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SAP Eng - Co - Casestudy

This case study focuses on master data and planning methods in Cost Center Accounting within SAP ERP 6.0. It involves creating cost centers, secondary cost elements, activity types, and planning for various cost inputs and outputs, while demonstrating integration with the PP module. The document outlines detailed steps for setting up and managing cost center data, emphasizing the importance of accurate data entry and planning for effective cost management.

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0% found this document useful (0 votes)
57 views16 pages

SAP Eng - Co - Casestudy

This case study focuses on master data and planning methods in Cost Center Accounting within SAP ERP 6.0. It involves creating cost centers, secondary cost elements, activity types, and planning for various cost inputs and outputs, while demonstrating integration with the PP module. The document outlines detailed steps for setting up and managing cost center data, emphasizing the importance of accurate data entry and planning for effective cost management.

Uploaded by

adsrlfo98
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 16

Integration Case Study

CO

SAP ERP 6.0

© SAP UCC, Stefan Weidner May 2009 Page 1 of 16


Table of Contents

SCENARIO AND PROBLEM DESCRIPTION ............................................................................................................ 3

PREPARING THE MASTER DATA ............................................................................................................................. 4


CREATING COST CENTERS ............................................................................................................................................. 4
Creating Cost Center for Canteen ........................................................................................................................... 4
Creating Cost Center for Maintenance ................................................................................................................... 4
Creating Cost Center for Assembly ......................................................................................................................... 5
CREATING STATISTICAL KEY FIGURE “NUMBER OF EMPLOYEES”................................................................................. 5
CREATING SECONDARY COST ELEMENTS ...................................................................................................................... 6
Creating Secondary Cost Element for Canteen Assessment .................................................................................... 6
Creating Secondary Cost Element for Activity Allocation of Maintenance Hours.................................................. 6
Creating Secondary Cost Element for Activity Allocation of Assembly Hours........................................................ 6
CREATING ACTIVITY TYPES........................................................................................................................................... 7
Creating Activity Type for Maintenance Hours....................................................................................................... 7
Creating Activity Type for Assembly Hours............................................................................................................. 7
CREATING COST CENTER GROUP FOR THE CANTEEN ASSESSMENT ............................................................................... 8
COST CENTER PLANNING.......................................................................................................................................... 9
PLANNING THE NUMBER OF EMPLOYEES ....................................................................................................................... 9
PLANNING ACTIVITY OUTPUT........................................................................................................................................ 9
PLANNING PRIMARY COST INPUTS .............................................................................................................................. 10
PLANNING INTERNAL ACTIVITY INPUTS ...................................................................................................................... 10
CREATING ASSESSMENT FOR CANTEEN COSTS ............................................................................................................ 11
PERFORMING ASSESSMENT FOR CANTEEN COSTS........................................................................................................ 12
AUTOMATIC PRICE CALCULATION OF TWO ACTIVITY TYPES ...................................................................................... 13
INTEGRATION WITH THE PP MODULE.................................................................................................................. 14
CREATING NEW WORK CENTER FOR COST CENTER .................................................................................................... 14
INTEGRATING NEW WORK CENTER IN ROUTING ......................................................................................................... 15
PERFORMING NEW PRODUCT COST ESTIMATE............................................................................................................. 15

© SAP UCC, Stefan Weidner May 2009 Page 2 of 16


Scenario and Problem Description
This case study emphasizes on major master data and planning methods in
Cost Center Accounting. During the individual tasks you will create three cost
center master records and model the internal activity links between them.

In doing so, you will use the following cost allocation methods: direct activity
allocation and assessment. In conclusion, you will run an automatic price
calculation for the activity types provided by the cost centers. The importance
of these prices was already discussed in the PP case study: their amount –
assuming that activity types of a production cost center are involved – has a
direct impact on product costing.

In conclusion, you will demonstrate the integration with the PP module by


creating a new work center with reference to one of the new cost centers.
You will integrate this work center in the routing for manufacturing a
motorcycle that you created in the PP case study and analyze its effects by a
new cost estimate.

Because each participant is supposed to use his or her own master data and
transaction data, each participant’s data has to have different names.
Accordingly, all master data objects end with ##. You replace the ## with your
PC or group number. Please follow these naming conventions, as it will
otherwise be impossible to differentiate between the different participants’
master data.

Before you start the case study, you can display the transaction codes in the
SAP Easy Access menu: Select menu item Extras  Settings,
and press ENTER or click to confirm.

Change your SAP GUI settings as follows: Choose and then Options. Go
to the Expert tab. Select the Show Keys in All Dropdown Lists indicator and
choose ENTER to confirm.

© SAP UCC, Stefan Weidner May 2009 Page 3 of 16


Preparing the Master Data
Creating Cost Centers

A cost center represents an organizational unit within a controlling


area and specifies a uniquely definable instance where costs are
incurred. This definition can be based on functions, settlement specific,
geography, or cost responsibility.

Creating Cost Center for Canteen

In the SAP Easy Access menu, choose Accounting  Controlling  Cost


Center Accounting  Master Data  Cost Center  Individual Processing 
Create (transaction code KS01).

If the system prompts you to enter the relevant controlling area, enter [1000].
Press ENTER to confirm.

Enter ‘CC-CA-##’ as cost center number (substitute your group/computer


number for ##). The cost center should be valid from 01/01 of the current
fiscal year. Press ENTER or click to confirm.

Enter ‘Canteen ##’ as the cost center name and enter a name for the person
responsible. Select cost center category Service cost center [2] and assign
the cost center to hierarchy area Internal services [H1120]. In addition,
choose company code IDES AG [1000], business area Corporate Other
[9900] and profit center Motorcycles [1000].

Click to save your cost center.

Creating Cost Center for Maintenance

Repeat the above process with the following data:

Cost center: CC-MA-##


Valid from: 01/01 of the current fiscal year
Press ENTER to confirm.

© SAP UCC, Stefan Weidner May 2009 Page 4 of 16


Name: Maintenance ##
Person responsible: Any
Cost center type: [2] Service cost center
Hierarchy area: [H1430] Plant Maintenance
Company code: [1000] IDES AG
Business area: [9900] Corporate Other
Profit center: [1000] Motorcycles
Click to save.

Creating Cost Center for Assembly

Perform the transaction once again with the following values:

Cost center: CC-AS-##


Valid from: 01/01 of the current fiscal year
Press ENTER to confirm.
Name: Assembly ##
Person responsible: Any
Cost center type: [1] Production
Hierarchy area: [H1420] Production
Company code: [1000] IDES AG
Business area: [1000] Mechanical engineering
Profit center: [1000] Motorcycles
Save your cost center.

Creating Statistical Key Figure “Number of Employees”

Because the canteen costs are assessed for three cost centers (including
itself), the number of employees in the cost centers is the allocation base for
cost assessment. You have to create a statistical key figure for this purpose.

In the SAP Easy Access menu, starting from the Cost Center Accounting
folder, choose Master Data  Statistical Key Figures  Individual Processing
 Create (transaction code KK01).

Enter ‘EM-##’ as the key figure number and press ENTER. Type in the name
‘Number of employees’ and choose Persons [PER] as the unit. The key figure
has the category Fxd val. Click Save.

© SAP UCC, Stefan Weidner May 2009 Page 5 of 16


Creating Secondary Cost Elements

Internal cost flows and activity flows are always allocated in SAP ERP
using secondary cost elements. A cost element classifies the
purpose-related, valuated consumption of factors of production within
a controlling area. In contrast to primary cost elements, secondary cost
elements do not have any corresponding, cost-relevant G/L account.

Creating Secondary Cost Element for Canteen Assessment

In the SAP Easy Access menu, starting from the Cost Center Accounting
folder, choose Master Data  Cost Element  Individual Processing 
Create Secondary (transaction code KA06).

Enter ‘PLA-##’ as the cost element number. The cost element should be valid
from 01/01 of the current fiscal year. Press ENTER.

Type in the name ‘Plan Ass. CC-CA-##’ and assign it to cost element
category Assessment [42]. Click Save.

Creating Secondary Cost Element for Activity Allocation of Maintenance Hours

Repeat the process for the maintenance allocation cost element:

Cost element: MAI-##


Valid from: 01/01 of the current fiscal year
Name: Allocation CC-MA-##
Cost elem. cat.: [43] Internal activity allocation
Save.

Creating Secondary Cost Element for Activity Allocation of Assembly Hours

Repeat the process for the assembly allocation cost element:

Cost element: ASS-##


Valid from: 01/01 of the current fiscal year
Name: Allocation CC-AS-##
Cost elem. cat.: [43] Internal activity allocation
Save.

© SAP UCC, Stefan Weidner May 2009 Page 6 of 16


Creating Activity Types

Activity types are organizational units within the controlling area that
classify the activities performed by a cost center. As units of measure,
they are used to allocate internal activities.

Creating Activity Type for Maintenance Hours

The first activity type is rendered by the maintenance cost center. To create it,
starting from the Cost Center Accounting folder in the SAP Easy Access
menu, choose Master Data  Activity Type  Individual Processing  Create
(transaction code KL01).

Enter ‘M-##’ as the activity type number. It should be valid from 01/01 of the
current fiscal year. Press ENTER.

Type in ‘Maintenance hours ##’ as the name. The activity unit is Hour [H], the
activity type should be valid for all cost center categories [*]. Choose activity
type category Manual entry, manual allocation [1] and assign it to the
allocation cost element you just created [MAI-##]. Save your activity type.

Creating Activity Type for Assembly Hours

Similarly, create the activity type for the assembly cost center:

Activity type: A-##


Valid from: 01/01 of the current fiscal year
Press ENTER.

Name: Assembly hours ##


Activity unit: [H] Hour
Cost center cat.: [*] All Cost Center Cate
Activity type cat.: [1] manual entry, manual allocation
Alloc. cost element: [ASS-##] Allocation CC-AS-##

Click to save your activity type.

© SAP UCC, Stefan Weidner May 2009 Page 7 of 16


Creating Cost Center Group for the Canteen Assessment

Cost centers can be grouped together to form cost center groups by


various perspectives to model the company’s structure as cost centers
in the SAP System. You can use these groups to form cost center
hierarchies that summarize the areas for decision-making,
responsibility, and control according to the company’s specific needs.

To assess the canteen costs, you want to create a group with the cost
centers CC-CA-##, CC-MA-## and CC-AS-## (as receivers of the canteen
costs).

From the Cost Center Accounting folder in the SAP Easy Access menu,
choose Master Data  Cost Center Group  Create (transaction code
KSH1).

Name the group ‘GROUP-##’ and press ENTER.

Name the displayed hierarchy ‘Canteen cost receivers’ and click


(not ).

In the left-hand column, enter the cost centers CC-CA-##, CC-MA-## and
CC-AS-## in that sequence and press ENTER to confirm. The names of the
cost centers should then be displayed (see graphic).

If you see instead, it means you have misspelled one


of the cost centers. Select the involved cost center, click and then .
Enter the correct cost center and press ENTER.

© SAP

Click Save. Then return to the SAP Easy Access menu.


You have now created all the master data you need for this case study. We
will continue with cost center planning and the integration with the PP
module.

© SAP UCC, Stefan Weidner May 2009 Page 8 of 16


Cost Center Planning
Planning the Number of Employees

According to company records, 15 people work in assembly, 5 work in


maintenance, and 5 in the canteen.

Choose Accounting  Controlling  Cost Center Accounting  Planning 


Statistical Key Figures  Change (transaction code KP46). The planning
layout Statistical key figures: standard (1-301) appears.
Choose the Plan/actual version [0] and periods 1 to 12 in the current fiscal
year. Enter cost center CC-AS-## and key figure EM-##. Make sure you
leave all other fields blank. Click Form-Based at the bottom of the screen.
Then click Overview Screen or press F5. Enter 15 as the current plan
value and save.

Repeat the process for cost center CC-MA-## and enter 5 as the current plan
value. Save this plan as well.

Repeat the process again for cost center CC-CA-##. Enter 5 as the current
plan value. Save and choose .

Planning Activity Output

In the following steps, you will plan the yearly activity output of maintenance
(1,800 hours) and assembly (6,000 hours).

Choose menu item Accounting  Controlling  Cost Center Accounting 


Planning  Activity Output/Prices  Change (transaction code KP26). The
layout Activity types with prices: standard (1-201) appears.
Fill the fields Version, Periods and Fiscal Year as in the previous exercise, if
they do not already contain the correct default values.
Enter CC-MA-## as the cost center and M-## as the activity type. Leave all
other fields blank. Then click Overview Screen or press F5. Enter 1,800
hours as the plan activity and save.
Repeat the process for cost center CC-AS-## and activity type A-##. Enter a
plan activity of 6,000 hours here. Save.

© SAP UCC, Stefan Weidner May 2009 Page 9 of 16


Planning Primary Cost Inputs

Primary costs are incurred in all three cost centers each fiscal year. These
costs are 60,000 for salaries and 90,000 for purchased services in the
canteen, maintenance salaries in the amount of 60,000, and assembly wages
in the amount of 150,000.

Choose Accounting  Controlling  Cost Center Accounting  Planning 


Costs/Activity Inputs  Change (transaction code KP06). The Cost
elements acty-indep./acty.-dependent (1-101) layout appears.
Fill the fields Version, Periods and Fiscal Year as in the previous exercise, if
they do not already contain the correct default values.
Enter CC-CA-## as the cost center and Salaries [430000] as the cost
element. Leave all other fields blank. Click Overview Screen or F5. Enter
the plan fixed costs of 60,000. Save.

Repeat the process for cost center CC-CA-## and cost element Purchased
services [417000]. Again, leave all other fields blank. Click Overview
Screen or F5. Enter plan fixed costs of 90,000 and save.

Now enter CC-MA-## as the cost center and Salaries [430000] as the cost
element. Leave all other fields blank. Click Overview Screen or F5. Enter
plan fixed costs of 60,000 and save.

Enter cost center CC-AS-##, activity type A-## and cost element Direct labor
costs [420000]. Now that you have added the activity type, the primary cost
input can be planned activity specifically – that is, with a fixed and variable
price. Then click Overview Screen . The Plan variable costs field should
now be ready for input. Enter 150,000 here and save.

Planning Internal Activity Inputs

During the current fiscal year, the assembly department plans to have their
equipment checked regularly by the company’s internal maintenance team.
They estimate an effort of 600 maintenance hours.

To plan this, from the Cost Center Accounting menu, choose Planning 
Costs/Activity Inputs  Change (transaction code KP06). The Cost elements
acty-indep./acty.-dependent (1-101) layout appears. Because this screen is
only suitable for cost elements, not activity types, click to go to the next
layout, Activity input acty-indep./acty-dep. (1-102).

© SAP UCC, Stefan Weidner May 2009 Page 10 of 16


Fill the fields Version, Periods and Fiscal Year as in the previous exercise, if
they do not already contain the correct default values.

Enter CC-AS-## as the cost center, CC-MA-## as the sender cost center, and
M-## as the sender activity type. Leave all other fields blank. Press enter.
Go to the overview screen and enter 600 hours as plan fixed consumption.
Save.

To check your planning so far, from the Cost Center Accounting menu,
choose Information System  Reports for Cost Center Accounting 
Planning Reports  Cost Centers: Planning Overview (transaction code
KSBL). Then run this report for each of your three cost centers (click
Execute or press F8).

You can see that your cost centers have been charged with primary costs. In
addition, you can also see the total inputs and internal allocation quantities in
maintenance and assembly.

Creating Assessment for Canteen Costs

In the Cost Center Accounting menu, choose Planning  Allocations 


Assessment (transaction code KSUB). Then choose Extras  Cycle 
Create. Enter cycle number ‘C-##’, which is valid from 01/01 of the current
fiscal year and press ENTER to confirm. Type in ‘Cycle CC-CA-##’ as text,
uncheck the Iterative field and click .
On the Segment Header tab type in ‘SEG-##’ as segment name. Enter PLA-
## as the assessment cost center.
On the Senders/Receivers tab enter CC-CA-## as Sender Cost Center (from)
and Cost Center Group GROUP-## as receiver.

© SAP

© SAP UCC, Stefan Weidner May 2009 Page 11 of 16


On the Receiver Tracing Factor tab choose the value Plan Stat. Key Figures
[6] in the “Var.portion type” field. The message “Maintain fields Stat. Key fig.”
indicates that new fields are displayed. Choose the Plan/actual version [0]
and statistical key figure EM-## as selection criteria.

Click Save, click three times to go back, and confirm the subsequent
confirmation with YES.
Performing Assessment for Canteen Costs

In the Execute Plan Assessment: Initial Screen enter C-## in the Cycle field
of and press ENTER. Uncheck the Test Run field and choose Execute (click
or press F8).
The system should notify you that processing was completed without errors.
The number of senders should be 1 and the number of receivers 3. Go back
to the SAP Easy Access menu.

© SAP

Examine the results of the assessment in your three cost centers using the
familiar report Cost Centers: Planning Overview (transaction code KSBL).

The maintenance and assembly cost centers should have been charged with
a canteen assessment of 30,000 and 90,000 and the canteen cost center
credited with 120,000. 30,000 remain with CC-CA-##.

You may have noticed that the activity inputs and activity allocations of cost
centers CC-AS-## and CC-MA-## are still valuated with zero, even though all
the quantity information has been entered. This is because no prices have
been planned yet for the involved activity types. We will do this next.

© SAP UCC, Stefan Weidner May 2009 Page 12 of 16


Automatic Price Calculation of Two Activity Types

In the Cost Center Accounting menu, choose Planning  Allocations  Price


Calculation (transaction code KSPI).
Choose the first radio button (Cost center group) in the Cost centers field
group and enter your cost center group GROUP-##. Also choose No
Business Processes, the Plan/actual version [0] and periods 1 to 12 in the
current fiscal year.
Uncheck the Test Run field again and press Execute. If everything worked
correctly, the SAP System reports that the calculated prices have been
posted correctly (“Results of iterative activity price calculation have been
posted”). Press ENTER to display the prices. Write down the prices the
system calculated for your activity types:

Total price for CC-AS-## and activity type A-##: _______________


Total price for CC-MA-## and activity type M-##: _______________

Examine the results of the price calculation in your three cost centers in
report Cost Centers: Planning Overview (transaction code KSBL).

Your assembly cost center report could look like the example below:

© SAP

As you can see, the canteen costs and assessment of the maintenance cost
center amount to 120,000. Direct Labor Costs in the amount of 150,000 are
also incurred. If the total input is 6,000 hours, this results in a price of 45.00
for one assembly hour.

© SAP UCC, Stefan Weidner May 2009 Page 13 of 16


Integration with the PP Module
The integration between Cost Center Accounting and Production Planning
and Control is the result of assigning work centers to cost centers. You will
implement this below – based on the information you used in the PP case
study.

Creating New Work Center for Cost Center

The work center organizational unit (for example: person, machinery


etc.) defines where and by whom an operation is performed. A work
center has a specific capacity available. The work performed there is
valuated using allocation rates that are determined by cost centers and
activity types.

In the SAP Easy Access menu, select Logistics  Production  Master Data
 Work Centers  Work Center  Create (transaction code CR01).

You want to create the work center in plant [1000] with number ‘CTR-##’. As
usual, you substitute ## with your group/computer number. Choose work
center type Labor [0003]. In the copy from field group use reference work
center Assembly IV [1420] in plant [1000. Press ENTER.

In the Copy from… screen, choose all the selection areas aside from
Costing. Then click Copy or press ENTER. The Create Work Center: Cost
Center Assignment view appears. Enter today’s date as the start date and the
cost center you created (CC-AS-##). Then start the input help (F4) in field
Activity Type for Setup. Only your activity type (A-##) should be displayed.
Select it. Then define key Prod.: Setup time [SAP001] as the formula key.

Proceed similarly for the Machine Time and Labor Time using the following
data:

Activity type Formula key


Machine time: A-## [SAP002] Prod: Machine time
Labor time: A-## [SAP003] Prod: Labor time

Then click to save.

© SAP UCC, Stefan Weidner May 2009 Page 14 of 16


Integrating New Work Center in Routing

In the SAP Easy Access menu, select Logistics  Production  Master Data
 Routings  Routings  Standard Routings  Change (transaction code
CA02).

Choose your routing for the material UCC-MOTORCYCLE-## in plant [1000],


select today’s date as the key date and press ENTER. Then double-click on
the description for operation 0020.

In the next screen, first delete the default values and activity types in the
Setup, Machine, and Labor lines. Then press ENTER.

Now overwrite the value in the Work Center field (1420) with your new work
center CTR-##. Press ENTER to confirm. Put in a time of 6 Minutes in the line
for the setup time and A-## as the activity type. Proceed accordingly with the
second line (machine time): enter 60 Minutes and A-##. In the last line, enter
a labor time of 120 Minutes and A-## as the activity type. Then press ENTER
to confirm.

Click to return to the operation overview and to save your changes.

You have now added a new work center, valuated with your activity type to
the motorcycle routing. As a result, the prices you just calculated will become
effective in the next cost estimate. As you probably noticed, the new work
center will be much more efficient.

Performing New Product Cost Estimate

In the SAP Easy Access Menu, choose path Accounting  Controlling 


Product Cost Controlling  Product Cost Planning  Material Costing  Cost
Estimate with Quantity Structure  Create (transaction code CK11N).
Choose your material UCC-MOTORCYCLE-##, plant [1000] Hamburg,
costing variant [PPC1], costing version [1], and costing lot size [1]. Press
ENTER to confirm.

© SAP UCC, Stefan Weidner May 2009 Page 15 of 16


On the next tab press ENTER to accept the default dates. The system will
now cost your motorcycle based on the bills of material and the modified
routing.
The valuated BOM is displayed on the left. The manufacturing costs are
estimated as 1,554.55. When you choose Costs  Itemization (or press F6),
the itemization is displayed on the bottom half of the screen.

On the lower screen, select , choose Select Layout... and Item


Categories (Grouped) [1SAP06].

Items 6, 7 and 8 in operation 0020 contain the costs of the second operation
in your motorcycle routing with your activity type A-## rendered by work
center CTR-##.

You can see the allocation rates that have been charged for 6 minutes, 1
hour, and 2 hours of assembly activity.
To display the individual cost components, choose menu path Costs 
Display Cost Components (or press F5). Click once again and choose
“Select Layout...”. This time, select the layout for Cost Component Groups
[1SAP02].

Save your costing as an [Itemization] and a [Log] and press ENTER to


confirm.

Congratulations, you have now successfully completed the CO integration


case study!

Several of the ideas in this case study are based on materials developed by Mr Martin Voß (University of
Passau) and Mr Heino Schrader (SAP AG), whose work is acknowledged here.

This publication or parts thereof may only be disclosed to or reproduced by faculty members of institutions
connected to SAP University Competence Centers, for use in teaching. Material may not be disclosed in
digital form. Any changes to the content of the case study, or any changes made to the case study texts –
minor or otherwise – must not distort the origin of the intellectual property, as input in person by SAP UCC
and Stefan Weidner (SAP UCC Magdeburg). Should you have any questions, please contact the author.

SAP, the SAP logo, the R/3 System, and any other SAP products and services mentioned in this text,
including the relevant logos, are trademarks or registered trademarks of SAP AG in Germany and
internationally. All other names of products and services are trademarks of the companies in question.

© SAP UCC, Stefan Weidner May 2009 Page 16 of 16

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