ASAP Methodology –SAP Implementation

SAP CO CONFIG

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Contents

1. INTRODUCTION.....................................................................................................................4
1.1 Organizational Structures...............................................................................................................4
1.1.1 Maintain Controlling Area............................................................................................................................4
1.1.2 Maintain Number Ranges for Controlling Documents.................................................................................7
1.1.3 Maintain Versions.........................................................................................................................................9
1.1.4 Production Start-Up Preparations...............................................................................................................10
1.2 Cost Element Accounting...............................................................................................................12
1.2.1 Make Default Settings................................................................................................................................12
1.2.2 Create Batch Input Session.........................................................................................................................13
1.2.3 Execute Batch Input Session......................................................................................................................14
1.3 Cost Center Accounting.................................................................................................................15
1.3.1 Define Standard Hierarchy.........................................................................................................................15
1.3.2 Cost Center Categories...............................................................................................................................16
1.3.3 Create Cost Center......................................................................................................................................17
1.3.4 Define Cost Center Groups.........................................................................................................................18
1.3.5 Define Cost Elements for Activity Allocation............................................................................................19
1.4 Profit Center Accounting...............................................................................................................22
1.4.1 Define Standard Hierarchy.........................................................................................................................22
1.4.2 Define Dummy Profit Center.....................................................................................................................23
1.4.3 Define Number Ranges for Local Documents............................................................................................24
1.5 Internal Orders...............................................................................................................................27
1.5.1 Organizational Structures...........................................................................................................................27
1.5.2 Order Master Data......................................................................................................................................29
1.5.3 Maintain Number Ranges for Orders (KONK).........................................................................................33
1.5.4 Define Model Orders..................................................................................................................................36
1.5.5 Settlement...................................................................................................................................................41
1.6 Production Planning.......................................................................................................................46

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1. INTRODUCTION
The controlling area configuration is the starting point of configuration in the Controlling module, which will
then enable us to configure profit center and cost center.

The management of Zimbabwe Local Authorities herein referred to as Zimbabwe Local Authorities is
desirous of having a single controlling area and one company code. The controlling area currency is USD
United States Dollar.

Zimbabwe Local Authorities requires the following modules within controlling: -

1) Cost center accounting

2) Cost Element Accounting

3) Profit center accounting

4) Product Costing

5) Internal Order Accounting

1.1 Organizational Structures

SAP Menu:

Tools -- Accelerated SAP -- Customizing -- SPRO – Edit

Configuration for all the modules will be done here. The above path will not be referred henceforth; we will
directly refer to the IMG node.

1.1.1 Maintain Controlling Area

OBY6 for Error company code not maintained Error

IMG -- Controlling -- General Controlling -- Organization -- Maintain Controlling Area

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Double click Maintain Controlling Area

Select preferred controlling area and click on and update the following fields:-

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Group Currency definition comes from the client currency. A currency needs to be maintained for the client
(when a client is created) in transaction SCC4.

Update document type SA

Click

Click to create a standard hierarchy.

Double Click

Click on

Zimbabwe Local Authorities requires the following modules within controlling:-

1) Cost center accounting

2) Cost Element Accounting

3) Profit center accounting

4) Product Cost Controlling

5) Internal Orders

Accordingly the following is updated:

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Click on Save

Double Click on to assign Company Code MR01 and update the following:

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Click to save

1.1.2 Maintain Number Ranges for Controlling Documents

IMG -- Controlling -- General Controlling -- Organization -- Maintain

We will copy number ranges from the SAP delivered controlling area 001.

Click on

Copy and update the following: -

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Click on

Note that the number intervals are not included in the customizing request they need to be created in the
specific client.

Click on Interval -- Transport

To ensure data consistency, transport number ranges for CO documents should not be done, but rather
create them as new in the target system.

1.1.3 Maintain Versions

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IMG -- Controlling -- General Controlling -- Organization -- Maintain Versions

Click on Extras -- Set Controlling area

And update 1000 as the controlling area.

Select Version 0

And Double Click

Version 0 is automatically created in Controlling Area 1000.

Double Click

Versions are automatically created for 5 fiscal years.

Select year 2013 and click on and update the following:

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Click on and update the following:

Click on Save

1.1.4 Production Start-Up Preparations

Set "Update All Currencies" Indicator

IMG Controlling - General Controlling - Production Start-Up Preparation - Set "Update All Currencies"
Indicator

In this step we activate or reset the update all currencies indicator. The Update all currencies indicator
enables us to reduce the amount of memory used when posting data to CO objects (for example, cost
centers or orders).

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However, it only works if our database system compresses empty fields. When not sure whether database
system compresses empty fields, always activate this indicator.

Click on remove the test run and select

Click on

1.2 Cost Element Accounting

IMG Controlling -- Cost Element Accounting -- Master Data -- Cost Elements -- Automatic Creation of
Primary and Secondary Cost Elements -- Make Default Settings

Here we give the cost elements individually or as an interval with the corresponding cost element category in
the default setting. The cost elements are created by a batch input session using this default setting.

These defaults are used for automatic generation of primary and secondary cost elements. Update the
following:

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Click on

And save

1.2.2 Create Batch Input Session

IMG Controlling -- Cost Element Accounting -- Master Data -- Cost Elements -- Automatic Creation of
Primary and Secondary Cost Elements -- Create Batch Input Session

Here we generate a batch input session for each controlling area in order to create cost elements.

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The SAP System determines the chart of accounts to be processed (including the cost elements to be
created) according to the company code and chart of accounts to which the controlling area is assigned.

Update the following:

Click Execute

1.2.3 Execute Batch Input Session

IMG Controlling -- Cost Element Accounting -- Master Data -- Cost Elements -- Automatic Creation of
Primary and Secondary Cost Elements -- Execute Batch Input Session

Here we execute a batch input session and thereby generate cost elements.

Select the session and click and

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1.3 Cost Center Accounting

IMG -- Controlling -- Cost Center Accounting -- Master Data -- Cost Centers -- Define Standard
Hierarchy

The hierarchy logic is built in the following manner. The top node (first level) 0001 is the total Zimbabwe
Local Authorities Head Office node. The second levels are Cost Centers, Financials and Administration,
Marketing, Plant and Maintenance. The numbers are prefixed for cost centers e.g. Quality management 1401
and Marketing 1601.

1.3.2 Cost Center Categories

IMG -- Controlling -- Cost Center Accounting -- Master Data -- Cost Centers -- Define Cost Center
Categories

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We can define our own cost center categories or use SAP supplied cost center categories.

We activate/deactivate the following indicators for each cost center category:

The cost center category when selected during the cost center master creation, defaults this indicator such
as Lock actual revenue and lock plan revenue.

Click on Save

1.3.3 Create Cost Center

IMG -- Controlling -- Cost Center Accounting -- Master Data --Cost Centers --Create Cost Centers

Double Click

Update the following:

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Click

Capture the following:

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Click on Save

1.3.4 Define Cost Center Groups

IMG -- Controlling -- Cost Center Accounting -- Master Data -- Cost Centers -- Define Cost Center
Group

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1.3.5 Define Cost Elements for Activity Allocation

IMG -- Controlling -- Cost Center Accounting -- Master Data -- Activity Types -- Define Cost Elements
for Activity Allocation

Double Click and update the following:-

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Click on

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Click on Save

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1.4 Profit Center Accounting

IMG -- Controlling – Profit Center Accounting -- Master Data -- Profit Centers -- Define Standard
Hierarchy

The hierarchy logic is built in the following manner. The top node (first level) YBH is the total Zimbabwe Local
Authorities node. The second level is the Profit Center Group, YBH16. The numbers are prefixed PC for
Profit Centers.

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1.4.2 Define Dummy Profit Center

IMG -- Controlling – Profit Center Accounting -- Master Data -- Profit Centers -- Define Dummy Profit
Center

The dummy profit center is the default profit center to which data is posted when the corresponding object
has not been assigned to a profit center. Master data for the dummy profit center is created in Customizing.
The dummy profit center is structured just like a normal profit center. The only difference is a flag indicating
that it is the dummy profit center.

1.4.3 Define Number Ranges for Local Documents

IMG -- Controlling – Profit Center Accounting – Actual Postings – Basic Settings: Actual – Define
Number Ranges for Local Documents

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Number Ranges needs to be defined for local documents and assigned to the profit center. Number ranges
can be internal or external. In Internal numbering system automatically assigns a number from the given
number range.

Click Maintain

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Click Group Insert

Update the following:

Click

Click Save

1.5 Internal Orders

Activate Order Management in Controlling Area

IMG - Controlling - Internal Orders - Activate Order Management in Controlling Area

Activate Order Management in controlling area before starting configuration for internal order. This particular
configuration is the same node where controlling area is maintained.

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Select: 1000 Controlling Area

Double Click: Activate Components/Control Indicators

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The order management component should be switched on as active.

This is the same screen which we come across while maintaining the initial controlling area settings.

Click on Save

1.5.2 Order Master Data

Define Order types (KOT2_OPA)

IMG – Controlling - Internal Orders - Order Master Data - Define Order Types

An Internal order is created under an Order type. An order type is used for storing various control parameters
and various defaults while creating an internal order. It is used for classifying various types of internal orders
according to usage for e.g. Real orders for trade fairs, real orders for Capital investment measure, Statistical
orders for motor vehicle expenses.

The order type is client-specific, which means that every order type can be used in all controlling areas. A
number range is assigned to the internal order type.

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Click on New Entries

Take a drop in the field Order category and select 01

Update the following:

Activate CO Partner Updating - Activate this so that allocations between orders and other CO objects (cost
centers, projects, etc.), the partner information is retained and whether for each order a totals record should
be written.

Click Save

Click Field Selection

Hide the various fields or make it as required entry or only display or available for input. Thus while creating
internal order only those fields are displayed and available for input.

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Hide some of the fields which are not required from the screen shown above.

Click Save

1.5.3 Maintain Number Ranges for Orders (KONK)

IMG – Controlling - Internal Orders - Order Master Data - Maintain Number Ranges for Orders

Number Range needs to be assigned to the internal order type. Number range can be internal or external. In
Internal numbering system automatically assigns a number from the given number range.

Click on Group - Maintain

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Click on Group – Insert

Click create

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1.5.4 Define Model Orders

IMG – Controlling - Internal Orders - Order Master Data - Screen Layout- Define Model Orders

Define Model Orders

Model orders are not orders in the commercial sense, but serve merely as references for creating "normal"
orders. Model orders contain default values for the orders in an order type. The Model order is assigned as
the reference order in the order type.

When creating a new order, all the fields active in the relevant order type are copied from the model order to
the new order.

Create a model order with some defaults and assign it to the Zimbabwe Local Authorities Internal order type
1000.

Click

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Click

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Click Control Data

Click Save

Assign this Model Rode to Order Type.

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Click

Order Type MR10 is the order type that users will use to create all other Internal Orders.

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1.5.5 Settlement

IMG – Controlling - Internal Orders - Actual Postings – Settlement - Maintain Allocation Structures

An Allocation structure comprises one or several settlement assignments. An assignment shows which costs
(origin: cost element groups) are to be settled to which receiver type (e.g. cost center, order and so on)

There are 2 options: - To settle to a settlement cost element or settle by cost element that is settling using
the original cost element.

Uses settle by cost element.

Click on New Entries

Update the following:

Click Save

Select L1 Local Authorities Internal Order Settlement

Double Click

Click on

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Click Save

Select 10 Settlement Primary Cost Elements

Double Click Source

Update the following:

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Click Save

Click

Note: The color has become green as seen below:

Select 10 Settlement Primary Cost Elements

Double Click Settlement Primary Cost Elements

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Click on New Entries

Take a drop down in Receiver cat.

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Click Save

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1.6 Production Planning

Click

Click

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Click

Click

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Click

Click

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Click

Click Save

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