Sap Financial Cost Centre

1. SAP Financial Reporting
•Aims & Objectives
–Introduction to SAP financial modules
–Understanding of SAP cost objects
–Overview of University accounting structure
–Outline of available reports
–Confidence in using reports

2. SAP Help
•Documentation
•ISS website
http://www.leeds.ac.uk/iss/infosystems/
•SAP on-line help
•Superusers
•Helpdesk  33333

3. What is SAP?
•Enterprise Resource Planning system
•SAP world’s largest ERP software supplier
•Based in Walldorf, Germany
•Implemented at Leeds in April 1999
•Continuing programme of development

4. Components of SAP
Finance
Human Resources
• Personnel Management
• Payroll
Logistics
• Purchasing
• Sales
• Production
• Project System

5. Reporting Requirements
•Income & Expenditure
•Balance Sheet
•Cash Flow
•Department Costs
•Project costs
•Costs v plan
Financial
Accounting
Management
Accounting

6. SAP Finance Modules
Financial Accounting
•External Accounting
•Financial Statements
•Legal Requirements
•Standards
Controlling
•Internal Accounting
•Cost Reporting
•Management Accounting
•Flexible
FI
CO

7. Components of Controlling
Overhead Cost Controlling
• How high are the costs of organisational activities?
• Are they within budget?
CO
OM
Cost & Revenue Element Accounting
• What costs occur within our organisation?
CO
CEL
Profit Centre Accounting
• How profitable are the enterprise areas?
EC
PCA

8. SAP Cost Objects
• Used to track where costs occur within the organisation
Cost
Centres
Internal
Orders
Project
System
WBS
Elements
CO & PSCO & PS
Controlling & Controlling &
Project SystemProject System
Cost Objects
}
Balance
Sheet
Profit
Centres

9. Cost Centres
• An organisational unit within SAP to which costs (and income) can
be assigned
• Six digit number e.g. 252000
• Used to track costs of departments/major activities

10. Cost Elements
• Used to collect and summarise costs according to classification
• Five digit number e.g 50010
• Main ranges:
• 40000 to 49999 External Income
• 50000 to 69999 External Costs
• 70000 to 74999 Internal Income
• 75000 to 75999 Internal Costs
• 80000 to 89999 Secondary Transfers

11. Cost Element Groups
• Cost elements can be combined into groups of the same type
• Used to create reports
• Standard reporting group REP_01
• Displays costs within main University budget headings
Example
• KAH3 - Display cost element group

12. Cost Centre Structures (1)
Standard hierarchy

• Tree structure containing all cost centres
• Reflects University accounting structure
• Core activities - DC
• Other services - DS
• Restricted funds - OR
• Endowment funds - EN
• Research awards - RG

13. Cost Centre Structures (2)
Department Codes


• AUVI - Media Services
• CSER - Careers
• INSS - ISS
• LACE - Language Centre
• LIBR – Library
Example: DC-RC-LIBR – Library core activities

14. Cost Centre Structures (3)
Academic
Services
Library CareersISS
381513
SAP Support
381652
SAP Projects
• Can report on individual cost centres or groups of cost centres
Alternative cost centre groups

15. Cost Centre Structures (4)
Examples
• OKENN - Display cost centre standard hierarchy

• KSH3 - Display cost centre group

16. Internal Orders
• Cost object used to monitor costs at a detailed level
• Eight digit number e.g. 95000001
• Linked to cost centre – provides sub-analysis
• Simplifies cost centre structure
• Used to track costs of individual activities e.g. projects, short courses

17. The Internal Order/ Cost Centre relationship
78500001
Internal Order

78500002
Internal Order
78500003
Internal Order
278520
COST CENTRE
Many to One Relationship

18. Internal Order Groups
• Orders can be grouped into a structure
• Many levels as required
• Maintained by departments – no standard hierarchy
• Used for planning and reporting

19. Internal Orders
RC_HECS
TEACHING RESEARCH OTHER
78515000 78515001 78515002
Internal
Orders
Internal
Order
Groups
TEACHING
DIRECT
TEACHING
OTHER

20. Internal Orders
Examples
• KO03 - Display internal order master data
• KOH3 - Display internal order group

21. Reports
• Cost centre reports
• Internal order reports
• Report navigation
• Printing reports
• Exporting to Excel