accounting Controlling Cost centers Master data Cost center Individual processing Change

Transaction code

ks02 – Block/unblock postings to a cost center

Screen title Change Cost Center: Initial Screen


Field Do this …

Cost Center Type or select the cost center to be changed.

2. Click .The Change Cost Center: Basic screen displays.

3. Click the [Indicator] button.The Create Cost Center: Indicators screen displays.


Field Do this…

Record Quantity Not relevant for blocking

Actual primary costs

The box defaults to unchecked to define if the cost center is active for actual primary or direct cost postings. Note: If the indicator is active no actual primary costs can be posted.

Plan primary costs

The box defaults to unchecked to define if a cost center can receive planned direct costs.Note: If the indicator is active no primary cost planning is possible.


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Field Do this…

Act. Secondary costs

The box defaults to unchecked to define if the cost center is active for secondary cost postings.Note: If the indicator is active no secondary costs can be posted.

Plan secondary costs

The box defaults to unchecked to define if a cost center can receive secondary planned costs.Note: If the indicator is active no secondary cost planning is possible.

Actual revenues The box defaults to checked to block the posting of revenues to a cost center. Note: If the indicator is active no revenues are posted, however if the indicator is inactive the revenues will be posted as statistical transactions.

Plan revenues The box defaults to checked for planned revenues.Note : If active, planned revenues cannot be posted to the cost centers, if inactive planned revenues can be posted as statistical data.

Commitment update

The box defaults to checked to determine if a commitment can update the cost center.Note: If the indicator is active no commitment update is possible.

5.Click to save changes.The Cost Center has been changed message displays.


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Ksh3 – Display a cost center group

Why Use this SAP procedure to display a cost center group.


Before you start

Define which cost center groups are to be displayed.

Menu path Accounting Controlling Cost centers Master data Cost center group Display

Transaction code

Ksh3 – Display a cost center group

Screen title Display cost center group: Initial Screen


Field Do this…

Cost center group

Type or select the cost center group to be displayed.

2. Click .The Display Cost Center group: Structure displays. Refer to the procedure ksh1 – Create a cost center group for details on individual fields in this and subsequent screens.

3. Click to exit the display screen.


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ksh2 – Delete a cost center group

Why Use this SAP procedure to delete a cost center group.


Before you start

Define which cost center groups are to be deleted.

Menu path Accounting Controlling Cost centers Master data Cost center group Change

Transaction code

ksh2 – Delete a cost center group

Screen title Change cost center group: Initial Screen


Field Do this…

Cost center group

Type or select the cost center group to be deleted.

2. Select menu path Group Delete

3. The Delete Cost center group: Initial screen displays. Click and select Yes to delete the cost center group.

4. Click to exit the delete screen.


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ks13 – Cost centers: Master data report (4.6C)

WhoCorporate and Branch Finance Staff

WhyUse this procedure to obtain a master data listing of cost centers.

Before you startNot applicable

Menu pathAccounting Controlling Cost Center Accounting Information System Reports for Cost Center Accounting Master Data Indexes Cost Centers: Master Data Report

Transaction codeks13 (Replaces transaction okw8 in 4.0B)

Screen titleDisplay Cost Centers: Initial Screen

Work steps1. Select one of the following options:

Field R/O Do this ...

Cost center O Type or select the cost center range.

Cost center group O Type or select the cost center group.

Selection variant O Type or select the selection variant.

All cost centers O Click on the radio button.

Parameters

Valid from/To O Type or select the beginning and end dates for the analysis period you are defining.

2. Click .The Display Cost Centers: Basic Screen displays.

3. Click to exit.


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PDD42 Maintain CO Master Data - Cost Centers v5_sanitized

Documents

saved message

start menu

basic screen

master data

cost center

cost center

cost center

cost center