TFIN20_1_EN_Col95_FV_Part_A4_2011

TFIN20_1Management Accounting I

SAP ERP - Financials

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Participant HandbookCourse Version: 95Course Duration: 5 Day(s)Material Number: 50099817

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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

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About This Handbook TFIN20_1

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iv © 2011 SAP AG. All rights reserved. 2010

ContentsCourse Overview ......................................................... vii

Course Goals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii

Unit 1: Overview of Management Accounting ...................... 1General Tasks of Management Accounting ... . . . . . . . . . . . . . . . . . . . . . .2Integration Within Management Accounting and with Other SAP

Applications ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Unit 2: Organizational Units ........................................... 17Components of Management Accounting ... . . . . . . . . . . . . . . . . . . . . . . 18

Unit 3: Master Data ...................................................... 37Cost Centers.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Cost elements .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Activity Types ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64Statistical key figures ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Global Functions For Master Data... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Unit 4: Event-Based Postings........................................ 111Entering Primary Postings ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112Reports in Cost Center Accounting... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124Account Assignment Tools.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138Adjustment postings ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143Direct Activity Allocation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154

Unit 5: Period-End Closing ........................................... 169Accrual Calculation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171Entering Statistical Key Figures... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184Periodic Reposting... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193Cost Allocations ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210Period Lock ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .264

Unit 6: Internal Orders: Overview................................... 271Using Overhead Orders.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272Real and Statistical Orders .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .275The Different Scenarios for Internal Orders .. . . . . . . . . . . . . . . . . . . . .278

2010 © 2011 SAP AG. All rights reserved. v

Contents TFIN20_1

Unit 7: Master Data of Internal Orders ............................. 285Master Data Maintenance ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .286Status Management for Overhead Cost Orders .. . . . . . . . . . . . . . . .295Grouping and Collective Processing ... . . . . . . . . . . . . . . . . . . . . . . . . . . .305

Unit 8: Transaction-Based Postings................................ 317Event-Based Postings Within and Outside Management

Accounting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .318Commitment Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .331

Unit 9: Period-End Closing of the Internal Orders .............. 345Periodic Debit Postings ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .346Periodic Credit Postings ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .361

Unit 10: Planning, Budgeting and Availability Control ......... 383Budgeting and Availability Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .385Introduction to Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .398Planning Options in Overhead Management Accounting... . . . .409Advanced Planning Techniques for Internal Orders .. . . . . . . . . . . .439Planning Aids ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .454

Index ....................................................................... 473

vi © 2011 SAP AG. All rights reserved. 2010

Course OverviewThis course covers master data, process-related postings, period-end closing inOverhead Cost Controlling (cost center accounting and controlling with internalorders), and planning functions.

Target AudienceThis course is intended for the following audiences:

• Solution consultants who are responsible for implementing ManagementAccounting with SAP ERP Financials.

Course PrerequisitesRequired Knowledge

• SAP125 SAP Navigation• TERP01 Introduction to SAP ERP• TERP02 Introduction to SAP NW• TERP22 SAP ERP: Introduction to Processes in Management Accounting

Course GoalsThis course will prepare you to:

• To set up Overhead Cost Controlling with SAP ERP Financials.

Course ObjectivesAfter completing this course, you will be able to:

• Set up Overhead Cost Controlling with SAP ERP Financials. This includesthe posting of actual costs from preceding components, carrying outperiod-end closing, and planning.

2010 © 2011 SAP AG. All rights reserved. vii

Course Overview TFIN20_1

viii © 2011 SAP AG. All rights reserved. 2010

Unit 1Overview of Management Accounting

Unit OverviewThis unit explains the general tasks involved in Management Accounting. It alsoshows how the Management Accounting components interact with one anotherand how Management Accounting itself interacts with other SAP applications.

Unit ObjectivesAfter completing this unit, you will be able to:

• Explain the differences between Management Accounting and FinancialAccounting within SAP solutions

• List some of the Management Accounting functions that can be used tomanage a business

• Explain the most important integration points between ManagementAccounting components

• Explain the major integration points between Management Accounting andother SAP applications

Unit ContentsLesson: General Tasks of Management Accounting ... . . . . . . . . . . . . . . . . . . . . . . .2Lesson: Integration Within Management Accounting and with Other SAPApplications ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2010 © 2011 SAP AG. All rights reserved. 1

Unit 1: Overview of Management Accounting TFIN20_1

Lesson: General Tasks of Management Accounting

Lesson OverviewIn this lesson, we will discuss the differences between Management Accountingand Financial Accounting in SAP solutions. We will talk about the majorcomponents of Management Accounting and show how they interact and howfinancial data flows between them and other components of the SAP system.

Lesson ObjectivesAfter completing this lesson, you will be able to:

• Explain the differences between Management Accounting and FinancialAccounting within SAP solutions

• List some of the Management Accounting functions that can be used tomanage a business

Business ExampleYour initial focus is to gain an understanding of the purpose of ManagementAccounting and how it works with Financial Accounting to provide financialand controlling information.

Financial Accounting vs. Management AccountingAccounting includes many different functions and business processes. The SAPsystem architecture consists of specialized accounting components that servevarious accounting functions.


TFIN20_1 Lesson: General Tasks of Management Accounting

Figure 1: Accounting Architecture

SAP Financial Supply Chain Management concentrates on functions such ascash management, treasury management (for instance, funds, foreign exchange,derivatives, and securities), loans, and market risk management.

Financial Accounting mainly involves the general ledger, processing receivablesand payables, and asset accounting.

Investment Management supports planning, investment, and finance processesfor capital investment measures.

Management Accounting offers many tools that can be used to prepare operatingdata for business analysis and management decisions.



Figure 2: Comparison of Financial and Management Accounting

Management Accounting contains all the functions necessary for effective costand revenue controlling. It covers all aspects of management controlling andincludes many tools for compiling information for company management.

Financial reports used for external reporting purposes (such as balance sheetsand profit and loss statements) are created in Financial Accounting. Similarto the various legal requirements set by the relevant financial authorities, theseexternal reporting requirements are usually prescribed through general accountingstandards, such as Generally Accepted Accounting Principles (GAAP) orInternational Financial Reporting Standard (IFRS).



Figure 3: Internal and External Reporting

Although internal and external users often have different accounting informationrequirements, much of the underlying data is relevant for both purposes but it canbe presented differently to satisfy the different requirements.

Standardized accounting intended for external users is sometimes referred toas financial accounting. Management accounting generally refers to thenon-standardized accounting approach that supports management decision making.

Financial accounting reports that are typically required include the profit and lossstatement and balance sheet. Managerial accounting reports can be structuredindividually, a common example being the plan/actual cost comparison for aspecific department for the current period.

Management Accounting ComponentsManagement Accounting consists of several components, as shown in the figurebelow.

The black arrows between the different Management Accounting componentsdisplay the typical flow of cost and activity quantities (such as working hours)between these components. These costs can be transferred as an overheadallocation to a production order. The costs could also be charged as overhead tothe same production order as working hours, meaning the labor costs could becalculated by multiplying the number of hours by a specific hourly rate.



Figure 4: Management Accounting Architecture

Similarly, costs from Overhead Cost Controlling (CO-OM) and Product CostControlling (CO-PC) can flow into Profitability Analysis (CO-PA), where,together with revenue data, they can be used to calculate operating results, makingit possible to establish how profitable the various area are.

Other SAP applications can post costs or revenues to Management Accounting.Postings to an expense account in Financial Accounting, for example, can causecost postings in CO-OM. In the same way, Financial Accounting can post revenuesdirectly to CO-PA. Cost flows also occur between Financial Accounting andCO-PC, which is where raw material costs incurred in the production process areentered. In addition, there is a flow back into Financial Accounting if productioncosts have been activated as a finished product or WIP (work in process).

Other SAP ERP components, such as SAP ERP Human Capital Management andLogistics (materials management, sales, and production planning) are integratedwith Management Accounting, as can be seen in the logistics process flow(procurement, production, warehouse, and sales) in the Management AccountingArchitecture figure.

The next figure shows several typical functions in the most important areas ofManagement Accounting and illustrates the flow of costs.



Figure 5: Flow of Costs in Management Accounting

The main purpose of Overhead Cost Controlling (CO-OM) is to take costs thatcannot be assigned directly to the goods and services of a company and allocatethem as far as is possible according to their cause. Account assignment objects forsuch costs include cost centers and internal orders, for example. This means thatwithin the planning process it is possible to plan not just costs, but also internalactivities that can then be used to calculate prices for the activity types. If, duringthe course of the year, activities are supplied from the cost centers to other costcenters, or even to the shop floor area of the company, the activities – with theprices valuated – flow to the corresponding receivers (consumers). At the end ofthe period, the overhead cost object balances are calculated and then allocated toProduct Cost Controlling or profitability and sales accounting.

Product Cost Controlling takes the costs for producing goods and services (and,in certain cases, also their sales revenues) and settles them to financial accountingor to profitability and sales accounting.

Profitability and sales accounting is used for enterprise planning. Its main focus,however, is the determination of the actual business profit and loss. Two viewsare always used for this purpose: the external view in the market for analyzingprofitability segments (Profitability Analysis) and the internal view of individualparts of the company responsible for profit (Profit Center Accounting).



Figure 6: Typical Tasks in Management Accounting

The main components of Management Accounting are used for different tasksand types of analysis:

Classify costs and reconcile dataCost Element Accounting classifies the costs and revenues posted toManagement Accounting. It also enables you to reconcile costs betweenManagement Accounting and Financial Accounting.The reconciliation ledger in Cost Element Accounting provides reportingfunctions for identifying the cost and revenue differences betweenFinancial Accounting and Management Accounting. It can also be used forreconciliation postings to Financial Accounting, if necessary.

Control overhead costs and allocate costsOverhead Cost Controlling examines the origin of costs in the functionalareas of an enterprise. Overhead costs include costs that cannot be directlyassigned to a product or a service. It is often difficult to determine whatcauses overhead costs. Activity-Based Costing (ABC) provides you withmore ways to allocate costs.

Evaluate the cost of goods or servicesProduct Cost Controlling is used to cost and evaluate the cost of goodsmanufactured for a product and the costs associated with providing a serviceor when carrying out a project (plan and actual). This component providestools for a comprehensive analysis of the value-adding processes in anenterprise.



Analyze profitProfitability Analysis deals mainly with analyzing the effects of enterpriseactivities on the external market. It enables you to determine how successfulthe enterprise is in different market segments (product divisions, forexample) and how profitability has evolved over a period of time.

Analyze success of individual profit centersProfit Center Accounting analyzes the success of the profit centers in theenterprise. It can be used to represent the internal market in the enterprise,particularly if multiple valuation approaches and transfer prices are used.



Lesson Summary

You should now be able to:• Explain the differences between Management Accounting and Financial

Accounting within SAP solutions• List some of the Management Accounting functions that can be used to

manage a business


TFIN20_1 Lesson: Integration Within Management Accounting and with Other SAP Applications

Lesson: Integration Within Management Accounting andwith Other SAP Applications

Lesson OverviewThis lesson uses cost allocations to show the interaction among the ManagementAccounting components, and describes how Management Accounting interactswith other SAP applications in SAP ERP, such as procurement and LogisticsExecution, production, sales, and service. You will see how ManagementAccounting draws its strength from an integrated view of all relevant data fromobjects such as sales orders that bear revenues or costs.


• Explain the most important integration points between ManagementAccounting components

• Explain the major integration points between Management Accounting andother SAP applications

Business ExampleBefore you can implement Management Accounting successfully, you need tounderstand the flow of costs that have a direct impact on Management Accounting.

Flow of Values Within Management AccountingCosts incurred in one part of the enterprise are often passed on to a different partof the enterprise. For example, you can pass overhead costs from administrativecost centers to production cost centers. Overhead costs are then passed on toproduction processes. These direct services and processes are assigned, togetherwith the direct material consumption, to specific orders for specific products andservices that are then made available to the customer.

Because other SAP applications generate data that has a direct impact onManagement Accounting, there must be a mechanism in place for passing thisdata to Management Accounting. This mechanism is Cost and Revenue ElementAccounting.

If you purchase non-stock material, an expense is posted to the FinancialAccounting general ledger via the G/L account. At the same time, the expense isposted as costs to the appropriate cost center using a primary cost element. The



costs from this cost center can later be passed on to a production cost center asoverhead costs using a secondary cost element. It is not appropriate to representthis secondary cost flow for the overhead costs in Financial Accounting.

Values flow between the Management Accounting components for many differentpurposes.

Within the Overhead Cost Controlling area, costs can be posted to cost centers,internal orders, and processes from other SAP R/3 applications (external costs).Cost centers can then allocate costs to other cost centers, to orders, and toprocesses in Activity-Based Costing. Activity-Based Costing, in turn, can passcosts to cost centers and orders. Internal orders can settle costs to cost centers andto processes in Activity-Based Costing (as well as to other orders).

Figure 7: Flow of Values Within Management Accounting

Central cost flows can exist between Overhead Cost Controlling and ProductCost Controlling. Cost objects (such as production orders) can receive directcost postings from Financial Accounting (assignment of invoice receipt to a costobject), costs from cost centers (if production activities are carried out or fromoverhead accounting), costs calculated from internal orders, and costs allocatedfrom Activity-Based Costing processes.

Profitability Accounting components also are tightly integrated with OverheadManagement and Product Cost Controlling. Profit Center Accounting receivesstatistical cost postings from all other Management Accounting components.



In addition to direct postings from Financial Accounting, Profitability Analysiscan receive cost assessments from cost centers and Activity-Based Costingprocesses, settlements of cost from internal orders, and production variancessettled from cost objects.

Flow of Values with Other SAP ApplicationsData created in other SAP applications can have a direct influence on ManagementAccounting. For example, if a non-stock item is purchased, an expense is postedto the general ledger. This expense is also posted as costs to a cost center or otherManagement Accounting object for which the item was purchased. That costcenter's costs can be passed on later as overhead to a production cost center, orelsewhere in Management Accounting.

Figure 8: Integration with Other SAP Applications

Financial Accounting in SAP ERP is a primary source of data for ManagementAccounting. In fact, most expense postings in the general ledger result in a costposting in Management Accounting. These expense postings to the general ledgercan be journal postings, vendor invoices, or depreciation postings from AssetAccounting or other SAP system components.

Revenue postings also result in postings to Management Accounting, ProfitabilityAnalysis (CO-PA), and Profit Center Accounting. Both expense and revenuepostings from Financial Accounting must specify one or more objects inManagement Accounting that will receive the cost or revenue data.



Several situations will cause Management Accounting to create postings inFinancial Accounting. These situations include reconciliation postings initiated bythe reconciliation ledger in Management Accounting, inventory postings causedby the delivery of finished goods from production, and settlement of capital costsfrom the creation of fixed assets.

SAP ERP Human Capital Management can generate different types of costposting in Management Accounting. SAP ERP HCM offers you the opportunity toallocate labor costs to various controlling objects. In addition, planned personnelcosts can be transferred and used for Management Accounting planning.

The Logistics area also has numerous integration points with ManagementAccounting. In the inventory area of materials management, a goods issuetransaction can create a cost posting in Management Accounting to whicheverobject is specified (for example, cost center, production order, or internal order).Looking from the other direction, Management Accounting can cause a postingto inventory (in materials management) resulting from the delivery of finishedgoods from production. In addition, product cost estimates created in ManagementAccounting can update price fields in material master records. Finally, the creationof purchase orders in materials management can generate commitment postingswithin Management Accounting.

The manufacturing area of Logistics also works very closely with ManagementAccounting. Bills of material and routings, which are created in manufacturing,can be used in Product Cost Controlling in Management Accounting. In addition,manufacturing production orders are cost objects used to track and controlproduction costs in Cost Object Controlling.

Sales order management is a primary source for revenue postings from billingdocuments to Management Accounting. A sales order in Sales order managementcan also be used with the make-to-order production scenario in ManagementAccounting to track costs and revenues and evaluate the profitability of thearrangement.



Lesson Summary

You should now be able to:• Explain the most important integration points between Management

Accounting components• Explain the major integration points between Management Accounting and

other SAP applications


Unit Summary TFIN20_1

Unit SummaryYou should now be able to:• Explain the differences between Management Accounting and Financial

Accounting within SAP solutions• List some of the Management Accounting functions that can be used to

manage a business• Explain the most important integration points between Management

Accounting components• Explain the major integration points between Management Accounting and

other SAP applications


Unit 2Organizational Units

Unit OverviewThis unit provides a basic explanation of the structure of Management Accounting.It also shows the settings that are necessary to define the controlling area.


• Describe the organizational units on which Management Accounting is based• Explain the options available for configuring organizational units in

Overhead Cost Controlling

Unit ContentsLesson: Components of Management Accounting ... . . . . . . . . . . . . . . . . . . . . . . . 18

Exercise 1: Organizational Units .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29


Unit 2: Organizational Units TFIN20_1

Lesson: Components of Management Accounting

Lesson OverviewYou will become familiar with the organizational units that are the basis ofManagement Accounting. We will explain the options available for configuringorganizational units in Overhead Cost Controlling.


• Describe the organizational units on which Management Accounting is based• Explain the options available for configuring organizational units in


Business ExampleYou invite the Financial Accounting project team to a meeting on theorganizational structure of accounting within the IDES group.

Although your focus is Overhead Cost Controlling, you need to discuss accountingas a whole in order to understand the way the different application componentsare linked.

You also need to discuss the configuration options available for Overhead CostControlling, and the specific settings that are recommended to determine theoptimum structure for your enterprise.


TFIN20_1 Lesson: Components of Management Accounting

Financial Accounting and Management Accounting:Standard versus Flexibility

Figure 9: Financial Accounting and Management Accounting: Standardversus Flexibility

The mySAP ERPManagement Accounting application component contains allaccounting functions necessary for effective controlling. If a company dividesits accounting into internal and external accounting, Management Accountingis internal accounting since it provides those responsible for managing andcontrolling the company's operations with necessary information. CO provides allcontrolling options and is not restricted by legal requirements.

In Financial Accounting companies need to create financial statements such asbalance sheets and profit and loss statements. This external reporting has to be inline with standards and certain legal requirements.



Components of Management Accounting

Figure 10: Components and Value Flows in Management Accounting

Management Accounting provides information that management can use tomake decisions. It facilitates the coordination, supervision and optimization ofall processes within a company. This involves recording both the consumption ofproduction factors and the services provided by an organization.

Any data that is relevant to costs flows automatically from Financial Accountingto Management Accounting. Costs and revenues are assigned to different COaccount assignment objects such as cost centers, business processes, projects,or orders. These Financial Accounting accounts are managed in ManagementAccounting as cost or revenue elements.

You use Cost Center Accounting for controlling purposes in your organization.It is an ideal means of monitoring overhead costs and assigning them to theorganizational units that incurred the costs.

Product Cost Controlling calculates the costs incurred when a service is providedor a product is manufactured. It enables you to calculate the minimum price atwhich a product can be profitably marketed.

Profitability Analysis analyzes the profit or loss of an organization according toindividual market segments. In Profitability Analysis, costs are assigned to therevenues of each market sector. This gives you a basis for calculating prices,targeting customers, determining conditions, and choosing sales channels, forexample.



Overhead costs are costs that cannot be directly assigned to the manufacture ofa product, or the provision of a particular service. You assign all overhead coststo the locations at which they were incurred, or to the activities from which theyarose.

Cost centers are separate areas within a controlling area at which costs areincurred. You can create cost centers according to various criteria includingfunctional considerations, allocation criteria, activities provided, or according totheir physical location and/or management area.

An activity type defines the type of activity that can be provided by a cost center.Activity outputs supplied by one cost center (the sending cost center) to other costcenters, orders, or processes, represent the utilization of resources for this sendingcost center. You valuate activities using a price calculated on the basis of certainbusiness or management information.

Business processes combine activity flows within an organization acrossindividual cost centers. Business processes can be used to control organizationalprocesses in line with particular functions.

Internal orders are used to plan, collect, and analyze the costs arising frominternal activities.

There are different methods for allocating values and quantities, depending onthe type of Management Accounting object. In an enterprise scenario in whichonly costs are allocated, at period end you can use plan/actual comparisons toanalyze costs. When allocating quantities, you can use extended analysis tools atperiod end, which take operating rate into account.



Organizational Units

Figure 11: Organizational Units

The operating concern is the highest reporting level for profitability and sales andmarketing controlling, and the central organizational unit in Profitability Analysis(CO-PA) used to segment and structure the market.

Controlling areas structure the internal accounting operations of an organizationwithin Management Accounting. They represent closed units that are used tocalculate costs. All internal allocations relate solely to objects that belong to thesame controlling area.

Company codes are independent accounting units within Financial Accounting.They represent the smallest organizational units for which an account groupcan be set up for the purposes of external reporting. The process of externalreporting involves recording all relevant transactions and generating all supportingdocuments for financial reports (such as balance sheets and profit and lossstatements).

The business area is an organizational unit within Financial Accounting thatrepresents a particular level of operations and managerial area within a company.You can assign Financial Accounting transactions to a particular business area. InFinancial Accounting you can generate internal balance sheets and profit and lossstatements on the basis of business areas.



The plant is an organizational unit within Logistics. It is used to break anorganization down according to production, procurement, plant maintenance,and material planning considerations. Plants are used in Materials Management,Logistics, and Production Planning and Control. In a plant either materials orgoods are manufactured, or services are provided.

Customizing Controlling Area

Figure 12: Customizing Controlling Area

The controlling area is the organizational unit within a company for whichcomplete, closed cost controlling can be carried out. You cannot allocate costsoutside of controlling areas.

The controlling area “0001” is created in the SAP standard version. You canuse these as copy templates.

The settings you make for your controlling areas must reflect the organizationalcontrolling structure of your company.

A controlling area may contain more than one company code and these companycodes can include more than one currency. However, the company codes assignedto a controlling area must all use the same operational chart of accounts.

The control indicator can be used to activate or deactivate certain controllingcomponents and functions for a fiscal year.



Assignment of Organizational Units

Figure 13: Assignment of Organizational Units

Since mySAP ERP is a fully integrated system, you need to assign organizationalunits to each other across the different application components. You thereforeneed to define the internal and external organizational units concurrently andassign them to each other.

Having created the controlling area and the operating concern you then definetheir assignment. You can assign more than one controlling area to a givenoperating concern, enabling you to analyze these controlling areas together withinthe operating concern.

You can link company codes and controlling areas to each other in differentways in accordance with the way your enterprise is structured.

• If Financial Accounting and Controlling perspectives are identical, you canassign one company code to one controlling area.

• If you assign more than one company code to a given controlling area, youare then able to carry out controlling on a cross-company code basis.

You assign a plant to a company code and therefore also to a controlling area,based on the valuation level. You can assign one plant, multiple plants, or noplant at all to a company code.

Changes to assignments are not a problem provided you have not created anymaster data or transaction data.



Figure 14: 1 : 1 Assignment

Here you see a structure in which the financial and cost accounting views areidentical and the controlling area is the same as the company code.

You can use the following three currencies in Management Accounting to performevaluations in the information system:

Controlling area currencyIf you are using a 1:1 assignment, (that is, if your controlling area andcompany codes are identical), the controlling area currency must be the sameas the company code currency. The controlling area is then managed inthe controlling area currency.

Object CurrencyAn object currency is defined for each account assignment object inManagement Accounting. When using a 1:1 assignment, an object currencythat is different to the controlling area or company code currency can bedefined for the account assignment object.

Transaction currencyThe currency in which a document is posted to Management Accountingis the transaction currency.

You have to use the same chart of accounts in Management Accounting and inthe assigned company code.

While the fiscal year variants of the company code and controlling area cancontain different numbers of special periods, they must have the same number ofposting periods. Furthermore, the period limits of the fiscal year variants must be



identical. You can use special periods in Financial Accounting to correct postingsfor year-end closing or to perform revaluations. If four special periods have beenset up in Financial Accounting but only one in Management Accounting, thepostings of the second, third and fourth special period in Financial Accounting areposted in the first period in Management Accounting. If no special periods exist inManagement Accounting, Financial Accounting postings for the special period areposted in the last Management Accounting posting period.

Figure 15: 1:n Assignment

By assigning multiple company codes to a controlling area, you can performcross-company code cost accounting. You can allocate costs in ManagementAccounting to more than one company code. If this is the case, you may need tocarry out reconciliation postings, which you can do using the reconciliation ledger.

There are three currencies available for your evaluations:

Controlling area currencyIn cross-company-code cost accounting, the controlling area and companycodes may possess different currencies. You can define a controlling areacurrency that is identical to one of the company code currencies. You canalso use an additional currency in Management Accounting.

Company code currencyIn cross-company code cost accounting, you are only free to choose an objectcurrency if all the assigned company codes have the same currency and thisis the same currency as the controlling area currency. If this is not the case,the object currency in the account assignment object will automatically bethe company code currency.



Transaction currencyThe currency in which a document is posted to Management Accountingis the transaction currency.

The operational chart of accounts is used in both Financial Accounting andcost and revenue accounting. As well as an operational chart of accounts, eachcompany code can have a country-specific chart of accounts with alternativeaccount numbers. This country-specific chart of accounts is structured accordingto the legal requirements of the country it refers to.

The fiscal year variants of a controlling area and company code can have differentnumbers of special periods. The number of posting periods must be the same.

1:1 or 1:n Assignment?

• When is a 1:n assignment advisable/necessary?

– If you require cross-company code reporting– If you require cross-company code postings such as activity allocations

or assessments, for example– Where logistical considerations make it necessary (production in an

associate plant)– Where a calculated value is to be spread over more than one company

code– If profit centers cover more than individual company codes

When should I create a controlling area for more than one company code?

Where the logistics of your company set up make it necessary to implementcross-company code processes (production in an associate plant). Where groupcosting is required. Where multi-level production cost management is required.Where you require cross-company code postings, for example, to allocateactivities, activate internal activities, or for assessments. Profit Center Accountingand transfer prices stop at controlling area level.

What restrictions do I need to take into account if I set up one controllingarea only?

In addition to the restrictions mentioned on the slide for the chart of accounts,currency, and the fiscal year variant, you also need to note that you can onlyperform the closing in Management Accounting after the final closing has beenperformed in Financial Accounting. From an organizational point of view, therecan be only one Management Accounting manager for the company codes that arecombined. The volume of data for one controlling area can be very considerable,meaning that performance may suffer as a result. If you use one controlling area,only one operating concern is possible, meaning that characteristics and valuefields must be sufficient for all company codes. Automatic reconciliation postingsare possible for cross-company code allocations only minus tax. It follows that tobe able to use the function, the company codes must belong to a taxable entity.



Changes to the assignment should not be a problem provided you have notcreated any master data or transaction data. In a productive system, combiningcompany codes that were previously separate in a controlling area, or splitting acontrolling area (1:n) into several new controlling areas necessitates conversionof data.

Figure 16: Organizational Structures in Controlling: IDES

For the IDES Group, we have created one operating concern, IDEA. The mySAPERP system collects the group's global results, which can then be evaluated in theprofitability analysis application component using various evaluation criteria.

The internal accounting requirements of the IDES Group are met using differentcontrolling areas. Both kinds of CO scenarios are used, that is, scenarios withcross-company code controlling areas as well as scenarios where the companycode and the controlling area are the same.

Internal accounting for most of the Group's European companies is performed incontrolling area 1000. This enables the Group to use cross-company code costaccounting for the companies assigned to this controlling area. This is possiblebecause all the companies use the same chart of accounts and the same numberof posting periods.

In the French subsidiary, however, a decision has been made to use thecountry-specific chart of accounts as the operational chart of accounts. For thisreason, a separate controlling area is required for the French subsidiary.



Exercise 1: Organizational Units

Exercise ObjectivesAfter completing this exercise, you will be able to:• Display the company codes which are assigned to controlling area 1000.• Check which control parameters are currently active in the controlling area.• Explain various settings in the controlling area.

Business ExampleA new department has been set up in one of the IDES European subsidiaries. Thisdepartment is responsible for advising and consulting companies in the installationand application of software.

Task 1:Your consulting company is assigned to the controlling area 1000-CO Europe. Arange of settings have already been made for this controlling area and you wouldlike to check them.

1. Which assignment control (controlling area: company code 1:1 or 1:n ) hasbeen set in the basic data?

Continued on next page



2. Use the F1 key to call up more detailed information on the fiscal year variant.Must the number of special periods in the company code and controllingarea be identical?

3. Check whether the cost and profit center accounting and commitmentsmanagement components are active in controlling area 1000.

4. How many company codes are assigned to controlling area 1000?

Task 2:Carry out the following task:

1. Another company would like to newly implement Management Accounting.There is currently only one company code, meaning that the enterprisewould be displayed using a 1:1 assignment. However, it can be seen thatthe enterprise will expand strongly, including abroad. Consequently, thecompany will have to integrate new company codes into the controlling area.Which assignment control and currency (type) settings should you use thatwill enable new company codes to be assigned to the controlling area ata later date?

Hint: In the following exercises, you will be working in Customizingand in various applications. To facilitate your work, you have theoption of opening several system windows (sessions), by choosingSystem → Create Session. You can switch between sessions at anytime.

Hint: Optimize user-friendliness by adding the frequently used menupaths to your favorites. (using drag and drop or transaction codes)



Solution 1: Organizational UnitsTask 1:Your consulting company is assigned to the controlling area 1000-CO Europe. Arange of settings have already been made for this controlling area and you wouldlike to check them.

1. Which assignment control (controlling area: company code 1:1 or 1:n ) hasbeen set in the basic data?

a)

Hint: The following menu path abbreviations are used inthis solution set:

Customizing path: (transaction code SPRO)

IMG: Tools → Customizing → IMG → Execute Project →SAP Reference IMG

Path for Cost Center Accounting Application:

Cost Center Accounting: SAP menu → Accounting →Controlling → Cost Center Accounting

b) Menu path for task 1

IMG: Controlling → General Controlling → Organization → MaintainControlling Area

c) Solution to task 1-1

Select the controlling area 1000 and call up the detail screen usingGoto Details. This controlling area allows cross-company code costaccounting.

2. Use the F1 key to call up more detailed information on the fiscal year variant.Must the number of special periods in the company code and controllingarea be identical?

Answer: It is also possible to go from here to the expense reports. Thenumber of posting periods must be the same. The period limits in the fiscalyear variants must also be identical.

3. Check whether the cost and profit center accounting and commitmentsmanagement components are active in controlling area 1000.

Answer: In controlling area 1000, switch to the activate components/controlindicators view. Cost Center Accounting, Profit Center Accounting andcommitment management components are active.




4. How many company codes are assigned to controlling area 1000?

Answer: In controlling area 1000, switch to the Assign Company Code(s)view. Over 70 company codes are assigned to controlling area 1000.


1. Another company would like to newly implement Management Accounting.There is currently only one company code, meaning that the enterprisewould be displayed using a 1:1 assignment. However, it can be seen thatthe enterprise will expand strongly, including abroad. Consequently, thecompany will have to integrate new company codes into the controlling area.Which assignment control and currency (type) settings should you use thatwill enable new company codes to be assigned to the controlling area ata later date?

Hint: In the following exercises, you will be working in Customizingand in various applications. To facilitate your work, you have theoption of opening several system windows (sessions), by choosingSystem → Create Session. You can switch between sessions at anytime.

Hint: Optimize user-friendliness by adding the frequently used menupaths to your favorites. (using drag and drop or transaction codes)

a) You must set the assignment control in the controlling area toCross-Company Code Cost Accounting, even though you initially wantto assign only one company code. The currency type setting determineswhat currency is used in the controlling area. You should choosecurrency type 20 (controlling area currency) or currency type 30 (groupcurrency) so that other company codes that are added later can use theirown local currency for their accounting operations.



Lesson Summary

You should now be able to:• Describe the organizational units on which Management Accounting is based• Explain the options available for configuring organizational units in




Unit SummaryYou should now be able to:• Describe the organizational units on which Management Accounting is based• Explain the options available for configuring organizational units in



TFIN20_1 Test Your Knowledge

Test Your Knowledge

1. The currency of the controlling area must always be the same as the currencyof the company code.Determine whether this statement is true or false.□ True□ False

2. In 1:n assignments, the operational charts of accounts in all assignedcompany codes and in the controlling area must be the same.Determine whether this statement is true or false.□ True□ False


Test Your Knowledge TFIN20_1

Answers

1. The currency of the controlling area must always be the same as the currencyof the company code.

Answer: False

In cross-company code assignments, every company code can be processedin its own currency. You are free to select the controlling area currency.

2. In 1:n assignments, the operational charts of accounts in all assignedcompany codes and in the controlling area must be the same.

Answer: True

The charts of accounts must be the same.


Unit 3Master Data

Unit OverviewThe standard hierarchy is presented as an organizational structure of the costcenters. The participants learn how to create cost centers and to distinguishbetween general ledgers and cost elements.

They create cost elements, activity types and statistical key figures and updatethem using individual and collective processing. We show how master data can bechanged in a time-dependent way and added into other groups.


• Describe how to best structure the standard hierarchy• Create cost centers• Understand the meaning of the cost center category.• Distinguish between G/L accounts and cost elements• Create cost elements in Management Accounting, and explain alternative

methods for creating them• Create activity types.• Plan manual prices for the activity types on different cost centers• Create statistical key figures• Update master data in collective processing• Explain the time dependencies of master data• Create master data groups and explain how they are created

Unit ContentsLesson: Cost Centers .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Exercise 2: Cost Centers .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Lesson: Cost elements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Exercise 3: Cost elements .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Lesson: Activity Types ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Exercise 4: Activity Types ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67


Unit 3: Master Data TFIN20_1

Lesson: Statistical key figures... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Exercise 5: Statistical key figures ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Lesson: Global Functions For Master Data ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83Exercise 6: Global Functions For Master Data ... . . . . . . . . . . . . . . . . . . . . . . . 89


TFIN20_1 Lesson: Cost Centers

Lesson: Cost Centers

Lesson OverviewHere you will familiarize yourself with the standard hierarchy as an organizationalstructure. You will create cost centers. The relationship between cost center - costcenter category is explained.


• Describe how to best structure the standard hierarchy• Create cost centers• Understand the meaning of the cost center category.

Business ExampleThe manager of the Controlling department outlines the cost center structure of theorganization, together with the respective management areas. You are to representthis structure in the system as a standard hierarchy. You have to assign each costcenter to this structure to portray your enterprise entirely.

Master Data and Transaction Data

Figure 17: Master Data and Transaction Data

In Overhead Cost Controlling, there is a distinction made between master data andtransaction data.

Master data contains information that remains the same over a long period oftime.

Transaction data is short-lived and is assigned to master data.



Cost elements describe the origin of costs. Cost elements are defined as primaryor secondary. Primary cost elements are elements used in production that areprocured from outside the company. Secondary cost elements are elements used inproduction that are produced within the company itself.

Cost centers define areas of responsibility that incur and influence costs.

Activity types are production activities and services provided to the organizationby a cost center. They are used for allocating costs of internal activities to theareas that incurred the costs.

Statistical key figures, which are values that describe a cost center, are used as abasis for allocations (for example, distribution, assessment) and for performingkey figure analysis.

The Organizational Structure of the Standard Hierarchy

Figure 18: The Organizational Structure as a Standard Hierarchy

Before you can create cost centers, you must first define a standard hierarchy.Specify the name of the standard hierarcy when you create the controlling area.

The standard hierarchy is a structure to which all cost centers within thecontrolling area must be assigned. How you define your structure is generallyup to you. We would, however, recommend you define the structure so that itreflects the internal areas of responsibility and the controlling and decision-makingstructures within your organization. These are usually the same as the internalfunctional areas depicted in your company's organization chart.



Figure 19: Cost Centers and the Standard Hierarchy

The cost center is the location where the costs are incurred. Cost centers can beset up based on functional requirements, allocation criteria, activities or servicesprovided, geographic location and/or areas of responsibility.

For the purposes of Overhead Cost Controlling, cost centers are grouped togetherin decision, control, and responsibility units. To map this structure, you createthe cost center standard hierarchy.

Each level or node of the standard hierarchy is a cost center group. As ofRelease 4.6, you can assign cost centers and nodes to one hierarchy level.

You can create or change cost centers either using the relevant menu entry ordirectly in the standard hierarchy maintenance function.

Cost centers that are created or changed from within the standard hierarchy havethe status Inactive, that is, they are not handled as account assignment objects inManagement Accounting. The assignments can only be checked and the costcenter released once the cost center is active.

If you want to assign a cost center to another hierarchical level, you can do this inthe standard hierarchy maintenance by a simple reassignment of the cost center.In other words, you do not need to make changes to your cost center master data.



You can change the assignments of the organizational units, company code,business area, or profit center during the course of a fiscal year only if thefollowing conditions hold:

• The currency of the new company code is the same as the currency of the oldcompany code.

• You have only posted planning data in the fiscal year.• The cost center is not assigned to a fixed asset, work center, or HR master

record.

Cost center categories

Figure 20: Cost center categories

The cost center category is an indicator in the cost center master data, whichspecifies the category for the cost center. Examples include administration,production, or sales & distribution. You can use your own cost center categories,or use those supplied by SAP.

Cost center categories enable you to assign the same characteristics to similar costcenters. For example, you can allow particular activity types only for particularcost centers. This is useful to prevent production activites from being posted toadministrative cost centers by mistake. You can also use the cost center categoryfor cost calculation, where it controls what percentage of the overheads apply tothat cost center category.



In Customizing, you can define lock indicators for each cost center category, orspecify that the managing of quantities on cost centers is allowed. When youassign a cost center to a particular category (you do this when creating the costcenter), the corresponding lock indicators and allowed values for this category areproposed as default values for this cost center.

Figure 21: Exercise Tasks: Structuring the Example Enterprise





Exercise 2: Cost Centers

Exercise ObjectivesAfter completing this exercise, you will be able to:• Display the standard hierarchy.• Create cost centers for the consulting department.

Business ExampleThe organizational structure of your consulting department is already mapped inthe standard hierarchy of the controlling area. You now need to assign the six costcenters that you have reserved for the consulting department to the correspondinghierarchy nodes.



Task 1:

Figure 22: Standard hierarchy of the consulting department

1. Display the standard hierarchy of your company and check that the nodescorrespond to those in the above graphic.

Task 2:Create cost centers for the consulting department. The cost centers should be validfrom the first day of the current fiscal year until the default valid to date. Assignall the cost centers to the German subsidiary (Company code 1000).

1. Create the cost centers Telephone, Organization, IT Services and FI/COConsulting directly in the standard hierarchy. Use the above graphic asa guide. When you create the master data for each cost center, use thefollowing information:




Figure 23: Data for creating the cost center master data

2. To keep data input to a minimum, create the cost center “Motor Pool”by copying the cost center “IT Services” and use the cost center “ FI/COConsulting” to create the cost center “LO Consulting” . Even though youcan do this directly in the standard hierarchy, try using the menu entries inthe application menu.

Remember to change the name of the cost center and the person responsibleeach time.





3. Display one of the cost centers. Which currency does the cost center use?Where does this entry in cost center master data originate from?

4. Display the control indicator for the cost center you have called up. Wheredoes this information come from? Can this information be changed in themaster data?

5. Because all your cost centers are located in controlling area 1000 and usethe object currency EUR, you don’t want to see this information on theoverview screen in the standard hierarchy.



Solution 2: Cost CentersTask 1:

Figure 25: Standard hierarchy of the consulting department

1. Display the standard hierarchy of your company and check that the nodescorrespond to those in the above graphic.

Answer: Cost Center Accounting: Master Data → Standard Hierarchy →DisplayThe organizational structure of the consulting department appears undernode H-AC405. Expand the individual nodes under your group SERV##and then expand B##.

Task 2:Create cost centers for the consulting department. The cost centers should be validfrom the first day of the current fiscal year until the default valid to date. Assignall the cost centers to the German subsidiary (Company code 1000).

1. Create the cost centers Telephone, Organization, IT Services and FI/COConsulting directly in the standard hierarchy. Use the above graphic asa guide. When you create the master data for each cost center, use thefollowing information:





a) Cost Center Accounting: Master Data → Standard Hierarchy →Change

b) Place your cursor on the hierarchy area B10## to which the cost centeris to be assigned and choose Edit → Create Cost Center

Field Name or Data Class Values

Cost Center 101##

Valid from 01.01. Current fiscal year

To 31.12.9999

Description Telephone

Personal Responsible Smith

Cost center category 9

Choose "Organization" to enter the data on the organizational units.


Company Code 1000

Business Area IS##

Profit Center 1402

Save your data!

Repeat the procedure to create the rest of the cost centers.

Bear in mind that they may be assigned to different areas of thehierarchy.




2. To keep data input to a minimum, create the cost center “Motor Pool”by copying the cost center “IT Services” and use the cost center “ FI/COConsulting” to create the cost center “LO Consulting” . Even though youcan do this directly in the standard hierarchy, try using the menu entries inthe application menu.

Remember to change the name of the cost center and the person responsibleeach time.


a) Cost Center Accounting: Master Data → Cost Center → IndividualProcessing → Create

b)


Cost Center 203##


To 31.12.9999

Template 202##

Controlling Area 1000

On the basic data screen, change the name of the cost center and that ofthe manager (person responsible)


Description Motor pool

Employee responsible Rose

Save your data!

Proceed as for cost center 302##. Use cost center 301## as a template.




3. Display one of the cost centers. Which currency does the cost center use?Where does this entry in cost center master data originate from?

Answer: Cost Center Accounting: Master Data → Cost Center →Individual Processing → DisplayEnter a cost center you created. In this case, the object currency is takenfrom the company code. The local currency in company code 1000 is EUR.

4. Display the control indicator for the cost center you have called up. Wheredoes this information come from? Can this information be changed in themaster data?

Answer: Click the Control tab page. Control indicators are default valuesthat are taken from the cost center category and which can be changed inthe master data.

5. Because all your cost centers are located in controlling area 1000 and usethe object currency EUR, you don’t want to see this information on theoverview screen in the standard hierarchy.

Answer: Cost Center Accounting: Master Data → Standard Hierarchy →Change → Column Configuration iconDeselect the indicator for the company code and the object currency.



Lesson Summary

You should now be able to:• Describe how to best structure the standard hierarchy• Create cost centers• Understand the meaning of the cost center category.



Lesson: Cost elements

Lesson OverviewYou will familiarize yourself with the relationship between general ledgers inFinancial Accounting and in Management Accounting.

You will learn how to create cost elements manually and automatically.


• Distinguish between G/L accounts and cost elements• Create cost elements in Management Accounting, and explain alternative

methods for creating them

Business ExampleYou receive a message from Financial Accounting informing you that thecompany codes are set up. You can now start creating corresponding cost elementsin Management Accounting.

The Chart of Accounts

Figure 28: The Chart of Accounts


TFIN20_1 Lesson: Cost elements

The chart of accounts contains all the general ledger (G/L) accounts belonging toFinancial Accounting.

From the cost controlling viewpoint, a circular system exists because the expenseand revenue accounts in Financial Accounting correspond to primary cost andrevenue elements in Management Accounting, and because postings in FinancialAccounting are passed on in real-time to Cost and Revenue Element Accounting.

In addition, it is only in Management Accounting that you can create secondarycost elements. These are used to record internal value flows like activityallocations, assessments and settlements.

The Cost Element

Figure 29: The Cost Element

Due to the integrated nature of the mySAP ERP system you need to create expenseaccounts in Financial Accounting with corresponding primary costs elements inControlling. This ensures that expenses in Financial Accounting and primary costsin Management Accounting can be reconciled. You must create the primary costelements in Financial Accounting as G/L accounts before you can create themin Management Accounting.

To be able to post to a primary cost element, you require an object inManagement Accounting (such as a cost center) to identify the origin of the costs.Examples of primary cost elements are material costs and salary costs.



Secondary costs elements are used exclusively in Management Accounting toidentify internal cost flows such as assessments or settlements. They do not havecorresponding general ledger accounts in Financial Accounting and are defined inManagement Accounting only.

When you analyze revenues in cost controlling, the mySAP ERP system recordsthem as revenue elements. Revenue elements are primary cost elements.

When you create a cost element, you must assign a cost element category. Thisassignment determines the transactions for which you can use the cost element.For example, category 01 (general primary cost elements) is used for the standardprimary postings from Financial Accounting or Materials Management.

Figure 30: Automatic Creation of Cost Elements

You can create cost elements automatically. You provide the default settingsthrough which the cost element or the cost element range that you want to create isgiven and enter the cost element types for the cost elements.

Primary costs are only created when the respective general ledger exists in theoperational chart. The SAP system takes the cost element name from the G/Laccount master data in Financial Accounting. However, you can change the namein Management Accounting.

As of Release 4.6, when processing the operational chart directory in FinancialAccounting Customizing, you can customize whether creating a general ledgerautomatically generates a cost element. If you use this function, you must takeinto account the account number within the framework of the pre-settings for theautomatic creation of cost elements.

Secondary cost elements are generated for all cost elements you have defined.The description is taken from the cost element category.

Once you have entered your default settings, a background session starts thatgenerates the cost elements.



Figure 31: Business scenario

The overview above displays the enterprise organization from your exerciseactivities. Here the portrayal of the method used for crediting cost centers seemsto be too early. However, it is useful to provide a preview at this stage. To makean assessment or to allocate activity directly, you need secondary cost elements.As you can see above, some of the cost centers in the exercise scenario will useassessment to make credits, or will allocate activity directly.

This overview shows you why (!) you create which secondary cost elements inthe exercise.

You can take this overhead slide from the folder and use it as a helpful overviewthoughout the course.





Exercise 3: Cost elements

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create secondary cost elements in Management Accounting.

Business ExampleAt the end of the period, you would like to assess costs from the “Organization”,“IT Services”, and “Motor Pool” cost centers to the Consulting cost centers.Furthermore, the Consulting cost centers use the direct activity allocationfunctions to allocate their consulting services to internal orders. These internalorders have been set up to act as cost objects for the individual companies thatused the services. To use the assessment and direct activity allocation functions,you need to define secondary cost elements. In addition, you want to distributeproduction cost centers to the repair costs according to their origin. This should becarried out later by means of the indirect activity allocation.

Task 1:Create your secondary cost elements. They should be valid from the first day ofthe current fiscal year through the default Valid to date.

1. Create the assessment cost elements. Use the following information:

Costelement

Name Desc. Cost el-ementcate-gory

6300## Assessment org. Organizational Group ## 42

6310## Assessment IT Service##

IT Services Group ## 42

6311## Assess Motor Pool ## Motor Pool Group ## 42

2. Create the cost elements you need to allocate consulting activities. Use thefollowing information:




Cost El-ement


6261## Junior consulting ## Junior consulting group ## 43

6262## Senior Consultant ## Senior Consultant Group ## 43

6393## IAA repair (internalactivity allocationrepair)

Repair Costs Group## 43


1. Using the online help, define primary and secondary cost elements. What arethe prerequisites for creating primary cost elements or revenue elements?



Solution 3: Cost elementsTask 1:Create your secondary cost elements. They should be valid from the first day ofthe current fiscal year through the default Valid to date.

1. Create the assessment cost elements. Use the following information:

Costelement


6300## Assessment org. Organizational Group ## 42

6310## Assessment IT Service##

IT Services Group ## 42

6311## Assess Motor Pool ## Motor Pool Group ## 42

a) Cost Center Accounting: Master Data → Cost Element → IndividualProcessing → Create Secondary

b)


Cost Element 6300##


To 31.12.9999

Name Assessment org.

Desc. Organizational Group ##

Cost element category 42

Save your data!

Repeat this procedure to create the other cost elements.

2. Create the cost elements you need to allocate consulting activities. Use thefollowing information:




Cost El-ement


6261## Junior consulting ## Junior consulting group ## 43

6262## Senior Consultant ## Senior Consultant Group ## 43

6393## IAA repair (internalactivity allocationrepair)

Repair Costs Group## 43

a)


Cost Element 6261##


To 31.12.9999

Name Junior consulting ##

Desc. Junior consulting group ##


Save your data!

Proceed as for cost element 6262## and 6393## (reference 6261##).


1. Using the online help, define primary and secondary cost elements. What arethe prerequisites for creating primary cost elements or revenue elements?

Answer: A cost element classifies an organization's valuated consumptionof production factors within a controlling area. A cost element correspondsto a cost-relevant item in the chart of accounts.A distinction is made between primary cost elements, which arise throughthe use of externally procured goods, and secondary cost elements, whichrepresent values flows within Management Accounting.Primary cost elements must be defined as G/L accounts before they canbe created within a controlling area.



Lesson Summary

You should now be able to:• Distinguish between G/L accounts and cost elements• Create cost elements in Management Accounting, and explain alternative

methods for creating them



Lesson: Activity Types

Lesson OverviewYou will familiarize yourself with the master data of the activity type and learnhow to create a price for the activity to be performed.


• Create activity types.• Plan manual prices for the activity types on different cost centers

Business ExampleThe consultants that work for your company need to be able to settle the servicesthat they provide to customers directly to a cost object (internal order). You wantto allocate the services of junior and senior consultants separately.

The Activity Types

Figure 32: The Activity Types

The activity type classifies the activities that are to be performed within acompany by one or several cost centers.


TFIN20_1 Lesson: Activity Types

If a cost center provides activities for other cost centers, orders, processes, and soon, then this means that the resources of this cost center are being used. The costsof these resources need to be allocated to the receivers of the activity. Activitytypes serve as tracing factors for this cost allocation.

In an internal activity allocation, the quantity of the activity, such as thenumber of consulting hours, is entered into the mySAP ERP system (manually orautomatically). The system calculates the associated cost based on the activityprice and generates a debit to the receiver and a credit to the sender for both thequantity and costs. The internal activity allocation is carried out using secondarycost elements, which are stored as default types in the activity type master data.

You can restrict the use of the activity type to certain types of cost centers byentering the allowed cost center categories in the activity type master record. Youcan enter up to eight allowed cost center categories, or leave the assignments"unrestricted" by entering an asterisk (*).

The activity type category is used to determine whether and how an activitytype is recorded and allocated. For example, you can allow some activities tobe allocated directly, but specify for others that they are either not allocated, orallocated indirectly only.

Relationship Between Cost Center/Activity Type

Figure 33: Cost center/activity type



To enable internal activity allocation, you need to specify which cost centersprovide which activity types at what price. You do this in the mySAP ERP systemby planning the activity output/prices for a cost center. To enable this, the SAPsystem provides a wide range of options.

For direct activity allocation, you enter the quantity of the activity to be allocatedmanually. In order for a cost allocation and an activity allocation to be performed,the mySAP ERP system has to valuate the allocated activity amount using thesender's price for this activity type. For a direct activity allocation, the plan pricefor the combination “cost center/activity type” is used for this calculation.

You can enter the planned price either manually, or have it calculated by thesystem automatically within planning. To manually set the price, the plan priceindicator (PPI) must be (manually) set to 3. You can use this procedure if yourprice calculation is not complex, for example where the prices required for yourrates are determined within your organization and do not depend on internallyproduced activities, or where the rate depends on the prices of external suppliersand not on the costs of the cost center. Automatic calculation of plan pricesis covered in course AC412.



Exercise 4: Activity Types

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create activity types.• Plan prices for activity types.

Business ExampleThe consultants in the new consulting department allocate their consultingactivities to internal orders using direct activity allocation. These internal ordersact as cost objects for services that have been provided for a company. You mustcreate master data for the various types of activities. Because these activities(consulting services) also have to be evaluated, you have to plan prices for eachactivity type at cost center level. When the consultants enter how many hours theyhave worked for a company, the number of hours is multiplied by the price andthis amount is credited to the cost center and debited from the cost object. Whenyou define prices, you should base them on the standard market consulting rate.In addition, the repair costs incurred on the repair cost center should be assignedto the production cost centers on a prorated basis by means of indirect activityallocation. The allocation should be performed using another activity type.

Task 1:You would like to analyze the consulting activities of junior and senior consultantsseparately. Consequently, you need to create two activity types for consulting.The activity types are valid from the start of the current fiscal year. Acceptthe proposed end date. Define another activity type for the allocation of therepair costs.

1. Create the activity type J## (Junior Consultant ##). This activity type ismeasured in hours and is only used by category 8 cost centers (Consulting).For allocation, choose the activity type category 1, which supports directactivity allocation. The allocation cost element is 6261##. Set the pricemanually.




2. Create activity type S## (Senior Consultant ##). Use activity type J## asa reference. Change the short text, the description, and the allocation costelement (6262##). Keep the remaining data.

3. Create the activity type REP## (repair ##). The activity type is measured inhours and can be used by all cost centers. For allocation, choose the activitytype category 3, for indirect activity allocation. The allocation cost elementis 6393##. Set the price manually.

Task 2:Both “FI/CO Consulting” and “LO Consulting” cost centers use junior and seniorconsultants. Define prices for the activity types. The repair service is carriedout by the repair cost center.

1. Enter the prices in the planning menu. Choose the planner profile SAPEASY.

2. Use planning layout 1-261 (activity type planning) to plan the prices foractivity type J## on the Consulting cost centers (cost center group B30##).Plan the prices for all periods of the current fiscal year in version 0.

Use form-based entry.

3. An hourly junior consultant rate of EUR 200 has been determined for bothcost centers (301## FI/CO Consulting and 302## LO Consulting).

4. Plan senior consulting prices S## on the consulting cost centers (cost centergroup B30##). Plan the prices for all periods of the current fiscal yearin version 0.


5. An hourly rate of EUR 300 for senior consulting has been determined forcost center301## (FI/CO Consulting). Senior consultants in LO (cost center302##), however, charge an hourly rate of EUR 280.

6. Use planning layout 1-261 (price planning, simple layout) to plan the pricesfor activity type REP## on the Repair cost centers (cost center 113##). Planthe prices for all periods of the current fiscal year in version 0.


7. An hourly rate of EUR 20 has been agreed for cost center113## (Repairs).



Solution 4: Activity TypesTask 1:You would like to analyze the consulting activities of junior and senior consultantsseparately. Consequently, you need to create two activity types for consulting.The activity types are valid from the start of the current fiscal year. Acceptthe proposed end date. Define another activity type for the allocation of therepair costs.

1. Create the activity type J## (Junior Consultant ##). This activity type ismeasured in hours and is only used by category 8 cost centers (Consulting).For allocation, choose the activity type category 1, which supports directactivity allocation. The allocation cost element is 6261##. Set the pricemanually.

a) Cost Center Accounting: Master Data → Activity Type → IndividualProcessing → Create

b)


Activity Type J##


To 31.12.9999

Name Junior consulting ##

Activity Unit HR

Cost center categories 8

Activity type category 1

Allocation cost element 6261##

Price Indicator 3

Save your data!

2. Create activity type S## (Senior Consultant ##). Use activity type J## asa reference. Change the short text, the description, and the allocation costelement (6262##). Keep the remaining data.

Answer: Save your data. Create the activity type S## accordingly - usingreference J##.Change the name and the allocation cost element. Keep the remaining data.Save your data!




3. Create the activity type REP## (repair ##). The activity type is measured inhours and can be used by all cost centers. For allocation, choose the activitytype category 3, for indirect activity allocation. The allocation cost elementis 6393##. Set the price manually.

a) Cost Center Accounting: Master Data → Activity Type → IndividualProcessing → Create

b)


Activity Type REP##


To 31.12.9999

Name Repair ##

Activity Unit HR

Cost center categories *

Activity type category 3

Allocation cost element 6393##

Price Indicator 3

Save your data!

Task 2:Both “FI/CO Consulting” and “LO Consulting” cost centers use junior and seniorconsultants. Define prices for the activity types. The repair service is carriedout by the repair cost center.

1. Enter the prices in the planning menu. Choose the planner profile SAPEASY.

a) Cost Center Accounting: Planning → Set Planning Profile

b)


Planner profile SAPEASY

Confirm profile icon.

2. Use planning layout 1-261 (activity type planning) to plan the prices foractivity type J## on the Consulting cost centers (cost center group B30##).Plan the prices for all periods of the current fiscal year in version 0.





a) Cost Center Accounting: Planning → Activity Output/Prices →Change

b)


Version: 0

Period From 1

Period To 12

Fiscal Year current

Cost center - group B30##

Activity Type J##

Input Form-based

Goto → Overview Screen

3. An hourly junior consultant rate of EUR 200 has been determined for bothcost centers (301## FI/CO Consulting and 302## LO Consulting).

a) On the overview screen


Total price 200

Goto → Next Combination (cost center 302##)


Total price 200

Save your data!

4. Plan senior consulting prices S## on the consulting cost centers (cost centergroup B30##). Plan the prices for all periods of the current fiscal yearin version 0.







Version: 0

Period From 1

Period To 12

Fiscal Year current

Cost center - group B30##

Activity Type S##

Input Form-based

5. An hourly rate of EUR 300 for senior consulting has been determined forcost center301## (FI/CO Consulting). Senior consultants in LO (cost center302##), however, charge an hourly rate of EUR 280.



Total price 300

Goto → Next Combination (cost center 302##)


Total price 280

Save your data!

6. Use planning layout 1-261 (price planning, simple layout) to plan the pricesfor activity type REP## on the Repair cost centers (cost center 113##). Planthe prices for all periods of the current fiscal year in version 0.






b)


Version: 0

Period From 1

Period To 12

Fiscal Year current

Cost Center 113##

Activity Type REP##

Input Form-based

Goto → Overview Screen

7. An hourly rate of EUR 20 has been agreed for cost center113## (Repairs).



Total price 20

Save your data!



Lesson Summary

You should now be able to:• Create activity types.• Plan manual prices for the activity types on different cost centers


TFIN20_1 Lesson: Statistical key figures

Lesson: Statistical key figures

Lesson OverviewYou will familiarize your self with statistical key figures in ManagementAccounting.


• Create statistical key figures

Business ExampleYou want to use statistical key figures as the tracing factor for repostings andallocations at period end.

Statistical key figures

Figure 34: Statistical key figures

Statistical key figures are figures relating to cost centers, profit centers, andoverhead cost orders (for example, the number of employees, the length oflong-distance calls). Statistical key figures may also be a value representingthe services provided by one particular cost center, for example, the number ofemployees in the Transportation cost center who carry out repairs. These types ofkey figures are known as activity-dependent statistical key figures.

You can post both planned and actual statistical key figures.



You can use statistical key figures both as a basis for periodic transactions, such asassessment or distribution, and for key figure analysis.

Statistical key figures are defined either as a fixed value or a totals value.

The fixed value (for example, employees) is carried over from the period in whichit is entered to all subsequent periods of the same fiscal year. You only need toenter a new posting if this fixed value changes. The fiscal year total is an averageof the period totals.

The totals value is only posted in the period in which it is entered (for example,for long-distance calls). The fiscal year total is the sum of all the period values.



Exercise 5: Statistical key figures

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create statistical key figures

Business ExampleAt the end of the period, the cost centers “Telephone”, “Organization”, “ITServices”, and “Motor Pool” allocate their costs to the cost centers that incurredthe costs. Statistical key figures can be used as a basis for allocating the costs.

The production cost centers are distributed to the repair costs at period end bymeans of an indirect activity allocation. These costs are allocated on the basis ofthe produced units of the cost centers. This output is also represented by means ofa statistical key figure.

Task:Create statistical key figures that are to be used as a basis for the periodicallocations of the cost centers.

1. The “Telephone” cost center uses the number of telephone units on the costcenter as an allocation basis, the “IT Services” cost center uses the numberof PCs in use, and the “Motor Pool” cost center allocates costs based onmileage. The production cost centers use the number of their produced units.Decide which of these allocation bases are totals values and which are fixedvalues.

Number of telephone units:

Number of PCs:

Mileage:

Number of produced units

2. Can you change fixed values during the fiscal year?

3. Define the statistical key figure TELE## for the number of telephone units.The unit of measure is pieces.




4. Define the statistical key figure PC## for the number of PCs in use on thecost centers. The unit of measure is pieces.

5. Define the statistical key figureMI## for mileage. The unit of measure ismiles (MI).

6. Define the statistical key figure Prod## for the number of the produced units.The unit of measure is pieces PC.



Solution 5: Statistical key figuresTask:Create statistical key figures that are to be used as a basis for the periodicallocations of the cost centers.

1. The “Telephone” cost center uses the number of telephone units on the costcenter as an allocation basis, the “IT Services” cost center uses the numberof PCs in use, and the “Motor Pool” cost center allocates costs based onmileage. The production cost centers use the number of their produced units.Decide which of these allocation bases are totals values and which are fixedvalues.

Number of telephone units: Totals value

Number of PCs: Fixed value

Mileage: Totals value

Number of produced units Totals value

a) You enter and post totals values only in the relevant posting period.Starting from the entry period, fixed values are updated for the entirefiscal year.

2. Can you change fixed values during the fiscal year?

Answer: You can change fixed values during a fiscal year, by entering thenew value in the corresponding period. From this time onwards, the datais updated to the following periods.As the name suggests, fixed values are statistical key figures, the postingvalue of which is always constant. However, values such as these still need tobe capable of being adjusted to changes within the enterprise. Such changescould include additional employees or smaller office space for a cost center.




3. Define the statistical key figure TELE## for the number of telephone units.The unit of measure is pieces.

a) Cost Center Accounting: Master Data → Statististical Key Figures →Individual Processing → Create


Statist. Key Figure TELE##

Description Telephone units

Statist.key figure unit Pc

Key figure category Totals values

Save your data!

4. Define the statistical key figure PC## for the number of PCs in use on thecost centers. The unit of measure is pieces.

a)


Statist. Key Figure PC##

Description PCs

Statist.key figure unit Pc

Key figure category Fixed values

Save your data!

5. Define the statistical key figureMI## for mileage. The unit of measure ismiles (MI).

a)


Statist. Key Figure MI##

Description Miles traveled

Statist.key figure unit MI


Save your data!




6. Define the statistical key figure Prod## for the number of the produced units.The unit of measure is pieces PC.

a)


Statist. Key Figure Prod##

Description Produced unit

Statist. key figure unit PC


Save your data!



Lesson Summary

You should now be able to:• Create statistical key figures


TFIN20_1 Lesson: Global Functions For Master Data

Lesson: Global Functions For Master Data

Lesson OverviewYou will familiarize yourself with the time dependency of master data and learnhow you can combine master data in groups and process these in the collectiveprocessing


• Update master data in collective processing• Explain the time dependencies of master data• Create master data groups and explain how they are created

Business ExampleAlthough master data remains relatively constant for long periods of time, somemaintenance will be required as the enterprise grows and changes. You familiarizeyourself with the variety of tools that exist for this purpose.

Creating Time-Based Master Data

Figure 35: Creating Time-Based Master Data



You can store master data fields for cost centers, cost elements, and activitytypes as time-based. If you change one of these fields for a particular timeframe,the system creates a new master record containing the new master record forthis period. This means that several database records are maintained for eachindividual master record. In the above example, the "Responsible person" fieldis time-dependent, meaning that you are able to enter the different cost centermanagers as they change over time.

You specify whether individual fields are time-based in Customizing. Certainfields, such as the assignment of a cost center to a company code, a business area,or to a profit center, are defined by SAP as time-dependent and this time cannot bereduced if you have made actual postings to this cost center in the current fiscalyear. Since time-dependent data storage can result in large volumes of data, youshould define only important fields as time-dependent.

The Cost center assignment to the standard hierarchy area is anon-time-dependent field. This means that, if the assignment is changed, historicalas well as current cost center information will be reported based on the currentassignment.

If you want to extend the validity period of a master data record, access masterdata maintenance and create a master record for the extended period in question.To avoid filling out the same master data fields, you can copy from the existingmaster record.

Collective Processing

Figure 36: Collective Processing



The SAP system provides you with collective processing functions for cost centermaster data.

You can select cost centers by entering intervals, groups or selection variants,maintain all fields (except customer-specific additional fields), create groupsusing selected cost centers, or switch from collective to individual processing ofmaster data lists

You can also use collective processing to change or delete statistical key figures.

Cost elements and activity types can only be displayed or deleted undercollective processing.

You can create your own list variants for collective processing. The list variantdetermines the master data fields that can be processed. You can change the listvariant during processing.

The list display functions for cost elements, cost centers, activity types, andbusiness processes have been improved. In the list display of master data you cansort and filter data in the same way as is possible when using the ABAP list viewer.

To make it easier to make selections at a later date, you can combine the objectsdisplayed into groups.

Master Data Groups

Figure 37: Master Data Groups

You use master data groups to summarize the various types of master data in CostCenter Accounting for analysis, planning and allocation purposes.

You can use these groups to process more than one master data record in onetransaction, for example when planning or in reporting. For example, you canplan all the cost elements used by your cost center by specifying the correspondingcost element group. You could also specify your cost center group if you wantedto create a report containing the results of all the cost centers for your area.



The master data group function enables you to create a hierarchical structure.Master data is then assigned to the groups at the lowest level, and then summarizedin groups belonging to the higher levels. You can create as many hierarchicalgroups as your business requires.

The cost center standard hierarchy is a special type of cost center group. Allcost centers in a controlling area must be assigned to the standard hierarchy.Alongside the standard hierarchy, you can use the functions in group maintenanceto create any number of alternative cost center hierarchies.

You can create new master data groups by using existing groups as a templatefrom which to copy.

Figure 38: Master data groups with selection variants

A selection variant is used for master data selection. You only need to enter theselection criteria for the object once and then save them in a selection variant.The system uses the criteria stored in the selection variant during runtime todetermine the corresponding objects.

If you create or change groups of cost elements, cost centers, activity types,statistical key figures, business processes, orders or WBS elements, you can alsoassign a selection variant to an end node. This provides you with a dynamic group,in which the contents can change.

When you create or change groups, you cannot create any new selection variants.

The system performance is better for groups if they do not have selection variants.



In the example above, you create a master data group that contains all the costcenters for business area 9900. You do this, for example, to include this in areport. First of all, create a selection variant that selects the cost center of thebusiness area 9900. Then create the cost center group and allocate the selectionvariant to an end node. You can display an overview to check which objects areselected by this selection variant. If a new cost center is created in business area9900, or an already existing cost center is assigned to this business area, then it isautomatically part of cost center group "9900".

Figure 39: Copying Groups or a Hierarchy Using a Suffix

Master data groups are not time-based. Therefore, if you change the groupstructure, then the system prepares current and historic information in the newstructure. If you want to save an historical hierarchy, you should therefore save acopy of the hierarchy before each update.

You can copy the groups that have an existing hierarchy with a suffix. A period anda name up to four characters long is added to the name of the group. The hierarchyand its suffix are saved. Now you can make changes to the current hierarchy.

The standard hierarchy must not contain a suffix.

If you copy a group for which a suffix exists, this suffix is replaced by the newsuffix specified by you.

The system carries out the same checks that are made under the function "CreateGroup/Hierarchy with Reference".

In the above example, “1999” is used as a suffix. Any other characters couldstand in their place. The suffix name selected does not mean that the group isnow time-based.





Exercise 6: Global Functions For MasterData

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create master data groups.• Change cost center managers for a certain period of time.• Use collective processing

Business ExampleIn order that you do not have to specify each receiver every time you defineperiodic allocations, you can create cost center groups that contain the receiversof the relevant allocation. However, before you create a cost center group, makesure that the receivers are not already assigned as a group (that is, a hierarchynode) in the standard hierarchy.

One of the cost center managers is going on maternity leave for one year. Oneof her colleagues will be taking on responsibility for the cost center during herabsence.

You should check and make any necessary additions to the master data of the costcenter. To speed up the process, you should use the collective processing functionsthat are available.


1. The following table gives you an overview of the allocation relationships atthe end of the period.

Cost Center Allocated to

101## (Telephone) 201##, 202##, 203##, 301##, 302##

201## (Organization) 202##, 301##, 302##

202## (IT service) 201##, 301##, 302##

203## (Motor Pool) 301##, 302##

Have a look in the standard hierarchy to see whether you can use any of theexisting groups (or nodes) or whether you have to create alternative costcenter groups.




For which cost centers do you have to create alternative cost center groups sothat you can allocate costs to them?

Hint: You can also use cost center intervals instead of groups.However, this not possible during the course due to the currentnumbering of the cost centers.


1. Telephone costs are to be reposted periodically to various receivers. Youshould create an alternative cost center group for the receivers of the costs.

Create cost center group PR-TELE## (Periodic Reposting Telephone Costs##). Assign group B20## and group B30## to this cost center group.

Task 3:Create cost center groups for assessments.

1. Create the cost center group ASSE-IT## (Assessment IT Services ##).Assign cost centers 201## (Organization ##), 301## (FI/CO Consulting), and302## (LO Consulting) to this group.

2. Create the cost center group ASSE-OR## (Assessment Organization ##)using group ASSE-IT## as a reference. Delete cost center 201## and addcost center 202## (IT Services) so that the group comprises cost center202##, 301##, and 302##.

Task 4: OptionalChange the time periods in the cost center master data.

1. Ms Rose will be gone from the beginning of the next period for exactlytwelve months. Her position as cost center manager of cost center 203##(Motor Pool) will be assumed by Mr Riccardo in the meantime. Change themaster data for this period accordingly.

2. Call up cost center 203## (Motor Pool).

How many periods for analysis are displayed?

Why does the system display more than one period for analysis?




Task 5: OptionalYou would like to use the collective processing functions to check and add toyour cost center data.

1. You would like to check that the cost centers of consulting department B##have been released for actual and plan postings and, if necessary, makechanges. Scroll down to the relevant list variant.

2. You would also like to enter communication data for the consulting costcenters. However, there are no fields available for this in the standard listvariants. Define a one-line list variant COM## and enter “Telephone andFax ##” as a description for it. The list variant should contain the followingcolumns:

Selection / Cost Center / Telephone 1 / Fax Number

When you save the list variant, ensure that a change request with thedescription “USER AC405##” is created automatically. Save your entries.

Hint: Changes to Customizing settings can be saved in an order sothat the changes can be transported to other SAP systems or clients.

3. Activate your list variant.

4. Use collective processing to process the consulting cost centers (groupB30##) with your list variant COM##. Enter the following data:

Cost center 301## (Consultant FI/CO), Telephone no.123,

Fax no. 321


Fax no. 654

Task 6: OptionalYou would like to change the cost center group PR_TELE## so that all newconsulting cost centers (category 8 cost centers) are included in this groupautomatically, regardless of what node they are assigned to in the standardhierarchy.

1. Create the selection variant 8-## (“Consultant Cost Centers”). Thisselection variant should select all category 8 (consulting) cost centers. Enteryour user name as an additional selection criteria in the “Created by” field.

2. Remove from the cost center group PR-TELE## (Periodic RepostingTelephone ##) the node B30## and assign it instead to the selection variant8-##.




Which cost centers are assigned to the group PR-TELE## as a result of this?

3. Test your selection variant by creating a new consulting cost center 303##Basis Consulting using cost center 301## FI/CO Consulting as a reference.Only change the cost center short description. Save your entries.

4. Display cost center group PR-TELE## and call up the details of theselection variant. Which cost centers are now assigned to the group as aresult based on this selection variant?

5. Delete cost center 303## for the whole period.

6. What could be the reason that not all groups are created with selectionvariants?



Solution 6: Global Functions For MasterDataTask 1:Carry out the following task:

1. The following table gives you an overview of the allocation relationships atthe end of the period.


101## (Telephone) 201##, 202##, 203##, 301##, 302##

201## (Organization) 202##, 301##, 302##

202## (IT service) 201##, 301##, 302##

203## (Motor Pool) 301##, 302##

Have a look in the standard hierarchy to see whether you can use any of theexisting groups (or nodes) or whether you have to create alternative costcenter groups.

For which cost centers do you have to create alternative cost center groups sothat you can allocate costs to them?

Hint: You can also use cost center intervals instead of groups.However, this not possible during the course due to the currentnumbering of the cost centers.

a) Cost Center Accounting: Master Data → Standard Hierarchy →Display

b) Cost center 101## (telephone), 201## (organization) and 202## (ITservice)


101## B 20## and B30##

201## 202## and B30##

202## 201## and B30##

203## B30##





1. Telephone costs are to be reposted periodically to various receivers. Youshould create an alternative cost center group for the receivers of the costs.

Create cost center group PR-TELE## (Periodic Reposting Telephone Costs##). Assign group B20## and group B30## to this cost center group.

a) Cost Center Accounting: Master Data → Cost Center Group → Create

b)


Cost center group PR-TELE##

Hierarchy icon.

Description Periodic reposting Telephone ##

Edit → Cost Center Group → Lower Level

B20##

Edit → Cost Center Group → Same Level

B30##

Save your data!




Task 3:Create cost center groups for assessments.

1. Create the cost center group ASSE-IT## (Assessment IT Services ##).Assign cost centers 201## (Organization ##), 301## (FI/CO Consulting), and302## (LO Consulting) to this group.

a) Cost Center Accounting: Master Data → Cost Center Group → Create

b)


Cost center group ASSE-IT##

Hierarchy icon.

Description Assessment IT Services ##

Edit → Cost Center → Insert Cost Center

Cost Center 201##

Cost Center 301##

Cost Center 302##

Save your data!




2. Create the cost center group ASSE-OR## (Assessment Organization ##)using group ASSE-IT## as a reference. Delete cost center 201## and addcost center 202## (IT Services) so that the group comprises cost center202##, 301##, and 302##.

a)


Cost center group ASSE-OR##

Reference cost center group ASSE-IT##

Description Assessment organization ##

Hierarchy icon.

Position your cursor on cost center 201##.

Select icon→ Remove icon

Place your cursor on the upper node ASSE-OR##.

Edit → Cost Center → Insert Cost Center


Cost Center 202##

Save your data!




Task 4: OptionalChange the time periods in the cost center master data.

1. Ms Rose will be gone from the beginning of the next period for exactlytwelve months. Her position as cost center manager of cost center 203##(Motor Pool) will be assumed by Mr Riccardo in the meantime. Change themaster data for this period accordingly.

a) Cost Center Accounting: Master Data → Cost Center → IndividualProcessing → Change


Cost Center 203##

Enter

→Edit → Analysis Period → Other Analysis Period

Valid from 01. Next period of the currentfiscal year

Valid until 12 months later

Select the Choose icon

Person responsible Riccardo

Save your data!

2. Call up cost center 203## (Motor Pool).

How many periods for analysis are displayed?




Why does the system display more than one period for analysis?

a) Cost Center Accounting: Master Data → Cost Center → IndividualProcessing → Display

b)


Cost Center 203##

Enter

The system displays 3 data records for selection. The "Personresponsible" field is managed on a time-dependent basis, meaningthat for a new analysis period, the system stores the master data as aseparate data record.

Task 5: OptionalYou would like to use the collective processing functions to check and add toyour cost center data.

1. You would like to check that the cost centers of consulting department B##have been released for actual and plan postings and, if necessary, makechanges. Scroll down to the relevant list variant.

a) Cost Center Accounting: Master Data → Cost Center → CollectiveProcessing → Change

b)


Cost center group B##


To 31.12.9999

List variant SAP01

Cost Center List → Execute

Format → Next List Variant (SAP02 standard, two-line)

2. You would also like to enter communication data for the consulting costcenters. However, there are no fields available for this in the standard listvariants. Define a one-line list variant COM## and enter “Telephone andFax ##” as a description for it. The list variant should contain the followingcolumns:




Selection / Cost Center / Telephone 1 / Fax Number

When you save the list variant, ensure that a change request with thedescription “USER AC405##” is created automatically. Save your entries.

Hint: Changes to Customizing settings can be saved in an order sothat the changes can be transported to other SAP systems or clients.

a) IMG: Controlling → Cost Center Accounting → Master Data → CostCenters → Define List Variants for Group Processing → Variant →New Variant → Create

b)


Variant COM##

Bezeichnung Telephone and fax ##

Number of lines 1

Enter

Place your cursor in the column “Possible fields”on“selection”.

Edit → Choose

Confirm the output length.

Repeat this procedure for the fields "Cost center", "Telephone 1" and"Fax number".

Save your data!

The system displays the “Enter change request” dialog box. Choose theCreate request icon.


Short Description USER AC405-##

Save your data!

Enter

3. Activate your list variant.

a) Variant → Existing Variant → Activate

4. Use collective processing to process the consulting cost centers (groupB30##) with your list variant COM##. Enter the following data:





Fax no. 321


Fax no. 654

a) Cost Center Accounting: Master Data → Cost Center → CollectiveProcessing → Change

b)


Cost center group B30##


To 31.12.9999

List variant COM##

Cost Center List → Execute

Enter the following values.

Cost Center Telephone 1 Fax number

301## 123 321

302## 456 654

Save your data!




Task 6: OptionalYou would like to change the cost center group PR_TELE## so that all newconsulting cost centers (category 8 cost centers) are included in this groupautomatically, regardless of what node they are assigned to in the standardhierarchy.

1. Create the selection variant 8-## (“Consultant Cost Centers”). Thisselection variant should select all category 8 (consulting) cost centers. Enteryour user name as an additional selection criteria in the “Created by” field.

a) IMG: Controlling → Cost Center Accounting → Master Data → CostCenters → Define Selection Variants for Cost Centers

b)


Variant 8-##

Variants → Create

Cost center category 8

Created by AC405-##

Edit → Attribute

Meaning Consulting cost centers

Save your data!

2. Remove from the cost center group PR-TELE## (Periodic RepostingTelephone ##) the node B30## and assign it instead to the selection variant8-##.




Which cost centers are assigned to the group PR-TELE## as a result of this?

a) Cost Center Accounting: Master Data → Cost Center Group →Change

b)



Hierarchy icon.

Position your cursor on theB30## node.

Select icon

Edit → Selected Entry → Remove Icon

Position your cursor on the B20## node.

Edit → Cost Center Group → Same Level

Search for possible entries using the F4 Help or click on the smalltriangle next to the empty field.

Carry over the settings and select “Top nodes only” and “With selectionvariants”.

Choose the selection variant (8-##) you created.

Cost center group 8-##

Save your data!

Extras → Expand Selection Variant

You use the selection variant to assign the cost center group toconsulting cost centers 301## and 302##.




3. Test your selection variant by creating a new consulting cost center 303##Basis Consulting using cost center 301## FI/CO Consulting as a reference.Only change the cost center short description. Save your entries.

a) Cost Center Accounting: Master Data → Cost Center → IndividualProcessing → Create

b)


Cost Center 303##


to 31.12.9999

Reference cost center 301##

Name Basis consulting

Save your data!

4. Display cost center group PR-TELE## and call up the details of theselection variant. Which cost centers are now assigned to the group as aresult based on this selection variant?

a) Cost Center Accounting: Master Data → Cost Center Group →Display

b)



Hierarchy icon.

Place your cursor on the 8-## node.

Extras → Expand Selection Variant

Cost centers 301##, 302##, and 303##




5. Delete cost center 303## for the whole period.

a) Cost Center Accounting: Master Data → Cost Center → IndividualProcessing → Delete

b)


Cost Center 303##


to 31.12.9999

Test Run Deselect

Execute icon

Confirm possible warnings by choosing Enter.

6. What could be the reason that not all groups are created with selectionvariants?

Answer: If you use a group that was created with a selection variant, thisslows system performance because a selection run always takes place.



Lesson Summary

You should now be able to:• Update master data in collective processing• Explain the time dependencies of master data• Create master data groups and explain how they are created



Unit SummaryYou should now be able to:• Describe how to best structure the standard hierarchy• Create cost centers• Understand the meaning of the cost center category.• Distinguish between G/L accounts and cost elements• Create cost elements in Management Accounting, and explain alternative

methods for creating them• Create activity types.• Plan manual prices for the activity types on different cost centers• Create statistical key figures• Update master data in collective processing• Explain the time dependencies of master data• Create master data groups and explain how they are created



Test Your Knowledge

1. The following settings are influenced by the cost center category:Choose the correct answer(s).□ A The default value for the control indicators□ B The Cost Element□ C The Company Code

2. Every cost center must be assigned to the standard hierarchy.Determine whether this statement is true or false.□ True□ False

3. What must happen before you can create a primary cost element?

4. Activity TypesChoose the correct answer(s).□ A The allocation cost element is a mandatory field in the master

data of the activity type.□ B The allocation cost element must be a secondary cost element

of the type 43.□ C A cost center can only perform activities for another cost center.□ D The price must be planned per cost center and activity type

5. The is carried over from the period in which it isentered to all subsequent periods of the same fiscal year. You only need toenter a new posting if this fixed value changes.Fill in the blanks to complete the sentence.

6. You can define master data fields for cost centers, cost elements, and activitytypes as time-based.Determine whether this statement is true or false.□ True□ False



7. The system performance is better for groups if they do not have selectionvariants.Determine whether this statement is true or false.□ True□ False



Answers

1. The following settings are influenced by the cost center category:

Answer: A

The cost center category defines the type of cost center. By assigning costcenter categories to activity types, for example, you can allow particularactivity types only for particular cost centers.In Customizing, you can define lock indicators for each cost center category,or specify that the managing of quantities on cost centers is allowed.

2. Every cost center must be assigned to the standard hierarchy.

Answer: True

You must assign every cost center to a node in the standard hierarchy.

3. What must happen before you can create a primary cost element?

Answer: First of all, a general ledger of the same name must have beendefined in the FI.

4. Activity Types

Answer: A, B, D

A secondary cost element, the allocation cost element is required for theactivity allocation. This must be type 43.Prices can be planned manually or determined by the system.A cost center can only perform activities for different objects.The price must be planned per cost center and activity type

5. The fixed value is carried over from the period in which it is entered to allsubsequent periods of the same fiscal year. You only need to enter a newposting if this fixed value changes.

Answer: fixed value



6. You can define master data fields for cost centers, cost elements, and activitytypes as time-based.

Answer: True

Certain fields can be changed in a time-based way.

7. The system performance is better for groups if they do not have selectionvariants.

Answer: True

As the system must start a selection run for a selection variant, performanceis poorer.


Unit 4Event-Based Postings

Unit OverviewYou execute transactions in source applications and track the effects in appropriatereports. This lesson describes how to make posting easier. We show how sourcepostings can be adjusted on incorrect cost centers.

The couse also includes the topic of activity allocation here.


• Execute transactions in source applications and view the effect• Run totals reports and line item reports and explain additional functions

in the information system.• Describe the configuration options that facilitate postings.• Correct original postings made to incorrect cost centers.• Execute a direct accounting allocation and correct an accounting allocation.

Unit ContentsLesson: Entering Primary Postings... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112

Exercise 7: Entering Primary Postings ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119Lesson: Reports in Cost Center Accounting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124

Exercise 8: Reports in Cost Center Accounting ... . . . . . . . . . . . . . . . . . . . . .131Lesson: Account Assignment Tools .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138Lesson: Adjustment postings... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143

Exercise 9: Reposting Line Items ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147Lesson: Direct Activity Allocation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154

Exercise 10: Direct Activity Allocation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157


Unit 4: Event-Based Postings TFIN20_1

Lesson: Entering Primary Postings

Lesson OverviewThis lesson will demonstrate the effects that postings have in source applicationsand what effect this has on Management Accounting.


• Execute transactions in source applications and view the effect

Business ExampleFor each Management Accounting posting, the system creates a document, whichis identified by a unique number. A Management Accounting project teammember shows you how to group Management Accounting business transactionsand then assign them to document number interval.

You need to post some documents on a preliminary basis to check the interfacebetween Financial and Management Accounting.

Event-Based PostingsIf business transactions are entered, then primary costs are posted to cost centersas a result. Costs are categorized using the posting transactions.

Cost relevant business transactions can be entered in the SAP applicationcomponents such as Human Resources, Asset Accounting, Materials Managementand Financial Accounting. The result of this posting is transferred as a primary costposting to Management Accounting. For example, you can post a vendor invoicecontaining an expense item to the relevant cost center in Management Accounting.

Error postings can be corrected by repostings within Management Accounting.The costs are reposted using the original primary cost element. The maindifference between a reposting and an allocation is that for repostings, the originaldebit amount is always reduced on the sender, whereas for allocations, the originaldebit amount is not changed; rather, a separate credit amount is written to thesender.

A direct activity allocation involves entering the activity quantities that a costcenter provides for another account assignment object. These activity quantitiesare multiplied by the price per activity unit stored in the system. The resultingtotal is credited on the sender (and debited on the receiver) using a secondarycost element.


TFIN20_1 Lesson: Entering Primary Postings

Management Accounting processes both actual postings and commitments. Acommitment is a payment obligation which, although not entered in FinancialAccounting, will result in actual costs through to the business transactions thatfollow.

Document Number Assignment

Figure 40: Document Number Assignment

The various activities that change an object (such as a cost center or order) appearin the SAP system as business transactions.

You need to define number intervals for all business transactions that generateManagement Accounting documents. It is possible to copy document numberintervals from one controlling area to another.

There are two steps to issuing number intervals for documents:

• You group more than one transaction together. If you want to assign adifferent number interval to each transaction, you can create a group foreach transaction.

• You assign the group to an internal or external number interval. This enablesyou to use one group of number intervals for similar transactions.

You define document number intervals for Management Accounting documentsindependently of the fiscal year. The document numbers can be assigned inascending order.

SAP recommends that you create different number interval groups for actual andplan transactions. This ensures that reorganization programs that run separatelyfor actual and planning data also reset the number intervals separately.



Event-Based Postings Through Integration

Figure 41: Event-Based Postings Through Integration

You can enter primary costs either directly in Financial Accounting (as for aninvoice in Accounts Payable) or generate them from other applications (as fora goods movement in Materials Management) and transfer them to FinancialAccounting. These business transactions generate documents that reflect theview of the external accounting system. These documents are stored in acentral document file for external accounting documents. Financial Accountingdocuments contain at least two items and must balance to zero (balance = 0).

Line items are also written in Management Accounting for these businesstransactions if they are also posted to account assignment objects in ManagementAccounting (such as cost centers). The Management Accounting posting is aone-sided entry, since only the profit and loss statement respective postingsis passed to Management Accounting. The line items record the businesstransactions from a Management Accounting standpoint and are managed in aManagement Accounting line item file. In addition, the SAP system summarizesall line items to form totals records, which in turn are stored in a ManagementAccounting totals record file.



Account Assignment Logic

Figure 42: Account Assignment Logic - Posting to Cost Center

Cost and revenue postings in Management Accounting can result in subsequentreal and statistical postings:

• Real postings can be processed. They can be allocated or settled withother controlling objects. One (and only one) real posting takes place inManagement Accounting. The posting contains the information that istransferred to Financial Accounting for reconciliation.

• Statistical postings are only used for information purposes. You can makeas many statistical postings as you wish.

The account assignment object determines whether a posting is real orstatistical, in other words, the account assignment is either a real or statisticalobject. For example, the master data of an overhead cost order is used to determinewhether the order is real or statistical. Only real postings are made for a realorder, and likewise, only statistical postings are made for a statistical order. Thecost center is the exception to this rule. You can make real and statistical postingsfor a cost center.

If you want to post Management Accounting costs, you need to use the sourcedocument (for example, from the vendor invoice, or the material withdrawaldocument) to identify the corresponding real Management Accounting accountassignment object. You can enter additional statistical objects, or the system canderive them. In this simple example, the cost center is entered in the FinancialAccounting document so that the real Management Accounting posting can bemade. The system transfers the profit center from the master data for the costcenter, for the statistical posting.

You always make statistical postings to the profit center.



Figure 43: Account Assignment Logic - Posting to Cost Center and Order

During posting, only a real account assignment object can be transferred. Theonly exception to this rule is the account assignment to a cost center, and anadditional, real account assignment object. In this case, the system always updatesthe cost center statistically. If you specify a real order and a cost center in theposting row as described in the example above, then the real posting is made forthe overhead cost order. Statistical postings are entered for the cost center and theprofit center. However, if the order is only statistical, then it is posted to as such,and the cost center receives real postings.

You can analyze statistical postings to cost centers in the following report CostCenters: Actual/Plan/Variance (scroll down in the report).

You can only assign one object type to each posting row. This means that youcannot post the same transaction row to more than one cost center or order, andso on.



Figure 44: Account Assignment Logic - Revenue Postings

Revenues can only be posted as real postings to a profitability segment, salesorder, sales project, or to a real order that can have revenues. Revenue postings tothe profit center are statistical, the same as for cost postings.

Revenues can also be recorded as statistical values on cost centers.





Exercise 7: Entering Primary Postings

Exercise ObjectivesAfter completing this exercise, you will be able to:• Enter primary postings in Financial Accounting, with account assignment to

cost centers.

Business ExampleYour project team has completed master data maintenance. You can now assignthe expenses in Financial Accounting as costs to the cost centers in Controlling.

Task:Carry out the following task:

1. Enter the general ledger account postings into Financial Accounting usingcompany code 1000, today's date and the EUR currency. Choose the screenvariant “With cost center”, and post the following data:

G/L Account D/C Amount Taxcode

CostCenter

473120 (telephonecosts)

Debit 8,000 V0 101##

430000 (salaries) ” 5,000 201##

” ” 20,000 202##

” ” 20,000 203##

” ” 200,000 301##

” ” 150,000 302##

476000 (officesupplies)

” 3,000 V0 301##

476100 (IT supplies) ” 15,000 V0 202##

475000 (vehicle costs) ” 100,000 V0 203##

476400 (training costs) ” 12,000 V0 301##

” ” 15,000 V0 302##





CostCenter

415100 (externalactivities)

” 2,000 V0 113##

420000 (direct laborcosts)

” 8,000 113##

113100 (bank) Credit 558,000 --- ---

Ensure that you note down the document number._______________________



Solution 7: Entering Primary PostingsTask:Carry out the following task:

1. Enter the general ledger account postings into Financial Accounting usingcompany code 1000, today's date and the EUR currency. Choose the screenvariant “With cost center”, and post the following data:


CostCenter


Debit 8,000 V0 101##

430000 (salaries) ” 5,000 201##

” ” 20,000 202##

” ” 20,000 203##

” ” 200,000 301##

” ” 150,000 302##


” 3,000 V0 301##

476100 (IT supplies) ” 15,000 V0 202##

475000 (vehicle costs) ” 100,000 V0 203##

476400 (training costs) ” 12,000 V0 301##

” ” 15,000 V0 302##


” 2,000 V0 113##


” 8,000 113##

113100 (bank) Credit 558,000 --- ---




Ensure that you note down the document number._______________________

a) Accounting → Financial Accounting → General Ledger → Documententry → Enter G/L Account Document

b)


Document Date current

Currency EUR

Edit → Screen Variant → Select Screen Variant

Screen Variant: “with cost center” (Z_WITH COST CENTER)


CostCenter


Debit 8,000 V0 101##

430000 (salaries) ” 5,000 201##

” ” 20,000 202##

” ” 20,000 203##

” ” 200,000 301##

” ” 150,000 302##


” 3,000 V0 301##

476100 (IT supplies) ” 15,000 V0 202##

475000 (vehiclecosts)

” 100,000 V0 203##

476400 (trainingcosts)

” 12,000 V0 301##

” ” 15,000 V0 302##


” 2,000 V0 113##


” 8,000 113##

113100 (Bank) Credit 558,000 --- ---

Save your data!



Lesson Summary

You should now be able to:• Execute transactions in source applications and view the effect



Lesson: Reports in Cost Center Accounting

Lesson OverviewThe report menu is displayed. You will see examples of a standard report andfamiliarize yourself with the possibilities offered by interactive informationsystems.


• Run totals reports and line item reports and explain additional functionsin the information system.

Business ExampleYou want to display the data on the cost centers using different reports. Investigatethe reports contained in the standard system.

The Report Menu

Figure 45: The Report Menu

You can use the report tree to select reports from the information system. Thereport tree gathers all reports within an application and structures them in ahierarchy.


TFIN20_1 Lesson: Reports in Cost Center Accounting

You can define your own report menu for each activity group in the enterprise withan individual node structure. Reports that you created for your own requirements,or SAP standard reports can be integrated into the report menu of an activitygroup. Changes such as adding user-defined reports are not included in thestandard SAP menu.

Example of a Standard Report

Figure 46: Example of a Standard Report

Overhead cost controlling consists of the following tasks:

• Planning• Allocation• Control• Monitoring of overhead costs

In addition, the SAP System summarizes all line items to form totals records,which in turn are stored in a CO totals record file. The system provides youwith a comprehensive set of functions to enable you to allocate overhead costsaccording to source.

At the end of the period, you can compare the planned costs and theircorresponding actual costs. You can make a source-based analysis of the resultingplan/actual variances and use the analyses for further controlling measuresManagement Accounting. You can also compare two sets of actual data fromdifferent periods to analyze cost development over a period of time.



Figure 47: Totals Values and Line Items

The SAP system makes a distinction between line items and totals records. Theseare recorded in separate database tables.

A line item is entered for each business transaction. You can access these lineitems using the line item report.

For reporting, all the line items entered for business transactions are automaticallysaved in totals records. The amounts are totaled in the SAP system based on thecost center/cost element or cost center/cost element/activity type and enables datato be evaluated more quickly. You can analyze the totals records using a ReportPainter/Report Writer report.

Normally, you would analyze a cost center using a Report Painter report. If yourequire detailed information for particular cost elements posted to the cost center,you can call up the corresponding line items.

The line item report acts as an itemization of actual costs, plan costs orcommitments based on the posting documents. This information is displayedas a list (ABAP list display).

For example: In Financial Accounting, personnel costs for an external repair firmwere posted twice in the same month.

Line item 1: 420000 Personnel costs 5,000.-- Cost Center Production 07/2003

Line item 2: 420000 Personnel costs 3,500.-- Cost Center Production 07/2003

Totals Record 420000 Personnel costs 8,500.-- Cost Center Production 07/2003



Interactive Information System

Figure 48: Interactive Information System

You can use the interactive information system to total and analyze all or selectedbusiness transactions according to various criteria (for example, cost center/costelement).

The totals records in the Report Painter report are normally analyzed, butsometimes the line items from the summary report are also selected andexamined. You can also move from the line items to the corresponding sourcedocuments. The source document can be an FI document, or for example, anaccounting document from a reposting.

You can call up other reports using the Report/Report interface.



Settings for Reporting

Figure 49: User Settings

You can specify general and user-specific default values for the selection criteria,and the report currency. The advantage of user settings is that several or all valuesthat you normally enter before you execute a report are displayed automatically.When you call a report, the SAP system checks to see if you have made all therequired entries. If this is the case, then the report can be executed without anyentries required in the selection screen.

You can enter the following default values:

• Basic data (controlling area, cost center or cost center group, cost element,and so on)

• Settings for extract management• Planning timeframe• Reporting timeframe• Report currency• Other specifications, such as the version



Figure 50: Variation

The variation function enables you to select a separate report for each elementof a group that was generated during a selection run. This function is especiallyuseful when creating a report in the background from a cost center group, if youwant to be able to switch between cost center reports at the same time.

The variation function can only be used if you have activated it in the reportdefinition.

In the dialog box for the variation, you specify which nodes and/or cost centers areto be output. You can choose one of three options for this indicator:

• Breakdown provides you with reports for all cost centers and all nodes of theselected group.

• Do not breakdown provides you with only one report for the highest nodeof the selected group.

• Individual values produces reports exclusively for the individual cost centersin the selected group.

You can save reports for cost center groups as extracts with activated variation.When you come to analyze your extracts for the group, you can then access reportsfor the individual cost centers quickly.



Figure 51: Line Item Report: Maintain Layout

The SAP system provides you with standardized layouts. You can defineadditional variants for global or user-specific use.

You can select as many fields as required from the group of available fields(including customer-specific fields) for a layout that is enterprise oruser-specific.

You need to define the item (column) in the report, and the column width foreach field.

Depending on the column width, the SAP system automatically uses the short textor long text from the field name. It also uses your log-on language (if available)for the report.

The SAP system provides you with standardized layouts.

You can define filters for each column. Rows that fulfill filter criteria are notdisplayed. However, they are included in the totals and subtotals calculation.

You can define totals interactively by selecting the column and choosing Totals.You can select more than one column at a time.



Exercise 8: Reports in Cost CenterAccounting

Exercise ObjectivesAfter completing this exercise, you will be able to:• Make user settings for report selection.• Check the expenses posted in Financial Accounting to each cost center in

Controlling, in summary and line item reports.• Navigate between different cost centers in a cost center report.• Define an individual layout in the report.

Business ExampleYou want to display the expenses posted in FI to the cost centers using differentreports. You also want to use some reporting tools that reduce the reportingworkload and enable flexible evaluation of information.

Task 1:You often call up reports that have the same selection criteria. To simplify theprocess, you can store these criteria as default values.

1. Store controlling area 1000 in the user settings, the current period as theReporting period in the current fiscal year, and version 0, as Further entries.

2. Call the report Cost Centers: Actual/Plan/Variance. Check whether yourselection criteria are transferred from the user settings.

Task 2:Display the costs from the exercise activity on general ledger account postingin the report.

1. Execute the report Cost Centers: Actual/Plan/Variance for the cost centergroup B## in the Controlling Area 1000 Europe. in the current period andfor the plan version 0.

2. The report provides an overview of the costs in the entire consultingdepartment. Use the variation function to display the costs of differentcost centers. Then go to the summary report in cost center 301## (FI/COConsulting).




3. Call up the Actual line items for a report row. Which additional informationon the cost element do you receive compared to the specifications in thesummary report?

4. Display the original FI document. How many line items are on the FIdocument?

5. Display the cost accounting document for the same CO line item. How manyline items are on the cost Accounting document?What causes the difference in the FI document?Remain in the line item display.

Task 3:Define a layout in the line item report according to your requirements.

1. Delete one column and show other columns of your choice.

2. Save your layout as Layout##, then enter a description for it. Indicate thelayout as User-specific. This ensures that only you can use this layout.

3. Call up Select layout to check whether your layout is available for selection,as well as the SAP layouts.



Solution 8: Reports in Cost CenterAccountingTask 1:You often call up reports that have the same selection criteria. To simplify theprocess, you can store these criteria as default values.

1. Store controlling area 1000 in the user settings, the current period as theReporting period in the current fiscal year, and version 0, as Further entries.

a) Cost Center Accounting: Information System → User Settings

b)

Basic data



Reporting timeframe

Fiscal Year Current

Period Current

Further Details

Plan version 0

Save your data!

2. Call the report Cost Centers: Actual/Plan/Variance. Check whether yourselection criteria are transferred from the user settings.

a) Cost Center Accounting: Cost Center Accounting: Information System→ Reports for Cost Center Accounting→ Plan/Actual Comparisons→Cost Centers: Actual/Plan/Variance




Task 2:Display the costs from the exercise activity on general ledger account postingin the report.

1. Execute the report Cost Centers: Actual/Plan/Variance for the cost centergroup B## in the Controlling Area 1000 Europe. in the current period andfor the plan version 0.

a)



Fiscal Year Current

From Period Current

To Period Current

Plan Version 0


Program → Execute

2. The report provides an overview of the costs in the entire consultingdepartment. Use the variation function to display the costs of differentcost centers. Then go to the summary report in cost center 301## (FI/COConsulting).

a) Navigation on/off icon

In the navigation list, choose cost center 301##.

3. Call up the Actual line items for a report row. Which additional informationon the cost element do you receive compared to the specifications in thesummary report?

Answer: Position your cursor on a report row.Double-click on Report rowChoose the Cost Centers: Actual Line Items report.Additional information:a) From which line items the overall total for the cost element resultsb) The offsetting account of the posting in question




4. Display the original FI document. How many line items are on the FIdocument?

Answer: Position your cursor on a line item.Environment → Source Document or Double-Click on Report Row14 Line items

5. Display the cost accounting document for the same CO line item. How manyline items are on the cost Accounting document?

What causes the difference in the FI document?

Remain in the line item display.

Answer: Position your cursor on a line item.Environment → Document Environment→ Accounting Documents → SelectControlling Document → Expand Document13 Line itemsThe credit posting on the balance sheet account is not relevant to CostAccounting and is therefore not transferred to Management Accounting.

Task 3:Define a layout in the line item report according to your requirements.

1. Delete one column and show other columns of your choice.

a) Return to the line item display.

Settings → Layout → Change

In the line item report, select the column that you want to delete.

Icon Right arrow “Hide selected fields”

Change to list: Hidden Fields and select the fields of your choice.

→ Icon Left arrow “Show selected fields”

Copy icon.




2. Save your layout as Layout##, then enter a description for it. Indicate thelayout as User-specific. This ensures that only you can use this layout.

a) Settings → Layout → Save


Layout Layout##

Name

User-specific Select

Transfer further settings

3. Call up Select layout to check whether your layout is available for selection,as well as the SAP layouts.

a) Settings → Layout → Select



Lesson Summary

You should now be able to:• Run totals reports and line item reports and explain additional functions

in the information system.



Lesson: Account Assignment Tools

Lesson OverviewThere are various options for simplifying postings and keeping possible sources oferror to a minimum. The various account assignment tools are shown in this lesson.


• Describe the configuration options that facilitate postings.

Business ExampleYou introduce various options for account assignment to the other project membersin order to make the postings process easier for them.

Default Account Assignment and Automatic AccountAssignment

Figure 52: Default Account Assignment and Automatic Account Assignment

You can define automatic account assignments or default account assignments forpostings of the primary cost element type. The SAP system then automaticallyincludes the specified (additional) account assignment for the primary postings


TFIN20_1 Lesson: Account Assignment Tools

you make. You define automatic and default account assignments for costelements that you always post to a particular cost center. You can also definethe assignment of an overhead order or profit center to a cost element. Whetherautomatic or default, the account assignments are default values that can beoverwritten in the application.

Automatic or default account assignments are required for primary cost elementsused in automatically-generated postings such as price differences, exchangerate differences and discounts.

You enter the default account assignment in the cost element master record.Here, you enter the account assignment at controlling area level and at accountlevel.

You enter automatic account assignments in Customizing in the activity“Maintain Automatic Account Assignment”. In this activity, you can also definemore detailed account assignments to business areas or profit centers.

When the system derives the information, it determines the most detailed accountassignment. It reads the entries in Customizing first. If the system does not findany data here, then it uses the master data for cost elements. The assignmentobjects defined for automatic account assignments therefore take priority over theadditional account assignments for the default account assignment.

Validation

Figure 53: Validation



You can increase the accuracy of the Management Accounting data by usingvalidation and substitution. In validation and substitution, the SAP system checkswhether the data entered meets one or more of the conditions that you defined.These checks take place during data entry, thereby ensuring that only valid datais posted.

You create validations and substitutions for the controlling area and for a particularevent. An event is a particular point in transaction processing. The followingevents have been defined for the Management Accounting component:

• The “document row” (0001) callup point uses data from the ManagementAccounting document header (COBK) and Management Accounting codingblock (COBL) structures. It controls posting in external accounting as wellas in Management Accounting.

• The “document header” (0100) callup point uses data from COBK andaffects only manual Management Accounting postings, such as transferpostings or activity allocations.

• The event “CO Internal Posting: Sender/Receiver” (0002) is used onlyfor Management Accounting internal postings, and is used for checkingsender-receiver relationships in periodic allocations.

You use validation to carry out validity checks on objects such as cost elements orcost centers. If the conditions you specified for executing business transactionsare not met, the SAP system displays a user-defined message. This could bea warning, error or information message, or the system stops your posting withimmediate effect.


TFIN20_1 Lesson: Account Assignment Tools

Substitution

Figure 54: Substitution

You can also carry out validation checks when making substitutions. However,if your condition is met for a substitution, the SAP system substitutes the valueswith others defined by you without informing the user of this change.

An additional event - the Order Event (0010) is defined for substitutions. This isused only for collective processing of order master data.

If you have defined a substitution that contradicts a validation condition, thesystem informs you of this by displaying a message. We can therefore say thatvalidation has priority, or is “stronger” than substitution.



Lesson Summary

You should now be able to:• Describe the configuration options that facilitate postings.


TFIN20_1 Lesson: Adjustment postings

Lesson: Adjustment postings

Lesson OverviewThe options for correcting posting errors are shown here.


• Correct original postings made to incorrect cost centers.

Business ExamplePosting documents from HR and MM are often very extensive. Try to devise easyways to correct faulty account assignments in Management Accounting.

Manual Postings of Costs and Revenues

Figure 55: Manual Postings of Costs and Revenues

You can manually repost primary costs and revenues using event-based repostings.You use this function mainly to adjust (correct) posting errors.

When you make an internal reposting, the primary costs are reposted (underthe original cost element) to a receiving order. If the initial transaction is postedusing an incorrect cost or revenue element, the transaction must be correctedin the original application component in order to ensure reconciliation betweenexternal and internal accounting.



Note that no sender check is made, in other words the system does not checkwhether the costs you repost actually exist on the sending cost center. This meansthat negative costs may appear on the sending cost center.

The business transaction is documented by means of line items on the senderside and receiver side.

You can use the system to make event-based repostings automatically. Followinga collective posting in Financial Accounting that was assigned to a clearing costcenter, these automatic repostings are used to post the values in ManagementAccounting to the actual originators of the costs. For example, salary postingsfrom the personnel department can be posted in their entirety to a clearingcost center, thus keeping the number of postings in Financial Accountingto a minimum. This summarized posting is passed through to ManagementAccounting. In order for the payroll information to be useful to ManagementAccounting, however, the costs need to be assigned to the responsible cost centers.The reposting credits the clearing cost center and debits the originator of the costsby the appropriate amount.

Reposting line items

Figure 56: Reposting line items

The function for reposting line items enables you to repost specific line itemsfrom Management Accounting documents. This function is designed to enableyou to correct primary postings that you assigned to the wrong accounts. Todo this, the Management Accounting document must contain a reference to theoriginal FI document.



Reposing line items is the equivalent of a reversal on the sender object.

You can also enter more than one receiver object.

Reposting line items creates Management Accounting documents which, unlikeevent-based repostings of costs, always contain a reference to the FI document.As a result, you can trace a line item reposting back to the original FinancialAccounting document.

If you repost a line item in Management Accounting, the original accountassignment object remains noted in the FI document. To correct the accountassignment object in the FI document, you will need to reverse the FI document.If you have already carried out a line item reposting in Management Accountingfor this document, you will first need to reverse this reposting before you canreverse the document in FI.





Exercise 9: Reposting Line Items

Exercise ObjectivesAfter completing this exercise, you will be able to:• Make corrections by reposting line items• Provide arguments for why error postings should be corrected in Financial

Accounting and in Management Accounting.

Business ExampleIn the project team, you have agreed to correct error postings in ManagementAccounting or Financial Accounting after discussion with the FinancialAccounting department. You post a line item in Management Accounting tobecome familiar with the function and with how the information is presented. Youwould also like to check whether it is possible to reverse the document in FinancialAccounting if the adjustment has already been made in Management Accounting.

Task 1:Repost the costs for office supplies (cost element 476000) to the “Organization”cost center that were assigned during the first exercise in this unit to the “FI/COConsulting” cost center.

1. Repost the line items for your document from exercise 7 (you noted downthe document number) in company code 1000 and in the current fiscal year.

Post the 07 (3,000.00 to the 301## cost center) posting item to the 201##cost center (Organization).

Task 2:Check the result of the reposting.

1. Enter the report Cost Centers: Actual/Plan/Variance for the current periodand the plan version 0. Execute the report for the receiver cost center 201##(Organization).




2. Display the actual line items for the cost centers in report row 476000 Officesupplies. Access the source document for the line item. Which cost center isdisplayed as the sender for cost element 476000 on the document?

3. How can you ensure that the correct receiver cost center 201## (Organization)is also displayed on the Financial Accounting document?


1. Check whether it is possible to reverse the document in FI (reversal reason01), even though the error posting was already corrected in CO. Reversal:

Yes/No:___________________________________________________________

Reason:




Task 4:Solve the following tasks:

1. When is it useful to correct an error posting in Financial Accounting and inManagement Accounting?

2. A staff member from the project team is less experienced with the repostingfunction than you are, and would like to know the following: A newlyopened cost center has not yet been debited with primary costs. Is it stillpossible to repost costs from this cost center to another cost center?Is it possible to repost line items from this cost center?



Solution 9: Reposting Line ItemsTask 1:Repost the costs for office supplies (cost element 476000) to the “Organization”cost center that were assigned during the first exercise in this unit to the “FI/COConsulting” cost center.

1. Repost the line items for your document from exercise 7 (you noted downthe document number) in company code 1000 and in the current fiscal year.

Post the 07 (3,000.00 to the 301## cost center) posting item to the 201##cost center (Organization).

a) Cost Center Accounting: Actual Postings → Repost Line Items→ Enter


Document number See exercise 7

In line item 07, change account assignment 1 from

Cost center 301## to cost center 201##.

Save your data!




Task 2:Check the result of the reposting.

1. Enter the report Cost Centers: Actual/Plan/Variance for the current periodand the plan version 0. Execute the report for the receiver cost center 201##(Organization).

a) Cost Center Accounting: Information System → Reports for CostCenter Accounting → Plan/Actual Comparisons → Cost Centers:Actual/Plan/Variance

b)



Fiscal Year Current

From Period Current

To Period Current

Plan Version 0

Cost center (values) 201##

Program → Execute

2. Display the actual line items for the cost centers in report row 476000 Officesupplies. Access the source document for the line item. Which cost center isdisplayed as the sender for cost element 476000 on the document?

Answer: Position your cursor on report row cost element 476000.Double-click the report row.Select the Actual Line Items report.Position your cursor on the line item with the reposting amount 3000.Choose Environment → Source Document or double-click the report rowCost center 201##

3. How can you ensure that the correct receiver cost center 201## (Organization)is also displayed on the Financial Accounting document?

Answer: Reversal of incorrectly assigned posting in FI and reposting tocost center 201##





1. Check whether it is possible to reverse the document in FI (reversal reason01), even though the error posting was already corrected in CO. Reversal:

Yes/No:___________________________________________________________

Reason:

a) Accounting → Financial Accounting → General Ledger → Document→ Reverse → Individual Reversal

b)


Document number See exercise 1.1

Company Code 1000

Fiscal Year Current

Reversal reason 01

Save your data!

Error message: Reverse Management Accounting reposting documentfirst.


1. When is it useful to correct an error posting in Financial Accounting and inManagement Accounting?

Answer: If you want the correct receiver cost center to be displayed in theaccounting document, you will have to reverse the document in FinancialAccounting, otherwise you can repost the document in ManagementAccounting.

2. A staff member from the project team is less experienced with the repostingfunction than you are, and would like to know the following: A newlyopened cost center has not yet been debited with primary costs. Is it stillpossible to repost costs from this cost center to another cost center?

Is it possible to repost line items from this cost center?

Answer: You can manually repost costs→ no check on sender.You cannot repost line items→ no line item posted.



Lesson Summary

You should now be able to:• Correct original postings made to incorrect cost centers.



Lesson: Direct Activity Allocation

Lesson OverviewThe direct activity allocation deals with the measurement, posting and allocationof an organizational activity.


• Execute a direct accounting allocation and correct an accounting allocation.

Business ExampleYou want to enter all (consulting) activities, which you provide for a customer, toa cost object. You can use this to create the billing documents.

Direct Activity Allocation

Figure 57: Direct Activity Allocation

Direct activity allocation deals with the measurement, posting and allocationof an organizational activity.


TFIN20_1 Lesson: Direct Activity Allocation

You need to create the corresponding (measurable) tracing factors in the SAPsystem. These are known as activity types in Cost Center Accounting. To directlyallocate activity, create an activity type (activity type category 1 = manual entry,manual allocation).

If you want to enter a direct activity allocation, enter the cost center that providesthe activity (sender cost center), the object that receives the activity (receiver),the type (activity type), and the quantity of the activity provided. Bear in mindthat only one cost center can be the sender of an internal activity allocation. Thereceiver can be any real Management Accounting object such as a cost center,an order, a project, and so on.

To allocate activities directly, you need to define which cost centers are to providewhich activity types, by planning activity output. You do this by planningactivity output.

During direct activity allocation, the sender cost center is credited, and thereceiving cost objects are debited. The debits and credits are made using asecondary cost element (category “43”). Debiting and crediting are calculatedbased on the activity performed multiplied by the activity price.

As of Enhancement Package 4, you have the option of maintaining a differentvaluation date than the posting date for the determination of the price to be used.This is particularly useful if you later want to repost an activity allocation from aprevious period as it allows you to perform the reposting with the price that wasapplicable at that time. If you want to use the Valuation Date field, you haveto activate it in Customizing.

The cost element used for direct allocation of internal activity is derived directlyfrom the master data for the activity type. The cost element cannot be changedin the allocation transaction.

Direct activity allocation is recorded by line items on the sender side and receiverside.



Figure 58: Reposting Direct Activity Allocation

Reposting internal activity allocation is used to adjust posting fields.

A search function is available, which provides you with the documents you arelooking for.

The total quantity of the allocated activity must remain the same, however, youcan allocate the quantities to different receivers.

You can make adjustments in periods, but not in the same period from which thedocument to be adjusted originates. However, the fiscal year must remain the same.

You can repost the following documents for direct activity allocation:

• Documents entered manually into Cost Center Accounting• Management Accounting documents for confirmations (from Production

Planning and Controlling)• Management Accounting documents for time recording (from time sheet)

Reposting creates a reference in the reposting document to the ManagementAccounting source document.



Exercise 10: Direct Activity Allocation

Exercise ObjectivesAfter completing this exercise, you will be able to:• Debit the corresponding cost objects (direct activity allocation) with the

consultant activities

Business ExampleIn your project team, you have agreed that the consultants who work for acompany are to directly debit the cost objects set up for this once a week. For eachcompany customer, the CO-OPA team (overhead cost orders) has already set upan internal order as a cost object. On this internal order, you can analyze to whatextent each company has used consulting activity from the consulting department.

Task 1:The consultants enter the number of consulting hours that they have worked fordifferent projects.

1. The internal orders that already exist in the system act as cost collectors(consulting company A and consulting company B). The consultantsnormally enter their own activity, and thus trigger direct activity allocation.For test purposes, enter the consulting activity for the consultants, usingtoday's date in version 0, with screen variant Order. Now post thefollowing data in the list entry:

Sender cost center ActivityType

ReceiverOrder

Total Quantity

301## (FI/COConsulting)

J## Cons. A 800


S## Cons. A 1000

302## (LO Consulting) J## Cons. B 600

302## (LO Consulting) S## Cons. B 800




2. Display all the screen variants for direct activity allocation again in thematch-code. Why is the sender category never mentioned in the screenvariant name, but the receiver object is?

Task 2:Check the postings (for direct activity allocation) in reports in Cost CenterAccounting.

1. Call the report Cost Centers: Actual/Plan/Variance for the current periodand the plan version 0. Execute the report report in the cost center 301##(FI/CO Consulting).

2. Page down to display the allocated quantities.

3. Display the actual line items for cost centers for the report row in thesecondary cost element 6262## (senior consulting ##), or 6261## (juniorconsulting ##). Switch to the layout Secondary costs: Activity allocation.

4. Stay in the line item display, go to the accounting documents and take alook at the Financial Accounting document generated by the direct activityallocation.

5. Call the report Cost Centers: Activity Prices for the cost center group B30##in the version 0 for all periods of the current fiscal year to obtain anoverview of all the prices.



Solution 10: Direct Activity AllocationTask 1:The consultants enter the number of consulting hours that they have worked fordifferent projects.

1. The internal orders that already exist in the system act as cost collectors(consulting company A and consulting company B). The consultantsnormally enter their own activity, and thus trigger direct activity allocation.For test purposes, enter the consulting activity for the consultants, usingtoday's date in version 0, with screen variant Order. Now post thefollowing data in the list entry:




Sender cost center ActivityType

ReceiverOrder

Total Quantity


J## Cons. A 800


S## Cons. A 1000

302## (LO Consulting) J## Cons. B 600

302## (LO Consulting) S## Cons. B 800

a) Cost Center Accounting: Actual Postings → Activity Allocation →Enter

b) Select the screen variant Order


Document Date Current

Version: 0

Posting Date Current

Screen variant Order

Sender costcenter

Activity Type Receiver order Activityoutput

301## J## Cons. A 800

301## S## Cons. A 1000

302## J## Cons. B 600

302## S## Cons. B 800

Save your data!

2. Display all the screen variants for direct activity allocation again in thematch-code. Why is the sender category never mentioned in the screenvariant name, but the receiver object is?

Answer: Position your cursor on the screen variant field.Open the list of possible entries using the Match Code icon (F4 help).You cannot select the sender category on the screen variant because activitiescan only be allocated by cost centers.




Task 2:Check the postings (for direct activity allocation) in reports in Cost CenterAccounting.

1. Call the report Cost Centers: Actual/Plan/Variance for the current periodand the plan version 0. Execute the report report in the cost center 301##(FI/CO Consulting).


b)



Fiscal Year Current

From Period Current

To Period Current

Plan Version 0

Cost Center 301##

Program → Execute

Goto → Position → Pages → 3

2. Page down to display the allocated quantities.

Answer: Page down to display the allocated quantities.

3. Display the actual line items for cost centers for the report row in thesecondary cost element 6262## (senior consulting ##), or 6261## (juniorconsulting ##). Switch to the layout Secondary costs: Activity allocation.

Answer: Position your cursor on report row cost element 6262##.Double-click the report row.Choose the Actual Line Items report.Settings → Layout → SelectDisplay variant Secondary costs: Activity allocation




4. Stay in the line item display, go to the accounting documents and take alook at the Financial Accounting document generated by the direct activityallocation.

Answer: Position the cursor on the line item and choose Environment →Accounting Documents → accounting document.Select layout /990. You see the cost center and profit center being used. TheFinancial Accounting document was generated as a result of the real-timeintegration of the new general ledger (new G/L).

5. Call the report Cost Centers: Activity Prices for the cost center group B30##in the version 0 for all periods of the current fiscal year to obtain anoverview of all the prices.

a) Cost Center Accounting: Information System → Reports for CostCenter Accounting→ Prices → Cost Centers: Activity Prices

b)



Activity type(s) J##

Multiple selection icon S##

Copy icon.

Version: 0

Fiscal Year Current

Period from Current

Price unit 1

Program → Execute



Lesson Summary

You should now be able to:• Execute a direct accounting allocation and correct an accounting allocation.



Unit SummaryYou should now be able to:• Execute transactions in source applications and view the effect• Run totals reports and line item reports and explain additional functions

in the information system.• Describe the configuration options that facilitate postings.• Correct original postings made to incorrect cost centers.• Execute a direct accounting allocation and correct an accounting allocation.



Test Your Knowledge

1. In Financial Accounting you post to a Management Accounting relevantaccount. Which statements are true? You can...Choose the correct answer(s).□ A Debit a cost center as real.□ B Debit a cost center as real and an order as real.□ C Debit a cost center statistically and an order as real.□ D Debit a statistical order as real and a cost center as statistical

2. The advantage of is that more than one, or allvalues that you normally need to enter before executing a report group areautomatically displayed.Fill in the blanks to complete the sentence.

3. The can be an FI document, or forexample, an accounting document from a reposting.Fill in the blanks to complete the sentence.

4. The Default Account Assignment...Choose the correct answer(s).□ A is defined in the cost element master record.□ B chooses automatic account assignment when faced with

contradictory information.□ C can be overwritten.□ D is maintained in Customizing.

5. A validation can always contain only one stepDetermine whether this statement is true or false.□ True□ False

6. The substitution is stronger than (has priority over) the validation.Determine whether this statement is true or false.□ True□ False



7. The manual posting is always related to the Financial Management document.Determine whether this statement is true or false.□ True□ False

8. A sender check is carried out for the transaction “Reposting of Line Items”.Determine whether this statement is true or false.□ True□ False

9. The internal order can be the sender of a direct activity allocation.Determine whether this statement is true or false.□ True□ False

10. The system requires the activity type for the direct activity allocation.Determine whether this statement is true or false.□ True□ False

11. Debiting and crediting can be executed under a primary or a secondary costelement.Determine whether this statement is true or false.□ True□ False



Answers

1. In Financial Accounting you post to a Management Accounting relevantaccount. Which statements are true? You can...

Answer: A, C

A statistical order can only be debited statistically, a real order can only bedebited as real.You always have to debit an account assignment object as real.It is not possible to create real postings on several objects.

2. The advantage of user settings is that more than one, or all values that younormally need to enter before executing a report group are automaticallydisplayed.

Answer: user settings

3. The source document can be an FI document, or for example, an accountingdocument from a reposting.

Answer: source document

4. The Default Account Assignment...

Answer: C

You define the default account assignment in the cost element master record.This is a default value that can be overwritten.The assignment objects defined for automatic account assignments thereforetake priority over the additional account assignments for the default accountassignment.

5. A validation can always contain only one step

Answer: False

One validation is created per controlling area. A validation can containseveral steps.



6. The substitution is stronger than (has priority over) the validation.

Answer: False

The validation has priority over (is stronger than) the substitution.

7. The manual posting is always related to the Financial Management document.

Answer: False

The manual reposting is created without relation to the FI document.

8. A sender check is carried out for the transaction “Reposting of Line Items”.

Answer: True

When reposting line items, a sender check is carried which is not the casefor manual repostings.

9. The internal order can be the sender of a direct activity allocation.

Answer: False

The internal order can not be the sender of a direct activity allocation, onlythe receiver.

10. The system requires the activity type for the direct activity allocation.

Answer: True

The activity type is required for activity allocation.

11. Debiting and crediting can be executed under a primary or a secondary costelement.

Answer: False

Debiting and crediting that results from a direct activity allocation areexecuted a secondary cost element of the category 43.


Unit 5Period-End Closing

Unit OverviewAccrual calculation options are shown in this unit. You enter statistical key figures.This lesson explains periodic reposting, distribution, assessment and indirectactivity allocation, and explains the differences between them.

You learn how to define and execute periodic reposting, distribution andassessment.

The importance of the period lock is also discussed.


• Explain accrual calculation• Describe how to create an overhead structure• Enter statistical key figures• Define and execute the periodic reposting using the cycle segment method.• Demonstrate periodic reposting, distribution, and assessment and the

differences between them• Define and execute distributions and assessments using the cycle segment

method.• Name other cost allocation functions• Open and close whole periods, or selected business transactions in periods

Unit ContentsLesson: Accrual Calculation... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171

Exercise 11: Accrual Calculation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177Lesson: Entering Statistical Key Figures ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184

Exercise 12: Entering Statistical Key Figures ... . . . . . . . . . . . . . . . . . . . . . . .187Lesson: Periodic Reposting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193

Exercise 13: Periodic Reposting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199Lesson: Cost Allocations... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210

Exercise 14: Cost Allocations... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .227Exercise 15: Cost Allocations... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249


Unit 5: Period-End Closing TFIN20_1

Exercise 16: Indirect Activity Allocation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259Lesson: Period Lock... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .264


TFIN20_1 Lesson: Accrual Calculation

Lesson: Accrual Calculation

Lesson OverviewDetermining costing-based costs; in other words, costs for which there are nocorresponding expenses in Financial Accounting.


• Explain accrual calculation• Describe how to create an overhead structure

Business ExampleTo prevent periodic cost fluctuations in Cost Center Accounting, you shoulddistribute irregular expenses to the relevant periods. This can either be done byusing the percentage method or the target=actual method.

Imputed Costs

Figure 59: Imputed Costs

The value of all goods and services used is recorded as an expense for each period.



By contrast, the costs of all used goods and services that are incurred during thecreation of your own (“typical”) business activity are recorded as costs for eachperiod.

The non-operating expense is not recorded in Management Accounting as costs.

Accrued costs do not have a corresponding expense in Financial Accounting.They are only accrued for cost-accounting purposes. There are two different typesof accrual costs:

• Valuation differences, which have corresponding expenses of a differenceamount (for example, cost-accounting depreciation, imputed interest andso on)

• Additional costs, which do not have a corresponding expense (for example,management salary, imputed rents and so on)

To enable you to enter accrued costs, the mySAP ERP system provides variousmethods:

• Percentage Method• Plan=actual procedure• Target=actual procedure

To prevent periodic cost fluctuations in Cost Center Accounting, you shoulddistribute irregular expenses to the relevant periods. This business transaction isthe accrual calculation.

In my SAP ERP Enterprise, you can generate periodic postings automaticallyusing the Accrual Engine. You no longer need recurring entry documents withfixed values. Basic data that identifies what is to be accrued is entered in theAccrual Engine. The Accrual Engine then calculates the accruals and generatesthe required periodic postings.

For example, you carry out accruals in Financial Accounting when you wantto create monthly balance sheets. Alternatively, you carry out an accrual inManagement Accounting only. Calculating accrual results in accrued costs sincethey have corresponding expenses based on the amount.



Percentage Method

Figure 60: Percentage Method

To calculate accrued costs, use the percentage method. The calculation is based ona percentage overhead, which is related to a cost element or a cost element group.

Unlike accrual calculation with a recurring entry in Financial Accounting, thismethod has the advantage that the accrued costs are calculated using the actualcosts. The percentage method, for example, is useful for accrual calculations forlabor costs relevant to salaries, such as bonuses.

When an accrual is calculated, the system debits the cost centers with the accrualcost amounts. At the same time, a user-defined accrual object (cost center, orinternal order) is credited. The actual costs that arose are also posted to theaccrual object, so that all of the balances that exist between expenses in FinancialAccounting and accrued costs in Management Accounting are calculated,analyzed, and settled in the profitability analysis.

You create a primary accrual cost element (cost element category = 3) to processthe accrual calculation.



Figure 61: Definition of the Percentage Method

You create an overhead structure to define the accrual calculation. You need tostore the following keys for the accrual calculation:

• Basis Components

On the basis of which cost element(s) do you want overhead surchargesto be levied?

• Overhead

How high should the overhead percentage be?

• Credit

Under which cost element do you want the overhead to be posted? Whichcost center or internal order (accrual object) do you want to credit?

If you assign dependencies to the overhead key, you can specify conditions underwhich the overhead is calculated for a cost center. Depending on the cost element,you can, for example, post different overheads to different cost centers. You canadd standard SAP system dependencies to your own user-defined dependencies.

In Customizing, you can assign an overhead structure within a client to anycontrolling area. This assignment is made based on validity time periods,although you can change the assignment at any point in time.

You can have an overhead structure for actual accrual calculations and for eachversion for planned accrual calculation in your controlling area for any periodof time required.



Target = Actual Method of Accrual Calculation

Figure 62: Target=Actual Method of Accrual Calculation

You use the Target=Actual method to calculate accrual costs that areactivity-dependent and activity-independent, but for which the percentagemethod cannot be used, for example, because you cannot find a cost elementto define the overhead rates.

Proceed as follows: Plan your primary costs on the cost center, for the time periodin which you want to calcualte accrual. The system enters the planning values inthe fields for actual values during the accrual calculation.

Similar to the percentage method, an accrual object (cost center or internal order)collects the credits. In Customizing, you need to define only the credit object andvalidity period of the affected cost elements.

You use cost element category 4 to plan under a primary cost element (= accruedcost element/target=actual).

At the same time, you use the accrual transaction in the menu to start accrualcalculation (the percentage and target=actual method).

If you planned activity-dependent accrual costs, then the system includes theoperating rate of the cost center when the planning values are transferred to theactual data. If, for example, your operating rate in the actual data is double thatoriginally planned, the system calculates accrual for the doubled plan costs inthe actual data. For accrued costs that are planned independent of activity, theoperating rate of the cost center is not included or is set at 100%. This means that



the planning values are transferred unchanged to the actual data. The accrual ofplanned primary costs that are independent of activity can thus also be regarded asa plan=actual method of accrual calculation.



Exercise 11: Accrual Calculation

Exercise ObjectivesAfter completing this exercise, you will be able to:• Explain accrual calculation• Describe how an overhead structure is created.

Business ExampleThe project team has not decided whether it wants the accrual of salary relatedcosts to be calculated in Financial Accounting or Management Accounting. Youshall help with the decision making and explain the operation of the percentagemethod to the other team members.



Task 1:Describe the accrual/deferral procedure.

1. Describe the term base cost element.

2. Which three entries have to be made to define the overhead structurecompletely?

3. Why do you need to define an accrual object?

4. Do you have to create an overhead structure for every company code?


1. Examine the overhead structure ID-EU2, which is assigned to the controllingarea CO Europe (1000) for the actual accrual.

2. Identify the bases, which were assigned to this overhead structure, as wellas the cost elements they contain.




Basis Components Cost Elements

3. What is the percentual surcharge for line overtime salary for compancycode 1000?

4. What is the accrued costs type for the line overtime salary for company code1000, business area 8000 (external services)? Name the credit object typeand the name of the accrual object as well.

5. Would overtime salaries be accrued on the basis of the actual postings thathave already been made to you cost centers?



Solution 11: Accrual CalculationTask 1:Describe the accrual/deferral procedure.

1. Describe the term base cost element.

Answer: Cost element, which serve as the calculation basis for allowances.

2. Which three entries have to be made to define the overhead structurecompletely?

Answer: Base cost element(s)Overhead ratesAccrual object(s);

3. Why do you need to define an accrual object?

Answer: To credit a cost center periodically, using an accrual cost element,you must specify an accrual object as a recipient for the offsetting entry. Thisaccrual object in Management Accounting is also a debit object in FinancialAccounting since the actual (one-time) expense posting is assigned to theaccrual object. As a result, the periodic accruals in management accountingare balanced by the posting to an expense account in Financial Accountingon the accrual object.

4. Do you have to create an overhead structure for every company code?

Answer: No, an overhead structure is assigned to a controlling area. Youcan create an overhead structure for the actual accrual as well as per plannedversion. This structure can then be assigned to the controlling area.


1. Examine the overhead structure ID-EU2, which is assigned to the controllingarea CO Europe (1000) for the actual accrual.

a) SAP Reference IMG: Controlling → Cost Center Accounting → ActualPostings → Period-End Closing → Accrual Calculation → PercentageMethod → Maintain Overhead Structure→ Goto → CO Area Overview

b) Expand the actual accrual calculation node in controlling area 1000

Place the cursor on the current actual accrual calculation.

Goto → Select Assignment

2. Identify the bases, which were assigned to this overhead structure, as wellas the cost elements they contain.




Basis Components Cost Elements

a) Double-click each base.

b)

Field Name or Data Class Cost Elements

Basis Component A-B1 420000 – 421000

Goto → Back

Basis Component A-B2 430000

Goto → Back

3. What is the percentual surcharge for line overtime salary for compancycode 1000?

Answer: Double-click on surcharge IZ 21 in line overtime salary.The actual surcharge in company code 1000 is 2.50%.Goto → Back

4. What is the accrued costs type for the line overtime salary for company code1000, business area 8000 (external services)? Name the credit object typeand the name of the accrual object as well.

Answer: Double-click on this line in the credit column.Click the button Diff. Bus.AreaThe accrual cost element for company code 1000 and business area 8000 is431000.The accrual object is order 9AEUDE8000_P.




5. Would overtime salaries be accrued on the basis of the actual postings thathave already been made to you cost centers?

a) Cost Center Accounting: Information System → Reports for CostCenter Accounting→ Plan/Actual Comparisons → Range: CostElements

b)



Fiscal Year Current

From Period Current

To Period Current

Plan Version 0


Program → Execute

Overtime wage refers to overhead base A-B1, and in turn to costelements 420000-421000. These have as yet had no postings, so nocosts have been accrued.

Overtime salary relates to overhead rate base A-B2, which containscost element 430000. As salary postings have been made, an accrualrun would lead to salary overtime costs.



Lesson Summary

You should now be able to:• Explain accrual calculation• Describe how to create an overhead structure



Lesson: Entering Statistical Key Figures

Lesson OverviewStatistical key figures serve as a tracing factor for periodical allocations or forkey figures in reporting.


• Enter statistical key figures

Business ExampleYou can enter statistical key figures as a tracing factor for periodic allocations, orfor creating key figures in reporting.

Statistical key figures entry

Figure 63: Statistical key figures entry

You can enter statistical key figures as a tracing factor for periodic allocations,or for creating key figures in reporting. The costs from the clearing cost center“Telephone” can be allocated using the statistical key figure of “Telephone units”for example. If you enter “Employees” as a statistical key figure, then you canprovide a report on the cost centers, on the level of HR costs for each employee.


TFIN20_1 Lesson: Entering Statistical Key Figures

A decisive factor for statistical key figures is the way in which you create themas master records.

• Fixed values (category 01) are updated from the corresponding postingperiod onwards, in all of the following posting periods of the fiscal year.This takes place assuming that fixed values do not change over a longerperiod of time.

• Totals values (category 02) are only entered for each current period. Theychange from period to period, and therefore need to be re-entered in eachposting period.

You can also enter statistical key figures especially for an activity type on a costcenter (statistical key figures that are activity-dependent).





Exercise 12: Entering Statistical KeyFigures

Exercise ObjectivesAfter completing this exercise, you will be able to:• Enter statistical key figures that are used as the basis for periodic allocations.

Business ExampleThe costs on the “Telephone” cost center are to be allocated to all of the otherconsulting cost centers using periodic reposting. Telephone units on each costcenter are used for the allocation. The costs from the “IT Services” and “MotorPool” cost centers are allocated to the cost centers, based on the number of PCs, ornumber of miles traveled. You need to enter these statistical key figures beforeallocating the costs. The repair costs of the repair cost center should be allocated tothe production cost center. The number of the produced units of each cost center,represented by the key figure “produced units” should serve as a basis for this.

.

Task:Enter the statistical key figures that you need as tracing factors for period-endclosing tasks.

1. Use today's date as the document date, and the cost center screen variant.Remain in the list entry, and post the following data:

Hint: You can speed up data entry by using the Fill column function(updates the statistical key figure in the column), and the Resetcolumn (resets the statistical key figures from the row in which thecursor is placed).

Cost Center Statistical KeyFigure

Total Quantity

201## (Organization) TELE## 10,000

202## (IT service) TELE## 10,000

301## (FI/CO Consulting) TELE## 20,000

302## (LO Consulting) TELE## 40,000

201## (Organization) PC## 2

202## (IT service) PC## 5





Total Quantity

301## (FI/CO Consulting) PC## 18

302## (LO Consulting) PC## 12

301## (FI/CO Consulting) MI## 66,000

302## (LO Consulting) MI## 33,000

211## (PC) PROD## 2,000

212## (CHIP) PROD## 10,000

2. Check the effects of this posting in the current and following periods in thereport. Call the report Statistical Key Figures: Period Breakdown report forall periods of the current fiscal year and the plan version 0. Execute thereport for the cost center group SERVICE (SERV##).

Why are values also entered in the following periods for the statistical keyfigure PC##?

3. Use the navigation function to display the statistical key figure amounts forthe FI/CO Consulting (301##) cost center.



Solution 12: Entering Statistical KeyFiguresTask:Enter the statistical key figures that you need as tracing factors for period-endclosing tasks.

1. Use today's date as the document date, and the cost center screen variant.Remain in the list entry, and post the following data:

Hint: You can speed up data entry by using the Fill column function(updates the statistical key figure in the column), and the Resetcolumn (resets the statistical key figures from the row in which thecursor is placed).


Total Quantity














Total Quantity


211## (PC) PROD## 2,000

212## (CHIP) PROD## 10,000

a) Cost Center Accounting: Actual Postings → Statistical Key Figures→ Enter

b)


Document Date Current

Posting Date Current

Screen variant Cost Center


Total Quantity











211## (PC) PROD## 2,000

212## (CHIP) PROD## 10,000

Save your data!

2. Check the effects of this posting in the current and following periods in thereport. Call the report Statistical Key Figures: Period Breakdown report forall periods of the current fiscal year and the plan version 0. Execute thereport for the cost center group SERVICE (SERV##).




Why are values also entered in the following periods for the statistical keyfigure PC##?

a) Cost Center Accounting: Information System → Reports for CostCenter Accounting → More Reports → Statistical Key Figures: PeriodBreakdown

b)



Fiscal Year Current

From Period 1

To Period 12

Plan Version 0

Cost center group SERV##

Program → Execute

c) The PC## statistical key figure is defined as a fixed value, and is updatedas such from the entry period to the following period of the fiscal year.

3. Use the navigation function to display the statistical key figure amounts forthe FI/CO Consulting (301##) cost center.

Answer: Navigation on/off iconExpand node SERV## in the navigation bar.Choose cost center 301##.



Lesson Summary

You should now be able to:• Enter statistical key figures


TFIN20_1 Lesson: Periodic Reposting

Lesson: Periodic Reposting

Lesson OverviewPrimary cost postings are collected on an allocation object and allocated to thecorresponding controlling object according to their source at the end of the period.


• Define and execute the periodic reposting using the cycle segment method.

Business ExamplePrimary postings are collected on an allocation object and allocated to thecorresponding Management Accounting object as part of the period-end closing.

Periodic Reposting

Figure 64: Periodic Reposting

Periodic reposting is used as a posting aid.



Primary postings, such as telephone costs, are collected on an allocation object(cost center, overhead cost order, business process, WBS element, or cost object)to restrict the number of Financial Accounting postings as much as possible.These costs are allocated to the corresponding Management Accounting objectsduring period-end closing using a key defined by the user.

The receivers of a periodic reposting can be cost centers, WBS elements, internalorders, or cost objects. You can restrict the number of receiver categories inCustomizing.

You can only repost primary costs. During this process, the original cost elementremains the same.

Line items are posted for the sender as well as for the receiver, enabling theallocation to be recorded in detail. The SAP system does not save the informationfrom the clearing cost center in totals records during a periodic reposting. Thisenables the SAP system to save memory when storing the data records.

Periodic repostings can be reversed and repeated as often as required.

Cycle Segment Method

Figure 65: Cycle Segment Method

The cycle-segment method described below is used for defining periodicreposting and also for defining distribution and assessment.



To display the allocation relationships between the senders and receivers in thesystem, you need to make the following entries:

• From which object(s) are the costs allocated?• To which object(s) are the costs allocated?• Which costs are to be allocated?• On what basis are the costs split among the receivers?

A segment takes sender cost centers, in which allocation values are determinedbased on identical rules, and combines them with receiver objects, in which tracingfactors are determined based on identical rules. The costing center “Telephone” ,for example, allocates the telephone costs on the basis of the telephone units. Whenthe rules for an allocation differ, a separate segment must be created. The costcenter “Energy”, for example allocates the energy costs to the administration andthe consultancy cost center on the basis of the heated square meters of an office.

Several segments are grouped together in one cycle. You can define a cycle forthe entire controlling area. From system performance and allocation standpoints,however, it is best to create several cycles which are processed in sequence. Youcreate separate cycles for plan and actual allocations.

Sender and Receiver Rules

Figure 66: Sender and Receiver Rules

You can combine sender and receiver relationships using the rules above.



Sender values can be posted values, fixed amounts, as well as fixed prices. If youuse posted amounts, you can work with plan and actual values. You may specifya percentage rate that is less than 100%, resulting in a corresponding residualamount remaining with the sender cost center. For example, on the cafeteria costcenter, this enables you to take into account that the cafeteria employees also usethe resources in the cafeteria.

On the receiver side, you can store fixed amounts, fixed percentages, fixedportions, and variable portions as rules.

The tracing factor of the variable portion identifies a posted value on the costcenter as an allocation base. You also specify whether the variable portion is toconsist of costs, consumption, statistical key figures, or activities. You can useplan or actual values as an allocation base.

Executing Cycles Simultaneously

Figure 67: Executing Cycles Simultaneously

If you want to be more economical with the allocation process, you should createseparate cycles. If an error occurs in a cycle, you have to repeat that cycle onlyand not your total allocation process. You can also create a modular allocationprocess, scheduling allocations to process separately.

A dependent cycle uses the results from the previous cycle. You need to executedependent cycles in the correct order to enable the values to be processed correctly.On the execution screen, you can enter more than one cycle and the order in whichthey are to be processed.



Independent cycles can be processed in parallel if they have the same allocationtype. In addition, the cycles must be assigned to different cycle run groups. Thisassignment takes place in the header data of the cycle. You cannot process cyclesin the same cycle flow group in parallel. You can only start cycles simultaneouslyin different sessions if they belong to different cycle flow groups or if you usebackground processing.

Once processing is complete, you can check for errors using the processing log.You can use the information provided by the SAP system messages to analyzeall errors that occurred.





Exercise 13: Periodic Reposting

Exercise ObjectivesAfter completing this exercise, you will be able to:• Define a periodic reposting• Assign a periodic reposting to a cycle run group, and run the cycle.

Business ExampleThe costs on the “Telephone” cost center are to be allocated to all of the otherconsulting cost centers of the consultancy department using periodic reposting.Telephone units on each cost center are used for the allocation. To enable morethan one cycle in an allocation type to run at the same time in the organization,you need to assign them to different cycle run groups.

Task 1:Create a cycle with a segment to repost the costs from the telephone cost center tothe other cost centers in the consulting department.

1. Firstly, check the report Cost Centers: Actual/Plan/Variance to see if thetelephone costs of EUR 8,000 (cost element 473120) were correctly postedfor the current period.

2. Create reposting cycle PR## in the actual data. This cycle is to begin on thefirst day of the current fiscal year. Name the cycle Period. RepostingTelephone ##.

3. Add a segment Telephone with a description to all cost centers ##. Repostall of the actual amounts for the period (100%). Use variable portions astracing factors. These should be the statistical key figures in the actualdata.

4. Call up the Senders/Receivers tab page. The “Telephone” cost center (101##)is the sender for your allocation. You repost the telephone costs, cost element473120. The receiver of this allocation is cost center group PR-TELE##.

5. Call up the Receiver tracing factor tab page. Enter TELE## (number oftelephone units) as the statistical key figure. Return to the header data of thecycle. Save the cycle with checks. Remain in the header data of the cycle

6. To enable all of the cycles created in the course to be run at the same time,you need to assign the cycles to different run groups. Create run groupGR##, and name it PR Grp##. Save the cycle. When you save the cycle, thesystem automatically assigns it to run group GR##.

Call up the cycle run group again, and display the overview.




Task 2:Run the cycle for periodic reposting.

1. Run your cycle PR## in the test run for the current period. Selectprocessing with Detail lists.

2. Display the sender information for the PR## cycle. How was the senderbase calculated?

3. Display the receiver information for the PR## cycle. Then display the lineitems for the cycle. Why does the receiver list only have half as many rowsas the line item list?

4. Execute the periodic reposting in an update run to post the credits and debits.To do this, deselect the Test Run.

Task 3:Check the results of the periodic reposting.

1. Call the report Cost Centers: Actual/Plan/Variance for the current periodand the version 0. Execute the report for the sending cost center 101##(Telephone).

Which debit is displayed?

___________________________________________

How many credit records were written?

___________________________________________




2. Display the actual line items for the cost centers in report row for costelement 473120 (telephone costs)

3. Call the report Cost Centers: Drilldown by Partner for the cost element473120.Which information do you receive there via the partner of the periodicposting?

4. Call the reportCost Centers: Actual/Plan/Variant for the cost center 202##“IT Services”.

Make sure that the telephone costs are a result of periodic reposting and notof a primary posting.

5. Call the report Cost Centers: Breakdown by Partner for the cost element473120.Is the (partner) sender of the costs visible?Is the partner information important in this case?



Solution 13: Periodic RepostingTask 1:Create a cycle with a segment to repost the costs from the telephone cost center tothe other cost centers in the consulting department.

1. Firstly, check the report Cost Centers: Actual/Plan/Variance to see if thetelephone costs of EUR 8,000 (cost element 473120) were correctly postedfor the current period.


b)



Fiscal Year Current

From Period Current

To Period Current

Plan Version 0

Cost Center 101##

Cost Element 473120

Program → Execute




2. Create reposting cycle PR## in the actual data. This cycle is to begin on thefirst day of the current fiscal year. Name the cycle Period. RepostingTelephone ##.

a) Cost Center Accounting: Period-End Closing → Single Functions →Periodic Reposting→ Extras → Cycle → Create

b)


Cycle Name PR##

Start Date 01.01. Current fiscal year

Enter

Text Period. Reposting Telephone##

3. Add a segment Telephone with a description to all cost centers ##. Repostall of the actual amounts for the period (100%). Use variable portions astracing factors. These should be the statistical key figures in the actualdata.

a) Edit → Attach segment

b)


Segment name field 1 Telephone

Segment name field 2 To all cost centers ##

Sender Values

Rule Posted Amounts

Share in % 100

Actual values Select

Receiver tracing factor

Rule Variable portions

Type of Variable Portions Actual statistical key figures

Scaling of negative tracing factors No scaling




4. Call up the Senders/Receivers tab page. The “Telephone” cost center (101##)is the sender for your allocation. You repost the telephone costs, cost element473120. The receiver of this allocation is cost center group PR-TELE##.

a) Choose the Senders/Receivers tab page.

b)


Sender

Cost Center 101##

Cost Element 473120

Receivers


5. Call up the Receiver tracing factor tab page. Enter TELE## (number oftelephone units) as the statistical key figure. Return to the header data of thecycle. Save the cycle with checks. Remain in the header data of the cycle

a) Choose the Receiver tracing factor tab page.

b)


Selection criteria

Statistical key figure TELE##

Goto → Header Data

Cycle → Check → Formal Check

Save your data!

6. To enable all of the cycles created in the course to be run at the same time,you need to assign the cycles to different run groups. Create run groupGR##, and name it PR Grp##. Save the cycle. When you save the cycle, thesystem automatically assigns it to run group GR##.




Call up the cycle run group again, and display the overview.

a) Goto → Cycle Run Group

Create group icon

b)


Run group field 1 Gr##

Run group field 2 Parallelization PR Grp ##

Confirm your entries.

Save your data!

Goto → Cycle Run Group

Cycle run group overview icon.

Expand GR##.

Task 2:Run the cycle for periodic reposting.

1. Run your cycle PR## in the test run for the current period. Selectprocessing with Detail lists.

a) Cost Center Accounting: Period-End Closing → Single Functions →Periodic Reposting

b)


Period Current

Fiscal Year Current

Select Test run and Detail lists.

Cycle Name PR##

Periodic Repostings → Execute




2. Display the sender information for the PR## cycle. How was the senderbase calculated?

Answer: Goto → SenderThe sender base is the total of the statistical key figure TELE## on allreceiver cost centers. (80.000).

3. Display the receiver information for the PR## cycle. Then display the lineitems for the cycle. Why does the receiver list only have half as many rowsas the line item list?

Answer: Go back to the Basic List screen.Goto → ReceiverReview the list.Go back to the Basic List screen.Goto → Line itemsThe receiver listing shows only the debits posted to the receiver cost centers.The line item list also displays the credit postings on the sender cost center.

4. Execute the periodic reposting in an update run to post the credits and debits.To do this, deselect the Test Run.

Answer: Return to the initial screen for periodic repostings. Click on Testrun to deactivate this setting.Periodic Repostings → Execute

Task 3:Check the results of the periodic reposting.

1. Call the report Cost Centers: Actual/Plan/Variance for the current periodand the version 0. Execute the report for the sending cost center 101##(Telephone).

Which debit is displayed?

___________________________________________

How many credit records were written?




___________________________________________


b)



Fiscal Year Current

From Period Current

To Period Current

Plan Version 0

Cost Center 101##

Program → Execute

There is no debit on cost center 101##.

The system did not write any credit records.

2. Display the actual line items for the cost centers in report row for costelement 473120 (telephone costs)

a) Place your cursor on the report row for cost element 473120.

b) Double-click the report row.

c) Choose the report Cost Centers: Actual Line Items.

3. Call the report Cost Centers: Drilldown by Partner for the cost element473120.

Which information do you receive there via the partner of the periodicposting?

Answer: Return to the summary report.Place your cursor on the report row for cost element 473120.Double-click the report row.Choose the report Cost Centers: Drilldown by Partner.The report does not provide any information on the receivers since thepartners are not updated in the totals record during periodic reposting.

4. Call the reportCost Centers: Actual/Plan/Variant for the cost center 202##“IT Services”.




Make sure that the telephone costs are a result of periodic reposting and notof a primary posting.


b)



Fiscal Year Current

From Period Current

To Period Current

Plan Version 0

Cost Center 202##

Program → Execute

c) Place your cursor on the report row for cost element 473120.

Double-click the report row.

Choose the report Cost Centers: Actual Line Items.

Settings → Layout → Change

List: Column set

Select “bus. Transaction” from the list.

Left arrow show selected fields icon.

Transfer the “Show Selected Fields” icon.

5. Call the report Cost Centers: Breakdown by Partner for the cost element473120.

Is the (partner) sender of the costs visible?

Is the partner information important in this case?

Answer: Return to the summary report.Place your cursor on the report row for cost element 473120.Double-click the report row.Choose the report Cost Centers: Breakdown by Partner.You do not receive any information on the sender of the costs.



Lesson Summary

You should now be able to:• Define and execute the periodic reposting using the cycle segment method.



Lesson: Cost Allocations

Lesson OverviewPrimary and secondary cost postings are allocated by a sender object and allocatedto the corresponding Management Accounting Object according to their source atthe end of the period.


• Demonstrate periodic reposting, distribution, and assessment and thedifferences between them

• Define and execute distributions and assessments using the cycle segmentmethod.

• Name other cost allocation functions

Business ExampleThe distribution allocates primary costs and the assessment of primary andsecondary costs to the cost incurring Management Accounting objects.

DistributionCost centers function as senders in indirect activity allocation. The receiversof an indirect activity allocation can be cost centers, WBS elements, internalorders, cost objects or business processes.

Depending on the activity type category, you can use one of two allocationmethods:

• When you can determine the total activity for the sender, use indirectactivity allocation to distribute the posted activity quantities from the senderto the receiver based on specific keys.

• For activities that are to be planned on a sender object, use activity typecategory three (manual entry, indirect allocation). The correspondingsegment must use the sender rule “Posted quantities”. All receiver rulesare valid here except “fixed quantities”.


TFIN20_1 Lesson: Cost Allocations

Figure 68: distribution

The distribution was designed to transfer primary costs from a Sender Cost Centerto receiving Management Accounting objects. Only cost centers or businessprocesses can be used as a sender for the distribution.

A distribution receiver can be a cost center, WBS element, internal order, costobject or a business process. You can restrict the number of receiver categoriesin Customizing. You can only repost primary costs.

Primary postings (such as energy costs) are collected on a cost center andallocated at the end of the period by means of the user-defined key.

You can only distribute primary costs. During this process, the original costelement remains the same.

Line items are posted for the sender as well as for the receiver, enabling theallocation to be recorded in detail.

You can reverse distributions as often as required.

You use the Cycle-Segment method to define sender-receiver relationships.



Figure 69: Comparison: Periodic Reposting and Distribution

Differences between periodic reposting and distribution are due to informationcontent and performance.

For periodic reposting, no separate credit record is written to the sender for thecost element in the summary report. Instead, the totals record for the cost elementis reduced on the debit side, which means that the original debit amount can nolonger be checked there (“unclean credit”). However, during distribution, thesystem writes a totals record for the credit (“clean credit”). The information on thereceiver is the same for periodic reposting and distribution (“clean debit”).

Compared with periodic reposting, during distribution, the system also updatesthe partner in the totals record for the sender. This means that the partner can bedisplayed in the information system on the totals record level.

As fewer totals records are written during periodic reposting, performance isbetter than during distribution. See Customizing for an example with figuresthat illustrates this.



Assessment

Figure 70: Assessment

Assessment was created to transfer primary and secondary costs from a sendercost center to receiving Management Accounting objects. During assessment, costcenters or business processes can be used as senders.

An assessment receiver can be a cost center, WBS element, internal order, costobject or a business process. You can restrict the number of receiver categoriesin Customizing. You can only repost primary costs.

Primary and secondary postings are allocated at the end of the period by meansof the user-defined key.

During assessment, the original cost elements are grouped together intoassessment cost elements (secondary cost element category = 42). As the systemwrites fewer totals records, the assessment has a better performance than periodicreposting and distribution.

Line items are posted for the sender as well as for the receiver, enabling theallocation to be recorded in detail. The system does not display the original costelements on the receivers. Therefore, assessment is useful if the cost drilldownfor the receiver is not important, for example, as in the case of the allocationfor the "cafeteria" cost center.

Similar to distribution, the partner is updated in the totals record duringdistribution.

You can reverse assessments as often as required.

You use the Cycle-Segment method to define sender-receiver relationships.



Figure 71: Overview: Periodic Reposting, Distribution, and Assessment

You can only use periodic reposting and distribution for primary cost elements.The costs are transferred to the receivers using the original cost element, sothey are transferred to the primary cost elements of the receiver. Secondary costelements remain on the sender.

The assessment allocates primary as well as secondary costs. The informationon the original primary cost elements for the sender is lost because the costs areallocated using an assessment cost element (category 42). You can use more thanone assessment cost element for differentiation purposes.

For performance reasons, we recommend you use periodic reposting rather thandistribution, as the system does not write any sender/receiver relationships on thetotals records level for this. Assessment has the best performance as costs fromdifferent primary and secondary cost elements can be totaled in one posting tothe assessment cost element.



Cycles and Iterations

Figure 72: Cycles and Iterations (1)

This graphic shows two cycles with different sender-receiver relationships. Thereis a mutual relationship between two cost centers in cycle A as well as betweencost centers of cycle A and B. Because the cost centers can make allocations toeachother, the cost centers are not completely credited.

Figure 73: Cycles and Iterations (2)



The segment relationships within a cycle can be defined in such a way thatrepostings and allocations of cost centers with different segments take place (acost center is also a cost receiver). Cost centers that have already been creditedcan be recredited during the cycle processing . To guarantee a final cost centercredit the SAP system processes all sender and receiver relationships that weredefined in a cycle iteratively. The segments are processed until all senders arecredited according to their sender value.

If you deactivate the iteration indicator in the header of the cycle, the systemprocesses the segments according to their sequence. This processing is fasterthan in the iterative approach.

Cycles cannot be iterated with each other, even if they are of the same clearingtype. Therefore, when you create a cycle, ensure that cost centers with the sameallocation relationships are processed in the same cycle.

Cycle Header and Cycle Overview

Figure 74: Cycle Header

The formal check function enables you to test an individual cycle prior to anupdate run. You can use the error log to correct faulty segments and iterativerelationships (Customizing). The system checks, for example, whether the totalof percentage rates adds up to 100%, or whether the fixed value rules are thesame for both senders and receivers.



The system uses the object search to display the cycle using the field values youselected (cost center, activity type and so on) and to display the segment in whichthe values searched for arise. If you wish, you can call up the correspondingsegment using the field value.

You use the segment overview function to display all the segments used in acycle. If you want to display a particular segment, you can use the search functionto search for this segment within the cycle. You can use maintenance functionsto move segments in the segment overview list; this alters the sequence of thesegments when carrying out the allocation run.

You can sort and add segments in a cycle in line with your requirements.

You can display the change documents for cycle maintenance. The system logsvarious cycle and segment information or settings including the end date of thecycle, the date the cycle was last changed, the name of the last person to make achange, the segment name, the sender rule, the receiver rule, the sender percentagerate, the assessment cost element, and so on.

Figure 75: Cycle Overview

A cycle overview provides an overview of all cycles from one category, includingall relevant segments. The cycles for the selected allocation are displayed in amain tree. The segments are assigned to one level lower down in the hierarchyin each case. On the selection criteria tab strip, you specify which cycles andwhat additional information is to be displayed in the tree structure. On the cycleinformation tab strip, you can display data for a particular cycle or segment.This provides information on the general data, the number of segments for thecycle, the last time the cycle was run or reversed. For segments, you are providedwith information on the segment definition and the sender.



If you want to process data iteratively, activate the appropriate indicator in cycledefinition. The SAP system also includes cyclic relationships in the cost centernetwork, which means that a receiver can also be a sender.

The formal check function enables you to test an individual cycle prior to anupdate run. You can use the error log to correct faulty segments and iterativerelationships (Customizing). The system checks, for example, whether the totalof percentage rates adds up to 100%, or whether the fixed value rules are thesame for both senders and receivers.

If you activated the runtime log, you can display this after processing by choosingTechnical statistics.

Assessment: Allocation Structure

Figure 76: Assessment: Allocation Structure

For a clear picture of the costs that are to be assessed, you can summarizeindividual cost elements or cost element intervals into different assessment costelements.

You now decide in each segment whether to assign a single assessment costelement or an allocation structure.

In the allocation structure you can define which cost elements are to be allocatedunder which assessment cost elements. Therefore, you do not need to create morethan one segment to obtain information on the source of the costs to be assigned.

In the allocation structure, you can assign single cost elements, cost element areas,or cost element groups to an assessment cost element.



If required, you can go to the maintenance for allocation structures from thesegment maintenance, to display, change, or create an allocation structure.

Cumulative Allocation

Figure 77: Cumulative Allocation

Assessments, distributions and periodic repostings are usually executed by period.This means that values posted to a sender in a given period are allocated by theSAP system on the basis of the tracing factors that were entered in this period. Ifthe tracing factors or the sender amounts to be allocated are subject to strongfluctuations, and you are using period-based processing, you cannot assign theallocated costs according to their source. Cumulative processing of the tracingfactors or sender values lets you smooth out these fluctuations. It does this byspreading the allocations across periods.

You specify whether the cycle is to be carried out cumulatively on the headerscreen of cycle processing.

If you execute a cycle for which you have selected the indicator for cumulativeprocessing, the SAP system allocates the sender amounts posted up to andincluding the current period, based on allocated tracing factors accumulated fromperiod 1 onwards. The R/3 System also accumulates the allocation amounts it hasdetermined and posts them in the current period, minus the amounts allocatedin the prior periods. This ensures that the postings in the prior periods remainunchanged.

Cumulative processing is possible only for distributions, assessments, andperiodic repostings.



Cumulative processing is only advisable if the sender-receiver relationships arestable within the fiscal year. The SAP system checks whether this is the casewhen you execute cumulative processing.

Cumulative processing always accumulates values starting from period 1.

Segment Reverse and Rebook

Figure 78: Segment Reverse and Rebook

Many organizations have to change allocations from past periods. Auditcorrections, information that is received after period-end closing, and simpleerrors mean that corrections are necessary even months after allocations werefinished. Segment reversal and rebooking involves taking segments from aprevious period and posting a new allocation in the current period (using correctedreference data from the previous period).

The segment reversal deletes the allocation postings for the selected segment byreposting the results with reversed +/- signs. The data for the current period-endclosing transaction is not changed.

Segment reversal and rebooking deletes the allocation but retains the componentdata. If required, you can correct data from the previous period for a particularsegment or segments. You can change statistical key figures, switch round +/-signs, select different receivers, and make any other corrections necessary. Youcan use the rebooking functions only in combination with the reversal function:a separate transaction for rebookings does not exist.



Although the period that is to be reversed is normally closed, this does not have tobe the case. However, allocations belonging to the previous period must have usedthe cycle and the segments, and the current period must not be closed. You donot need to repeat period-end closing for the previous periods; reporting remainsconsistent for all the periods in question.

Segment adjustment is possible for assessment, distribution, and for periodicrepostings. Note that individual segments are reversed and rebooked, but notwhole cycles. Iterative relationships between cycles are not included. Thiscould cause inconsistencies and errors if you do not reverse and rebook iterativesegments at the same time

Figure 79: Reversing and Reposting Segments: Example

In this example, Cost Center A reposts its costs to Cost Centers B and C.Percentage rates were entered as tracing factors.

Between January and March cost center A posts its costs of UNI 100 in equal partsto cost centers B and C. In April, however, an employee sees that the allocationbases were incorrect. The reposting is to be made, with a 75% portion for costcenter B, and 25% for cost center C. You have to reverse the reposting allocationfor the closed periods (January through March).

Segment reverse in April cancels the allocations that took place from Cost CenterA to Cost Centers B and C in January, February, and March. Cost Center A isdebited with 3 × 100 = 300.

Cost Centers B and C are credited with 3 × 50 = 150. (The correction is posted inApril, not in the original posting period.)



The segment reposting in April is a corrected reposting for the three previousperiods using the new tracing factor. Cost Center A is credited with 300. CostCenter Cost Center B is debited (75% of 1000) × 300 = 225. Cost Center CostCenter C is debited (25% of 1000) × 300 = 75.

The standard reposting for April is now made on the basis of the new tracing factor.

Manual Cost Allocation

Figure 80: Manual Cost Allocation

Manual cost allocation lets you post primary and secondary costs manually.Unlike the reposting of costs, which reduces the original debit line on the costcenter, a separate credit record is written to the sender.

You can avoid having to make time-consuming settings in Customizing by usingmanual cost allocation for simple allocations. Manual cost allocation also letsyou correct incorrect secondary postings and import data from external systems.Such adjustments do not involve a reversal, but a new allocation.

You can use manual cost allocation for all cost element categories. An exceptionto this is category 43 (allocation of activities/processes) which may only be usedfor activity allocation. Senders and receivers include cost centers, internalorders, WBS elements, business processes, networks, activities, customer orders,cost objects, and real estate objects.

Note that you can use manual cost allocation for actual data only.



If you carry out period-based allocation following manual allocation, ensure thatall the cost elements used in the manual posting are contained in the allocationscheme for automatic allocation. Costs that are debited to a cost center by manualcost allocation cannot be further debited using periodic reposting. Periodicrepostings are used only to correct postings, and should be carried out before theallocations (manual or automatic) take place.

Indirect Activity Allocation in the Actual

Figure 81: Indirect Activity Allocation in Actual Data (Category 3)

Indirect activity allocation automatically assigns activities in the actual data.Unlike the direct, manual allocation of activity, you need to define keys for theautomatic periodic allocation of actual activities. In the same way as all otherperiodic allocation methods, indirect activity allocation uses segments and cycles,to define sender and receiver relationships. You define the processing methods persegment. Different processing methods can occur within a given segment. Thecosts are allocated using a secondary cost element from category 43. The costelement assignment is taken from the master data for cost elements for the costcenter/activity type plan, and can be changed.

Cost centers function as senders in indirect activity allocation. The receiversof an indirect activity allocation can be cost centers, WBS elements, internalorders, cost objects, or business processes.



Depending on the activity type category, you can use one of two allocationmethods:

• When you can determine the total activity for the sender, use indirectactivity allocation to distribute the posted activity quantities from the senderto the receiver based on specific keys.

• For activities that are to be planned on a sender object, use activity typecategory three (manual entry, indirect allocation). The correspondingsegment must use the sender rule “Posted quantities”. All receiver rulesare valid here except “fixed quantities”.

Figure 82: Indirect Activity Allocation in Actual Data (Category 2)

For activity types whose actual activity quantities cannot be calculated or canonly be calculated in a time-consuming manner, the SAP System determinesthe activities using the following methods:

• The sender activity quantity is derived from the receiver tracing factors (withglobal or a weighted factor that is defined per sender)

• The sender activity is derived from the corresponding entries in the segmentdefinition (as a fixed sender or receiver quantity)

This second form of indirect activity allocation uses activity type category 2(indirect entry, indirect allocation). The corresponding segment must either usethe sender rule “Inversely Calculated Quantity” along with any receiver rule,or the identical sender and receiver rules “Fixed Quantities”. If you use senderrules for “inversely calculating the quantity”, the sender-specific weighting factorsmentioned above are calculated with the sender values function (default value= 1).



When the cycle is run, the system first calculates the allocation bases of thereceivers, to determine how the activities of the sender should be distributed. Thesum of the tracing factors, multiplied by the “sender values” is the total activityof the sender. This quantity is then credited to the sender and debited to thereceivers accordingly.





Exercise 14: Cost Allocations

Exercise ObjectivesAfter completing this exercise, you will be able to:• Define and execute an assessment cycle with more than one segment• Explain segment iteration• Use different functions for segment and cycle management.

Business ExampleMost cost centers in your organization are credited using assessment. During thisprocess, cost centers are debited simultaneously. As more than one cost centeris involved in assessment, you prefer clearer, more convenient display and useof the data quantities.


1. Explain to the project team members why you did not choose distribution tocredit the “Telephone” cost center. Distribution would also have transferredthe primary costs.

Task 2:Create an assessment cycle with more than one segment to credit the“Organization”, “IT Services”, and “Motor Pool” cost centers.

1. Create cycle ASSE## in the actual data. This cycle is to begin on the firstday of the current fiscal year. Name the cycle Assessment ConsultingDepartment##. Deselect the Iterative indicator. Define a segment for eachof the different assessment relationships.




1st segment

• Add a segment ORGA## with the description Assessment 201## bypercentages. The allocation cost element is 6300##. 100% of theposted actual costs are to be assessed using fixed percentages.

• Choose the Sender/Receiver tab page. The 201## cost center(Organization) is the sender for the assessment. The system allocatesall of the cost elements in the 4000000 to 650000 interval. TheASSE-OR## cost center group is the receiver for the assessment.

• Choose the Receiver tracing factor tab page. The “Organization”cost center uses 60% of its time and resources for FI/CO Consulting(301##), 30% for LO Consulting (302##), and the remaining 10%for the “IT Services” cost center (202##).

2nd segment

• Add a segment IT-SERV## with the description Assessment 202##by PC. The allocation cost element is 6310##. 100%of the postedactual costs are to be assessed using variable portions of the actualstatistical key figure.

• Choose the Sender/Receiver tab page. The 202## cost center (ITServices) is the sender for the assessment. The system allocatesall of the cost elements in the 4000000 to 650000 interval. TheASSE-IT## cost center group is the receiver of the allocation.

• Choose the Receiver tracing factor tab page. Enter the statistical keyfigure PC## as a tracing factor for your allocations.

• As the consultants are often out of the office, their PCs require fewerrepairs than the PCs in the “Organization” cost center. You caninclude this on the Rec. wght factors tab page. For the 201## costcenter (Organization), enter a factor of 300, as repair expenses forthe PCs on that cost center are three times higher.




3rd segment

• Add a segmentMOTO## with the description Assessment 203##by mileage. The allocation cost element is 6311##. 100% of theposted actual costs are to be assessed using variable portions ofthe actual statistical key figure.

• Choose the Sender/Receiver tab page. The 203## cost center (MotorPool) is the sender for the assessment. The system allocates all of thecost elements in the 4000000 to 650000 interval. The consulting costcenters (cost center group B30##) are the receivers of the allocation.

• Choose the Receiver tracing factor tab page. Enter the statisticalkey figureMI## as a tracing factor for your allocations. Goto thesegment header. Carry out a formal check. Save your entries.

2. To enable all of the cycles created in the course to be run at the same time,you need to assign the cycles to different flow groups. Create a cycle rungroup Gr##, and name it Assessment Group##. (As this is a differentallocation category than in the previous exercise, the name GR## can beused again). Save the cycle.


1. Before you can execute the assessment, call the report Cost Centers:Actual/Plan/Variance for the current period and the version0. Execute thereport for the cost center group (B20##).

Which amounts are to be allocated from the 201## (Organization), 202##(IT Services), and 203## (Motor Pool) cost centers?

201## (Organiza-tion)________________________________________________

202## (ITServices)__________________________________________________

203## (MotorPool)__________________________________________________

Task 4:Run the actual cycle for the assessment.

1. Run the ASSE## cycle for the current period, with detail lists. Select TestRun.



2. Display the segments. What does the figure three signify in column R?

3. Call up the receivers for each segment. Note down each receiver cost center.

Receiver segment ORGA##:

1. 2. 3.

Receiver segment IT-SERV##

1. 2. 3.

Receivers segment MOTO##:

1. 2. 3.

4. Note down the entries that the 201## (Organization), 202## (IT Services)cost centers debited, and vice versa.201## (Organization) debits 202## (IT Service) with_______________202## (IT Services) debits 201## (Organization) with_______________

5. The cost center 202## (IT Services) allocates its costs on the basis of thenumber of PCs. Although the cost center 201## (Organization) only has 2PCs, a tracing factor of 6 is displayed. Provide an explanation for this.

6. Run the cycle in an update run to post the allocations.

Task 5:Check the result of the assessment in the report.

1. Call the report Cost Centers: Actual/Plan/Variance for the current periodand the version 0. Execute the report for the cost center group (B20##).



Although a 100% credit (sender rule) was defined for all the cost centers inthe assessment cycle, not all of the cost centers are credited. Which werenot credited?

_________________________________________

_________________________________________

_________________________________________

2. Why were these cost centers not completely credited?(See the notes for exercise 4-3)

Task 6:Now execute the assessment with iteration of the segments.

1. Reverse the assessment results of the ASSE## cycle first from the previousexercise. Execute the reversal in an update run.

2. Now change the ASSE## cycle by selecting the Iterative indicator in theheader data. Save the cycle.

3. Run the ASSE## assessment cycle again in an update run.



4. Call up the sender information and note down the sender amounts for the201## (Organization) and 202## (IT Services) cost centers.201## (Organiza-tion)________________________________________________202## (ITServices)__________________________________________________Compare the numbers with those from exercise 3. What do you notice?

5. Call up the line items. Note down the entries that the 201## (Organization),202## (IT Services) cost centers debited, and vice versa.201## (Organization) debits 202## (IT Service) with_______________202## (IT Services) debits 201## (Organization) with_______________Compare the numbers with those from exercise 4-4.What causes this difference?


1. Check the result of the assessment in the report Cost Centers:Actual/Plan/Variance for the current period and the version 0. Execute thereport for the cost center group (B20##). Go to each individual cost center.

What do you notice?

_____________________________________________

_____________________________________________

_____________________________________________



Task 8: OptionalManagement Accounting employees that were not directly involved in thedefinition of the cycles would like to have a brief overview of the allocationrelationships. Demonstrate the options provided by the mySAP ERP system toyour colleagues.

1. Call up the Cycle overview. Place the cursor in the cycle for the structureplan on the assessment cycle ASSE##, and call up the cycle information.

2. Display previous processing.

You can call up the document list by double-clicking on the cycle in theExecuted or reversed cycles dialog box. You can call up the line items bydouble-clicking on the corresponding document number.



Solution 14: Cost AllocationsTask 1:Carry out the following task:

1. Explain to the project team members why you did not choose distribution tocredit the “Telephone” cost center. Distribution would also have transferredthe primary costs.

Answer: The sender cost center does not require any information on theamount of the original debit.Senders and receivers do not require any partner information.Lower use of system resources.

Task 2:Create an assessment cycle with more than one segment to credit the“Organization”, “IT Services”, and “Motor Pool” cost centers.

1. Create cycle ASSE## in the actual data. This cycle is to begin on the firstday of the current fiscal year. Name the cycle Assessment ConsultingDepartment##. Deselect the Iterative indicator. Define a segment for eachof the different assessment relationships.

1st segment

• Add a segment ORGA## with the description Assessment 201## bypercentages. The allocation cost element is 6300##. 100% of theposted actual costs are to be assessed using fixed percentages.

• Choose the Sender/Receiver tab page. The 201## cost center(Organization) is the sender for the assessment. The system allocatesall of the cost elements in the 4000000 to 650000 interval. TheASSE-OR## cost center group is the receiver for the assessment.

• Choose the Receiver tracing factor tab page. The “Organization”cost center uses 60% of its time and resources for FI/CO Consulting(301##), 30% for LO Consulting (302##), and the remaining 10%for the “IT Services” cost center (202##).




2nd segment

• Add a segment IT-SERV## with the description Assessment 202##by PC. The allocation cost element is 6310##. 100%of the postedactual costs are to be assessed using variable portions of the actualstatistical key figure.

• Choose the Sender/Receiver tab page. The 202## cost center (ITServices) is the sender for the assessment. The system allocatesall of the cost elements in the 4000000 to 650000 interval. TheASSE-IT## cost center group is the receiver of the allocation.

• Choose the Receiver tracing factor tab page. Enter the statistical keyfigure PC## as a tracing factor for your allocations.

• As the consultants are often out of the office, their PCs require fewerrepairs than the PCs in the “Organization” cost center. You caninclude this on the Rec. wght factors tab page. For the 201## costcenter (Organization), enter a factor of 300, as repair expenses forthe PCs on that cost center are three times higher.

3rd segment

• Add a segmentMOTO## with the description Assessment 203##by mileage. The allocation cost element is 6311##. 100% of theposted actual costs are to be assessed using variable portions ofthe actual statistical key figure.

• Choose the Sender/Receiver tab page. The 203## cost center (MotorPool) is the sender for the assessment. The system allocates all of thecost elements in the 4000000 to 650000 interval. The consulting costcenters (cost center group B30##) are the receivers of the allocation.

• Choose the Receiver tracing factor tab page. Enter the statisticalkey figureMI## as a tracing factor for your allocations. Goto thesegment header. Carry out a formal check. Save your entries.

a) Cost Center Accounting: Period-End Closing → Single Functions →Allocations → Assessment → Extras → Cycle → Create

b)

Fields Values

Cycle Name ASSE##

Start Date 01/01 current fiscal year

Execute or Enter icon.




Text Assessment consulting dept ##

Iterative indicator Deselect

Version: 0

c) 1st segment

Edit → Attach segment

Segment name field 1 Orga##

Segment name field 2 Assessment 201## by percentage

Assessment Cost Element 6300##

Sender Values

Sender rule Posted Amounts

Share in % 100

Origin of actual values Select


Receiver rule Fixed percentages

Switch to the Senders/receivers tab page.

Sender

Cost Center 201##

Cost Element From 400000 to 650000

Receivers

Cost center group ASSE-OR##

Switch to the Receiver tracing factor tab page.

Receivers Percentage portion

202## 10

301## 60

302## 30

d) 2nd segment


Segment name field 1 IT-Serv##




Segment Name field 2 Assessment 202## by PC number

Assessment CEle 6300##

Sender Values

Sender rule Posted amounts

Share in % 100

Actual value origin Select

Receiver Tracing Factor

Receiver rule Variable portions

Variable Portion Type Actual statistical key figures


Sender

Cost Center 202##


Receivers

Cost center group Group ASSE-IT##


Fields Values

Statistical key figure PC##

Switch to the Receiver weighing factors tab page.

Receivers Factor per 100

201## 300

e) 3rd segment


Segment name field 1 MOTO##

Segment Name field 2 Assessment 203## by km number.

Assessment CEle 6311##

Sender Values

Sender rule Posted amounts




Share in % 100

Actual value origin Select

Receiver Tracing Factor


Variable Portion Type Actual statistical key figures


Sender

Cost Center 203##


Receivers



Fields Values

Statistical key figure MI##

Goto → Header Data

Formal check icon

Save your data!




2. To enable all of the cycles created in the course to be run at the same time,you need to assign the cycles to different flow groups. Create a cycle rungroup Gr##, and name it Assessment Group##. (As this is a differentallocation category than in the previous exercise, the name GR## can beused again). Save the cycle.

a) In the header data of the ASSE## assessment cycle.

Goto → Cycle Run Group → Create Group icon

b)

Fields Values

Run group field 1 GR##

Run group field 2 Assessment Gr##

Confirm your entries.

Save the cycle.


1. Before you can execute the assessment, call the report Cost Centers:Actual/Plan/Variance for the current period and the version0. Execute thereport for the cost center group (B20##).

Which amounts are to be allocated from the 201## (Organization), 202##(IT Services), and 203## (Motor Pool) cost centers?

201## (Organiza-tion)________________________________________________

202## (ITServices)__________________________________________________




203## (MotorPool)__________________________________________________


b)

Field name Values


Fiscal Year Current

From Period Current

To Period Current

Plan Version 0


Navigate to each individual cost center in the variation menu.

c) The following will be allocated:

Cost Center 201## 9.000.-

Cost Center 202## 36.000.-

Cost Center 203## 120.000.-




Task 4:Run the actual cycle for the assessment.

1. Run the ASSE## cycle for the current period, with detail lists. Select TestRun.

a) Cost Center Accounting: Period-End Closing → Single Functions →Allocations → Assessment

b)

Field name Values

Period Current

Fiscal Year Current

Test Run Select

Detail lists Select

Cycle Name ASSE##

Assessment → Execute.

2. Display the segments. What does the figure three signify in column R?

Answer: Goto → SegmentsColumn R displays the receiver rule stored in each segment. (F1 Help)3 signifies fixed percentages as the tracing factor.

3. Call up the receivers for each segment. Note down each receiver cost center.

Receiver segment ORGA##:

1. 2. 3.

Receiver segment IT-SERV##




1. 2. 3.

Receivers segment MOTO##:

1. 2. 3.

a) Place your cursor on the given segment.

Goto → Receiver

Repeat for each segment.

Receivers for segment ORGA## 202## 301## 302##

Receivers for segment IT-SERV## 201## 301## 302##

Receivers segment MOTO## --- 301## 302##

4. Note down the entries that the 201## (Organization), 202## (IT Services)cost centers debited, and vice versa.

201## (Organization) debits 202## (IT Service) with_______________

202## (IT Services) debits 201## (Organization) with_______________

Answer: From the basic listGoto → Line items201## debits 202## with 900.-202## debits 201## with 6,000

5. The cost center 202## (IT Services) allocates its costs on the basis of thenumber of PCs. Although the cost center 201## (Organization) only has 2PCs, a tracing factor of 6 is displayed. Provide an explanation for this.

Answer: Receiver tracing factors that are defined using the Variable portionsrule can be assigned with different weighting factors. This weighting factor,when multiplied with the tracing factor, enables you to take in to accountdifferences in costs caused by the individual receivers.Cost center 201## has 2 PCs that incur maintenance expense that is threetimes higher than for other cost centers, since they are used far more thanother cost centers' PCs. Due to the weighting factor of 300, the tracing factorfor assessment is increased from two to six.




6. Run the cycle in an update run to post the allocations.


b)

Field name Values

Period Current

Fiscal Year Current

Test Run Deselect

Detail lists Select

Cycle Name ASSE##


Task 5:Check the result of the assessment in the report.

1. Call the report Cost Centers: Actual/Plan/Variance for the current periodand the version 0. Execute the report for the cost center group (B20##).

Although a 100% credit (sender rule) was defined for all the cost centers inthe assessment cycle, not all of the cost centers are credited. Which werenot credited?

_________________________________________

_________________________________________




_________________________________________


b)

Field name Values


Fiscal Year Current

From Period Current

To Period Current

Plan Version 0


Cost center 201## Balance + 6,000

Cost center 202## Balance + 900

2. Why were these cost centers not completely credited?

(See the notes for exercise 4-3)

Answer: Cost centers 201## and 202## make allocations to each other.Since the assessment cycle was not defined iteratively, only one allocationrun takes place to credit the sender cost centers. Debits that arise from theassessment remain on the receiver cost centers.




Task 6:Now execute the assessment with iteration of the segments.

1. Reverse the assessment results of the ASSE## cycle first from the previousexercise. Execute the reversal in an update run.


b)

Field name Values

Period Current

Fiscal Year Current

Test Run Deselect

Detail lists Select

Cycle Name ASSE##

Assessment → Reverse

Enter

2. Now change the ASSE## cycle by selecting the Iterative indicator in theheader data. Save the cycle.

a) Extras → Cycle → Change

Cycle ASSE## Enter

Select the Iterative indicator in the cycle header data.

b) Save your data!





a) Go back to the initial screen of the assessment (Goto → Back.)

b)

Field name Values

Period Current

Fiscal Year Current

Test Run Deselect

Detail lists Select

Cycle Name ASSE##


4. Call up the sender information and note down the sender amounts for the201## (Organization) and 202## (IT Services) cost centers.

201## (Organiza-tion)________________________________________________

202## (ITServices)__________________________________________________

Compare the numbers with those from exercise 3. What do you notice?

Answer: Goto → SenderThe following was allocated:Cost Center 201## 15,254.24Cost Center 202## 37,525.42Due to iteration, the credit amounts on each sender cost center are higher.Goto → Basic list




5. Call up the line items. Note down the entries that the 201## (Organization),202## (IT Services) cost centers debited, and vice versa.

201## (Organization) debits 202## (IT Service) with_______________

202## (IT Services) debits 201## (Organization) with_______________

Compare the numbers with those from exercise 4-4.

What causes this difference?

Answer: Goto → Line items201## debits 202## with 1,525.42202## debits 201## with 6,254.24Both cost centers are credited 100%. This is because the initial debit on eachcost center from the first iteration of the assessment cycle was allocatedagain by the iterative cycle flow. During the first run, cost center 201##(Organization) debits cost center 202## (IT Service) with 900.00.


1. Check the result of the assessment in the report Cost Centers:Actual/Plan/Variance for the current period and the version 0. Execute thereport for the cost center group (B20##). Go to each individual cost center.

What do you notice?

_____________________________________________

_____________________________________________




_____________________________________________


b)

Field name Values


Fiscal Year Current

From Period Current

To Period Current

Plan Version 0

Cost Center Group B20##

Program → Execute

All cost centers are completely credited.

Task 8: OptionalManagement Accounting employees that were not directly involved in thedefinition of the cycles would like to have a brief overview of the allocationrelationships. Demonstrate the options provided by the mySAP ERP system toyour colleagues.

1. Call up the Cycle overview. Place the cursor in the cycle for the structureplan on the assessment cycle ASSE##, and call up the cycle information.

a) Cost Center Accounting: Period-End Closing → Single Functions →Allocations → Assessment → Extras → Cycle → Display Overview

b) Expand the ASSE## node. Double click ASSE##.

Click on the Cycle information tab page.

2. Display previous processing.

You can call up the document list by double-clicking on the cycle in theExecuted or reversed cycles dialog box. You can call up the line items bydouble-clicking on the corresponding document number.

a) Processed to date tab page

Double-click on the selected cycle in the Executed or reversed cyclesdialog box. Double-click on the selected document to see the lineitem view.



Exercise 15: Cost Allocations

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create an allocation structure.

Business ExampleYou feel that the assessment of a cost center that only has one assessment costelement is not detailed enough. As the assessment receiver, you require moredetailed information about the source of the cost elements, such as assessment ofpersonnel and material costs. However, you would like to avoid defining tensegments if, for example, you want to use ten assessment cost elements to credita cost center. You define an allocation structure so you can use more than oneassessment cost element in a segment.

Task 1:In future, the assessment of the “Motor Pool” cost center is to be more detailed,with two assessment cost elements. These are assessment of personnel costs andassessment of the vehicle costs. Define an allocation structure.

1. Create two assessment cost elements: 6316## (Assessment MotorMaterials ##), and 6317## (Assessment Motor Personnel ##), using costelement category 42.

2. In Customizing, define an allocation structure with the following text:Material and personnel costs. To name the structure, choose the first letterof the alphabet (A) if you are in group 01, B if you are in group 02, andJ if you are in group 10, and so on.

3. Define the assignment number 01, with the textMotor Material Costs,and the assignment number 02, with the text Personnel Costs. For eachassignment, specify which primary cost elements are to be allocated withwhich assessment cost element.

4. Select assignment 01, and go to the Source definition. You want to allocateall vehicle costs (from cost element 475000). Cost element 6316##(Assessment Motor Materials ##) is to be used as the assessment costelement for allocating the vehicle costs.

5. Select assignment 02, and go to the Source definition. You want to allocateall personnel costs (from cost element 420000 to 431000).

Cost element 6317## (Assessment Motor Personnel ##) is to be used as theassessment cost element for allocating the personnel costs.




Task 2:You want to familiarize yourself with the way the allocation structure works.

1. Reverse the assessment results of the ASSE## cycle first from the previousexercise.

2. Now call up your actual ASSE## cycle up in the change mode. Call up theSegment overview. Copy theMOTO## segment, and insert a copy. Namethe new segmentMOTO##NEW. This is where you enter your allocationstructure. As there are now two segments for assessment of the Motor Poolcost center, the system credited the cost center more than 100%. Therefore,you need to either delete the old segment MOTO##, or set the lockingindicator in the segment header. If you set the locking indicator, the segmentdefinition is retained, but is not included in the cycle run. Save your changes.


4. Call up the sender information. Although only three cost centers are involvedin the assessment, four rows are displayed in the sender list. Provide anexplanation for this


1. Check the result of the assessment in the report of a receiver. Call the reportCost Centers: Actual/Plan/Variance for the current period and the version0. Execute the report for the cost center 302## (Consultant LO)).

Which additional information do you now have on the receiver cost center?

______________________________________________

______________________________________________

______________________________________________



Solution 15: Cost AllocationsTask 1:In future, the assessment of the “Motor Pool” cost center is to be more detailed,with two assessment cost elements. These are assessment of personnel costs andassessment of the vehicle costs. Define an allocation structure.

1. Create two assessment cost elements: 6316## (Assessment MotorMaterials ##), and 6317## (Assessment Motor Personnel ##), using costelement category 42.

a) Cost Center Accounting: Master Data → Cost Element → IndividualProcessing → Create Secondary

b)


Cost Element 6316##

Valid from 01/01 current fiscal year

To 31.12.9999

Name Assess. Vehic-mat ##


Save your data!

Use the reference to create cost element 6317## (Assess. Vehic-Pers##).Change the name and description.




2. In Customizing, define an allocation structure with the following text:Material and personnel costs. To name the structure, choose the first letterof the alphabet (A) if you are in group 01, B if you are in group 02, andJ if you are in group 10, and so on.

a) SAP Reference IMG→ Controlling → Cost Center Accounting →Actual Postings → Period-End Closing → Assessment → DefineAllocation Structure → Edit → New Entries

b)


Structure See exercise

Text Material and personnel costs

Save your data!

3. Define the assignment number 01, with the textMotor Material Costs,and the assignment number 02, with the text Personnel Costs. For eachassignment, specify which primary cost elements are to be allocated withwhich assessment cost element.

a) Select the structure and switch to the Dialog Structure tree.

Double-click Assignments.

Edit → New Entries

b)

assignment Text

01 Vehicle material costs

02 Personnel Costs

Save your data!




4. Select assignment 01, and go to the Source definition. You want to allocateall vehicle costs (from cost element 475000). Cost element 6316##(Assessment Motor Materials ##) is to be used as the assessment costelement for allocating the vehicle costs.

a) Select Assignment 01, and switch to the Dialog Structure tree.

Double-click Source.

b)


Cost Element From 475000

Go to the Dialog Structure tree.

Double-click on Assessment cost element


Assessment cost element 6316##

Save your data!

5. Select assignment 02, and go to the Source definition. You want to allocateall personnel costs (from cost element 420000 to 431000).

Cost element 6317## (Assessment Motor Personnel ##) is to be used as theassessment cost element for allocating the personnel costs.

a) Return to assignments.

Select Assignment 02, and switch to the Dialog Structure tree.

Double-click on Source.


Cost Element From 420000

Cost Element To 431000

Go to the Dialog Structure tree.

Double-click on Assessment cost element


Assessment cost element 6317##

Save your data!Continued on next page



Task 2:You want to familiarize yourself with the way the allocation structure works.

1. Reverse the assessment results of the ASSE## cycle first from the previousexercise.


b)

Field name Values

Period Current

Fiscal Year Current

Test Run Deselect

Detail lists Select

Cycle Name ASSE##

Assessment → Reverse

Enter

2. Now call up your actual ASSE## cycle up in the change mode. Call up theSegment overview. Copy theMOTO## segment, and insert a copy. Namethe new segmentMOTO##NEW. This is where you enter your allocationstructure. As there are now two segments for assessment of the Motor Poolcost center, the system credited the cost center more than 100%. Therefore,




you need to either delete the old segment MOTO##, or set the lockingindicator in the segment header. If you set the locking indicator, the segmentdefinition is retained, but is not included in the cycle run. Save your changes.

a) Cost Center Accounting: Period-End Closing → Single Functions →Allocations → Assessment → Extras → Cycle → Change

b)

Fields Values

Cycle Name ASSE##

Start Date 01/01 current fiscal year

Execute icon

Goto → Segments Overview

Select the MOTO## segment.

Copy Segment icon. Enter

Insert Segment icon

Name MOTO##NEW

Select the new segment.

Double-click to go to the segment maintenance.

Place the cursor in the field for the assessment cost element.

Assessment Cost Element Delete

Allocation Structure Enter chosen name

Save your data!

Goto → Segments Overview

Select the MOTO## segment.

Choose icon

Set the Lock indicator (to the right of the segment name row).

Save your data!





a) Go to the initial screen for the actual assessment.

Goto → Back (twice).

b)

Field name Values

Period Current

Fiscal Year Current

Test Run Deselect

Detail lists Select

Cycle Name ASSE##


4. Call up the sender information. Although only three cost centers are involvedin the assessment, four rows are displayed in the sender list. Provide anexplanation for this

Answer: Goto → SenderThe sender list differentiates by sender cost element. In the allocationstructure, two assessment cost elements were defined to credit cost center203##. These cost elements are listed separately in the sender list.


1. Check the result of the assessment in the report of a receiver. Call the reportCost Centers: Actual/Plan/Variance for the current period and the version0. Execute the report for the cost center 302## (Consultant LO)).

Which additional information do you now have on the receiver cost center?

______________________________________________

______________________________________________




______________________________________________


b)

Field name Values


Fiscal Year Current

From Period Current

To Period Current

Plan Version 0

Cost Center 302##

Program → Execute

c) The report contains information on the content of the debit for costcenter 302##, with vehicle costs that are allocated using two assessmentcost elements, due to the allocation structure.

Cost center 302## is debited by the vehicles cost center, mainly due tomaterial costs.





Exercise 16: Indirect Activity Allocation

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create a cycle for indirect activity allocation

Business ExampleDuring the period, additional costs are posted to the repair cost center for repairs.At the end of the period, additional repair costs should be assigned to theproduction cost center according to their origin within the period-end closing.

Task: OptionalThe repair costs that were previously grouped together on the repair cost centershould be allocated to both production cost centers, chip and PC, by meansof indirect activity allocation. The output of each cost center (the number ofproduced units) should be the basis of the allocation.

1. Enter the sender activities in the repair cost center. The repair cost center“113##” provided “360 hours” of repair service in the current month.

2. Display the report for the cost center group “Technical Area S##”.

3. Define a cycle for the indirect activity allocation “ILV##”. The cycle shouldbe valid from the first day of the current fiscal year. Create a segment “repair## ” that allocates 100% of the posted actual quantities using variableportions of the “actual statistical key figure”. The repair cost center “113##”should be the sender of the allocation. The activity to be allocated is theactivity type repair “REP##”, receiver of the cost center group production“S20##”, that contains both cost center PC (211##) and CHIP (212##). Usethe statistical key figure “produced units(PROD##)” as the receiver tracingfactor.

Assign the cycle to a cycle run group Z##.

4. Execute the actual cycle for the indirect activity allocation.

5. Display the result of the allocation for the cost centers in the technical area(S##) in a suitable report.



Solution 16: Indirect Activity AllocationTask: OptionalThe repair costs that were previously grouped together on the repair cost centershould be allocated to both production cost centers, chip and PC, by meansof indirect activity allocation. The output of each cost center (the number ofproduced units) should be the basis of the allocation.

1. Enter the sender activities in the repair cost center. The repair cost center“113##” provided “360 hours” of repair service in the current month.

a) Enter the sender activities:Cost Center Accounting: Actual Postings →Sender Activities → Enter

Document Date Today’s date

Posting Date Today’s date

Screen variant Cost Center

Sender cost center 113##

SAtyTyp (Sender Act.Type) REP##

Quantity 360

2. Display the report for the cost center group “Technical Area S##”.


Fiscal Year Current

Period From 1

Period To 12

Plan Version 0

Cost center group S##

3. Define a cycle for the indirect activity allocation “ILV##”. The cycle shouldbe valid from the first day of the current fiscal year. Create a segment “repair## ” that allocates 100% of the posted actual quantities using variableportions of the “actual statistical key figure”. The repair cost center “113##”should be the sender of the allocation. The activity to be allocated is theactivity type repair “REP##”, receiver of the cost center group production




“S20##”, that contains both cost center PC (211##) and CHIP (212##). Usethe statistical key figure “produced units(PROD##)” as the receiver tracingfactor.

Assign the cycle to a cycle run group Z##.

a) Create a cycle with the name ILV## and the short description “repaircosts”.

Cost Center Accounting: Period-End Closing → Single Functions →Allocations → Indirect Activity Allocation

Extras → Cycle → Create

Cycle Name ILV##

Start Date 1. Current fiscal year day

Confirm your entries with Enter and enter any text, for example “repair costs ##”

Add a segmentEdit → Attach Segment

Segment name field 1 Rep ##

Segment name field 2 Repair costs production ##

Sender Values

Rule posted quantities

Share in % 100

Actual values Select



Type of Variable Portions Stat. Key Figures

Select the Senders/receivers tab.

Sender

Cost Center 113##

Activity Type REP##

Receivers

Cost center group S20##

Select the Receiver Tracing Factor tab.




Fields Values

Statistical key figure PROD##

Save the cycle and assign it to a cycle run group Cycle → Save cycle →No CheckGoto → Cycle Run Group → Create Group

Fields Values

Run group field 1 Z##

Run group field 2 Parallelization grp ##

4. Execute the actual cycle for the indirect activity allocation.

a) Also execute the cycle ILV## for the actual period, first in the testrun with detail lists.

Cost Center Accounting: Period-End Closing → Single Functions →Allocations → Indirect Activity Allocation

Field name Values

Period Current

Fiscal Year Current

Test Run Select

Detail lists Select

Cycle Name ILV##

After you receive a successful result, execute the cycle once again inthe update run.

5. Display the result of the allocation for the cost centers in the technical area(S##) in a suitable report.

a) Call the report Cost Centers: Actual/Plan/Variance for the cost centergroup S## and the current period in the current fiscal year. Cost CenterAccounting: Information System→ Reports for Cost Center Accounting→ Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance.

Fiscal Year Current

Period From Current

Period To Current

Plan Version 0

Cost center group S##



Lesson Summary

You should now be able to:• Demonstrate periodic reposting, distribution, and assessment and the


method.• Name other cost allocation functions



Lesson: Period Lock

Lesson OverviewUse the period lock to lock plan and actual business transactions for a combinationof controlling area, fiscal year and version.


• Open and close whole periods, or selected business transactions in periods

Business ExampleAfter ending the period-end closing, the period for postings should be locked sothat the period-end closing can no longer be influenced.

Period Lock

Figure 83: Period Lock

Use the period lock to lock plan and actual business transactions for a combinationof controlling area, fiscal year, and version.

You can select individual business transactions for locking from a list of all theactual and plan business transactions.

It is also possible to lock individual business transactions for all the periods of thefiscal year, or all business transactions for individual periods.


TFIN20_1 Lesson: Period Lock

Lesson Summary

You should now be able to:• Open and close whole periods, or selected business transactions in periods



Unit SummaryYou should now be able to:• Explain accrual calculation• Describe how to create an overhead structure• Enter statistical key figures• Define and execute the periodic reposting using the cycle segment method.• Demonstrate periodic reposting, distribution, and assessment and the


method.• Name other cost allocation functions• Open and close whole periods, or selected business transactions in periods



Test Your Knowledge

1. To calculate costs, use the percentage method.Fill in the blanks to complete the sentence.

2. You need a primary cost element of cost element category to processthe accrual calculation.Fill in the blanks to complete the sentence.

3. If you cannot find a cost element that you can use to define the overheadrates, you can also use the method to calculatethe accrualFill in the blanks to complete the sentence.

4. Statistical key figuresChoose the correct answer(s).□ A Those defined as fixed values are updated from the corresponding

posting period onwards, in all of the following posting periodsof the fiscal year.

□ B Can be used as a basis for periodical allocations.□ C Must be defined within the framework of the activity allocation.□ D Can not be changed once they have been entered.

5. The periodic reposting can only repost primary costs.Determine whether this statement is true or false.□ True□ False

6. A secondary allocation cosr element is required for carrying out periodicreposting.Determine whether this statement is true or false.□ True□ False

7. Cycles that are assigned to the same cycle run groups can run parallel toone another.Determine whether this statement is true or false.□ True□ False



8. What advantages does the distribution have compared to periodic reposting?

9. ApportionmentChoose the correct answer(s).□ A Can transfer primary and secondary costs.□ B Requires a primary cost element of type 42 to clear the costs.□ C Requires a secondary cost element of type 43 for clearing.□ D Can be reversed and repeated as often as required.□ E Can only be used in conjunction with the allocation structure.

10. You can select individual business transactions for locking from a list of theactual and plan business transactions.Determine whether this statement is true or false.□ True□ False



Answers

1. To calculate accrued costs, use the percentage method.

Answer: accrued

2. You need a primary cost element of cost element category 3 to process theaccrual calculation.

Answer: 3

3. If you cannot find a cost element that you can use to define the overheadrates, you can also use the Target=Actual method to calculate the accrual

Answer: Target=Actual

4. Statistical key figures

Answer: A, B

Fixed values are entered once and then updated in the following postingperiods. Statistical key figures can be used as a basis for periodicalallocations. They are not required for the activity allocation. The recordeddata can be changed at any time.

5. The periodic reposting can only repost primary costs.

Answer: True

Primary postings are allocated to the receiver objects with the aid of theperiodic reposting. Secondary costs are not allocated further.

6. A secondary allocation cosr element is required for carrying out periodicreposting.

Answer: False

During periodic reposting, the original cost element remains the same.



7. Cycles that are assigned to the same cycle run groups can run parallel toone another.

Answer: False

Cycles that are assigned to different cycle run groups can run parallel toone another.

8. What advantages does the distribution have compared to periodic reposting?

Answer: In comparison to periodic reposting in the totals record, distributionrepresents a complete credit record. Apart from that, you can see in the totalsrecord to which partner the clearing was made.

9. Apportionment

Answer: A, D

The assessment can further allocate primary and secondary costs by using asecondary cost element of type 42. It can be reversed and repeated as oftenas required.The allocation structure can be used to receive a more transparent imageof all costs to be assessed.

10. You can select individual business transactions for locking from a list of theactual and plan business transactions.

Answer: True

Both individual transactions and complete periods can be locked.


Unit 6Internal Orders: Overview

Unit OverviewThis chapter describes the various scenarios in which internal orders are used.It explains the flow of data in each area in which internal orders are used. Theparticipants learn to distinguish real and statistical orders.


• Identify the options for using overhead cost orders• Distinguish overhead cost orders from cost centers• Explain the significance of the overhead cost order as a cost collector and

an internal controlling object• Differentiate between real and statistical orders• Review the uses of these two variants• Explain the different uses of overhead cost orders and distinguish between

them• Understand the different handling of the orders in the scenarios shown• Explain the data flow in each area in which internal orders are used

Unit ContentsLesson: Using Overhead Orders .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272Lesson: Real and Statistical Orders.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .275Lesson: The Different Scenarios for Internal Orders .. . . . . . . . . . . . . . . . . . . . . .278


Unit 6: Internal Orders: Overview TFIN20_1

Lesson: Using Overhead Orders

Lesson OverviewYou learn about the options for using overhead cost orders and their importanceas internal controlling objects.


• Identify the options for using overhead cost orders• Distinguish overhead cost orders from cost centers• Explain the significance of the overhead cost order as a cost collector and

an internal controlling object

Business ExampleBefore you start working with internal orders within your company, you wouldlike to get an overview of the different types of orders that are available and whythey are used.

Figure 84: Using Overhead Orders

This example illustrates the main purpose of overhead order use in Overhead CostControlling. In the first case, you post costs for the two trade fairs directly to thecost center responsible for supporting these events. Because external costs and


TFIN20_1 Lesson: Using Overhead Orders

internal activities are treated with the same cost elements on the same cost center,you cannot easily determine which event created which costs. Therefore, you canmake no further comparison analyses of the two trade fair events.

If, however, each event is given its own overhead order, as in the second case, thecosts can be collected separately. The settlement function allocates the order coststo the cost center responsible for supporting the trade fairs, in order to provide youwith the organizational view of the costs. With this approach, you can analyzeand compare the results for the trade fairs, even after the settlement to the costcenter has been executed.

A further advantage is the wide variety of planning and budgeting functionsoffered for orders.

Figure 85: Internal Orders as Internal Cost Objects

Orders can be used as internal cost objects.

Depending on the kind of measure described on the order, there are differentways to settle this order.

If a job is for a single product, you could settle the costs to the responsible costcenter. The next step would then be to allocate the costs from the cost center toCO-PA.

If the job is a general one that concerns the whole company, it would be difficult tofind the appropriate cost center to debit. In this situation, it would be convenient tosettle directly to CO-PA.



Lesson Summary

You should now be able to:• Identify the options for using overhead cost orders• Distinguish overhead cost orders from cost centers• Explain the significance of the overhead cost order as a cost collector and

an internal controlling object


TFIN20_1 Lesson: Real and Statistical Orders

Lesson: Real and Statistical Orders

Lesson OverviewYou work out the most important differences between using real and statisticalorders and see what you have to consider for maintenance and posting.


• Differentiate between real and statistical orders• Review the uses of these two variants

Business ExampleYou see how to use real and/or statistic orders in enterprises and look at the specialfeatures of the two variants.

Figure 86: Real Orders

You can use overhead cost orders to conduct detailed controlling for a particularobject or activity. All costs concerning this object or activity are assigned to therelevant order. When you create an overhead order master record, you choosewhether to create it as a real order or a statistical order.

You use the real order to collect costs and allocate them later to different recipients.



In the primary cost posting, the costs are updated to the real order. In the periodicprocess of order settlement, you allocate the actual costs to controlling objects.You can settle portions of the order costs to many objects.

When you create a real order, you must assign the order to a company code. Ifyou have selected business area balance sheets in Financial Accounting, you mustalso assign the order to a business area.

Figure 87: Statistical Orders

You use the statistical order to evaluate costs which cannot be itemized in detail incost element or cost center accounting.

You achieve this by assigning the costs to both the statistical order and the costcenter. You immediately see the costs in the order (statistical, for informationpurposes only) and the cost center (real costs).

The cost center to be posted can be stored in the order master data. The systemthen finds the cost center automatically. Otherwise, you must specify the costcenter as well as the order to complete the posting document.

You also have the option on a statistical order whether to record a company codeand a business area on the order master record. If you make these assignments,you can only post transactions to controlling objects, such as cost centers, whichbelong to the same company code and business area. For cross-company code orcross-business area controlling, do not assign a company code or business areaon the statistical order.

You can neither settle statistical orders nor apply overhead to them.


TFIN20_1 Lesson: Real and Statistical Orders

Lesson Summary

You should now be able to:• Differentiate between real and statistical orders• Review the uses of these two variants



Lesson: The Different Scenarios for Internal Orders

Lesson OverviewYou learn about different variants of the overhead cost orders and obtain anoverview of the data flow of the orders used.


• Explain the different uses of overhead cost orders and distinguish betweenthem

• Understand the different handling of the orders in the scenarios shown• Explain the data flow in each area in which internal orders are used

Business ExampleYou want to use orders for different scenarios in enterprises and obtain anoverview of what you have to consider when using them. You would also like toget an idea about the data flow of the orders you use.

Figure 88: The Different Scenarios for Internal Orders

Internal orders in the SAP System describe individual jobs within a controllingarea. Orders support action-oriented planning, monitoring, and allocation of costs.


TFIN20_1 Lesson: The Different Scenarios for Internal Orders

Internal orders may be used for a variety of purposes:

• To monitor internal actions settled to cost centers (overhead cost orders)• To monitor internal actions settled to fixed assets (investment orders)• To offset postings of accrued costs calculated in Management Accounting

(accrual orders)• To display cost accounting sections of sales orders in Sales Order

Management and include revenues that are not part of the company's corebusiness (orders with revenues)

The management of internal orders represents the most detailed operational levelof cost and activity accounting and can be used for the following:

• You can consider costs according to aspects other than those used in costcenter accounting.

• You can compare in-house production and external procurement costs fordecision making purposes.

The primary focus of this course is overhead cost orders. The other types ofinternal orders are discussed in the chapter Special Subjects.

Figure 89: Investment Orders

The Investment Management (IM) component provides functions supportingthe planning, investment and financing processes involved in capital investmentmeasures within your enterprise. You can control measures that your companyundertakes for the purpose of producing long term assets for its own use, and whichhave to be entered in the balance sheet as assets under construction. A prerequisitefor this is an investment profile that is stored in the order master record.



Measures are represented in the system by either internal orders or WBS (workbreakdown structure) elements. You can create an internal order that automaticallyincludes an asset under construction. A prerequisite for this is the investmentprofile in the order master data.

In the construction phase, you post all transactions to the order. During periodicsettlement, all debits that do not have to be capitalized are settled to a ManagementAccounting receiver, such as a cost center. All items that are not to be settled toreceivers in Management Accounting and that require capitalization are settleddirectly to the asset under construction. The monthly evaluation balances displaythe capital investment undertaking in the asset inventory.

The full settlement takes place when the capital investment measure is completed.In complete or partial activation, you enter in the order settlement rules the finalassets which are to be the basis for the settlement of the asset under construction.The debits settled to the asset in construction are reposted to the final assets andthe asset under construction is automatically credited.

The settlement side includes a line item settlement procedure for this particularorder type in addition to the standard settlement methods for internal orders.

Figure 90: Accrual Orders

Internal orders can be used as collectors of monthly credits resulting from theaccrual calculation.

Organizational expenses are often allocated differently in Financial Accountingthan in Management Accounting. For example, an expense entered into FI in oneaccounting period may cover a whole year from a Management Accounting pointof view. In order to avoid cost fluctuations in Cost Center Accounting, costs that



do not occur on a regular basis should be allocated to the relevant time periods andcost centers. Any costs allocated on this basis are known as accrued costs. Thiseven distribution of an irregular expense is termed accrued cost.

You can use the percentage method or the target=actual method to calculateaccrued costs.

With the percentage method, you determine accrued costs on the basis of anoverhead percentage rate applied to a reference cost element or group of costelements.

When an accrual is calculated, the system debits the cost centers with the accrualcost amounts. At the same time, a user-defined accrual object (cost center orinternal order) is credited. The effective actual costs are also posted on the accrualobject in order to calculate, analyze, and allocate any balances between expensesfrom Financial Accounting and accrued costs from Management Accounting.

In the target=actual method you also can use an internal order for collecting thecredits.

Accrual calculation requires order category 02 (accrual calculation order).

Both methods of accrual cost calculation are handled in the courses AC410 CostCenter Accounting and AC412 Cost Center Accounting: Extended Functions.

Figure 91: Internal Order with Revenues

If you are not using the application Sales & Distribution, you can use internalorders with revenues to display the cost accounting sections for sales orders inSales Order Management. You can also use them to monitor costs and revenuesfor activities that are not part of your company's core business.



Using the identifier “Revenue postings allowed” in the order type, you can controlwhether or not revenues can be posted to an order.

Orders with revenues can be settled at the end of the period in the following ways:

• Costs can be settled to any receiver• Revenues can be settled primarily to the following objects:

– Profitability segments– Other orders with revenues– G/L Accounts– Not to cost centers!



Lesson Summary

You should now be able to:• Explain the different uses of overhead cost orders and distinguish between




Unit SummaryYou should now be able to:• Identify the options for using overhead cost orders• Distinguish overhead cost orders from cost centers• Explain the significance of the overhead cost order as a cost collector and

an internal controlling object• Differentiate between real and statistical orders• Review the uses of these two variants• Explain the different uses of overhead cost orders and distinguish between



Unit 7Master Data of Internal Orders

Unit OverviewIn this chapter we create both real and statistical overhead cost orders. In addition,the function of the order type is described, whereby the emphasis is on the numberrange, the field selection and the sample order.

The participants are familiarized with the user status options and learn to analyzethe effects of changes to the system status.

In addition, we create overhead cost order groups and process the orders assignedto them in the collective processing.


• Define an order type• Name a number of control characteristics of the order type• Create orders• Use the Order Manager• Change the screen layout control for internal orders• Maintain model orders• Understand the life cycle of the orders• Differentiate between the system and user statuses• Define your own user status profile• Collect orders into order groups• Process orders in both manual and automatic collective processing

Unit ContentsLesson: Master Data Maintenance ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .286

Exercise 17: Master Data ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291Lesson: Status Management for Overhead Cost Orders .. . . . . . . . . . . . . . . . .295

Exercise 18: Status Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .299Lesson: Grouping and Collective Processing ... . . . . . . . . . . . . . . . . . . . . . . . . . . . .305

Exercise 19: Grouping and Collective Processing ... . . . . . . . . . . . . . . . . . .309


Unit 7: Master Data of Internal Orders TFIN20_1

Lesson: Master Data Maintenance

Lesson Overview


• Define an order type• Name a number of control characteristics of the order type• Create orders• Use the Order Manager• Change the screen layout control for internal orders• Maintain model orders

Business ExampleThe organizational units have already been set up in IDES. You want to create anew order type so you can define your own orders. You create master records andlearn the settings that help you maintain the master data.

Figure 92: Order Type

Internal orders can only be created with reference to an order type.


TFIN20_1 Lesson: Master Data Maintenance

You must assign each order to an order type, which then transfers certainparameters to the order. Order types define the purpose of the order and the wayit is processed in the system. The order type may also be used to group togetherorders with similar characteristics.

The order type is valid for an entire client; therefore you can use an order typein any controlling area.

Among other things, the order type controls:

• Whether commitment management is active• Whether revenue postings are allowed• Order status management• Characteristics (required, optional, and so on) of master record fields• Whether the order number is internally or externally assigned, and the

number range• General parameters for settlement, planning, and budgeting• The presentation of the master data

The “CO Partner Update” indicator influences the performance considerably.Only set it where absolutely necessary.

Figure 93: Order Manager

Worklists and master data can be displayed in one screen at the same time usingthe Order Manager.



Master data can be grouped in a personal worklist or as a worklist generated usingvarious selection criteria and can then be processed in a number of ways. Withinthe worklist, you can:

• Search• Sort• Set filters• Show details• Select layouts• Run collective processing• and so on

You can also navigate into the data screen from the worklist.

Figure 94: Master Data Maintenance

The master data defines the attributes of an order, including organizationalassignments.

Overhead cost orders, like cost centers, are assigned to a company code anda controlling area. If you want to create business area balances in FinancialAccounting, you must also define a business area in the order master record.

To transfer values posted on orders to a profit center, you enter the profit centerin the order master data. All actual postings to the overhead order are passedalong automatically to the profit center. Plan values also may be transferred toprofit center planning if required.



If you assign an order to a work breakdown structure element (WBS element),you can monitor the value of the order in the Project System (PS). In addition,you may process the settlement of all orders assigned to the project automaticallyduring project settlement.

The remaining assignments possess informative value, meaning that they can beevaluated in the internal order information system. This information does notinfluence the posting of plan or actual costs.

Figure 95: Screen Layout

You can design your own screen layouts for the order master data. You thenassign the appropriate layout to the order type. If you do not assign a layout for anorder type, all fields are displayed in the standard layout.

The master data is displayed in up to five tab pages in a tab index. You can namethe tabs according to your own requirements.

The master data fields are distributed over nine predefined group boxes. You candisplay or hide the fields within the group boxes and set them as "Required" or"Optional" entry fields.

You can distribute these group boxes over the tab pages and specify where theyshould appear on the tab page.

The new order layout with tab pages is only available for overhead, accrual, modeland Management Accounting production orders (order categories 01, 02, 03 and04).





Exercise 17: Master Data

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create an order type• Create an order group and assign orders to this group• Use collective processing• Create a statistical order

Business ExampleThe Marketing, IT Services, and Motor Pool cost centers are among the groupsthat have identified an order requirement. You will create test orders for thesegroups to explore how the SAP system works.

You want to define a new order type so you can create these orders.

Task:In Customizing, create a new overhead cost order type for use by the Marketingdepartment for marketing brochures.

1. The order type MA## is for Group ## Marketing Brochures. Theorder category assigned to it is Internal Order (01). Make sure that anycommitments get updated. Assign status profile (00000002), settlementprofile (20), general planning profile (000001), and general budget profile(000001) to the order. Save the order type settings.

2. Assign your new order type to the Marketing group number range(400000-499999). Save the assignment.



Solution 17: Master DataTask:In Customizing, create a new overhead cost order type for use by the Marketingdepartment for marketing brochures.

1. The order type MA## is for Group ## Marketing Brochures. Theorder category assigned to it is Internal Order (01). Make sure that anycommitments get updated. Assign status profile (00000002), settlementprofile (20), general planning profile (000001), and general budget profile(000001) to the order. Save the order type settings.

a)

Hint: The menu path abbreviations used in the solutions areas follows:

Easy Access menu: Accounting → Controlling → InternalOrders

To reach the IMG: Tools → Customizing → IMG → ExecuteProject → SAP Reference IMG button.

b) IMG → Controlling → Internal Orders → Order Master Data →Define Order Types → New Entries

Enter 1 in the Order category field.

EnterMA## in the Order Type field.

Enter Group ## “Marketing Brochures” in the description field thatfollows the order type field.

Enter 20 in the Settlement prof. field.

Enter 000001 in the Planning profile field.

Enter 000001 in the Budget Profile field.

Enter 00000002 in the Status Profile field.

Select the Commit. Management indicator.

Choose Save.

Confirm the information message to continue.

Go back to the IMG.




2. Assign your new order type to the Marketing group number range(400000-499999). Save the assignment.

a) IMG → Controlling → Internal Orders → Order Master Data →Maintain Number Ranges for Orders

Choose Group → Maintain

Scroll all the way down to the order types that are not yet assigned.

Double-click your order type (MA##) – (the color will change slightlyonce you have selected your order type).

Scroll back up to the Marketing group (number range400000-499999).

Set the indicator next to this group.

Choose Edit → Assign element group.

Choose Save.

Go back to the IMG.



Lesson Summary

You should now be able to:• Define an order type• Name a number of control characteristics of the order type• Create orders• Use the Order Manager• Change the screen layout control for internal orders• Maintain model orders


TFIN20_1 Lesson: Status Management for Overhead Cost Orders

Lesson: Status Management for Overhead Cost Orders

Lesson Overview


• Understand the life cycle of the orders• Differentiate between the system and user statuses• Define your own user status profile

Business ExampleYou want to learn about the effects of the system status. Because you want toinsert an approval procedure between the opening and the release, you define auser status profile.

Figure 96: Status Management for Overhead Cost Orders

An order has its own life cycle, which begins when you create it and ends afteryou close it. During this time, costs are planned, posted and settled to the order.Status management informs you that a particular phase in the order life cycle hasbeen reached, and it controls which business transactions are valid for an orderat any given time.



The standard SAP System includes four system status settings: Created, Released,Technically Complete, and Closed. The system status allows only certain businesstransactions; for example, you cannot post actual costs in the phase “Created”.Changing the status of an overhead order is itself a business transaction and isdone in the order master record.

If the standard SAP system status settings are not detailed enough, you can createuser-defined status indicators for further subdivisions. The system and user statussettings together determine whether a transaction is valid. A status can: allowa business transaction; allow a business transaction with a warning; prohibita business transaction.

For example, you may want to switch to a planning approval procedure for highvalue orders before they are released. The initial system status of “Created” willallow the release transaction. To restrict this, you could create an “Unapproved”setting as your initial user status, which prohibits releasing the order. Asystem/user status combination of “Created, Approved” would be required beforethe order could be released and actual costs posted to it.

You can also define status-dependent field selections and authorizations for youruser status settings. The first allows you to control master data field maintenanceduring the order life cycle. The second allows you to define which users arepermitted to process transactions in different phases of the life cycle.

Figure 97: User Status

You define user statuses and associated rules in a status profile and assign theprofile to your order type.



The status profile allows you to:

• Define the user statuses• Assign a follow-up to your statuses• Define an initial status, which is automatically set when an order is created• Determine that a user status is automatically set during the execution of a

business transaction• Permit or forbid specific transactions

The status number assigns the sequence for the user statuses in a status profile.You can have only one user status with a status number active at a time. If youassign a status number to a user status, you will also specify a lowest and higheststatus number. This controls the subsequent user statuses; for example, if thecurrent status number is 20, and the highest status number is 40, you can updatethe order status to either 30 or 40, but not to 50.

It is not compulsory for you to define a status number for a user status. A userstatus that does not have a status number can be activated or deactivated at anytime, regardless of whether other user statuses are already active.





Exercise 18: Status Management

Exercise ObjectivesAfter completing this exercise, you will be able to:• Explain how status management works• Understand how a user status profile works

Business ExampleMarketing and IT Services will use real orders to collect the costs for services thatare provided for other cost centers. This way, the costs can be allocated (settled)to the cost centers that receive the services. The marketing order is an individualorder for a marketing brochure for a new model of cell phone. Since this is ashort-term order, it will be created as non-plan-integrated. The IT Services orderwill be a long-term order, that is, an order that is used for several fiscal years. Forthis reason, it must be a plan-integrated order.

Task 1:Create a new overhead cost order for developing a marketing brochure for a newcell phone model. Release the order so that you can begin posting transactionsfor it.

Hint: The first time you access a Controlling function after logging onto the system, the Set Controlling Area screen may be displayed. If thisscreen is displayed, enter 1000 in the Controlling area field.

1. Create the order “Cell Phone Marketing Brochure ##” using your neworder type (MA##). Assign the order to company code 1000, business area9900, and profit center 1402. Do not save the order master record yet.

2. Review the order status and check which business transactions are allowed.What are the system and user statuses? If you had already saved youroverhead cost order, would you still be able to process a materials purchaseorder for it? Would you still be able to process an incoming invoice?

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________




3. Release the order and look at the changes in the list of allowed businesstransactions. What is the user status now? Could you process an invoice forthis order now? Save the order after reviewing the status. Enter the ordernumber and record it in your Data Sheet.

_________________________________________________________

_________________________________________________________

Task 2:Create and release a plan-integrated overhead cost order for the IT Servicedepartment for the repair and maintenance of PCs.

1. Create the order master record PC Repair/Maintenance Group ## usingorder type 0850. Assign the order to company code 1000, business area9900, and profit center 1400. Do not save the order master record yet.

2. Release and save the order. Enter the order number and record it in yourData Sheet.

_________________________________________________________



Solution 18: Status ManagementTask 1:Create a new overhead cost order for developing a marketing brochure for a newcell phone model. Release the order so that you can begin posting transactionsfor it.

Hint: The first time you access a Controlling function after logging onto the system, the Set Controlling Area screen may be displayed. If thisscreen is displayed, enter 1000 in the Controlling area field.

1. Create the order “Cell Phone Marketing Brochure ##” using your neworder type (MA##). Assign the order to company code 1000, business area9900, and profit center 1402. Do not save the order master record yet.

a) SAP Easy Access menu → Internal Orders → Master Data → OrderManager

Choose Master Data → Create

EnterMA## in the Order type field.

EnterMarketing brochure ## in the description field.

Enter 1000 in the Company Code field.

Enter 9900 in the Business Area field.

Enter 1402 in the Profit Center field.

Please do NOT save the order master record.

2. Review the order status and check which business transactions are allowed.What are the system and user statuses? If you had already saved youroverhead cost order, would you still be able to process a materials purchaseorder for it? Would you still be able to process an incoming invoice?

_________________________________________________________

_________________________________________________________

_________________________________________________________




_________________________________________________________

a) Choose the “Control data” tab.

Choose Goto → Status

The System status of the order is Created (CRTD). The User status ofthe order is not set (blank).

Choose the “Business processes” tab.

Scroll down the list of permitted transactions to review the options.

You can process a material purchase order for this order.

However, you cannot process an incoming invoice.

3. Release the order and look at the changes in the list of allowed businesstransactions. What is the user status now? Could you process an invoice forthis order now? Save the order after reviewing the status. Enter the ordernumber and record it in your Data Sheet.

_________________________________________________________

_________________________________________________________

a) Go back (F3).

Choose Release.

Choose Allowed transacts.

Choose Save.

The order User status is authorized (Write plan line items PLIM).

Repeat the procedure from Exercise 2.2.

You are now able to process an incoming invoice for this order.




Task 2:Create and release a plan-integrated overhead cost order for the IT Servicedepartment for the repair and maintenance of PCs.

1. Create the order master record PC Repair/Maintenance Group ## usingorder type 0850. Assign the order to company code 1000, business area9900, and profit center 1400. Do not save the order master record yet.

a) See Exercise 2.1 (Order Manager), or:

SAP Easy Access menu → Internal Orders → Master Data → SpecialFunctions → Order → Create

Enter 0850 in the Order type field.

Choose Master Data.

Enter PC Repair/Maintenance Group ## in the Description field.




Do NOT save the order master record.

2. Release and save the order. Enter the order number and record it in yourData Sheet.

_________________________________________________________

a) Choose the Control data tab.

Choose Release.

Choose Save.



Lesson Summary

You should now be able to:• Understand the life cycle of the orders• Differentiate between the system and user statuses• Define your own user status profile


TFIN20_1 Lesson: Grouping and Collective Processing

Lesson: Grouping and Collective Processing

Lesson OverviewAs with cost centers, you can combine overhead cost orders inhierarchically-arranged groups. Here you will learn to group orders and process anumber of them with collective processing.


• Collect orders into order groups• Process orders in both manual and automatic collective processing

Business ExampleYou want to group orders and use these groups when planning and settling costs,calculating overhead rates, and creating reports. You want to familiarize yourselfwith collective processing so that you can process a number of orders together.

Figure 98: Order Groups

As in Cost Center Accounting, you can combine overhead orders inhierarchically-arranged groups. You can set up a structure using as many levels asyou wish. Order groups help in planning and settling costs, calculating overhead,and creating reports for any given combination of orders as defined by you.

Unlike Cost Center Accounting, however, order groups are client-dependent. Thismeans that you can use an order group name only once; you cannot use the samegroup name to create different group structures in different controlling areas.However, you can assign orders from any controlling area to an order group.



The “Create” group with reference function allows you to copy a group structureto a new group. The highest-level group name is created physically; the hierarchybelow this group is the same as the reference hierarchy. You can then modify thisnew group as required.

Order group maintenance also includes the “Copy” function with suffix function.You can copy an existing hierarchy and append a suffix to the groups in thehierarchy to create a historical view of the group structure. You can then save thehierarchy with the suffix and make changes to the current hierarchy to reflect yournew grouping requirements.

You can assign an order to multiple groups, but you cannot define a standardhierarchy.

If you create or change groups of internal orders, then you can also assign aselection variant to an end node. This provides you with a dynamic group, inwhich the contents can change. The system performance is better for groups ifthey do not have selection variants.

Figure 99: Manual Collective Processing

The SAP system provides functions which can be used to process multipleoverhead cost orders simultaneously.

You use selection variants to gather orders in a single listing for collectiveprocessing (for example, master data maintenance or order settlement). Alongwith order fields, you can also make selections on the basis of the following:

• Boolean formulas• Order classification data• Order settlement receivers



You can create an order group from the selected orders and use this group inreporting.

You can select the master data fields that you would like to process directly, thatis, you do not have to create any list variants (new feature in 4.6C).

Figure 100: Automatic Collective Processing

Automatic collective processing offers convenient options for changing multipleorders in one step. You can update the status of the orders or substitute values onthe order master record using this function.

Figure 101: Substitution Rules for Orders



Automatic collective processing offers convenient options for changing multipleorders in one step. You can update the status of the orders or substitute values inthe order master record using this function.

The definition of substitution rules is used to undertake collective changes fororders based on any desired criteria. Each rule consists of one or more steps,each comprising two main components:

• The prerequisite, as with the order list, is the definition of a selection variantthat finds the orders to be processed. It is defined using Boolean statements.The relevant values are substituted only if this precondition is met.

• The substitution contains the values to be transferred into the relevant fields.



Exercise 19: Grouping and CollectiveProcessing

Exercise ObjectivesAfter completing this exercise, you will be able to:• Collect orders into groups• Change a number of orders with collective processing

Business ExampleThe Motor Pool department creates a statistical order for each vehicle so thatthey can analyze the costs for each vehicle individually. The real costs should beposted to the Motor Pool cost center.

You will also create an order group so that you can process your orders collectively.


1. Create an order group to collectively process the orders that you havecreated. Call the group GR## and enter Order Group ## as a descriptionfor it. Assign the two orders that you created in the previous exercises tothis group. Save your order group.

Task 2:You forgot to assign your overhead cost orders to the cost centers responsible formanaging the orders. Update your order master records manually using collectiveprocessing.

1. Define your own selection variant (VAR##) in Customizing. Use yourorder group (GR##) as a selection criteria for calling up and processingyour orders.

2. Assign the marketing brochure order and the PC repair/maintenance orderto the cost center responsible for them (“Marketing” cost center 3200).Save your changes.




Task 3:Create a statistical overhead cost order. You want to analyze the costs for yournew company car in a different way to the Motor Pool cost center, which collectsthe costs of all vehicles.

1. Create the statistical order. Use statistical order type 1000. Name the orderAUTO## and add your group number to the short text. Assign the orderto business area 9900 and profit center 1400. Activate the statistical orderindicator and save your order. Record the order number on your data sheet.



Solution 19: Grouping and CollectiveProcessingTask 1:Carry out the following task:

1. Create an order group to collectively process the orders that you havecreated. Call the group GR## and enter Order Group ## as a descriptionfor it. Assign the two orders that you created in the previous exercises tothis group. Save your order group.

a) SAP Easy Access menu → Internal Orders → Master Data → OrderGroup → Create

Enter GR## in the Order Group field.

ENTER.

Enter Order Group ## as a description in the text field that appears.

Choose Edit → Order → Insert Order.

Enter the order numbers, one beneath the other, in the first column.

ENTER.

Choose Save.




Task 2:You forgot to assign your overhead cost orders to the cost centers responsible formanaging the orders. Update your order master records manually using collectiveprocessing.

1. Define your own selection variant (VAR##) in Customizing. Use yourorder group (GR##) as a selection criteria for calling up and processingyour orders.

a) IMG → Controlling → Internal Orders → Order Master Data →Selection and Collective Processing → Define Selection Variants

Choose Variants → Create

Enter VAR##.

ENTER.

Enter your order group GR## as a selection value.

Choose Save as Variant.

Enter Variant Group ## in the Meaning field.

Save your entries




2. Assign the marketing brochure order and the PC repair/maintenance orderto the cost center responsible for them (“Marketing” cost center 3200).Save your changes.

a) SAP Easy Access menu → Internal Orders → Master Data → SpecialFunctions → Collective Processing → Manually

Enter your selection variant (VAR## from exercise 5.1).

Choose Execute (F8).

Confirm any warning messages.

Choose Settings → Select Fields

Search the pool of available fields and select the line “ResponsibleCCtr” (Responsible Cost Center).

Once you have selected the line Responsible CCtr, transfer it intoyour list of selection criteria.

ENTER.

In the top part of the screen, click the column Responsible CCtr toselect it.

Enter cost center 3200.

Choose Edit → Change Field Values

Choose Save.

Confirm the dialog box by choosing “ALL”.




Task 3:Create a statistical overhead cost order. You want to analyze the costs for yournew company car in a different way to the Motor Pool cost center, which collectsthe costs of all vehicles.

1. Create the statistical order. Use statistical order type 1000. Name the orderAUTO## and add your group number to the short text. Assign the orderto business area 9900 and profit center 1400. Activate the statistical orderindicator and save your order. Record the order number on your data sheet.

a) SAP Easy Access menu → Internal Orders → Master Data → SpecialFunctions → Order → Create

Enter 1000 in the Order Type field.

Choose Master Data.

Enter AUTO## in the Order field.

Enter ## at the end of the text in the Description field (Statisticalorder vehicle: ##).

Check the following settings:

Business Area field should have the entry 9900.

Profit Center field should have the entry 1400.

Choose the “Control data” tab.

Check that the Statistical order indicator is selected.

Choose Save.



Lesson Summary

You should now be able to:• Collect orders into order groups• Process orders in both manual and automatic collective processing



Unit SummaryYou should now be able to:• Define an order type• Name a number of control characteristics of the order type• Create orders• Use the Order Manager• Change the screen layout control for internal orders• Maintain model orders• Understand the life cycle of the orders• Differentiate between the system and user statuses• Define your own user status profile• Collect orders into order groups• Process orders in both manual and automatic collective processing


Unit 8Transaction-Based Postings

Unit OverviewIn this unit, postings from various original applications are made to the overheadcost orders and subsequently analyzed. We also investigate the effects on realand statistical orders.

In the commitments management area, the participants see which settings arerequired to enter commitments on the orders and to trace the cost effects.


• Make event-related postings from original expenses to overhead cost orders• Analyze the results of the postings in reports• Make the required settings for commitment management• Understand the commitment values on the order• Explain the effect of the commitment carryforward

Unit ContentsLesson: Event-Based Postings Within and Outside ManagementAccounting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .318

Exercise 20: Transaction-Based Postings ... . . . . . . . . . . . . . . . . . . . . . . . . . . .323Lesson: Commitment Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .331

Exercise 21: Commitment Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .335


Unit 8: Transaction-Based Postings TFIN20_1

Lesson: Event-Based Postings Within and OutsideManagement Accounting

Lesson OverviewOrders are updated by event-based postings from different SAP applicationcomponents. Here you learn which events can be debited to overhead cost orders.


• Make event-related postings from original expenses to overhead cost orders• Analyze the results of the postings in reports

Business ExampleSince you have management responsibility for this application, you need tounderstand the flow of costs onto an order. Since the enterprise uses all of theSAP integrated application components, you will examine how business eventsrecorded in other applications affect your overhead orders. Additionally, you planto use functionality within Management Accounting to update information postedincorrectly, to record measures or statistics for your orders, and to record activitiesperformed by cost centers which are charged to orders.

Figure 102: Event-Based Postings by Means of Integration


TFIN20_1 Lesson: Event-Based Postings Within and Outside Management Accounting

Orders are updated by event-based postings from different SAP applicationcomponents, like in Cost Center Accounting.

In Financial Accounting, you can assign postings of primary costs (such as forexternal services and deliveries) to an overhead order.

In Materials Management, goods receipts and goods issues may result in primarycost postings to an overhead order.

Controlling

• To map commitments manually in Management Accounting, you need toenter funds commitments.

• Reposting functions allow you to post primary costs to an order. You can postsecondary costs from a cost center to an order with direct activity allocations.

• You can record statistical key figures for use as the basis for allocations toyour orders and for analyzing your orders.

When you post actual costs, the system automatically creates:

• Totals records• Line items

A totals record summarizes all the costs posted to the order under a particularcost element.

To post actual costs to an order, the order status must allow this type of businesstransaction.

Figure 103: Postings to Real and Statistical Orders



When you post actual costs to a real order, the costs are initially collected in theorder, and you then have the option of reposting or settling the costs to otherreceivers as required. If the order is assigned to a profit center in the master record,the actual costs are posted statistically to the profit center.

You can also specify a cost center when you post actual costs to a real order. Inthis case, the cost center receives a statistical posting of the actual costs. Thecosts are still managed at order level, but the cost information is also available foranalysis at cost center level.

When you are posting actual costs to a statistical order, you must enter a real costassignment object, such as a cost center, real order, or profitability segment. Youcan then manage the costs at controlling-object level, but you can analyze themin more detail at order level.

To facilitate data entry, you can assign a real cost center to a statistical order in theorder master record. The following two options are available:

• The system always uses the assigned cost center. In this case, if you entera different cost center manually, the system replaces it with the cost centerassigned in the order master record.

• The system uses the assigned cost center only if no other cost center has beenentered manually (deviating posting logic).

Figure 104: Postings in Management Accounting

You may also use event-based postings within Overhead Cost Controlling(CO-OM) for overhead orders. These functions are performed the same way asthe corresponding functions in Cost Center Accounting.



Event-based allocations are entered directly on screen and result in the immediatemovement of actual costs between the sender and receiver objects. The followingare event-based allocations for overhead orders:

• Reposting costs and revenues• Reposting line items• Direct Activity Allocation• Reposting direct activity allocations

Besides posting primary and secondary costs, you can post statistical key figuresto your orders. Statistical key figures are used as the basis for periodic costallocations to the orders and for order analysis.





Exercise 20: Transaction-Based Postings

Exercise ObjectivesAfter completing this exercise, you will be able to:• Make primary cost postings to real and statistical orders

Business ExampleYou know that the orders used by the IDES Group departments are updated whenbusiness transactions are carried out in Materials Management and FinancialAccounting, as well as directly in Management Accounting.

As a part of your review of the flow of costs into and within Controlling, youexecute standard G/L account postings in Financial Accounting to debit the "real"marketing brochure order and the statistical automobile order. This will clarifythe difference between them.

Task 1:Create G/L account postings for your marketing brochure overhead order and foryour motor pool order and compare the results in the information system.

1. Execute a posting of EUR 5,000 to your “Cell Phone ##” order for layoutconsulting services. The company code is 1000 and the cost element is417000 (purchased services). The offsetting account is 113100 (DeutscheBank).

Hint: In the G/L account master records, some of the expensesare configured to indicate that taxes may be associated with theseaccounts, but are not mandatory. The warning message is to ensurethat you do not forget to enter a tax code when appropriate. For thisexercise, all expenses will be treated as non-taxable. Therefore, youcan ignore the warning message.

2. Post EUR 300 for vehicle costs to your statistical automobile order(AUTO##) and the Motor Pool cost center 1220. The account is 475000.

The offsetting account is 113100 (Deutsche Bank).

3. Check the effect of the G/L account postings on your orders. For eachof your orders, call up the Orders: Actual/Plan/Variance report forcontrolling area 1000 in the current period and plan version 0. Display thecost accounting document for each of the new postings.

What is the difference between the posting to the "real" order and to thestatistical order?




______________________________________________________

______________________________________________________

______________________________________________________

Task 2: OptionalRepost spare parts costs from the IT Service cost center to your PCrepair/maintenance order.

1. Use today’s date and the screen variant Cost center/order/pers. no.

Repost EUR 250 of spare parts costs from the IT Services cost center (4120)to your PC repair/maintenance order. The spare parts cost element is 404000.Save the document.

Hint: If the “Set Controlling Area” dialog box appears, enter 1000in the Controlling Area field.

2. Check how the reposting has affected your PC repair/maintenance order.

Call up the Orders: Actual/Plan/Variance report for controlling area 1000in the current period.

Display the actual line items for the spare parts cost element (404000).

Use the layout Secondary costs: Value settlement.



Solution 20: Transaction-Based PostingsTask 1:Create G/L account postings for your marketing brochure overhead order and foryour motor pool order and compare the results in the information system.

1. Execute a posting of EUR 5,000 to your “Cell Phone ##” order for layoutconsulting services. The company code is 1000 and the cost element is417000 (purchased services). The offsetting account is 113100 (DeutscheBank).

Hint: In the G/L account master records, some of the expensesare configured to indicate that taxes may be associated with theseaccounts, but are not mandatory. The warning message is to ensurethat you do not forget to enter a tax code when appropriate. For thisexercise, all expenses will be treated as non-taxable. Therefore, youcan ignore the warning message.

a) SAP Easy Access menu → Accounting → Financial Accounting →General Ledger → Posting → Enter G/L Account Document

If applicable, enter 1000 in the Company Code field.

Enter the current date in the Document Date field.

If applicable, enter EUR in the Currency field.

Go to the table below:

Enter 417000 in the G/L acct field.

Choose Debit in the D/C field.

Enter 5000 in the Amount in doc.curr. field.

Enter the number of your cell phone marketing brochure order inthe Order field.


Choose Credit in the D/C field.

Enter * in the Amount in doc.curr. field.

Choose Enter.

If a tax warning message appears, simply confirm it by pressingENTER.

Choose Post (Ctrl + S).




Stay in the Enter G/L Account Document screen for the next exercise.

2. Post EUR 300 for vehicle costs to your statistical automobile order(AUTO##) and the Motor Pool cost center 1220. The account is 475000.

The offsetting account is 113100 (Deutsche Bank).

a) Enter the current date in the Document Date field.

Go to the table below:



Enter 300 in the Amount in doc.curr. field.

Enter 1220 in the Cost center field.

Enter AUTO## in the Order field.




Press Enter.

If a tax warning message appears, simply confirm it by pressing Enter.

Choose Save.

3. Check the effect of the G/L account postings on your orders. For eachof your orders, call up the Orders: Actual/Plan/Variance report forcontrolling area 1000 in the current period and plan version 0. Display thecost accounting document for each of the new postings.

What is the difference between the posting to the "real" order and to thestatistical order?

______________________________________________________

______________________________________________________




______________________________________________________

a) SAP Easy Access menu → Internal Orders → Information System →Reports for Internal Orders → Plan/Actual Comparisons → Orders:Actual/Plan/Variance

Enter 1000 in the Controlling area field.

Enter the current fiscal year in the Fiscal year field.

Enter the current period in the From period field.

Enter the current period in the To period field.

Enter 0 in the Plan version field.

Enter your marketing brochure order in the “Or value(s)” field.

Choose Execute (F8).

Double-click the Report row for the cost element 417000.

Double-click the Orders: Actual Line Items report.

Select the line item and choose:

Environment → Accounting Documents.

Click on the Controlling Document row.

Repeat the procedure to analyze your Auto## order in the informationsystem.

Task 2: OptionalRepost spare parts costs from the IT Service cost center to your PCrepair/maintenance order.

1. Use today’s date and the screen variant Cost center/order/pers. no.




Repost EUR 250 of spare parts costs from the IT Services cost center (4120)to your PC repair/maintenance order. The spare parts cost element is 404000.Save the document.

Hint: If the “Set Controlling Area” dialog box appears, enter 1000in the Controlling Area field.

a) SAP Easy Access menu → Internal Orders → Actual Postings →Manual Reposting of Costs → Enter

Enter Cost center/order/pers. no. in the Scrn var. field.

Enter 4120 in the CCtr (old) field.

Enter your PC repair/maintenance order number in the Order(new) field.

Enter 404000 in the Cost Elem. field.

Enter 250 in the Amount field.

Choose Post.

2. Check how the reposting has affected your PC repair/maintenance order.

Call up the Orders: Actual/Plan/Variance report for controlling area 1000in the current period.

Display the actual line items for the spare parts cost element (404000).




Use the layout Secondary costs: Value settlement.







Enter your PC repair/maintenance order number in the “Orvalue(s)” field.

Choose Execute.

Double-click the Report row for the cost element 404000.

Double-click the Orders: Actual Line Items report.

Choose: Settings → Layout → Choose.

Double-click Secondary costs: Value settlement.



Lesson Summary

You should now be able to:• Make event-related postings from original expenses to overhead cost orders• Analyze the results of the postings in reports


TFIN20_1 Lesson: Commitment Management

Lesson: Commitment Management

Lesson OverviewA commitment identifies costs which will be incurred in the future for materialsand services requested or ordered. You learn what you have to consider on thesystem side when you are using the commitment management.


• Make the required settings for commitment management• Understand the commitment values on the order• Explain the effect of the commitment carryforward

Business ExampleYou want to be able to see the costs on the order as early as possible - at the timeof the purchase order. This is why you want to use the commitment management.

Figure 105: Commitments

A commitment identifies costs which will be incurred in the future for materialsand services requested or ordered. By recording commitments as well as actualcosts, you can compare the funds you have allocated to your planned or budgetedcosts to determine funds availability.



You must activate commitment management both in the controlling area and in theorder type to create commitment information on an order. The order status mustalso allow the relevant business transaction.

You record commitments on your overhead orders using certain MM andManagement Accounting transactions:

• A commitment is recorded automatically when you assign an overhead orderto a purchase requisition or purchase order line item.

• You can generate a commitment manually by entering a funds commitmentin Management Accounting. A funds commitment in the system representscosts that are pending but that have either not yet been entered in Purchasingor that have not been entered yet because the component MM is not in use.

The information system uses different value types to identify commitmentsaccording to their origin (purchase requisition, purchase order, or fundscommitment).

Figure 106: Commitment Carryforward

You can carry forward open commitment values into the first period of the nextfiscal year as part of the year-end closing process.

Example: You might have a purchase order item that is not due to be delivered untilDecember 28, 2002, but the overhead order still lists this item as a commitmentfor the fiscal period 12/2002. If the item is not shipped by the end of the fiscal year2002 and the purchase order remains open, you can carry the commitment forward.The commitment is then posted into the first period of the fiscal year 2003.



For performance reasons, the documents processed by the commitmentcarryforward are not blocked for editing during processing. For this reason, youcannot process purchase orders from previous fiscal years while this program isrunning. This may lead to update terminations.





Exercise 21: Commitment Management

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create a purchase order• Post a goods receipt• Recognize the different options for transaction-based posting in Management

Accounting• Describe the transactions that debit overhead cost orders• Repost order costs

Business ExampleYou will post a purchase order and goods receipt in Materials Management foryour marketing brochure order, thereby enabling you to gain an insight intocommitment management.

Check the options available for posting debits to orders.

You will check the reposting function by posting costs from the IT Services costcenter to the PC repair/maintenance order.

Task 1:Create a commitment for your marketing brochure order by generating a purchaseorder.

1. Create a purchase order forMarketing Brochure Printing Services. Theseservices will be charged to an order (account assignment category F).Printing will be done by vendor 1000. The purchasing organization is1000, the purchasing group 000, and the plant 1000. You need to order 50hours of printing, at a cost of EUR 50 per hour. The material group is00706 (miscellaneous services) and the delivery date is today’s date. Debityour marketing brochure order using cost element 417000.

Save your purchase order and record the document number.

______________________________________________________




2. Check the commitment that has been recorded for your marketing brochureorder. Call up the Orders: Actual/Plan/Commitments report forcontrolling area 1000 in the current period. Execute the report for yourmarketing brochure order.

Hint: Note that the report consists of multiple pages. Scroll up anddown to view the entire report.

Task 2:Review the effect of a goods receipt transaction on your purchase order.

1. Post a goods receipt for the purchase order generated in the previous exercise.

Save your goods receipt and make a note of the document number.

______________________________________________________

2. Review the effect of the goods receipt on your marketing brochure order.Call up the Orders: Actual/Plan/Commitments report for controllingarea Europe (1000) in the current period, the current fiscal year, and theplan version 0.

3. Display the original logistics document for the actual posting from costelement 417000. Which document is displayed? How can you display otherdocuments associated with this posting?

______________________________________________________

______________________________________________________

______________________________________________________

Task 3: OptionalDefine which business events can debit overhead cost orders.

1. List the business transactions, including the source applications, which mayresult in a commitment to an overhead order.

______________________________________________________

______________________________________________________

2. List the business transactions, including the source applications, which mayresult in an actual posting to an overhead cost order.

______________________________________________________

______________________________________________________

______________________________________________________



Solution 21: Commitment ManagementTask 1:Create a commitment for your marketing brochure order by generating a purchaseorder.

1. Create a purchase order forMarketing Brochure Printing Services. Theseservices will be charged to an order (account assignment category F).Printing will be done by vendor 1000. The purchasing organization is1000, the purchasing group 000, and the plant 1000. You need to order 50hours of printing, at a cost of EUR 50 per hour. The material group is00706 (miscellaneous services) and the delivery date is today’s date. Debityour marketing brochure order using cost element 417000.

Save your purchase order and record the document number.




______________________________________________________

a) → Logistics → Materials Management → Purchasing → PurchaseOrder → Create → Vendor/Supplying Plant Known.

Close the transaction documentation (in the left-hand window).

Enter 1000 in the Vendor field.

Choose Enter.

Enter 1000 in the Purch. Org. field.

Enter 000 in the Purch. Group field.

If necessary, call up the “Item Overview” screen.

Enter F in the AcctAss. Cat. field.

Enter Printing services in the Short Text field.

Enter 50 in the PO Quantity field.

Enter H in the OUn field.

Enter the current date in the Deliv. Date field.

Enter 50 in the Net Price field.

If applicable, enter EUR in the Currency field.

Enter 00706 in theMatl Group field.

Enter 1000 in the Plnt field.

Choose Enter. (This opens the “Item Details” area).

Enter 417000 in the G/L Account field.

Enter the order number for your marketing brochure in the Orderfield.

ENTER.

Choose Save.

Make a note of the purchase order number !!




2. Check the commitment that has been recorded for your marketing brochureorder. Call up the Orders: Actual/Plan/Commitments report forcontrolling area 1000 in the current period. Execute the report for yourmarketing brochure order.

Hint: Note that the report consists of multiple pages. Scroll up anddown to view the entire report.

a) SAP Easy AccessMenu→ Internal Orders→Plan/Actual Comparisons→ Additional Key Figures → Orders: Actual/Plan/Commitments






Enter your marketing brochure order number in the first “Orvalue(s)” field.

Choose Execute.

Task 2:Review the effect of a goods receipt transaction on your purchase order.

1. Post a goods receipt for the purchase order generated in the previous exercise.

Save your goods receipt and make a note of the document number.

______________________________________________________

a) → Logistics → Materials Management → Inventory Management →Goods Movement → Goods Receipt → For Purchase Order → PONumber Known.

Enter the purchase order document number from the previousexercise.

Click the Execute icon next to the purchase order number field.

Flag the item OK (bottom left).

Check the settings.

ENTER.

Choose Post.




2. Review the effect of the goods receipt on your marketing brochure order.Call up the Orders: Actual/Plan/Commitments report for controllingarea Europe (1000) in the current period, the current fiscal year, and theplan version 0.

a) SAP Easy Access Menu→ Internal Orders→ Plan/Actual Comparisons→ Additional Key Figures → Orders: Actual/Plan/Commitments






Enter your marketing brochure order number in the first “Orvalue(s)” field.

Choose Execute.

3. Display the original logistics document for the actual posting from costelement 417000. Which document is displayed? How can you display otherdocuments associated with this posting?

______________________________________________________

______________________________________________________

______________________________________________________

a) Double-click the selected report row.

Choose the Orders: Actual Line Items report.

Double-click the line items from Logistics (2,500).

The system displays thematerial document (goods receipt) document. You can also view other documents by choosing the FI Documentsicon (choose the Document Info tab page).

Task 3: OptionalDefine which business events can debit overhead cost orders.

1. List the business transactions, including the source applications, which mayresult in a commitment to an overhead order.

______________________________________________________




______________________________________________________

a) Purchase Requisition and Purchase Orders (MM)

Funds Reservation (CO)

2. List the business transactions, including the source applications, which mayresult in an actual posting to an overhead cost order.

______________________________________________________

______________________________________________________

______________________________________________________

a) Invoices and G/L Account Postings (FI)

Goods Movements (MM)

Internal Activities and Repostings (CO)



Lesson Summary

You should now be able to:• Make the required settings for commitment management• Understand the commitment values on the order• Explain the effect of the commitment carryforward


TFIN20_1 Unit Summary

Unit SummaryYou should now be able to:• Make event-related postings from original expenses to overhead cost orders• Analyze the results of the postings in reports• Make the required settings for commitment management• Understand the commitment values on the order• Explain the effect of the commitment carryforward




Unit 9Period-End Closing of the Internal

Orders

Unit OverviewHere we describe the periodic postings that can be debited to the overhead costorder during the period-end closing. These include overhead expenses, forexample. We then investigate the options for debiting the order periodically.The participants are introduced to the different settlement forms, and how todistinguish them.

You are shown how to maintain settlement rules and how to trace the value flowsof the settlement.


• Describe transactions in the period-end closing that can lead to debit postingson the orders

• Define and use the overhead costing sheet• Post overheads to internal orders and understand the results in the

information system• Credit orders using periodic reposting• Distinguish between and use the various settlement options• Enter settlement rules• Define and use the allocation, source and PA transfer structures• Understand the results of the settlement using special reports

Unit ContentsLesson: Periodic Debit Postings ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .346

Exercise 22: Period-end Closing / Periodic Postings ... . . . . . . . . . . . . . . .351Lesson: Periodic Credit Postings ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .361

Exercise 23: Period-End Closing/Settlement .. . . . . . . . . . . . . . . . . . . . . . . . . .371


Unit 9: Period-End Closing of the Internal Orders TFIN20_1

Lesson: Periodic Debit Postings

Lesson OverviewYou learn which transactions in the period-end closing make debits on internalorders and are introduced to the overhead costing sheet.


• Describe transactions in the period-end closing that can lead to debit postingson the orders

• Define and use the overhead costing sheet• Post overheads to internal orders and understand the results in the

information system

Business ExampleYour overhead orders must be included in period-end closing. This also leads todebits, for example resulting from Cost Center Accounting or overhead costs. Youmust decide whether surcharges should be applied when overhead costs are passedon and, if so, how they should be calculated.

Figure 107: Overhead Costs (1)

Overhead costing is the means by which you allocate overhead costs to theappropriate objects by applying a percentage or quantity-based fixed amount toa specified cost base. The basis for overhead application are those primary costelements which were posted directly to the order. In the manufacturing industry,for example, these are usually the labor and material costs.

You can apply overhead to both planned and actual costs or on the basis ofcommitment data.


TFIN20_1 Lesson: Periodic Debit Postings

For testing and forecasting purposes you can also simulate the calculation. In thiscase, the data is not updated in the database. The results of the calculation aredisplayed as statistics and any errors are recorded in an error log. You can printout both the statistics and the error log.

The rules for applying overhead are gathered in the overhead costing sheet.

Figure 108: Overhead Costs (2)

The overhead costing sheet combines three central elements which determine howoverhead is calculated.

The calculation base specifies the cost element base to which overhead is applied,such as the materials cost elements. You can further restrict the base by identifyingthe origin of the cost elements. The origin field subdivides the cost element bymaterial.

The overhead amount allows you to define the amount of overhead to be appliedas follows:

In the percentage overhead approach, you identify base cost elements. Apercentage is applied to the costs posted to these cost elements. The calculatedcost is added as overhead.

In the quantity-based overhead approach, you specify the amount of overheadcost to be applied per quantity unit posted to the calculation base cost elements. Inthis case, units of measure must be recorded in Management Accounting.

The dependency allows you to differentiate overhead rates or amounts by plant,company code, profit center, responsible cost center, order type, or other criteria.



The overhead type determines whether the overhead calculation is for actual,plan, or commitment data

The credit key defines which object (cost center or internal order) is creditedto offset the debit to your overhead order. You also specify which cost elementshould be used to post the overheads.

Figure 109: Other Periodic Postings

Overhead orders can be receivers of cost center activity allocations. In an activityallocation, the activity quantity is entered in the transaction and evaluated usingthe plan price or a manual actual price. Revaluation allows you to revaluateactivity allocations based on an automatically generated calculation of actualprice. Unlike cost center accounting, this runs in a separate transaction.

Using Activity Based Costing (CO-OM-ABC), you can allocate costs frombusiness processes to overhead orders. The allocation is defined by a processtemplate developed in Activity Based Costing.



Figure 110: Debit Using Periodic Cost Allocation

Primary postings (such as telephone costs) are collected on a clearing cost centeror an order to minimize the number of postings in Financial Accounting. Thesecosts are allocated to the appropriate objects in Management Accounting (such asan overhead cost order), at period-end closing according to a user-defined key.

Line items are recorded for both the sender and receiver sides in order to documentthe allocations exactly.

Periodic allocations can be reversed and repeated as often as desired.





Exercise 22: Period-end Closing / PeriodicPostings

Exercise ObjectivesAfter completing this exercise, you will be able to:• Configure an overhead costing sheet and assign it to an order• Calculate the overhead surcharge

Business ExampleOverhead for storage costs is to be debited from the marketing brochure order.

To accomplish this, the overhead structure must be configured and assigned to theorder. This then enables you to determine an overhead rate for your order.

Task 1:Create an overhead structure that determines the overhead for storage costs at 10%of the material costs and assign it to your marketing brochure order.

1. Create a base X## for the overhead calculation. Name the base Grp ## OHBase. Define the base for controlling area 1000. Include the cost elementrange 400000 through 419999 in the base. Save your base.

2. Create an actual percentage surcharge Y## for the overhead calculation.Name the surcharge Grp ## OH Rate and use dependency D000. The rateof 10% should be valid for actual overhead calculations in controlling area1000 for the current fiscal year. Save your overhead rate.

3. Create a credit key Z## for the overhead calculation. Name the credit keyGrp ## OH Credit. Define the credit key for controlling area 1000. Thedata is valid through the end of the current fiscal year and 100% of theoverhead is fixed cost. The cost element used for the overhead posting is655110 (Overhead Surcharge – Other Materials) and the credit object is thewarehouse cost center 4130.

Save your entries!

4. Create a costing sheet XYZ## to define the overhead calculation. Namethe costing sheet OH Costing Sheet ##. The base X## that you created inexercise 1 should be assigned in the first row (row 10). The overhead rateY## that you created in exercise 2 and the credit key Z## that you createdin exercise 3 should be assigned in the second row (row 20). Remember toreference your second row to your first row and to carry out a check forerrors. Save your costing sheet.




5. Assign the overhead costing sheet XYZ## to your marketing brochure order(in the period-end closing view in the master record).

Task 2:Calculate the actual overhead for your marketing brochure order and review theposting.

1. Review the costs in the marketing brochure order before calculatingthe overhead. Call up the Orders: Actual/Plan/Variance report for yourmarketing brochure order in controlling area 1000 in the current period.What are the total costs on your order?

______________________________________________________________

2. Calculate the actual overhead for your order for the current period andcurrent fiscal year. Run it in Test and select Dialog display. What is theamount of overhead that will be applied to your order?

______________________________________________________________

3. Calculate the actual overhead in a real production run.

4. Once the overhead has been posted, review the costs for your marketingbrochure order. Call up the Orders: Actual/Plan/Variance report for yourmarketing brochure order for the current period. What are the total costs onyour order?

______________________________________________________________



Solution 22: Period-end Closing / PeriodicPostingsTask 1:Create an overhead structure that determines the overhead for storage costs at 10%of the material costs and assign it to your marketing brochure order.

1. Create a base X## for the overhead calculation. Name the base Grp ## OHBase. Define the base for controlling area 1000. Include the cost elementrange 400000 through 419999 in the base. Save your base.

a) SAP Reference IMG → Controlling → Internal Orders → ActualPostings → Overhead Rates → Costing Sheet: Components → DefineCalculation Bases Referring to Cost Element and Origin.

Choose Edit → New Entries.

Enter X## in the Base column.

Enter Grp ## OH Base in the Name column.

Choose Enter.

Select the line X##.

Double-click Details.

In the Set Controlling Area dialog box, enter 1000 in the ControllingArea field and press Enter.


Enter 400000 in the From CElem column.

Enter 419999 in the To CElem column.

Choose Save.

Go back to the SAP Reference IMG screen. Remain there for thenext exercise.




2. Create an actual percentage surcharge Y## for the overhead calculation.Name the surcharge Grp ## OH Rate and use dependency D000. The rateof 10% should be valid for actual overhead calculations in controlling area1000 for the current fiscal year. Save your overhead rate.

a) SAP Reference IMG → Controlling → Internal Orders → ActualPostings → Overhead Rates → Costing Sheet: Components → DefinePercentage Overhead Rates.

Choose Define Percentage Overhead Rates.


Enter Y## in the O/H Rate column.

Enter Grp ## OH Rate in the Name column.

Choose Dependency D000.

Choose Enter.

Select the Y## row.

Double-click on Details.


Enter the start of the current fiscal year in the Valid from field.

Enter the end of the current fiscal year in the To field.

Enter 1000 in the CO Area field.

Enter 1 in the Ovrhd type field.

Enter 10 in the Percentage field.

Choose Save.


3. Create a credit key Z## for the overhead calculation. Name the credit keyGrp ## OH Credit. Define the credit key for controlling area 1000. Thedata is valid through the end of the current fiscal year and 100% of theoverhead is fixed cost. The cost element used for the overhead posting is655110 (Overhead Surcharge – Other Materials) and the credit object is thewarehouse cost center 4130.




Save your entries!

a) SAP Reference IMG → Controlling → Internal Orders → ActualPostings → Overhead Rates → Costing Sheet: Components → DefineCredits.

Choose Define Credits.


Enter Z## in the Credit column.

Enter Grp ## OH Credit in the Name column.

Choose Enter.

Select the line Z##.

Double-click Details.

In the Set Controlling Area dialog box, enter 1000 in the ControllingArea field and select Enter.


Enter the end of the current fiscal year in the Valid to column.

Enter 655110 in the Cost Elem. column.

Enter 100 in the Fxd% column.

Enter 4130 in the Cost Center column.

Choose Save.


4. Create a costing sheet XYZ## to define the overhead calculation. Namethe costing sheet OH Costing Sheet ##. The base X## that you created inexercise 1 should be assigned in the first row (row 10). The overhead rateY## that you created in exercise 2 and the credit key Z## that you created




in exercise 3 should be assigned in the second row (row 20). Remember toreference your second row to your first row and to carry out a check forerrors. Save your costing sheet.

a) SAP Reference IMG → Controlling → Internal Orders → ActualPostings → Overhead Rates → Maintain Calculation Procedures

ChooseMaintain Calculation Procedures.


Enter XYZ## in the Costing Sheet column.

Enter OH ## Costing Sheet in the Description column.

Choose Enter.

Select the line XYZ##.

Double-click on Costing sheet rows.


In the first row, enter:

- 10 in the "Rows" column.

- X## in the "Base" column.

In the second row, enter:

- 20 in the "Rows" column.

- Enter Y## in the Overhead column.

- Enter 10 in the From column.

- Enter 10 in the To Row column.

- Enter Z## in the "Credit" column.

Choose Save.

Go back. (F3)

Choose Check (pushbutton).

As long as no errors are found, go back to the SAP Reference IMGscreen.




5. Assign the overhead costing sheet XYZ## to your marketing brochure order(in the period-end closing view in the master record).

a) SAP Easy Access Menu → Internal Orders → Master Data → SpecialFunctions → Order → Change

Enter your marketing brochure order in the Order field.

Choose Enter.

Select the Prd-end closing tab.

Enter XYZ## in the "Costing Sheet" field.

Choose Save.

Task 2:Calculate the actual overhead for your marketing brochure order and review theposting.

1. Review the costs in the marketing brochure order before calculatingthe overhead. Call up the Orders: Actual/Plan/Variance report for yourmarketing brochure order in controlling area 1000 in the current period.What are the total costs on your order?

______________________________________________________________







Enter the number of your marketing brochure order in the first “Orvalue(s)” field.

Choose Execute.

EUR 7,500, cost element 417000

2. Calculate the actual overhead for your order for the current period andcurrent fiscal year. Run it in Test and select Dialog display. What is theamount of overhead that will be applied to your order?




______________________________________________________________

a) SAP Easy Access Menu → Internal Orders → Period-End Closing →Single Functions → Overhead Rates → Actuals: Individual Processing

Enter the number of your marketing brochure order in the Order field.

Enter the current period in the Period field.

Enter the current fiscal year in the Fiscal Year field.

Check the Test Run box.

Choose Dialog display.

Choose Execute.

Check your results.

Choose Back to go to the Basic list screen.

Choose Back to go back to the initial screen.

Choose Continue to clear the information message.

Remain in the Actual Overhead Calculation: Order screen for thenext exercise.

EUR 750 (10% actual overhead rate)

3. Calculate the actual overhead in a real production run.

a) Deactivate the Test run box.

Choose Execute.

4. Once the overhead has been posted, review the costs for your marketingbrochure order. Call up the Orders: Actual/Plan/Variance report for yourmarketing brochure order for the current period. What are the total costs onyour order?




______________________________________________________________







Enter your marketing order number in the first “Or value(s)” field.

Choose Execute.

There should be a difference between the original amount (see exercise1) and the current total amount. This difference should be the sameas the amount recorded in exercise 2. If not, check that you ran thecalculation in production mode and not in test mode (see exercise 3).The amounts will only be updated correctly in production mode.



Lesson Summary

You should now be able to:• Describe transactions in the period-end closing that can lead to debit postings

on the orders• Define and use the overhead costing sheet• Post overheads to internal orders and understand the results in the

information system


TFIN20_1 Lesson: Periodic Credit Postings

Lesson: Periodic Credit Postings

Lesson OverviewYou learn about the different order settlement methods. You also learn to entersettlement rules and which settings are required to settle an order.


• Credit orders using periodic reposting• Distinguish between and use the various settlement options• Enter settlement rules• Define and use the allocation, source and PA transfer structures• Understand the results of the settlement using special reports

Business ExampleAn order is primarily a cost collector, that is, it collects costs and allocates them toother objects. There are various options for allocating costs. You should checkwhich procedure would be most feasible and appropriate for your companyscenario.

Figure 111: Crediting Orders Through Periodic Reposting



An order can be credited during a periodic reposting. To do this, the order must bedefined in a segment of its life cycle as a sender which can be credited to variousdifferent receiver object types.

You can define how the order is credited using one of the flexible allocation rulesthat are available. Crediting an order using fixed percentages, as illustrated in theabove example, is just one of the options available.

The cycle-segment method, which can also be used to define distributions,assessments and indirect activity allocation, is discussed in more detail in thecourse AC410.

Figure 112: Settlement: Overview

Overhead orders are usually used as an interim collector of costs and an aid tothe planning, monitoring, and reporting processes. When the task is complete,the costs are passed on to their final destination (cost center, WBS element,profitability segment, and so on). This process is called settlement.

In settlement, some or all of the costs posted to an order are allocated to oneor more receivers. The offset postings,which credit the order, are generatedautomatically. You can process settlement for individual orders or collectivelyfor a group of orders.

The costs gathered on an order can be settled on a variety of account assignmentobjects, as illustrated above. Settlement to an asset or General Ledger accountis an external settlement, because Financial Accounting is updated by thesettlement. Settlement to one of the remaining objects is an internal settlementwithin Management Accounting.

You can settle statistically to a cost center, statistical order, or statistical WBSelement in addition to the actual receivers.

Order settlement is not mandatory.



Figure 113: Defining Order Settlement

Before you can settle an order, you must specify where you want the costs to beposted. There are two procedures for defining your settlement: basic settlementand extended settlement.

Basic settlement allows you to settle 100% of the costs to one cost center or toone G/L account under one cost element. You enter the data in Period End Closingon the order master record.

Extended settlement allows you to create your own settlement rules in the ordermaster record. These settlement rules can be used to:

• Settle costs to one or more receivers and allow a wide range of receivers(WBS element, sales order, profitability segment, and so on)

• Specify how the costs are to be split (distribution rules)

In extended settlement, the settlement process is controlled using assignments inthe settlement parameters on the order master record. These parameters includethe settlement profile, settlement structure, PA transfer structure, and so on. Thesettlement profile, which specifies the default values for the other parameters, isderived from the order type. The defaulted settlement parameters can be changedon the order master record.

A settlement profile must be specified in the master record even if you are usingbasic settlement. You must specify which receiver object types are to be permitted.



Figure 114: Settlement: Parameters in Customizing

The central settlement control parameter is the settlement profile. The settlementprofile is entered in the order type, ensuring that the order master record containsthe correct default values. The settlement profile performs the following:

• Determines whether settlement is required• Specifies valid settlement receivers and proposes these in the order master

record (such as cost center) for the receiver• Sets settlement indicators, including the valid methods for apportioning costs• Defines document management parameters• Identifies the default values for the other settlement parameters on the

order master record: the settlement structure, Profitability Analysis transferstructure, and the source structure

The allocation structure controls how original cost elements are assigned tosettlement cost elements. You also have the option of settling using the originalcost element also exists.

The profitability analysis (PA) transfer structure controls how cost elementsare assigned to value fields in costing-based profitability analysis. It is used only ifyou settle internal orders directly to Profitability Analysis.

The source structure controls settlement to different receivers depending on theoriginal cost elements that were posted to the order.



Figure 115: Maintain Settlement Rule

You can enter the distribution rules in the Settlement Rule Overview screen.The distribution rule specifies which portion of the order costs should be settledto which receiver. Each line in the distribution table defines the allocation to aparticular receiver. Costs can be allocated to the receivers based on the following:

• Percentage• Equivalence number• Fixed amounts

The SAP System ensures that you cannot create a rule containing both an amountas well as an equivalence number or a percentage. You can change the distributionrules within a settlement rule only if you assign different validity periods to them.

The following settlement types are defined in the system for overhead orders:

• Settlement type PER settles only the costs for the period you specify.• Settlement type FUL settles all costs on a sender object that have been

incurred right up until the settlement period.



Figure 116: Settlement of Order Costs

You can settle costs to receivers using the same cost elements you originally usedto post your order. This allows you to identify precisely the types of costs whichwere allocated to your receivers, such as material, supplies, and personnel costs.

Alternatively, you can use a settlement cost element to allocate costs. With thisapproach, you can easily determine what costs have been allocated to the receiversin the order settlement process.

There are two categories of settlement cost elements:

• An internal settlement cost element (cost element type 21) is used whenyou settle to a Management Accounting object such as a cost center, order,WBS element, and so on.

• An external settlement cost element (cost element type 22) is used when yousettle to an asset or a General Ledger account.

After settlement, the costs incurred on the order are still visible, regardless ofwhich approach you select. This allows you to analyze and report on your ordercosts at any time.

Each time an object is settled, a settlement document is created. You define thenumber range for settlement documents during system configuration. To managedata volumes, you can define (in the settlement profile) the retention period afterwhich the settlement document can be archived. To manage data volumes, youalso define the retention period after which the settlement document can bearchived in the settlement profile.



In addition to the settlement document, the system also creates:

• A document in Financial Accounting containing all accounting-related data(external settlement only)

• A document in Management Accounting containing purely costaccounting-related data

Figure 117: Customizing the Allocation Structure

The allocation structure allows you to define which cost elements should besettled using a settlement cost element or the original cost element. The settingyou choose depends on the settlement receiver object.

This is a purely technical setting. It does not influence whether or how much of acost element should be settled. This is defined by the source structure.

To use the allocation structure (previously called the settlement structure), youneed to create cost element groups that contain the primary and secondary costelements used for debit postings to your orders. In Customizing, you link the costelement group to the settlement structure with a settlement assignment. For eachsettlement assignment, you stipulate by receiver type whether the settlement willuse the original posted cost elements or a designated settlement cost element.

You might use settlement cost elements:

• To reduce data volumes by combining several debit cost elements underone settlement cost element

• To differentiate costs allocated from orders to the receiver and to describetheir purpose, such as repairs or maintenance



Figure 118: Customizing: Source structure

The source structure (also set in Customizing) enables you to settle cost element(groups) to receivers using different settlement rules, that is, the total debit for theorder can be split up and settled within the relevant groups.

The debits in the internal order are structured in the source structure according tocost element.

To use the source structure, insert it into the settlement profile or activate it in themaster data for internal orders.

You can settle every single line item in capital investment orders individually. Ifyou do not want to settle each item individually, we recommended that you use asource structure.



Figure 119: Defining Settlements with the Source Structure

In the source structure, you can combine the primary and secondary cost elementsused for debit postings to your order into source assignments. You can then usethe source assignments to allocate different types of costs to different receivers.

In our example, all material costs have been settled to one receiver order, butpersonnel costs have been split up and settled to two receiver cost centers.

You do not need a source structure if you want to settle all your cost elementsaccording to the same rules. To use the source structure you defined inCustomizing, enter the source structure in the settlement parameters of the ordermaster record. Once you have made your selection, an additional column (“OriginSettlement”) is displayed in the settlement rule. This allows you to enter a sourceassignment for each distribution rule and establish a different receiver for eachsource assignment.



Figure 120: Customizing: PA Transfer Structure

The concept of the PA transfer structure is similar to the concept of the allocationstructure.

The input side again consists of cost element intervals. All cost elements shouldbe included in any interval to make settlement to a profitability segment possible.

The settlement side connects the cost element (intervals) with value fields inCO-PA. This is particularly important if you have orders with revenues and wantto settle them to CO-PA using costing-based Profitability Analysis.



Exercise 23: Period-End Closing/Settle-ment

Exercise ObjectivesAfter completing this exercise, you will be able to:• Maintain settlement rules and execute an order settlement• Analyze the effect of the settlement• Discuss settlement reversal and conversion

Business ExampleIn this scenario you will be settling your orders to cost centers in each period.

You would like to maintain settlement rules for your marketing brochure order sothat you can run the settlement for the current period. You will be settling the coststo the two cost centers that are responsible for the development of the brochures.

Task 1:Maintain the settlement rules on your marketing brochure order.

1. Check the settlement parameters in your marketing brochure order masterrecord. What is the settlement profile assignment and the allocationstructure? Where does this information come from? Can these assignmentsbe changed?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

2. Maintain the actual settlement rules. The marketing brochure order costsshould be settled periodically to the cost centers 4240 and 4250. Becausecost center 4240 needs more marketing brochures, 75% of the costs will besettled to this cost center and 25% will be settled to cost center 4250.

Check your settlement rules.

Save your entries!




Task 2:Carry out a settlement run for your marketing brochure order.

1. First of all, run the actual settlement for your marketing brochure order in atest run to verify the configuration. Calculate the costs for the current period.

Check the costs that have been settled to each cost center.

What settlement cost element is being used?

Where are the settlement cost elements assigned?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

2. Then process the actual settlement in production to post the settlementtransaction.

Task 3:Examine the effects of settlement of your marketing brochure order in theinformation system.

1. Check the balance of your marketing brochure order. Call up the Orders:Actual/Plan/Variance report for the current period. What is the balance onyour order?

2. Examine the costs that have been settled to each cost center (4240 or 4250).Call up the Cost Centers: Actual/Plan/Variance report for the currentperiod. Execute the report for each of the cost centers and the settlementcost element (650000).

Go to theActual Line Items report and switch to the Secondary costs: Valuesettlement layout so you can see the partner objects of the transactions.Your marketing brochure order should be displayed as a partner object.

Task 4: Optional ExercisesExplain the process of reposting order settlements.

1. What is reposting used for?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________Continued on next page



2. Can you repost the settlement of a previous period once you have postedthe settlement of the current period?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

3. Can you reverse and repost the settlement of a group of orders?

______________________________________________________________

______________________________________________________________

______________________________________________________________



Solution 23: Period-End Closing/Settle-mentTask 1:Maintain the settlement rules on your marketing brochure order.

1. Check the settlement parameters in your marketing brochure order masterrecord. What is the settlement profile assignment and the allocationstructure? Where does this information come from? Can these assignmentsbe changed?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

a) SAP Easy Access Menu → Internal Orders → Master Data → SpecialFunctions → Order → Change

Enter the number of your marketing brochure order in the Order field.

Choose Settlement rule.

Choose Goto → Settlement parameter.

The settlement profile is 20 (internal order). The profile assignment isdefaulted based on the order type.

The allocation structure isA1 (CO Allocation Structure). The allocationstructure assignment is defaulted based on the settlement profile. Theseassignments can be changed in each order.

2. Maintain the actual settlement rules. The marketing brochure order costsshould be settled periodically to the cost centers 4240 and 4250. Becausecost center 4240 needs more marketing brochures, 75% of the costs will besettled to this cost center and 25% will be settled to cost center 4250.

Check your settlement rules.




Save your entries!

a) Go back to the Maintain Settlement Rule: Overview screen.

In the first row, enter:

- CTR in the Cat field.

- 4240 in the Settlement receiver field.

- 75 in the % field.

- PER in the Settlement type field.

In the second row, enter:

- CTR in the Cat field.

- 4250 in the Settlement receiver field.

- 25 in the % field.

- PER in the Settlement type field.

- Choose Check.

Choose Continue to delete the information message.

If no errors were found, choose Save.

Task 2:Carry out a settlement run for your marketing brochure order.

1. First of all, run the actual settlement for your marketing brochure order in atest run to verify the configuration. Calculate the costs for the current period.

Check the costs that have been settled to each cost center.

What settlement cost element is being used?

Where are the settlement cost elements assigned?

______________________________________________________________

______________________________________________________________

______________________________________________________________




______________________________________________________________

a) SAP Easy Access menu → Internal Orders → Period-End Closing →Single Functions → Settlement → Individual Processing

Enter the order number of your marketing brochure order in theOrder field.

Enter the current period in the Settlement period field.

Enter the current period in the Posting period field.


Choose “Automatic” as the processing type.

Check the Test run box.

Choose Execute.

Click on the Detail lists icon.

Place your cursor on an amount.

Choose Receiver to display the cost element information.

The costs for cost center 4240 should be three times greater than thosefor cost center 4250 (settlement rule 75%/25%).

The settlement cost element is 650000 (ORS Order Settlement). Thesettlement cost elements are assigned in the configuration of thesettlement structure.

In this instance, the settings are based on the values in the allocationstructure A1 and assignment 03 and 22.

2. Then process the actual settlement in production to post the settlementtransaction.

a) Deactivate the Test run box.

Choose Execute.




Task 3:Examine the effects of settlement of your marketing brochure order in theinformation system.

1. Check the balance of your marketing brochure order. Call up the Orders:Actual/Plan/Variance report for the current period. What is the balance onyour order?







Enter the number of your marketing brochure order in the first “Orvalue(s)” field.

Choose Execute.

The balance should be zero (blank).

2. Examine the costs that have been settled to each cost center (4240 or 4250).Call up the Cost Centers: Actual/Plan/Variance report for the currentperiod. Execute the report for each of the cost centers and the settlementcost element (650000).




Go to theActual Line Items report and switch to the Secondary costs: Valuesettlement layout so you can see the partner objects of the transactions.Your marketing brochure order should be displayed as a partner object.

a) Accounting → Controlling → Cost Center Accounting → InformationSystem → Reports for Cost Center Accounting → Plan/ActualComparisons → Cost Centers: Actual/Plan/Variance






Enter the cost center numbers 4240 to 4250 in the first “Or value(s)”field.

Enter the cost element 650000 to 651000 in the “Or value(s)” field.

Choose Execute.

Double-click the report line for cost element 650000.

Double-click Cost Centers: Actual Line Items.

Choose Settings → Layout → Choose.

Double-click Secondary costs: Value settlement.

Task 4: Optional ExercisesExplain the process of reposting order settlements.

1. What is reposting used for?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

a) You can use the reversal and reposting functions to correct settlementsfrom previous periods even if they have been closed or locked. Thecorrection can then be posted in the current period.

2. Can you repost the settlement of a previous period once you have postedthe settlement of the current period?

______________________________________________________________




______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

a) No. You must run the correction settlement prior to makingsettlements in the posting period. The system does not allow you toenter a posting period that has already been settled. If you find thata correction settlement is required for the previous period after youhave already processed settlements in the posting period, you must firstreverse all the settlements performed in the posting period.

3. Can you reverse and repost the settlement of a group of orders?

______________________________________________________________

______________________________________________________________

______________________________________________________________

a) Settlement corrections are possible in both individual and collectiveprocessing.



Lesson Summary

You should now be able to:• Credit orders using periodic reposting• Distinguish between and use the various settlement options• Enter settlement rules• Define and use the allocation, source and PA transfer structures• Understand the results of the settlement using special reports



Unit SummaryYou should now be able to:• Describe transactions in the period-end closing that can lead to debit postings

on the orders• Define and use the overhead costing sheet• Post overheads to internal orders and understand the results in the

information system• Credit orders using periodic reposting• Distinguish between and use the various settlement options• Enter settlement rules• Define and use the allocation, source and PA transfer structures• Understand the results of the settlement using special reports




Unit 10Planning, Budgeting and Availability

Control

Unit OverviewYou learn to describe the purpose of cost center and internal order planning, andthe function of versions. The use and creation of plan layouts and planning profilesis explained, and a demonstration of an exemplary manual planning process isprovided. You learn about the automatic planning options and final planningactivities, and how the planning aids in SAP ERP Financials can support you. Youlearn how you can budget orders and how you can use the availability control.


• Set up the profiles for budgeting• Enter budgets on overhead cost orders• Set up availability control• Understand the results of budgeting and availability control• Transfer the budgets to the following year• Describe how planning features in SAP system could be used for planning

activities within your organization• Explain how different plan versions can be used• List the three cost accounting methods used in Management Accounting• Explain the purpose of statistical key figures and the methods used to plan

them• Describe the cost allocation methods used in planning• Describe the objectives of activity type planning• Name the typical sequence of steps involved in cost center planning• Describe a few simple and complex planning options• Describe the purpose and use of Easy Cost Planning functions• Describe different planning methods• Explain the plan profile• Perform overall and detailed planning on the internal order


Unit 10: Planning, Budgeting and Availability Control TFIN20_1

• List the options for automatic planning• Distinguish between orders with and orders without integrated planning• Describe Easy Cost Planning• Explain the planning aids provided by the SAP system

Unit ContentsLesson: Budgeting and Availability Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .385

Exercise 24: Budgeting and Availability Control . . . . . . . . . . . . . . . . . . . . . . .391Lesson: Introduction to Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .398

Exercise 25: Introduction to Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .405Lesson: Planning Options in Overhead Management Accounting ... . . . .409

Exercise 26: Planning in Cost Center Accounting ... . . . . . . . . . . . . . . . . . .425Lesson: Advanced Planning Techniques for Internal Orders .. . . . . . . . . . . .439

Exercise 27: Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .447Lesson: Planning Aids ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .454

Exercise 28: Planning Aids... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .459


TFIN20_1 Lesson: Budgeting and Availability Control

Lesson: Budgeting and Availability Control

Lesson OverviewYou learn how to create a budget for an internal order and familiarize yourselfwith the budget profile. You will set up an availability control and observe theeffects on the orders. You will see how to transfer a budget and how the budgetingworks in different currencies.


• Set up the profiles for budgeting• Enter budgets on overhead cost orders• Set up availability control• Understand the results of budgeting and availability control• Transfer the budgets to the following year

Business ExampleYou should also review the system options for the budgeting and availabilitycontrol and make a recommendation for its use within IDES.

Figure 121: Budget Management



The system recognizes the following budget types:

• The original budget is the budget that was originally allocated.• Budget updates for orders include supplements and returns and are used

when unforeseen events and additional requirements force a correction to theoriginal budget

• The current budget includes the original budget and all budget updates.

In addition to the budget update functions, you can also make changes to theoriginal budget. You can freeze the original budget using status management.To do this, you must create a user status that prohibits the Budgeting businesstransaction but that allows budget supplements and returns.

When you create or update your budget, the system documents the transaction in aline item. You can then display the budget line items. You can also enter text forbudget line items that provides additional information for budgeting.

In order to create a budget for an order, you must define a budget profile andassign it to the order type. The budget profile defines the parameters for budgeting.

In Customizing, you must define a number range for your budget documents. Todo so, use number range 04.

When you save the budget, the system checks that the sum of the annual valuesmatches the overall value for the order.

Figure 122: Profile for Budgeting



In order to create a budget for an order, you must define a budget profile andassign it to the order type. The budget profile defines the parameters for budgeting.In Customizing, you must define a number range for your budget documents. Todo so, use number range 04.

In the profile, you can specify whether the availability control cannot be activated,is activated manually via a function in the component menu, or is activatedautomatically during budgeting. You can check funds availability using eitherthe annual or overall budgeted value.

Figure 123: Availability Control

Certain business transactions result in actual costs and commitments being postedto the order. Commitments represent obligations that will lead to actual coststhrough subsequent business events. A purchase order, for example, may resultin a commitment in Management Accounting, which is then reduced by thesubsequent goods and invoice receipts.

Actual costs and commitments are funds allotted to an order and they can bechecked against the budget using the availability control.

In Customizing, you define how availability control will operate for your ordertypes:

• Is availability control active?• For which transactions will availability control apply?• What are the tolerance limits?• What action will be initiated when tolerance limits are exceeded?• Should certain types of costs be exempted from availability control?



Figure 124: Budgeting and Availability Control

You use the tolerances to define how the system should respond to a given degreeof budget overrun. In our example, if the budget is exceeded by 5% (105%), thesystem generates a warning and a message is sent automatically to the personresponsible for the budget. If the budget is exceeded by 15% (115%), an errormessage is displayed. The document that caused the budget to be exceeded canno longer be posted. The tolerance levels for budgets are defined in the budgetprofile according to business transaction groups. Different tolerance levels can beset for different business transaction types.

If you select the action Warning and Mail, you must specify a budget managerin Customizing. If no budget manager is entered, the system generates an errormessage. A budget manager may be established for each order type and objectclass. If more than one budget manager is defined for an order type and class, amail will be sent to each individual. For example, in the above illustration, theuser Peter Miller will receive a mail for any deviations that occur in order type0100, object class OCOST.



Figure 125: Budget Carryforward

You can transfer unused funds to the next fiscal year using the budget carryforwardfunction. The SAP system will carry forward the difference between the budgetand the actual amounts for the year specified.

You cannot carry forward budgets for orders that have system status Complete orthat are flagged for deletion, nor can you carry forward negative budget amounts.

You can execute the carry forward run more than once for a fiscal year. Eachexecution of the program carries forward budget not previously processed. Youcan also return funds to the “old” fiscal year, up to the amount of budget actuallycarried forward.

To execute the carry forward program, enter the fiscal year of the budget youwant to carry forward and a selection variant that specifies which orders are to beincluded. You must maintain the selection variant in Customizing.

Commitments are not considered in the calculation of the unused funds. Youshould, therefore, carry forward your commitments before carrying forward thebudget.



Figure 126: Budgeting and Availability Control in Different Currencies

Multinational business locations may require you to perform budgeting in differentcurrencies. From Release 4.0, you can choose different currencies to enter yourbudget. All budget items are converted and saved automatically in the controllingarea currency and the object currency.

If you choose budgeting in the controlling area currency, all budget items areentered in the controlling area currency.

If you choose budgeting in the object currency, you can enter the budget in thiscurrency for each object. The object currency is stored in the master recordof the object.

If you choose budgeting in a freely-definable currency, you can choose for eachbudgeting transaction, in which currency it should be entered.

You should specify in the budget profile of the order type or the project profile, inwhich currency the budget items for the order or the project can be entered.

In R/3 Enterprise upwards, the availability control function is no longer executedin the controlling area currency but in the object currency. This eliminatesexchange rate fluctuations.



Exercise 24: Budgeting and AvailabilityControl

Exercise ObjectivesAfter completing this exercise, you will be able to:• Budget an overhead order• Establish availability control• Test the availability control function

Business ExampleYou must create a budget for your marketing brochure order. The amount shouldbe monitored using the availability control functions, that is, every debit made onthe order should first be tested against the budget.

Most of the availability control configuration has already been completed for yourorder through the budget profile assigned to your order type. However, becauseyou are responsible for the budget, you need to enter this in the system so that thesystem can inform you of any irregularities.

Once you have finished making the necessary availability control settings, testthem by posting items that exceed the tolerance limits to the general ledgeraccount.


1. In your existingMA## order type, create a new order for collecting thecosts of the cell phone marketing campaign. The short text for this order is“Cell Phone## Marketing Campaign”.

Assign the order to company code 1000, business area 9900, and profitcenter 1402.

Release the order.


1. Allocate the marketing campaign a budget of EUR 10,000 for the currentfiscal year.

Save your budget




Task 3:In Customizing, review the availability control for the order type (MA##) ofyour marketing campaign order and complete the configuration.

1. What budget profile is assigned to your order type?

___________________________________________

2. What tolerance limits have been set for this budget profile in controllingarea 1000?

___________________________________________________

___________________________________________________

___________________________________________________

___________________________________________________

3. Enter yourself as the budget manager for order typeMA## in controllingarea 1000 and object class OCOST.

Use your user ID (AC405-##)

Task 4:Post the costs for your marketing campaign to check the availability controlfunctions.

1. Test the tolerance limits by debiting your order with G/L account postingsso that all the warning scenarios that have been set up in the system are calledup one after the other. (Warning, warning by mail, mail, and error message)

The relevant mail is located in the SAP Easy Access menu under Office →Workplace.



Solution 24: Budgeting and AvailabilityControlTask 1:Carry out the following task:

1. In your existingMA## order type, create a new order for collecting thecosts of the cell phone marketing campaign. The short text for this order is“Cell Phone## Marketing Campaign”.

Assign the order to company code 1000, business area 9900, and profitcenter 1402.

Release the order.

a) SAP Easy Access menu → Master Data → Order Manager → MasterData → Create


Choose Master Data.

Enter “Cell Phone Marketing Group Campaign ##” in the Short textfield.




Release the order.

Save your order.

Make a note of the order number!


1. Allocate the marketing campaign a budget of EUR 10,000 for the currentfiscal year.




Save your budget

a) SAP Easy Access menu → Internal Orders → Budgeting → OriginalBudget → Change

Enter the order number for your marketing campaign in the Orderfield.

Choose Enter.

Enter 10000 in the Original Budget column for your order for Overalland the Current Fiscal Year.

Choose Save.

Task 3:In Customizing, review the availability control for the order type (MA##) ofyour marketing campaign order and complete the configuration.

1. What budget profile is assigned to your order type?

___________________________________________

a) SAP Reference IMG → Controlling → Internal Orders → Budgetingand Availability Control → Maintain Budget Profile

ChooseMaintain budget profiles in order types.

Scroll down to your order typeMA##.

The budget profile assigned to your order type MA## should be000001.

Once you have checked the entries, go back to the SAP ReferenceIMG screen.

2. What tolerance limits have been set for this budget profile in controllingarea 1000?

___________________________________________________

___________________________________________________

___________________________________________________




___________________________________________________

a) IMG → Controlling → Internal Orders → Budgeting and AvailabilityControl → Define Tolerance Limits for Availability Control

For controlling area 1000, budget profile 000001, a warning messagewill be displayed if the business transactions performed for an orderuse up more than 95% of the budget. A warning message will be sentby mail to the budget manager if the business transactions performedfor an order exceed 105% of the budget. If the budget is exceeded by115%, the business transaction will be locked and an error message willbe displayed explaining why the transaction cannot be executed.

After your review, return to the SAP Reference IMG screen.

3. Enter yourself as the budget manager for order typeMA## in controllingarea 1000 and object class OCOST.

Use your user ID (AC405-##)

a) IMG → Controlling → Internal Orders → Budgeting and AvailabilityControl → Maintain Budget Manager


Enter 1000 in the COAr (controlling area) field.


Enter OCOST in the ObjCl field.

Enter your user ID in the User name field.

Choose Save.

Task 4:Post the costs for your marketing campaign to check the availability controlfunctions.

1. Test the tolerance limits by debiting your order with G/L account postingsso that all the warning scenarios that have been set up in the system are calledup one after the other. (Warning, warning by mail, mail, and error message)




The relevant mail is located in the SAP Easy Access menu under Office →Workplace.

a) SAP Easy Access Menu → Accounting → Financial Accounting →General Ledger → Document Entry → Enter G/L Account Document

Enter the current date in the Document Date field.

Enter 420000 in the Account field.


Enter EUR 9501 in the Amount doc. curr. field.

Enter the number of your marketing campaign order in the Orderfield.

Enter 113100 in the Account field.



Choose Enter.

Choose Save.

Hint: Note the budget warning message.

Press Enter to confirm the warning message. Note that the transactionis only posted once you have confirmed the error message.

Stay in the Enter G/L Account Document screen for the next exercise.

Repeat the procedure again, but this time post an additional EUR1,000 to your order using any cost element.

Hint: Note the new budget warning message.

Press Enter to clear the budget warning message.

SAP Easy Access menu → Office → Workplace → Inbox

Double-click on the unread messages in your inbox.

Double-click on the e-mail message about your order.

Now try posting another EUR 1,000 to your order using any costelement.

If your availability control settings are correct, an error message will bedisplayed explaining that all postings to this object are locked.



Lesson Summary

You should now be able to:• Set up the profiles for budgeting• Enter budgets on overhead cost orders• Set up availability control• Understand the results of budgeting and availability control• Transfer the budgets to the following year



Lesson: Introduction to Planning

Lesson OverviewThis lesson discusses the goals of planning and introduces the options formaintaining several plan versions at the same time, deriving plans from otherplans, and defining your own views of the planning database.


• Describe how planning features in SAP system could be used for planningactivities within your organization

• Explain how different plan versions can be used• List the three cost accounting methods used in Management Accounting

Business ExamplePlanning is the most important part of every organization's activities. You wantto vary the planning activities, depending on the level of detail required and thecosts associated with planning.

Importance of PlanningVirtually every business organization plans, to some extent, for future businessoperations. The extent and method of planning, however, can vary greatly fromone enterprise to another.

Planning provides a baseline measurement against which actual operating resultscan be matched. This makes it easier to analyze and control business operations toachieve desired results.

Plan figures can be part of an enterprise's goals, or may be used just as a generalguideline. The purpose of plan figures depends on the corporate culture andpolicies.


TFIN20_1 Lesson: Introduction to Planning

Figure 127: Aims of Planning

Through planning, businesses set organizational goals that can be used as a basisfor comparing the actual operating results against the plan. Businesses can thenidentify variances that serve as signals to take corrective measures in the businessoperations.

The basic goals in planning are as follows:

• Plan the structure of the company's future operations for particular periods.• Create benchmarks for monitoring the business transactions within a fiscal

year.• Monitor efficiency at the end of the posting periods using plan/actual and

target/actual comparisons.

SAP systems offer a wide variety of options that you can use to define planninggoals.

Planning Views and FunctionsA version is a unique view of planned costs and revenues, given a particular setof assumptions. In the planning process, many different versions can be createdand different planned values can be created for each version. Each version isindependent of all others.



Figure 128: Versions

The SAP system automatically creates version 0 when you create a controllingarea. The actual values created when entering primary costs and allocating costsinternally are posted in this version. This version must be used for plan/actual costcomparisons. Version 0 is the version used for analyzing actual data.

Planning always takes place within a plan version. A version is used across allapplications. This helps ensure that the integrated use of a particular versionproduces consistent results across applications; for example, planning integrationbetween Cost Center Accounting and Profit Center Accounting.

A given version can have certain settings that apply individually to eachcontrolling area and to each fiscal year, such as whether copying the versionis allowed or if planned data for the version is locked (cannot be changed).Additional version settings affect planning in different areas.

Figure 129: Copy Plan and Actual Data



If you want to reuse large parts of your cost and revenue planning from theprevious year for your current fiscal year, transfer plan values within a fiscal yearto a different period, or generate alternate versions, you can use the copy planningfunction. This function can also be used to copy actual data from cost centeraccounting and use this data as a basis for future planning data.

You can copy as much or as little data as required. For example, you can limit theselection of data to a particular cost center or you can select all cost centers.

Revaluation allows you to increase or decrease the planning results on apercentage basis. By combining copy planning and revaluation, you can createmultiple planning versions. This can be useful after copying the plan data from theprevious year or for running through best-case and worst-case scenarios.

Planning Layouts and Planner ProfilesPlanning layouts are used to define the planning screen. Standard planninglayouts are available for almost every type of planning area. You can copy thesestandard planning layouts and adapt them as required, or create new layouts.Layout 1-101, which is used for activity-independent and activity-dependent costelement planning, is an example of a standard layout.

Figure 130: Planning Layouts

You use entry displays or planning layouts to enter planning data. You cancustomize these displays as required. You can define the titles, key columns, andvalue columns according to your business requirements for all planning areas.

Cost Center Accounting has three planning areas:

• Cost elements/activity input• Activity types/prices• Statistical key figures



For each planning area, you use the planning layout to define the key columns(these columns contain the characteristics for which you enter planning values, forexample, cost center or cost element) and to arrange the value columns in whichyou enter the planning data.

You can create your own planning layouts that display other key columns. Thekey columns show the objects that require planning. You can define more thanone key column. You can, for example, create a planning layout with Cost centerand Activity type as the key columns. In this case, value columns are available forplanning values for all combinations of cost centers/activity type.

Figure 131: Organization of the Planning Views

You can control the planning process using planner profiles. In a planner profile,you can assign as many planning layouts as required to each planning area. Aplanning area can, therefore, contain more than one planning layout. You can alsogroup the planning layouts together by assigning them to planner profiles. Duringthe planning phase, you can switch between the planning layouts that belong to acertain planning area of a planner profile. In this way, you can switch betweenlayouts 1-101 and 1-102 in the SAPALL profile.

The SAP system contains standard planner profiles and planning layouts thatcover numerous possible planning situations. You can use the SAPALL plannerprofile to plan three planning areas with more than one assigned SAP standardlayout. SAP has designed the SAPEASY planner profile for simpler planningrequirements. You can also create your own profiles.



Cost Accounting MethodsDifferent cost accounting methods are used in Management Accounting. Thesemethods differ from each other in their level of detail and in most of the analysisoptions, therefore, requiring more time for implementation and maintenance. Themethod you choose depends on the level of detail that you require.

Figure 132: Cost Accounting Methods

The selected method does not have to be valid for the whole enterprise. If the levelof planning detail and accuracy are not as crucial for certain parts of the enterprise,you can use a simpler method. A more complex method is recommended for areasin the enterprise that require comprehensive cost accounting functions.





Exercise 25: Introduction to Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:• Describe how planning is used to forecast costs and revenues and make

decisions

Business ExampleThe cost center managers want a clear picture of the results that can be expectedfrom your cost centers in future periods. In addition, they require permanentactual figures so that they can recognize variances from the plan in time and takecorrective action, instead of waiting until the end of the period.

Task:Describe how you might best use the planning and budgeting functions in yourcompany.

1. Why and what do companies usually plan?Choose the correct answer(s).□ A Generate a cost forecast□ B Plan future operations for particular periods□ C Create benchmarks for monitoring business transactions within a

fiscal year□ D Monitor efficiency at the end of the posting periods□ E Prepare a budget




2. Will you use both planning and budgeting?

3. How many planning versions could you use? What could be included inthese planning versions (for example, best case, worst case, and so on)?

4. If a plan version is merely another plan version that has been amended ormodified, the function can save you a greatdeal of time. Remember, it is useful to base planning for a new fiscal yearon the plan values or even the actual values of the old fiscal year. With theappropriate copy version, you can quickly create a new plan, which you canthen adapt manually.Fill in the blanks to complete the sentence.



Solution 25: Introduction to PlanningTask:Describe how you might best use the planning and budgeting functions in yourcompany.

1. Why and what do companies usually plan?

Answer: A, B, C, D

Planning is used to set organizational goals.

2. Will you use both planning and budgeting?

Answer: Whereas planning is used for forecasting costs, budgeting isconcerned with providing individual organizational units (such as costcenters) or measures (internal orders and projects, for example) with funds.It makes sense, of course, to set the budget on the basis of the plan valuesthat were determined. The two values can, however, develop very differentlyover the course of time. In this way, the two methods complement eachother. Availability control always applies to the budget values.

3. How many planning versions could you use? What could be included inthese planning versions (for example, best case, worst case, and so on)?

Answer: Several plan versions can be useful to calculate several plans andthen compare them with each other. Several plan versions can also be used tosave the plan values for the last period when rolling planning is used beforethe plan values in the new planning process are changed.

4. If a plan version is merely another plan version that has been amended ormodified, the copy planning function can save you a great deal of time.Remember, it is useful to base planning for a new fiscal year on the planvalues or even the actual values of the old fiscal year. With the appropriatecopy version, you can quickly create a new plan, which you can then adaptmanually.

Answer: copy planning



Lesson Summary

You should now be able to:• Describe how planning features in SAP system could be used for planning

activities within your organization• Explain how different plan versions can be used• List the three cost accounting methods used in Management Accounting


TFIN20_1 Lesson: Planning Options in Overhead Management Accounting

Lesson: Planning Options in Overhead ManagementAccounting

Lesson OverviewThis lesson focuses on planning in Management Accounting and describes thevarious planning tools. It starts with the simple planning options and graduallymoves on to more complex planning tools.


• Explain the purpose of statistical key figures and the methods used to planthem

• Describe the cost allocation methods used in planning• Describe the objectives of activity type planning• Name the typical sequence of steps involved in cost center planning• Describe a few simple and complex planning options• Describe the purpose and use of Easy Cost Planning functions

Business ExampleYou are the cost center manager, and you need an efficient way to compareplan and actual costs. First, you must plan the actual costs that are incurred bycost centers outside Management Accounting, such as expense for salaries anddepreciation. In addition, you must plan all cost and activity allocations that takeplace in period end-closing.

You can plan the cost flows of a cost center so that all overhead costs are coveredthrough cost or activity type allocations. You can allocate all costs that are notcovered with profitability and sales accounting.

Simple Planning MethodsPlanning statistical key figures enables you to:

• Calculate the ratios in Cost Center Accounting (such as costs per employee)• Create receiver bases (allocation factors) for allocations such as assessment

or distribution



Figure 133: Planning Statistical Key Figures

Statistical key figures can be fixed value or totals value:

• If you plan a fixed value (for example, employees), you enter the numberof employees who are assigned to a cost center. The system then shows themean value for all the planned periods on the overview screen. The perioddata screen shows you the plan quantity for each period.

• If you plan a totals value (for example, telephone units), the quantity that youentered is distributed to the periods according to the assigned distribution key.

You can, however, plan statistical key figures directly or according to the activitytypes for a cost center. SAP provides layouts for statistical key figures, which youcan access via the SAPALL standard profile:

• Standard layout 1-301 for activity-independent planning of statistical keyfigures

• Standard layout 1-302 for activity-dependent planning of statistical keyfigures

You can also transfer statistical key figures from the Logistics Information System(LIS).



Figure 134: Primary Cost Planning

You plan activity-independent primary costs structured by cost element on thecost centers where you later assign actual data. Most cost elements (materialcosts, costs for raw materials and operating materials, for example) are normallyplanned this way.

To plan activity-independent primary costs, proceed as follows:

1. Choose a standard profile such as SAP101 or SAPALL.2. Choose Planning → Costs and Activity Inputs → Change.



Figure 135: Cost Allocation Methods for Planning

In distributions and assessments, costs that were planned on a cost center withuser-defined keys (such as percentages, amounts or statistical key figures) areallocated. The advantage of these methods is that they are easy to use. You needto define the keys and the sender/receiver relationships only once.

You can, for example, assess the costs for the cafeteria using the number ofemployees per cost center or distribute the telephone costs according to thetelephone units or telephones per cost center.



Figure 136: Pure Cost Allocations

Cost accounting methods that are based on pure cost allocations do not necessarilyrequire planning. However, there are many types of cost allocation (for example,distribution or assessment), which are possible only within Overhead CostControlling. For this reason, this cost accounting method is recommended only forrelatively simple cost accounting systems that do not require special integrationwith other components such as sales order management or manufacturing.

If you do not enter any planning data, your options for carrying out a subsequentanalysis using actual/actual comparisons with past periods will be restricted.

Plan costs can be entered manually or can be transferred from feeder systems suchas SAP ERP Human Capital Management, Asset Accounting, and the LogisticsInformation System.

For cost allocation, the system provides functions such as distributions,assessments, and overhead cost surcharging.

Activity Type and Other Planning MethodsActivity types can be used to measure cost center performance. They describethe activity output (output quantity) of a cost center and are used to calculate theoperating rate and the target costs. Activity types are allocated using a secondarycost element, which is stored in the activity type master record.

With activity type planning, you manage the performance of a cost center bymeasuring and controlling its output.



Figure 137: Activity Type Planning

You can enter the price for each cost center and activity type manually or calculatethe price using automatic price calculation.

• You can set manual activity prices for your cost center/activity typecombination if the activity price is fixed within your company and unaffectedby any internal exchange of activities.

• In the automatic calculation of prices, all primary and secondary costs arecontained in the price. These costs are planned as either activity-dependentcosts or activity-independent costs for each cost center.

• If several activity types are planned for a cost center, the activity-independentplan costs are assigned to these activity types for activity price calculation.You can accomplish this by entering equivalence numbers with each plannedactivity type, or with plan cost splitting.

• The unit price for an activity type is calculated by dividing planned costs foran activity by the planned quantity of activity type units. Alternatively, thecapacity of a cost center to produce a given activity type can be used whencalculating the fixed portion of the activity price.

Because the activity quantity is valuated with this price, a combined quantity andvalue flow is the result of an activity allocation.

For activity type planning, SAP provides the standard layout 1-201, which isassigned to the standard planner profile SAPALL.



Figure 138: Planning Activity-Dependent Primary Costs

When you plan primary costs that are activity-dependent, you plan primary coststhat depend on certain activity types provided by the cost center. You thus specifythat if the activity type is no longer provided, these costs also no longer apply.

After activity type planning is complete, you can plan the costs, taking intoaccount these activities (divided into fixed and variable costs if required). Variablecosts occur relative to the planned activity quantity and can be planned in additionto costs that are activity-independent. This means that the price can contain twotypes of fixed cost:

• Planned activity-independent costs for the cost center• Fixed portion of activity-dependent costs planned for the activity type

SAP provides standard layout 1-101 (found in SAP profile SAPALL) forplanning primary costs that are activity-dependent.



Figure 139: Planning Secondary Costs

In addition to the primary costs, a cost center often incurs secondary costs becauseit has to use services (activity input) from other cost centers. You can plan thiskind of activity input as either activity-independent or activity-dependent.

You plan activity input as activity-independent if you use services such as plantmaintenance hours, regardless of the activity of the receiver cost center. In thiscase, the consumption of planned activity input is regarded as fixed. Activity inputis planned as activity-dependent if the consumption of this activity depends on theoutput of an activity on the receiver cost center. The consumption can be fixed orvariable for the activity output quantity.

To enable plan and actual data to be compared at regular intervals, you need toplan secondary costs for your cost center. In an actual posting, you are the receiverof internal activity allocations because you receive the services from other costcenters.

A cost center that plans the receipt of secondary costs from internal activityallocations must always specify a sender cost center and the quantity of thereceived activity for this business transaction.

To calculate the planned secondary costs, the SAP system multiplies the price ofthe activity type (from the sender cost center) with the activity quantity that isconsumed by the receiver cost center. Planned secondary (activity-independent)costs are always fixed costs for a receiver cost center. You can use standard layout1-102 in the SAPALL profile for this business transaction.



Figure 140: Cost Allocations Using Activity Types

Cost accounting methods that allocate activity-based costs do not necessarilyneed planning, but the activity type that is provided must be assigned to the costcenter and a price must be stored. Because you can allocate activity types (eventhough not every available tool can be used) to all other account assignmentobjects in Management Accounting, these types of cost accounting methods arealso recommended for more complex cost accounting systems and for integrationwith other components.

If, however, you allocate costs using activity types, the planning function isrecommended. In addition to planning costs, you can also plan the outputquantities of the activity types. This means that you can also, in this case, calculatethe costs per unit of the activity type provided using price calculation. The costper unit can be stored as the price in cost center planning.

You can overwrite manually stored prices if required, or you can retain them tokeep a particular type of activity expensive, for example.

Activity input planning values shows the requirement to the activity sender as ascheduled activity quantity. The cost center manager can then adapt the activityoutput of the cost center to the requirement. This can help avoid idle capacity.This visibility facilitates plan reconciliation between activity quantities scheduledto be consumed and those planned to be produced by a cost center.

The calculated prices are used immediately for all participant senders and receiversto display the new plan debits or plan credits. The result of the price calculationshould be prices that bring the cost center balance to zero in the planning figures.This is referred to as fair allocation price for the activity type.



You can use output quantities to determine an operating rate and calculatetarget costs. This provides you with plan/actual comparisons and target/actualcomparisons for analysis purposes.

Figure 141: Example of Price Calculation

Equivalence numbers are one way to assign planned (activity-independent) coststo the activity types (splitting). For example, a cost center plans to produce twoactivity types: production hours (PHR) and machine hours (MHR). The activitytypes are selected for cost element planning (activity dependent). In addition,activity-independent costs of 21,000 were planned, which need to be distributedto the different activity types using equivalence numbers. The split costs are acomponent of the fixed part of the price of each activity type.

• PHR equivalence number = 1: 21,000 * 1/3 =7,000• MHR equivalence number = 2: 21,000 * 2/3 = 14,000

In cost element planning, a cost center consumes materials and external servicesto provide its own services for other cost centers or orders. This consumptiontriggers cost postings (debits) on the cost center. You can plan primary costs byentering planning data for the cost elements that are to be used for posting theservice or material consumption as actual values.

To reflect that some costs will be incurred by a cost center only if certain activitytypes are produced by that cost center, you plan those costs as activity-dependentcosts. You plan the cost as a variable cost if it depends on the output quantityof this activity type. You plan the cost as a fixed cost if the cost does not dependon the activity quantity.

If a cost center plans an activity type, it must also plan the costs it expects toincur when producing the planned number of units of the activity. Costs that havebeen planned independently of the activity need to be coded. This enables you tocalculate the unit cost of producing the activity. You can use automatic plan pricecalculation to calculate this value (price always refers to a unit of the activity type



to be produced). If a cost center produces more than one type of activity, you mustdistribute the activity-independent plan costs among the activity types of the costcenter to calculate the price of each single activity type.

Typical Planning StepsThere is no prescribed sequence in which the steps involved in cost center planningmust be performed. However, SAP recommends that you follow a few generalrules to ensure a logical sequence that meets your requirements. You may find thatyou need to adjust this sequence for your particular situation.

Figure 142: Typical Planning Steps for Cost Centers

The first step involves planning statistical key figures. Statistical key figures arefrequently used as tracing factors in distribution and assessment.

Activity type planning is usually the next step in cost center planning because it isimportant to know which activities can be performed by which cost centers.

Using activity input planning, the cost center managers plan how much activitythey want to use. This can be seen on the sending cost centers as the scheduledactivity quantity.

The cost center managers then plan the activity quantities they want to provide.These quantities should be based on the scheduled activity quantities. This can becarried out automatically using plan reconciliation, which adjusts the plannedactivity quantity for a cost center to the activity quantity scheduled for the receivercost centers.



The next logical step involves planning the primary costs and theadditional secondary costs. These costs can be planned manually as eitheractivity-independent costs or activity-dependent costs. You can subdivide theactivity-dependent costs into fixed and variable costs. Secondary cost planningcan include assessment and indirect activity allocation.

Activity price calculation is the final stage of the planning process. The SAPsystem calculates the prices for all combinations of cost centers and activitytypes iteratively. The activity prices are then used to valuate the planned activityexchange.

Figure 143: Assigning Planning Methods to Controlling Methods

In simple scenarios, planning is optional and no activity types are necessary. Onlycosts are planned. Plan cost allocations can be accomplished with distributionsand assessments.

If you want to also use Cost Object Controlling, you must be able to allocate theoverhead costs to production orders and other cost objects.

The advantage of activity type allocation is that it combines both quantity flowsand value flows. Required activity quantities are specified in routings and used forproduct cost planning and for allocation to cost objects.

Activity types can also be consumed by cost centers and internal orders. Whenactivity input planning is performed, the quantity of activities that other controllingobjects have planned to consume shows up on the sender cost center as thescheduled quantity. You can use plan reconciliation to adjust the planned activityquantities to the scheduled activity quantities.



After cost and activity planning is complete, the system can calculate activityprices by dividing the plan costs by the planned activity output quantities. If morethan one activity is produced by a cost center, you have to distribute the costs tothe different activity types first, using equivalence numbers or the splitting tool.

Figure 144: Assigning Planning Methods to Controlling Methods (2)

More detailed planning methods provide far more information about costs, activityoutputs, and operating rates.

To address the operation level of a cost center in the analysis of actual costs,during planning, planned costs and activity input should be classified as eitheractivity-independent costs or activity-dependent costs. This will give the systemthe information necessary to calculate target costs. A change in the operating levelfor an activity type results in a changed value for target costs. The operating raterepresents the actual activity quantity of an activity type in a period divided by theplanned activity quantity of an activity type.

Target costs = planned fixed costs + planned variable costs x operating rate.

The target costs are costs that are expected for a certain operating rate. They formthe basis of the target/actual cost comparison, in addition to the plan/actual costcomparison. Plan cost values are statistical values that do not take into accountthe changes in operating rates. Target costs, however, are dynamic values thatcontinuously change according to the activity types. As a result, these valuesprovide much more information regarding the calculation of the operating rateby the cost center.

These planning methods are used to enable flexible marginal costing.

Easy Cost PlanningEasy Cost Planning makes it easier to enter data in the system. With ExecutionServices, the system automatically proposes the data to be posted. The proposeddata is based on the data that you entered with the Easy Cost Planning tool.



Easy Cost Planning and Execution Services work in the following sequence:

• Costing models are defined as predefined quantity structures that dependon allocation bases (cost drivers).

• Easy Cost Planning uses these costing models.• Actual costs are recorded using Execution Services on the basis of the

planned data.

Figure 145: Easy Cost Planning

This planning method corresponds to planning using unit costing. However,you can predefine quantity structures (costing models) and have the quantityof resources depend on the allocation bases being planned (cost drivers). Forexample, you could have the system propose the resource quantities of the quantitystructure based on the personnel time and the additional costs you enter.



Figure 146: Templates for Easy Cost Planning

You can predefine quantity structures for Easy Cost Planning using costing models(planning forms that are known as templates). In the template of the costingmodel, you can control quantities, prices, and the activation of the entry withformulas or conditions. You can use characteristics that are assigned to the costingmodel as variables for these formulas/conditions. When you plan costs later, youneed to enter only the values of these characteristics to plan the correspondingquantities of all resources.

Menu Paths for Planning in Cost Center Accounting

Action Menu Path

Plan costs for a cost element Accounting → Controlling → CostCenter Accounting → Planning →Cost and Activity Inputs → Change

Plan costs using an activity type Accounting → Controlling → CostCenter Accounting → Planning →Activity Output/Prices → Change



Plan activity-dependent costs Accounting → Controlling → CostCenter Accounting → Planning →Costs and Activity Inputs → Change

Run a report for cost center planning Accounting → Controlling → CostCenter Accounting → InformationSystem → Reports for Cost CenterAccounting → Reports for Cost CenterAccounting → Cost Centers: PlanningOverview

Run automatic price calculation Accounting → Controlling → CostCenter Accounting → Planning →Allocations → Price Calculation



Exercise 26: Planning in Cost CenterAccounting

Exercise ObjectivesAfter completing this exercise, you will be able to:• Use the planning tools and see how certain information is planned in master

data records

Business ExampleTo forecast costs and revenues, your enterprise will use the planning tools toenter planning data in the SAP system. This planning data will be used forplan/actual comparisons to see how different areas of responsibility performed.The comparisons will also be used to control and monitor processes, thus makingadjustments or corrections possible if any deviations from the plan occur.

You want to examine different planning functions in Cost Center Accounting andsee some of the options for planning cost center inputs and outputs.

Task 1:For cost element planning, use the SAPALL planner profile. Plan primary costsby entering planning data for the cost elements that are to be used for posting theservice or material consumption as actual values.

1. Plan the costs for cost element 417000 for services used on your cost center,SERV-##. Set up the plan for periods 1 to 12 of the current fiscal year. Useversion 0. The fixed plan costs for the year are 31500. Have this amountdistributed in equal amounts to the individual accounting periods. Save theplan data.

2. Plan the cost element direct labor costs (420000) on your cost center,PROD-##. Specify periods 1 to 12 and the current fiscal year. Use version 0.The fixed plan costs for the year are 9600. Distribute this amount in equalamounts to the individual accounting periods. Save the plan data.

Task 2:For activity type planning, enter a plan for your cost center and its activity types,which defines a measurable output. Plan the price and the plan quantity. Distributeall the entered quantities equally over the periods.

1. Plan the repair hours to be provided by your service cost center, SERV-##,using activity type REP-##. The planned activity quantity is 1000 hours andthe fixed price is 30 per unit. Change the equivalence number to 2.




2. Set up the service cost center to check the fixed assets on a regular basis.Do this by giving cost center SERV-## activity type CHK-##. Specify theplanned activity quantity as 500 hours and the fixed price as 20 per unit.Make sure that equivalence number 1 is entered.

3. Plan activity type 1421 as the activity output of your production cost center,PROD-##. Specify the planned activity quantity as 540 hours and the fixedactivity price as 90 per unit. The equivalence number should be 1.

Task 3:Plan activity-dependent costs.

1. To reflect that some costs will be incurred by a cost center only if certainactivity types are produced by that cost center, plan those costs as activitydependent. Plan the cost as a variable cost if it depends on the outputquantity of this activity type. Plan the cost as a fixed cost if the cost doesnot depend on the activity quantity.

Specify that operating supplies costs for the service cost center SERV-##depend on activity type REP-##. Plan the operating supplies costs (costelement 403000) as activity-dependent costs, with 3000 fixed plan costsand 9000 variable plan costs.

Task 4:Plan activity input.

1. Specify that your production cost center, PROD-##, plans to consume 480hours of activity type CHK-## and 950 hours of activity type REP-## fromyour service cost center, SERV-##.

Note: Use the activity input planning layout (1-102) to enterthe planning data. Choose Next Layout to change the layout to1-102. The activity provided by the service cost center, whichthe production cost center wants to use, is not dependent on theactivity quantity provided by the production cost center (it is activityindependent). Make sure the Activity Type field is blank.




Task 5:Execute a planning overview report.

1. Execute the Cost Centers: Planning Overview report for periods 1 to 12 ofthe current fiscal year and plan version 0. Run the report to view in detail theeffect of the planning steps on the service cost center, SERV-##. Reviewthe prices.

Hint: Scroll through the report to see the activities planned for theselected cost center.

Task 6:Calculate plan activity price automatically.

Note: If a cost center plans an activity type, you must also plan thecosts the cost center expects to incur when producing the plannednumber of units of the activity. You must code costs that have beenplanned independently of the activity so you can calculate the unit costof producing the activity. Automatic plan price calculation is used tocalculate this unit cost (price always refers to a unit of the activity typeto be produced).

If a cost center produces more than one activity type, you must distributethe activity-independent plan costs among the activity types of the costcenter to calculate the price of each single activity type. In this example,the equivalence numbers, which were entered in the exercise on activitytype planning, are used as a basis for cost splitting.

1. Run the automatic plan price calculation for your service and production costcenters. Use your cost center group CENTERS-## for periods 1 to 12 inthe current fiscal year. Select No Business Processes, Test Run, and DetailLists from the processing options.

Compare your results with the prices that were planned manually (in theexercise for activity type planning). Make a note of the plan activity pricesdetermined manually and automatically. If your automatically planned pricesare acceptable, post the new prices.

Activity Type/CostCenter

Manual Price Automatic Price

CHK-##/SERV-##

REP-##/SERV-##

1421/PROD-##



Solution 26: Planning in Cost CenterAccountingTask 1:For cost element planning, use the SAPALL planner profile. Plan primary costsby entering planning data for the cost elements that are to be used for posting theservice or material consumption as actual values.

1. Plan the costs for cost element 417000 for services used on your cost center,SERV-##. Set up the plan for periods 1 to 12 of the current fiscal year. Useversion 0. The fixed plan costs for the year are 31500. Have this amountdistributed in equal amounts to the individual accounting periods. Save theplan data.

a) Choose Accounting → Controlling → Cost Center Accounting →Planning → Cost and Activity Inputs → Change.

b) Enter the following data.

Field Value or Action

Version 0

From Period 1

To Period 12

Fiscal Year current fiscal year

Cost Center SERV-##

Cost Element 417000

c) Select Form-Based. Click the icon for the overview screen in theapplication toolbar.

d) In the Plan Fixed Costs column, enter 31500. In the Distribution Keycolumn (next to the value for the plan fixed costs), enter 1. Choose Post.

e) Remain in the Change Cost Element/Activity Input Planning: InitialScreen for the next exercise.




2. Plan the cost element direct labor costs (420000) on your cost center,PROD-##. Specify periods 1 to 12 and the current fiscal year. Use version 0.The fixed plan costs for the year are 9600. Distribute this amount in equalamounts to the individual accounting periods. Save the plan data.

a) Enter the following data.


Version 0

From Period 1

To Period 12


Cost Center PROD-##

Cost Element 420000

b) Click the icon for the overview screen in the application toolbar.

c) In the Plan Fixed Costs column, enter 9600. In the Distribution Keycolumn immediately next to the value for the plan fixed costs, enter1. Choose Post.




Task 2:For activity type planning, enter a plan for your cost center and its activity types,which defines a measurable output. Plan the price and the plan quantity. Distributeall the entered quantities equally over the periods.

1. Plan the repair hours to be provided by your service cost center, SERV-##,using activity type REP-##. The planned activity quantity is 1000 hours andthe fixed price is 30 per unit. Change the equivalence number to 2.

a) Choose Accounting → Controlling → Cost Center Accounting →Planning → Activity Output/Prices → Change.



Version 0

From Period 1

To Period 12


Cost Center SERV-##

Activity Type REP-##

c) Click the icon for the overview screen in the application toolbar. Enterthe following data.


Plan Activity 1000

Distribution Key 1

Fixed Price 30

Equivalence Number 2

d) Choose Post. Remain in the Change Activity Type/Price Planning:Initial Screen for the next exercise.




2. Set up the service cost center to check the fixed assets on a regular basis.Do this by giving cost center SERV-## activity type CHK-##. Specify theplanned activity quantity as 500 hours and the fixed price as 20 per unit.Make sure that equivalence number 1 is entered.

a) On the Change Activity Type/Price Planning: Initial Screen, enter thefollowing data.


Cost Center SERV-##

Activity Type CHK-##

b) Click the icon for the overview screen in the application toolbar. Enterthe following data.


Plan Activity 500

Distribution Key 1

Fixed Price 20

c) Verify that the Equivalence Number field is set to 1.

d) Choose Post.

Remain in the Change Activity Type/Price Planning: Initial Screenfor the next exercise.




3. Plan activity type 1421 as the activity output of your production cost center,PROD-##. Specify the planned activity quantity as 540 hours and the fixedactivity price as 90 per unit. The equivalence number should be 1.

a) On the Change Activity Type/Price Planning: Initial Screen, enter thefollowing data for activity type 1421.


Cost Center PROD-##

Activity Type 1421

b) Click the icon for the overview screen in the application toolbar.

c) Enter the following data.


Plan Activity 540

Distribution Key 1

Fixed Price 90

d) Choose Post.

Task 3:Plan activity-dependent costs.

1. To reflect that some costs will be incurred by a cost center only if certainactivity types are produced by that cost center, plan those costs as activitydependent. Plan the cost as a variable cost if it depends on the outputquantity of this activity type. Plan the cost as a fixed cost if the cost doesnot depend on the activity quantity.




Specify that operating supplies costs for the service cost center SERV-##depend on activity type REP-##. Plan the operating supplies costs (costelement 403000) as activity-dependent costs, with 3000 fixed plan costsand 9000 variable plan costs.

a) Choose Accounting → Controlling → Cost Center Accounting →Planning → Costs and Activity Inputs → Change.



Version 0

From Period 1

To Period 12


Cost Center SERV-##

Activity Type REP-##

Cost Element 403000

c) Choose Form-Based. Click the icon for the overview screen in theapplication toolbar.

d) Enter the following data.


Plan Fixed Costs 3000

Distribution Key 1

Plan Variable Costs 9000

Distribution Key 1

e) Choose Post.

f) Remain in the Change Cost Element/Activity Input Planning: InitialScreen for the next exercise.




Task 4:Plan activity input.

1. Specify that your production cost center, PROD-##, plans to consume 480hours of activity type CHK-## and 950 hours of activity type REP-## fromyour service cost center, SERV-##.

Note: Use the activity input planning layout (1-102) to enterthe planning data. Choose Next Layout to change the layout to1-102. The activity provided by the service cost center, whichthe production cost center wants to use, is not dependent on theactivity quantity provided by the production cost center (it is activityindependent). Make sure the Activity Type field is blank.

a) On the Change Cost Element/Activity Input Planning: Initial Screen,choose Next Layout to change the layout to 1-102.



Cost Center PROD-##

Activity Type Make sure this is blank.

Sender Cost Center SERV-##

Sender Activity Type CHK-##

To REP-##

c) Click the icon for the overview screen in the application toolbar.

d) Enter the following data.


Plan Fixed Consumption 480 for CHK-##; 950 for REP-##

Distribution Key 1

e) Choose Post.




Task 5:Execute a planning overview report.

1. Execute the Cost Centers: Planning Overview report for periods 1 to 12 ofthe current fiscal year and plan version 0. Run the report to view in detail theeffect of the planning steps on the service cost center, SERV-##. Reviewthe prices.

Hint: Scroll through the report to see the activities planned for theselected cost center.

a) Choose Accounting → Controlling → Cost Center Accounting →Information System→ Reports for Cost Center Accounting → PlanningReports → Cost Centers: Planning Overview.



Cost Center SERV-##


Period 1

To 12

Version 0

c) Execute the report.

d) In the activity type overview, select an activity type and choose DisplayActivity Price in the upper toolbar.




Task 6:Calculate plan activity price automatically.

Note: If a cost center plans an activity type, you must also plan thecosts the cost center expects to incur when producing the plannednumber of units of the activity. You must code costs that have beenplanned independently of the activity so you can calculate the unit costof producing the activity. Automatic plan price calculation is used tocalculate this unit cost (price always refers to a unit of the activity typeto be produced).

If a cost center produces more than one activity type, you must distributethe activity-independent plan costs among the activity types of the costcenter to calculate the price of each single activity type. In this example,the equivalence numbers, which were entered in the exercise on activitytype planning, are used as a basis for cost splitting.

1. Run the automatic plan price calculation for your service and production costcenters. Use your cost center group CENTERS-## for periods 1 to 12 inthe current fiscal year. Select No Business Processes, Test Run, and DetailLists from the processing options.

Compare your results with the prices that were planned manually (in theexercise for activity type planning). Make a note of the plan activity pricesdetermined manually and automatically. If your automatically planned pricesare acceptable, post the new prices.




Activity Type/CostCenter

Manual Price Automatic Price

CHK-##/SERV-##

REP-##/SERV-##

1421/PROD-##

a) Choose Accounting → Controlling → Cost Center Accounting →Planning → Allocations → Price Calculation.

b) Choose Cost Center Group. In the Cost Center Group field, enterCENTERS-##.

Choose No Business Processes.

c) Enter the following data.


Version 0

Period 1

To 12


d) Select Test Run and Detail Lists.

e) Choose Execute.

If your activity type prices have been calculated correctly, choose Post.

Choose Continue to delete the message and exit the transaction.



Lesson Summary

You should now be able to:• Explain the purpose of statistical key figures and the methods used to plan

them• Describe the cost allocation methods used in planning• Describe the objectives of activity type planning• Name the typical sequence of steps involved in cost center planning• Describe a few simple and complex planning options• Describe the purpose and use of Easy Cost Planning functions


TFIN20_1 Lesson: Advanced Planning Techniques for Internal Orders

Lesson: Advanced Planning Techniques for InternalOrders

Lesson OverviewYou learn about special planning methods for overhead cost orders and performoverall and detailed planning for an order. The differences between plan-integratedand non-plan integrated orders are illustrated and Easy Cost Planning is introduced.


• Describe different planning methods• Explain the plan profile• Perform overall and detailed planning on the internal order• List the options for automatic planning• Distinguish between orders with and orders without integrated planning• Describe Easy Cost Planning

Business ExampleThe IDES Group management is concerned with controlling expenditure.However, they have not yet determined how they want to address this requirementin the SAP System. Your task is to explain the difference between planningand budgeting for overhead cost orders. You have spoken to several cost centermanagers and have found that there are many different ways in which they wouldlike to use the overhead order functions.

Some managers want to plan their orders in great detail, while others want to planmore generally. They also want to know how to handle orders that are createdduring the fiscal year and, therefore, not included in the initial planning process.Many are concerned that using this application will increase the amount of manualplanning that is required of them.

You need to prepare a response to these managers, describing how the SAP systemsupports order planning.



Figure 147: Planning versus Budgeting

During order planning, you enter costs, activities and business processes that youexpect to incur during the life cycle of an order. With order planning, you cancompare plan and actual costs, and carry out differentiated variance analysis.

You administrate the approved cost framework for an order or an order group usingBudget Management. The budget is the approved cost structure for an order anddiffers from the cost plan in that it is binding. The budget is the device by whichmanagement approves the expected costs for an order over a given timeframe.

You can enter the order budget manually or copy budget information from anyplan version.



Figure 148: Planning Scope and Methods

Cost planning is generally performed on orders with long durations. Orders thatonly exist for a very short period, such as orders for unexpected small repairs,are usually not planned.

Internal order planning provides three different levels of cost planning:

• Overall planning is the simplest way of planning costs for orders. You canestimate overall and annual values for an order separately from the costelement.

• When more detailed information is available for an internal order, you canuse primary and secondary cost and revenue planning. This type coversthe planning of primary costs, activity inputs, and revenues in manualplanning. In automatic planning, you can charge the order with overheads,distribution costs, periodic reposting costs, assessment costs, indirect activityallocation costs, process costs, and settlement costs. If the order is integratedinto planning, you can carry out a plan credit using periodic repostings orsettlement.

• If you have access to more detailed information on sources of supply,quantities, and prices, you can perform unit costing. With unit costing youcan plan one level below the cost element level.

You can plan statistical key figures as a basis for allocations and as a means tocalculate the management key figures for your orders.



Figure 149: Planning Profile for Overall Planning

For overall planning, you need to create a planning profile (not a planner profile)and assign it to the order type. Of course you can use delivered standard SAPprofiles as well.

Within the profile you can specify the time horizon and whether you want toplan on a yearly or overall basis.

Please note that only those cost centers, cost elements, activity types and statisticalkey figures that are organized into groups and stored in the planning profile canbe taken into account during planning.

For unit costing, you need to define and assign a costing variant (CO-PC). Thecosting variant will be the interface to the bill of materials, material master data androuting (the so-called quantity structure) that you need for planning on this level.



Figure 150: Overall planning

Overall planning is the most basic form of order planning. Here, you create a planby estimating the likely costs that will be incurred for an order. In addition to thedetailed, cost element-based planning values used in cost center accounting, youcan also save general overall planning values for each fiscal year separately fromcost elements. You maintain these values at the same time you maintain thosefrom cost element planning and unit costing.

You can plan either overall values or values for individual years. During overallplanning, you need to create a planning profile and store it in the order type.

You can call up the primary cost planning, unit costing, revenue planning, andactivity input planning functions straight from the overall planning screen. Aswell as the Overall Values column, the system also displays the planned total, theunit costing values, and the cost element plan. The total planned value is thesum of all the cost planning forms used (overall, cost and revenue element, unitcosting, and activity input planning).



Figure 151: Versions: Settings for Integrated Planning

You can plan your internal orders in multiple versions.

When you create a controlling area, the SAP system automatically creates version000, which is valid for five fiscal years. You can also plan alternative versions.Note that the SAP system always uses version 000 when referencing actualpostings.

Alternative versions only allow you to store planning data for internal orders, or, ifyou are using transfer prices, it will allow you to store parallel valuations.

There are two indicators used for integrated planning in the version:

• Integrated Planning

– This indicator governs whether planning data is passed on to ProfitCenter Accounting and the Special Purpose Ledger. It also ensures thateach planning change is documented with a plan line item.

• Integrated planning with cost centers/business processes

– To ensure that internal order planning is included in Cost CenterAccounting and Activity-Based Accounting, this indicator must beactive in the plan version.

To use integrated planning for individual orders, you also need to set the relevantindicator in the order master. You can create a default setting for this in theorder type.



Figure 152: Effects of Plan-Integrated Orders on Planning

Within integrated planning for internal orders, you can integrate cost elementand activity input planning for an internal order into cost center or business processplanning. All the planned business allocations on the internal order are thenautomatically updated on the sender/receiver cost center or on the sender/receiverbusiness process.

You can only use integrated planning for internal orders if the internal orderalready exists when the cost centers are planned. In the case of long term orders,you can use integrated planning.

• If you are planning activity inputs for an integrated planning order, theplanned activity is updated to the cost center providing the activity.

• During planned settlement of the order, the order costs are debited fromthe receiver.

• Overhead calculations on plan-integrated orders debit the internal order andcredit a cost center.

• If you are using assessment and distribution, the planned costs of a sendercost center are allocated based on pre-defined assessment and distributionkeys.

• Periodic repostings of plan-integrated orders to cost centers are supported.



Figure 153: Copy Actual to Plan or Plan to Plan

You can copy both actual values and planned values from internal orders into aplan version.

The actual business transactions are assigned to the corresponding, manuallyplanned business transactions.



Exercise 27: Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:• Plan orders using the overall planning function and use the options available

for detailed planning with cost elements or unit costing.

Business ExampleBased on your discussions with the cost center managers, you know that the IDESGroup uses the overall planning functions to produce preliminary plans for thefuture. For each fiscal year, unit costing is used to produce more detailed planningat cost element or activity level, in particular for short-term orders.

To test this function, you will be using cost element planning to create a currentfiscal year plan for your PC repair/maintenance order. Since this is a standingorder, you create an overall plan for the following two fiscal years. You use theunit costing function to create a plan for your marketing brochure order for thecurrent fiscal year. Because this is a short-term individual order, no other planningis required.

Task 1:Create a plan for your PC repair/maintenance order using the overall planningand cost element planning functions. Use the overall planning to plan the nexttwo fiscal years.

Use overall planning to create a detailed plan for the current fiscal year at costelement level.

1. Using the overall planning function, plan EUR 50,000 for all fiscal years,EUR 16,000 for the next fiscal year, and EUR 17,500 for the followingfiscal year. Check and save your order plan.

Caution: Note that when you access unit costing or cost elementplanning via the overall planning function and select “Save” on theunit costing or cost element planning screens, the data is only savedtemporarily. You must select Save at the overall planning level inorder to save the plans for your order properly.

2. For the current fiscal year and plan version 0, use the overall planning screento plan EUR 10,000 for direct labor costs (cost element 420000), EUR 3,600for spare parts (cost element 404000), EUR 400 for office supplies (costelement 476000), and EUR 1,000 for IT materials (cost element 476100).Save your cost element planning information.




Task 2: OptionalUse the unit costing function to produce a plan for your marketing brochuresfor the current fiscal year.

Use the overall planning screen to branch to unit costing.

1. Use unit costing to plan the anticipated costs for the publication of your cellphone marketing brochures.

Use the Variable item category for your entries.

You need to order 60 hours of printing, at a cost of EUR 50 per hour.

Plan 2 days of photographic services at EUR 1,000 per day. Plan bothitems using the cost element 417000 (Purchased Services).

Define a subtotal row (category S) for Total Purchased Services.

You also need packaging materials for your brochures. Plan 5000 piecesof packaging at EUR 1 each. These costs should be planned using thepackaging materials cost element 405000.

Create a totals row (category S) for the Total Unit Costing Plan.

Save the order plan.

2. Call up the Orders: Actual/Plan/Variance report for your marketingbrochures for the whole fiscal year.



Solution 27: PlanningTask 1:Create a plan for your PC repair/maintenance order using the overall planningand cost element planning functions. Use the overall planning to plan the nexttwo fiscal years.

Use overall planning to create a detailed plan for the current fiscal year at costelement level.

1. Using the overall planning function, plan EUR 50,000 for all fiscal years,EUR 16,000 for the next fiscal year, and EUR 17,500 for the followingfiscal year. Check and save your order plan.

Caution: Note that when you access unit costing or cost elementplanning via the overall planning function and select “Save” on theunit costing or cost element planning screens, the data is only savedtemporarily. You must select Save at the overall planning level inorder to save the plans for your order properly.

a) SAP Easy Access menu → Internal Orders → Planning → OverallValues → Change Enter your PC repair/maintenance order number inthe Order field.

Choose Enter.

Enter 50000 in the Overall field.

Enter 16000 in the field for the next fiscal year.

Enter 17500 in the field for the next fiscal year +1.

Choose ENTER to view the updated Planned total column.

Choose Check.

If no errors are found, save your plan.

2. For the current fiscal year and plan version 0, use the overall planning screento plan EUR 10,000 for direct labor costs (cost element 420000), EUR 3,600for spare parts (cost element 404000), EUR 400 for office supplies (costelement 476000), and EUR 1,000 for IT materials (cost element 476100).




Save your cost element planning information.

a) SAP Easy Access menu → Internal Orders → Planning → OverallValues → Change

Place your cursor in the Plan field for the current fiscal year.

Choose Extras → Detailed Planning → Primary Costs

In the Total plan costs column, enter:

- 10000 for cost element 420000, Direct labor costs.

Use the “Position…” pushbutton to navigate more quickly.

- 3600 for cost element 404000, Spare parts.

- 400 for cost element 476000, Office supplies.

- 1000 for cost element 476100, IT materials.

Choose Save to temporarily save your cost element plan.

Save your overall plan

Task 2: OptionalUse the unit costing function to produce a plan for your marketing brochuresfor the current fiscal year.

Use the overall planning screen to branch to unit costing.

1. Use unit costing to plan the anticipated costs for the publication of your cellphone marketing brochures.

Use the Variable item category for your entries.

You need to order 60 hours of printing, at a cost of EUR 50 per hour.

Plan 2 days of photographic services at EUR 1,000 per day. Plan bothitems using the cost element 417000 (Purchased Services).

Define a subtotal row (category S) for Total Purchased Services.

You also need packaging materials for your brochures. Plan 5000 piecesof packaging at EUR 1 each. These costs should be planned using thepackaging materials cost element 405000.

Create a totals row (category S) for the Total Unit Costing Plan.

Save the order plan.

a) Enter the number of your marketing brochure order in the Order field.

Choose Enter.

Ensure that the cursor is in the field for the current fiscal year.




Choose Extras → Unit Costing.

Confirm the dialog box containing the costing variant PC02.

For item 1, enter:

- V in the Category column.

- 60 in the Quantity column.

- H in the Unit of Measure field.

- Printing Services in the Description column.

- 50 in the Price - Total field.

- 417000 in the Cost element column.

For item 2, enter:



- D (days) in the Unit of Measure field.

- Photographic Services in the Description column.

- 1000 in the Price - total field.

- 417000 in the Cost Element column.

For item 3, enter:

- S in the Category column.

- Place the cursor in the Formula field. Either double-click on theline or select Insert Totals Item. The formula =(1:3) should appear inthe Formula column.

- Total Purchased Services in the Description field.

For item 4, enter:



- PC (pieces) in the Unit of measure column.

- Packaging in the Description field.

- 1 in the Price - total field.

- 405000 in the Cost Element column.

For item 5, enter:

- S in the Category column.




- Place the cursor in the Formula column. Select Insert Totals Item.The formula =(1:5) should appear in the Formula column.

- Total Unit Costing Plan in the Description field.

- Choose ENTER to view the results in the Value – Total column.

Select Save to temporarily save your unit costing plan.

Choose Save to save the changes to the order plan.

2. Call up the Orders: Actual/Plan/Variance report for your marketingbrochures for the whole fiscal year.




Enter 1 in the From period field.

Enter 12 in the To period field.


Enter the number of your marketing brochure order in the “Or value(s)”field.

Choose Execute.



Lesson Summary

You should now be able to:• Describe different planning methods• Explain the plan profile• Perform overall and detailed planning on the internal order• List the options for automatic planning• Distinguish between orders with and orders without integrated planning• Describe Easy Cost Planning



Lesson: Planning Aids

Lesson OverviewYou can use several planing aids to speed up the entry of plan data.


• Explain the planning aids provided by the SAP system

Business ExampleYou wish to use several planning aids to simplify and speed up the entry of plandata.

Copy Plan Data or Actual Data to Plan

Figure 154: Copy Plan Data or Actual Data to Plan

To speed up planning data entry, you can obtain the plan values by copying planor actual data.


TFIN20_1 Lesson: Planning Aids

If you want to reuse large parts of your manual planning from the previousyear for your current fiscal year, or to transfer plan values within a fiscal year toa different period, or to generate alternate versions, you can use the tool Copyplanning.

By using the Copy planning function, you can select a reference version and atarget version to copy values from one version to another.

You can copy:

• Within fiscal years, versions, and cost centers• Between different fiscal years, periods, and versions

To assist your manual planning, you can select and copy posted actual datafrom cost centers. You can only use this function to copy transactions that youcan plan manually.

The selection criteria for actual data are cost centers (all cost centers, cost centergroups, or individual cost centers), fiscal year and from/to periods. You can alsospecify which actual data is to be copied.

It is possible to select any value groups in the copy function. For example, youcan restrict the selection to the data of a certain cost center, or use all of the data.You may also explicitly define the transactions which you wish to copy.

Revaluation

Figure 155: Revaluation



Using the plan revaluation function, you can increase or decrease planningdata on a percentage basis. This means you can combine the Copy Planningand Revaluation functions to create several different plan versions. This may beuseful if you have copied the plan data from the previous year or if you want todraft scenarios for different cases within a fiscal year.

You can revaluate costs and consumption. You can revaluate all cost elementsused in the primary cost element and revenue planning. You cannot revaluateassessment cost elements, imputed cost elements, and cost elements used inindirect activity allocation.

You can execute as many revaluations of cost center or cost element plans asrequired.

Plan line items are entered when you execute revaluation.

The percentages used during revaluation can be changed as often as you want. Ifyou repeat a revaluation using modified percentages, the old plan line items aredeleted. The revaluation always uses the original initial value.

If you do re-run a revaluation but you do not want to overwrite the existing results,you must define a new revaluation

Transferring Plan Values

Figure 156: Transferring Plan Values

Integrated planning enables you to transfer data from one of the pre-storedsystems in Cost Center Accounting to cost center planning.

If this data was planned in the upstream systems, and is transferred to cost centerplanning, then the corresponding data in Cost Center Accounting can be removed.



To use integrated planning, certain requirements need to be fulfilled in CostCenter Accounting and in the upstream systems. Therefore, before you cantransfer planned personnel costs from HR to primary cost planning in Cost CenterAccounting, for example, Cost Center Accounting must contain valid cost centersthat are assigned to the corresponding master data for personnel.

Plan Lock

Figure 157: Plan Lock

If the planning process in cost center accounting has been completed, the planningshould be locked to protect it from changes.

Use the block indicator in that version to lock the entire planning for a plan year.

Within the posting lock, you can block transactions that were not used forplanning (such as revenue plan on cost centers). You can lock planningtransactions for a combination of controlling area, fiscal year and version.

You can select the processes that are to be locked from a list.

You can also lock individual operation for all periods of the fiscal year or alloperation for a certain period.





Exercise 28: Planning Aids

Exercise ObjectivesAfter completing this exercise, you will be able to:• Enter plan data for the next fiscal year using the copy function.• Revaluate the copied plan data to bring it in line with projected costs.

Business ExampleYou want to enter planning data for the coming fiscal year more easily and quickly.You decide to copy your previous planning data because it has proved so reliable.

The new salary scale takes effect from January of the coming year, entailing a2% increase in personnel costs. You therefore need to adjust your salary costsfor the new year.

Task 1:Copy the planning data of all consulting cost centers to the next fiscal year.

1. All plan data of cost center group B## of periods 1 to 12 in the currentfiscal year is copied to the corresponding periods of the following fiscalyear in version 0. Should plan data already exist for these periods, it shallnot be overwritten. Run the copy functions as a Test Run with Details Lists.

2. What type of planning data was copied?

3. Leave the list and display the Notes (under Extras) on the copy function. Canyou also copy planning data from periodic repostings or assessments?

4. Now run the copy function as an Update Run.





1. Check whether the values have been posted to the cost centers. Call the CostCenter: Planning Overview report for the cost center “FI/CO Consulting”(301##), for thenext fiscal year and for periods 1 to 12 in version 0.

Task 3:Use the revaluation function to adjust your copied planning data to any projectedchanges.

1. Create a revaluation called Salary##. This is valid for the next fiscal yearin version 0.

2. Enter Salary Increases of 2% as a short text. The increase affects costelement 430000 and applies to all consulting cost centers (B##).

3. Define a cost increase of 2%. Save the revaluation.

4. Carry out the revaluation Salary## for all periods of the next fiscal year inversion 0. Check the Test run box.

5. Next, execute your revaluation as an Update Run so that your revaluatedplanning data is posted.

Task 4:Check the results of the revaluation.

1. Call the Cost Centers: Planning Overview report for a cost center of yourchoice for the next fiscal year in version 0. (Not cost center “Telephone”, asit does not carry salary costs.)

2. Display the line items for salary costs (cost element 430000).



Solution 28: Planning AidsTask 1:Copy the planning data of all consulting cost centers to the next fiscal year.

1. All plan data of cost center group B## of periods 1 to 12 in the currentfiscal year is copied to the corresponding periods of the following fiscalyear in version 0. Should plan data already exist for these periods, it shallnot be overwritten. Run the copy functions as a Test Run with Details Lists.

a) Cost Center Accounting: → Planning → Planning Aids → Copy →Plan to Plan

b)



Template

Version: 0

Period 1 to 12

Fiscal year Current

Target

Version: 0

Period 1 to 12

Fiscal year Next year

Existing planning data Do not change

Select Test run and Detail list.

Copy → Execute

2. What type of planning data was copied?

Answer: Primary costs, activities, statistical key figures

3. Leave the list and display the Notes (under Extras) on the copy function. Canyou also copy planning data from periodic repostings or assessments?

Answer: On the initial screen of Copy PlanningExtras → NotesYou can copy only those business transactions that can be planned manually.




4. Now run the copy function as an Update Run.

a) Deselect Test run.

Copy → Execute


1. Check whether the values have been posted to the cost centers. Call the CostCenter: Planning Overview report for the cost center “FI/CO Consulting”(301##), for thenext fiscal year and for periods 1 to 12 in version 0.

a) Cost Center Accounting: → Information System → Reports for CostCenter Accounting → Planning Reports → Cost Centers: PlanningOverview

b)


Cost center 301##


Period 1 to 12

Version: 0

Planning overview → Execute




Task 3:Use the revaluation function to adjust your copied planning data to any projectedchanges.

1. Create a revaluation called Salary##. This is valid for the next fiscal yearin version 0.

a) Cost Center Accounting: → Planning → Planning Aids → Revaluate→ Costs → Extras → Revaluation → Create

b)


Revaluation Salary##


Version: 0

Enter

2. Enter Salary Increases of 2% as a short text. The increase affects costelement 430000 and applies to all consulting cost centers (B##).

a)

Text 2% salary increase


Cost element 430000

3. Define a cost increase of 2%. Save the revaluation.

a) Goto → Definition

b)


From 1

To 12

Costs 2

Save your data.




4. Carry out the revaluation Salary## for all periods of the next fiscal year inversion 0. Check the Test run box.

a) On the Plan Revaluation: Initial Screen.


Version: 0

Period 1 to 12


Select Test run and Detail lists.

Revaluation Salary##

Transfer Posting → Execute

5. Next, execute your revaluation as an Update Run so that your revaluatedplanning data is posted.

a) Deselect Test run.

Transfer Posting → Execute

Task 4:Check the results of the revaluation.

1. Call the Cost Centers: Planning Overview report for a cost center of yourchoice for the next fiscal year in version 0. (Not cost center “Telephone”, asit does not carry salary costs.)

a) Cost Center Accounting: → Information System → Reports for CostCenter Accounting → Planning Reports → Cost Centers: PlanningOverview

b)


Cost center 301##


Period 1 to 12

Version: 0

Planning overview → Execute




2. Display the line items for salary costs (cost element 430000).

a) Position your cursor on the report row cost element 430000.

Display line items icon



Lesson Summary

You should now be able to:• Explain the planning aids provided by the SAP system



Unit SummaryYou should now be able to:• Set up the profiles for budgeting• Enter budgets on overhead cost orders• Set up availability control• Understand the results of budgeting and availability control• Transfer the budgets to the following year• Describe how planning features in SAP system could be used for planning

activities within your organization• Explain how different plan versions can be used• List the three cost accounting methods used in Management Accounting• Explain the purpose of statistical key figures and the methods used to plan

them• Describe the cost allocation methods used in planning• Describe the objectives of activity type planning• Name the typical sequence of steps involved in cost center planning• Describe a few simple and complex planning options• Describe the purpose and use of Easy Cost Planning functions• Describe different planning methods• Explain the plan profile• Perform overall and detailed planning on the internal order• List the options for automatic planning• Distinguish between orders with and orders without integrated planning• Describe Easy Cost Planning• Explain the planning aids provided by the SAP system





Test Your Knowledge

1. Name the planning aids provided by the SAP system.



Answers

1. Name the planning aids provided by the SAP system.

Answer:

• Copy Plan Data or Actual Data to Plan• Revaluation• Transferring Plan Values


TFIN20_1 Course Summary

Course SummaryYou should now be able to:

• Set up Overhead Cost Controlling with SAP ERP Financials. This includesthe posting of actual costs from preceding components, carrying outperiod-end closing, and planning.


Course Summary TFIN20_1


IndexAactivity type, 413activity type allocation, 420activity-dependent costs, 415,418

activity-independent costs,411, 418

assessment, 412Ccost accounting methods, 403cost allocation, 413cost element planning, 418costs

activity-independent, 411Ddistribution, 412Pplan reconciliation, 419

planner profile, 402planning

activity type, 413activity-dependent costs,418activity-independentcosts, 418cost element, 418statistical key figure, 409

planning layout, 401Sstatistical key figure, 409

layouts, 410values, 410

Ttarget cost, 421


Index TFIN20_1


FeedbackSAP AG has made every effort in the preparation of this course to ensure theaccuracy and completeness of the materials. If you have any corrections orsuggestions for improvement, please record them in the appropriate place in thecourse evaluation.
