Business Processes in Management Accounting for Service Industries and Public Sector, AC050 Col92

AC050
Business Processes in
Management Accounting for
Service Industries and Public
Sector
SAP ERP - Financials
Date
Training Center
Instructors
Education Website
Participant Handbook
Course Version: 92
Course Duration: 5 Day(s)
Material Number: 50098082
An SAP course - use it to learn, reference it for workLibrer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Copyright
Copyright © 2010 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose
without the express permission of SAP AG. The information contained herein may be changed
without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software
components of other software vendors.
Trademarks
• Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are
registered trademarks of Microsoft Corporation.
• IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®,
S/390®, AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation.
• ORACLE® is a registered trademark of ORACLE Corporation.
• INFORMIX®-OnLine for SAP and INFORMIX® Dynamic ServerTM are registered
trademarks of Informix Software Incorporated.
• UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group.
• Citrix®, the Citrix logo, ICA®, Program Neighborhood®, MetaFrame®, WinFrame®,
VideoFrame®, MultiWin® and other Citrix product names referenced herein are trademarks
of Citrix Systems, Inc.
• HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World
Wide Web Consortium, Massachusetts Institute of Technology.
• JAVA® is a registered trademark of Sun Microsystems, Inc.
• JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for
technology invented and implemented by Netscape.
• SAP, SAP Logo, R/2, RIVA, R/3, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP
EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo and mySAP.com
are trademarks or registered trademarks of SAP AG in Germany and in several other countries
all over the world. All other products mentioned are trademarks or registered trademarks of
their respective companies.
Disclaimer
THESE MATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLY
DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR APPLIED, INCLUDING
WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE SERVICE,
INFORMATION, TEXT, GRAPHICS, LINKS, OR ANY OTHER MATERIALS AND PRODUCTS
CONTAINED HEREIN. IN NO EVENT SHALL SAP BE LIABLE FOR ANY DIRECT,
INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY
KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST
PROFITS, WHICH MAY RESULT FROM THE USE OF THESE MATERIALS OR INCLUDED
SOFTWARE COMPONENTS.
g201032722443Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AboutThisHandbook
This handbook is intended to complement the instructor-led presentation of this
course, and serve as a source of reference. It is not suitable for self-study.
Typographic Conventions
American English is the standard used in this handbook. The following
typographic conventions are also used.
Type Style Description
Example text Words or characters that appear on the screen. These
include field names, screen titles, pushbuttons as well as menu names, paths, and options.
Also used for cross-references to other documentation
both internal and external.
Example text Emphasized words or phrases in body text, titles of
graphics, and tables
EXAMPLE TEXT Names of elements in the system. These include
report names, program names, transaction codes, table
names, and individual key words of a programming
language, when surrounded by body text, for example
SELECT and INCLUDE.
Example text Screen output. This includes file and directory names and their paths, messages, names of variables and
parameters, and passages of the source text of a program.
Example text Exact user entry. These are words and characters that
you enter in the system exactly as they appear in the documentation.
<Example text> Variable user entry. Pointed brackets indicate that you
replace these words and characters with appropriate
entries.
2010 © 2010 SAP AG. All rights reserved. iii Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

About This Handbook AC050
Icons in Body Text
The following icons are used in this handbook.
Icon Meaning
For more information, tips, or background
Note or further explanation of previous point
Exception or caution
Procedures
Indicates that the item is displayed in the instructor's
presentation.
iv © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Contents
Course Overview......................................................... vii
Course Goals ...........................................................vii
Course Objectives .....................................................vii
Unit 1: Overview of Management Accounting ...................... 1
General Tasks of Management Accounting .........................2
Overview of the Components in Management Accounting...... 11
Integration Within Management Accounting and with Other SAP
Applications ........................................................ 32
Unit 2: Organizational Units Used in Accounting ................ 39
Organizational Units Used in Accounting .......................... 40
Basic Data for Overhead Cost Controlling......................... 48
Unit 3: Meeting Reporting Requirements .......................... 77
Analytics in Management Accounting .............................. 78
Unit 4: Planning in Management Accounting ..................... 99
Introduction to Planning .............................................100
Planning Options in Overhead Cost Controlling ................. 111
Unit 5: Integrated Planning Process in Management
Accounting ...............................................................139
Integrated Planning Cycle ..........................................140
Integrating Template Allocation of Activities and Processes ...163
Unit 6: Integration Aspects of the Accounting Logic...........177
Postings from Other Applications ..................................178
Statistical and Real Postings .......................................202
New General Ledger Accounting ..................................213
Unit 7: Transaction-Based Postings in Management
Accounting ...............................................................229
Transaction-Based Postings in Overhead Management
Accounting ........................................................231
Transaction-Based Postings for Services on an Internal Order
with Revenue .....................................................253
Transaction-Based Postings for Services on a Sales Order ...275
2010 © 2010 SAP AG. All rights reserved. v Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Contents AC050
Transaction-Based Postings for Services on a Service Order
(Optional Lesson) ................................................302
Unit 8: Period-End Closing Aspects of Management
Accounting ...............................................................329
Using the Schedule Manager for Fast Close Options...........331
Period-End Closing in Overhead Cost Controlling...............337
Period-End Closing in Product Cost Controlling .................368
Financial Statement in Management Accounting................393
Unit 9: Appendix: Special Topics in Management
Accounting ...............................................................417
Management Accounting with Actual Costing or Transfer Prices
(Optional)..........................................................418
Reconciliation Ledger (Optional)...................................427
Master Data Governance for Financials (Optional)..............434
Index .......................................................................443
vi © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

CourseOverview
Management Accounting provides functions for dealing with general business
processes in accounting. This course explains the cross-application integration of
important business processes and its effect on Management Accounting. A sample
company is used to show how Management Accounting can be implemented
and mapped in the SAP ERP system.
The course introduces the Management Accounting functions and describes how
they are integrated without going into too much detail on how to use them. With
the knowledge you will gain here, you will be able to assess the relevance of
Management Accounting for your own company.
Target Audience
This course is intended for the following audiences:
• Project managers and project team members
• People responsible for implementing internal accounting functions
• Anyone who wants an overview of the business processes in Management
Accounting and their internal and external integration
Course Prerequisites
Required Knowledge
• SAP01: SAP Overview or SAPFIN: SAP Financials Overview
• Basic knowledge of cost accounting and related business processes
• Experience in using the SAP user interface
Course Goals
This course will prepare you to:
• Explain the concepts and methodology used in Management Accounting
business processes
• Describe the functions Management Accounting offers to perform cost
allocation and planning
• Describe how Management Accounting interacts with other SAP ERP
processes
Course Objectives
After completing this course, you will be able to:
2010 © 2010 SAP AG. All rights reserved. vii Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Course Overview AC050
• Execute the core Management Accounting functions
• Identify the components in Management Accounting that address different
business requirements
• Explain integration within Management Accounting
• Explain how Management Accounting is integrated with other SAP system
components
• Describe various costing options and explain their differences
• Decide which Management Accounting tools to use in given business
situations
viii © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit1
Overview of Management Accounting
Unit Overview
This unit explains the general tasks of Management Accounting and gives
an overview of its components. It shows how the Management Accounting
components are interrelated and how they interact with other SAP applications.
Unit Objectives
After completing this unit, you will 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
• List the main components of Management Accounting and their purpose
• Match components with their function
• Explain the most important integration points between Management
Accounting components
• Explain the major integration points between Management Accounting and
other SAP applications
Unit Contents
Lesson: General Tasks of Management Accounting ..........................2
Lesson: Overview of the Components in Management Accounting ...... 11
Exercise 1: Management Accounting Components..................... 27
Lesson: Integration Within Management Accounting and with Other SAP
Applications ....................................................................... 32
2010 © 2010 SAP AG. All rights reserved. 1 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Lesson: General Tasks of Management Accounting
Lesson Overview
This lesson explains the differences between Management Accounting (internal
accounting) and Financial Accounting (external accounting) in SAP solutions.
It deals with the various central components of Management Accounting and
shows how they interact and how financial data flows between them and other
components of the SAP system.
Lesson Objectives
After completing this lesson, you will 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
Business Example
Your initial focus is to gain an understanding of the purpose of Management
Accounting and how it works with Financial Accounting to provide financial
and controlling information.
Financial Accounting Compared with Management
Accounting
Accounting includes many different functions and business processes. The SAP
system architecture consists of specialized accounting components that serve
various accounting functions.
2 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: General Tasks of Management Accounting
Figure 1: Accounting Architecture
SAP Financial Supply Chain Management concentrates on functions such as
Cash Management, Treasury Management (funds, foreign exchange, derivatives,
securities, and so on), Loans Management and Market Risk Management.
Financial Accounting mainly involves the general ledger (G/L), processing
receivables and payables, and asset accounting.
Investment Management supports planning, investment, and financing for capital
investment measures.
Management Accounting offers many tools that can be used to prepare operating
data for business analysis and management decisions.
2010 © 2010 SAP AG. All rights reserved. 3 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Figure 2: Comparison of Financial and Management Accounting
Management Accounting contains all the functions necessary for effective cost
and revenue controlling. It covers all aspects of management controlling and
includes many tools for compiling information for company management.
Financial reports required for external reporting (such as balance sheets and profit
and loss statements) are created in Financial Accounting. Similar to the various
legal requirements set by the relevant financial authorities, these external reporting
requirements are usually prescribed through general accounting standards, such
as Generally Accepted Accounting Principles (GAAP) or International Financial
Reporting Standard (IFRS).
4 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: General Tasks of Management Accounting
Figure 3: Internal and External Reporting
Although internal and external users often have different requirements with regard
to accounting information, much of the underlying data is relevant for both
purposes. It can be prepared in different ways to meet the various needs.
Standardized accounting intended for external users is often referred to as financial
accounting . Management accounting generally refers to the non-standardized
accounting approach that supports management decision making.
The kind of financial accounting reports that are normally required include the
profit and loss statement and balance sheet. Management accounting reports
can be structured individually, a common example being the plan/actual cost
comparison for a specific department for the current period.
Management Accounting Components
Management Accounting comprises several components, as shown in the figure.
The black arrows between the different Management Accounting components
display the typical flow of cost and activity quantities (such as working hours)
between these components. These costs can be transferred to a production order as
an overhead rate. The costs could also be charged to the same production order
as working hours, with the labor costs calculated by multiplying the number of
hours by a specific hourly rate.
2010 © 2010 SAP AG. All rights reserved. 5 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Figure 4: Management Accounting Architecture
Similarly, costs from Overhead Cost Controlling (CO-OM) and Product Cost
Accounting (CO-PC) can flow into Profitability Analysis (CO-PA), where,
together with revenue data, they can be used to calculate operating profit, making
it possible to establish how cost-effective the various area are.
Other SAP applications can post costs or revenues to Management Accounting.
Postings to an expense account in Financial Accounting can result in cost postings
to CO-OM, for example. In the same way, Financial Accounting can post revenues
directly to Profitability Analysis (CO-PA). Cost flows also occur between FI and
the CO-PC component (where raw material costs incurred in the production
process are entered). Backflow to Financial Accounting occurs too, if production
costs have been activated as finished products or WIP (work in process).
Other SAP ERP components such as SAP ERP Human Capital Management and
Logistics (Materials Management, Sales, and Production Planning) are integrated
with Management Accounting, as you can see from the logistics process flow
(procurement, production, warehousing, and sales) in the figure Management
Accounting Architecture .
The next figure shows several typical functions in the most important areas of
Management Accounting and illustrates the flow of costs.
6 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: General Tasks of Management Accounting
Figure 5: Flow of Costs in Management Accounting
The main purpose of Overhead Cost Controlling (CO-OM) is to take costs that
cannot be assigned directly to the goods and services of a company and allocate
them as far as is possible according to their cause. Account assignment objects for
such costs include cost centers and internal orders, for example. This means that
within the planning process it is possible to plan not just costs but also internal
activities that can then be used to calculate prices for the activity types. If, during
the course of the year, activities are supplied from the cost centers to other cost
centers or even to the shop floor area of the company, the activities – with the
prices valuated – flow to the corresponding receivers (consumers). At the end of
the period, the overhead cost object balances are calculated and then allocated to
Product Cost Controlling or Profitability and Sales Accounting.
Product Cost Controlling takes the costs from producing goods and services
(and, in certain cases, also their sales revenues) and settles them to Financial
Accounting or to Profitability and Sales Accounting.
Profitability and Sales Accounting is used for enterprise planning. Its main
function, however, is to determine the actual business profit and loss. Two views
are always used for this: The external view in the market for analyzing profitability
segments (Profitability Analysis) and the internal view of individual parts of the
company responsible for profit (Profit Center Accounting).
2010 © 2010 SAP AG. All rights reserved. 7 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Figure 6: Typical Tasks in Management Accounting
The main components of Management Accounting are used for different tasks
and types of analysis:
Classify costs and reconcile data
Cost Element Accounting classifies the costs and revenues posted to
Management Accounting. It also enables you to reconcile costs between
Management Accounting and Financial Accounting.
The reconciliation ledger in Cost Element Accounting provides reporting
functions for identifying the cost and revenue differences between
Financial Accounting and Management Accounting. It can also be used for
reconciliation postings to Financial Accounting, if necessary.
Control overhead costs and allocate costs
Overhead Cost Controlling examines cost factors in the functional areas of
an enterprise. Overhead costs include costs that cannot be directly assigned
to a product or a service. It is often difficult to determine what causes
overhead costs. Activity-Based Costing (ABC) provides other methods for
cost allocation.
Valuate the cost of goods or services
Product Cost Controlling is used for calculating and valuating the costs
involved in manufacturing a product and the costs involved in providing a
service or carrying out a project (plan and actual). This component provides
tools for a comprehensive analysis of the value-adding processes in an
enterprise.
8 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: General Tasks of Management Accounting
Analyze profit for each market segment
Profitability Analysis deals mainly with analyzing the effects of enterprise
activities on the external market. It enables you to determine how successful
the enterprise is in different market segments (product divisions, for
example) and how profitability has evolved over a particular period of time.
Analyze profit and loss of each profit center
Profit Center Accounting analyzes the profit and loss of each profit center
in the enterprise. Using multiple valuation approaches and transfer prices,
it can map the internal market in the enterprise.
2010 © 2010 SAP AG. All rights reserved. 9 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
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
10 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
Lesson: Overview of the Components in Management
Accounting
Lesson Overview
This lesson provides a brief introduction to the components of Management
Accounting and the elements used there, such as cost elements, cost centers,
and internal orders. The lesson shows you how Activity-Based Costing is used
in Management Accounting.
Lesson Objectives After completing this lesson, you will be able to:
• List the main components of Management Accounting and their purpose
• Match components with their function
Business Example
To manage an enterprise you require different tools for different situations. You
want to review the Management Accounting components to see which tool is
suited for a particular analysis. You find tools that allow you to do the following:
• Adjust the perspective and analyze profitability on the basis of products or
areas of responsibility
• Determine the cost-effectiveness of certain business processes
• Analyze overhead costs
Main Components of Management Accounting
Management Accounting components can be grouped together according to their
purpose:
Definition of cost elements and reconciliation with FI
In Cost Element Accounting you create the primary cost elements for FI
expense accounts. Only those expenses that are incurred directly through the
operation, can be valuated, and are based on a specific period, are treated as
costs. You also define secondary cost elements for allocations within CO.
The reconciliation ledger in Cost Element Accounting is used with the
classic G/L. It provides reporting functions that expose differences in costs
and revenues between Financial Accounting and Management Accounting.
It can also be used for reconciliation postings to Financial Accounting, if
necessary. If you work with the new G/L, the reconciliation ledger is surplus
to requirements.
2010 © 2010 SAP AG. All rights reserved. 11 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Allocation and analysis of overhead costs
Overhead Cost Controlling looks at where costs originate in the functional
areas of an enterprise. Overhead costs are regarded as costs that cannot
be directly attributed to a product, a service, or a market segment. These
costs are passed on within Overhead Cost Controlling so that they can be
allocated as precisely as possible at a later stage to the cost objects that drove
them, or at least to market segments in Profitability Analysis (CO-PA).
Activity allocation and activity-based costing (ABC) are methods that are
particularly well suited to allocating costs according to cause.
Calculating and monitoring the cost of goods and services
Product Cost Controlling is used for the preliminary costing of products
or provision of services. It performs a running calculation to monitor costs
during the activity output process, and final costing to analyze the end result
and variances. This component provides tools for a comprehensive analysis
of the value-adding processes in an enterprise.
Profit/loss analysis
Die Profitability Analysis focuses mainly on analyzing the profit and loss
generated by enterprise activities in external markets. It enables you to
determine how successful the enterprise is in different market segments (for
example, product divisions, customer groups, distribution channels) and how
profitability has evolved over time.
Profit Center Accounting analyzes the profit and loss of each profit center
in the enterprise. You can use Profit Center Accounting to map the internal
market within an enterprise, with multiple valuation approaches and transfer
prices, if required.
Figure 7: Overview of the Components in Management Accounting
12 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
Definition of Cost Elements and Reconciliation with FI
Cost Element Accounting is part of Overhead Cost Controlling. It provides a
structure for assigning Management Accounting data by classifying transaction
items that are posted to a corresponding controlling object (such as a cost center or
an internal order) depending on their cost or revenue element.
Figure 8: Cost Element Accounting
The cost flow in Management Accounting can make it necessary to reconcile
internal and external accounting. Cost Element Accounting is the Management
Accounting component that supports this reconciliation requirement. The
reconciliation ledger provides reporting functions for uncovering differences in
costs and revenues between Financial Accounting and Management Accounting.
If required, it can be used for reconciliation postings to Financial Accounting.
Allocation and Analysis of Overhead Costs
Overhead Cost Controlling comprises two components: Cost Center Accounting
and Activity-Based Costing. Each component deals with specific aspects of
analyzing and controlling overhead costs. Overhead costs are costs that cannot be
assigned directly to cost objects (for example, production orders).
2010 © 2010 SAP AG. All rights reserved. 13 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Figure 9: Overhead Cost Controlling and Activity-Based Costing
Activity-Based Costing offers you additional cost allocation options that you can
use for the overhead costs in Product Cost Controlling and Profitability and Sales
Accounting. You can also assign the activity directly from other systems and
use it as a cost object.
The proportion of overheads in total costs has risen sharply in recent years.
The number of workers employed in overhead cost areas has grown from 25%
to 30% in the 1950s to more than 50% today. Overheads have grown in both
manufacturing and service organizations. Research in the United States has
revealed that overhead costs account for approximately 80% of costs in the
mechanical engineering and electronics industries. As overheads grow, the
proportion of directly assignable production costs shrink. Consequently, it is
becoming increasingly important to analyze and control overhead costs. Similarly,
increasingly sophisticated tools are required to make it easier to apply overhead
costs to production orders and other cost objects.
You can use Cost Center Accounting to determine where costs are incurred in
your organization. These costs can include personnel costs, rental costs, or any
other costs that can be assigned to a cost center as close to cause as possible.
14 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
Figure 10: Cost Center Accounting
You specify the function of a cost center by assigning a cost center category (for
example, administration or production cost center). In the master record for each
cost center, there is a field for the name of the cost center manager.
Posting and assigning costs to cost centers not only helps you to analyze
overhead costs, it is also an important prerequisite for allocating costs to other
components of the ERP system in an holistic way, according to cause. There
are a number of approaches you can use to define and delimit cost centers:
Functional requirements, allocation criteria, services provided, geographical
location, and area of responsibility. The selected approach should, however, be
used consistently throughout the entire enterprise.
Cost centers are grouped together for structuring and reporting purposes. To do
this, you have to set up a standard hierarchy for each controlling area. The
standard hierarchy reflects the overall structure of all cost centers in the controlling
area, and provides cost totals at each node of the structure.
The HAC050 node is used throughout this course. You can find this node by
choosing H1 → H9500 → HAC050 .
2010 © 2010 SAP AG. All rights reserved. 15 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Figure 11: Internal Orders
An internal order is used to collect costs (and sometimes revenues) for individual
objects or measures. You can plan, monitor, and allocate these costs with internal
orders.
Internal orders can be split into four categories depending on the purpose:
• Overhead cost orders are used to monitor overhead costs that are incurred
for a particular purpose, such as holding a trade fair, or documenting costs
such as maintenance and repair work.
• Capital investment orders are used to monitor costs incurred for an asset
under construction, such as a building or warehouse.
• Accrual orders are offsetting entries of accrued costs (costs calculated in
Management Accounting) to cost centers.
• Orders with revenues are used as cost objects to enable you to track and
analyze the processes involved in creating goods or providing services.
16 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
Figure 12: Activity-Based Costing: Model
Traditionally, overhead costs are allocated from cost centers to cost objects using
methods such as predefined overhead rates and activity allocations.
Activity-Based Costing (ABC), however, assigns the costs to business processes
regardless of which organizational units caused the costs. A business process is a
cross-functional object that can use the resources of any cost center in a controlling
area through direct account assignments from FI.
Activity-Based Costing is an enhancement to the existing controlling functions.
Overhead costs are still assigned to cost centers. The cost centers that use the
resources required for the process allocate the resulting resource costs to the
process (for example, a purchasing cost center allocates the costs incurred in
preparing and distributing a request for a quotation to a procurement process).
The processes are then used by cost objects (such as sales orders) and the costs
allocated to those cost objects. Process costs that are not assigned to any cost
object are transferred to Profitability Analysis to enable a more precise and
complete settlement of the overhead costs.
Cost drivers can be used as a basis for allocating process quantities. In principle,
you can use any information that exists in the SAP system, or that you provide, as
a cost driver. Examples include the yield or scrap quantity of a production order,
the number of processed sales order items, the number of network operations for a
project, or information from the material or service master.
Cost Center Accounting answers the question of where costs are incurred, while
Activity-Based Costing answers the question of why (for what purpose) costs
were incurred.
2010 © 2010 SAP AG. All rights reserved. 17 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Calculating and Monitoring the Cost of Goods and
Services
Product Cost Controlling (CO-PC) deals with all aspects of costing the production
of goods and services, as well as tracking and analyzing the actual costs.
Figure 13: Product Cost Controlling
Product Cost Controlling comprises the following components:
• Product Cost Planning
• Cost Object Controlling
• Actual Costing and Material Ledger
Figure 14: Product Cost Controlling: Overview
Product Cost Planning is used to estimate the costs of producing goods or
providing services. If a quantity structure (bill of material and routing) is available
in production planning, execution, or maintenance, the system can automatically
18 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
create a cost estimate based on this data. If no quantity structure is available in the
SAP system, you can either enter the costing items manually with the unit costing
tool or transfer them automatically from an external system using batch input.
Figure 15: Product Cost Planning
Product Cost Planning can answer many common questions:
• What are the cost of goods manufactured and cost of goods sold for the
product?
• Is it possible to manufacture the product at this market price? What is the
price limit?
• Is it more cost-effective to produce in smaller or larger lot sizes?
• How are the costs apportioned? How high are the material costs compared to
labor costs?
• What is the effect on costs of improving the production process?
• Which parts of the organization contribute to the cost of the product?
• In which plant would production be most efficient?
• What is the impact of energy costs and machinery depreciation on my
product (primary costs)?
• Is external procurement less expensive than in-house production?
In Cost Object Controlling , the costs incurred during the manufacture of a
product or provision of a service are collected on a cost object. Various cost
objects are available, depending on your requirements. These include sales orders,
production orders, projects, networks, and customer service management orders.
2010 © 2010 SAP AG. All rights reserved. 19 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Figure 16: Cost Object Controlling
Cost Object Controlling includes three principal steps: Preliminary costing of the
cost object, simultaneous costing, and period-end closing including final costing.
• Preliminary costing determines the costs for a cost object, such as a sales
order, and updates these as plan values. You can already compare the planned
costs on the cost object with the results of a previous material cost estimate
at this point in time.
• Simultaneous costing valuates resource consumption and posts the costs to
the cost object. This applies to the consumption of material from stock, the
purchase of consumable material, as well as the use of services and processes.
• Period-end closing includes all the activities that are normally performed
with the cost object at the end of a period. These include the calculation
of overhead rates, the allocation of services and processes with the
template allocation technique, period-based accrual calculation using the
results analysis, and settlement of the cost object to Financial Accounting,
Profitability Analysis, and Profit Center Accounting.
• Actual costing uses the material ledger to calculate the actual cost of
goods manufactured for each material in the closed period. The difference
between this and the target costs that were assumed during the period can be
subsequently posted to Profitability Analysis or used to adjust the valuation
of warehouse stock.
20 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
Figure 17: Actual Costing
Actual costing can determine the difference between the actual costs for the
period and the standard costs for each stage of the manufacturing process and
roll up through the production structure. It thus provides an accurate way of
determining the actual costs of manufacturing products even with multi-level
production processes.
The material ledger is also the prerequisite for using transfer prices . For more
information about this topic, see the appendix.
Profit/Loss Analysis
Figure 18: Profitability and Sales Accounting
Management Accounting offers two tools for analyzing profit and loss.
You can use Profitability Analysis (CO-PA) to analyze the profitability of
segments in your external market. These segments can be defined by product,
customer, geographical area, or other characteristics, and by your internal
organizational units such as company codes or business areas. The aim of
2010 © 2010 SAP AG. All rights reserved. 21 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
profitability analysis is to provide management, sales and distribution, marketing,
planning, and other groups in your organization with market-oriented support in
decision making.
With Profit Center Accounting (EC-PCA) you can analyze internal profits and
losses for profit centers. This enables you to valuate different areas or units in
your enterprise. You can structure profit centers by region (branches, plants),
functions (production, sales), or products (product groups, divisions). Profit
Center Accounting is a component of Enterprise Controlling.
Figure 19: Aspects of Profitability and Sales Accounting
Profitability Analysis allows managers to analyze the profits and contribution
margins for the market segments of an enterprise.
22 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
Figure 20: Typical Questions in Profitability Analysis
Profitability Analysis supports sales, product management, and enterprise-wide
planning and decision making, using a market-oriented perspective. Market
segments are defined by such characteristics as product, product group, customer,
customer group, or geographical area or region.
Figure 21: Profitability Analysis per Market Segment
You can evaluate profit and loss for each characteristic and produce profitability
analyses using transfer prices and customer profitability analyses. As well as
the standard characteristics that are normally used in profitability analyses, you
2010 © 2010 SAP AG. All rights reserved. 23 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
can also define your own, and evaluate your profit and loss on the basis of these
characteristics too. Each unique combination of characteristic values (for example,
sale of product A to customer Y) represents a profitability segment.
Whilst account-based profitability analysis shows values based on cost elements,
you can define value fields in costing-based profitability analysis. You assign all
the values you post to the profitability analysis to these value fields. Furthermore,
you can calculate accrued costs and include these in analyses.
With this combination of characteristics, the profitability analysis represents
a multi-dimensional infocube that you can evaluate flexibly using the special
drilldown reporting tool.
Profit Center Accounting
Figure 22: Typical Questions in Profit Center Accounting
Aprofit center is a management-oriented organizational unit used for internal
controlling purposes. If you divide your enterprise into profit centers, you can
analyze the areas of responsibility and delegate responsibility to decentralized
units that then become enterprises within an enterprise. Profit Center Accounting
enables you to set up your profit centers according to products (product lines,
divisions), geographical factors (regions, offices, or production sites), or functions
(production, sales and distribution).
24 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
Figure 23: Profit Center Analysis
Profit Center Accounting enables you to draw conclusions about internal aspects
of profitability. This internal view of profitability measures how successful a
particular profit center was in achieving the profitability target for the area of
responsibility.
The Information System is used for analyzing plan and actual data. You can use
a number of standard reports, as well as creating your own reports. Reports can
be executed for profit centers or profit center groups. Profit Center Accounting
can report on selected balance sheet items, such as assets, accounts payable and
receivable, material inventory, and work in process. This allows certain financial
key figures such as return on investment (ROI) to be calculated. Other reporting
functions include the provision of detailed information about the source objects
(for example, cost centers or internal orders) that contributed to the costs posted
to profit centers.
2010 © 2010 SAP AG. All rights reserved. 25 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Figure 24: Profitability and Sales Accounting: Methods
There are two methods for representing profit and loss: Cost-of-sales accounting
and period accounting. Both methods deliver the same results if they are applied
to the same business transactions and are based on the same accounting standards.
When creating financial statements, many countries now make the use of a
particular method a legal requirement, depending on the accounting principle that
was applied. It may be useful to use both analyses in your internal controlling,
however.
The main focus of cost-of-sales accounting lies in comparing revenues from
goods and/or services that were delivered or provided with the costs/expenses for
those items. This method provides profit and loss information that is particularly
useful with different types of contribution margin analysis. It is therefore
recommended for marketing and product management.
Period accounting determines the revenue realized for the period and the various
costs and expenses (such as personnel costs and depreciation). It also includes
the changes in the inventory value, work in process, and assets that have occurred
during the period. This method is useful for estimating the profitability of profit
centers.
26 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
Exercise 1: Management Accounting
Components
Exercise Objectives
After completing this exercise, you will be able to:
• Describe the purpose of each Management Accounting component
Business Example
You want to use the appropriate Management Accounting component to provide
data for different purposes and different users.
Task:
Answer the following questions about Management Accounting components:
1. Which component or components could be used to manage overhead costs?
Choose the correct answer(s).
□ A A - Overhead Cost Controlling
□ B B - Product Cost Controlling
□ C C - Profit Center Accounting
□ D D - Activity-Based Costing
2.
provides the structure for assigning Management Accounting data by
classifying transaction line items according to the type of cost or
revenue that was posted.
Fill in the blanks to complete the sentence.
3.
is used to determine where
costs are incurred in your organization.
Fill in the blanks to complete the sentence.
4. describes the costs
for single tasks or current activities within a controlling area. Internal orders
are used to show the costs for individual measures (such as holding a trade
fair or an advertising campaign) or individual objects (such as the costs of an administrative building or a vehicle).
Fill in the blanks to complete the sentence.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 27 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
5. Company managers use for
a process-oriented view of financial data. It provides a clear and precise view
of the activities provided in your organization and the related costs.
Fill in the blanks to complete the sentence.
6. deals with estimating the costs
of producing goods or providing services.
Fill in the blanks to complete the sentence.
7. focuses on monitoring the
actual production costs and performing period-end closing activities that
relate to production.
Fill in the blanks to complete the sentence.
8. with the material ledger provides the actual
costs for each material at the end of the period.
Fill in the blanks to complete the sentence.
9. enables you to analyze profits
and contribution margins for market segments of your company. Its external
market-oriented view supports sales and distribution, product management,
as well as enterprise-wide planning and decision making.
Fill in the blanks to complete the sentence.
10. enables you to calculate
internal profitability measurements. It compares the revenue for each profit
center with the planned profitability targets for the enterprise. Fill in the blanks to complete the sentence.
28 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
Solution 1: Management Accounting
Components
Task:
Answer the following questions about Management Accounting components:
1. Which component or components could be used to manage overhead costs?
Answer: A, D
Overhead Cost Controlling is used to control overhead costs. Activity-Based
Costing is part of Overhead Cost Controlling.
2. C ostandRevenueElementAccountingprovides the structure for assigning
Management Accounting data by classifying transaction line items according
to the type of cost or revenue that was posted. Answer: Cost and Revenue Element Accounting
3. C
ostCenterAccountingis used to determine where costs are incurred in
your organization. Answer: Cost Center Accounting
4. O
verheadCostControllingdescribes the costs for single tasks or current
activities within a controlling area. Internal orders are used to show the
costs for individual measures (such as holding a trade fair or an advertising
campaign) or individual objects (such as the costs of an administrative
building or a vehicle).
Answer: Overhead Cost Controlling
5. Company managers use A ctivity-BasedCostingfor a process-oriented
view of financial data. It provides a clear and precise view of the activities
provided in your organization and the related costs. Answer: Activity-Based Costing
6. P
roductCostPlanningdeals with estimating the costs of producing goods
or providing services. Answer: Product Cost Planning
7. C
ostObjectAccountingfocuses on monitoring the actual production costs
and performing period-end closing activities that relate to production.
Answer: Cost Object Accounting
8. A ctualCostingwith the material ledger provides the actual costs for each
material at the end of the period.
Answer: Actual Costing
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 29 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
9. P rofitabilityAnalysisenables you to analyze profits and contribution
margins for market segments of your company. Its external market-oriented
view supports sales and distribution, product management, as well as
enterprise-wide planning and decision making.
Answer: Profitability Analysis
10. P rofitCenterAccountingenables you to calculate internal profitability
measurements. It compares the revenue for each profit center with the planned profitability targets for the enterprise.
Answer: Profit Center Accounting
30 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Overview of the Components in Management Accounting
Lesson Summary
You should now be able to:
• List the main components of Management Accounting and their purpose
• Match components with their function
2010 © 2010 SAP AG. All rights reserved. 31 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
Lesson: Integration Within Management Accounting and
with Other SAP Applications
Lesson Overview
This lesson uses cost allocations to show the interplay between Management
Accounting components and describes how Management Accounting interacts
with other SAP applications in SAP ERP, such as Purchasing, Logistics Execution,
Production, Sales and Distribution, and Customer Service. You will see that the
strength of Management Accounting lies in its integrated view of all the relevant
data from objects such as sales orders that bear revenues or costs.
Lesson Objectives
After completing this lesson, you will 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
Business Example
Before you can implement Management Accounting successfully, you need to
understand the flow of costs that have a direct impact on Management Accounting.
Value Flow in Management Accounting
Costs incurred in one part of the enterprise are often passed on to a different part of
the enterprise. For example, you can pass on overhead costs from administrative
cost centers to production cost centers. The overhead costs are then passed on to
production processes. These direct services and processes, together with the direct
material consumption, are assigned to specific orders for specific products and
services that are then made available to the customer.
Because other SAP applications generate data that has a direct impact on
Management Accounting, there must be a mechanism in place for passing this data
on to Management Accounting. This mechanism is Cost and Revenue Element
Accounting.
If, for example, you purchase non-stock material, an expense is posted to the
Financial Accounting general ledger via the G/L account. At the same time, the
expense is posted as costs to the corresponding cost center using a primary cost
element. The costs from this cost center can, at a later stage, be passed on to a
32 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integration Within Management Accounting and with Other SAP Applications
production cost center as overhead costs using a secondary cost element. As long
as this does not involve allocating costs between two posting characteristics in FI,
you do not need to show this secondary cost flow in Financial Accounting.
The value flow between Management Accounting components is fully integrated.
In the Overhead Cost Controlling area, costs can be posted from other SAP ERP
applications to cost centers, internal orders, and processes (external costs). Cost
centers can then allocate costs to other cost centers, orders, and processes in
Activity-Based Costing. Activity-Based Costing can, in turn, pass costs to cost
centers and orders. Internal orders can settle costs to cost centers and processes
in Activity-Based Costing (as well as to other orders). The aim is to allocate
the overhead costs of service cost centers and overhead orders to the main cost
centers. These then pass on the balances to Cost Object Controlling or Profitability
Analysis.
Figure 25: Value Flow in Management Accounting
Cost objects (such as sales orders and networks) collect costs that can be directly
assigned to the processes involved in manufacturing goods and providing services
(direct costs). These are entered directly from Financial Accounting (entering an
invoice receipt for a cost object) or other modules. In addition, overhead costs for
cost centers are allocated to the cost objects as close to cause as possible.
Profitability Analysis collects the costs and revenues from Cost Object Controlling
and Overhead Cost Controlling. The aim here is to divide the market into segments
and show the profit and loss for these market segments in a way that provides
management with both a market analysis and sales controlling. By contrast,
Profit Center Accounting shows profit and loss divided into the subdivisions of
2010 © 2010 SAP AG. All rights reserved. 33 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
the enterprise responsible for profit, namely the profit centers. All costs and
revenues for the controlling objects are automatically collected in parallel for
the profit centers.
Flow of Values to and from Other SAP Applications
Data created in other SAP applications can have a direct influence on Management
Accounting. If, for example, consumable materials are taken from stock and
consumed by a cost center, an inventory accounting document is generated
and posted in Financial Accounting as an expense and removal from stock, in
accordance with the activity. This expense is also assigned to the cost center as a
cost. The cost center's costs can be passed on to a production cost center later as
overhead costs, or allocated to other objects in Management Accounting.
Figure 26: Integration with Other SAP Applications
Financial Accounting in SAP ERP is an important source of data for Management
Accounting. Most of the postings to expense accounts in the general ledger are
posted as costs in Management Accounting. These postings to expense accounts
can be journal entries, vendor invoices, or depreciation postings from Asset
Accounting or other SAP system components.
Revenue postings can be made to suitable objects in Management Accounting
too, such as profitability segments in Profitability Analysis (CO-PA), profit
centers, and cost objects. When posting both expense and revenue from Financial
Accounting you must specify at least one Management Accounting object as the
recipient of the cost or revenue data.
34 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integration Within Management Accounting and with Other SAP Applications
There are a number of situations will cause Management Accounting to create
postings in Financial Accounting. These situations include reconciliation
postings that are either triggered immediately or by the reconciliation ledger in
Management Accounting, inventory postings caused by the delivery of finished
goods from production to the warehouse, and settlement of assets through the
creation of fixed assets.
SAP ERP Human Capital Management (HCM) can generate different types of cost
postings to Management Accounting. SAP ERP HCM allows you to allocate labor
costs to various controlling objects. You can also transfer the planned personnel
costs to Management Accounting.
The Logistics area also has numerous integration points with Management
Accounting. In Materials Management, a goods issue can generate a cost posting
to a specific object in Management Accounting (such as a cost center, production
order, network, or internal order). Looking from the other direction, Management
Accounting can cause an inventory posting (in Materials Management) resulting
from the delivery of finished goods from production. Furthermore, product
costings created in Management Accounting can update price fields in the material
master record. Finally, purchase orders in Materials Management can generate
commitment postings in Management Accounting.
The Production area of Logistics also works very closely with Management
Accounting. BOMs and routings created in Production can be used in Product Cost
Controlling in Management Accounting. In addition, production orders are cost
objects used to analyze and control production costs in Cost Object Controlling.
Sales Order Management can post revenue from billing documents to Management
Accounting. You can also use a sales order in Sales Order Management as a cost
object to map make-to-order production scenarios. In this case, the costs and
revenues are posted directly to the sales order, where they can be analyzed and the
profit/loss determined. The sales order is later settled to Management Accounting
(usually to Profitability Analysis).
2010 © 2010 SAP AG. All rights reserved. 35 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 1: Overview of Management Accounting AC050
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
36 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Unit Summary
Unit 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
• List the main components of Management Accounting and their purpose
• Match components with their function
• Explain the most important integration points between Management
Accounting components
• Explain the major integration points between Management Accounting and
other SAP applications
2010 © 2010 SAP AG. All rights reserved. 37 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit Summary AC050
38 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Librería ERP https://libreriaerp.com/us [email protected] Librería ERP https://libreriaerp.com/us [email protected]

Unit2
Organizational Units Used in
Accounting
Unit Overview
This unit explains the organizational units and structures used in Management
Accounting. It also covers the basic data used for Overhead Cost Controlling.
This information is important when setting up Management Accounting for your
company.
Unit Objectives
After completing this unit, you will be able to:
• Identify the basic organizational units that are relevant to Management
Accounting
• Explain the relationships between organizational units in Management
Accounting and other organizational units in the SAP system
• List the master data used in Cost Element Accounting and explain its purpose
• List the master data used in Overhead Cost Controlling and explain its
purpose
• List ways in which master data groups can be used
Unit Contents
Lesson: Organizational Units Used in Accounting .......................... 40
Exercise 2: Organizational Units and Structures........................ 45
Lesson: Basic Data for Overhead Cost Controlling ......................... 48
Exercise 3: Basic Data and Structures ................................... 59
2010 © 2010 SAP AG. All rights reserved. 39 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Lesson: Organizational Units Used in Accounting
Lesson Overview
This lesson presents the various SAP organizational units that are used in
accounting, such as client, company code, and controlling area, and describes their
relationship to one another. Knowledge of these organizational units is important
for working with SAP ERP and for creating and maintaining master data. The
lesson takes a closer look at the organizational units used in Management
Accounting.
Lesson Objectives
After completing this lesson, you will be able to:
• Identify the basic organizational units that are relevant to Management
Accounting
• Explain the relationships between organizational units in Management
Accounting and other organizational units in the SAP system
Business Example
Each company has its own particular organizational structure. You want to learn
about the organizational units used in SAP systems so you can decide which ones
to use to map your enterprise structure in the system.
Organizational Units in SAP Solutions
The following organizational units are used in SAP solutions:
• Operating concern
• Controlling area
• Company code
• Business area
• Plant
• Purchasing organization
• Sales organization
40 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Organizational Units Used in Accounting
Figure 27: Organizational Units
The controlling area is the basic organizational unit in Management Accounting.
A controlling area is a closed entity used for cost accounting. You can allocate
costs only within a controlling area. These allocations cannot affect objects
in other controlling areas. You can assign more than one company code to a
controlling area. This enables controlling across company codes.
Hint: The controlling area and the company codes assigned to it must
use the same operative chart of accounts and fiscal year variant (the only
possible variable is the number of special periods).
Profitability Analysis (CO-PA) is used within the operating concern . The
operating concern maps the structure of external market segments for the enterprise. You can assign several controlling areas to each operating concern so that you can analyze them together.
The company code is an independent accounting unit. Financial and profit and
loss (P&L) statements are prepared at company code level to meet legal reporting
requirements. Business areas can be used to group strategic business fields and
for reporting in P&L and financial statements. Business areas can also extend across company codes.
Note: You cannot draw up account settlements suitable for auditing at
business area level. Business areas are used in Financial Accounting mainly for reporting and assigning authorizations.
2010 © 2010 SAP AG. All rights reserved. 41 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
The plant represents a production unit and is the central organizational unit in
Materials Management and Production Planning. When you define organizational
structures, you assign plants to company codes.
The purchasing organization is an organizational unit used in Materials
Management – Purchasing; the sales organization is an organizational unit used
in Sales Order Management. Both of these organizational units are important
for Management Accounting only because this data needs to be included in the
integrated business processes between Logistics and Accounting.
Figure 28: Multiple Assignment
By assigning more than one company code to a controlling area, you can perform
cost accounting across company codes. You can make allocations in Management
Accounting that affect more than one company code.
In cross-company code cost accounting, the controlling area and the company
codes can be managed in different currencies. The currency of the controlling area
can be the same as that for a company code. It can also differ from the currency of
all the company codes assigned to the controlling area.
You can use three currencies in Management Accounting:
• Controlling area currency
• Company code currency or object currency
• Transaction currency (used for posting a document to Management
Accounting)
42 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Organizational Units Used in Accounting
By default, cross-company code cost accounting displays the company code
currency as the object currency. You cannot change this default value. If you have
only assigned one company code to the controlling area, the object currency can
be assigned for each controlling object (such as a cost center) as required.
You can assign more than one company code to a single controlling area. All
companies in the controlling area must then use the same operating accounts.
However, these accounts can be linked to country-specific accounts using the
alternative account number that is stored in the master record for accounts.
In Accounting, each level of the organizational structure normally represents the
highest reporting level of the component in question.
2010 © 2010 SAP AG. All rights reserved. 43 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
44 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Organizational Units Used in Accounting
Exercise 2: Organizational Units and
Structures
Exercise Objectives
After completing this exercise, you will be able to:
• Identify the basic organizational structures used in Management Accounting
and explain the relationships between them
Business Example
Each company has its own particular organizational structure that must be mapped
in the system. You want to define the structure of your company using the
organizational units available in SAP ERP.
Task:
Consider what organizational units to use to map your company in the system.
1. Think about how your company could best be mapped in the system with the
organizational units discussed in this lesson. Map the structure.
2010 © 2010 SAP AG. All rights reserved. 45 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Solution 2: Organizational Units and
Structures
Task:
Consider what organizational units to use to map your company in the system.
1. Think about how your company could best be mapped in the system with the
organizational units discussed in this lesson. Map the structure.
Answer: Responses will vary.
46 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Organizational Units Used in Accounting
Lesson Summary
You should now be able to:
• Identify the basic organizational units that are relevant to Management
Accounting
• Explain the relationships between organizational units in Management
Accounting and other organizational units in the SAP system
2010 © 2010 SAP AG. All rights reserved. 47 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Lesson: Basic Data for Overhead Cost Controlling
Lesson Overview
This lesson describes the master data required for Management Accounting. You
will learn the importance of the standard hierarchy for cost centers. The lesson
also explains how to create cost elements, activity types, statistical key figures,
internal orders, and master data groups. With this information, you can create
master data for your enterprise in the system.
Lesson Objectives
After completing this lesson, you will be able to:
• List the master data used in Cost Element Accounting and explain its purpose
• List the master data used in Overhead Cost Controlling and explain its
purpose
• List ways in which master data groups can be used
Business Example
You want to see how to create the master data that is relevant for Management
Accounting in the system. To analyze the responsibility for costs, you subdivide
your enterprise into various departments or business areas and map these in the
system with corresponding master data such as cost centers, orders, and profit
centers. You then assign the cost incurred in the system to this master data
according to cause.
Master Data Used in Cost Element Accounting
Cost Element Accounting uses the following master data:
• Chart of accounts
• Primary cost elements
• Secondary cost elements
• Revenue elements
• Cost element category
48 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
The chart of accounts shown in the figure is based on process classification. All
expense accounts are assigned to class 4, and all revenue accounts to class 8. This
chart of accounts is used in the SAP training systems and in IDES, and is the
standard chart in every SAP system.
Hint: If you run several systems in parallel, you may be looking for ways
of keeping the master data in Financials consistent across all the systems.
As of Enhancement Package 4, you can now use the new SAP Master
Data Governance for Financials Business Suite for this purpose. For
further information, see the last lesson in the final unit of this handbook.
Figure 29: Accounts and Cost Elements
Expense accounts to which costs are posted for cost accounting purposes must
be created as cost elements in Management Accounting. This ensures that all
postings to this type of expense account always arrive in Management Accounting
at the same time.
To set up an expense account and create it as a cost or revenue element, follow
these steps:
1. Define an expense account or revenue account in Financial Accounting.
2. You can create this account automatically or manually in Management
Accounting as a cost element or revenue element.
2010 © 2010 SAP AG. All rights reserved. 49 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Figure 30: Cost and Revenue Elements
Expenses in Financial Accounting that are relevant to cost accounting are entered
in Management Accounting using primary cost elements . The primary cost
elements must exist as general ledger expense accounts in Financial Accounting
before they can be created automatically or manually in Management Accounting.
If a posting is made to an expense account in Financial Accounting for which
a primary cost element was created, you must enter an account assignment
object (such as a cost center, internal order, or cost object) from Management
Accounting. This ensures that when you post costs in Financial Accounting, they
are posted at the same time in Management Accounting.
Secondary cost elements are defined only in cost allocation and used only for
certain internal allocations, such as assessments or settlements. Secondary cost
elements have no corresponding G/L accounts in Financial Accounting.
Revenue elements can be used to record revenues from Financial Accounting in
Management Accounting, in a similar way to primary cost elements. Again, the
revenue account must already exist in Financial Accounting. Revenues can only
be recorded statistically in Cost Center Accounting.
Each cost element is assigned a cost element category in its master record. This
determines the type of transaction for which a cost element can be used. The
following are examples of cost element categories:
• Cost element category 1 (primary cost element) is used for posting primary
costs in Management Accounting.
• Secondary cost element category 42 is used for the internal allocation of
costs in Management Accounting.
• Cost element category 21 is used for order settlement in Management
Accounting.
50 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
Master Data in Overhead Cost Controlling
Cost Element Accounting uses the following master data:
• Cost centers
• Activity types
• Statistical key figures or tracing factors
• Internal orders
• Business processes
Figure 31: Master Data in Overhead Cost Controlling
Acost center master record is identified by its name, the controlling area to
which the cost center is assigned, and the validity period.
2010 © 2010 SAP AG. All rights reserved. 51 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Figure 32: Cost Center Master Data
The Basic Data area contains fields for the name and description of the cost center,
the name of the person responsible or cost center manager, the department to
which the cost center is assigned, and the profit center.
The Cost Center Hierarchy field displays the standard hierarchy node to which
the cost center is assigned. This field must be filled so it can be used as a control
feature in Cost Center Accounting. Each controlling area must have a unique
standard hierarchy that includes every cost center created in that controlling area.
The Cost Center Category field describes the purpose of the cost center, such as
consulting, service, sales, or administration.
The Company Code and Business Area fields indicate the close ties between
Management Accounting and Financial Accounting. If a controlling area has
more than one company code, you must specify the particular company code that
is linked to each cost center. If business areas are used for that company code
(as defined in Financial Accounting), a business area must also be specified in
the cost center master record.
52 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
Figure 33: Activity Type Master Data
An activity type is identified by its name, the controlling area to which the activity
type is assigned, and the validity period.
The Basic Data area includes fields for the name and description of the activity
type. In the Activity Unit field, you specify how the activity type is to be measured
(for example, in hours, days, or seconds). In the Cost Center Categories field, you
specify the cost center category this activity type provides.
The Allocation default values area is used to determine how the activity type can
be used in activity allocation. The Activity Type Category field specifies how
the activity type can be allocated (for example, directly by manual allocation or
indirectly by a sender-receiver relationship in an allocation cycle). The Price
Indicator field specifies how the price is calculated. You can enter the price
manually or calculate it based on the plan and actual costs.
2010 © 2010 SAP AG. All rights reserved. 53 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Figure 34: Statistical Key Figures
Statistical key figures are measurable values that can be applied to cost centers,
profit centers, internal orders, or processes. An example of a statistical key figure
would be the number of employees in the Car Pool cost center who perform
activities such as vehicle maintenance.
You can use statistical key figures as an allocation base (or tracing factor ) for
periodic allocations such as distribution or assessment, and for analysis purposes
(such as calculating the rent costs per employee).
You can define a statistical key figure as a fixed value or a totals value:
• Fixed values are carried over from the periods in which they are posted
to all subsequent periods of the same fiscal year. Fixed values are useful
for statistical key figures that tend to remain relatively constant over time,
such as the number of employees. You only need to update the data when
the value changes.
• Totals values are not transferred to subsequent periods and must be entered
individually for each period. Totals values are recommended for statistical
key figures whose values tend to change from period to period, such as
kilowatt hours of electricity used.
You can also transfer statistical key figures values from the Logistics Information
System (LIS) by linking a key figure in LIS to a key figure in Cost Center
Accounting.
54 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
Figure 35: Internal Order Master Data
The internal order master record consists of different sections that are
represented by a tab page with predefined field groups. You can change the tab
page header in Customizing and assign individual fields to the tab pages.
The Order Type field is the most important field in the internal order master record.
The order type allows you to specify default values for the different master data
fields and define certain order characteristics, such as the settings for settlement,
planning, and budgeting, depending on the purpose of the order.
You can use internal orders for planning, collecting, monitoring, and settling the
costs of certain operations and tasks in an enterprise. With the SAP system, you
can control your internal orders throughout the whole life cycle (from creation
through planning and posting of actual costs to settlement).
Internal orders can be used for different purposes. This functional classification is
represented in the different order types that are used to determine how the orders
are processed in the system. The general categories of internal orders contain
overhead cost orders, investment orders, accrual orders, and orders with revenues.
Master Data Groups
Master data groups enable you to group different master data from Overhead
Cost Controlling for analysis, reporting, planning, and allocation. These master
data groups are used for processing more than one master data record in a single
transaction.
Example: For a cost planning transaction that you use only once, you could enter
the planning data for all the cost elements used by your cost center by creating
a corresponding cost element group and entering it on the planning screen.
2010 © 2010 SAP AG. All rights reserved. 55 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Similarly, you can produce a report that summarizes the results for all the cost
centers you manage by having creating the cost center group, and then specifying
it in your report definition.
Figure 36: Master Data Groups
When you use master data groups in reporting, each hierarchy level can produce
automatic totals for the levels beneath it. The master data itself is assigned to the
lowest level nodes in the structure. The SAP system checks that a value (cost
center, cost element, activity type, and so on) is represented only once in a group.
You can create as many different groups as you like. Each master record can be
used in several groups.
The standard hierarchy for the cost center is a special type of cost center group.
Each controlling area must have a unique standard hierarchy. All cost centers in
this controlling area must be assigned to a node in the standard hierarchy.
You can only use the name of a master data group once in a client. If, for example,
you create a cost center group called tools management , you cannot use this
name for another group.
Menu Paths for Creating Master Data
Action Menu path
Create secondary cost element Accounting → Controlling → Cost Center
Accounting → Master Data → Cost
Element → Individual Processing → Create
Secondary
Create cost center Accounting → Controlling → Cost Center
Accounting → Master Data → Cost Center → Individual Processing → Create
Create cost center group Accounting → Controlling → Cost Center
Accounting → Master Data → Cost Center Group → Create
56 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
Action Menu path
Create activity type Accounting → Controlling → Cost Center
Accounting → Master Data → Activity Type
→ Individual Processing → Create
Display activity type Accounting → Controlling → Cost Center
Accounting → Master Data → Activity Type
→ Individual Processing → Display
Create statistical key figure Accounting → Controlling → Cost Center
Accounting → Master Data → Statistical Key
Figures → Individual Processing → Create
Start order manager Accounting → Controlling → Internal
Orders → Master Data → Order Manager
2010 © 2010 SAP AG. All rights reserved. 57 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
58 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
Exercise 3: Basic Data and Structures
Exercise Objectives
After completing this exercise, you will be able to:
• Create master data for Management Accounting
• Use master data groups
Business Example
Depending on your business requirements, you use different application
components to provide particular data. In these components, you use master data
to which you can assign, allocate, and plan revenues and costs. In this lesson, you
will create several master data records in Overhead Cost Controlling to manage
your overhead costs.
To show the areas responsible for costs, you split your company into different cost
responsibility areas represented by cost centers. If you use profit centers too, that
is, areas responsible for operating profit, you need to assign the cost centers to the
corresponding profit centers.
You can use activity types to determine a quantifiable output of a cost center. Only
cost centers can produce an activity type. In activity planning, you assign the
activity types to the corresponding cost centers. The activity type master records
can only be used to post actual costs after you have made this assignment.
To facilitate analysis, you would like to provide additional information other
than costs and revenues. To do this, you use statistical key figures. Statistical
key figures are measurable quantities that are planned on cost centers or internal
orders or that can be posted as actual data.
In addition to managing costs by organizational units (cost centers), you also
want to manage costs for internal tasks that are undertaken within your company.
You create overhead orders to collect these costs. As with cost centers, you need
to assign your order to the corresponding profit center if you use profit centers.
At the end of the accounting period, the order costs will be allocated to the
responsible cost center.
Hint: The first time you call a Management Accounting function after
logging on to the system, the Set Controlling Area dialog box appears.
When this dialog box appears, enter 1000 in the Controlling Area field.
2010 © 2010 SAP AG. All rights reserved. 59 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Task 1:
Create a secondary cost element
1. Create secondary cost element 6263## in controlling area 1000 (CO Europe).
Make sure that the cost element is valid for the entire fiscal year. Name the
cost element Training-## , enter a suitable description, and assign the cost
element category 43 to it. Save the new cost element.
2. Explain how you can use a category 43 cost element.
Task 2: Create two cost centers, one for the training course and one for consulting.
Hint: You can create a second cost center with reference to the first.
1. Create a training cost center in the controlling area CO Europe 1000 and the
company code of the German subsidiary ( 1000 ). Make sure that the cost
center is valid for the entire fiscal year and that it is assigned to the HAC050
node in the standard hierarchy. Assign cost center EDUC-## (to be named Group ## Education ) to the main
cost center category C, the External Service (8000) business area, and the
Training (1610) profit center. Make sure that the cost center is only locked
against planning and posting revenues. Save the cost center master data.
2. Create a consulting cost center in the controlling area CO Europe 1000 and
the company code of the German subsidiary ( 1000 ). Make sure that the cost
center is valid for the entire fiscal year and that it is assigned to the HAC050
node in the standard hierarchy.
Hint: You can copy this general information by creating a second
cost center with reference to the first.
Assign cost center CONS-## (to be named Group ## Consulting ) to the
main cost center category C, the External Service (8000) business area, and
the External Service (1600) profit center. Make sure that the cost center is
only locked against planning and posting revenues. Save the cost center
master data.
Continued on next page
60 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
3. Create a service cost center in the controlling area CO Europe 1000 and the
company code of the German subsidiary ( 1000 ). Make sure that the cost
center is valid for the entire fiscal year and that it is assigned to the HAC050
node in the standard hierarchy.
Hint: You can copy this general information by creating a third cost
center with reference to the first.
Assign cost center IT-## (to be named Group ## IT and Computing
Center ) to service cost center category H, the Corporate Other (9900)
business area, and the Internal Service (1400) profit center. Make sure that
the cost center is only locked against planning and posting revenues. Save
the cost center master data.
Task 3:
Create a cost center group.
1. To be able to address your new cost centers at the same time, create a cost
center group that contains your cost centers. Name the cost center group
CENTERS-## and describe it as Group ## Cost Centers . Assign the
service cost center IT-## and the administration cost centers CONS-## and
EDUC-## to this group.
Hint: Your new cost center group is not a part of the standard
hierarchy. Do not assign your cost center group to the standard hierarchy.
Task 4:
Create activity types to describe and measure the activities, and thus the
quantifiable output of the cost centers.
1. Display activity type 1421 in the system and check the master data.
2. Create activity type JCON## by copying activity type 1421 . Make sure that
the activity type is valid up to the last day of the current year.
Enter Junior Consulting ## as the name and description of consulting
services provided by junior consultants. Use activity type category 1 for
manual entry and allocation, and DAA Junior Consultant (626100) as the
allocation cost element.
3. Create activity type SCON## by making a copy of activity type JCON## .
Make sure that the activity type is valid for the entire year.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 61 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Enter Senior Consulting ## as the name and description of consulting
services provided by senior consultants. Use activity type category 1 for
manual entry and allocation, and DAA Senior Consultant (626200) as the
allocation cost element.
4. Create activity type TRAI## by making a copy of activity type JCON## .
Make sure that the activity type is valid for the entire year. This activity type
is used for the time spend holding various types of training courses, hence
the name and description Training ## . Activity type category 1 involves
manual entry with manual allocation, and the allocation cost element is your
new cost element Training ## (6263##) .
Task 5:
Create a statistical key figure.
1. Create the statistical key figure EMPL## (number of employees) with a
fixed value to record the number of employees in your cost centers. Use the
unit of measure for “number of persons” ( PER).
Note: Use Fixed Value as the key figure category. This is the default
setting.
Task 6: Create an overhead cost order to which you can allocate costs in each accounting
period.
Note: For more detailed controlling, you want to record the costs incurred
by your company when participating in a trade fair not only on a cost
center, but also separately.
1. Use the Order Manager to create an overhead cost order. Use the order type
Internal Order – Marketing (0400) . Name the order Trade Fair Group ##
and assign it to the Corporate Other (9900) business area and the Internal
Service (1400) profit center. Enter your cost center IT-## as the cost center
responsible for this.
Note: Do not save your order yet.
Continued on next page
62 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
2. Create a periodic settlement rule to allocate 100% of the actual costs to your
service cost center IT-## . Save the order. Make a note of the trade fair order
number on your data sheet.
Hint: Your order number appears on the left side of the screen. All
the orders you processed will be listed here with some important
information. To see more of this information, use the mouse to
widen the panel.
You can change which information is displayed here by selecting a
different layout. You can also create your own layouts.
You can jump directly to any order by clicking the order number.
You can sort and filter the list of orders, and switch to collective
processing mode.
2010 © 2010 SAP AG. All rights reserved. 63 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Solution 3: Basic Data and Structures
Task 1:
Create a secondary cost element
1. Create secondary cost element 6263## in controlling area 1000 (CO Europe).
Make sure that the cost element is valid for the entire fiscal year. Name the
cost element Training-## , enter a suitable description, and assign the cost
element category 43 to it. Save the new cost element.
a) Choose Accounting → Controlling → Cost Center Accounting →
Master Data → Cost Element → Individual Processing → Create
Secondary .
b) Enter the following data:
Field Value or Action
Cost Element 6263##
Valid From First day of the current fiscal year
To Last day of the current fiscal year
c) Choose Master Data and enter the following data on the next screen:
Field Value or Action
Name & Description Training-##
Cost Element Category 43
d) Choose Save .
2. Explain how you can use a category 43 cost element.
Answer: By defining the cost element as cost element category 43, you have
determined that it will be used for internal activity allocations or process
allocations. Internal activity allocations result in a flow of costs from a
cost center to other controlling objects (cost centers, overhead orders, sales orders, networks, and so on) based on the number of activity units provided
by the sender to the receiver. The allocated costs are posted using this cost element category.
Continued on next page
64 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
Task 2:
Create two cost centers, one for the training course and one for consulting.
Hint: You can create a second cost center with reference to the first.
1. Create a training cost center in the controlling area CO Europe 1000 and the
company code of the German subsidiary ( 1000 ). Make sure that the cost
center is valid for the entire fiscal year and that it is assigned to the HAC050
node in the standard hierarchy. Assign cost center EDUC-## (to be named Group ## Education ) to the main
cost center category C, the External Service (8000) business area, and the
Training (1610) profit center. Make sure that the cost center is only locked
against planning and posting revenues. Save the cost center master data.
a) Choose Accounting → Controlling → Cost Center Accounting →
Master Data → Cost Center → Individual Processing → Create .
b) Enter the following data:
Field Value or Action
Cost Center EDUC-##
Valid From First day of the current fiscal year
To Last day of the current fiscal year
c) Choose Master Data and enter the following data on the next screen:
Field Value or Action
Name and Description Group ## Education
Person Responsible Your name
Cost Center Category C
Hierarchy Area HAC050
Company Code 1000
Business Area 8000
Profit Center 1610
d) Select the Control tab page. Under Lock , ensure that only Actual
Revenues and Plan Revenues are selected.
e) Choose Save .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 65 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
2. Create a consulting cost center in the controlling area CO Europe 1000 and
the company code of the German subsidiary ( 1000 ). Make sure that the cost
center is valid for the entire fiscal year and that it is assigned to the HAC050
node in the standard hierarchy.
Hint: You can copy this general information by creating a second
cost center with reference to the first.
Assign cost center CONS-## (to be named Group ## Consulting ) to the
main cost center category C, the External Service (8000) business area, and
the External Service (1600) profit center. Make sure that the cost center is
only locked against planning and posting revenues. Save the cost center
master data.
a) Choose Accounting → Controlling → Cost Center Accounting →
Master Data → Cost Center → Individual Processing → Create .
b) In the Cost Center field, enter CONS-## , check the from/to validity
(current fiscal year), and enter EDUC-## as the reference cost center.
c) Choose Master Data and enter the following data:
Field Value or Action
Name and Description Group ## Consulting
Person Responsible Your name
Cost Center Category C
Hierarchy Area HAC050
Company Code 1000
Business Area 8000
Profit Center 1600
d) Select the Control tab page. Under Lock , ensure that only Actual
Revenues and Plan Revenues are selected.
e) Choose Save .
3. Create a service cost center in the controlling area CO Europe 1000 and the
company code of the German subsidiary ( 1000 ). Make sure that the cost
center is valid for the entire fiscal year and that it is assigned to the HAC050
node in the standard hierarchy.
Hint: You can copy this general information by creating a third cost
center with reference to the first.
Continued on next page
66 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
Assign cost center IT-## (to be named Group ## IT and Computing
Center ) to service cost center category H, the Corporate Other (9900)
business area, and the Internal Service (1400) profit center. Make sure that
the cost center is only locked against planning and posting revenues. Save
the cost center master data.
a) Choose Accounting → Controlling → Cost Center Accounting →
Master Data → Cost Center → Individual Processing → Create .
b) In the Cost Center field, enter IT-## , check the from/to validity
(current fiscal year), and enter EDUC-## as the reference cost center.
c) Choose Master Data and enter the following data:
Field Value or Action
Name and Description Group ## IT and
Computing Center
Person Responsible Your name
Cost Center Category H
Hierarchy Area HAC050
Company Code 1000
Business Area 9900
Profit Center 1400
d) Select the Control tab page. Under Lock , ensure that only Actual
Revenues and Plan Revenues are selected.
e) Choose Save .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 67 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Task 3:
Create a cost center group.
1. To be able to address your new cost centers at the same time, create a cost
center group that contains your cost centers. Name the cost center group
CENTERS-## and describe it as Group ## Cost Centers . Assign the
service cost center IT-## and the administration cost centers CONS-## and
EDUC-## to this group.
Hint: Your new cost center group is not a part of the standard
hierarchy. Do not assign your cost center group to the standard hierarchy.
a) Choose Accounting → Controlling → Cost Center Accounting →
Master Data → Cost Center Group → Create .
b) In the Cost Center Group field, enter CENTERS-## .
c) Choose Hierarchy . In the description field, enter Group ## Cost
Centers .
d) Choose Insert Cost Center . In the left column, enter IT-## , CONS-##
and EDUC-## .
e) Choose Save .
Task 4:
Create activity types to describe and measure the activities, and thus the
quantifiable output of the cost centers.
1. Display activity type 1421 in the system and check the master data.
a) Choose Accounting → Controlling → Cost Center Accounting →
Master Data → Activity Type → Individual Processing → Display .
b) In the Activity Type field, enter 1421 .
c) Choose Master Data . Check the master data.
2. Create activity type JCON## by copying activity type 1421 . Make sure that
the activity type is valid up to the last day of the current year.
Continued on next page
68 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
Enter Junior Consulting ## as the name and description of consulting
services provided by junior consultants. Use activity type category 1 for
manual entry and allocation, and DAA Junior Consultant (626100) as the
allocation cost element.
a) Choose Accounting → Controlling → Cost Center Accounting →
Master Data → Activity Type → Individual Processing → Create .
b) Enter the following data:
Field Value or Action
Activity Type JCON##
Valid From First day of the current fiscal year
To Last day of the current fiscal year
Activity Type 1421
c) Choose Master Data . Enter the following data:
Field Value or Action
Name Junior Consulting ##
Description Junior Consulting ##
ATyp Category 1
Allocation Cost Elem 626100
Note: If you are prompted to do so, enter the last day of the
current fiscal year in the Valid to field.
d) Choose Save .
Note: Remain in the Create Activity Type: Initial Screen view
for the next exercise.
3. Create activity type SCON## by making a copy of activity type JCON## .
Make sure that the activity type is valid for the entire year.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 69 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Enter Senior Consulting ## as the name and description of consulting
services provided by senior consultants. Use activity type category 1 for
manual entry and allocation, and DAA Senior Consultant (626200) as the
allocation cost element.
a) Choose Accounting → Controlling → Cost Center Accounting →
Master Data → Activity Type → Individual Processing → Create .
b) Enter the following data:
Field Value or Action
Activity Type SCON##
Valid From First day of the current fiscal year
To Last day of the current fiscal year
Copy From JCON##
c) Choose Master Data . Enter the following data:
Field Value or Action
Name Senior Consulting ##
Description Senior Consulting ##
Valid to Last day of the current fiscal year
Atyp 1
Allocation Cost elem 626200
d) Choose Save .
4. Create activity type TRAI## by making a copy of activity type JCON## .
Make sure that the activity type is valid for the entire year. This activity type
is used for the time spend holding various types of training courses, hence
Continued on next page
70 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
the name and description Training ## . Activity type category 1 involves
manual entry with manual allocation, and the allocation cost element is your
new cost element Training ## (6263##) .
a) Choose Accounting → Controlling → Cost Center Accounting →
Master Data → Activity Type → Individual Processing → Create .
b) Enter the following data:
Field Value or Action
Activity Type TRAI##
Valid From First day of the current fiscal year
To Last day of the current fiscal year
Copy From JCON##
c) Choose Master Data . Enter the following data:
Field Value or Action
Name DAA Training ##
Description DAA Training ##
Valid to Last day of the current fiscal year
Activity Type Category 1
Allocation Cost Element 6263##
d) Choose Save .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 71 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
Task 5:
Create a statistical key figure.
1. Create the statistical key figure EMPL## (number of employees) with a
fixed value to record the number of employees in your cost centers. Use the
unit of measure for “number of persons” ( PER).
Note: Use Fixed Value as the key figure category. This is the default
setting.
a) Choose Accounting → Controlling → Cost Center Accounting →
Master Data → Statistical Key Figures → Individual Processing →
Create .
b) In the Stat. Key Figure field, enter EMPL## . Choose Master Data .
c) Enter the following data:
Field Value or Action
Name Number of Employees
Statistical Key Figure Unit of
Measurement
PER
d) Choose Save .
Continued on next page
72 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
Task 6:
Create an overhead cost order to which you can allocate costs in each accounting
period.
Note: For more detailed controlling, you want to record the costs incurred
by your company when participating in a trade fair not only on a cost
center, but also separately.
1. Use the Order Manager to create an overhead cost order. Use the order type
Internal Order – Marketing (0400) . Name the order Trade Fair Group ##
and assign it to the Corporate Other (9900) business area and the Internal
Service (1400) profit center. Enter your cost center IT-## as the cost center
responsible for this.
Note: Do not save your order yet.
a) Choose Accounting → Controlling → Internal Orders → Master Data
→ Order Manager . Choose Create .
b) Enter 0400 as the order type and choose Continue (Enter) . Enter
Trade Fair Group ## as the description.
c) Select the Assignment tab page. Enter the following data:
Field Value or Action
Business Area 9900
Profit Center 1400
Responsible Cost Center IT-##
Note: Do not save the order master record yet.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 73 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 2: Organizational Units Used in Accounting AC050
2. Create a periodic settlement rule to allocate 100% of the actual costs to your
service cost center IT-## . Save the order. Make a note of the trade fair order
number on your data sheet.
Hint: Your order number appears on the left side of the screen. All
the orders you processed will be listed here with some important
information. To see more of this information, use the mouse to
widen the panel.
You can change which information is displayed here by selecting a
different layout. You can also create your own layouts.
You can jump directly to any order by clicking the order number.
You can sort and filter the list of orders, and switch to collective
processing mode.
a) Choose Settlement Rule .
b) Enter the following data:
Field Value or Action
Category CTR
Settlement Receiver IT-##
% 100
Settlement Type PER
c) Choose Save . Make a note of the trade fair order number.
74 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Basic Data for Overhead Cost Controlling
Lesson Summary
You should now be able to:
• List the master data used in Cost Element Accounting and explain its purpose
• List the master data used in Overhead Cost Controlling and explain its
purpose
• List ways in which master data groups can be used
2010 © 2010 SAP AG. All rights reserved. 75 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit Summary AC050
Unit Summary
You should now be able to:
• Identify the basic organizational units that are relevant to Management
Accounting
• Explain the relationships between organizational units in Management
Accounting and other organizational units in the SAP system
• List the master data used in Cost Element Accounting and explain its purpose
• List the master data used in Overhead Cost Controlling and explain its
purpose
• List ways in which master data groups can be used
76 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Librería ERP https://libreriaerp.com/us [email protected] Librería ERP https://libreriaerp.com/us [email protected]

Unit3
Meeting Reporting Requirements
Unit Overview
This unit explains the analytical reporting tools available for use with Management
Accounting, including the Report Painter and Report Writer, drilldown reporting,
and the SAP List Viewer.
Unit Objectives
After completing this unit, you will be able to:
• List the various reporting tools that are available in Management Accounting
• Explain the purpose and features of the different reports
Unit Contents
Lesson: Analytics in Management Accounting............................... 78
Exercise 4: Reporting Tools in Management Accounting .............. 87
2010 © 2010 SAP AG. All rights reserved. 77 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Unit 3: Meeting Reporting Requirements AC050
Lesson: Analytics in Management Accounting
Lesson Overview
This lesson introduces the reporting tools that are normally used in Management
Accounting: Report Painter, drilldown reporting, and SAP List Viewer.
Lesson Objectives After completing this lesson, you will be able to:
• List the various reporting tools that are available in Management Accounting
• Explain the purpose and features of the different reports
Business Example
Having successfully created the actual and planning data in the various
Management Accounting applications, you now have to evaluate these postings
by running one or more of the standard reports available in the SAP system.
You want to find out which reporting tool is suitable for creating reports in
Management Accounting.
The next stage of your system review involves reporting. Obviously, reporting
requirements can vary substantially throughout an organization. You talk with
several managers with different information needs to assess whether or not
their current reports are adequate. In many cases, the standard SAP reports are
sufficient. In some cases, however, custom reports are required to meet specialized
needs.
Reporting Tools in Management Accounting
Several reporting tools are used in the Management Accounting Information
System, including Report Writer and Report Painter, drilldown reporting, and the
SAP List Viewer. Each tool has its own special features and area of application.
Figure 37: Reporting Tools in Management Accounting
78 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Analytics in Management Accounting
The Report Writer enables you to use data from Management Accounting and
other SAP applications in reports and configure those reports to meet your specific
requirements. For many of your reporting requirements, you will find that the
standard reports available in the different Management Accounting application
components are sufficient.
The Report Painter is used to modify the look and layout of reports. It is easier
to use than the Report Writer.
Drilldown reporting is used in Profitability Analysis (CO-PA) and Product
Cost Controlling (CO-PC). In drilldown reporting, characteristics are used to
classify the business transaction data. Examples of characteristics include the
controlling area, company code, customer, product group, order, and product.
The time dimension (fiscal year, period) is also a characteristic. Key figures
represent specific values of the classified data. You can use key figures to perform
calculations that derive values such as revenue per employee and the contribution
margin.
The SAP List Viewer standardizes and simplifies the output of lists in the SAP
system. The SAP List Viewer is used in Management Accounting for line item
reporting. All lists have a uniform interface and format. You can also create your
own display layouts to change the format of your lists. You can add fields to a list,
change the sequence of fields, and change the column width.
Data is evaluated in Management Accounting using reports that are provided in
the standard system or that you define yourself. Standard reports are available in
client 0. You have to import the reports to the client in which you want to work.
Figure 38: Report Selection
2010 © 2010 SAP AG. All rights reserved. 79 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 3: Meeting Reporting Requirements AC050
Report Writer/Report Painter
In addition to the standard reports, you can also use the Report Painter and Report
Writer to define your own custom reports. Both the Report Painter and the Report
Writer provide a variety of functions that you can use to display, sort, filter, and
total data.
Figure 39: Report Painter/Report Writer
You can change Report Painter reports with the Report Writer, but reports changed in this way can no longer be edited with the Report Painter. Report Writer reports cannot be changed with the Report Painter.
When you create your own custom reports with the Report Painter, you define the
report rows, the report columns, and the general data selection. The Report Painter
can access data in an extract, direct from the database, or from an archive.
All reports that are available online can be run in the background at a predefined time. This can be particularly useful during a process (such as period-end closing) when you want to run several reports for different users. Background processing enables you to process large amounts of data at times when system utilization is low.
80 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Analytics in Management Accounting
Figure 40: Options with Report Writer Reporting
After you execute a Report Writer report, there are a number of options available
for analyzing the data. These options help you navigate through the data and
change the report layout. You can modify the report online to meet your specific
requirements.
The main functions can be accessed with the pushbuttons on the output screen of
the report. You can access other functions from the menu, including:
• Downloading the report to your PC (as a Microsoft Excel spreadsheet, for
example)
• Setting threshold values to highlight or skip certain rows of the report
• Mailing reports using the Send function. To do this, you must have saved the
report in an extract.
• Sorting report rows, hiding or showing report rows, changing the number
format, entering a summation level to see only the totals, and producing
graphical renditions of the report data.
SAP List Viewer
The SAP List Viewer is particularly recommended for all types of list-based
report, such as line item reports.
2010 © 2010 SAP AG. All rights reserved. 81 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 3: Meeting Reporting Requirements AC050
Figure 41: SAP List Viewer
In the SAP List Viewer report, you can choose between different standard display
variants (layouts) for displaying line items. The display variant controls how the
line item information is displayed on the screen. If required, you can change
the sequence of the fields, select new fields from a field catalog, or remove
ones already selected. You can save these new settings as your own layout
(user-specific or generally available).
Depending on the width of a column, the SAP system automatically displays
either the short text or the long text version of the field name in your logon
language, if available.
After running a line item report, you can:
• Scroll horizontally by column
• Hide or show columns and change their order
• Sort lists and filter data according to certain criteria
• Display totals for value columns and subtotals for each object in a row
• Display the original document
Drilldown Reporting
You can recognize drilldown reports by the characteristics you can use to navigate
in the report. Examples of drilldown reports are reports in Profitability Analysis.
You can summarize the data according to the characteristics and then drill down
interactively in the report. You can display the drilldown list (overview) or the
detailed list at each level of the report.
82 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Analytics in Management Accounting
The figure shows the results of a drilldown by division. The drilldown list shows
an overview of profitability for all divisions. The detail list breaks down the
profitability by division.
Figure 42: Drilldown Reporting
The following functions are available for drilldown reporting:
• Displaying master data and graphics
• Sending reports via SAPmail
• Saving report data, adding address data, and defining exceptions
• Downloading reports in Microsoft Excel format
• Printing reports
2010 © 2010 SAP AG. All rights reserved. 83 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 3: Meeting Reporting Requirements AC050
Figure 43: Options for Drilldown Reporting
The drilldown reporting functions are separated into three levels so that you can
assign each user the functions that he or she requires.
Level 1 contains the basic functions of drilldown reporting plus the ability to send
reports via SAPmail. Level 1 is designed for users who do not require all the
drilldown reporting functions.
Level 2 contains additional drilldown functions. You can also display graphics
and download reports in Microsoft Excel format.
All Functions provides you with the complete range of drilldown functions
including printing, saving report data, and defining exceptions. This level is
designed for users who want to use the full range of interactive drilldown functions
and also need to print and change reports.
Information System
In the interactive Information System, you can valuate posted data immediately
after it has been recorded in the SAP system, and trace the source of the data
down to document level.
Each individual transaction is automatically summarized into totals records. This
summarization takes place in the SAP system by object/account and enables the
data to be evaluated more quickly. You can analyze the totals record data with the
Information System. From the summary report, you can analyze the corresponding
line items by calling the line item report. You can also branch from a line item to
the original documents on which it is based.
84 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Analytics in Management Accounting
To display the original documents of the application that sent the data to
Management Accounting, select the line item and choose Environment → Source
Document .
Hint: You can also select a line item simply by double-clicking on it.
If a line item originated from a posting to a cost center in Financial Accounting
(FI), the system displays the FI document.
To display accounting documents (line items only) , choose Environment →
Accounting Documents . A dialog box lists the accounting documents that were
created in connection with that line item.
Figure 44: Viewing Accounting Documents with the Interactive Information
System
In the example in the figure above (primary posting to a cost center in FI), this
would be the accounting document, the Management Accounting document, and
possibly other documents such as the special ledger document or consolidation
document.
2010 © 2010 SAP AG. All rights reserved. 85 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 3: Meeting Reporting Requirements AC050
Menu Paths in Reporting
Action Menu path
Execute general ledger report Accounting → Financial Accounting →
General Ledger → Information System →
General Ledger Reports
Start report Double-click the name, such as Balance
Sheet/Profit and Loss Statement
Execute drilldown reporting Accounting → Controlling → Profitability Analysis → Information System → Execute
Report
Execute cost center report Accounting → Controlling → Cost Center
Accounting → Information System → Reports for Cost Center Accounting → Plan/Actual
Comparisons
86 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Analytics in Management Accounting
Exercise 4: Reporting Tools in
Management Accounting
Exercise Objectives
After completing this exercise, you will be able to:
• Describe the details that Management Accounting provides in reports and
reported data
• Trace a cost posting in Management Accounting back to the original
Financial Accounting transaction that caused the posting
Business Example
While Financial Accounting focuses on showing revenues and expenses at a
high level (company code and business area), Management Accounting provides
detailed data on costs and revenues for individual cost objects (cost centers,
orders, profit centers, and so on).
You use the reports of the German subsidiary in the controlling area Europe
(operating concern IDES Worldwide) in the General Ledger (Financial
Accounting) and in Profitability Analysis and Cost Center Accounting
(Management Accounting) to examine the focus of reporting in each of these
application areas. You trace a cost posting in Management Accounting back to
the original Financial Accounting transaction that caused the posting to see the
levels of system integration.
Optional: Change the layout to display the Business Area field. Use the +Business
Area icon to expand the report rows.
Task 1:
Generate a balance sheet and profit and loss statement in the general ledger for
the German IDES subsidiary.
1. Execute the actual/actual comparison report Balance Sheet/Profit and Loss
Statement for company code 1000 . Using the SAP minimal variant and the
financial statement version INT, create a report for the current fiscal year in
English that allows a comparison to be made with the previous fiscal year.
2. Concentrate on the sales revenue account 800000 and the expense account
for direct labor costs 420000 . How detailed is the revenue and expense
information in this report?
Note: To find the accounts quickly, choose Edit → Find .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 87 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 3: Meeting Reporting Requirements AC050
Result
In this report, the revenue and expense information is output at the company
code/business area/account level.
Task 2:
Execute a report for a controlling area.
1. In Cost Center Accounting, execute a report for the controlling area Europe
(1000 ). Execute the Cost Centers: Actual/Plan/Variance report for periods
1to 12 of the current fiscal year and plan version 0. Use cost center 4230 .
How detailed is the cost information in this report?
Hint: If the system asks whether you want to exit the report when
you leave the cost center report, choose Yes. Do not choose Create
Extract .
Task 3: Review the cost postings to service cost center 4230 and examine the posting
documents relevant to cost element 420000 (direct labor costs).
1. In Cost Center Accounting, execute a report for the controlling area Europe
(1000 ). Execute the Cost Centers: Actual/Plan/Variance report for periods 1
to 12 of the current fiscal year and plan version 0. Use cost center 4230.
2. Drill down on cost element 420000 (direct labor costs) to display the actual
line items that make up this total.
Drill down on a line item to display the document (source document) that
contains the business transaction. Look at the other accounting documents
connected with this business transaction.
Task 4:
Execute a report in costing-based profitability analysis.
1. Execute a report in costing-based profitability analysis for the operating
concern IDES Worldwide ( IDEA ).
Execute the contribution margin report AC040 for the current fiscal year with
plan version 110. This report shows the results for various market segments.
Use the classic drilldown report first.
Continued on next page
88 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Analytics in Management Accounting
Drill down to the results for plant 1000 (Hamburg) in report AC040 . What
is the gross revenue for this view?
Note: If the system asks you whether costing-based is the correct
type of profitability analysis, choose Yes.
If the system displays the Drilldown: Call Documentation for
Hotspots screen, choose Continue (Enter).
2. Drill down in this report for plant 1000 to division 00 (cross-division sales),
and then to division 01 (pumps), product P-100 and customer 1320. What is
the actual gross revenue for this view?
3. From the main report, drill down to investigate the results for product P-100
(pump). What is the actual gross revenue for this view?
4. Investigate the results for product P-100 with the graphical report output.
2010 © 2010 SAP AG. All rights reserved. 89 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 3: Meeting Reporting Requirements AC050
Solution 4: Reporting Tools in
Management Accounting
Task 1:
Generate a balance sheet and profit and loss statement in the general ledger for
the German IDES subsidiary.
1. Execute the actual/actual comparison report Balance Sheet/Profit and Loss
Statement for company code 1000 . Using the SAP minimal variant and the
financial statement version INT, create a report for the current fiscal year in
English that allows a comparison to be made with the previous fiscal year.
a) Choose Accounting → Financial Accounting → General Ledger →
Information System → General Ledger Reports → Balance Sheet/Profit
and Loss Statement/Cash Flow → General → Actual/Actual
Comparisons
b) Double-click on SAP Minimal Variant .
c) Enter the following data:
Field Value or Action
Company Code 1000
Financial Statement Version INT
Language EN
Reporting Year Current fiscal year
Comparison Year Previous fiscal year
List Output ALV grid control
d) Choose Execute .
Continued on next page
90 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Analytics in Management Accounting
2. Concentrate on the sales revenue account 800000 and the expense account
for direct labor costs 420000 . How detailed is the revenue and expense
information in this report?
Note: To find the accounts quickly, choose Edit → Find .
a) Choose Edit → Find .
Enter 800000 as the search term and choose Find .
b) Select a row in the report with account 800000 and choose Details .
Check the displayed information.
c) Optional: Change the layout to display the Business Area field. To do
this, choose the Change Layout icon and transfer the business area
from the column set into the list of displayed columns. Then use the
+Business Area icon to expand the report rows.
Now place the cursor back on the report row for account 800000.
d) Choose Edit → Find .
Enter 420000 as the search term and choose Find .
e) Select a row in the report with account 420000 and choose Details .
Check the displayed information.
Result
In this report, the revenue and expense information is output at the
company code/business area/account level.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 91 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 3: Meeting Reporting Requirements AC050
Task 2:
Execute a report for a controlling area.
1. In Cost Center Accounting, execute a report for the controlling area Europe
(1000 ). Execute the Cost Centers: Actual/Plan/Variance report for periods
1to 12 of the current fiscal year and plan version 0. Use cost center 4230 .
How detailed is the cost information in this report?
Hint: If the system asks whether you want to exit the report when
you leave the cost center report, choose Yes. Do not choose Create
Extract .
a) Choose Accounting → Controlling → Cost Center Accounting
→ Information System → Reports for Cost Center Accounting
→ Plan/Actual Comparisons . Double-click Cost Centers:
Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period 1
To Period 12
Plan Version 0
Or Value(s) = Cost center 4230
c) Execute the report.
In this report, cost information is displayed at cost center and cost
element level.
Continued on next page
92 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Analytics in Management Accounting
Task 3:
Review the cost postings to service cost center 4230 and examine the posting
documents relevant to cost element 420000 (direct labor costs).
1. In Cost Center Accounting, execute a report for the controlling area Europe
(1000 ). Execute the Cost Centers: Actual/Plan/Variance report for periods 1
to 12 of the current fiscal year and plan version 0. Use cost center 4230.
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period 1
To Period 12
Plan Version 0
Or Value(s) = Cost center 4230
c) Execute the report.
2. Drill down on cost element 420000 (direct labor costs) to display the actual
line items that make up this total.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 93 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 3: Meeting Reporting Requirements AC050
Drill down on a line item to display the document (source document) that
contains the business transaction. Look at the other accounting documents
connected with this business transaction.
a) Double-click the report row for cost element 420000 .
b) Double-click the Cost Centers: Actual Line Items report.
Choose Document to display the original FI document (accounting
document).
c) Go back to the Display Actual Cost Line Items for Cost Centers screen.
Select the line item and choose Environment → Accounting Documents .
The system displays a list of the accounting documents generated by
this posting.
d) Examine the accounting document and the profit center document.
Double-click on the documents to display the detail.
In this example, the original document is the same as the accounting
document.
e) Exit the report and return to the application menu.
Task 4:
Execute a report in costing-based profitability analysis.
1. Execute a report in costing-based profitability analysis for the operating
concern IDES Worldwide ( IDEA ).
Execute the contribution margin report AC040 for the current fiscal year with
plan version 110. This report shows the results for various market segments.
Use the classic drilldown report first.
Continued on next page
94 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Analytics in Management Accounting
Drill down to the results for plant 1000 (Hamburg) in report AC040 . What
is the gross revenue for this view?
Note: If the system asks you whether costing-based is the correct
type of profitability analysis, choose Yes.
If the system displays the Drilldown: Call Documentation for
Hotspots screen, choose Continue (Enter).
a) Choose Accounting → Controlling → Profitability Analysis →
Information System → Execute Report . Choose report AC040 .
b) In the Set Operating Concern dialog box, enter IDEA in the Operating
Concern field.
Select costing-based and confirm this with Continue . Execute report
AC040.
c) Enter the current fiscal year, period 1to 12, and plan version 110.
Select Classic Drilldown report. Choose Execute .
d) In the navigation area, choose Plant .
Check whether plant 1000 (Hamburg) is displayed. If necessary, you
can scroll with the navigation arrows or use the magnifying glass to see
which plants are available.
2. Drill down in this report for plant 1000 to division 00 (cross-division sales),
and then to division 01 (pumps), product P-100 and customer 1320. What is
the actual gross revenue for this view?
a) Choose Division . Check whether division 00 (cross-division) is
displayed.
b) Choose Product . Check whether product P-100 is displayed. If not,
select division 01 and then select product P-100.
c) Choose Customer . Check whether customer 1320 is displayed.
3. From the main report, drill down to investigate the results for product P-100
(pump). What is the actual gross revenue for this view?
a) In the navigation area, choose Back (green arrow) repeatedly until you
return to the initial report.
b) Choose Product and select product P-100 with the magnifying glass
icon.
4. Investigate the results for product P-100 with the graphical report output.
a) Execute report AC040 again. Choose Graphical Report Output on
the selection screen for the report.
2010 © 2010 SAP AG. All rights reserved. 95 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 3: Meeting Reporting Requirements AC050
Lesson Summary
You should now be able to:
• List the various reporting tools that are available in Management Accounting
• Explain the purpose and features of the different reports
96 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Unit Summary
Unit Summary
You should now be able to:
• List the various reporting tools that are available in Management Accounting
• Explain the purpose and features of the different reports
2010 © 2010 SAP AG. All rights reserved. 97 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit Summary AC050
98 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Librería ERP https://libreriaerp.com/us [email protected] Librería ERP https://libreriaerp.com/us [email protected]

Unit4
Planning in Management Accounting
Unit Overview
This unit explains the importance and the role of planning in Management
Accounting. Creating planning data allows you to carry out planned/actual and
target/actual comparisons, thereby rendering Management Accounting even more
efficient.
Unit Objectives After completing this unit, you will be able to:
• Work out how the planning functions in the SAP system can support the
planning processes in your company
• Explain how different plan versions can be used
• Name the three cost accounting methods used in Management Accounting
• Explain the purpose of planning statistical key figures and the methods used
to do this
• 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 some simple and complex planning options
Unit Contents
Lesson: Introduction to Planning..............................................100
Exercise 5: Introduction to Planning .....................................107
Lesson: Planning Options in Overhead Cost Controlling.................. 111
Exercise 6: Planning in Cost Center Accounting.......................123
2010 © 2010 SAP AG. All rights reserved. 99 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Lesson: Introduction to Planning
Lesson Overview
This lesson introduces you to the aims of planning and the option of using several
plan versions at the same time, deriving plans from other plans, and defining your
own views of the planning database.
Lesson Objectives After completing this lesson, you will be able to:
• Work out how the planning functions in the SAP system can support the
planning processes in your company
• Explain how different plan versions can be used
• Name the three cost accounting methods used in Management Accounting
Business Example
Planning is an important part of every organization's activities. You want to
vary planning activities depending on the required level of detail and the costs
associated with planning.
The Importance of Planning
Virtually every business organization plans to some extent for future business
operations. The extent and method of planning, however, can vary greatly from
one enterprise to another.
Planning provides a baseline measurement against which actual operating results
can be matched. This improves the analysis and control aspects of the business
operations to achieve the desired results.
Plan figures can be part of a company target, or may just apply as a type of
general guideline. The purpose of plan figures depends on the corporate culture
and policies.
100 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Introduction to Planning
Figure 45: The Objectives of Planning
Planning is a way of defining company targets. Actual operating results can then
be compared with this plan. Such a comparison can identify variances that serve
as signals to take corrective measures in the business operations.
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 many options for defining planning objectives.
Planning Views and Functions
Aversion can be regarded as a unique view of planned costs and revenues
based on a particular set of assumptions. In the planning process, many different
versions can be created, and different planned values created for each version.
Each version is independent of all others.
Figure 46: Versions
2010 © 2010 SAP AG. All rights reserved. 101 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
The SAP system automatically creates version 0 when you create a controlling
area. The actual values created when primary costs and internal postings are
entered are updated in this version. This version must be used for plan/actual cost
comparisons. Version 0 is the version used for analyzing actual data.
Planning always take place within a plan version. One version is valid for all
applications. This helps ensure that the integrated use of a particular version
produces consistent results across applications (for example, integrated planning
between Cost Center Accounting and Profit Center Accounting).
A version can have particular settings that apply to individual controlling areas and
fiscal years, such as whether copying the version is allowed, or whether planned
data for the version is locked (cannot be changed). With the help of additional
version settings, you can influence planning in different areas.
Figure 47: Copying Plan and Actual Data
If you want to reuse large parts of your cost and revenue planning from the
previous year for the current fiscal year, or transfer plan values within a fiscal
year to a different period, or generate alternative versions, you can use the Copy
Planning function. This function can also be used to copy actual data from Cost
Center Accounting and use it as a basis for future planning data.
You can copy as much or as little data as required. For example, you can limit the
selection of data to particular cost centers, or include all cost centers.
Revaluation allows you to increase or decrease the planning results on a
percentage basis. By combining the copy planning and revaluation functions, you
can create multiple planning versions. This may be useful after copying the plan
data from the previous year or for producing best-case and worst-case scenarios
within a year.
102 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Introduction to Planning
Planning Layouts and Planner Profiles
Planning layouts are used for defining the planning screen. Standard planning
layouts already exist for nearly every planning scenario that you could think of.
You can copy these standard planning layouts and adapt them as required, or
create new layouts. For example, Layout 1-101 is used for activity-independent
and activity-dependent cost element planning.
Figure 48: Planning Layouts
You use entry displays or planning layouts to enter planning data. These
displays can be modified as you wish. You define the titles, key columns, and
value columns according to your business requirements for all planning areas.
There are three planning areas in Cost Center Accounting:
• Cost elements/activity input
• Activity types/prices
• Statistical key figures
For every planning area, you use the layout to define the key columns (these
contain the characteristics for which you enter planning values, for example, cost
center or cost element) and to arrange the value columns in which you enter the
planning data.
You can create your own planning layouts to display other key columns . The key
columns show the objects that require planning. You can define more than one
key column. For example, you can create a planning layout with cost center and
activity type as the key columns. In this case, value columns are available to plan
values for all cost center/activity type combinations.
2010 © 2010 SAP AG. All rights reserved. 103 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Figure 49: 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. A
planning area can therefore contain more than one planning layout. You can also
group the planning layouts together by assigning them to planner profiles. During
the planning phase, you can switch between the planning layouts that belong to a
certain planning area of a planner profile. Thus you can switch between layouts
1-101 and 1-102 in the SAPALL profile, for example.
The SAP system contains standard planner profiles and planning layouts that cover
a large number of potential planning situations. You can use the SAPALL planner
profile to plan three planning areas with more than one assigned SAP standard
layout. SAP has designed the SAPEASY planner profile for simpler planning
requirements. Of course, you can also define your own profiles.
Cost Accounting Methods
Different cost accounting methods are used in Management Accounting. These
methods differ from each other in terms of the level of detail and most of
the analysis options, and therefore require more time for implementation and
maintenance. The method you choose depends on the level of detail that you
require.
104 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Introduction to Planning
Figure 50: Cost Accounting Methods
The selected method does not have to be valid for the whole enterprise. If certain
areas of your enterprise require less detailed planning and less accurate results, you
can use a more simple method. It is advisable to select a more complex method
for areas in the enterprise that require comprehensive cost accounting functions.
2010 © 2010 SAP AG. All rights reserved. 105 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
106 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Introduction to Planning
Exercise 5: Introduction to Planning
Exercise Objectives
After completing this exercise, you will be able to:
• Describe how planning is used to forecast costs and revenues and in decision
making.
Business Example
The cost center managers want a clear picture of the results that can be expected
from your cost centers in future periods. In addition, they constantly require actual
figures so that they can recognize variances from the plan in good time and take
action, instead of having to wait until the end of the period.
Task:
Describe how you might best implement the planning and budgeting functions
in your enterprise.
1. Why do enterprises plan, and what do they normally plan?
Choose the correct answer(s).
□ A Create a cost forecast
□ B Plan future operations for specific periods
□ C Create benchmarks for monitoring the business transactions
within a fiscal year
□ D Monitor efficiency at the end of the posting periods
□ E Document an approved spend
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 107 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
2. Do you want to implement both planning and budgeting?
3. How many plan versions could you use? What could be included in these
plan versions (for example, best case, worst case, and so on)?
4. If one plan version is merely an adaptation or modification of another plan
version, the function can save you a great deal of time.
Remember: You should normally base planning for a new fiscal year on the
plan values, or even the actual values, of the previous fiscal year. With the
appropriate copy version, you can quickly create a new plan, which you can
then adapt manually.
Fill in the blanks to complete the sentence.
108 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Introduction to Planning
Solution 5: Introduction to Planning
Task:
Describe how you might best implement the planning and budgeting functions
in your enterprise.
1. Why do enterprises plan, and what do they normally plan?
Answer: A, B, C, D
Planning is used to set organizational goals.
2. Do you want to implement both planning and budgeting?
Answer: While planning is used for forecasting costs, budgeting is
concerned with providing individual organizational units (such as cost
centers) or measures (internal orders and projects, for example) with funds.
It makes sense to base the budget on the defined plan values. Both values
can, however, work out very differently over the course of time. In this
respect, the two methods complement each other. Availability control only
applies to the budget values.
3. How many plan versions could you use? What could be included in these
plan versions (for example, best case, worst case, and so on)?
Answer: To be able to work out and compare a number of plans, it makes
sense to have different plan versions. Different plan versions can also be
used with rolling planning, to save the plan values for the last period before
the plan values in the new planning process are changed.
4. If one plan version is merely an adaptation or modification of another plan
version, the c
opyplanfunction can save you a great deal of time. Remember:
You should normally base planning for a new fiscal year on the plan values, or even the actual values, of the previous fiscal year. With the appropriate
copy version, you can quickly create a new plan, which you can then adapt
manually.
Answer: copy plan
2010 © 2010 SAP AG. All rights reserved. 109 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Lesson Summary
You should now be able to:
• Work out how the planning functions in the SAP system can support the
planning processes in your company
• Explain how different plan versions can be used
• Name the three cost accounting methods used in Management Accounting
110 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Lesson: Planning Options in Overhead Cost Controlling
Lesson Overview
This lesson deals with planning in Management Accounting and describes the
different planning tools. It starts off with a description of the simple planning
options, and then moves on to the more complex planning tools.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the purpose of planning statistical key figures and the methods used
to do this
• 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 some simple and complex planning options
Business Example
You are a cost center manager and need an efficient way of comparing plan
and actual costs. First, you must plan the actual costs that are incurred by cost
centers outside of Management Accounting, such as expenses for salaries and
depreciation. In addition to this, all cost and activity allocations that take place as
part of period end-closing must be planned.
The cost flows of a cost center can be planned in such a way that all overhead costs
are covered by means of cost or activity type allocations. All costs that are not
covered can be allocated with Profitability and Sales Accounting.
Simple Planning Methods
Planning statistical key figures enables you to:
• Calculate ratios in Cost Center Accounting (such as costs per employee)
• Create receiver bases (allocation factors) for allocations, such as assessment
or distribution.
2010 © 2010 SAP AG. All rights reserved. 111 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Figure 51: Planning Statistical Key Figures
Statistical key figures can be defined as fixed values or as values in totals records:
• If you plan a fixed value (for example, employee), you enter the number of
employees that are assigned to a cost center. The system then shows the
mean value for all planned periods in the overview screen. The period data
screen shows you the plan quantity for each period.
• If you plan a totals value (for example, telephone units), the quantity that you
entered is distributed to the periods according to the assigned distribution key.
You can plan statistical key figures either directly or dependent on the activity
types for a cost center. SAP provides layouts for statistical key figures that you
can access via the SAPALL standard profile:
• Standard layout 1-301 for the activity-independent planning of statistical
key figures
• Standard layout 1-302 for the activity-dependent planning of statistical
key figures
You can also transfer statistical key figures from the Logistics Information System
(LIS).
112 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Figure 52: Primary Cost Planning
You plan activity-independent primary costs arranged according to cost element
on the cost centers where you later assign the actual data. Most cost elements are
normally planned this way (material costs, costs for raw materials, operating
material, consumable materials, and so on).
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 53: Cost Allocation Methods for Planning
2010 © 2010 SAP AG. All rights reserved. 113 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
In distribution and assessment , costs are allocated that were planned on a cost
center by means of user-defined keys (such as percentages, amounts, or statistical
key figures). The advantage of these methods is that they are simple: You only
need to define the keys and the sender/receiver relationships once.
You can, for example, assess the costs for the cafeteria using the number of
employees per cost center, or distribute the telephone costs according to telephone
units or telephones per cost center.
Figure 54: Pure Cost Allocations
Cost accounting methods that are based on pure cost allocations do not necessarily
require planning. However, there are many types of cost allocation (such
as distribution or assessment) that are only possible within Overhead Cost
Controlling. For this reason, this cost accounting method is only recommended for
relatively simple cost accounting systems that do not require special integration
with other components, such as sales order management or production.
If you do not enter any plan data, you restrict the options available to you for
performing an analysis later on using actual/actual comparisons with previous
periods.
Plan costs can be entered manually or transferred from feeder systems such as
SAP ERP Human Capital Management, Asset Accounting, and the Logistics
Information System.
The system provides different functions for cost allocation, such as distribution,
assessment, and overhead rates.
114 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Activity Type and Additional Planning Methods
Activity types can be used to measure cost center performance. They describe the
activity output (output quantity) of a cost center and are used for calculating the
operating rate and the target costs. Activity types are allocated using a secondary
cost element that is defined in the activity type master record.
With activity type planning , you manage the activity of a cost center by
measuring and controlling its activity output.
Figure 55: Activity Type Planning
You can enter the price for each cost center/activity type manually or calculate it
using automatic price calculation.
• You can set the activity price for your cost center/activity type combination
manually if the activity price is fixed within your company and unaffected by
any internal exchange of activities.
• With automatic price calculation, all primary and secondary costs are
included in the price. These costs are planned either as activity-dependent
costs or activity-independent costs for each cost center.
• If several activity types are planned for a cost center, the activity-independent
plan costs are assigned to these activity types for activity price calculation.
This can be done by entering equivalence numbers for each planned activity
type or by using plan cost splitting.
• The unit price for an activity type is calculated by dividing planned costs for
an activity by the planned activity quantities. Alternatively, the capacity of a
cost center to provide a given activity type can be used when calculating the
fixed portion of the activity price.
2010 © 2010 SAP AG. All rights reserved. 115 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Since the activity quantity is valuated with this price, an activity allocation results
in a combined quantity and value flow.
SAP provides standard layout 1-201 for activity type planning. This is assigned
to the SAPALL standard planner profile.
Figure 56: Planning Activity-Dependent Primary Costs
When you plan primary costs that are activity-dependent, you plan primary costs
that depend on certain activity types provided by the cost center. Consequently,
you also specify that if the activity type is no longer provided, these costs no
longer apply.
Once activity type planning is complete, you can plan the costs in line with these
activities (divided into fixed and variable costs, if required). Variable costs are
costs that occur in relation to the planned activity quantity. These costs can be
planned in addition to costs that are not activity-dependent. This means that the
price can contain two types of fixed cost:
• Plan costs (activity-independent) for the cost center
• Fixed portion of activity-dependent plan costs for the activity type
SAP provides standard layout 1-101 (contained in SAP profile SAPALL) for the
planning of primary costs that are activity-dependent.
116 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Figure 57: Planning Secondary Costs
In addition to primary costs, a cost center often incurs secondary costs, since it has
to use services (activity input) from other cost centers. You can plan this kind of
activity input as either activity-independent or activity-dependent.
You plan activity input as activity-independent if you use services such as plant
maintenance hours, regardless of the activities of the receiver cost center. The
consumption of planned activity input is, in this case, regarded as fixed. Activity
input is planned as activity-dependent if the consumption of this activity depends
on the output of an activity on the receiver cost center. The consumption can be
fixed or variable in relation to the activity output quantity.
You need to plan secondary costs for your cost center to enable plan and actual data
to be compared at regular intervals. With actual posting, you are the receiver of
internal activity allocations, since you receive the services from other cost centers.
A cost center that plans the receipt of secondary costs from internal activity
allocations must always specify a sender cost center and the quantity of the activity
received for this business transaction.
To calculate the planned secondary costs, the SAP system multiplies the
price of the activity type (from the sender cost center) with the activity
quantity that is consumed by the receiver cost center. Planned secondary costs
(activity-independent) are always fixed costs for a receiver cost center. You can
use standard layout 1-102 in the SAPALL profile for this business transaction.
2010 © 2010 SAP AG. All rights reserved. 117 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Figure 58: Cost Allocations Using Activity Types
Cost accounting methods that allocate activity-based costs do not necessarily
need planning, but the activity type that is provided must be assigned to the cost
center and a price must be defined. Since you can allocate activity types (though
not with every tool) to all other account assignment objects in Management
Accounting, these types of cost accounting methods are also recommended for
more complex cost accounting systems as well as for integration with other
components.
If you allocate costs using activity types, however, the planning function is
recommended. As well as planning the costs, you can plan the output quantities of
the activity types. This means that in this case, you can also calculate the cost per
unit of the activity type provided using price calculation. This can be stored as the
price in cost center planning.
You can overwrite prices that have been manually defined, if required, or retain
them to keep a particular type of activity expensive, for example.
Activity input planning displays the requirement as a scheduled activity quantity
to the sender of the activity. The cost center manager can then adapt the activity
output of the cost center to the requirement. This helps avoid idle capacity. This
transparency makes it easier to align planned activity quantities for consumption
and activity quantities that are to be produced by a cost center.
The calculated prices are used immediately for all participant senders and receivers
to display the new plan debits and credits. The result of the price calculation
should be prices that bring the balance of the cost center planning figures to zero.
This is referred to as fair allocation price for the activity type.
118 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
By planning output quantities, you can later determine an operating rate and
calculate target costs. This provides you with plan/actual comparisons and
target/actual comparisons for analysis purposes.
Figure 59: Example of Price Calculation
Equivalence numbers are one way of assigning (activity-independent) planned
costs to the activity types (splitting). For example, a cost center plans to generate
two activity types: Junior consultant hours (JCON) and senior consultant hours
(SCON). The activity types are selected for activity-dependent cost element
planning. In addition, activity-independent costs of 21,000 were planned, and these
need to be distributed to the different activity types using equivalence numbers.
The split costs are a component of the fixed part of the price of each activity type.
• Junior consultant hours: Equivalence no. = 1: ==> 21,000 * 1/3 = 7,000
• Senior consultant hours: Equivalence no. = 2: ==> 21,000 * 2/3 = 14,000
Cost element planning takes into account the fact that a cost center consumes
materials and external services to provide its own services for other cost centers or
orders. This consumption triggers cost postings (debits) on the cost center. You
can plan primary costs by entering planning data for the cost elements that are to
be used for posting the service or material consumption as actual values.
In order to reflect that some costs will only be incurred by a cost center if
certain activity types are produced by that cost center, you plan those costs as
activity-dependent . You plan these costs as variable costs if they are dependent
on the output quantity of this activity type. You plan these costs as fixed costs if
they are independent of the activity quantity.
If a particular activity type is planned on a cost center, you also have to plan
the costs that you expect to incur in providing the planned activity quantity.
Costs that have been planned independently of the activity need to be coded.
This enables you to calculate the unit cost of providing the activity. You can
use automatic planned price iteration to calculate this value (the price always
2010 © 2010 SAP AG. All rights reserved. 119 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
refers to one unit of the activity type to be provided). If a cost center produces
more than one activity type, the activity-independent planned costs must be split
across the cost center’s activity types in order to calculate the relevant price for
the individual activity types.
Typical Planning Steps
There is no prescribed sequence in which the steps involved in cost center planning
must be performed. However, SAP does recommend that you follow a few general
rules to ensure a logical sequence that meets your requirements. You may have to
adjust this sequence to reflect the work processes that exist in your enterprise.
Figure 60: Typical Planning Steps for Cost Centers
The first step involves planning statistical key figures. Statistical key figures are
frequently used as tracing factors in distribution and assessment.
Activity type planning is usually the next step in cost center planning, because it is
necessary to know which activities can be performed by which cost centers.
Using activity input planning, cost center managers plan how many activities
they want to use. This is visible as the scheduled activity quantity on the sending
cost centers.
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 be
carried out automatically using plan reconciliation , which adjusts the planned
activity quantity for a cost center to the activity quantity scheduled for the receiver
cost centers.
The next logical step involves planning the primary costs and the
additional secondary costs. These costs can be planned manually as either
activity-independent or activity-dependent costs. You can subdivide the
activity-dependent costs into fixed and variable costs. Secondary cost planning
can include assessment and indirect activity allocation.
120 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Activity price calculation is the final step in the planning process. The SAP
system calculates the prices for all combinations of cost centers and activity
types iteratively. The activity prices are then used to valuate the planned activity
exchange.
Figure 61: Assigning Planning Methods to Controlling Methods
In simple scenarios, planning is optional and no activity types are necessary. Only
costs are planned. Plan cost allocations can be accomplished with distributions
and assessments.
If you also want to use Cost Object Controlling, you need to be able to allocate the
overhead costs to sales orders and other cost objects.
The advantage of activity type allocation is that it takes account of both quantity
and value flows. The required activity quantities are specified in routings and used
for product cost planning and allocation to cost objects.
Activity types can also be consumed by cost centers and internal orders. When
activity input planning is performed, the quantity of activities that other controlling
objects have planned to consume shows up on the sender cost center as the
scheduled quantity. You can use the plan reconciliation function to adjust the
planned activity quantities to the scheduled activity quantities.
After cost and activity planning is complete, the system can calculate activity
prices by dividing the plan costs by the planned activity output quantities. If more
than one activity is provided by a cost center, you must first apportion the costs to
the different activity types using equivalence numbers or the splitting tool.
2010 © 2010 SAP AG. All rights reserved. 121 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Figure 62: Assigning Planning Methods to Controlling Methods (2)
More detailed planning methods provide far more information about costs, activity
outputs, and operating rates.
In order to include the operating rate of a cost center in the analysis of actual
costs, the planning process should classify planned costs and activity input as
either activity-independent or activity-dependent costs. The system needs this
information to calculate the target costs. A change in the operating rate for an
activity type will result in a changed value for target costs. The operating rate
represents the actual activity quantity of an activity type in a period divided by the
planned activity quantity of an activity type.
Target Costs = Planned Fixed Costs + Planned Variable Costs x Operating Rate.
Target costs are costs that are expected for a certain operating rate. They form
the basis of the target/actual cost comparison, in addition to the plan/actual cost
comparison. Plan cost values are statistical values that do not take into account
changes to operating rates. Target costs, however, are dynamic values that change
continuously dependent on the activity types. As a result, these values provide
much more information regarding the calculation of the operating rate by a cost
center.
These planning methods are used to enable flexible marginal costing.
122 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Exercise 6: Planning in Cost Center
Accounting
Exercise Objectives
After completing this exercise, you will be able to:
• Use the planning tools and see how certain information is planned in master
data records
Business Example
To be able to forecast costs and revenues, your enterprise will use the planning
tools to enter planning data in the SAP system. This planning data will be used for
later plan/actual comparisons, to see how different responsibility areas perform.
These comparisons will also be used to control and monitor processes and enable
you to make adjustments or corrections if variances from the plan occur.
You want to examine different planning functions in Cost Center Accounting and
learn about some of the options for planning cost center activity inputs and outputs.
Task 1:
For cost and activity input planning , use the SAPALL planner profile. Plan the
primary costs by entering planning data for the cost elements that are to be used
for posting the service or material consumption as actual values.
1. Plan costs of 31500 for purchased services for cost element 417000 and
costs of 90000 for salaries for cost element 430000 on your cost center
CONS-## . Create the plan for the periods 1to 12 of the current fiscal year.
Use version 0. Allow these amounts to be distributed in equal amounts to the
individual accounting periods. Save the plan data.
2. Plan the direct labor cost element 420000 for the amount of 9600 and the
salaries - base wages cost element 430000 for the amount of 75000 on your
cost center EDUC-## . Enter periods 1to 12 and the current fiscal year.
Use version 0. Distribute this amount evenly across the accounting periods.
Save the plan data.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 123 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Task 2:
For activity type planning , enter a plan for your cost center and the related
activity types in order to define a measurable activity output quantity. Plan the
price and the plan quantity. Distribute all the entered quantities evenly across
the individual periods.
1. Plan the junior consultant hours to be provided by your consulting cost center
CONS-## using the activity type JCON## . The planned activity quantity is
1500 hours and the fixed price is 60 per unit. Use equivalence number 1.
2. Plan the senior consultant hours to be provided by your consulting cost center
CONS-## using the activity type SCON## . The planned activity quantity is
600 hours and the fixed price is 100 per unit. Use equivalence number 1.
3. Plan the activity type TRAI## as activity output for your training cost center
EDUC-## . Enter a planned activity quantity of 1200 hours and a fixed price
of 90 per unit. The equivalence number should be 1.
Task 3:
Plan activity-dependent costs.
1. In order to reflect that some costs will only be incurred by a cost center if
certain activity types are produced by that cost center, you need to plan those
costs as activity-dependent. Plan these costs as variable costs if they are
dependent on the output quantity of this activity type. Plan these costs as
fixed costs if they are not dependent on the activity quantity.
For cost center CONS-## , plan costs dependent on the activity type
JCON## , namely operating supplies (cost element 403000 ) at a fixed price
of 3000 and variable price of 9000 , as well as company car costs 475000 at a
fixed price of 15000 and variable price of 9000 .
Task 4:
Plan the activity input.
1. Specify that the training cost center EDUC-## uses consultants to hold some
of its training courses. You therefore plan the utilization of 210 hours of
activity type JCON## and 90 hours of activity type SCON## from your
consultant cost center CONS-## .
Note: Enter the plan data in the layout for activity input planning
(1-102 ). Select Next Layout to switch to layout 1-102. Note that the
activity provided by the consultant cost center that the training cost
center wants to use is not dependent on the activity quantity output
by the training cost center. It is therefore activity-independent. Make
sure the Activity Type field is blank.
Continued on next page
124 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Task 5:
Execute a report for the planning overview.
1. Execute the Cost Centers: Planning Overview report for periods 1to 12 of
the current fiscal year and plan version 0. Run the report to view in detail
the effect of the planning steps on the service cost center CONS-## . Review
the prices.
Hint: Scroll through the report to see the activities planned for the
selected cost center.
Task 6:
Calculate the plan prices automatically.
Note: After the activity types have been planned on a cost center, the costs
that are expected to arise in connection with the planned activity output
should be planned in accordance with the planned activity quantities.
Activity-independent planned costs are coded so that the price of the
individual activity types can be calculated. By contrast, activity-dependent
planned costs are included only in the price of the corresponding activity
type. The result of price calculation is the price per activity unit for each
activity type.
The coding of activity-independent costs to the activity types is known
as splitting and can be done on the basis of a number of criteria. In our
example, we use equivalence numbers .
Hint: For more accuracy, the system can also calculate a price for a larger
activity quantity, for example, a price per 100 hours.
1. Execute automatic plan price iteration for your consulting and training cost
centers. Use your cost center group CENTERS-## for periods 1to 12 in the
current fiscal year. Choose No Business Processes as well as Test Run and
Detail Lists from the processing options.
Compare your results to the manually planned prices (from the exercise on
activity type planning). Make a note of the plan activity prices calculated
manually and automatically. If your automatically planned prices are
acceptable, post the new prices.
The business processes should be excluded from this price calculation.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 125 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Activity Type/Cost
Center
Manual Price Automatic Price
SCON## / CONS-##
JCON## / CONS-##
TRAI## / EDUC-##
126 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Solution 6: Planning in Cost Center
Accounting
Task 1:
For cost and activity input planning , use the SAPALL planner profile. Plan the
primary costs by entering planning data for the cost elements that are to be used
for posting the service or material consumption as actual values.
1. Plan costs of 31500 for purchased services for cost element 417000 and
costs of 90000 for salaries for cost element 430000 on your cost center
CONS-## . Create the plan for the periods 1to 12 of the current fiscal year.
Use version 0. Allow these amounts to be distributed in equal amounts to the
individual accounting periods. Save the plan data.
a) Choose Accounting → Controlling → Cost Centers 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 CONS-##
Cost Element 417000
to 430000
c) Choose Form-Based . Select the Overview Screen from the application
toolbar.
d) In the Plan Fixed Costs column, enter 31500 and 90000 . In the
Distribution Key column next to the value for the plan fixed costs, enter
1. Choose Post .
e) Remain in the Change Cost Element/Activity Input Planning: Initial
Screen for the next exercise.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 127 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
2. Plan the direct labor cost element 420000 for the amount of 9600 and the
salaries - base wages cost element 430000 for the amount of 75000 on your
cost center EDUC-## . Enter periods 1to 12 and the current fiscal year.
Use version 0. Distribute this amount evenly across the accounting periods.
Save the plan data.
a) Enter the following data:
Field Value or Action
Version 0
From Period 1
To Period 12
Fiscal Year Current fiscal year
Cost Center EDUC-##
Cost Element 420000
to 430000
b) Select the Overview Screen from the application toolbar.
c) In the Plan Fixed Costs column, enter 9600 and 75000 . In the
Distribution Key column next to the value for the plan fixed costs, enter
1. Choose Post .
Continued on next page
128 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Task 2:
For activity type planning , enter a plan for your cost center and the related
activity types in order to define a measurable activity output quantity. Plan the
price and the plan quantity. Distribute all the entered quantities evenly across
the individual periods.
1. Plan the junior consultant hours to be provided by your consulting cost center
CONS-## using the activity type JCON## . The planned activity quantity is
1500 hours and the fixed price is 60 per unit. Use equivalence number 1.
a) Choose Accounting → Controlling → Cost Centers Accounting →
Planning → Activity Output/Prices → 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 CONS-##
Activity Type JCON##
c) Select the Overview Screen from the application toolbar. Enter the
following data:
Field Value or Action
Plan Activity 1500
Distribution Key 1
Fixed Price 60
EquiNo 1
d) Choose Post . Remain in the Change Activity Type/Price Planning:
Initial Screen for the next exercise.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 129 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
2. Plan the senior consultant hours to be provided by your consulting cost center
CONS-## using the activity type SCON## . The planned activity quantity is
600 hours and the fixed price is 100 per unit. Use equivalence number 1.
a) On the Change Activity Type/Price Planning: Initial Screen , enter the
following data:
Field Value or Action
Cost Center CONS-##
Activity Type SCON##
b) Select the Overview Screen from the application toolbar. Enter the
following data:
Field Value or Action
Plan Activity 600
Distribution Key 1
Fixed Price 100
c) Make sure that 1is entered in the Equivalence Number field.
d) Choose Post .
Remain in the Change Activity Type/Price Planning: Initial Screen
for the next exercise.
Continued on next page
130 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
3. Plan the activity type TRAI## as activity output for your training cost center
EDUC-## . Enter a planned activity quantity of 1200 hours and a fixed price
of 90 per unit. The equivalence number should be 1.
a) On the Change Activity Type/Price Planning: Initial Screen , enter the
following data for activity type 1421:
Field Value or Action
Cost Center EDUC-##
Activity type TRAI##
b) Select the Overview Screen from the application toolbar.
c) Enter the following data:
Field Value or Action
Plan Activity 1200
Distribution Key 1
Fixed Price 90
d) Choose Post .
Task 3:
Plan activity-dependent costs.
1. In order to reflect that some costs will only be incurred by a cost center if
certain activity types are produced by that cost center, you need to plan those
costs as activity-dependent. Plan these costs as variable costs if they are
dependent on the output quantity of this activity type. Plan these costs as
fixed costs if they are not dependent on the activity quantity.
For cost center CONS-## , plan costs dependent on the activity type
JCON## , namely operating supplies (cost element 403000 ) at a fixed price
of 3000 and variable price of 9000 , as well as company car costs 475000 at a
fixed price of 15000 and variable price of 9000 .
a) Choose Accounting → Controlling → Cost Center Accounting →
Planning → Cost and Activity Inputs → Change .
b) Enter the following data:
Field Value or Action
Version 0
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 131 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Field Value or Action
From Period 1
To Period 12
Fiscal Year Current fiscal year
Cost Center CONS-##
Activity Type JCON##
Cost Element 403000
to 475000
c) Choose Form-Based . Select the Overview Screen from the application
toolbar.
d) Enter the following data:
Field Value or Action
Under 403000: Plan Fixed
Costs
3000
Distribution Key 1
Plan Variable Costs 9000
Distribution Key 1
Under 475000: Plan Fixed
Costs
15000
Distribution Key 1
Plan Variable Costs 9000
Distribution Key 1
e) Choose Post .
f) Remain in the Change Cost Element/Activity Input Planning: Initial
Screen for the next exercise.
Continued on next page
132 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Task 4:
Plan the activity input.
1. Specify that the training cost center EDUC-## uses consultants to hold some
of its training courses. You therefore plan the utilization of 210 hours of
activity type JCON## and 90 hours of activity type SCON## from your
consultant cost center CONS-## .
Note: Enter the plan data in the layout for activity input planning
(1-102 ). Select Next Layout to switch to layout 1-102. Note that the
activity provided by the consultant cost center that the training cost
center wants to use is not dependent on the activity quantity output
by the training cost center. It is therefore activity-independent. 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 .
b) Enter the following data:
Field Value or Action
Cost Center EDUC-##
Activity Type This field must be blank.
Sender Cost Center CONS-##
Sender Activity Type JCON##
To SCON##
c) Select the Overview Screen from the application toolbar.
d) Enter the following data:
Field Value or Action
Plan Fixed Consumption 210 for JCON##, 90 for SCON##
Distribution Key 1
e) Choose Post .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 133 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Task 5:
Execute a report for the planning overview.
1. Execute the Cost Centers: Planning Overview report for periods 1to 12 of
the current fiscal year and plan version 0. Run the report to view in detail
the effect of the planning steps on the service cost center CONS-## . Review
the prices.
Hint: Scroll through the report to see the activities planned for the
selected cost center.
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting → Planning
Reports → Cost Centers: Planning Overview .
b) Enter the following data:
Field Value or Action
Cost Center CONS-##
Fiscal Year Current fiscal year
Period 1
To 12
Version 0
c) Execute the report.
d) In the Activity Type overview area, select an activity type and, in the
application toolbar above, choose the Display Activity Price icon.
Continued on next page
134 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Task 6:
Calculate the plan prices automatically.
Note: After the activity types have been planned on a cost center, the costs
that are expected to arise in connection with the planned activity output
should be planned in accordance with the planned activity quantities.
Activity-independent planned costs are coded so that the price of the
individual activity types can be calculated. By contrast, activity-dependent
planned costs are included only in the price of the corresponding activity
type. The result of price calculation is the price per activity unit for each
activity type.
The coding of activity-independent costs to the activity types is known
as splitting and can be done on the basis of a number of criteria. In our
example, we use equivalence numbers .
Hint: For more accuracy, the system can also calculate a price for a larger
activity quantity, for example, a price per 100 hours.
1. Execute automatic plan price iteration for your consulting and training cost
centers. Use your cost center group CENTERS-## for periods 1to 12 in the
current fiscal year. Choose No Business Processes as well as Test Run and
Detail Lists from the processing options.
Compare your results to the manually planned prices (from the exercise on
activity type planning). Make a note of the plan activity prices calculated
manually and automatically. If your automatically planned prices are acceptable, post the new prices.
The business processes should be excluded from this price calculation.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 135 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 4: Planning in Management Accounting AC050
Activity Type/Cost
Center
Manual Price Automatic Price
SCON## / CONS-##
JCON## / CONS-##
TRAI## / EDUC-##
a) Choose Accounting → Controlling → Cost Center Accounting →
Planning → Allocations → Price Calculation .
b) Select Cost Center Group . In the Cost Center Group field, enter
CENTERS-## .
Choose No Business Processes .
c) Enter the following data:
Field Value or Action
Version 0
Period 1
To 12
Fiscal Year Current fiscal year
d) Choose Test Run and Detail Lists .
e) Choose Execute .
If your prices were determined correctly (that is, the system did not issue any error messages and there are no major variations from the
manual prices), choose Post .
Choose Continue to skip the message and exit the transaction.
136 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Planning Options in Overhead Cost Controlling
Lesson Summary
You should now be able to:
• Explain the purpose of planning statistical key figures and the methods used
to do this
• 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 some simple and complex planning options
2010 © 2010 SAP AG. All rights reserved. 137 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit Summary AC050
Unit Summary
You should now be able to:
• Work out how the planning functions in the SAP system can support the
planning processes in your company
• Explain how different plan versions can be used
• Name the three cost accounting methods used in Management Accounting
• Explain the purpose of planning statistical key figures and the methods used
to do this
• 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 some simple and complex planning options
138 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Librería ERP https://libreriaerp.com/us [email protected] Librería ERP https://libreriaerp.com/us [email protected]

Unit5
Integrated Planning Process in
Management Accounting
Unit Overview
This unit explains the various aspects of an integrated planning process. Planning
data can be created by automatic planning functions and transferred to other
modules, where it can serve as the basis for follow-on planning. This enables you
to align different plans more closely and saves a considerable amount of effort
compared to manual planning activities.
Unit Objectives
After completing this unit, you will be able to:
• Name the application components in the integrated planning cycle
• Explain the effects of the individual application components in the integrated
planning cycle
• List the master data used in Product Cost Controlling and explain the
purpose of this data
• Explain the use of the integrated planning cycle in the service industry
• Name the additional characteristics and functions that are available when
activity-based costing is used
• Describe the template allocation method.
Unit Contents
Lesson: Integrated Planning Cycle ...........................................140
Exercise 7: Integrated Planning Cycle...................................157
Lesson: Integrating Template Allocation of Activities and Processes....163
Exercise 8: Integrating Template Allocation of Activities and
Processes ...................................................................171
2010 © 2010 SAP AG. All rights reserved. 139 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Lesson: Integrated Planning Cycle
Lesson Overview
This lesson describes integrated planning from a Management Accounting
perspective. We will start with a sales plan and use this as the basis for developing
a comprehensive business plan. A lot of the planning data does not have to be
entered by controllers, but can be transferred by integration from other components
such as Profitability Analysis, Profit Center Accounting, and Product Costing.
Lesson Objectives
After completing this lesson, you will be able to:
• Name the application components in the integrated planning cycle
• Explain the effects of the individual application components in the integrated
planning cycle
• List the master data used in Product Cost Controlling and explain the
purpose of this data
• Explain the use of the integrated planning cycle in the service industry
Business Example
Having discussed planning in Management Accounting (with various planning
and allocation methods), the focus is now on planning with integration
(integrated planning cycle). This includes planning in Management Accounting,
reconciliation with the planning of activity output processes (such as services), as
well as SAP ERP Human Capital Management and Asset Accounting. Exactly
how these integrated planning tools are used depends on the industry and the
modules available.
Integrated Planning Cycle: Overview and General
Process
The integrated planning cycle can begin with a sales plan. If you are using the
Logistics component and the Sales Information System (SIS = part of the Logistics
Information System LIS) you can plan the sales quantities for the following year
at product or product group level. Management, on the other hand, tends to use
Profitability Analysis (CO-PA), where future sales quantities and revenues are
planned at market segment level. If you use both planning options, you can
transfer the plans back and forth between VIS and CO-PA so that the data can be
reconciled accordingly.
140 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
Figure 63: Integrated Planning Cycle with Service Providers
If you are using Sales and Operations Planning (SOP), you can transfer the sales
quantities planned in the previous step to this tool. If you use routings for your
products or services, you can reconcile the resource capacity in a very general way
at work center level. If the resources you have do not meet your requirements,
you need to procure additional resources or change the routing. It is essential for
Cost Center Accounting to know the activity type requirements. You can use SOP
to derive these requirements, which are shown as scheduled activity quantities in
Cost Center Planning
If you do not use SOP but want to collect the activity requirement for the
“manufacturing and service sector” centrally and transfer it automatically to Cost
Center Accounting, you could consider using plan-integrated internal orders or
projects to generate the scheduled activity quantities.
Once you have derived the scheduled activity quantities, you can use “plan
reconciliation” in Cost Center Planning to generate the plan activity quantities
based on the scheduled activity quantities (requirements from SOP and from other
cost centers). Alternatively, you can enter the plan activity quantities manually.
You can then plan the overhead costs for cost centers and internal orders based on
these plan activity quantities. You can transfer a large number of plan values from
SAP ERP Human Capital Management, Asset Accounting, and plan-integrated
internal orders and projects to Cost Center Planning to keep the amount of manual
effort required to a minimum. Planning in Overhead Cost Controlling is concluded
when cost-based plan prices are calculated for the activities (“price calculation”).
The calculated plan prices are then used in Product Cost Planning to calculate
the cost of manufacturing the planned products and providing the services. As
well as entering the quantity structure manually, you can also use prepared
2010 © 2010 SAP AG. All rights reserved. 141 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
non-logistic quantity structures (unit costings and costing models in Easy Cost
Planning (ECP)) as well as logistic quantity structures (networks, BOMs, and
routings) in the calculation.
Manufacturing costs calculated in this way are then transferred to Profitability
Analysis, where they are shown (with the possible addition of other values)
as future sales costs. Seen as a whole, this planning in CO-PA constitutes the
profitability plan for the enterprise.
If you are unhappy with the planning results, you can make adjustments to the
original sales plan and then run through the integrated planning cycle again. This
cycle can be repeated until all aspects of the business plan are completed.
Using the Application Components in the Planning
Cycle
Profitability Analysis planning enables you to plan sales, revenue, and profitability
data for any profitability segments. This enables the entire planning process of an
enterprise to be shown according to business requirements.
Sales and profit planning is usually an integrated process comprising different
roles in Management Accounting, such as Sales Manager, Regional Manager, and
Sales Executive. Sales and profit planning uses different approaches too, including
top-down planning or decentralized bottom-up planning.
The planning tools for Profitability Analysis provide everyone involved in the
planning process with a standardized planning interface. This interface enables
smooth collaboration between power users , for example, the central planner
who monitors and adjusts the planning process and occasional users who report
plan values from time to time.
To copy sales planning (used in the planning cycle) from Profitability Analysis
to profit planning, you have to match the planned revenues and the cost of goods
manufactured that were generated on the basis of the plan. You can use the
valuation function to do this.
Valuation in Profitability Analysis can use the product costing results to calculate
the cost of goods manufactured and cost of goods sold. The planned product
quantities are multiplied by the standard production costs and transferred to
Profitability Analysis according to cost element. This enables you to include fixed
and variable costs in the individual contribution margins.
142 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
Figure 64: Integrated Planning - Planning in Profitability Analysis
As the contents and level of detail of individual plans can vary according to role
and area of responsibility, the planning framework enables you to structure your
plan by planning level and content and assign these to the individual responsible.
The planning hierarchy is displayed in a tree structure. You can execute nearly
all the planning functions directly from the planning framework, from modeling
the planning process to monitoring planning tasks and entering planning data
manually.
To support the individual steps of the planning process, the planning tools for
Profitability Analysis provide numerous planning functions and planning aids that
you can use to create and change your planning data as you wish. These include
both automatic functions that you can use to generate and change data for an entire
plan, and functions for entering planning data manually. Alternatively, you can
enter planning data in Microsoft Excel and then reload it to the SAP system.
2010 © 2010 SAP AG. All rights reserved. 143 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Figure 65: Top Down Distribution of Plan Values
With top-down distribution , data planned at one level in Profitability Analysis is
distributed to other levels. Distribution takes place on the basis of reference data.
This can be planning data or actual data from Profitability Analysis.
One example of top-down distribution is the planning of values at product group
level and the distribution of these values to the individual products in that group.
Another example is the planning of values at individual product levels, and the
distribution of these values to the plants where the products are sold.
Plan values can be distributed on the basis of the reference data by period or
across periods. With distribution across periods, the distribution percentages for
the receivers are adjusted across the periods.
When performing top-down distribution, it is necessary to specify the fields in the
reference data whose values should be used as the distribution basis .
In the example from the figure above, revenue for the product group is distributed
to the individual products belonging to this group. The values in the Sales
Quantity field serve as reference data. The value 100 is used as a distribution base
for product P1, and 200 is used for product P2.
144 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
Figure 66: Cost Center Plan with Integration
If you have transferred scheduled activity quantities from earlier steps in the
process, you can use the “plan reconciliation” function to calculate the planned
activity quantities for the cost centers. The cost center manager can change the
calculated quantities manually.
Figure 67: Sources for Plan Values
2010 © 2010 SAP AG. All rights reserved. 145 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
The costs are then planned in accordance with the scheduled activity quantities.
However, the cost center manager does not need to plan lots of costs manually, but
can simply copy them from plans in other components. You can copy planning
data from the following components:
• Human Capital Management (HCM)
• Asset Accounting (FI-AA)
• Plan-integrated internal orders
• Plan-integrated WBS elements
The personnel costs planned in Personnel Administration can be transferred to the
corresponding cost centers. Integrated planning between Cost Center Accounting
and Human Capital Management enables you to plan personnel costs for target
wages, payroll results, or basic pay, and then transfer these costs to Cost Center
Accounting.
Integrated planning between Cost Center Accounting and Asset Accounting
enables you to transfer periodic depreciation and interest (on the tied-up capital)
to primary cost planning in Cost Center Accounting.
Figure 68: Planning and Costing on Internal Orders and Projects
146 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
There are three different cost planning levels for planning internal orders:
• Overall planning is the simplest level for planning order costs. You can
estimate overall and annual values for each order independently of cost
elements.
• If detailed information is available for an internal order, you can use
primary/secondary cost and revenue planning . For manual planning
purposes, this comprises the planning of primary costs, activity inputs, and
revenues. If the order is a plan-integrated order, you can perform a plan
credit using a settlement to a cost center. Note that integrated planning is
only possible with this planning option.
• With unit costing, you can perform more detailed planning at individual
resource level than you can with cost elements.
With integrated planning for internal orders, you include cost element and
activity input planning for an internal order in cost center or business process
planning. When you plan activity inputs for integrated internal orders, the
scheduled activities are posted to the sender cost center or the sender process. In
addition, planned settlements and periodic repostings of integrated orders to cost
centers/processes are allowed. This also applies to plan allocations of indirect
activities, assessment and distribution of cost centers/processes to plan-integrated
orders. Integrated planning is activated in the plan version.
Costing of Products and Services
Figure 69: Costing of Goods Manufactured and Goods Sold
2010 © 2010 SAP AG. All rights reserved. 147 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Logistics master data can also be used when calculating the cost of manufacturing
products and providing services. Deriving information from this master data often
saves you from having to enter data manually in Management Accounting and
makes it quick and easy to produce costings. The costing results can be used
to update prices in the material master record as well as plan values on cost
objects. This master data is also important for the integration between Materials
Management, Sales, Management Accounting, and other components.
Figure 70: Logistics Master Data
Use the following master data for integrated planning:
• Material master
• BOMs
• Work centers
• Routings
The data shown in the figure – material master, BOM, work center, and routing –
is used as a quantity structure to enable you to enter costings in the SAP system
quickly and easily.
The material master is used to represent raw materials, assemblies, products,
and services.
ABOM is a list of the components used in an assembly or product. In Plant
Maintenance and Customer Service Management this list can show the parts that
may need to be replaced when servicing an installation.
148 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
Awork center is the physical location where operations are performed. When
the master record for a work center is created, it is linked to the cost center and
its various activity types. This link allows you to access the price for the activity
type. This price is used to valuate the labor or machine time that is made available
by the cost center for production or service provision.
The routing describes the sequence of work steps that are necessary to create
the product or provide the service. If the operation is in-house, it takes place
on a work center. By assigning it to a cost center, the activity types for the cost
center are consumed by the operation.
This means that the effective working time for the operation is calculated from
the default value and the work center formula. The working time can then be
transferred as a scheduled activity quantity to Cost Center Planning.
You can deploy various tools for Product Cost Planning, depending on the
Logistics data available to you for costing:
• Product costing with quantity structure
• Product costing without quantity structure
• Base object and simulation costing
For product costing with quantity structure , costs are calculated for a material
via automatic derivation of the quantity structure from bills of material and
routings or the master recipe, or from network resources. Under certain conditions,
the results can be updated in the standard price field or in another price field in the
material master record.
For product costing without quantity structure , the costs for a material are
determined without automatic derivation of the quantity structure. When you
perform the costing, you must either enter the quantity structure manually or copy
it from a template. Under certain conditions, the results can be updated in the
standard price field or in another price field in the material master record.
For base object and simulation costing , costs are calculated for an abstract object
known as a the base planning object . When you perform the costing, you enter
the quantity structure manually or copy it from a template. The result is a costed
quantity structure that you can use in subsequent costings under the name of the
base planning object.
2010 © 2010 SAP AG. All rights reserved. 149 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Every cost estimate is controlled by a costing variant . Depending on the tool
you use, this can determine:
• The period of validity of the cost estimate (costing date from/to)
• The selection strategy for the bill of material and the routing (quantity
structure date)
• The valuation date for the material components and activities
• a transfer control that excludes existing costing estimates for materials from
lower-level codes from being included in the costing once again. It can
therefore reduce the time required to perform the costing.
In a costing, all resources with quantities and values that are required to make the
product or provide the service are listed.
Figure 71: Cost Estimate Item Types (1)
Here, every item is shown with a special item category that mirrors the integration
of the resource. If you enter the resources manually, the system can identify the
type of resource from this item category and derive the corresponding data from
the system by integration.
150 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
Figure 72: Cost Estimate Item Types (2)
Vconstitutes a special category, since it allows an item to be entered without
integration (and thus without validating the master data).
Gand Xare also special categories, since they are not entered manually but
always determined automatically by the system.
Figure 73: Cost Estimate
The costing results can be saved and displayed as an itemization, a cost element
itemization, or a cost component split.
The itemization contains detailed information about the origin of the costs, such
as the quantities and prices of the materials and internal activities used.
2010 © 2010 SAP AG. All rights reserved. 151 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Cost element itemization groups the individual items by their cost elements.
The cost elements are
• derived from material account determination in the case of activities and
materials
• derived from master records in the case of activity types or processes.
The cost component split groups the cost elements into cost components. When
a multilevel structure is costed, the cost component split is rolled up so that the
original identity of the costs is retained for analysis even at the highest costing
level.
Figure 74: Overhead Calculation
You can use overhead costing to take overhead costs (such as energy or storage
costs) into account when calculating the cost of manufacturing a product or providing a service.
You can use a costing sheet to map your own overhead cost logic. If you use
the traditional method, you add the overhead costs to the reference object as a percentage or quantity rate.
For a material cost estimate, you can derive the costing sheet using the valuation
variant of a costing variant.
When you calculate overhead costs, the system chooses Gas the item category.
The overhead costs are updated using special cost elements.
The standard system contains predefined costing sheets. You can also create your
own costing sheets as required.
152 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
Figure 75: Updating Prices in the Material Master
If you use a corresponding costing variant, you can update the result of the cost
estimate as the new standard price in the material master, if you wish. To do this,
you have to mark the cost estimate and then choose update . This can revaluate
the stock and generate a corresponding revaluation posting in FI.
The following conditions must be fulfilled before a standard cost estimate can
be marked or released:
• Standard cost estimate must be free of errors (status CT - costed without
errors).
• Marking and release must be permitted. The company code and periods in
which a standard cost estimate can be marked with a particular valuation
variant are specified in the marking authorization. The authorization should
be set up once per period by the employee responsible. If you mark a
standard cost estimate, the results are updated in the material master record
as the future standard price.
When you release the standard cost estimate, the future price is updated as the
current standard price.
You can only release a standard cost estimate once per period, unless you delete
the previously released standard cost estimate (using a special program) from the
database. You should therefore always check that the standard cost estimate is
correct before you release it for a product. Special reports are available for this in
the Information System for Product Cost Planning.
2010 © 2010 SAP AG. All rights reserved. 153 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Figure 76: Transferring Costing Results to Profitability Analysis
You have started the integrated planning cycle in Profitability Analysis by
planning the future sales quantities and sales revenues. Based on this planning,
you have calculated the overhead costs, the resulting prices for the activity types,
the manufacturing costs for your goods, and the cost of providing services.
Figure 77: Transferring the Cost Component Split to Profitability Analysis
By transferring these cost estimates, you compare future cost of sales with future
revenues to derive a profitability plan from the sales plan.
154 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
To do this, go to Customizing and assign value fields in Profitability Analysis to
cost components for the cost of goods manufactured.
Hint: The cost components from the material cost estimate can be used
later in Profitability Analysis to show the manufacturing costs for your
goods and the cost of providing services in greater detail, thus enabling
more precise contribution margin accounting.
Integrated Planning in Profit Center Accounting
To enable internal areas of responsibility to be controlled and valuated effectively, you should restrict profit center planning to those factors that are measurable and
that can be influenced directly. The employees responsible for the profit center can only make use of the planning data if they are in a position to influence the costs, revenues, and stocks in their area. Since the organizational structure and scope of responsibility areas in your company depend mainly on individual factors, the
plan should be as flexible and as multidimensional as possible.
Figure 78: Integrated Planning in Profit Center Accounting
Profit center planning is therefore an integral part of the overall enterprise
planning. Profit centers illustrate the integrated nature of enterprise planning very well since the planning data is essentially generated by other applications and
supplemented or modified in the profit centers. Profit center planning is part of
short-term business planning that covers one fiscal year.
2010 © 2010 SAP AG. All rights reserved. 155 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Profit center planning involves two steps. First, the planning data is transferred to
the profit center from the following applications: Cost Center Accounting, Internal
Orders, Profitability Analysis, and Product Cost Planning. The planning data can
then be modified directly in the profit centers.
You can use different plan versions to account for changes during the planning
process, or to enable the use of different planning scenarios for a given timeframe.
Menu Paths for Integrated Planning
Action Menu path
Check activity prices Accounting → Controlling → Cost Center
Accounting → Information System → Reports
for Cost Center Accounting → Prices →
Cost Centers: Activity Prices
Create cost estimate with quantity structure
Accounting → Controlling → Product Cost
Controlling → Product Cost Planning → Material Costing → Cost Estimate with Quantity Structure → Create
Update the standard price using the costing result
Accounting → Controlling → Product Cost
Controlling → Product Cost Planning → Material Costing → Price Update
156 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
Exercise 7: Integrated Planning Cycle
Exercise Objectives
After completing this exercise, you will be able to:
• Create a base object costing and a simulation costing
• Show integration using the costing results.
Business Example
Since your company plans to offer products and provide services based on market
demand, a decision was made to start the planning cycle in Profitability Analysis.
The resulting sales plan (business plan) can result in material requirements in
Logistics and activity requirements for cost centers. Activity and cost planning
was performed on the cost centers to match their activity requirements and the
cost-based plan prices were calculated. Based on these results, it is now possible
to create a standard cost estimate for services in the coming periods.
Task 1:
Check the fixed and variable activity prices.
1. Before a standard cost estimate is created, you should check the price that
was calculated for one of the activities required for the services.
Review the planned activity price for activity type 1466 on the SUPPORT
cost center. Make a note of the fixed and variable planned prices for this
activity.
Task 2:
After cost center planning, you would like to calculate the costs involved in
providing one hour of consultation for a customer. To do this, create a standard
cost estimate, taking the planned activity prices into account.
Depending on how your system is integrated, the planned use of the cost estimate,
and the initial data available, you can choose between three costing tools: Base
object costing, material cost estimate without quantity structure, and material cost
estimate with quantity structure (BOM, routing, or network).
Choose base object costing for this task.
1. Create a base planning object for the service R-SERVICE-## .
2. For the cost estimate header data, enter: Base Unit of Measure HR, Cost
Element 476300 , Company Code 1000 , and the name Consulting hour
##. Choose Enter .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 157 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Create the cost estimate with costing variant PG and lot size 1.
3. Enter the following costing items:
Internal activity JCON## from cost center CONS-##, 0.7 hours
Internal activity SCON## from cost center CONS-##, 0.3 hours
Internal activity 1466 from cost center SUPPORT, 0.1 hours
Insert a totals row.
After this, you can save the base planning object. You have now calculated
the costs for one hour of a normal consultation and can use this cost estimate
again as a template for future cost estimates.
4. Display the result of the cost estimate in Reporting.
Were the prices that you calculated earlier in cost center planning using price
calculation actually used for the activity types in cost center CONS-##?
158 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
Solution 7: Integrated Planning Cycle
Task 1:
Check the fixed and variable activity prices.
1. Before a standard cost estimate is created, you should check the price that
was calculated for one of the activities required for the services.
Review the planned activity price for activity type 1466 on the SUPPORT
cost center. Make a note of the fixed and variable planned prices for this
activity.
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting → Prices
→ Cost Centers: Activity Prices .
b) Enter the following data:
Field Value or Action
Cost Center(s) SUPPORT
Activity Type(s) 1466
Version 0
Fiscal Year Current fiscal year
From Period 1
To 12
c) Choose Execute .
The fixed planned activity price is _____. The variable planned activity
price is _____.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 159 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Task 2:
After cost center planning, you would like to calculate the costs involved in
providing one hour of consultation for a customer. To do this, create a standard
cost estimate, taking the planned activity prices into account.
Depending on how your system is integrated, the planned use of the cost estimate,
and the initial data available, you can choose between three costing tools: Base
object costing, material cost estimate without quantity structure, and material cost
estimate with quantity structure (BOM, routing, or network).
Choose base object costing for this task.
1. Create a base planning object for the service R-SERVICE-## .
a) Choose Accounting → Controlling → Product Cost Controlling →
Product Cost Planning → Reference and Simulation Costing → Create
Base Planning Object .
b) Enter R-SERVICE-## as the name of the base planning object and
choose Enter .
2. For the cost estimate header data, enter: Base Unit of Measure HR, Cost
Element 476300 , Company Code 1000 , and the name Consulting hour
##. Choose Enter .
Create the cost estimate with costing variant PG and lot size 1.
a) Enter the following data:
Field Value or Action
Base Unit of Measure HR
Cost Element 476300
Company Code 1000
Name & Description Consulting hour ##
b) Choose Enter .
c) In the Create Cost Estimate dialog box, enter PG as the Costing Variant
and 1for the Lot Size . Choose Enter .
3. Enter the following costing items:
Internal activity JCON## from cost center CONS-##, 0.7 hours
Internal activity SCON## from cost center CONS-##, 0.3 hours
Internal activity 1466 from cost center SUPPORT, 0.1 hours
Insert a totals row.
Continued on next page
160 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrated Planning Cycle
After this, you can save the base planning object. You have now calculated
the costs for one hour of a normal consultation and can use this cost estimate
again as a template for future cost estimates.
a) Enter the following costing items:
Category Resource Plant/Activity Quantity
E CONS-## JCON## 0,7
E CONS-## SCON## 0,3
E SUPPORT 1466 0,1
S
b) Choose Enter to see the overall result.
c) Save the costing items and then the entire cost estimate.
4. Display the result of the cost estimate in Reporting.
Were the prices that you calculated earlier in cost center planning using price
calculation actually used for the activity types in cost center CONS-##?
a) Choose Product Cost Planning → Information System → Detailed
Reports → for Base Planning Object → Itemization .
b) Enter the name of your base planning object R-SERVICE-## and
choose Execute .
The average plan prices that were determined in the price calculation
actually were used across all the periods of the fiscal year for activity
types JCON## and SCON## in cost center CONS-##.
2010 © 2010 SAP AG. All rights reserved. 161 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Lesson Summary
You should now be able to:
• Name the application components in the integrated planning cycle
• Explain the effects of the individual application components in the integrated
planning cycle
• List the master data used in Product Cost Controlling and explain the
purpose of this data
• Explain the use of the integrated planning cycle in the service industry
162 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrating Template Allocation of Activities and Processes
Lesson: Integrating Template Allocation of Activities
and Processes
Lesson Overview
This lesson deals with the improvements made in traditional cost accounting
through the introduction of the template allocation method for activities and
processes. By assigning the template to a cost object you are in effect combining a
costing sheet with an overhead key. The template allocation method can therefore
be used to good effect in replacing overhead rates to some extent. Since the
template allocation method is particularly suitable for allocating activities and
processes according to their cause, as well as being automatic, the tool can be used
in all areas where overhead rates are considered either closely, or just vaguely
attributable to the processes that caused them. Virtually all cost accounting
objects, including processes themselves, can be receivers of activity and process
allocations via templates.
When used for planning, this tool functions in the same way as with actual
postings. The template allocation in an actual posting is a periodic transaction.
Lesson Objectives
After completing this lesson, you will be able to:
• Name the additional characteristics and functions that are available when
activity-based costing is used
• Describe the template allocation method.
Business Example
One of the aims of the enterprise is to assign overhead costs to cost objects and
market segments automatically, but at the same time according to cause. For
this reason, you want to use template allocation of processes and activity types
to improve the quality of Management Accounting.
Master Data in Activity-Based Costing (ABC)
Abusiness process describes a business transaction or series of actions that
consume resources. One or more organizational units of an enterprise can be
involved in a business process. You create business processes as master data
in the system.
2010 © 2010 SAP AG. All rights reserved. 163 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Figure 79: Process Master Data
The business process master record comprises a header and four main areas:
Basic data, organizational units, attributes, and allocation. The header contains
the business process ID number and description, the controlling area to which the
business process is assigned, and the validity period.
The Basic Data view contains the text descriptions, the name of the responsible
person, the item (node) of the process in the standard process hierarchy, the
company code and assigned business areas, the process currency (object currency),
and the assigned profit center. It also contains a field for the business process type.
This is used for standard allocation. In the last field, you can specify the template
needed for structured processes.
The Organization view contains fields for assigning the business process to a
plant, sales area (combination of sales organization, distribution channel, and
division), cost center, and cost center group.
In the Allocation view, you specify how the business process can be used in
allocations. It includes the unit of measure, the allocation cost element that is used
in process allocations, and the method (price indicator) used to calculate the unit
price for the business process.
A business process can be planned and posted in the same way as a cost center.
The same general principles that apply to a cost center with one activity type
apply here too.
164 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrating Template Allocation of Activities and Processes
Integrated Activity-Based Costing
In integrated activity-based costing, processes are used to collect costs for specific
activities that can then be passed on to a receiver object. They are integrated in
the operational value flow of the SAP system and can influence the inventory
valuation.
Costs are passed on to the process through the usual cost allocation methods
in Overhead Cost Controlling, as well as through direct postings from other
applications such as FI and MM. To allocate activities and other processes to the
processes under consideration, you can use a resource template that you enter
directly in the process master record.
Figure 80: Allocating Process Costs to Profitability Analysis
You can allocate process costs to Profitability Analysis using the standard cost allocation methods, but also by using a process template that you can find
automatically in Customizing for Profitability Analysis.
In Profitability Analysis (CO-PA), these process costs can be saved to their own
value fields and analyzed in Reporting.
2010 © 2010 SAP AG. All rights reserved. 165 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Figure 81: Allocating Process Costs to Cost Objects
You can pass on process costs to Cost Object Controlling by allocating the
process directly or by using a process template that you can find automatically in
Customizing for Product Cost Controlling. The main assignment characteristics
are the costing sheet and overhead key used for the cost estimate or the cost object.
The process costs are shown on the cost object with their own cost elements and
can be analyzed in Reporting.
If a balance remains on the process at the end of the period, this balance is treated
in the same way as the balance for a cost center during period-end closing: Actual
price calculation or assessment to Profitability Analysis. (Further information is
available in the lesson Period-End Closing in Overhead Cost Controlling).
Figure 82: Template Allocation Method
166 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrating Template Allocation of Activities and Processes
In the example above, you can see a template that is used to allocate a process,
numbered 300900, to a WBS element of a project. The allocation is dependent on
the number of WBS elements and network operations for the project. The idea
could have come from the assumption that work scheduling increases the more
complex the project structure becomes.
The template allocation method is the main tool for allocating processes and
activity types to cost objects and profitability segments. The template is a small
table with a defined formula that the system uses to automatically calculate the
correct plan and actual quantity of the correct processes and activity types to be
allocated to a particular receiver.
Figure 83: Function and Structure of a Template
You can access functions in a function catalog to define the formulas in the
template. You can add additional functions to the catalog in Customizing. In this
way, all the information in the SAP system is accessible, to enable you to define allocation formulas as close to the according to cause principle as possible.
In the best case scenario, the aim is to allocate overhead costs automatically , but
nevertheless as close to cause as would otherwise only be possible with direct
activity and process allocation.
2010 © 2010 SAP AG. All rights reserved. 167 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Activity-Based Costing: Push and Pull
With the push approach , the task is to distribute costs or quantities from a sender
perspective. The sender has costs, or activity quantities, or process quantities
that are allocated to the receiver according to a key. The quantities are irrelevant
in pure cost allocation. When allocating quantities, these are distributed with
a valuated price.
Figure 84: Push and Pull Approach
Allocations made using the push approach often lead to the sender being credited
in full. However, since the sender determines the quantities or costs to be
allocated, there is an implicit danger that inefficiency on the part of the sender is simply passed on to the receiver. Furthermore, only a limited number of keys (cost
drivers) are available for the standard allocation methods, and these keys may not
be sufficiently close to cause. This makes the search for the cause of variances and
inefficiency at a later stage more difficult.
With the pull approach , on the other hand, the task is to allocate costs or
quantities from a receiver perspective. Here, the receiver takes the quantity of
activities or processes that are actually required to perform a task. This means that
the receiver is debited exactly according to cause, whilst inefficiency and excess
capacity remain on the cost centers (for example, “idle-capacity costs”). The pull
approach involves only quantity-based cost allocations. As pure cost allocations,
these enable a more precise analysis to be performed.
Most allocations made using the pull approach do not lead to the sender being
credited in full. However, the receivers are then only debited with costs for which
they are actually responsible. The flexibility the template gives you when creating
168 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrating Template Allocation of Activities and Processes
allocation formulas (cost drivers) means that it should be possible to allocate
overhead costs according to cause. This improves the quality of Cost Object
Controlling.
Figure 85: Differences Between the Two Approaches
To summarize:
Push approach:
• Easy to implement
• Often merely cost flows, no quantity controlling
• Often inadequate overhead cost allocation according to cause due to limited
selection of allocation bases (cost drivers)
Pull approach:
• Strictly quantity-based cost allocation that also enables quantity controlling
• Wide selection of allocation bases (cost drivers) results in overhead cost
allocation according to cause
Many enterprises are increasingly trying to use the pull approach wherever the
previous push approach lead to considerable distortions in cost reporting in
Cost Object Controlling. This is particularly noticeable in the application of
overhead using the costing sheet. Since you can only use consumption costs
and consumption quantities for the cost objects as tracing factors there, it is
often impossible to show an overhead rate according to cause. If the rate is very
high, this leads to significant distortion of the costs. Overhead rates normally
result in cheap cost estimates for cheap products and expensive cost estimates
for expensive products.
2010 © 2010 SAP AG. All rights reserved. 169 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Menu Paths for Activity-Based Costing
Action Menu path
Display process Accounting → Controlling →
Activity-Based Costing → Master
Data → Business Process
170 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrating Template Allocation of Activities and Processes
Exercise 8: Integrating Template
Allocation of Activities and Processes
Exercise Objectives
After completing this exercise, you will be able to:
• Explain the process costs included in base object costing.
Business Example
When determining the costs involved in providing a service, it is very important
to assign the overhead costs to cost objects according to cause. Using the
template allocation, you can include overhead costs (activities and processes) both
according to cause and automatically in cost estimates and cost objects.
Task:
Create a base planning object R-SERVICE-##x . Enter COGM as the costing
sheet and SAP10 as the overhead key. To create the costing items, use base
planning object R-SERVICE-## as the template.
1. Create a base planning object for the service R-SERVICE-##x .
2. For the cost estimate header data, enter: Base Unit of Measure HR, Cost
Element 476300 , Company Code 1000 , and the name Consulting hour
##. Choose Enter .
Create the cost estimate with costing variant PG and lot size 1.
3. You can see the items from the earlier base object costing, automatically
supplemented by a process with a quantity of 1.
Add a new totals item to the end of the list.
4. Where does the category Xcosting item come from? Which template was
used?
2010 © 2010 SAP AG. All rights reserved. 171 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Solution8: IntegratingTemplateAllocation
of Activities and Processes
Task:
Create a base planning object R-SERVICE-##x . Enter COGM as the costing
sheet and SAP10 as the overhead key. To create the costing items, use base
planning object R-SERVICE-## as the template.
1. Create a base planning object for the service R-SERVICE-##x .
a) Choose Accounting → Controlling → Product Cost Controlling →
Product Cost Planning → Reference and Simulation Costing → Create
Base Planning Object .
b) Enter R-SERVICE-##x as the name of the base planning object and
choose Enter .
2. For the cost estimate header data, enter: Base Unit of Measure HR, Cost
Element 476300 , Company Code 1000 , and the name Consulting hour
##. Choose Enter .
Create the cost estimate with costing variant PG and lot size 1.
a) Enter the following data:
Field Value or Action
Base Unit of Measure HR
Cost Element 476300
Company Code 1000
Costing Sheet COGM
Overhead Key SAP10
Name & Description Consulting hour ##x
b) Choose Enter .
c) In the Create Cost Estimate dialog box, enter PG as the Costing
Variant , 1for the Lot Size , and R-SERVICE-## as the Base Object .
Choose Enter .
3. You can see the items from the earlier base object costing, automatically
supplemented by a process with a quantity of 1.
Continued on next page
172 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Integrating Template Allocation of Activities and Processes
Add a new totals item to the end of the list.
a) Choose Edit → New Entries . Enter the following costing items:
Category Resource Plant/Activity Quantity
S
b) Choose Enter to see the overall result. Ignore any warning messages
that may appear.
4. Where does the category Xcosting item come from? Which template was
used? a) Place the cursor on the Category field containing the value X and
choose F1. The explanation tells you that this item refers to process
costs that have been allocated automatically.
b) Choose the Header screen icon and then the Information on Cost
Estimate Header icon. Choose Template .
You can see that the process allocation was made using template
COPC-10 for environment 002. According to the template, 1 unit of
process 300900 is included in the cost estimate.
c) Save the costing items and then the entire cost estimate.
2010 © 2010 SAP AG. All rights reserved. 173 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 5: Integrated Planning Process in Management Accounting AC050
Lesson Summary
You should now be able to:
• Name the additional characteristics and functions that are available when
activity-based costing is used
• Describe the template allocation method.
174 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Unit Summary
Unit Summary
You should now be able to:
• Name the application components in the integrated planning cycle
• Explain the effects of the individual application components in the integrated
planning cycle
• List the master data used in Product Cost Controlling and explain the
purpose of this data
• Explain the use of the integrated planning cycle in the service industry
• Name the additional characteristics and functions that are available when
activity-based costing is used
• Describe the template allocation method.
2010 © 2010 SAP AG. All rights reserved. 175 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit Summary AC050
176 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Librería ERP https://libreriaerp.com/us [email protected] Librería ERP https://libreriaerp.com/us [email protected]

Unit6
Integration Aspects of the Accounting
Logic
Unit Overview
This unit explains how postings from other applications affect the account
assignment logic. A lot of Management Accounting data comes from postings in
other components that are assigned to account assignment objects. All postings in
Management Accounting are subject to a specific account assignment logic. A
distinction is made between real postings and statistical postings.
Unit Objectives
After completing this unit, you will be able to:
• Describe the posting logic
• List the typical feeder systems that post data to Management Accounting
• Explain the concept of commitments management within Management
Accounting
• Name real and statistical controlling objects
• List the main advantages of New General Ledger Accounting
Unit Contents
Lesson: Postings from Other Applications...................................178
Exercise 9: Postings from Other Applications ..........................187
Lesson: Statistical and Real Postings........................................202
Exercise 10: Statistical and Real Postings..............................207
Lesson: New General Ledger Accounting...................................213
Exercise 11: Postings to Management Accounting with New General
Ledger Accounting .........................................................221
2010 © 2010 SAP AG. All rights reserved. 177 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Lesson: Postings from Other Applications
Lesson Overview
This lesson deals with the posting logic used when postings are made to
Management Accounting from other components. Postings originate in
Management Accounting as one-sided entries, whereas allocations are two-sided
entries with a sender-receiver relationship.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe the posting logic
• List the typical feeder systems that post data to Management Accounting
• Explain the concept of commitments management within Management
Accounting
Business Example
When you enter actual costs/revenues, the primary costs/revenues stored in
Financial Accounting are transferred to Management Accounting. In Management
Accounting, this transfer takes place in real time from Financial Accounting,
Materials Management, Sales Order Management, and Asset Accounting, where
a cost accounting object (such as a cost center, profitability segment, or internal
order) is recorded during account assignment. You want to see how this affects
other areas.
In Management Accounting, you can display commitments for future costs in
addition to the actual costs. These costs are initiated in the purchasing function in
Materials Management when a purchase requisition or purchase order is created.
The costs are represented as a commitment in standard reporting for Management
Accounting.
Posting Data to Management Accounting
When an FI document is created that posts to an expense or revenue account using
a corresponding cost element, a Controlling document is also created.
178 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
Figure 86: Posting Logic
This Controlling document has a unique number and contains the following details:
• Account assignment object that was posted to
• Cost element used
• Amount posted.
In the example shown in the figure, the FI document debited a profit and loss (P&L)
account and credited a balance sheet account. The Controlling document debited
the account assignment object (using the corresponding primary cost element of
the same number). There is no corresponding credit in the Controlling document.
If primary costs are first posted to Management Accounting, they are treated as
a one-sided journal entry, unlike a conventional, balanced journal entry from
Financial Accounting.
Note: Any transactions that create cost movements within Management
Accounting are balanced entries. When a cost is transferred from one
account assignment object to another, such as from one cost center to another, the sending object is credited for, and the receiving object debited by the same amount.
2010 © 2010 SAP AG. All rights reserved. 179 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Figure 87: True and Statistical Objects in Management Accounting
Posting costs and revenues in Management Accounting can result in real
and statistical postings. You can settle real postings with other Management
Accounting objects. Statistical postings are for information purposes only.
True objects can act as sending or receiving objects during cost allocation.
Examples of true objects include cost centers (for cost account assignment),
internal orders (real), projects (real), networks, make-to-order production orders,
cost objects, and profitability segments.
Statistical objects cannot allocate costs to other objects. You can make a statistical
account assignment to any number of cost accounting objects. Statistical cost
accounting objects include statistical orders, statistical projects, and profit centers.
The account assignment object itself can either be a true or a statistical object. For
example, an overhead cost order is defined as true or statistical when it is created.
A true order can only be executed with real postings, and a statistical order only
with statistical postings. Cost centers are an exception. A cost center is always a
true object, but you can make statistical or real postings to it.
To make postings in Management Accounting, you must specify the corresponding
true Management Accounting account assignment object in the source document
(for example, a journal entry in Financial Accounting). You can only assign one
true object to each document item in the source document. Other statistical objects
can be entered in addition or derived from the system.
180 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
Posting from Financial Accounting and SAP ERP
Human Capital Management
When a journal entry is created in Financial Accounting that includes an expense
line item, that expense can be posted to Management Accounting as a cost if the
following conditions are met:
• A primary cost element that corresponds to the expense account used in
the journal entry in Financial Accounting has been created in Management
Accounting.
• A valid cost center is referenced in the Financial Accounting line item.
Figure 88: Posting to a Cost Center from Financial Accounting
Two separate documents are created as a result: A Financial Accounting document
and a Management Accounting document. Each document has a unique document
number, and from each document you can access the other.
2010 © 2010 SAP AG. All rights reserved. 181 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Figure 89: Posting from Asset Accounting to a Cost Center
If Fixed Asset Accounting triggers a transaction in Financial Accounting that
affects a P&L account for which a primary cost element has been created, a
Management Accounting posting is also created.
An asset master record has a cost center field that can be used to assign the asset to
a cost center.
Depreciation and interest expense postings are examples of postings initiated in
Asset Accounting that can generate cost postings to Management Accounting.
Figure 90: Posting from SAP ERP HCM to a Cost Center
182 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
Payroll in SAP ERP Human Capital Management (SAP ERP HCM) calculates
the various wage and salary amounts.. The system then generates FI postings and
posts the costs to the cost centers to which the employees are assigned.
Employee master data in SAP ERP HCM can be assigned to infotypes. The
infotype determines the company code, personnel area, and personnel subarea to
which the employee is assigned. For example, the Organizational Assignment
infotype (infotype 0001) enables you to determine the cost center to which
personnel costs are debited and to assign your employee to a business area.
Posting from Materials Management to a Cost Center
Goods issue transactions posted in Materials Management can be assigned
to a cost center. An example could be parts issued to an R&D cost center for
constructing a product prototype.
Figure 91: Posting from Materials Management to a Cost Center
From a cost center perspective, this type of transaction is known as material
consumption . When you enter a goods issue in the system, you must enter a
movement type to differentiate between the various types of goods movement.
A movement type is an identification key that has important control functions in
Inventory Management, such as updating stock and consumption accounts.
A goods issue to a cost center creates an FI transaction that debits a material
consumption expense account and credits a material stock (inventory) account.
The cost center is debited with the value of the goods issued using a primary
cost element.
2010 © 2010 SAP AG. All rights reserved. 183 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Commitments
Commitments are used with Controlling objects to display the consumption of the
“budget”, even if the consumption is not yet regarded as a cost.
Figure 92: Posting Materials Management Purchase Orders to a Cost Center
A purchase order is a formal request from a purchasing organization to a vendor or
a plant to deliver or provide a certain quantity of goods or services by a certain
date and time. A purchase order does not create an entry in Financial Accounting.
Each item in a purchase order can be assigned to a separate cost center (or other
controlling object).
Once posted, the purchase order record creates a commitment line item for the
cost center entered in the purchase order item. You can use the Information
System to generate a report on the commitment for a given cost center.
Subsequently, when actual costs are incurred (for example, when the ordered goods
are delivered), the SAP system clears the commitment and posts the actual costs.
184 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
Figure 93: Commitments
Commitments for future costs are created in the Purchasing function in Materials
Management.
• A purchase requisition is an internal procurement requirement (from the
requester to the buyer). It represents a provisional commitment that can be
changed at any time. To map the commitment in Management Accounting,
you must assign a Management Accounting object to a purchase requisition
item.
• A purchase order is a contractual agreement to purchase goods or services
from a vendor on the basis of agreed terms and conditions. A purchase
order is a firm commitment since it is based on a contractual agreement.
If a purchase item is to be entered under a cost element, you must enter a
Management Accounting object. The item is then mapped in Management
Accounting.
When you create a purchase order with reference to a purchase requisition, the
commitment is reclassified in Management Accounting.
You reduce the commitment by posting a goods receipt against a purchase order.
Actual costs are posted to the Management Accounting object. This process
continues until the purchase order is closed and the commitment is reduced to zero.
You need to activate commitments management in Management Accounting for
each controlling area.
2010 © 2010 SAP AG. All rights reserved. 185 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Hint: When posting an invoice receipt to the purchase order with items
that are assigned to different cost centers, profit centers, or business areas,
a document split can take place in the FI document. Further information is
available in the first lesson of the final unit of this handbook, which deals
with some of the functions in New General Ledger Accounting .
Menu Paths for Posting to Management Accounting
Action Menu path
Enter a G/L account posting. Accounting → Financial Accounting → General Ledger → Posting → Enter G/L Account Document
Execute a Actual/Plan/Vari-
ance report.
Accounting → Controlling → Cost Center
Accounting → Information System → Reports for Cost Center Accounting → Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance
Enter a goods issue. Logistics → Materials Management →
Inventory Management → Goods Movement → Goods Issue
Create a purchase order. Logistics → Materials Management →
Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known
Run a report for key figures. Accounting → Controlling → Cost Center
Accounting → Information System → Reports for Cost Center Accounting → Plan/Actual
Comparisons → Additional Key Figures → Cost Centers: Actual/Plan/Commitments
186 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
Exercise 9: Postings from Other
Applications
Exercise Objectives
After completing this exercise, you will be able to:
• Describe the account assignment logic and the posting concept in the SAP
ERP system
Business Example
When business transactions are entered in an application component such as
Financial Accounting or Materials Management, your company wants to be sure
that the corresponding cost data is also transferred to Management Accounting
without any extra data transfer or reconciliation runs.
You enter business transactions in Financial Accounting and Materials
Management to see how the system uses the corresponding account assignment
logic to automatically transfer the information to Management Accounting. You
also create a purchase order in Materials Management to test commitments
management in Management Accounting. You process Management Accounting
reports to display these business transactions and drill down to the source
documents.
Task 1:
In the general ledger (Financial Accounting), post an expense that is relevant to a
cost center and determine which costs are transferred to Management Accounting.
1. Create a G/L account posting with today’s date for the purchase of operating
supplies for the German company code ( 1000 ) with the currency EUR.
Enter a debit amount of 2500 for G/L account 403000 . Specify that the
offsetting credit is to be made to G/L account 113100 . Which error message
is displayed?
Hint: In the G/L account master records, some of the expense
accounts are configured as tax-relevant accounts, however this
setting is not mandatory setting. A tax warning message is therefore
output by the system before the error message mentioned here. This
is to ensure that you do not forget to enter a tax code if appropriate. For the purpose of these exercises, all expenses are treated as not relevant for tax. You can therefore ignore the warning message or
enter tax code V0 (input tax 0%) for this exercise.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 187 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
2. Post the raw material costs to your service cost center CONS-## . Post the
document.
Note: To find the Cost Center field, scroll to the right in the debit
row.
3. Execute the Cost Centers: Actual/Plan/Commitment report for the current
period and plan version 0. Execute the report for service cost center
CONS-## .
4. Drill down to the source document for the line item 2500 .
Task 2:
Enter the consumption of a material by a cost center in Inventory Management.
Check which costs are transferred to Management Accounting.
1. Enter a goods issue for your service cost center CONS-## . Use movement
type 201 and remove 1piece of material AZ2-742 from storage location
0001 in the Dresden plant ( 1200 ).
2. Execute the Cost Centers: Actual/Plan/Variance report for the current period
and plan version 0. Execute the report for service cost center CONS-## .
3. Drill down to the source document for the line item.
Task 3:
In addition to consulting, the education department would like to procure some
sets of cables to equip its training classrooms. Create a purchase order for cost
centers CONS-## and EDUC-## for material AZ2-742 in plant 1200 and check
the resulting commitments in Management Accounting.
1. Create a purchase order for vendor 1000 , purchasing organization 1000 ,
purchasing group 001, and company code 1000 .
Determine that the purchase order has 2 items, each of which debit a different
cost center (account assignment category K). Order 5pieces of material
AZ2-742 at a price of 77 per piece for your cost center CONS-## .
Specify today as the delivery date and ignore any delivery date warning
messages.
Order 10 pieces of material AZ2-742 at a price of 77 per piece for your
cost center EDUC-## .
Specify today as the delivery date and ignore any delivery date warning
messages.
Continued on next page
188 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
2. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for service cost center
CONS-## .
3. Drill down to the source document for the line item for a commitment.
Task 4:
Create a goods receipt with reference to your purchase order.
1. Use the transaction MIGO, goods receipt for purchase order (MIGO). If you
do not know the purchase order number, search for it by material number.
Post the goods issue.
2. Execute the Cost Centers: Actual/Plan/Commitment report for the
current period and plan version 0. Execute the report for service cost center
CONS-## .
3. Drill down on the source document and the accounting document.
Task 5:
Create an invoice receipt from your vendor.
1. Use document entry in Logistics Invoice Verification (MIRO) to enter the
invoice.
In the top part of the screen, choose the transaction Invoice . Enter the
current date in the Invoice Date field, choose the Tax Code VA and select
the Calculate Tax indicator. Enter your purchase order number and choose
Enter . Choose Posting OK , select both items, and enter the corresponding
amount in the Amount field to get a balanced document
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 189 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
2. Check the accounting document that has been created. Use the layout
/AC990 to display the entry view and the general ledger view .
Note: If layout /AC990 is not available, define your own layout
as follows:
1. Choose the standard layout 0SAP and then Change Layout .
2. Add the Profit Center and Cost Center fields from the column
set.
3. Choose Sort Purchase Order , remove the company code and
add the profit center . Choose Sort Ascending .
4. Save the layout as a user-specific layout with the name
Group-## .
5. Place the cursor in the Amount column and choose Total .
6. Place the cursor in the Profit Center column and choose
Subtotals .
7. Save your layout again. Overwrite your existing user-defined
layout.
190 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
Solution 9: Postings from Other
Applications
Task 1:
In the general ledger (Financial Accounting), post an expense that is relevant to a
cost center and determine which costs are transferred to Management Accounting.
1. Create a G/L account posting with today’s date for the purchase of operating
supplies for the German company code ( 1000 ) with the currency EUR.
Enter a debit amount of 2500 for G/L account 403000 . Specify that the
offsetting credit is to be made to G/L account 113100 . Which error message
is displayed?
Hint: In the G/L account master records, some of the expense
accounts are configured as tax-relevant accounts, however this
setting is not mandatory setting. A tax warning message is therefore
output by the system before the error message mentioned here. This
is to ensure that you do not forget to enter a tax code if appropriate. For the purpose of these exercises, all expenses are treated as not relevant for tax. You can therefore ignore the warning message or
enter tax code V0 (input tax 0%) for this exercise.
a) Choose Accounting → Financial Accounting → General Ledger →
Posting → Enter G/L Account Document .
b) In the Document Date field, enter today's date.
If the system displays the Enter Company Code dialog box, enter 1000
in the appropriate field.
c) Enter the following data:
Field Value or Action
Currency EUR
G/L Account (first row) 403000
D/C Debit
Tax Code V0
Amount in Document Currency 2500
G/L Account (second row) 113100
D/C Credit
Amount in Document Currency 2500
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 191 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
d) Choose Enter .
The system displays the error message “Account 403000 requires an
assignment to a CO object”.
2. Post the raw material costs to your service cost center CONS-## . Post the
document.
Note: To find the Cost Center field, scroll to the right in the debit
row.
a) In the Cost Center field for the debit entry, enter CONS-## .
b) Choose Enter .
Choose Save . Make a note of the document number assigned by the
system on your data sheet.
3. Execute the Cost Centers: Actual/Plan/Commitment report for the current
period and plan version 0. Execute the report for service cost center
CONS-## .
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) CONS-##
c) Choose Execute .
4. Drill down to the source document for the line item 2500 .
a) Double-click the report line for cost element 403000 .
b) Double-click on the Cost Centers: Actual Line Items report.
c) Select the line item with the value of 2500 and choose Environment
→ Accounting Documents .
The system displays the accounting documents that were created.
Continued on next page
192 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
Task 2:
Enter the consumption of a material by a cost center in Inventory Management.
Check which costs are transferred to Management Accounting.
1. Enter a goods issue for your service cost center CONS-## . Use movement
type 201 and remove 1piece of material AZ2-742 from storage location
0001 in the Dresden plant ( 1200 ).
a) Choose Logistics → Materials Management → Inventory Management
→ Goods Movement → Goods Issue . Choose transaction MB1A, not
transaction MIGO.
b) Enter the following data:
Field Value or Action
Movement Type 201
Plant 1200
Storage Location 0001
c) Choose Enter .
d) Enter the following data:
Field Value or Action
Cost Center CONS-##
Material AZ2-742
Quantity 1
e) Choose Post .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 193 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
2. Execute the Cost Centers: Actual/Plan/Variance report for the current period
and plan version 0. Execute the report for service cost center CONS-## .
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) CONS-##
c) Choose Execute .
3. Drill down to the source document for the line item.
a) Double-click the report line for cost element 890000 .
b) Double-click on the Cost Centers: Actual Line Items report.
c) Select the line item with a quantity of 1. Choose Environment →
Accounting Documents to see all the accounting documents that were
created.
Task 3:
In addition to consulting, the education department would like to procure some
sets of cables to equip its training classrooms. Create a purchase order for cost
centers CONS-## and EDUC-## for material AZ2-742 in plant 1200 and check
the resulting commitments in Management Accounting.
1. Create a purchase order for vendor 1000 , purchasing organization 1000 ,
purchasing group 001, and company code 1000 .
Determine that the purchase order has 2 items, each of which debit a different
cost center (account assignment category K). Order 5pieces of material
AZ2-742 at a price of 77 per piece for your cost center CONS-## .
Specify today as the delivery date and ignore any delivery date warning
messages.
Order 10 pieces of material AZ2-742 at a price of 77 per piece for your
cost center EDUC-## .
Continued on next page
194 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
Specify today as the delivery date and ignore any delivery date warning
messages.
a) Choose Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known .
b) On the right of the shopping basket icon, choose Standard PO .
c) In the Vendor field, enter 1000 .
d) Choose Header (if this has not already been expanded). Choose the
Organizational Data tab page (if this has not already been selected).
e) Enter the following data:
Field Value or Action
Purch. Org. 1000 for IDES Germany
Purch. Group 001 for Dietl, B.
Company Code 1000 (IDES AG)
f) Choose Item Overview (if this has not already been expanded).
g) Enter the following data for the first item:
Field Value or Action
Acct.Ass. Cat. K
Material AZ2-742
PO Quantity 5
Delivery Date Today
Plant 1200
Net Price 77 per piece
h) Choose Enter .
If a warning is displayed for the vendor, choose Enter again to hide
the warning.
i) In the Cost Center field, enter CONS-## . Choose Enter .
j) Enter the following data for the second item:
Field Value or Action
Acct.Ass. Cat. K
Material AZ2-742
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 195 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Field Value or Action
PO Quantity 10
Delivery Date Today
Plant 1200
Net Price 77 per piece
k) Choose Enter .
If a warning is displayed for the vendor or the special stock key, choose
Enter again to hide the warning.
l) In the Cost Center field, enter EDUC-## . Choose Save .
Note the purchase order number.
2. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for service cost center
CONS-## .
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Additional Key Figures → Cost Centers:
Actual/Plan/Commitment .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) CONS-##
c) Choose Execute .
3. Drill down to the source document for the line item for a commitment.
a) Double-click the report line for cost element 890000 .
b) Double-click on the Cost Centers: Commitment Line Items report.
c) Double-click on the line item.
The system displays the line item. Choose Environment → Source
document to check the source document.
Continued on next page
196 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
Task 4:
Create a goods receipt with reference to your purchase order.
1. Use the transaction MIGO, goods receipt for purchase order (MIGO). If you
do not know the purchase order number, search for it by material number.
Post the goods issue.
a) Choose Logistics → Materials Management → Inventory Management
→ Goods Movement → Goods Receipt → For Purchase Order → GR
for Purchase Order (MIGO) (or enter MIGO in the command field).
b) Verify that the first field that is displayed is Goods Receipt and the
second is Purchase Order . Enter your purchase order number in the
third field.
Note: If you do not know the number, click the right mouse
button, choose F4 in the Purchase Order Number field and
search for your cost center CONS-## . Copy the purchase order
number that is found, but without the item number!.
Verify that both items (for material AZ2-742) are displayed.
c) Choose OK for both items and post the document.
2. Execute the Cost Centers: Actual/Plan/Commitment report for the
current period and plan version 0. Execute the report for service cost center
CONS-## .
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Additional Key Figures → Cost Centers:
Actual/Plan/Commitment .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) CONS-##
c) Choose Execute .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 197 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
3. Drill down on the source document and the accounting document.
a) Double-click the report line for cost element 890000.
b) Double-click on the Cost Centers: Actual Line Items report.
Double-click on the line item. Select the line item with the approximate
value of 385 and choose Environment → Accounting Documents .
The system displays the accounting documents that were created as
a result of the goods receipt. Check the source document and the
accounting documents.
Task 5:
Create an invoice receipt from your vendor.
1. Use document entry in Logistics Invoice Verification (MIRO) to enter the
invoice.
Continued on next page
198 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
In the top part of the screen, choose the transaction Invoice . Enter the
current date in the Invoice Date field, choose the Tax Code VA and select
the Calculate Tax indicator. Enter your purchase order number and choose
Enter . Choose Posting OK , select both items, and enter the corresponding
amount in the Amount field to get a balanced document
a) Choose Logistics → Materials Management → Logistics Invoice
Verification → Document Entry → Enter Invoice or use the transaction
MIRO.
b) In the Transaction field, choose Invoice .
c) Enter the following data:
Field Value or Action
Invoice Date Current date
Tax Code VA
Calculate Tax Activate
PO Number Your purchase order
number
Choose Enter . The system displays the most important data for your
purchase order. The tax amount is calculated automatically.
Choose Booking OK for both items.
Select the items.
d) Enter the corresponding amount in the Amount field to get a balanced
document.
Choose Enter . Zero must appear in the Balance field for the document.
Verify that the Tax Code is still VA.
Post the invoice.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 199 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
2. Check the accounting document that has been created. Use the layout
/AC990 to display the entry view and the general ledger view .
Note: If layout /AC990 is not available, define your own layout
as follows:
1. Choose the standard layout 0SAP and then Change Layout .
2. Add the Profit Center and Cost Center fields from the column
set.
3. Choose Sort Purchase Order , remove the company code and
add the profit center . Choose Sort Ascending .
4. Save the layout as a user-specific layout with the name
Group-## .
5. Place the cursor in the Amount column and choose Total .
6. Place the cursor in the Profit Center column and choose
Subtotals .
7. Save your layout again. Overwrite your existing user-defined
layout.
a) Choose Logistics Invoice Verification → Further Processing → Display
Invoice Document .
Your document number is displayed. Choose Enter .
b) Choose Follow-On Documents... and double-click on the number of
the accounting document. The system displays the Entry View for
your FI document.
Select layout /AC990 . The system displays the cost centers and profit
center used.
c) Choose General Ledger View . The system shows that the document
was split to give a balanced document for each profit center.
200 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Postings from Other Applications
Lesson Summary
You should now be able to:
• Describe the posting logic
• List the typical feeder systems that post data to Management Accounting
• Explain the concept of commitments management within Management
Accounting
2010 © 2010 SAP AG. All rights reserved. 201 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Lesson: Statistical and Real Postings
Lesson Overview
This lesson introduces the topic of statistical postings to account assignment
objects in Management Accounting. Statistical data does not affect costs.
Statistical costs are used for reporting and to create overhead keys. They are not
allocated further.
Lesson Objectives
After completing this lesson, you will be able to:
• Name real and statistical controlling objects
Business Example
In most cases, costs are posted directly to the cost objects that cause them. In
certain cases, however, it is advisable to post the costs to two objects at the same
time. For example, a marketing manager might want to post costs for different
marketing campaigns to two different objects. This allows the campaign costs to
be managed by the marketing cost center, but also allows them to be monitored
separately.
You know that internal orders can be used to post costs to different cost objects.
The costs are then always transferred to the marketing cost center. You therefore
want to post the costs to the Campaign internal order and the marketing cost center
at the same time to avoid having to make a transfer posting later.
Posting to Statistical and Real Orders
Statistical orders are generally used to evaluate costs that cannot be itemized in
detail in Cost Center Accounting. Unlike real internal orders, you can neither
settle statistical orders nor apply overhead to them.
In the example in the figure, the Financial Accounting document posts the costs
to both a cost center and a statistical internal order. The costs then appear under
the original cost element both on the cost center (real costs) and on the order
(statistical, for information purposes only).
202 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Statistical and Real Postings
Figure 94: Posting to a Statistical Order
Example: Statistical orders can be created for individual trucks monitored in a
vehicle pool cost center. Cost postings can be made to both the relevant order and
the cost center. The real cost postings are accumulated on the cost center for the
entire vehicle pool, whilst the individual orders retain the detail cost information
for each vehicle.
Figure 95: Posting to a Real Order
In the example from the above figure, the internal order is entered as the account
assignment object in the FI document. The internal order is a real object, consequently the cost posting is a real posting.
2010 © 2010 SAP AG. All rights reserved. 203 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
If a cost center were also specified as an account assignment object in the FI
document, the cost center would be updated statistically. When both a real internal
order and a cost center are specified in the source document line item, the real
posting is directed to the order, and statistical postings are recorded for the cost
center and profit center.
Figure 96: Posting to a Profitability Segment
In the example shown in the figure above, a revenue posting is made in Financial
Accounting. If a type 11 (revenues) primary cost element exists that corresponds
to the revenue account, the revenue is posted to the respective profitability segment
in Profitability Analysis.
Real revenues can be posted to a profitability segment, sales order, customer
project, or revenue order. As with cost postings, revenue postings to profit centers
are statistical.
Furthermore, revenues can be entered as statistical postings in cost centers.
204 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Statistical and Real Postings
Statistical and Real Postings: Menu Paths
Action Menu path
Create a statistical order Accounting → Controlling → Internal
Orders → Master Data → Order Manager
Enter a G/L account expense
posting
Accounting → Financial Accounting →
General Ledger → Posting → Enter G/L
Account Document
Execute the Orders:
Actual/Plan/Variance report
Internal Orders → Information System
→ Reports for Internal Orders →
Plan/Actual Comparisons → Orders: Actual/Plan/Variance
Execute the Cost Centers:
Actual/Plan/Variance report
Accounting → Controlling → Cost Center
Accounting → Information System → Reports for Cost Center Accounting → Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance
2010 © 2010 SAP AG. All rights reserved. 205 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
206 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Statistical and Real Postings
Exercise 10: Statistical and Real Postings
Exercise Objectives
After completing this exercise, you will be able to:
• Compare a statistical posting with a real posting
Business Example
Your company would like to use an overhead cost order to map plant maintenance
and operating costs for a truck that is assigned to a cost center. However, you
need to view the costs at cost center level the moment they are incurred. To do
this, you need to create a statistical order. Since the costs on the order are only
statistical, they can be analyzed at the detailed order level but cannot be allocated
to the cost center. However, since the actual costs are posted to the cost center
simultaneously, you can also carry out your analysis at this totals level.
Task 1:
Create a statistical order.
1. Create a statistical order for a truck used by the cost center CONS-## . Create
the overhead cost order with order type 1000 . Name the order TRUCK-##
and add Truck ## to the default description. Assign the order to business
area 8000 and profit center 1600 .
Select the indicator for the statistical order and save your order.
Task 2:
Enter a G/L account expense posting and assign it to your statistical order to
determine the information that is required to execute this transaction in full.
Analyze the results in Management Accounting.
1. Create a G/L account posting with today's date for the vehicle costs of your
truck. Use the German company code ( 1000 ) and the currency EUR.
Enter a debit amount of 2000 on G/L account 475000 for your truck order
TRUCK-## . Specify that the offsetting credit is to be made to G/L account
113100 . Which error message is displayed?
2. Post the real vehicle costs to your cost center CONS-##. Post the document.
3. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for service cost center
CONS-## . Check whether the cost posting for cost element 475000 is shown.
4. Execute the Orders: Actual/Plan/Variance report for the current period
and plan version 0.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 207 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Execute the report for your truck order ( TRUCK-## ). Check whether the
cost posting for cost element 475000 is shown.
208 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Statistical and Real Postings
Solution 10: Statistical and Real Postings
Task 1:
Create a statistical order.
1. Create a statistical order for a truck used by the cost center CONS-## . Create
the overhead cost order with order type 1000 . Name the order TRUCK-##
and add Truck ## to the default description. Assign the order to business
area 8000 and profit center 1600 .
Select the indicator for the statistical order and save your order.
a) Choose Accounting → Controlling → Internal Orders → Master Data
→ Order Manager .
b) Choose Create .
c) Enter the following data:
Field Value or Action
Order Type 1000
Order TRUCK-##
Description TRUCK-##
Business Area 8000
Profit Center 1600
d) Select the Control Data tab page. Choose Statistical Order (the field
may already have been selected).
e) Choose Save .
Task 2: Enter a G/L account expense posting and assign it to your statistical order to
determine the information that is required to execute this transaction in full.
Analyze the results in Management Accounting.
1. Create a G/L account posting with today's date for the vehicle costs of your
truck. Use the German company code ( 1000 ) and the currency EUR.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 209 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Enter a debit amount of 2000 on G/L account 475000 for your truck order
TRUCK-## . Specify that the offsetting credit is to be made to G/L account
113100 . Which error message is displayed?
a) Choose Accounting → Financial Accounting → General Ledger →
Posting → Enter G/L Account Document .
b) In the Document Date field, enter today's date.
Note: If the system displays the Enter Company Code dialog
box, enter 1000 in the Company Code field.
c) Enter the following data:
Field Value or Action
Currency EUR
G/L Account 475000 in first row
D/C Debit
Amount in doc. curr 2000
Tax Code V0
Order TRUCK-##
G/L Account 113100 in the second row
D/C Credit
Amount in doc. curr 2000
d) Choose Enter .
The system displays the error message “Account 475000 requires an
assignment to a CO object”.
2. Post the real vehicle costs to your cost center CONS-##. Post the document.
a) In the Cost Center field, enter CONS-## . Choose Enter .
The message disappears and the document is now complete.
b) Choose Post .
Continued on next page
210 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Statistical and Real Postings
3. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for service cost center
CONS-## . Check whether the cost posting for cost element 475000 is shown.
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) CONS-##
c) Choose Execute .
4. Execute the Orders: Actual/Plan/Variance report for the current period
and plan version 0.
Execute the report for your truck order ( TRUCK-## ). Check whether the
cost posting for cost element 475000 is shown.
a) Choose Internal Orders → Information System → Reports for Internal
Orders → Plan/Actual Comparisons → Orders: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) TRUCK-##
c) Choose Execute .
2010 © 2010 SAP AG. All rights reserved. 211 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Lesson Summary
You should now be able to:
• Name real and statistical controlling objects
212 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: New General Ledger Accounting
Lesson: New General Ledger Accounting
Lesson Overview
This lesson presents New General Ledger Accounting in SAP ERP and provides a
summary of its main advantages.
Lesson Objectives
After completing this lesson, you will be able to:
• List the main advantages of New General Ledger Accounting
Business Example
You are considering using the new reconciliation ledger to meet reconciliation
requirements and manage several accounting systems in parallel.
About New General Ledger Accounting
With SAP ECC, SAP delivers an alternative to the general ledger in SAP ERP
Financials. New General Ledger Accounting is activated by default when you
install SAP ERP for the first time.
New General Ledger Accounting (FI-GL) is fully integrated with all subledgers
(for example, accounts payable and accounts receivable accounting, asset
accounting, and so on).
Customers already using the classic general ledger can choose whether or not to
switch to New General Ledger Accounting. When you convert to SAP ERP, you
will discover the many advantages of activating New General Ledger Accounting.
Note: Customers currently using Classic General Ledger Accounting
can switch to New General Ledger Accounting in a follow-up project
to upgrading to SAP ERP.
2010 © 2010 SAP AG. All rights reserved. 213 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Advantages of New General Ledger Accounting
New General Ledger Accounting in SAP ERP combines the functions of Classic
General Ledger Accounting and the Special Ledger. It offers the following
advantages compared with Classic General Ledger Accounting in SAP ERP:
• Extended data structure and option of adding user-defined fields
• Real-time document splitting
• Real-time reconciliation via real-time integration
• Option of managing several ledgers
Using real-time document splitting with online split , you can create financial
statements for segments and other entities.
Real-time reconciliation with real-time integration makes it easier to reconcile
Management Accounting and Financial Accounting. This dispenses with the need
for time-consuming reconciliation tasks at the end of the period.
Managing several ledgers allows you to map parallel accounting in the SAP
system.
Extended Data Structure
Although the user interfaces for entering data or postings remain virtually identical
to those of the previous release, the data structure has been extended to include the
following fields:
• Cost element (COST_ELEM)
• Cost center (RCNTR)
• Profit center (PRCTR)
• Functional area (RFAREA)
• Segment (SEGMENT)
214 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: New General Ledger Accounting
Figure 97: Extended Data Structure
The Functional Area field is now stored in General Ledger Accounting. This
means that you no longer have to activate the cost of sales ledger 0F to create a
profit and loss statement for cost of sales accounting.
The Profit Center field (like the Partner Profit Center field) is also managed in
General Ledger Accounting. In this way, you can use General Ledger Accounting
to perform management analyses.
You can also use General Ledger Accounting to map a lean version of Management
Accounting (Management Accounting light). Cost centers and (primary) cost
elements are now available as objects.
The new Segment field enables you to perform segment reporting.
You can extend the structure of the tables easily by adding user-defined fields and
the totals for those fields. The data can be used in all standard reports.
Document Splitting
You can use the online split function when you want to split expenses according
to segments, cost centers, profit centers, or business areas.
2010 © 2010 SAP AG. All rights reserved. 215 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Figure 98: Online Split
The above figure shows the Display Document: Entry View for online splitting.
The appearance of the interface and the way users enter financial documents
remain exactly the same as in previous releases.
Currently, SAP supports derivation of the segment from the profit center. The
profit center itself, however, can be derived from other entities (such as a cost
center, a Management Accounting order, or a project).
You need to activate document splitting to ensure that the Segment characteristic
(or other entities) are split consistently. Document splitting ensures that a zero
balance is achieved for each entity in the document.
Figure 99: Online Split (2)
216 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: New General Ledger Accounting
This figure not only shows how the segment is split, but also how it is passed on
to the vendor items and tax rows of the document.
With document splitting (and inheritance), the period-end closing activities
Balance Sheet Adjustment (SAPF180) and Profit and Loss Adjustment (SAPF181)
are no longer required.
Note: Document splitting can also be used for subsequent processes
such as payments. Cash discounts received and cash discounts paid are
distributed across the entities in accordance with the amount of the original
posting to the expense account (in the case of an original vendor invoice).
Customer invoices in which the revenues are distributed across several
entities are treated in the same way.
Real-Time Integration and Reconciliation
The following figure shows the example of real-time integration between
Management Accounting and Financial Accounting using the functional area .
You can set up real-time integration for other criteria such as company code,
business area, profit center, segment, funds, and receivables. Indeed, you can even
activate real-time integration for all these characteristics at once.
The Financial Accounting document (see 2b in the figure) has the following
special features:
• Postings are made in real time (per document). Reconciliation using the
reconciliation ledger in Cost Element Accounting (transaction KALC) is no
longer necessary (only aggregated for each expense account/cost element).
• The Financial Accounting document does not require clearing accounts.
However, clearing accounts are still required in SAP ERP for cross-company
code transactions.
• Users can access the Financial Accounting document generated in real-time
from the Management Accounting document (see 2 and 2a in the figure)
and vice versa, thereby guaranteeing the transparency of the accounting
documents.
The documents in real-time integration between Management Accounting and
Financial Accounting can be logged using a trace for subsequent analysis.
2010 © 2010 SAP AG. All rights reserved. 217 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Figure 100: Real-Time Integration of Management Accounting and Financial
Accounting
Parallel Accounting
One ledger in New General Ledger Accounting is designated as the leading
ledger . Although the leading ledger is generally used to portray group accounting,
other ledgers can be used for parallel accounting in New General Ledger
Accounting. This ledger approach is delivered with SAP ERP in New General
Ledger Accounting.
Note: These ledgers must be distinguished from those in the special
ledger in SAP ERP.
Figure 101: Parallel Accounting
218 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: New General Ledger Accounting
If required, you can still map parallel accounting using additional accounts (the
account approach). With the account approach, you use only one ledger in General
Ledger Accounting, and this ledger is regarded as the leading ledger.
With SAP ERP, the ledger approach in New General Ledger Accounting and the
account approach are generally treated commensurately.
You can continue to use the display options from earlier releases, such as
the special purpose ledger approach or the company code approach, if these
approaches were already set up before SAP ERP was implemented. No
enhancements to these approaches are included in SAP ERP, however.
2010 © 2010 SAP AG. All rights reserved. 219 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
220 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: New General Ledger Accounting
Exercise 11: Postings to Management
Accounting with New General Ledger
Accounting
Exercise Objectives
After completing this exercise, you will be able to:
• Describe some of the New General Ledger Accounting functions.
Business Example
The accountant would like to post salaries to the corresponding cost centers.
These, however, belong to different profit centers.
Task:
Enter a posting in Financial Accounting.
1. Enter a G/L account posting with today's date for the payment of salaries for
German company code 1000 in the currency EUR. Enter a debit amount of
8000 for G/L account 430000 and assign the posting to service cost center
CONS-## . Enter another debit amount of 6000 for G/L account 430000 and
assign the posting to service cost center EDUC-## . Use G/L account 113100
to make the offsetting entry for the credit amount. Post the document.
2. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for the cost center CONS-## to
check whether or not the posting for cost element 430000 was correct.
3. Place the cursor on the cost posting item and drill down on the actual line
item report. Call the accounting document and analyze the posting in FI
with layout “/AC990”.
Note: If layout /AC990 is not available, define your own
user-specific layout Group-## by displaying the cost center and
profit center fields and using the profit centers to create subtotals.
2010 © 2010 SAP AG. All rights reserved. 221 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Solution 11: Postings to Management
Accounting with New General Ledger
Accounting
Task:
Enter a posting in Financial Accounting.
1. Enter a G/L account posting with today's date for the payment of salaries for
German company code 1000 in the currency EUR. Enter a debit amount of
8000 for G/L account 430000 and assign the posting to service cost center
CONS-## . Enter another debit amount of 6000 for G/L account 430000 and
assign the posting to service cost center EDUC-## . Use G/L account 113100
to make the offsetting entry for the credit amount. Post the document.
a) Choose Accounting → Financial Accounting → General Ledger →
Posting → Enter G/L Account Document .
b) Enter the following data:
Field Value or Action
Document Date Today
Company Code 1000 (if requested by system)
Currency EUR
G/L Account 430000
D/C Debit
Amount in doc. curr 8000
Cost Center CONS-##
G/L Account 430000 in the second row
D/C Debit
Amount in doc. curr 6000
Cost Center EDUC-##
G/L Account 113100 in the third row
D/C Credit
Amount in doc. curr *
Profit Center 9999
c) Choose Enter . Choose Post .
Continued on next page
222 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: New General Ledger Accounting
2. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for the cost center CONS-## to
check whether or not the posting for cost element 430000 was correct.
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) CONS-##
c) Choose Execute .
3. Place the cursor on the cost posting item and drill down on the actual line
item report. Call the accounting document and analyze the posting in FI
with layout “/AC990”.
Note: If layout /AC990 is not available, define your own
user-specific layout Group-## by displaying the cost center and
profit center fields and using the profit centers to create subtotals.
a) Double-click on the cost amount in your cost center report and drill
down on the actual line item report.
b) Choose Environment → Accounting Documents and double-click on
the accounting document number . The system displays the Entry View
for your FI document.
Select layout “/AC990”. The system displays the cost centers and
profit centers used.
c) Choose General Ledger View . The system shows that by using a
clearing account, the document for each profit center has a zero balance
and is therefore cleared.
2010 © 2010 SAP AG. All rights reserved. 223 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 6: Integration Aspects of the Accounting Logic AC050
Lesson Summary
You should now be able to:
• List the main advantages of New General Ledger Accounting
Related Information
• For more information about the ledger approach, see SAP Note 779251.
• For an overview of the advantages, see SAP Note 756146.
224 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Unit Summary
Unit Summary
You should now be able to:
• Describe the posting logic
• List the typical feeder systems that post data to Management Accounting
• Explain the concept of commitments management within Management
Accounting
• Name real and statistical controlling objects
• List the main advantages of New General Ledger Accounting
2010 © 2010 SAP AG. All rights reserved. 225 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit Summary AC050
226 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Test Your Knowledge
Test Your Knowledge
1. You can create financial statements for segments and other entities using
the .
Fill in the blanks to complete the sentence.
2. To map parallel accounting, you can have a and
several other ledgers.
Fill in the blanks to complete the sentence.
2010 © 2010 SAP AG. All rights reserved. 227 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Test Your Knowledge AC050
Answers
1. You can create financial statements for segments and other entities using
the o nlinesplit.
Answer: online split
With the online split, you can split expenses between segments, cost centers,
profit centers, or business areas.
2. To map parallel accounting, you can have a l eadingledgerand several other
ledgers.
Answer: leading ledger
The leading ledger reflects the accounting principles used to create financial
statements for the group.
228 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Librería ERP https://libreriaerp.com/us [email protected] Librería ERP https://libreriaerp.com/us [email protected]

Unit7
Transaction-Based Postings in
Management Accounting
Unit Overview
This unit introduces actual postings in Overhead Cost Controlling. It also explains
postings in a make-to-stock manufacturing environment, the sale of goods from
stock, and the process for providing make-to-order services.
Unit Objectives After completing this unit, you will be able to:
• Post Management Accounting reposting documents
• Explain the purpose of a direct activity allocation
• Post a direct activity allocation
• Explain the purpose of entering time sheets.
• Describe the steps for processing time sheets
• Set up a budget for an internal order
• Post documents to an internal order to demonstrate the effects of availability
control
• Create an internal order with revenue
• Post the costs for material consumption and activities
• Settle the order with costs and revenues to Profitability Analysis.
• Create a sales order for a service
• Optional: Create an additional sales order item for the sale of a product
• Post costs from different sources
• Perform resource-related billing
• Settle the sales order with sales revenues and costs for the service to
Profitability Analysis
• Create a service order for a service
• Post material consumption with reference to a BOM and activity allocations
using confirmations
• Post costs from different sources
2010 © 2010 SAP AG. All rights reserved. 229 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
• Perform resource-related billing
• Settle the service order with sales revenues and costs for the service to
Profitability Analysis
Unit Contents
Lesson: Transaction-Based Postings in Overhead Management
Accounting .......................................................................231
Exercise 12: Postings in Overhead Cost Controlling ..................237
Lesson: Transaction-Based Postings for Services on an Internal Order
with Revenue ....................................................................253
Exercise 13: Postings for a Make-to-Order Service on an Internal
Order with Revenue ........................................................265
Lesson: Transaction-Based Postings for Services on a Sales Order ....275
Exercise 14: Postings for a Service on a Sales Order.................291
Lesson: Transaction-Based Postings for Services on a Service Order
(Optional Lesson) ...............................................................302
Exercise 15: Postings for a Make-to-Order Service with a Service
Order (Optional Exercise) .................................................319
230 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
Lesson: Transaction-Based Postings in Overhead
Management Accounting
Lesson Overview
This lesson deals with some of the typical posting transactions in Management
Accounting, such as direct activity allocations, cross-application time sheets, and
budget management with internal orders.
Lesson Objectives
After completing this lesson, you will be able to:
• Post Management Accounting reposting documents
• Explain the purpose of a direct activity allocation
• Post a direct activity allocation
• Explain the purpose of entering time sheets.
• Describe the steps for processing time sheets
• Set up a budget for an internal order
• Post documents to an internal order to demonstrate the effects of availability
control
Business Example
Numerous financial transactions are carried out during the course of a period.
Sometimes an expense is posted to the wrong Management Accounting object
(cost center, internal order, and so on). As a member of the project team, you
explain how this posting error can be corrected.
In addition, you explain how to allocate costs for services performed for another
cost center and the different methods that are available. You also want to monitor
expenses for project work by allocating an estimate for the anticipated costs in
the budget.
Correcting Posting Errors
One way of correcting posting errors is to reverse the original document and post a
corrected document in the original application. Another way is to correct the data
records in Management Accounting. You can correct data records by reposting
costs manually or reposting line items. These correction methods are restricted
to Management Accounting. You can use these correction methods only if the
correction is not relevant in the original application (for example, if the original
expense account is correct, but the cost object is not).
2010 © 2010 SAP AG. All rights reserved. 231 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 102: Reposting Line Items
You can repost primary costs from one controlling object to another using
transaction-based reposting. The original cost element is always retained. This
function enables you to correct posting errors. Ideally, posting errors should be
corrected in the application component in which they occurred, so that external
accounting (Financial Accounting) and internal accounting (Management
Accounting) are always reconciled. If this is not possible, incorrect assignments
to controlling objects (cost centers or internal orders) can be corrected using
transaction-based reposting in Management Accounting.
There are two types of reposting: Manual reposting of costs (or revenues) and
reposting of line items.
• Manual reposting of costs simply transfers costs from one Management
Accounting object to another. This type of reposting does not preserve a
direct link between the amount transferred and the transaction that originally
posted the costs to Management Accounting.
• When you repost line items , on the other hand, you specify the Financial
Accounting document number. The reposting document contains a reference
to the original Financial Accounting document. This means that the link
to the original document from Financial Accounting is preserved after the
correction posting and the receiver of the reposting can thus branch directly
to the Financial Accounting document.
You can specify more than one receiver when you repost line items.
232 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
Allocating Direct Activities
During day-to-day operations, a cost center might perform an internal service
for another Management Accounting object. For example, a plant maintenance
cost center can perform internal services for other cost centers as part of planned
maintenance or to undertake repairs. The costs for this service are based on the
number of units of the activity type performed in maintenance.
Figure 103: Direct Activity Allocation
Allocation data must be entered in the system using activity allocations or
cross-application time sheets.
For indirect activity allocation , enter and allocate the quantity of an activity
type provided by a cost center.
For direct activity allocation , enter the cost center providing the activity (sender
cost center), the object receiving the activity (receiver), the type of activity
provided, and the activity quantity. Only a cost center can be the sender in an
activity allocation. The receiver, however, can be any controlling object, for
example, a cost center, an order, or a project.
Direct activity allocation credits the sender cost center and debits the receiver
cost center using a secondary cost element (cost element category 43). This cost
element is already stored in the activity type master record. The activity allocation
value is obtained by multiplying the provided quantity with the planned price
of the period.
2010 © 2010 SAP AG. All rights reserved. 233 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
When an activity is allocated directly from a cost center to a controlling object
that is assigned to a different cost center or business area, you may notice that a
real-time reconciliation posting was made in FI. The reconciliation accounts that
were used are listed in the posting document.
Hint: Further information about real-time reconciliation is available in
the first lesson of the final unit of this handbook, which deals with some of
the functions in New General Ledger Accounting .
The Cross-Application Time Sheet (CATS) simplifies standardized,
cross-application time recording. The time sheet combines the existing functions
for recording working times from a number of applications in one transaction.
With CATS you can supply the following components with information about working times:
• Attendance and absence in SAP ERP Human Capital Management
• Internal activity allocation in Management Accounting
• Confirmations from Plant Maintenance, Program and Project Management,
and Customer Service
Figure 104: CATS
Internal employees and external service providers can use the time sheet to enter
their working time in the system. On one easy-to-use screen, working time data
can be entered centrally for all persons.
234 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
Working time is always entered in hours or clock times, and is always
person-related. In the SAP system, a personnel number is assigned to each internal
employee or external service provider. You can then create the minimum master
record required if you do not use SAP ERP Human Capital Management.
Users call the time sheet via specific data entry profiles. When you define these
profiles in Customizing, you can adjust the entry process to the level of knowledge
and field of activity of the user. You can use the field selection function for the
entry profiles to restrict the fields that are displayed on the entry screen.
Managing Project Costs
Expenses for project work need to be monitored by allocating an estimate for
the anticipated costs in the budget. For example, a marketing campaign for a
new product is estimated at a certain amount and you want to make sure that this
amount is not exceeded. By specifying a budget for the internal order for the
campaign and implementing availability control, you can monitor these costs and
prevent additional costs from being incurred.
The system recognizes the following budget types for internal orders:
• Original budget is the originally allocated budget.
• Budget updates include supplements and returns in cases where unforeseen
events make it necessary to correct the original budget.
• Current budget is the original budget plus all updates.
Figure 105: Budget Management
As well as updating the budget, you can also make changes to the original budget.
You can lock the original budget using status management. To do this, create a
user status that does not allow budgeting but does allow supplements and returns.
2010 © 2010 SAP AG. All rights reserved. 235 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
When you allocate or update a budget, this transaction is documented in an
item. You can display the budget items from the budget screen. To facilitate the
budgeting process, you can enter explanatory text for the budget items.
You must define a number range for your budget documents in Customizing.
The existing standard number range 04 is used to assign a number range to
order budgeting.
When you save the budget, the system checks whether the sum of the annual
values matches the total value of the order.
Figure 106: Availability Control
In addition to other budgeting parameters, the budget profile manages availability
control. In the budget profile, you can specify when availability control is to be
activated. Availability control can be run against the annual value or the total
value of the budget.
Tolerance limits determine how the system reacts to variances in the budget. If, as
the above figure shows, the budget has been consumed (100%), the SAP system
outputs a warning message and sends an e-mail to the budget manager. If the
budget variance is 10% (110%), the SAP system outputs an error message and
the transaction that would result in a variance cannot be posted. Tolerance limits
are defined separately for each budget profile. You can set different tolerance
limits for different actions.
If you select the action Warning with mail , you must specify a budget manager
in Customizing. If no budget manager is defined, the system generates an error
message.
You can exclude particular cost elements from the availability check.
236 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
Exercise 12: Postings in Overhead Cost
Controlling
Exercise Objectives
After completing this exercise, you will be able to:
• Use the repost line items function to correct postings that were made to the
wrong Management Accounting object from other application components
such as Financial Accounting
• Analyze the combined quantity and value flow of a direct activity allocation
• Use the Cross-Application Time Sheet
• Check the budgeting and availability control for overhead cost orders
Business Example
The accountant assigned the wrong posting object during an FI posting. You
would like to correct this without reversing the FI posting.
Task 1:
Make a posting in Financial Accounting.
1. Enter a G/L account posting with today's date for the payment of purchased
services for German company code 1000 in the currency EUR. Enter a debit
amount of 6000 for G/L account 417000 and assign the posting to service
cost center IT-## . Use the tax code V0. Enter another debit amount of
3000 for G/L account 420000 and assign the posting to service cost center
IT-## . Use G/L account 113100 to make the offsetting entry for the credit
amount. Post the document.
2. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for the cost center IT-## to
check whether or not the postings for cost elements 417000 and 420000
were correct.
3. You discover that a posting error has been made. In the previous posting, a
partial amount of 500 of cost element 420000 ought to have been posted to
cost center EDUC-## .
You therefore now post this amount, with reference to the FI document, from
cost center IT-## to cost center EDUC-## . The cost element is 420000 .
Post your document.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 237 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
4. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for service cost center IT-##
and cost center EDUC-## . Make sure that the service cost center was
credited with the amount of 500 and the education cost center was debited
by the same amount.
Task 2:
Process an activity allocation using the following information and see how it
affects your service cost center.
Note: Your consulting cost center has expended 15 hours of junior
consulting and 5hours of senior consulting holding courses for the
education cost center. The consultants entered these times in an activity
report (paper document) and passed this on to the internal accounting
department.
1. Create a direct activity allocation to allocate 10 hours of activity type
JCON## and 5hours of activity type SCON## from cost center CONS-##
to cost center EDUC-## . Use the entry variants cost center and list entry.
Post your document.
2. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for service cost center
CONS-## . Check the quantity and cost flows from the consulting cost center
to the education cost center.
Note: If you scroll to the end of the report, you can see the quantities
of the activity type allocation.
3. Place the cursor on the activity allocation credit item and drill down on the
actual line item report. Call the accounting document and check with layout “/AC990” whether a real-time reconciliation took place in FI.
Note: If layout /AC990 is not available, use your own layout
Group-## :
Continued on next page
238 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
Task 3:
Create an entry using the Cross-Application Time Sheet and transfer the
information to Management Accounting. Review the results in the service cost
center.
1. Use the Cross-Application Time Sheet (CATS) with data entry profile CO2
to record the consulting activity JCON## that your employee with personnel
number 10## provided for the education cost center EDUC-## .
Note: If a message appears telling you that you have to assign a
plant, skip it by choosing Continue .
Use today as the key date. The sender cost center is CONS-## and the
employee has provided 8hours of consulting services today.
Switch to the release view, select the row you entered, and choose Release .
Save the time entry.
2. Update the time sheet data directly.
Note: You can do this because the settings in the entry profile mean
the activity you entered does not require approval.
Transfer the time sheet data for your entry date to Management Accounting
only . Use the personnel number of your employee ( 10## ) for the selection.
Make a note of the Management Accounting document number.
3. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for cost center CONS-## .
Open the Cost Centers: Actual Line Items report for the allocation cost
element 626100 and drill down to the source document.
Task 4:
Post entries against a budget.
1. Enter an original budget for the current fiscal year and, if available, for the
entire budget period for your trade fair order (see the data sheet for the order
number). Specify a budget of 10000 .
2. Make sure the trade fair order is released.
Note: Before you can post actual costs to your trade fair order, you
must make sure that the order is released.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 239 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
3. Enter a G/L account posting with today's date for the purchase of services
for company code 1000 in currency EUR. Enter a debit amount of 9800
for G/L account 417000 (input tax code V0) and assign the posting to your
trade fair order.
Specify that the offsetting credit is to be made to G/L account 113100 . Post
the document and note the budget warning message.
4. Enter one more G/L account posting, with today as the date, for the purchase
of services for company code 1000 in currency EUR. Enter a debit amount
of 1000 for G/L account 417000 and assign the posting to your trade fair
order. Specify that the offsetting credit is to be made to G/L account 113100 .
Post the document and note the budget warning message.
Post another EUR 1,000 to your order. How does the system react?
5. Review the e-mail messages.
Note: You will receive messages only if you have entered yourself
as the budget manager in Customizing. The instructor will display
the e-mail messages that were automatically issued as a result of
the availability control settings.
240 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
Solution 12: Postings in Overhead Cost
Controlling
Task 1:
Make a posting in Financial Accounting.
1. Enter a G/L account posting with today's date for the payment of purchased
services for German company code 1000 in the currency EUR. Enter a debit
amount of 6000 for G/L account 417000 and assign the posting to service
cost center IT-## . Use the tax code V0. Enter another debit amount of
3000 for G/L account 420000 and assign the posting to service cost center
IT-## . Use G/L account 113100 to make the offsetting entry for the credit
amount. Post the document.
a) Choose Accounting → Financial Accounting → General Ledger →
Posting → Enter G/L Account Document .
b) Enter the following data:
Field Value or Action
Document Date Today
Company Code 1000 (if requested by system)
Currency EUR
G/L Account 417000 in first row
D/C Debit
Amount in doc. curr 6000
Tax Code V0
Cost Center IT-##
G/L Account 420000
D/C Debit
Amount in doc. curr 3000
Cost Center IT-##
G/L Account 113100
D/C Credit
Amount in doc. curr *
Profit Center 9999
c) Choose Enter . Choose Post .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 241 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
2. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for the cost center IT-## to
check whether or not the postings for cost elements 417000 and 420000
were correct.
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) IT-##
c) Choose Execute .
3. You discover that a posting error has been made. In the previous posting, a
partial amount of 500 of cost element 420000 ought to have been posted to
cost center EDUC-## .
You therefore now post this amount, with reference to the FI document, from
cost center IT-## to cost center EDUC-## . The cost element is 420000 .
Post your document.
a) Choose Accounting → Controlling → Cost Center Accounting →
Actual Postings → Repost Line Items → Enter .
b) Enter the following data:
Field Value or Action
Document Number The number of your
accounting document
according to the
previous posting
Company Code 1000
Fiscal Year Current year
c) Choose Execute .
Continued on next page
242 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
d) Enter the following data:
Field Value or Action
Value Transaction Currency 500 (the amount of 3000 is
changed)
Account Assignment 1 Replace IT-## by EDUC-##
(in the second row).
e) Choose Post .
4. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for service cost center IT-##
and cost center EDUC-## . Make sure that the service cost center was
credited with the amount of 500 and the education cost center was debited
by the same amount.
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) IT-##
c) Choose Execute .
d) Run the report again for cost center EDUC-##.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 243 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Task 2:
Process an activity allocation using the following information and see how it
affects your service cost center.
Note: Your consulting cost center has expended 15 hours of junior
consulting and 5hours of senior consulting holding courses for the
education cost center. The consultants entered these times in an activity
report (paper document) and passed this on to the internal accounting
department.
1. Create a direct activity allocation to allocate 10 hours of activity type
JCON## and 5hours of activity type SCON## from cost center CONS-##
to cost center EDUC-## . Use the entry variants cost center and list entry.
Post your document.
a) Choose Accounting → Controlling → Cost Center Accounting →
Actual Postings → Activity Allocation → Enter .
b) Enter the following data:
Field Value or Action
Document Date Today
Version 0
Screen Variant Cost Center
c) Choose List Entry .
d) Enter the following data in the first and second rows:
Column Row 1 Row 2
Sender Cost Center CONS-## CONS-##
Sender Activity Type JCON## SCON##
Receiver Cost Center EDUC-## EDUC-##
Total Quantity 10 5
e) Choose Post .
Continued on next page
244 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
2. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for service cost center
CONS-## . Check the quantity and cost flows from the consulting cost center
to the education cost center.
Note: If you scroll to the end of the report, you can see the quantities
of the activity type allocation.
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) CONS-##
c) Choose Execute .
d) Scroll to the end of the report to see the quantities of the activity type
allocation.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 245 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
3. Place the cursor on the activity allocation credit item and drill down on the
actual line item report. Call the accounting document and check with layout
“/AC990” whether a real-time reconciliation took place in FI.
Note: If layout /AC990 is not available, use your own layout
Group-## :
a) Double-click on the credit line in your cost center report and drill down
on the actual line item report.
b) Choose Environment → Accounting Documents and double-click on
the accounting document number . The system displays the Entry View
for your FI document.
Select layout “/AC990”. The system displays the cost centers and
profit centers used.
c) Choose General Ledger View . The system shows that clearing accounts
were used to perform the real-time reconciliation and that the document
for each profit center has a zero balance and is thus cleared.
Task 3:
Create an entry using the Cross-Application Time Sheet and transfer the
information to Management Accounting. Review the results in the service cost
center.
1. Use the Cross-Application Time Sheet (CATS) with data entry profile CO2
to record the consulting activity JCON## that your employee with personnel
number 10## provided for the education cost center EDUC-## .
Note: If a message appears telling you that you have to assign a
plant, skip it by choosing Continue .
Use today as the key date. The sender cost center is CONS-## and the
employee has provided 8hours of consulting services today.
Continued on next page
246 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
Switch to the release view, select the row you entered, and choose Release .
Save the time entry.
a) Choose Accounting → Controlling → Cost Center Accounting →
Actual Postings → Time Sheet → CATS Classic → Record Working
Times .
b) Enter the following data:
Field Value or Action
Data Entry Profile CO2
Personnel Number 10##
c) Choose Enter Times . If a message appears telling you that you have to
assign a plant, skip it by choosing Continue .
d) Enter the following data:
Field or Column Value or Action
Sender Cost Center CONS-##
Activity Type JCON##
Receiver Cost Center EDUC-##
e) In the column containing today's date, enter 8. Choose Release View (at
the bottom of the screen).
f) Select your entry row and choose Release (in the toolbar at the top of
the screen). Choose Save . Go back to the main menu.
2. Update the time sheet data directly.
Note: You can do this because the settings in the entry profile mean
the activity you entered does not require approval.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 247 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Transfer the time sheet data for your entry date to Management Accounting
only . Use the personnel number of your employee ( 10## ) for the selection.
Make a note of the Management Accounting document number.
a) Choose Accounting → Controlling → Cost Center Accounting →
Actual Postings → Time Sheet → Transfer → Accounting .
b) Enter the following data:
Field Value or Action
Personnel Number 10##
Date Today
Posting Date Today
c) Choose Execute .
The system displays a log with a message informing you that a document has been posted.
3. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0. Execute the report for cost center CONS-## .
Open the Cost Centers: Actual Line Items report for the allocation cost
element 626100 and drill down to the source document.
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) CONS-##
c) Choose Execute .
d) Double-click the report line for cost element 626100 . Double-click
on the Cost Centers: Actual Line Items report. Double-click the line
item with a quantity of 8.
Continued on next page
248 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
Task 4:
Post entries against a budget.
1. Enter an original budget for the current fiscal year and, if available, for the
entire budget period for your trade fair order (see the data sheet for the order
number). Specify a budget of 10000 .
a) Choose Accounting → Controlling → Internal Orders → Budgeting
→ Original Budget → Change .
b) In the Order field, enter the number of your trade fair order. Choose
Enter .
c) Enter 10000 as the order budget for the current fiscal year and, if
available, for the entire budget period. Choose Save .
2. Make sure the trade fair order is released.
Note: Before you can post actual costs to your trade fair order, you
must make sure that the order is released.
a) Choose Accounting → Controlling → Internal Orders → Master Data
→ Special Functions → Order → Change .
b) Enter your order number, and choose Master Data .
c) Go to the Control Data tab.
If the order has not been released, choose Release (to the right of the
System Status field). The status changes and is now REL or released.
d) Save the order.
3. Enter a G/L account posting with today's date for the purchase of services
for company code 1000 in currency EUR. Enter a debit amount of 9800
for G/L account 417000 (input tax code V0) and assign the posting to your
trade fair order.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 249 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Specify that the offsetting credit is to be made to G/L account 113100 . Post
the document and note the budget warning message.
a) Choose Accounting → Financial Accounting → General Ledger →
Posting → Enter G/L Account Document .
b) Enter the following data:
Field Value or Action
Document Date Today
Company Code 1000 (if requested by system)
Currency EUR
G/L Account 417000 in first row
D/C Debit
Amount in doc. curr 9800
Tax Code V0
Order Your trade fair order
G/L Account 113100
D/C Credit
Amount in doc. curr 9800
c) Choose Enter . Choose Post .
d) Note the budget warning message.
Choose Enter to clear the warning message.
e) Remain in the G/L Account Posting screen for the next exercise step.
The warning message indicates that your order budget is almost
exhausted.
4. Enter one more G/L account posting, with today as the date, for the purchase
of services for company code 1000 in currency EUR. Enter a debit amount
of 1000 for G/L account 417000 and assign the posting to your trade fair
order. Specify that the offsetting credit is to be made to G/L account 113100 .
Post the document and note the budget warning message.
Continued on next page
250 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings in Overhead Management Accounting
Post another EUR 1,000 to your order. How does the system react?
a) Choose Accounting → Financial Accounting → General Ledger →
Posting → Enter G/L Account Document .
b) Enter the following data:
Field Value or Action
Document Date Today
G/L Account 417000 in first row
D/C Debit
Amount in doc. curr 1000
Tax Code V0
Order Your trade fair order
G/L Account 113100
D/C Credit
Amount in doc. curr 1000
c) Choose Enter . Choose Post .
d) Note the budget warning message.
Choose Enter to clear the warning message.
The warning message indicates that your order budget has been
exceeded for the current fiscal year. If you try to post another amount
of 1,000, the system will display an error message.
5. Review the e-mail messages.
Note: You will receive messages only if you have entered yourself
as the budget manager in Customizing. The instructor will display the e-mail messages that were automatically issued as a result of
the availability control settings.
a) To display the e-mail messages, choose Office → Workplace → Inbox .
b) Choose Unread Documents .
2010 © 2010 SAP AG. All rights reserved. 251 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Lesson Summary
You should now be able to:
• Post Management Accounting reposting documents
• Explain the purpose of a direct activity allocation
• Post a direct activity allocation
• Explain the purpose of entering time sheets.
• Describe the steps for processing time sheets
• Set up a budget for an internal order
• Post documents to an internal order to demonstrate the effects of availability
control
252 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
Lesson: Transaction-Based Postings for Services on an
Internal Order with Revenue
Lesson Overview
This lesson introduces examples of postings that normally arise through the sale
of services. You will learn how to create an internal order with revenue and how
to post costs and revenue to the order.
Lesson Objectives
After completing this lesson, you will be able to:
• Create an internal order with revenue
• Post the costs for material consumption and activities
• Settle the order with costs and revenues to Profitability Analysis.
Business Example
An enterprise creates intangible goods such as consulting services and sells these
to customers. Since the enterprise is relatively small and operates with simple
business processes, the production logistics and sales modules are not used.
The main elements of cost object controlling still need to be mapped, however:
• Preliminary costing: you want to know how much the activity output process
will cost before the process begins.
• Simultaneous costing: resource consumption needs to be valuated
immediately and visible as costs on the cost object. This enables unwanted
developments to be identified particularly in connection with longer running
activity output processes.
• Final costing: after the activity output process has been concluded, you want
to see the total costs and analyze any variances between the plan and actual
calculation.
Selecting the Right Cost Object Controlling Scenario
In Cost Object Controlling you first need to consider the activity output process
and then select the most suitable cost object to carry out this process.
Although activity output processes differ from enterprise to enterprise or among
different industries in terms of “logistics”, they are all relatively similar from a
controlling perspective. Regardless of how the activity output appears (product or
service, for example), preliminary costing, simultaneous costing, and final costing
2010 © 2010 SAP AG. All rights reserved. 253 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
are always part of the process. Product Cost Controlling can therefore be regarded
as a tool box containing many cost objects and functions. You choose the most
appropriate cost object and functions in accordance with your cost accounting
objectives and the data (quantity structures) that you can provide. The result is
your cost object controlling for the particular activity output process. You might
choose a different cost object for another activity output process (product group or
service for example), in which case the scenario would be different.
Figure 107: Product Cost Controlling Scenarios
Product cost controlling scenarios can basically be divided into three groups:
• By lot size using Product Cost by Order
• By period using Product Cost by Period
• By sales order using Product Cost by Sales Order
With the first group, you consider the production of materials or intangible goods
based on a specific quantity (lot size). Each individual activity output process is
self-contained. Consequently, subsequent activity output processes do not have to
follow immediately after the first one. Ordering costs can normally be included in
this scenario too.
The second group presupposes a continuous production process (such as an
assembly line). Consequently, this activity output process normally has no lot
sizes. Instead, you count the yield that was produced in a given period. Since lot
sizes are not used, ordering costs do not really fit into this scenario either.
With the third group, you focus on an activity output process for a sales order.
This can also include intangible goods such as services.
254 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
Whilst it is possible to envisage all three groups for material goods, the production
of intangible goods only fits in to the sales-order-related production scenario since
such goods cannot be placed in storage.
Figure 108: Cost Object Controlling with Internal Order or Project with
Revenue
Whether the sales order is actually mapped by a “sales order” object in SAP
ERP depends on whether the “Sales and Distribution” (SD) module is activated.
Alternatively, you can use other cost objects with revenue, such as internal orders
or projects with revenue with at least one billing element. In this case, however,
standard logistics functions in the SD module such as shipment to customer and
billing are not possible.
2010 © 2010 SAP AG. All rights reserved. 255 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 109: Example of a Project Structure
Whereas an internal order represents merely a single account assignment object,
the project enables you to structure the undertaking and evaluate subprojects with
the respective WBS element both separately and as part of the overall project.
Thus the project structure constitutes an excellent report structure that can be
used in reporting.
From an accounting perspective, you can use these objects to
• calculate planned and actual costs
• allocate actual costs to other objects in the SAP system
• analyze planned and actual costs.
Typical Cost Object Controlling Activities Using an
Internal Order with Revenue as an Example
Sales-order-related production is an activity output process that can refer to
both material and intangible goods. A common feature in this case is that the
activity output process is not rushed in order to find a customer at a later stage. By
implication, sales-order-related production assumes that the customer first places
an order before the activity output process begins.
If the processes are simple, such as the shipment of goods from stock, the
processing itself can be a purely logistical. You would not describe this as an
activity output process, and would dispense with the need for detailed controlling
in this case (see the next lesson for more information). However, with the
provision of a service or manufacturing to customer specifications, analyzing the
256 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
individual activity output processes is important. I this case, you need to use an
object that can assume the costs of the process as well as any revenues that may
accrue. This is known as “sales-order-related production with controlling”.
In our example, we want to output the activity under the assumption that neither
Production Planning (PP) not Sales and Distribution (SD) are being used. We
therefore choose an internal order with revenue as a suitable object for this
scenario. If the scope of the undertaking were larger, we could of course use a
project that has been structured accordingly.
Figure 110: Process Flow with an Internal Order with Revenue
2010 © 2010 SAP AG. All rights reserved. 257 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
The standard process flow is as follows:
1. The internal order is created in the system with a suitable order type. If
revenues are expected, you need to set the “with revenue” indicator in the
master record. You can generally use Profitability Analysis as a suitable
settlement receiver for a cost object.
2. Calculate the costs and save these costs as plan values on the cost object.
Note: If the cost object has created (CRTD) status, it must be
released before you can make actual postings to it.
3. You can take the required materials from stock.
Note: The sequence of the actual postings is not predefined. Instead,
it is derived from the business transactions.
4. Purchased external activities or externally procured goods can result in goods
and invoice receipts that are assigned on the cost object.
5. The activity output consumes internal activities from cost centers. You can
post this activity output manually or with the time sheet.
6. Allocate the overhead rates and processes as periodic transactions.
7. Optional: With long-running activity output processes, you can run a results
analysis (period-based accrual calculation). For further details, see the next
lesson.
8. Settle the cost object at the end of the period.
These basic steps are always carried out in a similar way for each cost object, and
can be regarded as the “core process in cost object controlling”.
Creating an Order, Planning, and Preliminary Costing
The internal order is created in the system with a suitable order type. If revenues
are expected, you need to set the “with revenue” indicator in the master record.
You can generally use Profitability Analysis as a suitable settlement receiver for
a cost object.
258 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
Figure 111: Planning Tools for an Internal Order
Once you have created the internal order, you can begin to plan it. Different tools
are available for this:
• Overall planning: You can define a total plan value for the order here
• Primary/secondary cost planning: You define plan values for each cost
element here, in a similar way to planning in Overhead Cost Controlling
• Unit costing: This tool belongs to the costing group and determines the exact
costs of the order for each resource. The results are updated to the order as
plan values.
• Easy Cost Planning: This is a modern form of unit costing using a predefined
costing model. The results are updated to the order as plan values here too.
Note that different rules apply to costing (such as costing variants, cost estimate
item types) compared with planning (plan layouts, plan versions). Note also that
cost estimates are not plan-integrated.
2010 © 2010 SAP AG. All rights reserved. 259 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 112: Unit Costing
Unit costing constitutes a quantity structure that is valuated using a costing variant.
Each item is given a unique item category. This in turn tells the system which
integration object it can use for the item. Thus, item category “M” references the
corresponding material master record. Item category “V” has a special status,
since it represents an item that has no reference to another integration object.
Figure 113: Easy Cost Planning Easy Cost Planning considerably reduces the number of manual entries required
even without a logistics quantity structure (BOM and routing). This tool offers
advantages particularly with standardized activity output processes.
260 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
Figure 114: Costing Model
You can create quantity structures with reference to ABC variables or functions
that you have defined yourself in a costing model. When preliminary costing of
the order takes place later, only the variable values are queried. The cost estimate
is otherwise determined automatically. Afterwards, you can still adjust the costing
result manually to meet your requirements.
Simultaneous Costing
Figure 115: Integrating the Internal Order with Revenue
2010 © 2010 SAP AG. All rights reserved. 261 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
When you perform the activity output process, all resource consumption is
valuated and posted as costs on the cost object. Typical sources of actual costs are:
• Material withdrawal from stock: The material consumption is valuated and
the costs posted on the cost object. The corresponding posting in FI would
be “stock consumption”.
• Activity allocation, process allocation: Actual activity quantities from cost
centers and process quantities from ABC processes are allocated to the cost
object. The corresponding cost centers and processes are credited in return.
• External procurement of goods and services: Materials and services are
purchased. The costs are debited to the cost object when the goods or
invoices are received.
Figure 116: Execution Services
If you have used “Easy Cost Planning” to perform your planning, you can use this
quantity structure as a template for actual postings. With “Execution Services”
you save time entering data manually. You can also have the planned resources for
the actual postings proposed automatically by the system.
With these allocations, you collect the costs of the activity output process on
the cost object.
Without SD, customer invoices are normally created manually. You can trigger the
corresponding posting in FI manually, and the revenues appear on the cost object.
262 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
Figure 117: Settling Orders
Consequently, the costs and revenues for the activity output process are collected
on the internal order with revenue and are available for analysis. The order is
settled at the end of the period. You define a settlement rule for this in the order
master record now at the latest. Cost objects are normally settled in Profitability
Analysis.
Menu Paths for Make-to-Stock Production
Action Menu path
Analyze an internal order Accounting → Controlling → Product Cost
Controlling → Cost Object Controlling
→ Intangible Goods and Services →
Information System → Reports for Costs for
Intangible Goods and Services→ Detailed
Reports → For Internal Orders with
Revenues
Create an internal order with revenue
Accounting → Controlling → Product Cost Controlling → Cost Object Controlling
→ Intangible Goods and Services → Cost
Object → Order (with Revenue) → Create
2010 © 2010 SAP AG. All rights reserved. 263 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Action Menu path
Enter a posting to a G/L account Accounting → Financial Accounting →
General Ledger → Posting → Enter G/L
Account Document
Post a goods issue Logistics → Materials Management →
Inventory Management → Goods Movement → Goods Issue
Post an activity allocation Accounting → Controlling → Product Cost
Controlling → Cost Object Controlling →
Intangible Goods and Services → Actual Postings
264 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
Exercise 13: Postings for a Make-to-Order
Service on an Internal Order with Revenue
Exercise Objectives
After completing this exercise, you will be able to:
• Describe the processing steps for the sale of a service using an internal order
with revenue
Business Example
Your customer would like an on-site consultation. The matter to be considered
is the design of an IT system. Since you have neither a material master record
for this service, nor are you using the SD module, you decide to use an internal
order with revenue as the cost object.
Task 1:
Use the Order Manager to create an internal order with revenue and Easy Cost
Planning (ECP) to perform preliminary costing.
1. Create an internal order with revenue with order type 0500 . Enter
“Consulting ## for customer 1171” as the order description. Use 1000
(Frankfurt), business area 8000 (external services), functional area 0100 ,
object class production and profit center 1600 (external service). Go to the
“Control Data” tab page and make sure that the order has been set up for
revenue postings. Go to the “Period-End Closing” tab page and enter the
costing sheet COGM and the overhead key SAP10 .
Since the customer has already placed the order, you can release it now as
well.
2. Enter a settlement rule to Profitability Analysis. Enter customer 1171 and
product R-Service (optional) as the characteristic values and let the system
derive the other values automatically. After this, you can save the order.
3. You now need to perform a preliminary costing for the order. You decide to
use a planning form (costing model) in Easy Cost Planning (ECP) for this.
Double-click on your order in the worklist and switch to change mode.
Choose Costing , select the planning form ZPS001 , and create a cost estimate
with it. Enter 140 for internal labor hours and additional costs of 3,000.
Enter a new costing item with item category M, resource AZ2-742 , plant
1200 , and quantity 2.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 265 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Once you have transferred the new entry, exit the cost estimate and save
the order including the cost estimate.
Task 2:
Plan revenues on your internal order.
1. Plan revenue of 25,000 with cost element 800000 on your internal order.
Task 3:
Analyze the planned costs on the internal order.
1. Call a Plan/Actual Comparison report and take a look at the values.
2. Define a new user-specific layout with the name GR## to sort planned
costs according to size (with the lowest value at the top). Save this as a
user-specific default setting.
Task 4:
After they return from the customer site, your employees normally create a report
of the activities they completed. You decide that they should enter this information
using the resource list planned with ECP.
1. Branch from your internal order to the cost estimate. Then choose Execution
Services .
2. Post material consumption: Select the corresponding service and post the
material consumption as specified in the plan. Take a look at the documents
that have been generated.
3. Activity allocation: Choose the corresponding service and update the activity
and process allocations. Increase one item by 2 hours and post it. Then take
a look at the documents that have been generated.
Task 5:
Post other costs and revenue.
1. Use Financial Accounting to post other additional costs of 15,400 with cost
element 466000 against bank clearing account 113100. To keep things
simple, ignore the input tax.
2. Once the service has been provided you issue a bill to the customer, which
the customer pays by bank transfer. From Financial Accounting, post
revenue of 25,000 net with revenue element 800000 to your bank clearing
account 113100. To keep things simple, ignore the output tax.
Continued on next page
266 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
Task 6:
Analyze the costs on the internal order.
1. Call a Plan/Actual Comparison report and take a look at the values.
2010 © 2010 SAP AG. All rights reserved. 267 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Solution 13: Postings for a Make-to-Order
Service on an Internal Order with Revenue
Task 1:
Use the Order Manager to create an internal order with revenue and Easy Cost
Planning (ECP) to perform preliminary costing.
1. Create an internal order with revenue with order type 0500 . Enter
“Consulting ## for customer 1171” as the order description. Use 1000
(Frankfurt), business area 8000 (external services), functional area 0100 ,
object class production and profit center 1600 (external service). Go to the
“Control Data” tab page and make sure that the order has been set up for
revenue postings. Go to the “Period-End Closing” tab page and enter the
costing sheet COGM and the overhead key SAP10 .
Since the customer has already placed the order, you can release it now as
well.
a) Choose Accounting → Controlling → Internal Orders → Master Data
→ Order Manager
b) Choose “Create” (blank sheet icon) and enter the order type “0500”.
c) Enter the following data:
Field Value or Action
Description Consulting ## for
customer 1171
Company Code 1000
Business Area 8000
Functional Area 0100
Object Class Production
Profit Center 1600
Choose the Control Data tab page.
Release the order.
The order has the “Revenue Postings” indicator set.
Continued on next page
268 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
2. Enter a settlement rule to Profitability Analysis. Enter customer 1171 and
product R-Service (optional) as the characteristic values and let the system
derive the other values automatically. After this, you can save the order.
a) Choose Settlement Rule .
b) Enter PSG in the Category field and double-click to branch to the
details screen. Now click on the icon next to Profitability Segment to
go to the detailed entry screen for the characteristics.
c) Enter 1171 for the customer and R-Service for the product
(optional).
d) Choose Derivation in order to derive as many of the remaining
characteristic values as possible automatically. Choose Continue to exit
the details screen. Return to the master data for the order and save
your order.
3. You now need to perform a preliminary costing for the order. You decide to
use a planning form (costing model) in Easy Cost Planning (ECP) for this.
Double-click on your order in the worklist and switch to change mode.
Choose Costing , select the planning form ZPS001 , and create a cost estimate
with it. Enter 140 for internal labor hours and additional costs of 3,000.
Enter a new costing item with item category M, resource AZ2-742 , plant
1200 , and quantity 2.
Once you have transferred the new entry, exit the cost estimate and save
the order including the cost estimate.
a) Double-click on your order in the worklist, choose the Change icon
and then the Costing icon.
b) In the “With Planning Form” field, enter the value ZPS001 and choose
Create Cost Estimate .
c) Enter 140 for internal labor hours and 3,000 for additional costs.
Choose Confirm .
d) Choose Show/Hide Item View . In the item list, choose Append Row and
enter the following data in the new row: Item Category M, Resource
AZ2-742 , Plant 1200 , and Quantity 2. Choose Confirm to add the
new row to the costing structure.
Exit the costing and save your order.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 269 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Task 2:
Plan revenues on your internal order.
1. Plan revenue of 25,000 with cost element 800000 on your internal order.
a) Choose Product Cost Controlling → Cost Object Controlling →
Intangible Goods and Services → Planning → Order Planning →
Cost/Activity/Process Inputs → Change
Use planner profile SAPALL if prompted to do so.
Enter:
Field Value or Action
Version 0
From Period Current period
To Period Current period
Fiscal Year Current year
Order Number Your order number
Cost Element 800000
Choose Overview Screen .
Enter an amount of -25000 for Total Plan Costs for cost element
800000 and save the plan value.
Task 3:
Analyze the planned costs on the internal order.
1. Call a Plan/Actual Comparison report and take a look at the values.
a) Choose Product Cost Controlling → Cost Object Controlling →
Intangible Goods and Services → Information System → Reports for
Costs for Intangible Goods and Services→ Detailed Reports → For
Internal Orders with Revenues
Note: You can also add this report to your Favorites.
b) Enter your order number and choose “Cumulated”. Choose Execute.
Continued on next page
270 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
2. Define a new user-specific layout with the name GR## to sort planned
costs according to size (with the lowest value at the top). Save this as a
user-specific default setting.
a) Choose the Change Layout icon. Choose the Sort Order tab page
and then
b) transfer the Total Plan Costs column name and select Sort in Ascending
Order .
c) Save the layout under the name GR## as user-specific and as your
default setting .
Task 4:
After they return from the customer site, your employees normally create a report
of the activities they completed. You decide that they should enter this information
using the resource list planned with ECP.
1. Branch from your internal order to the cost estimate. Then choose Execution
Services .
a) Choose Product Cost Controlling → Cost Object Controlling →
Intangible Goods and Services → Cost Object → Order (with Revenue)
→ Change You can also use the Order Manager.
b) Enter your order number, and choose Master Data. On the next screen,
choose Costing .
c) Choose Show Execution Services .
2. Post material consumption: Select the corresponding service and post the
material consumption as specified in the plan. Take a look at the documents
that have been generated.
a) Select the Goods Issue execution service. The system now displays the
entries in your resource list that can be posted with this service. Select
the entries and choose Post .
b) Use the List on/off icon to display the document. Click on the document
number to call the line item and display the accounting documents
and the original document.
c) Take a look at the financial accounting document. Go to the General
Ledger View. A reconciliation posting was made, since the material
withdrawal was across profit centers. Calculate the subtotals from the
Profit Center column. Not only is the document balanced overall, it is
also balanced for each profit center.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 271 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
3. Activity allocation: Choose the corresponding service and update the activity
and process allocations. Increase one item by 2 hours and post it. Then take
a look at the documents that have been generated.
a) Select the Internal Activity Allocation execution service. The system
now displays the entries in your resource list that can be posted with
this service. Increase the quantity of an activity type by 2 hours. Select
the entries and choose Post .
b) Use the Refresh icon to display the document. Click on the document
number to call the line item and display the accounting documents by
choosing Goto → FI/CO Documents .
Task 5:
Post other costs and revenue.
1. Use Financial Accounting to post other additional costs of 15,400 with cost
element 466000 against bank clearing account 113100. To keep things
simple, ignore the input tax.
a) Choose Accounting → Financial Accounting → General Ledger →
Posting → Enter G/L Account Document .
b) Enter the following data:
Field Value or Action
Document Date Today
G/L Account 466000
D/C Debit
Amount in doc. curr 15400
Tax Code V0
Order Your order number
G/L Account 113100
D/C Credit
Amount in doc. curr *
Post the document.
Continued on next page
272 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on an Internal Order with Revenue
2. Once the service has been provided you issue a bill to the customer, which
the customer pays by bank transfer. From Financial Accounting, post
revenue of 25,000 net with revenue element 800000 to your bank clearing
account 113100. To keep things simple, ignore the output tax.
a) Choose Accounting → Financial Accounting → General Ledger →
Posting → Enter G/L Account Document .
b) Enter the following data:
Field Value or Action
Document Date Today
G/L Account 800000
D/C Credit
Amount in doc. curr 25000
Tax Code A0
Order Your order number
G/L Account 113100
D/C Debit
Amount in doc. curr *
Post the document and exit the transaction.
Task 6:
Analyze the costs on the internal order.
1. Call a Plan/Actual Comparison report and take a look at the values.
a) Choose Product Cost Controlling → Cost Object Controlling →
Intangible Goods and Services → Information System → Reports for
Costs for Intangible Goods and Services→ Detailed Reports → For
Internal Orders with Revenues
Note: You can also add this report to your Favorites.
b) Enter your order number and choose “Cumulated”. Choose Execute.
2010 © 2010 SAP AG. All rights reserved. 273 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Lesson Summary
You should now be able to:
• Create an internal order with revenue
• Post the costs for material consumption and activities
• Settle the order with costs and revenues to Profitability Analysis.
274 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
Lesson: Transaction-Based Postings for Services on a
Sales Order
Lesson Overview
This lesson introduces examples of postings that normally arise through the sale
of services. You will learn how to create a sales order and how to post costs and
revenue to the order using resource-related billing. You can also sell a product
from stock together with the service at the same time.
Lesson Objectives
After completing this lesson, you will be able to:
• Create a sales order for a service
• Optional: Create an additional sales order item for the sale of a product
• Post costs from different sources
• Perform resource-related billing
• Settle the sales order with sales revenues and costs for the service to
Profitability Analysis
Business Example
An enterprise creates intangible goods such as consulting services and sells these
to customers. It uses the Sales and Distribution module to process sales, but does
not use Production Planning. Together with the service, it may also sell some
products from stock.
The main elements of cost object controlling need to be mapped:
• Preliminary costing: you want to know how much the activity output process
will cost before the process begins.
• Simultaneous costing: resource consumption needs to be valuated
immediately and visible as costs on the cost object. This enables unwanted
developments to be identified particularly in connection with longer running
activity output processes.
• Final costing: after the activity output process has been concluded, you want
to see the total costs and analyze any variances between the plan and actual
calculation.
2010 © 2010 SAP AG. All rights reserved. 275 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Selecting the Right Cost Object Controlling Scenario
In Cost Object Controlling you first need to consider the activity output process
and then select the most suitable cost object to carry out this process.
Figure 118: Cost Object Controlling Scenarios
Although activity output processes differ from enterprise to enterprise or among
different industries in terms of “logistics”, they are all relatively similar from a
controlling perspective. Regardless of how the activity output appears (product
or service, for example), preliminary costing, simultaneous costing, and final
costing are always part of the process. Product Cost Controlling can therefore be
regarded as a collection of many cost objects and functions. You choose the most
appropriate cost object and functions in accordance with your cost accounting
objectives and the data (quantity structures) that you can provide. The result is
your cost object controlling for the particular activity output process. You might
choose a different cost object for another activity output process (product group or
service for example), in which case the scenario would be different.
276 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
Figure 119: Selling Products and Services
Optional: Selling a Product from Stock
You sell a product that you have in stock. Since this is not linked to an activity
output process in a controlling sense, it is sufficient here to create a sales order
item “without a CO object”, in other words, without a cost object. This processing
is therefore a pure logistics sale from stock that is only relevant to controlling
insofar as the revenues and costs of the sale are posted to the profit and loss
statement later with the billing document.
Figure 120: Selling a Product from Stock
2010 © 2010 SAP AG. All rights reserved. 277 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
With a pure sale from stock you do not need to procure the requirements for
the sales order before fulfilling the order. The shipment to the customer can be
made directly on the sales order, followed by the billing document. Billing is the
revenue recognition point. This also generates an open item in accounts receivable
accounting. The payment then made by the customer is really only relevant for
accounts receivable accounting.
Figure 121: Account Assignment with Sale from Stock
The warehouse stock is reduced with the shipment to the customer. These costs
are posted as cost of sales in FI. Since the sales order is not a cost object in our
example, however, the costs are not posted in CO. When the billing document is
issued, the revenues are posted in FI with an offsetting account assignment to
the customer.
278 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
Figure 122: Value Flow for Sales Order Processing Without Product Cost
by Sales Order
Since the sales order is not a cost object, the revenues cannot be posted to this sales
order here either. Instead, they are posted directly to the profit and loss statement.
You can use the “valuation” function in Profitability Analysis to calculate the
costs of the sale in accordance with these revenues. This is normally done by
transferring a standard price costing or sales order costing.
Selling Services with Sales Order Costing
You sell a service to the customer. To enable you to do this with sales orders in the
SD module, you have created material master records for these services.
2010 © 2010 SAP AG. All rights reserved. 279 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 123: Value Flow for Sales Order Processing with Product Cost by
Sales Order
First, you need to analyze the activity output process and compare the requirements
with the capabilities of the cost objects available in the SAP ERP system. If you
want to assign the costs and revenues for providing the service (for example,
installing software at the customer site) directly to the sales order you can do
this if you create the sales order item “with CO object”, that is, as a cost object.
You do this by choosing a suitable requirement type in the sales order item.
Since controlling takes place at item level, it makes no difference in this example
whether you create a new sales order for this or just add an item to an existing
sales order for the same customer.
Figure 124: Product Cost by Sales Order Functions
280 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
If you want to use other logistics functions, you may have to combine the sales
order with other objects. For example, you can
• add production orders to the sales order if you want to map the activity
output process with production BOMs and routings
• add networks to the sales order if you have specific scheduling requirements
for your activity output process
• add the sales order to a billing element for a project if you want to divide the
entire project into various sub-packages and use Project Management (PS)
tools for your activity output process.
The sales order itself can serve as the request to create a billing document based
on the actual resources used in providing the service (resource-related billing).
Consequently, you do not need to use a combination of cost objects in the above
example.
Typical Cost Object Controlling Activities Using a
Sales Order with Product Cost by Sales Order as an
Example
In this case, the sales order item is a cost object . An order-specific cost estimate
can exist for the cost object. Here, it is a sales order cost estimate, the results of
which are saved as planned values for the sales order.
Costs incurred by providing the service are allocated directly to the order item.
Examples of costs incurred include cost center activities, the consumption of
materials from stock, or externally procured goods and services.
The revenues accrued through the billing process will also be posted to the sales
order item. Costs and revenues are transferred to Profitability Analysis when
the cost object is settled.
Note: You can carry out a periodic results analysis for the cost object. In
this case, the results analysis data, not the posted costs and revenues, is
transferred to Profitability Analysis.
2010 © 2010 SAP AG. All rights reserved. 281 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 125: Process Flow with a Sales Order
The standard process flow is as follows:
1. The sales order is created in the system with a suitable order type. The
important thing here is to choose the appropriate requirement type for the
sales order item, so that this becomes a cost object. The settlement rule
for the sales order item mainly addresses Profitability Analysis and can be
generated automatically.
2. Calculate the costs and save these costs as plan values on the cost object.
3. You can take the required materials from stock.
Note: The sequence of the actual postings is not predefined. Instead,
it is derived from the business transactions.
4. Purchased external activities or externally procured goods can result in goods
and invoice receipts that are assigned to account on the cost object.
5. The activity output consumes internal activities from cost centers. You can
post this activity output manually or with the time sheet.
6. The billing document transfers revenues to the cost object. This billing
document can be based on prices from a price list or resource-related.
7. Allocate the overhead rates and processes as periodic transactions. 8. Optional: With long-running activity output processes, you can run a results
analysis (period-based accrual calculation).
9. Settle the cost object at the end of the period.
These basic steps are always carried out in a similar way for each cost object, and
can be regarded as the “core process in cost object controlling”. The sequence of
activities depends on the underlying business process.
282 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
Creating an Order, Planning, and Preliminary Costing
Create an order with an appropriate sales order type and a corresponding
requirement type.
Figure 126: Preliminary Costing of a Sales Order
You can perform preliminary costing for the sales order using unit costing or a
material cost estimate with a quantity structure (BOM, routing). If the item is a
cost object, you can update the results of the cost estimate as plan values for the
item. In this case, the costs can be analyzed in a planning report for the cost object.
2010 © 2010 SAP AG. All rights reserved. 283 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Simultaneous Costing
Figure 127: Integrating the Sales Order
When you perform the activity output process, all resource consumption is
valuated and posted as costs on the cost object. Typical sources of actual costs are:
• Material withdrawal from stock: The material consumption is valuated and
the costs posted on the cost object. The corresponding posting in FI would
be “stock consumption”.
• Activity allocation, process allocation: Actual activity quantities from cost
centers and process quantities from ABC processes are allocated to the cost
object. The corresponding cost centers and processes are credited in return.
• External procurement of goods and services: Materials and services are
purchased. The costs are debited to the cost object when the goods or
invoices are received.
• The billing process triggers the posting of revenues on the cost object.
284 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
Figure 128: Account Assignment for a Withdrawal from Stock
The material withdrawal reduces the stock quantity. The costs resulting from
this are assigned to the sales order. The costs are produced by multiplying the
withdrawal quantity by the price according to the price control in the material
master record.
Figure 129: Account Assignment for an Activity Allocation
With an activity allocation, and activity quantity valuated with the price of the
activity type is allocated to the sales order. The sender cost center is credited
accordingly.
2010 © 2010 SAP AG. All rights reserved. 285 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 130: Activity Allocation Using the Cross-Application Time Sheet
(CATS)
The Cross-Application Time Sheet has a flexibly definable entry screen for
recording the activities of your employees. You can use a number of customer exits
to define checks and other entry features. You can even access information from
the HR master record to derive default values and check values for the time sheet.
Figure 131: Resource-Related Billing
286 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
Resource-related billing is a function for calculating the billing amount based
on the actual resources posted and issuing a bill for that amount. Billing is the
revenue recognition point in Controlling.
Figure 132: The Resource-Related Billing Process
The costs of the sales order (consumption of internal resources) are converted into
external resources (material master records) using the dynamic item processor. A
separate item is created for each external resource in the billing request. Each item
is then subject to standard price determination in SD. The result is then processed
into an invoice. In the standard system, a separate invoice item is created for
each billing request item.
2010 © 2010 SAP AG. All rights reserved. 287 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 133: Flexibility Using the Dynamic Item Processor
You can use the dynamic item processor to convert costs and statistical key
figures into material master records. This means that you do not see the internal
description of the costs (cost center, activity type, cost element, plant, and so on)
with the internal transfer price at a later stage on the invoice, but rather the external
descriptions of the costs (text in the material master record) and the external prices
(found using price determination in SD).
Figure 134: Settlement
288 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
The sales order is settled at the end of the period in Profitability Analysis. More
information about this will be provided in the lesson “Period-End Closing in Cost
Object Controlling”.
Menu Paths for Posting Sales of Make-to-Order Services
Action Menu path
Create sales order Logistics → Sales and Distribution → Sales
→ Order → Create
Create billing document Logistics → Sales and Distribution → Sales → Order → Subsequent Functions → Billing
Document
Make an activity allocation for
a cost center
Accounting → Controlling → Product Cost Controlling → Cost Object Controlling
→ Product Cost by Sales Order → Actual
Postings → Activity and Business Process Allocation
Call the actual/plan report for sales orders
Accounting → Controlling → Product Cost Controlling → Cost Object Controlling →
Product Cost by Sales Order → Information System → Reports for Product Cost by Sales Order → Detailed Reports → For Sales
Order
2010 © 2010 SAP AG. All rights reserved. 289 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
290 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
Exercise 14: Postings for a Service on a
Sales Order
Exercise Objectives
After completing this exercise, you will be able to:
• Describe the steps involved in processing the sale of a service on a sales order
Business Example
Your customer orders a consulting service from you. To process the provision of
this service, you create a sales order.
Task 1:
Create a sales order for the consulting service. Since you want to analyze the
revenue on the sales order, the sales order item needs to be a cost object.
1. Create a standard order ( OR) for sales organization 1000 (Frankfurt). Enter
10 as the distribution channel and 00 as the division. The sold-to party and
ship-to party is the company Hitec AG ( 1171 ). The purchase order number
is1001## . The customer orders 80 hours of the service R-CONSULT
(consulting). Choose Enter .
2. Check the account assignment for the service at item level. Change the
results analysis key to SDOR1 . Display the settlement rule for settlement to
Profitability Analysis.
Note: Double-click the item number to navigate to order item level.
3. Prepare the resource-related billing that you will perform later by entering
DIP profile Z_AC050 on the Sales B tab page.
4. Enter a preliminary costing for your service.
Note: Costing variant PC04 should be displayed as the default
value. Use your base planning object R-SERVICE-## as a template.
Hint: If you have not created this base planning object, use
R-SERVICE-95 instead. In this case, change the cost center AC050
to CONS-## and the two activity types to JCON## and SCON##.
Increase the proposed activity quantity for the cost estimate by
approximately 10 % and add a material consumption of 2 pieces of
AZ2-742 from plant 1200.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 291 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Save the cost estimate and review the conditions again.
Task 2:
Your consultants take the material to the customer and perform the requested
service. On their return, they record the work they have performed. This leads to a
direct activity allocation to the sales order for the completed service.
Note: On their return, your employees are normally expected to record
the services they provided in a time sheet. However, if they only record
their activities on a sheet of paper, you have to enter a direct activity
allocation to the sales order.
1. Withdraw 2 pieces of material AZ2-742 from stock and post these as
consumption on your sales order.
2. Enter a direct activity allocation from cost centers CONS-## and SUPPORT
to your sales order item.
Allocate 64 hours of activity type JCON## , and 26 hours of activity type
SCON## , as well as 10 hours of activity type 1466 , to your sales order item.
Post the allocation.
3. Check the values and the line items of the sales order using the plan/actual
report for sales orders.
Hint: To call the plan/actual report for sales orders, choose Cost
Object Controlling → Product Cost by Sales Order and then the
detailed report in the information system.
Task 3: Bill the consulting service to the customer on the basis of the actual resources used
(resource-related billing). Due to the contractual agreement with the customer,
you do not include the senior consulting activities in the calculation at this point,
since these activities are only to be billed after all the consulting services have
been completed.
1. Create a billing request for your sales order. Delete the billing block and
include an order reason.
2. Create the billing document for your billing request.
Make a note of the billing document number and the billing date.
3. Check the accounting documents created for the billing document.
Display the billing document. Branch to the overview of the accounting
documents and analyze the accounting document and profit center document.
Continued on next page
292 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
4. Check the values and the line items of the sales order using the plan/actual
report for sales orders.
Hint: To call the plan/actual report for sales orders, choose Cost
Object Controlling → Product Cost by Sales Order and then select
the report in the Information System. This is the same report you
called earlier.
2010 © 2010 SAP AG. All rights reserved. 293 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Solution 14: Postings for a Service on a
Sales Order
Task 1:
Create a sales order for the consulting service. Since you want to analyze the
revenue on the sales order, the sales order item needs to be a cost object.
1. Create a standard order ( OR) for sales organization 1000 (Frankfurt). Enter
10 as the distribution channel and 00 as the division. The sold-to party and
ship-to party is the company Hitec AG ( 1171 ). The purchase order number
is1001## . The customer orders 80 hours of the service R-CONSULT
(consulting). Choose Enter .
a) Choose Logistics → Sales & Distribution → Sales → Order → Create .
b) Enter the following data:
Field Value or Action
Order Type OR
Sales Organization 1000
Distribution Channel 10
Division 00
Choose Item Overview .
c) Enter the following data:
Field Value or Action
Sold-To Party 1171
Ship-to Party 1171
PO Number 1001##
Material R-CONSULT
Order Quantity 80
d) Choose Enter .
The system creates a sales order with one item.
Continued on next page
294 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
2. Check the account assignment for the service at item level. Change the
results analysis key to SDOR1 . Display the settlement rule for settlement to
Profitability Analysis.
Note: Double-click the item number to navigate to order item level.
a) Choose the Account Assignment tab page and change the results
analysis key to SDOR1 .
b) Choose Settlement Rule .
c) Double-click on the line item.
d) Choose Profitability Segment to see the Profitability Analysis
characteristics.
e) Go back to the order item level.
3. Prepare the resource-related billing that you will perform later by entering
DIP profile Z_AC050 on the Sales B tab page.
a) Choose the Sales B tab page.
b) Enter Costs in the Billing Form field and Z_AC050 in the DIP
Profile field.
4. Enter a preliminary costing for your service.
Note: Costing variant PC04 should be displayed as the default
value. Use your base planning object R-SERVICE-## as a template.
Hint: If you have not created this base planning object, use
R-SERVICE-95 instead. In this case, change the cost center AC050
to CONS-## and the two activity types to JCON## and SCON##.
Increase the proposed activity quantity for the cost estimate by
approximately 10 % and add a material consumption of 2 pieces of
AZ2-742 from plant 1200.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 295 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Save the cost estimate and review the conditions again.
a) Double-click on the item number to call the details screen for the item
and choose Conditions .
b) Choose the Costing icon.
Costing variant PC04 should appear as the default value.
c) Enter R-SERVICE-## as the base planning object and choose Enter .
Increase a proposed activity quantity by approximately 10 % .
d) Choose Edit –> New Entries and use item category Mto add the
material consumption of 2pieces of AZ2-742 from plant 1200 .
e) Save the costing and review the conditions again at order item level.
The costing result was transferred to price determination with condition
type EK02. A sales price was calculated automatically under condition
PR00 that had been previously maintained for the service. Hence you
now see the expected profit from the service.
f) Save the sales order and note the order number.
Task 2:
Your consultants take the material to the customer and perform the requested
service. On their return, they record the work they have performed. This leads to a
direct activity allocation to the sales order for the completed service.
Note: On their return, your employees are normally expected to record
the services they provided in a time sheet. However, if they only record
their activities on a sheet of paper, you have to enter a direct activity
allocation to the sales order.
1. Withdraw 2 pieces of material AZ2-742 from stock and post these as
consumption on your sales order.
a) Choose Logistics → Materials Management → Inventory Management
→ Goods Movement → Goods Issue .
b) Withdraw 2pieces of material AZ2-742 for your sales order
number/10 with movement type 291.
2. Enter a direct activity allocation from cost centers CONS-## and SUPPORT
to your sales order item.
Continued on next page
296 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
Allocate 64 hours of activity type JCON## , and 26 hours of activity type
SCON## , as well as 10 hours of activity type 1466 , to your sales order item.
Post the allocation.
a) Choose Accounting → Controlling → Product Cost Controlling →
Cost Object Controlling → Product Cost by Sales Order → Actual
Postings → Activity and Business Process Allocation → Enter .
b) Choose the “Sales Order/Cost Object” screen variant or another
appropriate screen variant.
c) Enter the following data:
Field Value or Action
Sender CCtr CONS-##
SAty Typ JCON##
Rec.Order /Rec Itm your Sales order number /10
Total quantity 64
Sender CCtr CONS-##
SAty Typ SCON##
Rec.Order /Rec Itm your Sales order number /10
Total quantity 26
Sender CCtr SUPPORT
SAty Typ 1466
Rec. Order /Rec Itm your Sales order number /10
Total quantity 10
d) Choose Post to save the allocation.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 297 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
3. Check the values and the line items of the sales order using the plan/actual
report for sales orders.
Hint: To call the plan/actual report for sales orders, choose Cost
Object Controlling → Product Cost by Sales Order and then the
detailed report in the information system.
a) Choose Accounting → Controlling → Product Cost Controlling →
Cost Object Controlling → Product Cost by Sales Order → Information
System → Reports for Product Cost by Sales Order → Detailed Reports
→ For Sales Order .
b) Enter your sales order number (from previous task) and execute the
report.
c) Drill down on the line items and check the accounting documents. A
reconciliation posting was made in Financial Accounting.
Continued on next page
298 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
Task 3:
Bill the consulting service to the customer on the basis of the actual resources used
(resource-related billing). Due to the contractual agreement with the customer,
you do not include the senior consulting activities in the calculation at this point,
since these activities are only to be billed after all the consulting services have
been completed.
1. Create a billing request for your sales order. Delete the billing block and
include an order reason.
a) Choose Logistics → Sales and Distribution → Sales → Order →
Subsequent Functions → Resource-Related Billing Document .
b) Enter your sales order number if it is not proposed as a default value by
the system. Choose Expenditure View .
c) Display the item. When you double-click on it, the system displays
both consulting services with the amounts to be billed underneath.
Since the conditions in the contractual agreement mean that you do not
want to bill the senior consulting services, overwrite the amount with 0
and enter the original amount in the Amount postponed field.
d) Choose Sales Price View . Display the SD item and the service items.
The price for the junior consulting service is determined, whilst no
billing amount is calculated for the senior consulting service.
e) Select Save Billing Request . The system creates the billing request and
displays it immediately in change mode for you to process it further.
Delete the entry in the Billing Block field and add the Order Reason
recommendation by customer on the Sales tab page.
Save your billing request.
2. Create the billing document for your billing request.
Make a note of the billing document number and the billing date.
a) Choose Logistics → Sales and Distribution → Sales → Order →
Subsequent Functions → Billing Document .
b) Enter the number of the billing request (if it is not proposed
automatically by the system). Choose Save .
c) Make a note of the billing document number and the billing date.
3. Check the accounting documents created for the billing document.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 299 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Display the billing document. Branch to the overview of the accounting
documents and analyze the accounting document and profit center document.
a) Choose Billing Document → Display .
b) Enter the billing document number. Choose Accounting Overview .
c) Branch to the accounting document and the profit center document by
clicking on the respective entry.
d) Go back to the billing document.
4. Check the values and the line items of the sales order using the plan/actual
report for sales orders.
Hint: To call the plan/actual report for sales orders, choose Cost
Object Controlling → Product Cost by Sales Order and then select
the report in the Information System. This is the same report you
called earlier.
a) Choose Accounting → Controlling → Product Cost Controlling →
Cost Object Controlling → Product Cost by Sales Order → Information
System → Reports for Product Cost by Sales Order → Detailed Reports
→ For Sales Order .
b) Enter your sales order number and execute the report.
c) Drill down on the line items and check the accounting documents. A
Financial Accounting document has been created.
300 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Sales Order
Lesson Summary
You should now be able to:
• Create a sales order for a service
• Optional: Create an additional sales order item for the sale of a product
• Post costs from different sources
• Perform resource-related billing
• Settle the sales order with sales revenues and costs for the service to
Profitability Analysis
2010 © 2010 SAP AG. All rights reserved. 301 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Lesson: Transaction-Based Postings for Services on a
Service Order (Optional Lesson)
Lesson Overview
This lesson introduces examples of postings that normally arise through the sale of
services. You will learn how to create a service order and how to post costs and
revenue to the order using resource-related billing.
Lesson Objectives After completing this lesson, you will be able to:
• Create a service order for a service
• Post material consumption with reference to a BOM and activity allocations
using confirmations
• Post costs from different sources
• Perform resource-related billing
• Settle the service order with sales revenues and costs for the service to
Profitability Analysis
Business Example
An enterprise creates intangible goods such as repair services or maintenance
and sells these to customers. It uses the CS component to manage the repair and
maintenance processes. To simplify procedures, the enterprise uses BOMs to
describe the necessary spare parts and procure them in time, when necessary.
Routings may also be used for regular maintenance services.
The main elements of cost object controlling need to be mapped:
• Preliminary costing: you want to know how much the activity output process
will cost before the process begins.
• Simultaneous costing: resource consumption needs to be valuated
immediately and visible as costs on the cost object. This enables unwanted
developments to be identified particularly in connection with longer running
activity output processes.
• Final costing: after the activity output process has been concluded, you want
to see the total costs and analyze any variances between the plan and actual
calculation.
302 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Selling Repair and Maintenance Services with the
Customer Service (CS) Component
You need a certain organizational structure in the CS component to perform repair
or maintenance services with CS.
Figure 135: Plant Structure
Plants in Logistics are assigned the roles of maintenance workers. A maintenance
planning plant can perform repair and maintenance services for a number of plants
within the enterprise as well as repair and maintenance for customers (Customer
Service).
2010 © 2010 SAP AG. All rights reserved. 303 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 136: Technical Objects
There are 4 types of technical objects:
• Functional locations are elements in a technical structure and represent areas
of a system in which objects can be installed. Technical structures can be
differentiated by functional, process-oriented, or spatial criteria.
• Pieces of equipment are individual objects that are regarded as autonomous
units.
• Serial numbers are issued to enable you to identify individual materials. The
inventory can be managed at serial number level.
• BOMs are used to structure functional locations and pieces of equipment
more accurately. They can also be labeled as assemblies and often describe
the components that need to be replaced when you perform maintenance.
You can use functional locations, equipment, and serial numbers as reference
objects for service notifications and service orders. By contrast, you can only use
assemblies in connection with a piece of equipment or functional location. The
different types of technical objects can be used individually or in combination.
304 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Figure 137: Equipment
A piece of equipment is a single, physical object that is managed as an independent
unit. It is usually an individual object (such as a pump, motor, or vehicle) that
needs regular maintenance. A piece of equipment can be linked to a material to
enable you to manage a stock inventory for this equipment.
Figure 138: Structure of the Equipment Master Record
2010 © 2010 SAP AG. All rights reserved. 305 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
You should always create an equipment master record for a technical object if
you need to:
• Manage individual data for the object
• Carry out prepared or scheduled maintenance or repair work for an object
and keep a record of this
• Collect and evaluate technical data for the object over longer periods of time
• Monitor the maintenance costs for the object
• Record operating times for this object at functional locations.
Figure 139: Material BOM
Material BOMs are always used in maintenance when several pieces of equipment
of similar construction need to be maintained. You therefore do not need to create
a separate BOM for each technical object. Instead, you create just one BOM
that is then assigned to the technical objects (equipment or functional location).
This avoids the use of redundant BOMs. Each material number is entered in the
equipment in the construction type field.
306 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Figure 140: Structure of the Functional Location
Functional locations are hierarchical structures that map a technical system, a
building, or part thereof. Thus functional locations can be structured according to
spatial (for example, building 1, building 2), technical (for example, press, press
frame, press hydraulics), or functional - in other words, process oriented - criteria
(for example, polymerization, condensation). Functional locations are created in
order to divide a technical facility or a building into maintenance units. You can
install equipment at these functional locations.
Figure 141: Functional Location Master Record
2010 © 2010 SAP AG. All rights reserved. 307 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
The master record for a functional location has a hierarchical structure (similar to
that of a project) and contains all the important data for describing the location and
for organizational assignment.
Figure 142: Customer Service Scenarios
In simple cases, you can process the carrying out of a service directly with the
service order. In this case, the costs and revenues are collected on the service
order. In more complex cases, or when you need additional sales order functions,
you can also combine the service order with a sales order. You then collect the
costs on the service order whilst the revenues are posted directly to the sales order
through billing. The choice of scenario is determined by the order type you choose
for your service order.
308 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Figure 143: Value Flow with the Service Order
In our example, we only want to use the service order and collect all costs and
revenues for the service on it.
Typical Customer Service Activities
Figure 144: Process Flow in Customer Service
2010 © 2010 SAP AG. All rights reserved. 309 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
The standard process flow is as follows:
1. A customer phones to report a malfunction. An employee in our customer
service office (for example, a call center) creates a service notification for
this (service request, malfunction report).
2. Since a technician is required to perform the work, the responsible employee
(planner, controller, team lead) creates a service order from the notification.
The data from the notification is copied to the order. The notification and
order are assigned to each other and can be processed together. Since each
order must contain at least one operation, you can maintain the data for the
first operation in the order header. The data for this operation is proposed
from the order header data. The service order is put in process immediately
by the person who created it. The system releases the order and the service
papers are printed.
3. After the work has been carried out, the working hours and materials
consumed are confirmed by the technician. The action taken, damage, and
cause is added to the notification. The technician closes the order and the
notification at the same time.
4. The employee responsible for order settlement creates a billing request from
the service order. This forms the basis for creating the billing document.
5. Once the order has been concluded, it can be settled, normally to Profitability
Analysis.
Creating an Order, Planning, and Preliminary Costing
Figure 145: Creating a Service Order with Reference to a Service Notification
310 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
The service notification is entered. Depending on the information available,
you can already select initial malfunction descriptions and measures from the
corresponding catalogs and store them. The service order is created with reference
to the service notification.
Figure 146: Service Order Views
A service order contains all the data you need to process the service. This includes the customer number as well as the number of the technical object to be
maintained. The order also contains at least one operation that describes the work
center where the maintenance work is to be performed and the activity types for
the maintenance work. In the component screen, you can enter the materials that
are required for the maintenance work or copy them from the BOM. Preliminary costing of the service order is done on the basis of this data so that you can see the
anticipated costs of the order on the costs screen. In this costs overview you can also enter estimated costs directly and display the actual costs and revenues for
the entire order at a later stage.
Simultaneous Costing
Item 20 in the figure above refers to a service that is provided at the customer site.
It entails installing the pumps that were sold in sales order item 10.
In this case, the sales order item is a cost object . An order-specific cost estimate
can exist for the cost object. Here, it is a sales order cost estimate, the results of
which are saved as planned values for the sales order.
2010 © 2010 SAP AG. All rights reserved. 311 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 147: Integrating the Service Order
When you perform the activity output process, all resource consumption is
valuated and posted as costs on the cost object. Typical sources of actual costs are:
• Material withdrawal from stock: The material consumption (for example,
spare parts) is valuated and the costs posted on the cost object. The
corresponding posting in FI would be “stock consumption”.
• Activity allocation, process allocation: Actual activity quantities from cost
centers and process quantities from ABC processes are allocated to the cost
object. The corresponding cost centers and processes are credited in return.
Logistics confirmation can also result in activity and process allocations.
• External procurement of goods and services: Materials and external services
are purchased. The costs are debited to the cost object when the goods or
invoices are received.
• The billing process triggers the posting of revenues on the cost object,
providing the service order was created as an order with revenue.
312 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Figure 148: Order Confirmation
All information relevant to carrying out the order is entered when the order is
created. When the activity is performed, or after it has been performed, the
technicians record the work they have carried out. They use the “Confirmation”
transaction to do this. Together with the confirmation, you can also post:
• Services provided by third parties
• Services provided by your own employees
• Material consumption based on BOMs, as well as unplanned consumption
from stock or through purchasing.
In addition, you can enter the following information for the service order:
• Changes to objects, such as the installation or removal of equipment. This is
documented as a change in the master data for the corresponding technical
object.
• Measurable values and counter readings. These are entered as measurement
documents for the technical object.
• Travel expenses: You can enter travel expenses using the “Travel
Management” component and post the costs on the service order.
2010 © 2010 SAP AG. All rights reserved. 313 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 149: Resource-Related Billing
During billing, the system generates dynamic items from the expenses data (for
example, material and personnel costs). Material master records for the dynamic
items are found in Customizing (dynamic item processor (DIP) profile). As sales
materials, these form the items in the generated billing request.
You can use single or collective processing to create the billing request. The
billing request you create can also be manually postprocessed. The billing
document is then issued on the basis of the billing request.
Figure 150: Cost and Revenue Analysis on the Service Order
314 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Costs and revenues (with the corresponding order type) are collected on the
service order and can be analyzed together directly in the order. Two views are
available for this:
• Estimated costs, planned and actual costs, and quantities are displayed in a
“value category overview”. A value category contains one or more cost
elements. You assign these in Customizing.
• Planned and actual costs as well as quantities can be displayed according to
cost element in cost reports such as a plan/actual comparison (CO report).
You can enter estimated costs manually providing the order has not yet been
released. Planned costs are determined on the basis of planning data for the order,
activities, and components. This occurs every time you save the order or execute
the costing function. By contrast, revenues cannot be planned or estimated. They
only appear when a billing request is created. Actual costs are the result of
confirmations and other cost postings to the order. Actual revenues result from the
creation of billing documents for the order.
Figure 151: Settlement
Since the service order is a cost object, all costs and revenues are collected on the
service order. These values are settled at the end of the period, or at the latest
by the end of the lifetime of the order. You can use Profitability Analysis as a
settlement receiver for cost objects.
2010 © 2010 SAP AG. All rights reserved. 315 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Figure 152: Settlement Rule
You can determine whether or not the settlement receiver is permitted for the order
type in Customizing. Possible settlement receiver types include the G/L account,
cost center, order, WBS element, installation, network, profitability segment, sales
order, and business process. You can find them in the settlement rule, which can
be entered manually or derived automatically on the basis of the header data.
Note: It makes sense to settle sales costs and revenues to Profitability
Analysis. Particularly with services performed over a longer period, the
results should also be analyzed on the cost object. The cost and revenue
results are analyzed by period and, if necessary, inventories and reserves
are formed that can be settled to Financial Accounting and Profit Center
Accounting.
316 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Menu Paths for Posting Make-to-Order Services
Action Menu path
Create a sales order Logistics → Sales and Distribution → Sales
→ Order → Create
Create a billing document Logistics → Sales and Distribution → Sales → Order → Subsequent Functions → Billing
Document
Make an activity allocation for
a cost center
Accounting → Controlling → Product Cost Controlling → Cost Object Controlling
→ Product Cost by Sales Order → Actual
Postings → Activity and Business Process Allocation
Call the actual/plan report for sales orders
Accounting → Controlling → Product Cost Controlling → Cost Object Controlling →
Product Cost by Sales Order → Information System → Reports for Product Cost by Sales Order → Detailed Reports → For Sales
Order
2010 © 2010 SAP AG. All rights reserved. 317 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
318 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Exercise 15: Postings for a Make-to-Order
Service with a Service Order (Optional
Exercise)
Exercise Objectives
After completing this exercise, you will be able to:
• Describe the processing steps involved in selling a service using a service
order
Business Example
The customer has installed computer systems on site. The equipment is not
working properly, so the customer sends a malfunction report with an initial,
general description of the problem. Your employees convert this malfunction
report into a service order and use this as a basis for processing in both logistics
and controlling.
Task 1:
Create a malfunction report for the customer and a service order based on this
report. Process the maintenance work both logistically and from a simultaneous
costing perspective.
1. Create a malfunction report with the notification type problem notification .
Make a note of the notification number.
__________________________________________
2. Enter a service order in plant 1200 and business area 8000 with order type
SM02 . Create a reference to your problem notification. Plan the order
with 4 hours work and 5 pieces of spare part R-1120 . Take a look at the
preliminary costing, the sales data, and the control data. Then save the order
and note the order number.
__________________________________________
Task 2:
Your technician now carries out the repair at the customer site. On his return,
he records the work he has performed.
1. The employee required 1 hour travel time, worked for 4 hours, and used 5
pieces of spare part R-1120.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 319 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Task 3:
Take a look at the costs of the order in the order report.
1. Use the internal order report or call the service order, choose the Costs tab
page and then the Rep. Plan/Act pushbutton.
Task 4:
Create the billing request.
1. Create the billing request using the values proposed by the system.
Task 5:
Bill your billing request.
1. Create a billing document with reference to your billing request.
Task 6:
Take a look at the costs and revenues for the order in the order report.
1. Use the internal order report or call the service order, choose the Costs tab
page and then the Rep. Plan/Act pushbutton.
Task 7:
The service order has now been completed. At the end of the period, you settle
the order.
1. Settle the order.
Task 8:
Take a look at the costs and revenues for the order in the order report.
1. Use the internal order report or call the service order, choose the Costs tab
page and then the Rep. Plan/Act pushbutton.
320 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Solution 15: Postings for a Make-to-Order
Service with a Service Order (Optional
Exercise)
Task 1:
Create a malfunction report for the customer and a service order based on this
report. Process the maintenance work both logistically and from a simultaneous
costing perspective.
1. Create a malfunction report with the notification type problem notification .
Make a note of the notification number.
__________________________________________
a) Choose Logistics → Customer Service → Service Processing →
Notification → Create (Special) → Problem Notification (IW54) .
b) Enter the following data:
Field Value or Action
Notification Text Network server
crashed, GR##
Sold-to Party T-CSD##
Equipment T-CSE1##
Priority High
Choose Put in Process and save the problem notification. Make a note
of the notification number.
__________________________________________
2. Enter a service order in plant 1200 and business area 8000 with order type
SM02 . Create a reference to your problem notification. Plan the order
with 4 hours work and 5 pieces of spare part R-1120 . Take a look at the
preliminary costing, the sales data, and the control data. Then save the order and note the order number.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 321 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
__________________________________________
a) Choose Logistics → Customer Service → Service Processing → Order
→ Service Order → Create (Special) → Order for Notification
b) Enter the following data:
Field Value or Action
Order Type SM02
Notification Your notification
number
Planning Plant 1200
Business Area 8000
Choose Enter .
c) Choose the Operations tab page.
The system has already created the first operation automatically. Add
the expected work time of 4hours in the Work column.
d) Choose the Components tab page.
Choose the List icon and from the BOM, and double-click the
component R-1120 . Enter a quantity of 5.
e) Put the order in process by choosing the Put in Process icon.
By doing so, the service order automatically creates a preliminary
costing.
f) Select Order → Change. Choose the Costs tab page.
Take a look at the costs overview.
Choose the Rep. Plan/Act. pushbutton. You can see the costing for the
service order updated as plan values for the cost object.
g) Take a look at the sales data. Choose Extras → Sales Data .
h) Now go to the Control tab page. You can see that a DIP profile has
already been entered by integration, giving you the option of using
resource-related billing. You can also find the costing variants here that
are used to control preliminary costing and simultaneous costing.
i) Save the service order and note the order number.
__________________________________________
Continued on next page
322 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Task 2:
Your technician now carries out the repair at the customer site. On his return,
he records the work he has performed.
1. The employee required 1 hour travel time, worked for 4 hours, and used 5
pieces of spare part R-1120.
a) Choose Logistics → Customer Service → Service Processing →
Confirmation → Entry → Overall Completion Confirmation (IW42) .
b) Your order number is already proposed by the system. Choose Enter .
The system now proposes the planned working time for the operation.
Click on the magnifying glass icon Operation Data and the planned
quantity of spare parts is displayed. Accept this quantity. If prompted,
enter storage location 0001.
c) Include the travel time in the confirmation. To do this, add a second
row under Time Confirmation with operation number 10, actual work 1,
and activity type 1413 . Choose Enter to add the missing values.
d) Save your confirmation.
Task 3:
Take a look at the costs of the order in the order report.
1. Use the internal order report or call the service order, choose the Costs tab
page and then the Rep. Plan/Act pushbutton.
a) Take a look at your service order with the internal order report.
Choose Accounting → Controlling → Internal Orders → Information
System → Reports for Internal Orders → Plan/Actual Comparisons
→ Orders: Actual/Plan/Variance .
You can see the costs of the consumed spare parts and the costs of the
activity allocation.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 323 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Task 4:
Create the billing request.
1. Create the billing request using the values proposed by the system.
a) Choose Logistics → Customer Service → Service Processing →
Completion → Billing Request → Process Individually (DP90) .
b) Enter your service order number, change the periods to the current
periods, and choose Expenses .
c) Choose Sales Price and drill down on the item. You can see the sales
materials that were found using the DIP profile and their sales prices.
d) Choose Billing Request to save the billing request.
Remove the billing block and save the billing request again.
Task 5:
Bill your billing request.
1. Create a billing document with reference to your billing request.
a) Choose Logistics → Customer Service → Service Processing →
Completion → Billing Document → Create .
b) Choose Enter and then Save .
c) Choose Billing Document → Display and then Accounting .
Take a look at the accounting document.
Task 6:
Take a look at the costs and revenues for the order in the order report.
1. Use the internal order report or call the service order, choose the Costs tab
page and then the Rep. Plan/Act pushbutton.
a) Take a look at your service order with the internal order report.
Choose Accounting → Controlling → Internal Orders → Information
System → Reports for Internal Orders → Plan/Actual Comparisons
→ Orders: Actual/Plan/Variance .
You can see the costs of the consumed spare parts and the costs of the
activity allocation.
Continued on next page
324 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Transaction-Based Postings for Services on a Service
Order (Optional Lesson)
Task 7:
The service order has now been completed. At the end of the period, you settle
the order.
1. Settle the order.
a) Choose Logistics → Customer Service → Service Processing →
Completion → Order Settlement → Settle Individually .
Enter your service order number and display the settlement rule for
the service order. This was generated automatically when you created
the order.
b) For the Settlement Period enter the current period and remove
the Test Run indicator. Choose Execute .
c) Go to the Detailed List and take a look at the sender view, the receiver
view, and the accounting documents. In the profitability analysis
document, take a look at the values for the characteristics and the value
fields.
Task 8:
Take a look at the costs and revenues for the order in the order report.
1. Use the internal order report or call the service order, choose the Costs tab
page and then the Rep. Plan/Act pushbutton.
a) Take a look at your service order with the internal order report.
Choose Accounting → Controlling → Internal Orders → Information
System → Reports for Internal Orders → Plan/Actual Comparisons
→ Orders: Actual/Plan/Variance .
You can see the costs of the consumed spare parts and the costs of the
activity allocation. After settlement, the order balance is 0.
2010 © 2010 SAP AG. All rights reserved. 325 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 7: Transaction-Based Postings in Management Accounting AC050
Lesson Summary
You should now be able to:
• Create a service order for a service
• Post material consumption with reference to a BOM and activity allocations
using confirmations
• Post costs from different sources
• Perform resource-related billing
• Settle the service order with sales revenues and costs for the service to
Profitability Analysis
326 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Unit Summary
Unit Summary
You should now be able to:
• Post Management Accounting reposting documents
• Explain the purpose of a direct activity allocation
• Post a direct activity allocation
• Explain the purpose of entering time sheets.
• Describe the steps for processing time sheets
• Set up a budget for an internal order
• Post documents to an internal order to demonstrate the effects of availability
control
• Create an internal order with revenue
• Post the costs for material consumption and activities
• Settle the order with costs and revenues to Profitability Analysis.
• Create a sales order for a service
• Optional: Create an additional sales order item for the sale of a product
• Post costs from different sources
• Perform resource-related billing
• Settle the sales order with sales revenues and costs for the service to
Profitability Analysis
• Create a service order for a service
• Post material consumption with reference to a BOM and activity allocations
using confirmations
• Post costs from different sources
• Perform resource-related billing
• Settle the service order with sales revenues and costs for the service to
Profitability Analysis
2010 © 2010 SAP AG. All rights reserved. 327 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Librería ERP https://libreriaerp.com/us [email protected] Librería ERP https://libreriaerp.com/us [email protected]

Unit8
Period-End Closing Aspects of
Management Accounting
Unit Overview
Various periodic transactions are available for period-end closing in Management
Accounting. You can execute most of these transactions not only once at the end
of a period, but as many times as you need within a period without this resulting in
incorrect or double postings.
This unit introduces the reconciliation ledger. You can use this to check the
reconciliation of Management Accounting with Financial Accounting and, if
necessary, to actually execute reconciliation.
Unit Objectives
After completing this unit, you will be able to:
• Explain the purpose and basic functions of the Schedule Manager
• Describe the typical sequence of period-end closing activities within
Management Accounting
• Post statistical key figures to an account assignment object
• Perform a cost assessment from one cost center to several other cost centers
• Settle the costs for an internal order to a cost center
• Allocate overhead costs and process costs to a cost object
• Perform a results analysis
• Settle the balance for the cost object
• List the master data used in profitability and sales accounting and explain its
purpose
• List the sources of data for profitability and sales accounting
• Describe the flow of data to Profitability Analysis
• Describe the flow of data to Profit Center Accounting
Unit Contents
Lesson: Using the Schedule Manager for Fast Close Options ...........331
2010 © 2010 SAP AG. All rights reserved. 329 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Lesson: Period-End Closing in Overhead Cost Controlling ...............337
Exercise 16: Period-End Closing in Overhead Cost Controlling .....357
Lesson: Period-End Closing in Product Cost Controlling..................368
Exercise 17: Period-End Closing in Product Cost Controlling........379
Lesson: Financial Statement in Management Accounting ................393
Exercise 18: Profitability and Sales Accounting ........................407
330 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Using the Schedule Manager for Fast Close Options
Lesson: Using the Schedule Manager for Fast Close
Options
Lesson Overview
The Schedule Manager enables you to manage and monitor periodic transactions
effectively. You can use it to manage tasks in period-end closing.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the purpose and basic functions of the Schedule Manager
• Describe the typical sequence of period-end closing activities within
Management Accounting
Business Example
Instead of using a series of local checklists, you want to manage period-end
closing centrally. In addition, you want a central reference point for all the tasks
that must be carried out regularly in your company.
Schedule Manager: Functions
The Schedule Manager helps you carry out your period-end closing activities by
combining all the related transactions in one central application. The Schedule
Manager contains all the essential functions, from defining the structure of
period-end closing to scheduling jobs and monitoring the results.
2010 © 2010 SAP AG. All rights reserved. 331 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 153: Schedule Manager: Benefits
The Schedule Manager also provides all the data that is required for performing
period-end closing. All employees who have the relevant authorizations can use
the Schedule Manager to find information about outstanding tasks. They can
also display objects that need to be processed and schedule additional tasks. You
can clearly see, for example, when month-end closing needs to be finished and
when the preceding period needs to be closed. You can use the Schedule Manager
at any time to check the tasks that need to be performed, when they need to be
performed, and what the results should be.
The Schedule Manager also supports you in other areas of the SAP system. It
helps you to define, schedule, run, and control individual periodic tasks and
complex processes that must be carried out at regular intervals. It also provides
you with an up-to-date overview of the processes involved.
332 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Using the Schedule Manager for Fast Close Options
Figure 154: Schedule Manager: Time Scheduling
Using the Schedule Manager
You start the transactions using the Schedule Manager in the SAP system. The
initial screen shows user information that you can deactivate at any time.
You can use the Schedule Manager to carry out the following tasks:
• Create a structured task list. The tasks can be carried out periodically and by
more than one user.
• Execute flows and individual jobs in the background.
• Run programs or transactions individually and online.
• Store detailed information for each task.
The task list contains the following task types:
• Flows
• Individual jobs
• Programs or transactions
• Notes that describe tasks that are performed outside the SAP system (such
as a phone call)
The daily overview lists all the tasks that were carried out on or are scheduled for a
particular day. The system logs each task as it is performed and provides you with
information about the planned and current start time, as well as the current status
of each task. From the daily overview, you can go to the monitoring function to
display more information about jobs and flows.
2010 © 2010 SAP AG. All rights reserved. 333 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 155: Schedule Manager: Task List and Flow Definition
You use the task list to group individual tasks together. To ensure that the job
sequence is adhered to, you can create a flow definition that contains all the
dependent work items. In the flow definition, you can group tasks for background
processing in a particular sequence. These flow definitions are controlled using
the workflow. For inspection purposes you can also insert user decisions.
Worklists enable you to reduce the total processing time required.
Figure 156: Schedule Manager: Monitor
334 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Using the Schedule Manager for Fast Close Options
In the monitor, you can display detailed information about all the active or
completed jobs and flows that were scheduled in the Schedule Manager.
All messages output by the system while the job is being processed are displayed in
a list. You can branch from this list to the spool list, job log, detailed information,
and basic list. The Status field shows you exactly where errors occurred.
When you check the results, you can change the system status and specify why
you changed it. The system then logs the changes you have made manually.
2010 © 2010 SAP AG. All rights reserved. 335 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Lesson Summary
You should now be able to:
• Explain the purpose and basic functions of the Schedule Manager
• Describe the typical sequence of period-end closing activities within
Management Accounting
336 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Lesson: Period-End Closing in Overhead Cost
Controlling
Lesson Overview
This lesson presents the most important periodic transactions in Overhead Cost
Controlling.
A distinction is made between transactions that close overhead cost objects at the
expense of other overhead cost objects (within Overhead Cost Controlling) and
transactions that transfer underabsorption or overabsorption of the (main) cost
centers to Cost Object Controlling or Profitability Analysis (outside Overhead
Cost Controlling).
Lesson Objectives
After completing this lesson, you will be able to:
• Post statistical key figures to an account assignment object
• Perform a cost assessment from one cost center to several other cost centers
• Settle the costs for an internal order to a cost center
Business Example
You want to review the necessary steps for period-end closing in Overhead Cost
Controlling. At the end of each period, the overhead costs on the service cost
centers need to be settled to the primary cost centers.
The rental, cleaning, and maintenance costs of a building are allocated from the
facility management cost center to other cost centers (such as the IT center and
consulting department). This allocation is based on the square meters of floor
space used by the individual cost centers (this information was entered earlier as
statistical key figures).
The costs for the IT cost center are then allocated to the individual cost centers,
including the consulting cost center. This allocation is based on the number of
personal computers (PCs) in the development department.
At the end of the period, any costs that may be incurred on internal orders also
need to be settled to the relevant recipients. Thus, for example, the cost of training
that was performed for the consulting cost center and recorded in an internal order
should be allocated to this cost center.
2010 © 2010 SAP AG. All rights reserved. 337 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
After the consulting cost center has received all the cost to be allocated, you can
calculate the actual prices for the various activity types (such as junior consulting
hours and senior consulting hours). Likewise, once all the costs have been
allocated to the business processes, you can calculate the actual costs of these
processes.
Statistical Key Figures
Statistical key figures are used to show additional, non-monetary information on
CO objects, or as the basis for periodic cost allocations. For example, you can use
the employees key figure to create reports with personnel costs for each employee
or to distribute the costs that are incurred by the “Cafeteria” cost center to all cost
centers with employees who use the cafeteria.
Figure 157: Entering Statistical Key Figures
You create statistical key figures as master data records. When you create a master
record, you have to assign it to one of two possible categories: Key figures for
fixed values, or key figures for totals values. You use a statistical key figure for
fixed values (category 1) to post values that are valid from the posting period
through all following periods in the current fiscal year. You only need to post the
statistical key figure again when the value changes. A key figure for totals values
(category 2) is required for posting values that are valid in the relevant posting
period only. You need to make a new posting for this in each new posting period.
You can also assign statistical key figures to a cost center or activity type. This is
useful for cost splitting.
If you are using the Logistics Information System (LIS) you can link statistical
key figures with fields in the LIS and copy their values automatically at the end
of the period.
338 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Periodic Cost Allocations
You can use several methods to carry out periodic cost allocations in Overhead
Cost Controlling.
Pure cost allocations are used to allocate costs from sender objects to receiver
objects. The focus here is on the value flow . A quantity flow can be included as
well, but is not necessary. The cost element category (primary or secondary) used
to allocate the costs depends on the allocation type.
Figure 158: Periodic Activities in Overhead Cost Controlling
Quantity allocations can also be used in periodic allocation. The focus here
is on the quantity flow that is valuated with a price. Consequently, this is a
quantity-based value flow . You can also wait until the end of the period before
you valuate the quantity flow.
As well as indirect activity allocation, the template allocation method for processes
and activity types is also a quantity allocation.
2010 © 2010 SAP AG. All rights reserved. 339 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 159: Periodic Cost Allocation Methods
In SAP ERP, existing tools are used as often as possible so that users can apply
the knowledge they have acquired as much as possible and do not constantly
have to learn new methods. Similarly, only two tools are normally used in the
periodic transactions for Overhead Cost Management: The costing sheet and the
cycle/segment method.
• The costing sheet always starts with basic values to which overhead costs
are applied.
• The cycle/segment method represents relationships between senders and
receivers. Allocations are made between the senders and receivers using
certain rules.
340 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Figure 160: Accrued Costs
The posting of an expense in one period often refers to several periods, which
contradicts the principle of cost assignment by period any makes it more difficult
to run a cost center comparison over a period of months. For this reason, you need
to accrue such expenses by period to avoid cost distortions due to nonperiodic
payment flows.
When distributing costs across the periods, accrued costs are created that can
be posted in two ways:
• Through recurring entries in Financial Accounting, or by using the Accrual
Engine and transferring the costs to Management Accounting.
• By calculating and posting an accrued cost in Management Accounting.
When you calculate the accrual value in Management Accounting, you can choose
one of the following methods:
• Percentage method
• Target=actual method
2010 © 2010 SAP AG. All rights reserved. 341 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 161: Accrual Calculation: Percentage Method
The percentage method enables you to determine accrued costs using a percentage
based on cost elements. The advantage of this method compared with a recurring
entry in Financial Accounting is that accrued costs are calculated on the basis
of actual costs. The percentage method is therefore recommended for accrual
calculations for ancillary payroll costs, such as vacation bonuses.
In an accrual calculation, the accrued costs are debited to the cost centers. At the
same time, one of the accrual objects that you defined (a cost center or internal
order) is credited. The actual costs are also posted to the accrual object to
calculate, analyze, and allocate all the balances between the expenses in Financial
Accounting and the accrued costs in Management Accounting.
Using the percentage method, the accrued costs are posted with an accrual cost
element (cost element category 3).
342 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Figure 162: Periodic Reposting
Periodic repostings are used as a posting aid.
Transactions relevant to Management Accounting, such as telephone costs, postal
charges, insurance, and so on, are entered in Financial Accounting and then posted
to a special allocation cost center that is used exclusively for cost collection. This
minimizes the number of different cost center assignments you have to make when
entering data in Financial Accounting. At the end of the period, the costs in the
allocation cost center are reposted to the cost centers that actually incurred the
costs according to rules defined in the allocation cycle. The original, primary cost
elements are retained.
Periodic repostings should only be used when the identity of the sender cost
center is not important for the receiver cost center at totals record level. In
periodic allocation transactions, line items are recorded for both the sender and
receiver sides in order to document the allocation in full. However, the sender cost
center is not defined in the totals records. You can only determine the origin of the
costs from the line items. This enhances system performance when you execute
and save the reposting.
The receivers of a periodic reposting can be other cost centers, WBS elements,
internal orders, cost objects, or business processes. You can restrict the permitted
number of receivers in Customizing.
Periodic repostings can be reversed and repeated as often as required.
2010 © 2010 SAP AG. All rights reserved. 343 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 163: Distribution
Distribution is used to allocate primary costs from a sender cost center to receiver
controlling objects. Only cost centers or business processes can be senders in a
distribution allocation.
The receivers of a distribution can be other cost centers, WBS elements, internal
orders, cost objects, or business processes. You can restrict the permitted number
of receivers in Customizing.
Example: Primary costs (such as energy costs) are collected on a service cost
center and allocated at period-end closing according to rules defined in the
distribution cycle. The example in the figure uses fixed percentages as the
allocation rule. Other allocation rules are also available.
Only primary costs can be distributed. The receivers retain the original cost
elements.
Line items are entered on both the sender and receiver sides to document the
allocations in detail. In comparison to a periodic reposting, a distribution updates
the partner's (sender's) totals record so that it can be identified at totals record
level in the information system reports.
Distributions can be reversed and repeated as often as desired.
344 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Figure 164: Assessment
Assessments are used to allocate primary and secondary costs from a sender cost
center to receiving controlling objects. Only cost centers or business processes
can be senders in an assessment.
The receivers of an assessment can be other cost centers, WBS elements, internal
orders, cost objects, or business processes. You can restrict the permitted number
of receivers in Customizing.
Primary and secondary costs (such as energy costs) are allocated at period-end
closing according to rules defined in the assessment cycle . The example uses
statistical key figures to allocate the costs.
Each segment in an assessment cycle is assigned an assessment cost element
(secondary cost element category 42). All the costs allocated in an assessment are
identified by these assessment cost elements on the receiver side. Alternatively,
you can use an allocation structure to define which cost elements are to be
allocated under which assessment cost element. You can assign individual cost
elements to an assessment cost element for this purpose. The allocation structure
is defined in the assessment cycle.
Line items are created on both the sender and receiver side to document the
allocation. The system does not display the original cost elements on the receiver
side. It therefore makes sense to allocate costs using an assessment if a cost
breakdown is not important for the receiver.
As with distributions, assessments update the partner's totals record. An
assessment can be reversed and repeated as often as you wish.
2010 © 2010 SAP AG. All rights reserved. 345 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 165: Overhead Rates
Overhead calculations are another form of periodic cost allocation. Overhead
rates can be applied to almost any account assignment object in Management
Accounting. The sender (credit object), however, can only be a cost center,
internal order, or business process.
An overhead rate can be calculated as a percentage of base costs, or as a fixed
amount for each reference quantity. Let us assume that an overhead rate has to be
calculated for the withdrawal of plastic pipes from the warehouse. This overhead
can be calculated as a percentage of the cost of the withdrawn pipes or as a fixed
amount per meter of pipe length.
The calculation base, the overhead rate, the credit cost element, and the credit
object are all defined using a costing sheet. The cost element used is a category
41 secondary allocation cost element. The costing sheet is defined in the master
records of the objects that receive the overheads.
346 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Figure 166: Order Settlement
Internal orders normally serve as cost collectors for individual measures (such
as participation at a trade fair) or individual objects (such as a truck in a fleet of
vehicles). They can assume plan and actual values and can be used in reporting.
Later, the costs for the order are allocated to the area that is actually responsible for
them (for example, for truck orders, the “vehicle fleet” cost center) by settlement .
This is another form of periodic cost allocation.
You can carry out settlements at the end of the period or the end of the order
lifetime, depending on the type of order and its function in your enterprise.
You can settle orders to different types of receivers, provided that they are defined
as valid in Customizing and there are no system restrictions (such as period
locks) that prevent the settlement. Examples of possible settlement receivers
include cost centers, other orders, projects, profitability segments, fixed assets,
and G/L accounts.
For each order, you need to define a settlement rule in the order master record.
This rule can specify that all the costs for the order are settled to a single receiver
or split between several receivers.
2010 © 2010 SAP AG. All rights reserved. 347 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Periodic Quantity Allocations
Figure 167: Methods for Periodic Quantity Allocation
You can control how the settlement is carried out by using the many settlement
options available.
Indirect activity allocation can be regarded as a distribution of activity types.
For this reason, it uses the cycle/segment method.
The target=actual activity allocation allocates activity quantities as planned, but
according to the current actual operating rate.
Template allocation is a special type of indirect activity allocation.
• When an activity is allocated, a resource structure (bundle of activity types)
is stored in a template, adjusted at a later stage (based on quantity) to an
output quantity, and allocated to receivers.
• When you allocate a process, you define a cost driver for the process and
then later allocate a process quantity that is dependent on this cost driver.
You can use any information provided in the system as a cost driver.
348 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Figure 168: Indirect Activity Allocation
With indirect activity allocations, the system automatically allocates activity
quantities as actual and plan quantities. Unlike direct activity allocation, keys
(tracing factors) are defined for allocating the activities to the receivers.
Like other period-based allocation methods, indirect activity allocation is based
on segments and cycles that are used to define the sender/receiver relationships.
You specify the processing method for each segment.
During indirect activity allocation, costs are allocated using an internal cost
element for activity allocation (a category 43 secondary cost element). Cost
elements are assigned from the master record in the cost center/activity type plan,
where they can also be overwritten.
Cost centers function as senders in indirect activity allocation. The receivers of
an indirect activity allocation can be other cost centers, WBS elements, internal
orders, cost objects, or business processes.
Depending on the category of the activity type that you want to allocate, you can
choose one of two different allocation approaches.
• Manual entry of the sender's activity quantity
• Inverse determination of the sender's activity quantity in the SAP system
based on user-defined rules.
2010 © 2010 SAP AG. All rights reserved. 349 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 169: Actual Activity Quantity Entered for Sender
You can generate total activity quantities from the sender cost centers for most
activity types. The posted activity quantities are distributed from the senders to the
receivers using indirect activity allocation. This distribution takes place according
to how the indirect activity allocation cycle was defined in the segments.
You first have to create an activity type for indirect allocation (activity type
category 3) for activities that can be measured and posted for a sender object.
Then you post the activity quantity to the sender cost center.
Allocation to the receiver takes place during the indirect activity allocation
process. The allocation segment must be based on the posted quantities sender
rule. You can use all the receiver rules with the exception of fixed quantities.
If you want to measure the time that your testers use for test activities, for
example, you do not measure the time taken to test parts that are required for all
production cost centers. This provides you with the total activity quantity for the
sender but not the individual receiver values. You can, however, allocate the
calculated activity values to the number of tested parts for each production cost
center. This information is available in the form of statistical key figures from
the Logistics Information System, for example. You can allocate the total tester
activities (in hours) to the receiver cost centers using indirect activity allocation.
In doing so, you can also take into account each cost center's share of the total
number of tested parts.
350 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Figure 170: Actual Activities for Sender Not Entered
You can determine activity quantities for which the actual quantity provided
cannot be calculated (or where too much time would be required to do so) with
indirect activity allocation, using:
• A receiver tracing factor
• Explicit entries in segment definition (fixed quantity for sender or receiver)
For this type of indirect activity allocation, you need to create a category 2 activity
type (indirect calculation, indirect allocation). The corresponding segment must
either be based on a combination of the Inversely Determined Quantities sender
rule and any receiver rule, or the same Fixed Quantities sender and receiver rule.
If you use the Inversely Determined Quantities sender rule, you can define the
relationship between the quantity unit for the tracing factor and the quantity unit
for the activity using a sender-specific weighting factor (standard value = 1).
Example: Due to the many different activities your testers perform, it is difficult
to measure the time taken for a specific test. You can relate these activities to
statistical key figures, which state the number of tested parts for each production
cost center. Using sample measurements, you have determined that each test takes
on average 15 minutes per part (0.25 hours). You set this value as the weighting
factor for the sender. The system then uses this data to allocate the tester hours for
each production cost center and the total tester hours used.
You can also define a receiver weighting factor for cases where the ratio between
activity type and tracing factor is not consistent for all receivers. In the example
described in the previous paragraph, you would choose this option if the time
required to test parts for production 4260 was not identical to the time required to
test parts for production 4270.
2010 © 2010 SAP AG. All rights reserved. 351 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Period-End Closing Phases
In an integrated system, period-end closing in Management Accounting needs to
be incorporated in period-end closing for ERP. To include all costs in period-end
closing, you need to transfer
• personnel costs (HR Payroll)
• depreciations and accrued interest from Asset Accounting
• and miscellaneous data relevant to CO-OM from other components
beforehand.
Figure 171: Period-End Closing in Overhead Cost Controlling
When you carry out period-end closing in Overhead Cost Controlling (CO-OM),
you first need to allocate the costs from service cost centers to primary cost
centers. The overhead cost orders for the cost centers must be settled at the
appropriate time.
Ultimately, all overhead cost order and service cost centers should show a zero
balance so that only costs that have not been allocated remain on the primary
cost centers.
The figure above shows a possible sequence of periodic transactions. These
phases cannot normally be carried out consecutively since some steps have to be
repeated for various object groups. The sequence and cost assignment should be
appropriate for your business needs.
352 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Figure 172: Period-End Closing in Overhead Cost Controlling (2)
In the second step, you need to close the primary cost centers.
Variance Calculation
Figure 173: Variance Calculation for Cost Centers
You can use the variance calculation to analyze the causes of under/overabsorption
on your cost centers or business processes.
The variance calculation is purely an analysis tool. The variances are not allocated
further. To credit the cost centers in full, you need to perform a revaluation with
the actual activity prices, or an assessment on the profitability segments.
2010 © 2010 SAP AG. All rights reserved. 353 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
The system calculates the variance by
• calculating the target costs
• splitting the actual costs across the activity types
• calculating the variances for each combination of cost center and activity
type.
The variance calculation shows the difference between the target and actual costs.
The system uses a wide range of variance categories, which differentiate between
the input and output sides. The input side contains all the cost center debits and
credits, while the output side contains the activity allocations for the cost center.
Variance calculation is cumulative, that is, the total for all variances is equal to
the total variance.
Actual price calculation and revaluation
Figure 174: Revaluation at Actual Prices
To bring the primary cost center balance to zero (by allocating the underabsorption
or overabsorption), you have the following options:
• Assessment with Profitability Analysis
• Actual price calculation and revaluation of the activity quantity flows:
With assessment to Profitability Analysis, you do not use the cost objects to
allocate the under/overabsorption of the cost centers. The main issue here is how
the cost center balances are assigned to the market segments.
354 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
By contrast, revaluation using actual prices can also revaluate quantity flows to
cost objects and thus allocate under/overabsorption of the cost centers to the cost
objects. You may want this to get an idea of the actual cost of goods manufactured
on the cost centers in the period.
Note: This is particularly useful if you want to use the actual costs for a
subsequent valuation of your warehouse stock at the actual cost of goods
manufactured (function: “Actual costing with the material ledger”, see appendix).
It is also useful if, for other reasons, you need to use actual costs (for
example, for resource-related billing of the cost object, or if an analysis
of the actual profit/loss for sales order-related production or service
provision is required).
Since revaluation at actual prices can leave small balances on the cost center
(rounding errors), it is also useful in such instances to use an assessment to allocate
the remaining balances to Profitability Analysis to improve reconciliation between
CO-PA and Financial Accounting.
Menu Paths for Period-End Closing in Overhead Cost Controlling
Action Menu path
Carry out an actual cost
settlement.
Choose Accounting → Controlling →
Internal Orders → Period-End Closing →
Single Functions → Settlement → Individual
Processing
Create an actual assessment cycle.
Accounting → Controlling → Cost Center
Accounting → Period-End Closing → Single
Functions → Allocations → Assessment . Choose Extras → Cycle → Create
Run an assessment. Accounting → Controlling → Cost Center
Accounting → Period-End Closing → Single
Functions → Allocations → Assessment –
Execute the assessment with Execute
Run the cost flow report or
Orders: Actual/Plan/Variance report.
Accounting → Controlling → Internal Orders → Information System → Reports for
Internal Orders → Plan/Actual Comparisons
→ Orders: Actual/Plan/Variance
2010 © 2010 SAP AG. All rights reserved. 355 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
356 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Exercise 16: Period-End Closing in
Overhead Cost Controlling
Exercise Objectives
After completing this exercise, you will be able to:
• Make the period-end postings for your overhead cost objects (cost centers
and overhead cost orders)
Business Example
Your company would like to perform period-end closing. Before you can close
overhead cost controlling for the period, the balance for the overhead cost objects
must be zero. With overhead cost orders, this is accomplished by settlement. This
credits the service cost centers by allocating the costs they incurred to the primary
cost centers that received the activities of the service cost centers. The primary
cost centers are credited afterwards as well, by allocating their balance to either
Cost Object Controlling or Profitability Analysis.
Task 1:
Settle your trade fair order to the service cost center that is responsible for the
costs incurred.
1. Carry out an actual cost settlement for your trade fair order. Choose the
current period for the settlement and posting periods.
Note: Use the trade fair order number that you generated in unit
2. To search for the order number, use order type 0400 as the
matchcode.
Check whether the costs were posted to your trade fair order by looking up
the posted data in the cost flow report for the order.
Note: To call this report, which is in the information system under
the menu for internal orders, choose Accounting → Controlling →
Internal orders → Information System → Reports for Internal Orders
→ Plan/Actual Comparisons → Orders: Actual/Plan/Variance .
Enter controlling area 1000 , the current fiscal year and period, plan
version 0, and your order number.
If no costs were posted, post EUR 9,000 to your order. Choose
Accounting → Financial Accounting → General Ledger → Posting
→ Enter G/L Account Document . Use cost element 417000 and
account 113100 .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 357 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Branch to the detailed list. Display the sender and receiver view. Which cost
element is used for the settlement?
2. Execute the Orders: Actual/Plan/Variance report for the current period
and plan version 0. Run the report for your trade fair order. What is the
balance on your order?
3. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0to see how the settlement affects your cost center.
Execute the report for the service cost center ( IT-## ).
Task 2:
Create an assessment cycle and segment to allocate the costs from your service
cost center to the production cost centers that it supports.
1. Create an actual assessment cycle AAC-## that starts on the first day of the
current fiscal year. Give the cycle the description Group ## assessment .
Create a cycle run group called GR## and assign the cycle to this run group.
2. Attach the segment AACS-## and enter the description Service ##
assessment . Enter assessment cost element 631300 for company services.
Allocate 100% of the posted actual amounts from your sender cost center.
The receiver tracing factor that you enter on the same screen allocates fixed
percentages.
3. The sender of the allocation is your service cost center ( IT-## ). Enter cost
element group OAS for the allocation. The receiver of this allocation is
cost center group HAC050 .
4. Switch to the Receiver Tracing Factor tab page to define a cost allocation
of 93 % to cost center SUPPORT , a cost allocation of 5 % to cost center
CONS-## , and a cost allocation of 2 % to cost center EDUC-## .
Run a formal check on the cycle and segment you created.
Save your entries.
Task 3:
Carry out the actual assessment for your service cost center.
1. First execute the assessment as a test run for your cycle AAC-## for the
current period. Specify that detail lists are to be displayed.
2. Execute the assessment as an update run to post your allocation.
Deselect the Test Run indicator.
3. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0to see how the assessment affects your service cost
center, IT-## . What is the balance on your cost center?
358 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Solution 16: Period-End Closing in
Overhead Cost Controlling
Task 1:
Settle your trade fair order to the service cost center that is responsible for the
costs incurred.
1. Carry out an actual cost settlement for your trade fair order. Choose the
current period for the settlement and posting periods.
Note: Use the trade fair order number that you generated in unit
2. To search for the order number, use order type 0400 as the
matchcode.
Check whether the costs were posted to your trade fair order by looking up
the posted data in the cost flow report for the order.
Note: To call this report, which is in the information system under
the menu for internal orders, choose Accounting → Controlling →
Internal orders → Information System → Reports for Internal Orders
→ Plan/Actual Comparisons → Orders: Actual/Plan/Variance .
Enter controlling area 1000 , the current fiscal year and period, plan
version 0, and your order number.
If no costs were posted, post EUR 9,000 to your order. Choose
Accounting → Financial Accounting → General Ledger → Posting
→ Enter G/L Account Document . Use cost element 417000 and
account 113100 .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 359 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Branch to the detailed list. Display the sender and receiver view. Which cost
element is used for the settlement?
a) Choose Accounting → Controlling → Internal Orders → Period-End
Closing → Single Functions → Settlement → Individual Processing
b) Enter the following data:
Field Value or Action
Order Your trade fair order number
Settlement Period Current period
Posting Period Current period
Fiscal Year Current fiscal year
Processing Type Select Automatic
Test Run Make sure that the test run indicator
is not selected
c) Choose Execute .
d) Branch to the detailed list. Display the sender and receiver view.
Depending on the Customizing settings in the system, the settlement was carried out with the originally posted cost element or with a special
settlement cost element (for example, 650000) together with cost
element category 21.
Continued on next page
360 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
2. Execute the Orders: Actual/Plan/Variance report for the current period
and plan version 0. Run the report for your trade fair order. What is the
balance on your order?
a) Choose Accounting → Controlling → Internal Orders → Information
System → Reports for Internal Orders → Plan/Actual Comparisons
→ Orders: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) Your trade fair order number
c) Choose Execute .
The balance should be zero.
3. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0to see how the settlement affects your cost center.
Execute the report for the service cost center ( IT-## ).
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Plan Version 0
Or Value(s) IT-##
c) Choose Execute .
The settlement amount was debited under the same settlement cost
element that was used to credit the internal order.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 361 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Task 2:
Create an assessment cycle and segment to allocate the costs from your service
cost center to the production cost centers that it supports.
1. Create an actual assessment cycle AAC-## that starts on the first day of the
current fiscal year. Give the cycle the description Group ## assessment .
Create a cycle run group called GR## and assign the cycle to this run group.
a) Choose Accounting → Controlling → Cost Center Accounting →
Period-End Closing → Single Functions → Allocations → Assessment .
Choose Extras → Cycle → Create
b) Enter the following data:
Field Value or Action
Cycle AAC-##
Start Date First day of the current fiscal year
c) Choose Enter to go to the next screen.
d) In the Text field; enter Group ## assessment .
e) Choose Goto → Cycle Run Group and click the Create Group icon.
f) Enter the following data:
Field Value or Action
Cycle Run Group GR##
Text Group ## cycle run
group
g) Choose Copy (Enter) and press Enter to confirm the messages that
follow.
Continued on next page
362 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
2. Attach the segment AACS-## and enter the description Service ##
assessment . Enter assessment cost element 631300 for company services.
Allocate 100% of the posted actual amounts from your sender cost center.
The receiver tracing factor that you enter on the same screen allocates fixed
percentages.
a) Choose Attach Segment .
b) Enter the following data:
Field Value or Action
Segment Name AACS-##
Description Service ## assessment
Assessment Cost Element 631300
c) Verify that the sender values are correct.
Field Value or Action
Sender Rule Posted amounts
Share in % 100
Actual Value Origin Should be selected
Receiver Tracing Factor group
box
Select Fixed Percentages for the
receiver rule.
3. The sender of the allocation is your service cost center ( IT-## ). Enter cost
element group OAS for the allocation. The receiver of this allocation is
cost center group HAC050 .
a) Choose the Senders/Receivers tab page.
b) Enter the following data:
Field Value or Action
Sender Cost Center IT-##
Sender Cost Element, Group OAS
Receiver Cost Center, Group HAC050
4. Switch to the Receiver Tracing Factor tab page to define a cost allocation
of 93 % to cost center SUPPORT , a cost allocation of 5 % to cost center
CONS-## , and a cost allocation of 2 % to cost center EDUC-## .
Run a formal check on the cycle and segment you created.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 363 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Save your entries.
a) Choose Goto → Receiver Tracing Factor .
b) Enter the following data:
Field Value or Action
For the cost center SUPPORT
Portion/Percent
93
For the cost center CONS-## Portion/Percent
5
For the cost center EDUC-## Portion/Percent
2
c) Switch to the Segment Header tab page. Choose Cycle → Check →
Formal Check .
d) Save the cycle.
Hint: If the system asks you for a Customizing request, create
it with the short description Group-## and save it. Then
confirm the request number.
Continued on next page
364 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Task 3:
Carry out the actual assessment for your service cost center.
1. First execute the assessment as a test run for your cycle AAC-## for the
current period. Specify that detail lists are to be displayed.
a) Choose Accounting → Controlling → Cost Center Accounting →
Period-End Closing → Single Functions → Allocations → Assessment .
b) Enter the following data:
Field Value or Action
From Period Current period
To Period Current period
Fiscal Year Current fiscal year
Test Run Select
Detail Lists Select
Cycle AAC-##
c) Choose Enter .
The start date is copied from your cycle.
d) Choose Execute . Choose Receiver to display the amounts to be
assessed.
2. Execute the assessment as an update run to post your allocation.
Deselect the Test Run indicator.
a) Go back to the initial screen for the assessment.
b) Deselect the Test Run indicator. Choose Execute .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 365 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
3. Execute the Cost Centers: Actual/Plan/Variance report for the current
period and plan version 0to see how the assessment affects your service cost
center, IT-## . What is the balance on your cost center?
a) Choose Accounting → Controlling → Cost Center Accounting →
Information System → Reports for Cost Center Accounting →
Plan/Actual Comparisons → Cost Centers: Actual/Plan/Variance .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
From Period Current period
To Period Current period
Version 0
Cost Center IT-##
c) Execute the report.
The balance should be zero .
366 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Overhead Cost Controlling
Lesson Summary
You should now be able to:
• Post statistical key figures to an account assignment object
• Perform a cost assessment from one cost center to several other cost centers
• Settle the costs for an internal order to a cost center
2010 © 2010 SAP AG. All rights reserved. 367 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Lesson: Period-End Closing in Product Cost Controlling
Lesson Overview
This lesson discusses the typical periodic transactions for cost objects. Since
we provide services for customers in our examples, we use objects on which, in
addition to template allocation and overhead cost allocation, a results analysis
and settlement is performed.
Lesson Objectives
After completing this lesson, you will be able to:
• Allocate overhead costs and process costs to a cost object
• Perform a results analysis
• Settle the balance for the cost object
Business Example
At the end of a period you want to allocate overhead costs for the period that have
not yet been allocated to the cost objects and then settle the cost objects. With
longer-running activity output processes, you want to perform a period-based
accrual calculation on the cost objects to show profit and loss more accurately in
the P&L statement / on the balance sheet, as well as in Profit Center Accounting.
Period-End Closing in Cost Object Controlling
Cost objects are not objects on which balances should permanently remain. For
this reason, when period-end closing activities are performed, the remaining
overhead costs are allocated to the cost objects by way of periodic allocations
and the cost objects are settled.
368 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
Figure 175: Period-End Closing in Cost Object Controlling
Even though there are many different cost objects in the ERP system, the general
period-end closing process in Cost Object Controlling is largely the same. The
main difference occurs in final costing. While work in process and variance is
calculated in make-to-stock production scenarios, a results analysis is performed
in make-to-order production. Although all three functions are optional, they are
nevertheless recommended for calculating profit/loss by period.
Figure 176: Template Allocation of Services and Processes
2010 © 2010 SAP AG. All rights reserved. 369 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Using the periodic template allocation transaction, processes and activities
can be allocated to the cost objects according to cause. Since you can use all
the information in the ERP system as cost drivers to create formulas, it should
be possible to assign the costs very closely to cause in spite of the fact that
the allocation is automatic. Only the allocation quantities are calculated in the
template. These are then valuated with the price for the activity type or process.
Thus template allocation provides a valuated quantity flow that allocates overhead
costs very close to cause to the cost objects. Consequently, it is a considerable
improvement on other allocation methods such as overhead rates.
Template allocation therefore contributes to better cost transparency and improved
analysis of the overhead costs on the cost object.
Revaluation with Actual Prices
If, as part of period-end closing in Overhead Cost Controlling, you have calculated
the actual prices for your activity types, you can now revaluate the activity and
process quantities that have flowed to the cost objects with these actual prices.
Since the difference between the plan and actual price can be attributed to
variances on the cost centers that are not the responsibility of the cost objects,
you should consider to what extent you actually want to pass these variances
on to the cost objects.
Figure 177: Overhead Rate
In traditional cost controlling, overhead rates on cost objects are the standard
method for allocating overhead costs to cost objects. Here, you define the cost
elements to which you want to apply overhead in Customizing, and determine a
percentage for the overhead. The calculated costs are stored on the cost object
under an overhead cost element.
370 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
Since you can only use consumption costs and consumption quantities for the cost
object as tracing factors (cost drivers) for calculating the overhead rates that are
applied, many overhead rates may not result in an allocation of overhead costs
according to cause. Instead, overhead rates have a tendency to show expensive
products as more expensive and cheap products as even cheaper.
Results Analysis
Figure 178: Results Analysis and Settlement
Particularly with longer-term activity output processes, it is frequently the case
that the revenues and costs on the cost object do not match at the end of the period
and need to be accrued.
Example: An activity output process lasts several months. Due to the nature of
the contract, however, you can only bill the customer at the end of the process. In
this case, costs would accumulate on the order every month without being offset
by revenues. If you were to settle these costs in Profitability Analysis without
further measures, they would be shown as a loss. In reality, however, no loss has
been incurred. It is simply the case that revenue is formed at a later point in time.
The results analysis therefore accrues the costs and revenues in such a way that
profit/loss is no longer shown incorrectly in Profitability Analysis (as well as
in FI and PCA).
2010 © 2010 SAP AG. All rights reserved. 371 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 179: Principle of Results Analysis
The results analysis procedure is as follows:
1. Determine the percentage of completion on the cost object.
You can do this, for example, by comparing actual and plan values, by
looking at line items that have not yet been billed, as well as by entering
data manually.
2. In accordance with the percentage of completion, you try to calculate the
“correct revenues by period” and the “correct costs by period”.
You can do this by multiplying plan values with the percentage of completion
as well as by entering data manually.
3. In a simple case, the calculated costs and revenues are settled to Profitability
Analysis as costs and revenues by period.
4. To show the same result in FI and PCA, however, you need to form
adjustment items for the difference between the calculated costs and revenues
and the costs and revenues that have already been posted there, and transfer
these to FI and PCA.
372 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
Figure 180: Creating Inventories and Reserves
Where values do not match the calculated percentage of completion, they are
adjusted by either inventories or reserves. Consequently, these values appear on
both the cost and the revenue side. Creating inventories involves a posting to a
revenue account, whereas creating reserves causes a posting to an expense account.
Figure 181: Settling Inventories and Reserves
2010 © 2010 SAP AG. All rights reserved. 373 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
During settlement, sales costs and revenues are transferred to Profitability
Analysis, whereas inventories and reserves are posted to FI and PCA. A results
analysis is run again for each of the periods that follow, and the change in the
inventories and reserves is settled.
The following shows two examples with figures using two methods:
Figure 182: Example: Revenue-Based Results Analysis
With this method, the percentage of completion is formed by the relation between
actual and planned revenue. The sales costs and revenues are calculated by
multiplying the percentage of completion with the planned values. The costs side
is adjusted by formation of work in progress (WIP).
Hint: This method realizes profits at a very late stage. It is a very popular
method with the German Commercial Code (prudence principle).
374 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
Figure 183: Example: Cost-Based POC Valuation Method
With this method, the percentage of completion is formed by the relation
between actual and planned costs. The sales costs and revenues are calculated by
multiplying the percentage of completion with the planned values. The revenue
side is adjusted by formation of revenue in excess of billings.
Hint: In certain cases, this method can anticipate revenues that have not
yet been realized, and consequently realizes revenue at a very early stage.
This method is very popular with US-GAAP, but can lead to prohibited
bases for valuation according to the German Commercial Code.
2010 © 2010 SAP AG. All rights reserved. 375 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 184: Predefined Results Analysis Methods
To keep Customizing settings simple, SAP provides 17 predefined valuation
methods you can use in results analysis. It is recommended that you only use the
predefined methods, even though you can define other methods in an “expert
mode”. In principle, you should consult your external auditor to determine
which methods you are allowed to use, and which not, to comply with the legal
accounting requirements of your particular country. Since many enterprises
need to prepare financial statements in parallel according to different accounting
principles, you can run several results analysis versions in parallel with different
methods.
376 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
Settlement
Figure 185: Settlement of the Cost Object
The cost object is settled at the end of the period. In principle, settlement follows
the settlement rule entered in the cost object. In many cases, this was generated
automatically. The values are normally settled as follows:
• Sales costs and revenues to Profitability Analysis
• Inventories and reserves to Financial Accounting and Profit Center
Accounting.
Hint: In some scenarios, cost objects are used in combination, for
example, a sales order combined with a network, or a sales order combined with production orders. In these cases, period-end closing is performed on
all cost objects, so WIP and variance calculation may play a role here too.
2010 © 2010 SAP AG. All rights reserved. 377 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Menu Paths for Period-End Closing in Product Cost Controlling
Action Menu path
Call the Individual Processing
transaction
Accounting → Controlling → Product Cost
Controlling → Cost Object Controlling →
Intangible Goods and Services → Period-End
Closing → Single Functions: Order
Call the Individual Processing
transaction
Accounting → Controlling → Product Cost
Controlling → Cost Object Controlling →
Product Cost by Sales Order → Period-End
Closing → Single Functions
Check costs and revenues posted
to internal orders
Accounting → Controlling → Product Cost
Controlling → Cost Object Controlling
→ Intangible Goods and Services →
Information System → Reports for Costs for
Intangible Goods and Services→ Detailed
Reports → For Internal Orders with
Revenues
Check costs and revenues posted
to sales orders
Accounting → Controlling → Product Cost
Controlling → Cost Object Controlling →
Product Cost by Sales Order → Information System → Reports for Product Cost by Sales Order → Detailed Reports → For Sales
Order
378 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
Exercise 17: Period-End Closing in
Product Cost Controlling
Exercise Objectives
After completing this exercise, you will be able to:
• Execute period-end closing in Cost Object Controlling
• Execute template allocation and application of overhead on cost objects
• Explain and perform a results analysis
• Perform an order settlement.
Business Example
The periodic transactions are executed at the end of the period in Cost Object
Controlling to achieve period-end closing. First, the overhead costs that have not
yet been allocated during the period are allocated to the cost objects using template
allocation and application of overhead. Final costing then takes place, comprising
the optional results analysis and settlement.
Task 1:
Period-end closing of the internal order with revenue
1. Use the Order Manager to change the master record of your internal order
with revenue. Enter the costing sheet COGM and the overhead key SAP10 .
2. Run template allocation for your internal order.
Which template does the system find and what will be allocated?
3. Execute application of overhead for your internal order.
To what is overhead applied?
4. Call a Plan/Actual Comparison report and take a look at the values.
5. Settle the order.
To where are the sales costs and revenues settled?
Take a closer look at the settlement.
6. Call a Plan/Actual Comparison report and take a look at the values.
Task 2:
Period-End Closing of the Sales Order
1. Run template allocation for your sales order.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 379 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Which template does the system find and what will be allocated?
2. Execute application of overhead for your internal order.
To what is the overhead applied?
3. Call a Plan/Actual Comparison report and take a look at the values.
4. Perform the results analysis .
Which values are found?
How do you explain the values?
5. Call a Plan/Actual Comparison report and take a look at the results analysis
in the /RESULT layout.
6. We now assume we have received the message informing us that the
consulting order has been completed. This prompts us to bill the senior
consulting hours now too.
Consequently, create a billing request for your sales order. Delete the billing
block and include an order reason.
7. Create the billing document for your billing request.
Make a note of the billing document number and the billing date.
8. Check the accounting documents created for the billing document.
Display the billing document. Branch to the overview of the accounting
documents and analyze the accounting document and profit center document.
9. Call a Plan/Actual Comparison report and take a look at the values.
10. Perform the results analysis again.
Which values are found?
How do you explain the values?
11. Call a Plan/Actual Comparison report and take a look at the results analysis
in the /RESULT layout.
12. Status change for the sales order.
Since the values for the sales order naturally do not match the plan values,
the sales order still shows WIP or reserves. You therefore set the status of
the sales order to technically completed . As a result, the system recognizes
that the order has been completed, no longer continues to form inventories or
reserves, and breaks down those that have already been formed.
13. Repeat the results analysis . Save the new results and take a look at the
report with the /RESULT layout.
14. Perform the settlement for the sales order.
Continued on next page
380 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
Which values are found?
How do you explain the values?
15. Finally, take another look at the sales order report.
What balance does it show now?
2010 © 2010 SAP AG. All rights reserved. 381 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Solution 17: Period-End Closing in
Product Cost Controlling
Task 1:
Period-end closing of the internal order with revenue
1. Use the Order Manager to change the master record of your internal order
with revenue. Enter the costing sheet COGM and the overhead key SAP10 .
a) Call your internal order in change mode in the Order Manager.
Choose Accounting → Controlling → Product Cost Controlling →
Cost Object Controlling → Intangible Goods and Services → Cost
Object → Order (with Revenue) → Change
b) Enter your internal order number and press Enter .
Branch to the Period-End Closing tab page.
c) Add the costing sheet COGM and the overhead key SAP10 .
d) Save your order and exit the Order Manager.
2. Run template allocation for your internal order.
Which template does the system find and what will be allocated?
a) Choose Accounting → Controlling → Product Cost Controlling
→ Cost Object Controlling → Intangible Goods and Services →
Period-End Closing → Single Functions: Order .
Hint: Unless otherwise specified, this menu path also applies
to the rest of this exercise.
→ Template Allocation → Individual Processing .
Enter the following data:
Field Value or Action
Order Your internal order
number
Version 0
Period Current period
Continued on next page
382 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
Fiscal Year Current fiscal year
Processing Options Background Processing:
No. Test Run: No.
Detail Lists: Yes.
Choose Execute .
b) The system finds the template COPC-10 and allocates one unit of the
process 300900.
3. Execute application of overhead for your internal order.
To what is overhead applied?
a) Choose Accounting → Controlling → Product Cost Controlling
→ Cost Object Controlling → Intangible Goods and Services →
Period-End Closing → Single Functions: Order → Overhead →
Actuals: Individual Processing
Enter the following data:
Field Value or Action
Order Your internal order
number
Period Current period
Fiscal Year Current fiscal year
Processing Options Test Run: No. Dialog Display: Yes.
Choose Execute .
b) Overheads of 10% are applied to raw material costs.
4. Call a Plan/Actual Comparison report and take a look at the values.
a) Choose Product Cost Controlling → Cost Object Controlling →
Intangible Goods and Services → Information System → Reports for
Costs for Intangible Goods and Services→ Detailed Reports → For Internal Orders with Revenues
b) Enter your order number and choose “Cumulated”. Choose Execute.
c) You now see the costs and revenues for the period.
5. Settle the order.
To where are the sales costs and revenues settled?
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 383 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Take a closer look at the settlement.
a) Choose Settlement → Individual Processing .
Enter the following data:
Field Value or Action
Order Your internal order
number
Period Current period
Fiscal Year Current fiscal year
Processing Type Automatic
Processing Options Test Run: No. Check Trans. Data: No.
Choose Settlement Rule . You can find information about the applicable
settlement rule again here.
Return to the previous step and choose Execute .
Choose Detail Lists .
b) Choose Sender . You can see the amounts on the internal order that
are settled. Choose Back.
c) Choose Receiver . You can see the amounts that will be sent to the
profitability segment. Choose Back.
d) Choose Accounting Documents and take a look at the profit center
document and the profitability analysis document.
e) Exit the settlement transaction.
6. Call a Plan/Actual Comparison report and take a look at the values.
a) Choose Product Cost Controlling → Cost Object Controlling →
Intangible Goods and Services → Information System → Reports for
Costs for Intangible Goods and Services→ Detailed Reports → For
Internal Orders with Revenues
b) Enter your order number and choose “Cumulated”. Choose Execute.
c) You can see that the costs and revenues for the period have been settled.
The order balance is 0.
Task 2:
Period-End Closing of the Sales Order
1. Run template allocation for your sales order.
Continued on next page
384 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
Which template does the system find and what will be allocated?
a) Choose Accounting → Controlling → Product Cost Controlling →
Cost Object Controlling → Product Cost by Sales Order → Period-End
Closing → Single Functions .
Hint: Unless otherwise specified, this menu path also applies
to the rest of this exercise.
→ Template Allocation
Enter the following data:
Field Value or Action
Sales Organization 1000
Sales Document Your sales order number
Version 0
Period Current period
Fiscal Year Current fiscal year
Processing Options Background Processing: No. Test Run: No. Detail Lists: Yes.
Choose Execute .
b) The system finds no template.
Clearly, it was not possible to find a template for this order from the
Assign Templates to Cost Objects table. This could be intentional,
however. Just because template allocation is being used does not
necessarily mean that a template has to be allocated for each cost object.
2. Execute application of overhead for your internal order.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 385 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
To what is the overhead applied?
a) Choose Accounting → Controlling → Product Cost Controlling → Cost
Object Controlling → Intangible Goods and Services → Period-End
Closing → Single Functions: Order → Overhead .
Enter the following data:
Field Value or Action
Sales Organization 1000
Sales Document Your sales order
number
Period Current period
Fiscal Year Current fiscal year
Processing Options Test Run: No. Detail
Lists: Yes. Dialog
Display: Yes.
Choose Execute .
b) Choose Next List Level .
Although the costing sheet COGM is entered in the sales order, no overhead is calculated. Either there are no cost elements to which
overheads could be applied, according to the Customizing settings, or
the overhead conditions are dependent on an overhead key that has
not been entered in the sales order.
3. Call a Plan/Actual Comparison report and take a look at the values.
a) Choose Accounting → Controlling → Product Cost Controlling →
Cost Object Controlling → Product Cost by Sales Order → Information
System → Reports for Product Cost by Sales Order → Detailed Reports
→ For Sales Order
b) Enter your sales order number and choose “Cumulated”. Choose
Execute.
c) You now see the costs and revenues for the period.
4. Perform the results analysis .
Which values are found?
Continued on next page
386 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
How do you explain the values?
a) Choose Accounting → Controlling → Product Cost Controlling
→ Cost Object Controlling → Intangible Goods and Services →
Period-End Closing → Single Functions: Order → Results Analysis →
Execute → Individual Processing .
Enter the following data:
Field Value or Action
Sales Order Your sales order
number
Item 10
Period Current period
Fiscal Year Current fiscal year
RA Version 0
Processing Options Manual Processing Only: No. Full Log: Yes.
Choose Execute .
b) The allocation structure SDOR1 is entered in the sales order. A
revenue-based results analysis is evidently performed for results
analysis version 0. The actual revenue is calculated as a ratio of the planned revenue and a percentage of completion determined. This,
multiplied by the planned costs, produces the expected costs. Since the
actual costs are greater than the expected costs, a WIP is created for the difference.
Save the results analysis.
5. Call a Plan/Actual Comparison report and take a look at the results analysis
in the /RESULT layout.
a) Choose Accounting → Controlling → Product Cost Controlling →
Cost Object Controlling → Product Cost by Sales Order → Information
System → Reports for Product Cost by Sales Order → Detailed Reports
→ For Sales Order
b) Enter your sales order number and choose “Cumulated”. Choose
Execute.
c) Switch to the /RESULT layout. Choose the Select Layout button and
select the /RESULT layout.
d) You can now see the revenues, sales costs, and work in process.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 387 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
6. We now assume we have received the message informing us that the
consulting order has been completed. This prompts us to bill the senior
consulting hours now too.
Consequently, create a billing request for your sales order. Delete the billing
block and include an order reason.
a) Choose Logistics → Sales and Distribution → Sales → Order →
Subsequent Functions → Resource-Related Billing Document .
b) Enter your sales order number if it is not proposed as a default value by
the system. Choose Expenditure View .
c) Display the item. When you double-click on it, the system displays
the two consulting services and support service with the amounts to
be billed underneath. Only the open (that is, the previously deferred)
amount is displayed, however.
d) Choose Sales Price View . Display the SD item and the service items.
Only the price for the senior consulting service is determined now.
e) Select Save Billing Request . The system creates the billing request and
displays it immediately in change mode for you to process it further.
Delete the entry in the Billing Block field and add the Order Reason
Customer recommendation on the Sales tab page.
Save your billing request.
7. Create the billing document for your billing request.
Make a note of the billing document number and the billing date.
a) Choose Logistics → Sales and Distribution → Sales → Order →
Subsequent Functions → Billing Document .
b) Enter the number of the billing request (if it is not proposed
automatically by the system). Choose Save .
c) Make a note of the billing document number and the billing date.
8. Check the accounting documents created for the billing document.
Display the billing document. Branch to the overview of the accounting
documents and analyze the accounting document and profit center document.
a) Choose Billing Document → Display .
b) Enter the billing document number. Choose Accounting Overview .
c) Branch to the accounting document and the profit center document by
clicking on the respective entry.
d) Go back to the billing document.
Continued on next page
388 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
9. Call a Plan/Actual Comparison report and take a look at the values.
a) Choose Accounting → Controlling → Product Cost Controlling →
Cost Object Controlling → Product Cost by Sales Order → Information
System → Reports for Product Cost by Sales Order → Detailed Reports
→ For Sales Order
b) Enter your sales order number and choose “Cumulated”. Choose
Execute.
c) You now see the current costs and revenues for the period.
10. Perform the results analysis again.
Which values are found?
How do you explain the values?
a) Choose Accounting → Controlling → Product Cost Controlling
→ Cost Object Controlling → Intangible Goods and Services →
Period-End Closing → Single Functions: Order → Results Analysis →
Execute → Individual Processing .
Enter the following data:
Field Value or Action
Sales Order Your sales order
number
Item 10
Period Current period
Fiscal Year Current fiscal year
RA Version 0
Processing Options Manual Processing Only: No. Full Log: Yes.
Choose Execute .
Hint: If the system outputs an information message, confirm
this with Enter .
Then save your result.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 389 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
11. Call a Plan/Actual Comparison report and take a look at the results analysis
in the /RESULT layout.
a) Choose Accounting → Controlling → Product Cost Controlling →
Cost Object Controlling → Product Cost by Sales Order → Information
System → Reports for Product Cost by Sales Order → Detailed Reports
→ For Sales Order
b) Enter your sales order number and choose “Cumulated”. Choose
Execute.
c) Switch to the /RESULT layout. Choose the Select Layout button and
select the /RESULT layout.
d) You can now see the revenues, sales costs, and work in process.
12. Status change for the sales order.
Since the values for the sales order naturally do not match the plan values,
the sales order still shows WIP or reserves. You therefore set the status of
the sales order to technically completed . As a result, the system recognizes
that the order has been completed, no longer continues to form inventories or
reserves, and breaks down those that have already been formed.
a) Choose Logistics → Sales and Distribution → Sales → Order →
Change
b) Enter your sales order number
and choose Enter . Confirm the messages.
c) Choose Goto → Item → Status . Choose the Change icon behind the
System Status field. Choose Set for technically completed . Save your
order.
13. Repeat the results analysis . Save the new results and take a look at the
report with the /RESULT layout.
a) Run the results analysis in the same way as in exercise step 10.
The inventories and reserves should be 0.
b) Run the report in the same way as in exercise step 11. The value 0
should appear in the inventories and reserves column. There are now
only sales costs and revenues.
14. Perform the settlement for the sales order.
Which values are found?
Continued on next page
390 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Period-End Closing in Product Cost Controlling
How do you explain the values?
a) Choose Accounting → Controlling → Product Cost Controlling → Cost
Object Controlling → Intangible Goods and Services → Period-End
Closing → Single Functions: Order → Settlement .
Enter the following data:
Field Value or Action
Sales Organization 1000
Sales Document Your sales order
number
Sales Document Item 10
Settlement Period Current period
Fiscal Year Current fiscal year
RA Version 0
Processing Options Detail Lists: Yes.
Choose Execute .
b) Choose Detail List .
Choose the Sender , Receiver , and Accounting Documents tab pages one
after the other. In particular, take a look at the profitability analysis document. Under Characteristics you can see the values of the
characteristics that represent the profitability segment. Under Value
Fields you can see the fields that have assumed the settlement amounts.
15. Finally, take another look at the sales order report.
What balance does it show now?
a) Run the report in the same way as in exercise step 11. All sales costs
and revenues have been settled to Profitability Analysis. The actual
costs column shows a balance of 0.
2010 © 2010 SAP AG. All rights reserved. 391 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Lesson Summary
You should now be able to:
• Allocate overhead costs and process costs to a cost object
• Perform a results analysis
• Settle the balance for the cost object
392 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
Lesson: Financial Statement in Management Accounting
Lesson Overview
This lesson deals with the closing operations required for displaying a periodic
and complete result in Profitability Analysis and Profit Center Accounting. It also
discusses account-based and costing-based profitability analysis.
Lesson Objectives
After completing this lesson, you will be able to:
• List the master data used in profitability and sales accounting and explain its
purpose
• List the sources of data for profitability and sales accounting
• Describe the flow of data to Profitability Analysis
• Describe the flow of data to Profit Center Accounting
Business Example
At the end of the period you need to generate reports that are required to evaluate
profit and loss. You want to use these reports to analyze the market segments in
Profitability Analysis and the internal areas of responsibility for profit and loss
in Profit Center Accounting.
Master Data in Profitability and Sales Accounting
Profitability and Sales Accounting uses the following master data:
• Characteristic
• Characteristic value
• Value field
• Profitability segment
• Profit center
2010 © 2010 SAP AG. All rights reserved. 393 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 186: Master Data in Profitability and Sales Accounting
Characteristics, characteristic values, and value fields play an important role in
Profitability Analysis.
• You use the Characteristic to specify what you want to report. Examples of
characteristics are divisions, regions, products, and customers.
• Examples of characteristic values are regions south or north .
• You use a value field to specify the key figures you want to track and
analyze. Examples of value fields are gross sales, overheads, discounts,
and cost of sales.
Aprofitability segment describes a specific value combination of all
characteristics, and corresponds to a market segment in the business sense. A
profitability segment is generated automatically as soon as it is addressed.
394 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
Figure 187: Basic Terms Used in Profitability Analysis
Types of Profitability Analysis
Profitability Analysis is an application in Management Accounting. Two
versions are available for profitability reporting: costing-based and account-based
profitability analysis.
Costing-based profitability analysis
• Reports display values by value field (flexibly defined key figures).
• They can be supplemented with other costing-based values, such as
accrued freight costs.
• Reports use special database tables.
• Revenues and cost of sales are produced at the same time you create
the billing document.
Account-based profitability analysis
• Reports display values by cost element and revenue element.
• They are reconciled directly with Financial Accounting at account level.
• Reports share data tables with other CO applications, such as Cost
Center Accounting.
• Revenues are posted when the billing document is created, but cost of
sales are updated at the time of the goods issue.
2010 © 2010 SAP AG. All rights reserved. 395 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 188: Types of Profitability Analysis
Data Flow in Profitability Analysis
The data from sales order management is one of the key sources of information
for profitability analysis. In costing-based profitability analysis , information
can be taken at two points in the sales order cycle: when an order is created or
changed (optional) and when a billing document is generated. In account-based
profitability analysis , information can be taken at two points in the sales order
cycle: when a goods issue is posted and when a billing document is generated.
Figure 189: Data Flow in Profitability Analysis
396 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
Costs from other areas of Management Accounting can be transferred periodically
to Profitability Analysis using activity and template allocations, settlements, and
assessments.
You can also make direct account assignments from Financial Accounting to
Profitability Analysis manually.
To display all overhead costs in Profitability Analysis, you allocate the overhead
costs to Profitability Analysis that were not allocated to Product Cost Controlling.
Various options are available for doing this.
• Internal activity allocation
• Assessment
• Order settlement
• Project settlement
Figure 190: Allocation of Overhead Costs: Overview
For example, you can allocate internal activities from cost centers to Profitability
Analysis either directly or indirectly. In addition to the sender (cost center) and
receiver (profitability segment), you enter the quantity of the activity provided.
The system then valuates this quantity using the price of the activity type in
question. The calculated value is credited to the sender and debited to the
profitability segment that receives the activity quantity. This means, for example,
that you can post a transport activity directly to a specific customer without having
to post it to a cost center or an order first.
You can use the assessment method to transfer variances in production cost centers
and costs incurred on cost centers for sales and administration to Profitability
Analysis, for example.
2010 © 2010 SAP AG. All rights reserved. 397 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Figure 191: Assessing Cost Center and Process Costs
The cost centers and processes are credited with the allocated amount. This means
that all costs can only be allocated once. Cost center costs and process costs are
assessed in the same way as in Overhead Cost Controlling, whereby you define
cycles and execute them on a periodic basis. These cycles contain the control
information required for assessment and are maintained in Customizing.
In the SAP system, you can settle internal orders (Management Accounting),
sales orders (Sales Order Management), projects (Project System), as well as
production and repetitive shop orders with product cost collectors (Production
Planning) to profitability segments. Orders and projects can be used for various
functions relevant to Profitability Analysis.
Figure 192: Order Settlement to Profitability Analysis
398 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
You can use internal orders or internal projects for monitoring the costs of an
internal activity such as an advertising campaign. The costs of the activity are
assigned to the order, collected, and settled to the relevant profitability segments
(for example, the corresponding product group and sales area) after the job is
completed.
The make-to-order manufacturer can also use an order or project. If the order or
project is a sales order from Sales Order Management, a customer project, or
a Management Accounting order for which revenue postings can be made, the
manufacturer can post costs (for example, cost of goods manufactured, or sales
and administration costs) as well as revenues and sales deductions to the order
or project in question. After the product is finished, the costs and revenues are
settled to Profitability Analysis. You can also transfer accrued values such as
cost of sales and reserves for imminent losses to Profitability Analysis. This is
particularly important for milestone billing.
Profit Center Accounting
Traditionally, Profit Center Accounting belongs to Management Accounting
and shows the results for the profit center in cost center overabsorption and
underabsorption reports (similar to cost center reports). However, new accounting
theories dictate that profit center results should also be shown in the form of profit
and loss statements and balance sheets.
In principle, profit centers can have the same basis for valuation as in Financial
Accounting. However, you can decide whether or not you want to use different
valuation approaches in profit centers to those in FI (for example, based on accrued
costs, different depreciation of assets, or by using transfer prices).
New General Ledger Accounting in SAP ERP offers you a choice: You can run
Profit Center Accounting in Financial Accounting or in Management Accounting
(classic Profit Center Accounting). Your choice will depend on the main objectives
of the analysis in Profit Canter Accounting.
Hint: In the initial period that follows migration to New General Ledger
Accounting, you can run Profit Canter Accounting in parallel in FI and
CO. This is not recommended, however.
Note: For more information, see SAP Notes 1280060 and 826357.
2010 © 2010 SAP AG. All rights reserved. 399 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Possible reasons for running Profit Center Accounting in FI could be:
• You want to use the profit center as a document splitting characteristic in
order to arrange your FI documents according to profit centers. (You can also
do this for business areas and segments.)
• You want a simple way of setting up reporting with reconciled profit and loss
statements and balance sheets for each profit center.
Possible reasons for running Profit Center Accounting in CO could be:
• You want to use special valuation approaches on your profit centers
(cost-based accrual calculations, special cost-accounting depreciation for
assets, or special prices for activity types or transfer prices).
• You want flexible analysis of the profit center when the original secondary
cost elements are posted in Management Accounting.
Financial Statement in Profit Center Accounting
The header of the profit center master record contains the profit center ID,
controlling area, validity period, and text fields for the name and description of
the profit center.
Figure 193: Profit Center Master Record
The Basic Data section of the profit center master record includes three fields: The
name of the person responsible for the profit center, the name of the department,
and the profit center group in the profit center standard hierarchy.
400 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
If you set the Lock indicator you can prevent postings to the profit center being
made. The lock is valid for the specified validity period. If a locked profit center is
assigned to an object (such as a cost center, production order, or internal order)
and a posting is attempted to that object, the system displays an error message and
does not post the data.
You can use the pushbuttons on the profit center master data screen to access
further information, where you can also enter more data for the profit center, such
as the address, telephone or fax number, and (with the new G/L) the segment .
Data Flow to Profit Center Accounting
When you install Profit Center Accounting, you assign a particular profit center to
each object for which costs or revenues are incurred in your system.
Figure 194: Profit Center Assignments
Every credit and debit that is made on an operative object in Controlling is
automatically posted to the assigned profit center too. If necessary, a summary of
the plan data can be derived from various planning sources (Logistics, CO). You
can also plan the profit center directly with New General Ledger Accounting.
2010 © 2010 SAP AG. All rights reserved. 401 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
To enable this integration to take place, all objects with costs and revenues have a
field in their master record where you can enter the corresponding profit center.
Here are some examples:
• In a project, the master data is assigned to the profit centers. Since a project
such as building a crane can involve several profit centers (for the design of
the engine, the construction of the frame, and so on), you can even assign the
various operative structures – WBS element, network header, and network
activity – to different profit centers.
• With sales orders, the items are assigned to a profit center, and the costs and
revenues updated as a result.
• Profitability segments in CO-PA have no master record. A profitability
segment combines characteristics such as customer, product, plant, or
distribution channel. One of these characteristics is always the profit center,
however, so the values for the profitability segment are posted in the profit
center too. The profit center can be derived automatically from the material
and plant, or from other characteristics. You can also enter it manually.
• With fixed assets, profit centers are assigned indirectly by way of the CO
objects defined in the fixed asset master record.
This means that a profit center represents the summarization of all posted values
for all assigned account assignment objects. In business terms, this corresponds
to a company subdivision responsible for profit. Additional allocations (such as
assessments) between the profit centers are possible.
Data Flow to Profit Center Accounting
If you have implemented Profit Center Accounting in New General Ledger
Accounting and defined the profit center as a financial statement characteristic,
all the data you need to create profit center profit and loss statements and balance
sheets is available. If you are still using Classic General Ledger Accounting,
however, you need to ensure that all the data you require is available in PCA
before you can create profit center profit and loss statements and balance sheets.
Hint: The following explanations apply only if you have implemented
Profit Center Accounting in Management Accounting (Classic Profit
Center Accounting).
402 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
Figure 195: Data Flow to Profit Center Accounting
Before you can analyze your profits by profit center, the system must summarize
all the profit-related postings in Profit Center Accounting.
The following data is transferred to Profit Center Accounting:
1. All postings for revenue and cost elements (assignment to the profit center
using the Management Accounting account assignment object)
2. Expense and revenue accounts that are posted to using logistics transactions
3. Balance sheet accounts and other expense and revenue accounts (optional)
Figure 196: Balance Sheet Items in Profit Center Accounting
2010 © 2010 SAP AG. All rights reserved. 403 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
If you assign balance sheet items to profit centers, the profit center manager is
responsible not only for the profit center's operating results, but also for its fixed
capital. You can also calculate additional key figures, such as return on investment.
You can transfer the following balance sheet items to profit centers:
• Fixed assets (acquisition costs and accumulated depreciation)
• Material stocks (raw materials, semifinished products, and finished products)
• Work in process
• Payables and receivables
Hint: You can only transfer payables and receivables during period-end
closing using a special program.
Figure 197: Distribution and Assessment
At the end of the period, costs are allocated internally.
• If the allocation (for example, assessment or distribution) takes place in
Overhead Cost Controlling, the debits and credits are also posted in Profit
Center Accounting.
• However, you can also choose to perform just one “political” allocation in
Profit Center Accounting only. In this case, debits and credits are only made
on the profit centers.
Revenues are normally allocated directly in Profit Center Accounting.
One of the main uses of distribution is to split balance sheet items (raw materials,
fixed assets, and so on) that were originally posted to a profit center and are now to
be distributed to various receiver profit centers.
404 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
Assessing and distributing Profit Center Accounting data makes sense only if all
period-end closing operations have been completed in the components (Financial
Accounting, Management Accounting, Sales Order Management, Materials
Management) that supply Profit Center Accounting with data.
Distribution and assessment are done in the same way as in Overhead Cost
Controlling, but they apply only to Profit Center Accounting data.
Menu Paths for Profitability Analysis in Management Accounting
Action Menu path
Display line items in
Profitability Analysis
Accounting → Controlling → Profitability
Analysis → Actual Postings → Display Line
Items
Run a report in Profitability
Analysis
Accounting → Controlling → Profitability Analysis → Information System → Execute Report
Run the plan/actual comparison for profit centers
Accounting → Controlling → Profit Center
Accounting → Information System → Reports for Profit Center Accounting → List-Oriented Reports → Profit Center Group: Plan/Actual
Variance
Run the plan/actual comparison for profit centers with New G/L Accounting
Accounting → Financial Accounting →
General Ledger → Information System →
General Ledger Reports (New) → Reports for Profit Center Accounting → Profit Center
Group: Plan/Actual/Variance
2010 © 2010 SAP AG. All rights reserved. 405 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
406 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
Exercise 18: Profitability and Sales
Accounting
Exercise Objectives
After completing this exercise, you will be able to:
• Call the results from various market segments
• Use drilldown reporting to analyze the data for different profitability
segments
Business Example
The business transactions have been entered in consulting and training and you
now want to examine the results from various market segments. You want to
know where your profits rose and where they fell, and analyze the causes of these
changes. This information is required not only at the end of the period, but also
after every sale is closed.
Task 1:
Display the line items in CO-PA .
1. As a result of settling the internal order and the sales order, postings were
made to Profitability Analysis for which the system generated line items.
In the Information System for Profitability Analysis, choose Display Line
Item List → Actual to select the line items you generated and take a detailed
look at them.
Select line items for your user ID and restrict the selection to postings with
record types C to F that were made yesterday and today.
Task 2:
Examine the results for your company in CO-PA . To do this, execute the
contribution margin report AC040 as graphical report output for the current fiscal
year.
1. Execute the contribution margin report AC040 as graphical report output for
the current fiscal year.
2. Analyze the result for customer 1171 (Hitech AG) and product R-CONSULT .
3. Drill down on the actual line items for customer 1171 to see their postings to
CO-PA and analyze the corresponding accounting documents.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 407 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Task 3:
Analyze the profit/loss in Profit Center Accounting
1. Analyze your profit center using reporting.
2. Display the results for the profit center as a list.
3. Display the result for profit center 1600 in detail. Take a look at the accounts
that were used to post to the profit center.
4. Analyze the origin of your revenues by profit center.
408 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
Solution 18: Profitability and Sales
Accounting
Task 1:
Display the line items in CO-PA .
1. As a result of settling the internal order and the sales order, postings were
made to Profitability Analysis for which the system generated line items.
In the Information System for Profitability Analysis, choose Display Line
Item List → Actual to select the line items you generated and take a detailed
look at them.
Select line items for your user ID and restrict the selection to postings with
record types C to F that were made yesterday and today.
a) Choose Accounting → Controlling → Profitability Analysis → Actual
Postings → Display Line Items .
b) On the Set Operating Concern screen, enter IDEA in the Operating
Concern field.
c) Choose Enter .
d) Enter the following data:
Field Value or Action
Record Type C to F
Date Created Yesterday
Date Created to Today’s date
Entered by Your user ID
e) Choose Execute . Choose Continue to clear the message regarding the
selection criteria.
f) Double-click a line item to display a detailed view.
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 409 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
Task 2:
Examine the results for your company in CO-PA . To do this, execute the
contribution margin report AC040 as graphical report output for the current fiscal
year.
1. Execute the contribution margin report AC040 as graphical report output for
the current fiscal year.
a) Choose Accounting → Controlling → Profitability Analysis →
Information System → Execute Report .
b) If prompted by the system, enter operating concern IDEA and choose
Continue .
c) From the list of reports, double-click AC040 .
d) Enter the following data:
Field Value or Action
Fiscal Year Current fiscal year
Version 100
e) Choose Execute .
2. Analyze the result for customer 1171 (Hitech AG) and product R-CONSULT .
a) In the navigation area, double-click on Customer to get a list of all the
customers to whom we have sold products during the current year. Double-click on customer 1171 to select this value. In the form area,
you can now see a contribution margin report for just this customer.
b) In the navigation area, double-click on Product to get a list of all the
products we have sold to customer 1171 during the current year.
Double-click on product R-CONSULT to select this value. In the
form area, you can now see a contribution margin report for just this
customer with just this product.
c) In the navigation area, double-click on customer 1171 to remove this
value restriction. In the form area, you can now see a contribution
margin report for the product R-CONSULT, independent of the
customers who received it.
d) In the navigation area, double-click on Customer to get a list of all the
customers who have received the product R-CONSULT.
e) In the navigation area, double-click on product R-CONSULT to remove
this value restriction.
Continued on next page
410 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
3. Drill down on the actual line items for customer 1171 to see their postings to
CO-PA and analyze the corresponding accounting documents.
a) In the navigation area, double-click on Customer to get a list of all the
customers to whom we have sold products during the current year.
Double-click on customer 1171 to select this value.
b) In the list area, position the cursor on the actual amount in the first row.
c) Choose Goto → Line Items .
d) Double-click on the line item for the actual period to get a detailed view.
Analyze the values for the characteristics and value fields.
e) Choose Environment → Integration to display the accounting
documents that were created together with the CO-PA line item.
Task 3:
Analyze the profit/loss in Profit Center Accounting
1. Analyze your profit center using reporting.
a) Choose Accounting → Financial Accounting → General Ledger →
Information System → General Ledger Reports (New) → Reports for
Profit Center Accounting → Profit Center Group: Plan/Actual/Variance
b) Enter the following data:
Field Value or Action
Currency Type 30
Company Code 1000
Ledger 0L
Controlling Area 1000
FIS Annual Rep.Struc INT
Plan Version 0
Fiscal Year Current year
From Period Current period
To Period Current period
Output Type Graphical Report
Output
Choose Execute .
Continued on next page
2010 © 2010 SAP AG. All rights reserved. 411 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 8: Period-End Closing Aspects of Management Accounting AC050
2. Display the results for the profit center as a list.
a) In the navigation area, double-click Profit Center .
3. Display the result for profit center 1600 in detail. Take a look at the accounts
that were used to post to the profit center.
a) In the list area, double-click Profit Center 1600 .
By so doing, you fix this profit center.
b) In the navigation area, double-click Account Number .
4. Analyze the origin of your revenues by profit center.
a) In the list area, double-click 800000 Revenues . By so doing, you fix
the value of the account.
b) In the navigation area, double-click 1600 . By so doing, you release the
characteristic value.
c) In the navigation area, double-click Profit Center . By so doing, you
release the characteristic value.
d) In the list area you can now see the revenues for each profit center.
412 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Financial Statement in Management Accounting
Lesson Summary
You should now be able to:
• List the master data used in profitability and sales accounting and explain its
purpose
• List the sources of data for profitability and sales accounting
• Describe the flow of data to Profitability Analysis
• Describe the flow of data to Profit Center Accounting
2010 © 2010 SAP AG. All rights reserved. 413 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit Summary AC050
Unit Summary
You should now be able to:
• Explain the purpose and basic functions of the Schedule Manager
• Describe the typical sequence of period-end closing activities within
Management Accounting
• Post statistical key figures to an account assignment object
• Perform a cost assessment from one cost center to several other cost centers
• Settle the costs for an internal order to a cost center
• Allocate overhead costs and process costs to a cost object
• Perform a results analysis
• Settle the balance for the cost object
• List the master data used in profitability and sales accounting and explain its
purpose
• List the sources of data for profitability and sales accounting
• Describe the flow of data to Profitability Analysis
• Describe the flow of data to Profit Center Accounting
414 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Test Your Knowledge
Test Your Knowledge
1. You can include many different types of tasks in a task list. What are they?
Choose the correct answer(s).
□ A Reminders
□ B Notes
□ C Transactions
□ D Programs
□ E e-mails
□ F Jobs
2010 © 2010 SAP AG. All rights reserved. 415 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Test Your Knowledge AC050
Answers
1. You can include many different types of tasks in a task list. What are they?
Answer: B, C, D, F
From a task list you can start jobs, transactions, and programs. You can
also include notes that remind you to make a phone call or do some other
task outside the system.
416 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Librería ERP https://libreriaerp.com/us [email protected] Librería ERP https://libreriaerp.com/us [email protected]

Unit9
Appendix: Special Topics in
Management Accounting
Unit Overview
Unit Objectives
After completing this unit, you will be able to:
• Explain the concept of preliminary valuation price
• Explain the concept of periodic unit price
• Explain the concept of transfer price
• Explain the purpose of the reconciliation ledger
• Run a reconciliation report between Financial Accounting and Management
Accounting
• Describe the advantages of using Master Data Governance for Financials
Unit Contents
Lesson: Management Accounting with Actual Costing or Transfer Prices
(Optional).........................................................................418
Lesson: Reconciliation Ledger (Optional) ...................................427
Exercise 19: Reconciliation Ledger ......................................431
Lesson: Master Data Governance for Financials (Optional) ..............434
2010 © 2010 SAP AG. All rights reserved. 417 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Unit 9: Appendix: Special Topics in Management Accounting AC050
Lesson: Management Accounting with Actual Costing or
Transfer Prices (Optional)
Lesson Overview
This lesson discusses actual costing and the concepts used to calculate the actual
cost of goods manufactured at the end of a period and to revaluate warehouse
stock as necessary. It covers the concepts of preliminary valuation price, periodic
unit price, and transfer price.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the concept of preliminary valuation price
• Explain the concept of periodic unit price
• Explain the concept of transfer price
Business Example
Your company wants to determine the actual cost of goods manufactured for its
products and use this to valuate the warehouse stock. Furthermore, your company
is interested in using an actual cost component split, which is rolled up across
several production stages.
Many companies remunerate their managers on the basis of the internal revenues
they generate. As a member of the project team, you decide to use the transfer price
to recognize this internal revenue. In addition, you also have to define the various
valuation levels for recognizing the internal revenue. You can report the different
valuations in the material ledger, in cost objects, and in Financial Accounting.
Concepts Involved in Actual Costing
You need a productive material ledger for actual costing and transfer price
solutions.
418 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Management Accounting with Actual Costing or Transfer Prices (Optional)
Figure 198: Material Ledger Concept
The material ledger collects data for materials whose master data has been stored
in a material master record. The material ledger uses this data to calculate prices
that are used to valuate these materials. The material ledger forms the basis for
actual costing and enables inventory valuation to be carried out with up to three
different currencies or valuation methods.
As a material subledger, the material ledger is a prerequisite for using parallel
valuation methods. Whilst the inventory value of stock managed on a value basis
is normally updated in only one currency (company code currency), the material
ledger enables you to manage the material inventory value in two additional
currencies. Consequently, all goods movements in the material ledger are updated
in up to 3currencies or valuation methods.
The conversion into foreign currency amounts takes place using historical
exchange rates (valid at the time the posting is made). The material ledger gives
companies in countries with high inflation rates the option of managing their
material inventory in a hard currency so they can clearly see the effect of inflation
on the material inventory value. When actual costing is implemented, the system
can use the periodically collected values to automatically calculate new inventory
values and valuation prices independently of one another and with different
currencies and valuation methods.
In the course of a period, the material ledger collects data for all material-related
operations. All resulting postings are evaluated using a preliminary valuation
price that must remain constant during the entire period. As soon as the material
ledger begins recording data for the period, the valuation price cannot be changed.
2010 © 2010 SAP AG. All rights reserved. 419 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 9: Appendix: Special Topics in Management Accounting AC050
Figure 199: Actual Costing: Preliminary Valuation
The differences between the preliminary valuation price and the actual prices are
recorded with every transaction that is posted. This data is stored in the material
ledger for every material in every period.
You can use the material ledger to display material data for each period. For
each transaction, the material ledger creates a new document that displays the
following information:
• Quantity
• Preliminary valuation (quantity that was valuated using the preliminary
valuation price)
• Price differences (deviations between the preliminary valuation price and the
actual price of the operation)
• Exchange rate differences (for invoice verification and order-related goods
receipts)
• Price (actual price of the operations)
You can also view the cumulated stock (beginning inventory plus all goods
receipts), material consumption during this period, and the ending inventory.
420 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Management Accounting with Actual Costing or Transfer Prices (Optional)
Figure 200: Determining the Periodic Unit Price
The periodic unit price is calculated at the end of every period and reflects the
actual costs for a material in this closed period.
To determine the periodic unit price, the system uses the cumulated quantities
(beginning inventory plus all goods receipts) and the cumulated differences
(differences between the planned price, the price recorded for all goods receipts,
and the beginning inventory).
Price determination is used to calculate the periodic unit price. This process
must be carried out for each period.
With single or multilevel material price determination (settlement control 3),
materials are always valuated using the standard price. The periodic unit price is
calculated for the closed period and can be used to update the Unit Price field in
the material master for the closed period.
2010 © 2010 SAP AG. All rights reserved. 421 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 9: Appendix: Special Topics in Management Accounting AC050
Figure 201: Multilevel Material Price Determination
Multilevel price determination can also project the variances that occur at higher
levels of the production process using a multilevel actual quantity structure .
Through the multilevel actual quantity structure (a type of actual BOM), the
system knows which materials were used to produce which higher level products.
You can then calculate the price for the finished goods. You can also roll up price
differences from raw materials through semifinished goods to the finished product.
Once multilevel price determination has been completed, you can recognize the
actual prices for each material (raw materials, semifinished products, and finished
products) at the end of the period using actual costing . The actual price is the
real price for the quantity that was actually produced or procured for each period.
You can also revaluate your products or raw materials using these actual prices.
Revaluating allows you to use actual costing in parallel with your standard costing
since the values from your standard costing (cost centers, orders) are not changed
during subsequent adjustments.
422 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Management Accounting with Actual Costing or Transfer Prices (Optional)
Figure 202: Analysis of Actual Cost Component Split
You can also calculate an actual cost component split for all periodic unit prices.
This allows you to compare the planned cost elements in the standard prices with
the costs that have actually accumulated for each cost element.
The cost component split provides a transparent overview of the causes of
cost fluctuations. It enables you to identify the personnel, material, or external
processing costs that were involved in manufacturing your finished product.
Transfer Price and Valuation Approaches
You can define transfer prices for profit center valuation. When goods are moved
between two profit centers, this is treated as a sale by Profit Center Accounting
and the quantity flow is valuated with the transfer price.
• When the sale takes place within a company code, it is an internal sale and
the sending profit center can realize a profit or a loss. (This is not possible in
legal valuation.)
• When the sale takes place between company codes, it is an external sale
and the sending profit center can realize a profit or a loss that deviates from
that of the legal valuation.
2010 © 2010 SAP AG. All rights reserved. 423 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 9: Appendix: Special Topics in Management Accounting AC050
Figure 203: Transfer Prices in Profit Center Accounting
If the material ledger is productive, you can manage up to three different valuations
for your materials (if you have made the necessary Customizing settings):
• Legal valuation, which is based on the legal sales price (according to
commercial law)
• Group valuation
• Profit center valuation, which is based on an agreed transfer price
Note: For cross-company code transfers between profit centers, prices
must be defined for legal valuation and for profit center valuation in sales
order management or Profit Center Accounting.
To determine the plan values, you can use product costing for all three valuations.
With the sale itself (actual posting), all three valuations are determined
automatically.
The figure below shows that the production order in profit center 2 uses a particular
quantity of raw materials whose inventory is assigned to profit center 1. The
consumption of the raw material thus represents an internal sale by profit center 1
to profit center 2 that can be valuated with a transfer price in profit center valuation.
424 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Management Accounting with Actual Costing or Transfer Prices (Optional)
Figure 204: Multiple Valuation Approaches
The enterprise structure shown in the figure is used to consider multiple valuation
approaches for a production process. This example assumes that the actual costs
of the order match the value of the delivery to stock, in other words, there are
no variances.
The group view of the actual cost of goods manufactured for a product is achieved
by eliminating all realized or assumed profit in the value chain within the group.
Menu Paths for Actual Costing
Action Menu path
Edit costing run Accounting → Controlling → Product Cost
Controlling → Actual Costing/Material
Ledger → Actual Costing → Edit Costing
Run
2010 © 2010 SAP AG. All rights reserved. 425 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 9: Appendix: Special Topics in Management Accounting AC050
Lesson Summary
You should now be able to:
• Explain the concept of preliminary valuation price
• Explain the concept of periodic unit price
• Explain the concept of transfer price
426 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Reconciliation Ledger (Optional)
Lesson: Reconciliation Ledger (Optional)
Lesson Overview
This lesson takes a closer look at the reconciliation ledger, which is used to identify
any differences between Financial Accounting and Management Accounting. If
required, reconciliation postings can be made automatically on the basis of the
data in the reconciliation ledger.
Hint: If you run New General Ledger Accounting in Financial
Accounting, postings are reconciled in real-time . In this case, you do not
need to use the reconciliation ledger.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the purpose of the reconciliation ledger
• Run a reconciliation report between Financial Accounting and Management
Accounting
Business Example
You want to run the reconciliation ledger at the end of the period to monitor
transferred costs.
Reconciliation Ledger: Functions
The reconciliation ledger monitors the cost allocations in Management Accounting
and proposes entries in Financial Accounting that reflect these allocations. In other
words, the reconciliation ledger monitors the costs that were transferred from one
Management Accounting object to another Management Accounting object across
company code, business area, and functional area boundaries.
2010 © 2010 SAP AG. All rights reserved. 427 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 9: Appendix: Special Topics in Management Accounting AC050
Data from internal and external accounting must be reconcilable. One of the main
functions of the reconciliation ledger is to reconcile postings:
• Postings in Financial Accounting are automatically transferred to the
relevant Management Accounting component (online and in real-time)
for cost accounting purposes. The Management Accounting totals in the
reconciliation ledger are updated by these postings.
• If amounts are allocated within Management Accounting using company
codes, functional areas, or business areas, this data must be transferred back
to Financial Accounting. Although the SAP system does not automatically
send this data to Financial Accounting, the Management Accounting totals in
the reconciliation ledger are automatically updated by these postings.
• You can use the reconciliation ledger to make a posting that synchronizes the
Financial Accounting data with the Management Accounting postings.
Figure 205: Reconciliation Ledger
Reconciliation postings are made in two steps: First, you identify the postings to
be made, then you make the postings. You can also post selected transactions
instead of making all reconciliation postings at once.
In addition to reconciling Financial Accounting and Management Accounting
data, the reconciliation ledger can be used for the following purposes:
• Overall cost analysis in Management Accounting without long processing
times
• Access to Management Accounting via the profit and loss statement
Note: You can decide whether or not to activate the reconciliation ledger
in the SAP system.
428 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Reconciliation Ledger (Optional)
Reconciliation Reports
The SAP system contains special cost element reports for evaluating the
reconciliation ledger. You can use these reports to compare the values in internal
and external accounting, display the costs incurred for each object class, and
examine the cost flows between the individual company codes, for example.
Figure 206: Reconciliation Reports
You use the cost flow report to document the flow of costs in Management
Accounting as well as the reconciliation postings. This report displays all the
cross-company-code, cross-business-area, and cross-functional-area cost flows
in Management Accounting.
You can use the data in the reconciliation ledger to perform many interesting
analyses using other reports (including your own).
Reconciliation: Menu Paths
Action Menu path
Run reconciliation with
Financial Accounting
Accounting → Controlling → Cost
Element Accounting → Actual Postings →
Reconciliation with FI
Run the cost flow report in the
information system
Accounting → Controlling → Cost Element
Accounting → Information System → Reports
for Cost and Revenue Element Accounting
→ Cost Flow → Cost Elements: Allocations
Between Business Areas
2010 © 2010 SAP AG. All rights reserved. 429 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 9: Appendix: Special Topics in Management Accounting AC050
430 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Reconciliation Ledger (Optional)
Exercise 19: Reconciliation Ledger
Exercise Objectives
After completing this exercise, you will be able to:
• Analyze the cost flow between different business areas to display data that
was allocated in Management Accounting but is not yet shown in Financial
Accounting
Business Example
Your company has different business areas within the controlling area. Some
allocations within Management Accounting will cross business areas; however,
this information is not immediately transferred to Financial Accounting. Since the
business area is one of the levels at which data is reported in Financial Accounting,
this information must be reconciled between Management Accounting and
Financial Accounting.
Task:
In the information system in Cost Element Accounting, run the corresponding
report to analyze cost flows between business areas. Look at the cost flow between
the business areas to which your production and service cost centers (7000 and
8000) are assigned.
1. Execute the report for allocations between business areas for the current
period for all business areas in controlling area 1000 .
Hint: The default value in the Business Area field includes all
business areas. You can accept this setting or enter the interval 8000
to 9900 .
2. To display the corresponding report, set the business area to 8000 and the
trading partner business area to 9900 . Explain the data displayed.
2010 © 2010 SAP AG. All rights reserved. 431 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 9: Appendix: Special Topics in Management Accounting AC050
Solution 19: Reconciliation Ledger
Task:
In the information system in Cost Element Accounting, run the corresponding
report to analyze cost flows between business areas. Look at the cost flow between
the business areas to which your production and service cost centers (7000 and
8000) are assigned.
1. Execute the report for allocations between business areas for the current
period for all business areas in controlling area 1000 .
Hint: The default value in the Business Area field includes all
business areas. You can accept this setting or enter the interval 8000
to 9900 .
a) Choose Accounting → Controlling → Cost Element Accounting
→ Information System → Reports for Cost and Revenue Element
Accounting → Cost Flow → Cost Elements: Allocations Between
Business Areas .
b) Enter the following data:
Field Value or Action
Controlling Area 1000
Fiscal Year Current fiscal year
Period Current period
Group Selection 8000 to 9900
c) Execute the report.
2. To display the corresponding report, set the business area to 8000 and the
trading partner business area to 9900 . Explain the data displayed.
a) Under Variation: Characteristics , select Business Area . From the list
of business areas, select 8000 .
The setting for the business area should now be 8000.
b) Under Variation: Characteristics , select Trading Partner Business
Area . From the list of business areas, select 9900 Corporate Other .
The setting for the trading partner business area should now be 9900.
The report shows the flow of costs between business areas, summarized
at cost element level. These costs will be reconciled with Financial
Accounting at the end of the posting period before the financial statements are produced.
432 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Reconciliation Ledger (Optional)
Lesson Summary
You should now be able to:
• Explain the purpose of the reconciliation ledger
• Run a reconciliation report between Financial Accounting and Management
Accounting
2010 © 2010 SAP AG. All rights reserved. 433 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 9: Appendix: Special Topics in Management Accounting AC050
Lesson: Master Data Governance for Financials
(Optional)
Lesson Overview
This lesson describes the functions and advantages of using Master Data
Governance for Financials (MDGF).
Lesson Objectives After completing this lesson, you will be able to:
• Describe the advantages of using Master Data Governance for Financials
Business Example
You run several SAP ERP systems in parallel and are considering how you can
keep the master data consistent in the various systems.
Master Data Governance for Financials
As of SAP ERP Enhancement Package 4 there is a new function you can use to
maintain master data in SAP ERP Financials centrally and consistently. This is
particularly useful if you are running several SAP ERP systems in parallel.
434 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Master Data Governance for Financials (Optional)
Figure 207: Master Data Maintenance Process
A clearly defined process with a compliant change and approval process helps you
manage changes to master data within a company group. With service-oriented
architecture (“SOA”) for business applications, data is automatically distributed
across several operational systems, including both SAP systems and non-SAP
systems.
Using Master Data Governance has the following advantages:
• A governance process for maintaining financial master data within the
enterprise that conforms with the Sarbanes-Oxley Act
• Consistent master data in operational systems and group systems
• Less manual work required as a result of the automatic distribution of
changes to master data.
2010 © 2010 SAP AG. All rights reserved. 435 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit 9: Appendix: Special Topics in Management Accounting AC050
Figure 208: Master Data Governance Functions
Scope of development plans:
• Enhancement Package 4: Chart of accounts (for example, enterprise chart of
accounts, accounts, and hierarchies)
• Enhancement Package 5: Organizational units (for example, group
companies, profit centers, and cost centers)
The consolidated chart of accounts can be distributed to the
• consolidation system
• BI system (potentially from the consolidation system)
• local (decentralized) ERP system (for mapping G/L accounts for the local
operational chart of accounts)
Master data hierarchies can be distributed to the
• consolidation System
• BI system (potentially from the consolidation system)
436 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Lesson: Master Data Governance for Financials (Optional)
Lesson Summary
You should now be able to:
• Describe the advantages of using Master Data Governance for Financials
2010 © 2010 SAP AG. All rights reserved. 437 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Unit Summary AC050
Unit Summary
You should now be able to:
• Explain the concept of preliminary valuation price
• Explain the concept of periodic unit price
• Explain the concept of transfer price
• Explain the purpose of the reconciliation ledger
• Run a reconciliation report between Financial Accounting and Management
Accounting
• Describe the advantages of using Master Data Governance for Financials
438 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Test Your Knowledge
Test Your Knowledge
1. What price must remain constant during the entire period?
Choose the correct answer(s).
□ A Transfer price
□ B Periodic unit price
□ C Preliminary valuation price
□ D Sale price
2. The
is calculated at the end of every
period.
Fill in the blanks to complete the sentence.
3. The is used to valuate the quantity flow for goods
movements between two profit centers. Fill in the blanks to complete the sentence.
2010 © 2010 SAP AG. All rights reserved. 439 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Test Your Knowledge AC050
Answers
1. What price must remain constant during the entire period?
Answer: C
After the material ledger begins recording data for the period, the preliminary
valuation price cannot be changed.
2. The p eriodicunitpriceis calculated at the end of every period.
Answer: periodic unit price
The periodic unit price reflects the actual costs for a material in a closed
period. This price is calculated using price determination.
3. The t ransferpriceis used to valuate the quantity flow for goods movements
between two profit centers.
Answer: transfer price
This goods movement between profit centers is treated as a sale by Profit
Center Accounting.
440 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Librería ERP https://libreriaerp.com/us [email protected] Librería ERP https://libreriaerp.com/us [email protected]

AC050 Course Summary
Course Summary
You should now be able to:
• Execute the core Management Accounting functions
• Identify the components in Management Accounting that address different
business requirements
• Explain integration within Management Accounting
• Explain how Management Accounting is integrated with other SAP system
components
• Describe various costing options and explain their differences
• Decide which Management Accounting tools to use in given business
situations
2010 © 2010 SAP AG. All rights reserved. 441 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Index
A
accounting
cost-of-sales accounting,
26
period accounting, 26
accrued costs
posting, 341
activity allocation, 339
direct, 233
indirect, 233
activity type, 115
activity type allocation, 121
activity type master data, 53
activity-dependent costs, 116,
119
activity-independent costs,
113, 119
actual cost component split,
423
actual costing, 20, 422
actual price, 422
allocation data
entry, 233
assessment, 114, 345, 397,
404
assessment cycle, 345
B
budget profile, 236
budget tolerance limits, 236
business process master
record, 164
C
CATS (Cross-Application
Time Sheet), 234
characteristic, 394
commitment, 184
cost accounting methods, 104
cost allocation, 114
activity allocation, 339
pure cost allocation, 339
cost center
master record, 51
cost center master record, 51,
400
cost component split, 152
cost drivers, 17
cost element, 49, 423
cost element category, 50
primary, 50
secondary, 50
cost element category, 50
cost element itemization, 152
cost element planning, 119
cost flow report, 429
cost object
settlement, 369
cost planning levels, 147
cost-of-sales accounting, 26
costing sheet, 152, 340
costs
activity-independent, 113
Cross-Application Time Sheet
(CATS), 234
currency, 42
D
direct activity allocation, 233
distribution, 114, 344, 404
distribution basis, 144
document splitting, 215
drilldown reporting, 79
E
external sale, 423
G
group valuation, 424
2010 © 2010 SAP AG. All rights reserved. 443 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Index AC050
I
indirect activity allocation,
233, 348
integrated planning cycle, 140
internal activity
allocation, 397
internal activity allocation,
397
internal order, 16, 55, 347
budget types, 235
internal order master record,
55
internal sale, 423
itemization, 151
L
leading ledger, 218
legal valuation, 424
M
Management Accounting
currency, 42
master data
production master data,
148
Master Data Governance for
Financials, 434
master data groups, 55
material consumption, 183
material ledger, 20, 419–420
movement type, 183
multilevel actual quantity
structure, 422
multilevel price
determination, 422
N
New General Ledger
Accounting, 213
advantages, 214
O
online split, 215
organizational   unit, 41
overhead calculation, 346
overhead rate, 346
overhead rates on cost objects,
370
P
parallel accounting, 218
percentage method, 342
period accounting, 26
period-end closing, 20, 352
periodic reposting, 343
periodic unit price, 421
plan reconciliation, 120, 141
planner profile, 104
planning
activity type, 115
activity-dependent costs,
119
activity-independent
costs, 119
cost element, 119
cost planning level, 147
integrated planning cycle,
140
planning framework, 143
sales and profit planning,
142
statistical key figure, 111
planning data sources, 146
planning framework, 143
planning layout, 103
posting error
correction, 231
preliminary costing, 20
preliminary valuation price,
419
price determination, 421
multilevel, 422
primary cost element, 50
process, 164
process template, 165
product costing, 149
production master data, 148
profit center, 24
Profit Center Accounting, 399
profit center valuation, 424
profitability analysis
account-based, 395–396
costing-based, 395–396
profitability segment, 394
pull approach, 168
444 © 2010 SAP AG. All rights reserved. 2010Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

AC050 Index
pure cost allocation, 339
push approach, 168
R
reconciliation posting, 428
Report Painter, 79
Report Writer, 79
reporting tools, 78
drilldown reporting, 79
Report Painter, 79
Report Writer, 79
SAP List Viewer, 79
resource template, 165
results analysis, 371
revaluation with actual prices,
370
revenue element, 50
S
sales and profit planning, 142
sales-order-related
production, 256
SAP List Viewer, 79
secondary cost element, 50
settlement, 347
settlement rule, 347
settlement rule, 347
simultaneous costing, 20, 262,
284, 312
splitting expenses, 215
standard cost estimate, 153
standard hierarchy, 15
statistical key figure, 54, 111,
338
layouts, 112
values, 112
statistical object, 180
T
target costs, 122
template allocation method,
167
template allocation on cost
objects, 370
top-down distribution, 144
transfer price, 21, 423
true object, 180
V
valuation types
group valuation, 424
legal valuation, 424
profit center valuation,
424
value field, 394
value flow, 339
variance calculation, 353
2010 © 2010 SAP AG. All rights reserved. 445 Librer?a ERm https://libreriaerp.com/us [email protected] Librer?a ERm https://libreriaerp.com/us [email protected]

Feedback
SAP AG has made every effort in the preparation of this course to ensure the
accuracy and completeness of the materials. If you have any corrections or
suggestions for improvement, please record them in the appropriate place in the
course evaluation.
2010 © 2010 SAP AG. All rights reserved. 447 Librer?a ERP https://libreriaerp.com/us [email protected] Librer?a ERP https://libreriaerp.com/us [email protected]

Business Processes in Management Accounting for Service Industries and Public Sector, AC050 Col92

About This Presentation

Slide Content

Tags

Categories

Download

Quick Actions

Statistics

Related Slideshows

Business Processes in Management Accounting for Service Industries and Public Sector, AC050 Col92

About This Presentation

Slide Content

Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

Slide 30

Slide 31

Slide 32

Slide 33

Slide 34

Slide 35

Slide 36

Slide 37

Slide 38

Slide 39

Slide 40

Slide 41

Slide 42

Slide 43

Slide 44

Slide 45

Slide 46

Slide 47

Slide 48

Slide 49

Slide 50

Slide 51

Slide 52

Slide 53

Slide 54

Slide 55

Slide 56

Slide 57

Slide 58

Slide 59

Slide 60

Slide 61

Slide 62

Slide 63

Slide 64

Slide 65

Slide 66

Slide 67

Slide 68

Slide 69

Slide 70

Slide 71

Slide 72

Slide 73

Slide 74

Slide 75

Slide 76

Slide 77