Controlling

If the company codes use different operational chart of accounts, inter company code controlling can not be performed. Basic Settings: Maintain Controlling Area (OKKP) SPRO > Controlling > General Controlling > Organization > Maintain Controlling Area (Assignment Control Controlling Area same as Company Code, Check on Activity Type, Check on Profit Center & Assign to Company Code) Maintain Versions SPRO > Controlling > General Controlling > Organization > Maintain Versions Select 0 Plan/Actual Version, In Settings by Fiscal Year give your CO Area Maintain Number Ranges for Controlling Documents (KANK) SPRO > Controlling > General Controlling > Organization > Maintain Number Ranges for Controlling Documents Create Group Controlling Area for XYZ with Interval 1 to 100000 and Assign the Element Group COIN CO through Postings from FI

Cost Element Accounting

Primary Cost Element: Cost Element & Revenue Element (Income & Expenditure in GL) Secondary Cost Element: For Apportionment (Assessment) from one Cost Center to other Cost Center Creation of GL Account & Cost Element at FI Level (FS00) Environment > Edit Cost Element, give Validity Dates & Cost Element Category 1 Primary Costs / Cost Reducing Revenues, Field Status Group G004 Cost Accounts Creation of Cost Element at CO Level (KA01) Accounting > Controlling > Cost Element Accounting > Master Data > Cost Element > Individual Processing > Create Primary Automatic Creation of Cost Element (OKB2) SPRO > Controlling > Cost Element Accounting > Master Data > Cost Elements > Automatic Creation of Primary/Secondary Cost Element > Make Default Settings Create Cost Element Group (KAH1) Accounting > Controlling > Cost Element Accounting > Master Data > Cost Element Group > Create

Cost Center Accounting

- To know Department wise costs Create Cost Center (KS01) Accounting > Controlling > Cost Center Accounting > Master Data > Cost Center > Individual Processing > Create (Give a Cost Center Category, F Production Cost Center, H Service Cost Center) Create Cost Center Group (KSH1) Accounting > Controlling > Cost Center Accounting > Master Data > Cost Center Group > Create To get Cost Center wise Report (KSB1) Accounting > Controlling > Cost Center Accounting > Information System > Reports for Cost Center Accounting > Line Items > Cost Centers: Actual Line Items To See CO Document Numbers (KSB5) Accounting > Controlling > Cost Center Accounting > Information System > Reports for Cost Center Accounting > Line Items > CO Documents: Actual Costs Repost Line Items (KB61): For transferring values from one Cost Center to other Cost Centers, FI Document is the base, Assign Element Group RKU3 in KANK Accounting > Controlling > Cost Center Accounting > Actual Postings > Repost Line Items > Enter Repost Costs (KB11N): When a new Cost Center is created (FI Document not required, Cost Element is the base to Post to a newly created Cost Center or Department), Assign Element Group RKU1 in KANK Accounting > Controlling > Cost Center Accounting > Actual Postings > Manual Posting of Costs > Enter Planning Cost Center wise (KP06): To Plan Fixed Costs Cost Element wise in each Cost Center, Assign Element Group RKP1 in KANK Accounting > Controlling > Cost Center Accounting > Planning > Cost & Activity Inputs > Change To View the Report Planned, Actual and Variance (S_ALR_87013611) Accounting > Controlling > Cost Center Accounting > Information System > Reports for Cost Center Accounting > Plan/Actual Comparisons > Cost Centers > Actual/Plan/Variance Assessment: For Apportionment of Service Cost Center Expenses to Production Cost Centers Create Secondary Cost Element

Assign Element Group RKIU (Actual Overhead Assessment) Create Assessment Cycle Execute Assessment Cycle

Creation of Secondary Cost Element (KA06) Accounting > Controlling > Cost Element Accounting > Master Data > Cost Element > Individual Processing > Create Secondary (Name: Service to Production, Cost Element Category: 42 Assessment) Creation of Assessment Cycle (S_ALR_87005742) Accounting > Controlling > Cost Center Accounting > Period End Closing > Current Settings > Define Assessment Create Actual Assessment Give Cycle Name Check on Iterative Interdependent Transfers Attach Segment: Service to Production Assessment Cost Element: Give Secondary Cost Element Number Sender Rule: Posted Amounts Select Actual Values Receiver Rule: Fixed Percentages In Sender/Receiver Tab give Sender and Receiver Cost Center Details In Receiver Tracing Factor Tab give the Portions of Apportionment Execution of Assessment Cycle (KSU5) Accounting > Controlling > Cost Center Accounting > Period End Closing > Single Functions > Allocations > Assessment Give Period, Select Test Run & Detailed Lists and Give the Cycle Name created Execute See the Report through Receiver as well as Sender Buttons Deselect Test Run and Execute

Internal Orders
To Know Vehicle wise Costs Telephone wise Costs RM Consumption for a particular Production Order Exhibition Costs Internal Orders are of 2 Types: 1) Statistical Orders 2) Real Orders (Settlement Profile will be required only for Real Orders)

Statistical Orders
Steps:

Creation of Order Types Creation of New Field Status Group where Cost Center and Internal Order both are mandatory Fields Creation of Internal Orders Creation of Internal Order Groups View Internal Order Report Repost Line Items Repost Costs Planning Internal Order wise View Plan/Actual/Variance Report

Creation of Order Types (KOT2_OPA) SPRO > Controlling > Internal Orders > Order Master Data > Define Order Types Order Category: 01 Internal Order Controlling Order Type: Veh (any) Order Type for Vehicles Planning Profile: 000001 General Plan Profile Object Class: Overhead Costs Check on Release Immediately & Save Assign Order Type Veh to Orders: External Numbers Check Box & Save Select Back Arrow & Save once again Creation of New Field Status Group where Cost Center and Internal Order both are mandatory Fields SPRO > Financial Accounting > FAGS > Document > Line Item > Controls > Maintain Field Status Variants Select G004 Cost Accounts, Copy as G002 and give name: Cost Accounts CC & IO mandatory, Enter & Save Double Click Additional Account Assignments of G002 and make CO/PP Order Field: Required Entry Quantity: Optional Creation of GL Master and Cost Element (FS00) Create Vehicle Fuel Account with G002 (Cost Acts CC & IO) as Field Status Group Creation of Internal Orders (KO01) Accounting > Controlling > Internal Orders > Master Data > Special Functions > Order > Create Order Type: Veh & Enter Order: Give a Vehicle Number Object Class: Overhead Control Data Tab System Status: REL (Release) Check on Statistical Order Create as many Orders as required in the above way Creation of Internal Order Group (KOH1)

Accounting > Controlling > Internal Orders > Master Data > Order Group > Create Posting of Transaction (F-02) System will ask for Cost Center and Internal Order while Posting the Transaction To View Internal Order Report (KOB1) Accounting > Controlling > Internal Orders > Information Systems > Reports for Internal Orders > Line Items > Orders: Actual Line Items Give Order No. & Execute Repost Line Items (KB61) Accounting > Controlling > Internal Orders > Actual Postings > Repost Line Items > Enter Give the FI Document Number & through New Account Assignment Repost to other cost center and other order. Repost Costs (KB11N) Accounting > Controlling > Internal Orders > Actual Postings > Manual Reposting of Costs > Enter Select Screen Variant: Cost Center/Order/Per.No. Give the details of Old Cost Center, Old Order, Cost Element, New Cost Center, New Order etc. Planning Internal Order wise (KPF6) Accounting > Controlling > Internal Orders > Planning > Cost & Activity Inputs > Change Version: 0, Give Cost Element Range, Select Form Based as well as Overview Screen and Plan Costs for the required Cost Elements. To View Plan/Actual/Variance Report (S_ALR_87012993) Accounting > Controlling > Internal Orders > Information System > Reports for Internal Orders > Plan Actual Comparisons > Orders: Actual/Plan/Variance Give Period, Plan Version and Order & Execute

Real Orders
Foreign Exchange Revaluation: Loan taken in USD 1000 @ 45/As on 31.03.2004 1000 @ 50/Forex Loss GL Entry Forex Loss A/c. Dr. To FC Loan A/c. 5000 5000 45000/50000/---------5000/----------

CO Entry Through Internal (Real) Order the Loss will be posted to the Asset.

Steps:

Create Accounts Required Bank Term Loan A/c. & Forex Profit/Loss A/c. Creation of Valuation Method Prepare Automatic Postings for FC Valuation Assignment of Exchange Rate Difference Key in GL Master Creation of a Sub Asset (For Forex Gain/Loss on the Asset) Maintain Allocation Structure Maintain Settlement Profile Creation of Order Type Assign Element Group KOAO Creation of Internal Order Assign Order in the Cost Element (in Forex Gain/Loss A/c.) Posting of FC Term Loan Enter Exchange Rate in Forex Table Forex Loan Revaluation Run Execution of Internal Order Settlement

Creation of Bank Term Loan A/c. under Secured Loans (FS00) Bank Term Loan A/c. A/c Currency: USD Field Status Group: G005 Deselect only Balances in Local Currency Creation of Forex Gain/Loss A/c under Admn Expenses (FS00) Forex Gain/Loss A/c. INR Only Balances in Local Currency Field Status Group: G002 (CC&IO Mandatory) Save Cost Element Category: 1 (Primary Costs/Cost Reducing Revenues) Default Cost Center Assignment: Give a Cost Center Creation of Valuation Method (OB59) SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Closing > Valuating > Define Valuation Methods Give a name for Valuation Method: XYZ1 Desc: FC Valuation for XYZ Select Always Valuate Doc Type: SA Debit Balance Exchange Rate Type: B Credit Balance Exchange Rate Type: B Select Determine Rate Type from Account Balance Prepare Automatic Postings for FC Valuation (OBA1) (Defining Exchange Rate Difference Key) SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Closing > Valuating > Prepare Automatic Postings for FC Valuation Double click Exchange Rate Difference in FC Balances KDB Exchange Rate Difference Key: ABC (any) Expense A/c.: GL A/c. of Forex Gain/Loss E/R Gains A/c.: GL A/c. of Forex Gain/Loss

Assignment of Exchange Rate Difference Key in GL Master (FS00) In Bank Term Loan A/c. under Control Data Tab Assign Exc Rate Dif Key ABC Creation of Sub Asset (AS11) Asset: Give the Main Asset Number Desc: Forex Gain/Loss on Asset Capitalized on: 31.03.2004 Depreciation Area Tab Ord Depreciation Start Date: 01.04.2004 Maintain Allocation Structure SPRO > Controlling > Internal Orders > Actual Postings > Settlement > Maintain Allocation Structure Select A1 CO Allocation Structure In Assignments Select 30 Other Costs In Source From Cost Element: Give Forex Gain/Loss A/c. In Settlement Cost Elements Receiver: FXA Fixed Asset Check on By Cost Element Maintain Settlement Profile SPRO > Controlling > Internal Orders > Actual Postings > Settlement > Maintain Settlement Profile Settlement Profile: IO Desc: Fixed Asset Settlement Profile for XYZ Allocation Structure: A1 CO Allocation Structure Valid Receiver Fixed Asset: 1 Can be Settled Other Parameters Doc Type: AA Max No of Distribution Rules: 999 Indicators Check on % Settlement Check on Equivalence Numbers Check on Amount Settlement Creation of Order Type (KOT2_OPA) SPRO > Controlling > Internal Orders > Order Master Data > Define Order Types Order Category: 01 Internal Order Controlling & Enter Order Type: FCLV (any) Foreign Currency Revaluation Settlement Profile: IO Planning Profile: 000001 Object Class: Overheads Release Immediately & Save In Assign/Change Intervals Assign Order Type FCLV to Orders Assign Element Group KOAO (KANK) Assign KOAO to Controlling Area for XYZ Creation of Internal Order (KO01) Order Type: FCLV Foreign Currency Revaluation Order: Bank Term Loan Desc: Bank Term Loan Revaluation Settlement Rule Category: FXA Fixed Asset Settlement Receiver: Sub Asset No. Percentage: 100 Save & Enter the Message

Assign Order in the Cost Element (KA02) Cost Element: Forex Gain/Loss A/c. & Enter Default Account Assignment Tab Order: Bank Term Loan Posting of Bank Term Loan (F-02) Post Loan Receipt in USD with user given Rate Enter Exchange Rate in Forex Table SPRO > General Settings > Currencies > Enter Exchange Rates

Save

Forex Loan Revaluation Run (F.05) Accounting > Financial Accounting > General Ledger > Periodic Processing > Closing > Valuate > FC Valuation Co. Code: XYZ Evaluation Key Date: 31.03.2004 Valuation Method: XYZ1 Selections Tab Check on Valuate GL A/c. Balances GL A/c.: Bank Term Loan Posting Check on Balance Sheet Preparation Valuation Check on Creating Postings Execute & Document will be Posted. To See Internal Order Report (KOB1) Internal Order: Bank Term Loan Posting Date: 01.01.2004 to 31.03.2004 & Execute Execution of Internal Order Settlement (KO88) Accounting > Controlling > Internal Orders > Period End Closing > Single Functions > Settlement > Individual Processing Order Name: Bank Term Loan Settlement Period: 12 Fiscal: 2003 Process Type: Automatic Select Test Run Select Check Transaction Data & Execute & See the Report Back Remover Test Run Execute To see the Asset Value updation go to Report S_ALR_87011965

Profit Center Accounting

To Know Product wise Profitability To Know Area wise Profitability Expenditure Through Cost Centers Income Through Automatic Assignments A Profit Center can have one or more Cost Centers In PCA, Postings will be done through DERIVATION RULES Profit Center and Business Area will be assigned in Cost Center

PCA Product wise Structure (Sales Accounts Product wise): Company | Company Code | Business Area | | | | Product 1 (Profit Center) Product 2 (Profit Center) Product 3 (Profit Center) | | | | Cost Center A Cost Center B Cost Center C PCA Area wise Structure (Business Area = Profit Center): Company | Company Code | | Busi Area 2 (Product 2) | Cost Center C

| Busi Area 1 (Product 1) | | | Cost Center A Cost Center B

| Busi Area 3 (Prod 3)

Set Controlling Area SPRO > Controlling > Profit Center Accounting > Basic Settings > Set Controlling Area Maintain Controlling Area Settings SPRO > Controlling > Profit Center Accounting > Basic Settings > Controlling Area Settings > Maintain Controlling Area Settings

Select Elimination of Internal Business PC Local Currency: 20 Controlling Area Currency Select Store Transaction Currency Valuation View: Legal Valuation Creation of Dummy Profit Center (KE59) SPRO > Controlling > Profit Center Accounting > Master Data > Profit Center > Create Dummy Profit Center Set Control Parameters for Actual Data SPRO > Controlling > Profit Center Accounting > Basic Settings > Controlling Area Settings > Activate Direct Postings > Set Control Parameters for Actual Data New Entries Check on Line Item and Online Transfer Maintain Plan Versions SPRO > Controlling > Profit Center Accounting > Basic Settings > Controlling Area Settings > Activate Direct Postings > Plan Versions > Maintain Plan Versions Select 0 Plan/Actual Version In Settings for PC Accounting Year: 2003 Select Online Transfers and Line Items Exchange Rate Type: B Bank Selling Creation of Profit Center (KE51) Accounting > Controlling > Profit Center Accounting > Master Data > Profit Center > Individual Processing > Create Assignment of Profit Center in Cost Center (KS02) Accounting > Controlling > Cost Center Accounting > Master Data > Cost Center > Individual Processing > Change In Cost Center, Select Master Data Button and Assign Profit Center Creation of Sales A/c. and Revenue Cost Element (FS00) Sales Product 1 Account under Sales Group Field Status Group: G001 Environment > Edit Cost Element Cost Element Category: 11 Revenues Automatic Account Assignments for Revenue Elements (OKB9) SPRO > Controlling > Profit Center Accounting > Actual Postings > Maintain Automatic Assignment of Revenue Elements New Entries Co. Code: XYZ Cost Element: Sales Product 1 A/c. No. ** Account Assignment: 2 Business Area Mandatory ** Save the record & Double click Details per Business Area/Valuation Area New Entries Business Area: Give Business Area Profit Center: Give Profit Center for Product 1 Derivation Rule for Assignment of Balance Sheet items to Profit Center (3KEH) (Where Business Area = Profit Center)

SPRO > Controlling > Profit Center Accounting > Actual Postings > Choose Additional Balance Sheet and P&L Accounts > Choose Accounts New Entries Account From: 100000 To: 299999 Default Profit Center: Profit Center for Product 1 Derivation Rule for Finding the Profit Center SPRO > Controlling > Profit Center Accounting > Actual Postings > Choose Additional Balance Sheet and P&L Accounts > Derivation Rule for Finding the Profit Center Menu Strategy > Display Change Select Create Step Button Derivation Rule: Business Area to Profit Center Assignment Under Source, Select Drop Down Menu (Under RACCT) Select GSBER Business Area & Save Select Maintain Rule Values Button Select On/Off Button (Source Fields On/Off) Ctrl+F4 From Account To Account Business Area Profit Center 100000 299999 HYD Product 1 100000 299999 MUM Product 2 Define Number Ranges for Local Documents (GB02) SPRO > Controlling > Profit Center Accounting > Actual Postings > Basic Settings Actual > Define Number Ranges for Local Documents Select Maintain Groups Button Check on Actual Doc from Direct Posting with GB01 Group > Insert Co. Code: XYZ Enter Text: Actual Documents for XYZ Year: 2003 From Number: 1 To Number: 100000 Enter & Save The same way Check on Planned Doc from Direct Posting with GB01 Interval > Maintain Co. Code: XYZ Select Interval Button Year: 2003 From Number: 100001 To Number: 200000 Enter & Save Planning of P&L items for Profit Centers (7KE1) Accounting > Controlling > Profit Center Accounting > Planning > Cost/Revenues > Change Version: 0 Plan/Actual Version Period From: Month To: Month Fiscal: 2003 Profit Center: Product 1 Account Numbers: 100000 To 499999 Entry Select Form Based Select Overview Screen & Plan as desired Planning Balance Sheet Accounts (7KE3) Accounting > Controlling > Profit Center Accounting > Planning > Balance Sheet Accounts > Change Plan as desired in the above way

Profit Center Plan/Actual/Variance P&L items (S_ALR_87013326) Accounting > Controlling > Profit Center Accounting > Information System > Reports for Profit Center Accounting > Interactive Reporting > Profit Center Group: Plan/Actual/Variance Give Period, Profit Center & Execute Report can be viewed From Reporting Screen use Call up Report option for other Reports & Vouchers. Profit Center Plan/Actual/Variance Balance Sheet items (S_ALR_87013336) Accounting > Controlling > Profit Center Accounting > Information System > Reports for Profit Center Accounting > Interactive Reporting > Profit Center Group: Balance Sheet Accounts: Plan/Actual

Profitability Analysis
To know the Profit Product wise, Customer wise, Sales Org. wise and Plant wise, Hence it is called a Data Cube Data will flow from MM, PP, SD and FI Operating Concern is to be created The structure we follow is Co. Code = Controlling Area = Operating Concern

In Operating Concern: Profitability Segment (Data Structure) Characteristics & Value Fields Characteristics: Product, Customer, Sales Organization, Plant Value Fields: Sales, Cost of Goods Manufactured, Freight, Quantity, Price Steps: Create Operating Concern Assign Controlling Area to Operating Concern Create Number Ranges for actual postings in PA Activation of PA Mapping of SD Condition types to COPA Value Fields Maintain PA Transfer Structure for Direct Postings Change Field Status Group to make Profitability Segment mandatory Define Form for Profitability Reports Create Profitability Report Create Operating Concern (KEA0) SPRO > Controlling > Profitability Analysis > Structures > Define Operating Concern > Maintain Operating Concern Operating Concern: XYZ1 (Should be of 4 digits) Operating Concern for XYZ Select Costing Based & Account Based Attributes Tab Operating Concern Currency: INR Select Co. Code Currency Select Operating Concern Currency, Profit Center Valuation

Select Co. Code Currency, Profit Center Valuation Fiscal Year Variant: V3 & Save In Data Structure Tab Select and attach the Fields KUNWE (Ship to Party) and MATKL (Material Group) In Value Fields Tab Select & Attach the Fields VV010, VV140 Save & Activate the Data Structure Assign Controlling Area to Operating Concern SPRO > Enterprise Structure > Assignment > Controlling > Assign Controlling Area to Operating Concern Creation of Number Ranges for Actual Postings in PA SPRO > Controlling > Profitability Analysis > Flows of Actual Values > Initial Steps > Define Number Ranges for Actual Postings Activation of Profitability Analysis (KEKE) SPRO > Controlling > Profitability Analysis > Flows of Actual Values > Activate Profitability Analysis Go to Controlling Area XYZ and give Active Status: 4 (Component Active for Both Types of Profitability Analysis, Costing Based & Account Based) Activation can be verified in OKKP Mapping of SD Condition Types to COPA Value Fields For Assigning Value Fields: SPRO > Controlling > Profitability Analysis > Flows of Actual Values > Transfer Billing Documents > Assign Value Fields Double click Maintain Assignment of SD Condition Types to COPA Value Fields Operating Concern: idea (Operating Concern IDES world wide) & Enter Watch the Value Fields and Assign the same Fields in Your Company Code in Real Time. For Assigning Qty Fields: SPRO > Controlling > Profitability Analysis > Flows of Actual Values > Transfer Billing Documents > Assign Quantity Fields Watch the Structure and Copy in your Company Code in Real Time. Direct Postings from MM/FI (KEI2) SPRO > Controlling > PA > Flows of Actual Values > Direct Postings from FI/MM > Maintain PA Transfer Structure for Direct Postings Select Structure FI & Double click Assignment Lines Select 5 Sales & Double click Source Cost Element From Account: 300000 To: 399999 Double click Value Fields & Select New Entries Quantity/Value Field: Value Field: VV010

Fixed/Variable: 2 Variable amounts Select 20 RM/Service Material & Element from: 400000 To: 499999 Double click Value Fields & Give Value Field, 2, VV140

&

Save

&

Back Arrow

Double click Source

New Entries & Save

Change Field Status Group to make Profitability Segment mandatory SPRO > Financial Accounting > FAGS > Document > Line Item > Controls > Maintain Field Status Variant For G001 & G004 in Additional Account Assignments make Profitability Segment Required Entry. Creation of Plant SPRO > Enterprise Structure > Definition > Logistics General > Define, Copy, Check Plant (Create Plant XYZ) Creation of Storage Location (OX09) SPRO > Enterprise Structure > Definition > Material Management > Maintain Storage Location (Create Storage Location XYZ) Assignment of Plant to Company Code (OX18) SPRO > Enterprise Structure > Assignment > Logistics General > Assign Plant to Company Code Activation of Material Management Area (OMSY) SPRO > Logistics-General > Material Master Basic Settings > Maintain Company Codes for Material Management (Give Year & Period) Creation of Material Master (MM01) Create FG Material Finished Goods Creation of Sales Organization SPRO > Enterprise Structure > Definition > Sales & Distribution > Define, Copy, Delete Sales Organization (Create XYZ Sales Org for XYZ) Assigning Sales Organization to Company Code SPRO > Enterprise Structure > Assignment > Sales & Distribution > Assign Sales Org to Company Code Creation of Customer Master (XD01) A/c. Group: Bill to Party (Create S/Debtors Reconciliation Account in FS00) Transaction Posting (F-02)

Report Painter
Reports: Creation of Form Define Form for Profitability Reports SPRO > Controlling > PA > Information System > Report Components > Define Forms > Define Form for Profitability Reports Double Click Create Form Form Name: XYZ Profitability Create Button Select Operating Concern Currency Button & Enter Double Click Row1 Select Value Fields with Characteristics & Enter Select VV010 Revenue in Value Field & Press Confirm Button Double Click Row2 Select Value Fields with Characteristics & Enter Select VV140 Cost of Goods Sold in Value Field & Press Confirm Button Double Click Row 3 Select Formula & Enter Y001 Y002 (Revenue COGS) & Enter Text: Net Profit Select Copy Short Text & Enter For further process refer note book Create Profitability Report SPRO > Controlling > PA > Information System > Report Components > Define Forms > Create Profitability Report Double Click Create Profitability Report Report: XYZ Select Report with Form XYZ& Create XYZ Profitability Report XYZ Take Customer, Plant, Product, Sales Org Select Output Type Tab Select Classic Drill Down Report Select Basic List Drill Down Select Available on Selection Screen & Save Execute From: MM/YY To: MM/YY Select Classic Drill Down Report & Execute Report can be viewed Plant wise, Product wise, Sales Org wise Navigate Switch Drill Down to Switch between options For other reports: Navigate > Detailed List