MANAGERIAL ACCOUNTING

CONTROLLING
SAP Calls Managerial Accounting as Controlling and the module is commonly known as CO. The CO module is thus primarily oriented towards managing and reporting cost/revenue and is mainly used for internal decision making. As in which any other module this module has configuration setup and application functionality. The controlling module focuses on the internal users and helps the managements by providing reports on cost centres, contribution margin and profitability etc. Maintain Controlling area A controlling area is the central organizational structure in Controlling (CO) and it is used in the cost accounting. The controlling area, as in the case of company code, is a self contained cost accounting entity for internal reporting purpose. The controlling area is assigned to company code so as to ensure that necessary transactions posted in FI are transferred to controlling for cost accounting process. 1- A company code needs to be attached to the controlling area (1:1 relationship). 2- More than one company code can work with same controlling area. 3- A Chart of Account can be assigned to more than one controlling area 4- One or more controlling area can be defined under an Operating Concern 5- At Client level there can be one or more controlling areas. Sub-module in CO Cost element Accounting Cost elements are nothing but update the GL master records in to controlling Cost Centre Accounting This module we are using to view the departmental wise Cost Internal Orders These internal orders we are using for view the specific cost of cost Profit Centre Accounting This profit centre accounting we are using for viewing the profit in product wise/product group wise/location wise etc Profitability Analysis This profitability analysis we are using for viewing the profit at a time in different parameters -1UBAID ANCHALAN

MANAGERIAL ACCOUNTING
like product wise/ Customer wise/ Plant wise/ Division wise/ Sales organization wise/ Distribution channel wise. Product Costing This product costing we are using for valuate the inventory value like finished goods Work-in-progress Maintain Controlling Area (OKKP) Path: Spro Img Controlling General Controlling Organization Maintain Controlling Area Double click on Maintain Controlling area Click on new entries Controlling area TACO (Any) Name Controlling area for TAST Assignment of Control Company code TAST Area Cross company code cost accounting Currency 10 (Company code Currency) Currency INR Chart of Account CHAC Fiscal year variants T1 (std V3) Cctr- standard hierarchy TAST_CCTR (Any) Double click on Assignment of Company code folder Click on yes Click on new entries Cocd Name TAST Press enter key and Save Double click on Activates components/ Control indicators folder Click on new entries Fiscal year 2009 Cost center Component Active (Tick mark) Activate AA Activity type (AA- Activity allocation) Order managements Components active Select profit center Accounting Press enter key and Save Come back 5 times Maintain number range for Controlling document (KANK) Path: Spro Img Controlling General controlling Organization Maintain number range for controlling documents

-2UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Co-area TACO Click on group tab (f6) Now go to group in Menubar Insert Text Controlling documents number range for TAST From Number To Number 100000 Press enter key and Save Come back wise Maintain Version Path: Same Now go to Extras in Menubar Set controlling area Controlling area TACO Select 0 Version Double click on Controlling area settings folder Again Select 0 Version Double click on settings for each Fiscal year folder Note: Now by default we will get 5 fiscal year in this 5 fiscal year if the current fiscal year is not exist so that we have to create the current fiscal year Click on new entries for creation of new fiscal year Fiscal year 2009 Deactivate Version Locked (If you activate this check box that mean it is not possible to maintain the value in 2009) Deactivate Integrated Planning (If you want to transfer to the planning value from one cost object to another on that time we have to activate this check box) Activate Copying allowed (If you activate this check box it is possible to copy the plan value from one fiscal year to another fiscal year) Exchange rate type M (Avg rate) Press enter key and Save Note: Just like this we can create any number of fiscal year. If the 2008 is already exist no need to create Come back 4 times Period Lock In this period lock we are locking the CO business transaction that mean we are not giving the authorization for users to post to CO transaction

-3UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Period Lock procedures (OKP1) Path: Sap easy access Accounting Controlling Cost center accounting Environment Period lock change Controlling area TACO Fiscal year 2009 Version 0 Click on Actual tab Transaction 01 (First period) CO through posting from FI Activate Click on Save Now got to F-02 try to post a CO documents on the time you will get the following message Transaction CO through Posting from FI has been locked Deactivate the period lock check box COST ELEMENTS ACCOUNTING Cost element is nothing but the updating master data in to CO. There are two types of cost elements they are 1) Primary cost elements 2) Secondary cost elements Primary cost elements The primary cost elements represents the consumption of production factors like raw-material, human resources, utilities etc. The primary cost elements have their corresponding GL account in FI. All the expenses or revenue accounts in FI correspond to the primary cost elements in CO. SAP treats revenue elements also as primary cost elements in CO processing. The only difference is that all the revenue elements are identified with negative sign while posting in CO. The revenue elements correspond to the revenue account in FI, and they all under the category 01/ 11 of Cost elements category. Secondary cost elements The Secondary cost elements represents the consumption of production factors provided internally by the enterprises itself, and are the presents only in the CO. Those elements we are recorded with in the CO side only is called secondary cost elements Cost elements creation There are two type of cost elements creation procedures 1) Manual Creation 2) Automatic Creation

-4UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Manual Creation In this manual creation after the creation of GL account users should update this account in to CO Automatic Creation Here after the creation of GL accounts the system automatically update this account in to CO Manual Creation Cost Account updation Go to FS00 Select the salaries account Click on change field Click on create/bank/interest tab Now change the field status group in to G004 (Cost account) Press enter key and Save Click on edit cost elements tab Cost elements - Salaries Account Valid from 01-04-09 to 31-12-9999 Click on master data tab Cost elements category 1 (Primary Cost) Press enter key and Save Note: Just like we can update all cost of accounts Revenue Account updation Go to FS00 Select the sales accounts Click on change field Click on create/bank/interest tab Now change the field status group in to G029 (Revenue account) Press enter key and Save Click on edit cost elements tab Cost elements - Sales Account Valid from 01-04-09 to 31-12-9999 Click on master data tab Cost elements category 11 (Revenues) Press enter key and Save Note: Just like we can update all Revenue accounts Automatic Updating Path: Spro Img Controlling Cost elements accounting Master data Cost elements Automatic creation of primary and Secondary cost elements A) Make default settings (OKB2) -5UBAID ANCHALAN

MANAGERIAL ACCOUNTING

Chart of Accounts CHAC Account from Account to Cost elements category (CECT) 300001 400000 11 (Revenue) 400001 500000 1 (Primary cost) Press enter key and Save Come back B) Create Batch input session (ORB3) Controlling area TACO Valid from 01-04-09 Valid to 31-12-9999 Session name Ubaid Press F8 for execute Come back twise C) Execute Batch input Session Select your Session Ubaid Click on Process Tab Select display errors only Click on process Click on session overview Come back Note: But generally we are not preferring the automatic updation Display of Cost elements index (KA23) Path: Sap easy access Accounting Controlling Cost elements accounting Information system Report for cost and Revenue elements Accounting Master data index Cost elements master data report Select All cost elements Press f8 for execute COST CENTER ACCOUNTING Cost Centre Accounting Cost centre is an organizational element within the controlling area. Cost centre accounting helps to track the where the costs are incurred in your enterprises. All the cost elements like salary, wages, rent, water charges etc incurred are either assigned or posted to a cost centre. This cost centre accounting we are using for view the departmental wise cost Cost Centre Category Creation (OKA2) Cost centre category is an indicator in the Cost centre master record to identify what kind of activities a particular cost centre will be performing. -6UBAID ANCHALAN

MANAGERIAL ACCOUNTING

Path: Spro Img Controlling Cost centre Accounting Master data Cost centre Define cost centre categories Just check the categories and study the check box. No need to create own categories because already various categories available. If you want you can do by clicking new entries Creation of Cost Centre group (KSH1) Path: Sap easy access Accounting Controlling Cost centre accounting Master data Cost centre group Create Cost centre group TAST_CCTR Click on Hierarchy (F6) Click on Yes TAST_CCTR Cost centre group for TAST Click on lower level tab Prod Production Departments Click on same level tab Purc Purchase departments Click on same level tab Sale Sales Departments Click on same level tab Magm Managements Departments Click on same level tab Admn Administration departments Click on same level tab RanD Research and Developments Click on save Come back wise Creation of Cost Centre (KS01) Create the following Cost centre under the Production Departments Department A Department B Department C Path: Sap easy access Accounting Controlling Cost centre accounting Master data Cost centres Individual Processing Create Cost centres Dep A Valid from - 1-04-09 Click on Master data tab Name Dep A Description Department A Person responsible UBAID to 31-12-9999

-7UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Cost centre category 1 (Production) Hierarchy area Prod (Production Departments) Business area TAHY Currency INR Press two times enter key and Save Note: Just like we can create Departments B, C and Many more. If you want to change Cost centre master data go to KS02 If you want to display the cost centre go to KS03 Display of Cost Centre Index (KS13) Path: Sap easy access Accounting Controlling Cost centre accounting Information system Reports for Cost centre accounting Master data index Cost centre master data reports Select all Cost centres Press F8 for execute CO Documents Number ranges Settings (KANK) Path: Spro Img Controlling General controlling Organization Maintain number ranges fro controlling documents. Controlling area TACO Click on group tab (F6) Click on Controlling documents number ranges for TAMT Select COIN CO Through Posting from FI Click on elements group tab Click on save Come back wise CO Documents Posting through FI Go to F-02 Paid department A salary 10000 through bank on 30-04-09 Document date 30-04-09 Type SA Company code TAST Posting date - 30-04-09 Period 01 Currency INR Docu header text Salaries paid Pstky 40 Account Salaries Account Press enter key Amount 10000 Cost center Departments A Text Salaries paid Pstky 50 Account Bank Account Amount - * Business area TAHY -8UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Text - + Press enter key simulate the documents and SAVE Note: Now you will get the FI Documents Number internally in CO system generate the documents. Display of CO Documents (KSB5) Path: Sap easy access Accounting Controlling Cost center accounting Information system Reports for Cost center Accounting Line items CO Documents Actual Cost Documents number - * Layout 1SAP (Primary cost posting) Press f8 for execute and Check the documents details Display of Cost centre Reports (KSB1) Path: Sap easy access Accounting Controlling Cost centre accounting Information system Reports for Cost centre Accounting Line items Cost centre actual line items Cost centre Dep A Cost elements Salaries Accounts Posting date 01-04-09 to 31-03-2010 Layout 1SAP Press F8 for execute Planning of Cost Centre (KP06) Path: Sap easy access Accounting Controlling Cost centre accounting Planning Cost and Activity inputs Change Version - 0 From Period 1 to period - 1 Fiscal year 2009 Cost centre Dep A Cost elements Salaries Accounting Select form based (We can change in future) Press F5 for Overview the screen Assign the 8000 in Plan fixed Cost column Press enter key and Save Actual / Plan Variants Reports (S_ALR_87013611) Path: Sap easy access Accounting Controlling Cost centre accounting Information system Reports for Cost centre Accounting Plan/ Actual Comparison S_ALR_87013611-Cost centre/ Plan/ Actual/ Variants -9UBAID ANCHALAN

MANAGERIAL ACCOUNTING

Controlling area TAST Fiscal year 2009 From period - 1 to Period 1 Plan Version 0 Cost centre value Dep A Cost elements value Salaries Accounts Press F8 for execute REPOST CO LINE ITEMS This repost CO line items we are using by the time of documents posting when we dont know where that cost was incurred Go to KS01 Create the Dummy Cost centres under production departments CO Documents number range settings Go to KANK Controlling area TACO Click on Group tab (F6) Select controlling documents number ranges Double click on RKU3 Repost cost line items business transaction from not assigned Column Click on elements/ Group tab Click on Save Go to FS00 Select Printing and stationary account and Update in to CO (Field status group G004 (Cost accounts) Purchase printing and Stationary 10000 on 01-04-2009 through cash and this assigned to Dummy Cost centres Go to F-02 Post the following Documents Printing and Stationary Account 10000 To Cash 10000 Note the FI documents number -19 Repost cost line item Procedures (KB61) Now in this above documents Printing and Stationary at moth end we distribute the following Cost centres Dep A 6000 Dep B 3000 Dep C 1000 Path: Sap easy access Accounting Controlling Cost centre Accounting Actual Posting Repost line item Enter - 10 UBAID ANCHALAN

MANAGERIAL ACCOUNTING

Documents Number 19 Company code - TAST Fiscal year 2009 Cost elements Printing and Stationary Account Cost centre DUMMY Press F8 for execute Double click on 10000 Click on header tab Posting date 30-4-2009 Document date 30-04-2009 Click on Raw tab New Account Assignment Amount 6000 Cost centre Dep A Press enter key Amount 3000 Cost centre Dep B Press enter key Amount 1000 Cost centre Dep C Press enter key and Save

REPOST COST
This repost cost we are using when user assign the wrong cost centre CO Documents Number ranges settings Go to KANK Controlling area TACO Click on group tab (F6) Select control documents number ranges Double click on RKU1 Repost cost business transaction from not assigned column Click on elements/ group tab Click on Save Go to F-02 Post the following documents on 30-04-09 Assigned to department A cost centre Salaries account 10000 To Bank account 10000 Actually this cost was incurred on Dep B Cost centre but User wrongly assigned to Dep A Cost centre.

- 11 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Repost Cost Procedures (KB11N) Path: Sap easy access Accounting Controlling Cost centre Accounting Actual Posting Manual reposting of cost Enter Documents date 30-04-09 Posting date 30-04-09 Period 1 Documents text Repost Cost CCTR (old) Cost elements Amount CCTR (New) Dep A Salaries Account 10000 Dep B Press enter key and Save STATISTICAL KEY FIGURES Statistical key figures is nothing but cost unit Cost Salaries Telephone bill Electricity bill Rent Units Number of employees Number of tel bills Number of unit Number of Sqft

Creation of statistical key figures (KK01) Path: Sap easy access Accounting Controlling Cost center accounting Master data Statistical key figures Individual processing Create A) Statistical key figures 100 (any) Click on Master data tab Name Number of employees Statistical key figures units ea (each) Key figures category Select Fixed value (Number of employee will be same) Press enter key and Save. B) Statistical key figures 200 Click on master data Name Number of Sqft Statistical key figures ea Key figures category Select fixed value Press enter key and Save C) Statistical key figures 300 Click on master data Name Number of tel call unit Statistical key figures ea Key figures category Select total value (Call will be change in every year) Press enter key and Save D) Statistical key figures 400 Click on master data - 12 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Name Number of electricity unit Statistical key figures ea Key figures category Select total value (unit will be change in every year) Press enter key and Save The Phone bill posting with statistical key figures Step1: Paid telephone bill 1000 through cash on 30-04-09 for 1000 telephone call Step2: Go to FS00 select telephone bill account and update in to CO (Field Status G004) Step3: Go to F-02 Post the following documents for departments A on 30-04-09 Telephone bill a/c To Cash a/c Define plan value for telephone bills (KP06) Path: Sap easy access Accounting Controlling Cost centre accounting Planning Cost and activity inputs Change Version 0 From period 1 To Period 1 Fiscal year 2009 Cost centre - Dep A Cost elements Telephone bill a/c Select Form based Press F5 for Overview screen Assign 800 in Plan fixed cost column Press enter key and Save Statistical key figures posting A) CO Documents number ranges settings Go to KANK for number range settings Controlling area TACO Click on maintain group tab Click on controlling documents number ranges Double click on RKS - Enter statistical Key figures business transaction from not assigned column Click on elements Group tab Click on Save Come back wise

- 13 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
B) Statistical key figures Posting procedures (KB31N) Path: Sap easy access Accounting Controlling Cost centre accounting Actual posting Statistical Key figures Enter Document date 30-04-09 Posting date 30-04-09 Document header text Telephone cost unit posting Rec cct Statistical key fig Total Qty Dept A 300 1000 (Calls) Press enter key and Save Planning value for statistical key figures ( KP46) Path: easy access Accounting Controlling Cost centre accounting Planning Statistical key figures Change Version 0 From period 1 To Period 1 Fiscal year 2009 Cost centre - Dep A Statistical key figures - 300 Select Form based Press F5 for Overview screen Assign 800 in Current plan value column Press enter key and Save Reports (S_ALR_87013611) Path: Sap easy access Accounting Controlling Cost centre accounting Information system Reports for cost centre accounting Plan/ Actual Comparison Cost centre Actual/ plan/ Variants Controlling area TACO Fiscal year 2009 From period - 1 To Period 1 Plan version - 0 Cost centre value Dep A Cost elements value Telephone bill account Press F8 for execute

- 14 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
MANNUAL COST ALLOCATION Distribution and Assessments are the two important Manual cost allocation in SAP. This manual cost we are using for allocating the primary cost and secondary cost from one cost centre to another cost centre. Go to KSB1 and check the cost centre value of Dep-A for salaries in the 1st period Cost centre Dep A Cost elements Salaries Posting date 01-04-2009 To 30-04-09 Layout 1SAP Press f8 for execute Now we can see cost centre value is 8000 Distribution This distribution also we are using for allocate the primary cost from one cost centre to another cost centre through a distribution cycle. Step1: CO Documents number range settings for distribution Go to KANK for number range settings Controlling area TACO Click on maintain group tab Click on controlling documents number ranges Double click on RKIV (Actual Overhead distribution) business transaction from not assigned column Double click on RKPV (Plan overhead distribution) business transaction from not assigned column Click on elements Group tab Click on Save Distribution Cycle Preparation (S_ALR_87005757) Path: Sap easy access Accounting Controlling Cost centre accounting Period end Closing Current settings Define distribution Cycle Salary account Start date 01-04-09 Press enter key Text Salaries Distribution Click on attach segments tab Segments name Salary Salary distribution Segment Header tab - 15 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Sender values Sender rule - Posted amount Share in % - 100 Select actual values Receiver tracing factor tab Receiver rule Fixed percentage Click on Sender/ Receiver tab Senders Cost centre Dep A Cost elements Salary Account Receiver Cost centre Dep B Dep C Click on Sender value tab Version 0 Receiver tracing factor Percentage / Portion Dep B 25 Dep C 25 Press enter key and Save Come back three times Click on yes Distribution cycle run (KSV5) Path: Sap easy access Accounting Controlling Cost centre accounting Period end Closing Single transactions Allocation Distribution Period 1 to 1 Fiscal year 2008 Select test run Select details list tab Cycle Salary Press enter key Press f8 for execute Select Sender 1 Click on Sender tab (Shift+F4) Come back Now select number of receiver 2 Click on Receiver tab (Shift+F5) Come back wise Click on yes Deactivate test run and again press f8

- 16 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Assessments This assessment is also we are using for to allocate the cost from one cost centre to another cost centre What is the difference between Distribution and Assessment Distribution In this distribution we are allocating the Particular cost elements cost from one Cost centre to another cost centre Creation of Secondary cost elements (KA06) Path: Sap easy access Accounting Controlling Cost elements accounting Master data Cost elements Individual Processing Create Secondary Cost elements Salary Valid from 01-04-09 31-12-9999 Click on master data tab Name Assessment Description Assessment Cost elements Cost elements category 42 (Assessments) Press enter key and Save CO Documents number ranges settings Go to KANK for number range settings Controlling area TACO Click on maintain group tab Click on controlling documents number ranges Double click on KMPN Manual cost allocation from not assigned column Double click on RKIU - Actual Overhead Assessment business transaction from not assigned column Double click on RKPU - Plan overhead assessment business transaction from not assigned column Click on elements Group tab Click on Save Go to KS01 create Dep D Cost centre under production departments Go to F-02 or (FB50 for Multiple posting) following expenses for Dep D Cost centre on 30-0409 Salaries 2000 Telephone 2000 - 17 UBAID ANCHALAN Assessment In this assessment we are allocating the total cost of a cost centre (All cost elements cost of cost centre) from one cost centre to Another cost centre

MANAGERIAL ACCOUNTING
Electricity 2000 Printing and Stationary 2000 Go to KSB1 Check the cost centre value in Dep D Cost centre Dep D Cost elements Keep blank Posting date 01-04-09 30-04-09 Layout 1SAP Press f8 for execute Now total value is 8000 Now in this above 8000 Manually allocate 2000 to Dep A Cost centre Manual Cost allocation (KB15N) Path: Sap easy access Accounting Controlling Cost centre accounting Actual posting Manual cost allocation Enter Documents date 30-04-09 Posting date 30-04-09 Period 01 Document header text Manual Assessments Cost elements Salary Amount 2000 Sender Receiver Cost centre Dep D Cost centre Dep A Click on Save it Now go to KSB1 check the values in Dep D Cost centre Dep D Cost elements Keep blank Posting Date 01-04-2009 to 30-04-2009 Layout - 1SAP Press F8 for execute Now the values is 6000 Now in this above 6000 allocate the 50% cost to Dep A 25% and Dep D 25% through a Assessment Creation of Assessment Cycle (S_ALR_87005742) Path: Sap easy access Accounting Controlling Cost centre accounting Period end close Current settings Define assessment Cycle Asses Start date 01-04-2009 - 18 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Press enter key Text Assessment cycle Click on attach segments tab Segment name Asses (Assessment cycle) Assessment cost elements Salary Receiver tracing factor Receiver rule Fixed Percentage Click on Sender/ Receiver tab Sender Receiver Cost centre Dep D Cost centre Dep A Dep B Click on sender value tab Version 0 Click on Receiver Tracing factor tab Dep A 25% Dep B 25% Press enter key and Save Come back three times Click on yes Assessment Cycle Run (KSU5) Path: Sap easy access Accounting Controlling Cost centre accounting Period end close Single function Allocation Assessment Period 1 to 1 Fiscal year 2009 Activate test run Activate Details list Cycle Asses Press f8 for execute Now select Sender 1 click on Sender tab Come back Select number of Receiver 2 click on Receiver tab Come back wise Click on yes Deactivate the test run and again Press F8 ACCRUAL CALCULATION This accrual calculation we are using for month end provision. It generate the documents only in CO. Cost element categories 03 Go to KS01 create the following cost centres 1. Department E Under production department. 2. Bonus under administration department. - 19 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Go to FS00 create bonus account under expenses and update in to CO.cost element categories-03 CO document number range settings. Go to KANK for number range settings Controlling area TACO Click on maintain group tab Click on controlling documents number ranges Double click on KAZI (Actual Cost Centre Accrual) business transaction from not assigned column. Double click on KAZP (Plan Cost Centre Accrual) business transaction from not assigned column. Click on elements Group tab Click on Save Comeback wise Maintain Overhead Structure (KSAZ) Path : Spro Img Controlling Cost element Accounting Accrual Calculation Percentage Method Maintain Overhead Structure Click on Create Overheads Structure fields (F7) Overhead Structure TAST (any for digit) Description Overhead Structure for bonus Give the Row Base 10 (any) TA1 (any) Press enter key Name Salaries Click on Create Field Row Base Overhead 20 TA2 Press Enter Key Name Bonus Dependency KRS1 (Controlling Area) Click on Create Field Assign 10 To 10 in from and to column. From To Credit 10 10 TA3 (in front of the bonus line items) Press Enter Key Click on Create Press Enter Key and save. (Tick Mark) Go to Bottom of the screen Select overhead structure of TAST Click on Assignment Tab Controlling Area TACO - 20 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Select Actual Accrual Click on Continue field (Tick Mark) Valid From Valid To Overhead Structure 01 2008 12-2009 TAST Press enter key and Save Double click overhead structure TAST Click on Save Select overhead structure tree TAST Open Controlling area Dailar box Select Actual Accrual Now go to environment in Menubar Select base Click on position Base TA1 (Tick mark) Double click on TA1 key (Salaries) Cost elements Salaries Press enter key and Save Comeback Again Select Actual accrual Go to Environment in Menubar Select overhead rate Click on position Overhead rate TA2 (Tick mark) Double click on TA2 key Valid from Valid to Actual overhead 01-2008 12-2009 10 Press enter key and Save Comeback Again Select Actual Accrual Go to Environment in Menubar Select credit Click on position Overhead rate TA3 (Tick mark) Double click on TA3 key Business area Valid to Cost elements 01-2008 12-2009 Bonus Press enter key and Save Comeback

Cost center Bonus

Go to F-02 Post the following documents on 30-04-2008 Assign the Dep E Cost centre Salaries Account To Cash Accrual Calculation Procedures (KSA3) Path: Sap easy access Accounting Controlling Cost elements Accounting Actual Posting Accrual calculation - 21 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Select cost centre Dep E Period 1 Fiscal year 2009 Select test run Select Details list tab Press F8 for execute Click on next list level field (cltr+shift+F3) Comeback wise Deactivate test run Press F8 for execute Note: For every month we should run this program

INTERNAL ORDERS
Internal Orders An Internal order is a cost object used mainly for recording costs associated with certain events taking place within the company. The events are unique like marketing campaigns, repairs, trade exhibition etc. Unlike the cost centres where you typically post only the cost, you will be able to post the cost and revenue information to the internal orders. You can plan, monitor collect and settle the cost / revenue on internal orders. These internal orders we are using for view the specific task of cost. These are two types of internal order. 1- Statistical orders 2- Real orders Statistical orders Settlement is not possible Statistical orders A statistical internal order is used to collect the cost for the purpose of information and reporting, as the costs collected on this order are never settled to a cost objects. Creation of field status variants Go to OBC4 for field status variants Click on position Field status variants FSTV (Tick mark) Select your field status variants Double click on field status group folder Select G004 Click on copy as (F6) Change the field status group in to G002 Change the text in to Cost account and Internal orders Press enter key - 22 UBAID ANCHALAN Real orders Settlement is possible

MANAGERIAL ACCOUNTING
Double click on G002 Double click on additional account assignments Keep cost centre, CO/PP orders as required entries Come back twise and SAVE Comeback Go to FS00 select telephone bill account Click on change field Click on create/bank/interest tab Change field status group in to G002 Maintain number range for orders (KONK) Path: Same Click on Maintain Group tab Now go to Groups in Menubar Insert (F6) Text Internal Orders number range for telephone bill From number To Number 90201 90300 Press enter key Go to bottom of the screen Select Internal order number range for telephone bill Double click on TBCD Telephone bill cost from not assigned column Click on elements group tab Press enter key and Save Comeback wise Press enter key and Save Internal Order type Creation (KOT2_OPA) Path: Spro Img Controlling Internal Orders Order master data Define Order type Click on new entries Order category 01 (Internal orders) (Tick mark) Order type TBCD (Any 4 code) (telephone bill cost) Planning profile 000001 Object class Overhead cost Select Release Immediately Press enter key and SAVE (Tick mark) (Tick mark) Comeback wise Internal Orders Creation (KO01) Path: Sap easy access Accounting Controlling Internal Orders Master data Special function Orders Create - 23 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Order type TBCD Click on master data tab Description Tel 9847652968 Business area TAMU Click on Control data tab Select Statistical Orders Press enter key and Save (Note reference number) Like we can create any number of telephone account Paid telephone bill 1000 through cash on 30-04-09 Cost center Dep A Internal Order 9847652968 Go to F-02 Post the above documents Documents date 30-04-09 Type SA Posting date 30-04-09 Period 01 Document header text Telephone bills Post key 40 Account Telephone bill account Press enter key Amount - 1000 Cost center - dept A Order 9847652968 Text Telephone bill Post key 50 Account Cash Account Amount - * Business area TAHY Text - + Press enter key and Save Display of internal Order Report (KOB1) Path: Sap easy access Accounting Controlling Internal Orders Information System Reports for Internal Orders Line items Orders Actual line item Order 9847652968 Cost elements Telephone bill Posting date 01-04-09 to Layout 1SAP Press F8 for execute Planning Internal Orders (KPF6) Path: Sap easy access Accounting Controlling Internal Orders Planning Cost and Activity inputs Change Version 0 From period - 1 To Period 1 - 24 UBAID ANCHALAN Company code TAST Currency INR

30-04-09

MANAGERIAL ACCOUNTING
Fiscal year 2009 Order Internal Orders Number (9847652968) Cost - Telephone bill Select form based Press F5 for Overview screen Assign 800 in total Plan cost column Press enter key and Save Reports Internal Order/ Plan/ Actual/ Variants (S_ALR_87012993) Path: Sap easy access Accounting Controlling Internal Orders Information systems Reports for internal orders Plan/ Actual / Comparison Orders: Actual / Plan / Variants Controlling area TACO Fiscal year 2009 From period 01 To Period 01 Plan version 0 Order value - Orders number Cost elements value 40006 Press F8 for execute

REAL ORDERS
A real internal order is always used to settle costs to the other cost objects. So even if you specify the real cost object while making a posting to the real order, the system will consider that cost object as a statistical one as the internal orders itself is a real cost objects. Field Status Group creation (OBC4) Go to OBC4 for field status variants Click on Position Field status variants FSTV Select your field status variants Double click on field status group folder Select G004 Click on copy as (F6) Change the field status group in to G010 Change the text in to Internal orders Press enter key Double click on G010 Double click on additional account assignments Keep cost center, CO/PP orders as required entries Come back twise and SAVE Comeback Go to FS00 Create Petrol expenses account (Primary cost elements) Under Expenses with field status group G010 and Update in to CO - 25 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Now we are going to create s secondary cost elements Secondary Cost elements Creation (KA06) Path: Sap easy access Accounting Controlling Cost elements accounting Master data Cost elements Individual Processing Create secondary Cost elements 500002 (Settlements) Valid from 01-04-2009 To 31-12-9999 Click on master data Name Settlements Description Settlements Cost elements Cost elements category 21 (Internal Settlements) Press enter key and Save Maintain Allocation Structure (OK06) Path: Spro img Controlling Internal Orders Actual Posting Settlements Maintain allocation structure Click on new entries Allocation structure Text VH Vehicle allocation Press enter key Now select your allocation Structure Double click on Assignments Folder Click on new entries Assignment Text PET Petrol Expenses Press enter key and Save Now select your Assignments Double click on Source folder From Cost elements Petrol elements Double click on settlements Cost elements folder Click on new entries Receiver Category Settlements Cost elements CTR (Cost center) 50002 (Settlements) Press enter key and Save Comeback Six times Maintain Settlements Profile (OK07) Path: Same Double click on maintain settlements profiles - 26 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Click on new entries Settlements profile STPL (Any code) Vehicle settlement profile Allocation Structure VH Default object type CTR Select % Settlements Select Amount Settlements Valid Receivers Cost center Settlements Required Other Parameters Documents type SA Maximum of Dist rece 999 Residence time 12 Comeback twise Maintain number range for Settlements Documents (KO8N) Path: Same Click on maintain group tab (F6) Select standard accounting documents Double click on TACO Controlling area from not assigned column Click on elements group tab Click on Save Comeback twise Maintain Number ranges for Orders (KONK) Path: Same Click on maintain Group tab Now go to Groups in menubar Insert (F6) Text Internal Orders number range for Vehicle From number To Number 90301 90400 Press enter key Go to bottom of the screen Select Internal order number range for Vehicle Double click on VHC Vehicle order type from not assigned column Click on elements group tab Press enter key and Save Comeback wise Internal Order type Creation (K0T2) Path: Spro Img Controlling Internal orders Orders master data Define orders type - 27 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Click on new entries Order category 01 (Tick mark) Order type VHC Settlements profile - STPL Planning profile 000001 Object class Overhead Cost Select Release immediately Press enter key and Save Comeback twise Internal Orders Creation (KO01) Path: Sap easy access Accounting Controlling Internal orders Master data Special function Order Create Order type - VHC Click on master data tab Description Vehicle number 768 Business area TAMU Object class Overhead Click on Settlement rule tab Category Settlement receiver CTR DEP A CTR DEP B CTR DEP C Press enter key and Save FI Documents postings Go to F-02 Paid petroleum expenses 10000 for vehicle 768 through cash on 1-04-09 Documents date 1-04-09 Type SA Company code TAST Posting date 1-04-09 Period 01 Currency INR Document header text Petroleum expenses paid Post key 40 Account Petroleum expenses account Press enter key Amount - 10000 Order - Vehicle no 768 Text Petroleum expenses paid Post key 50 Account Cash Account Amount - * Business area TAHY Text - + Press enter key and Simulate and Save

Percentage 50 30 20

- 28 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Display of internal Order Report (KOB1) Path: Sap easy access Accounting Controlling Internal Orders Information System Reports for Internal Orders Line items Orders Actual line item Order Vehicle No-768 Cost elements Petroleum expenses Posting date 01-04-09 to 30-04-09 Layout 1SAP Press F8 for execute CO Documents number ranges settings for Settlements Go to KANK Controlling area - TACO Click on maintain group tab (F6) Select controlling documents number ranges Double click on KOAO (Actual settlements) Double click on KOAP (Plan settlements) Click on elements group tab Press enter key Click on Save Comeback twise Settlements (KO88) Path: Sap easy access Accounting Controlling Internal orders Period-end Closing Single function Settlements Individual Processing Order Vehicle no -768 Settlements period 1 Fiscal year 2009 Activate Test run Press F8 for execute Click on details list field Come back wise Deactivate Test run and again Press F8 for execute Display of internal Order Report (KOB1) Path: Sap easy access Accounting Controlling Internal Orders Information System Reports for Internal Orders Line items Orders Actual line item Order Vehicle NO-768 Cost elements Settlments Posting date 01-04-09

to

30-04-09 - 29 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Layout 1SAP Press F8 for execute BUDGETING AND ACTIVITY CONTROL Budgeting is nothing but just like a planning. A small difference between budgeting and Planning. Planning we are using for Short term Purpose (Monthly) but budgeting we are doing for long term purpose (Yearly) Path: Spro Img Controlling Internal orders Budgeting and availability control a) Maintain Budget profile (OKOB) Double click on Maintain budget profile Click on new entries Budget profile BUDTEL (Any code) Text Budget profile for Telephone bill Time frame Past 2 Future 3 Activate Total value Activate Annual values Exchange rate type M Activity type 1 (automatic activation) Decimal place 2 Press two times enter key and Save Come back wise Double click on Maintain budget profile in order type (KOAB) Click position Order type VHC (Tick mark) Double click on VHC Order type Budget profile BUPR Press enter key and Save Come back wise b) Maintain number ranges for budgeting (OK11) Path: Same Click on change intervals Note: Here no need for define the number range because by default we have some number range. The number range is 4 - 30 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Click on Save Comeback wise c) Define Tolerance limit for availability control (OKOC) Path: Same Click on new entries Contr area Profile TACO BUPR TACO BUPR TACO BUPR Press enter key and Save Come back wise Tolerance group ++ ++ ++ Action Control 1 (Warning msg) 2 3 Usage 80 85 90

d) Specify exempted Cost elements from Availability control (OBTK) Path: Same Click on new entries Contr area Cost elements TACO 40005 (Salary) you can any cost elements Press enter key and Save Comeback wise e) Maintain Budget Manager (OK14) Click on new entries Control area Order TACO VHC Press enter key and Save Comeback wise Internal Order Creation (KO01) Path: Path: Sap easy access Accounting Controlling Internal orders Master data Special function Order Create Order type - VHC Click on master data tab Description Tel Number -9618941802 Business area TAMU Click on Control data tab Activate Statistical Order Click on Save Object class Overhead Username Ubaid

- 31 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Budget posting for Internal Order (KO22) Path: : Sap easy access Accounting Controlling Internal orders Budgeting Original budget Change Order Tel 9618941802 Click on Original budget tab Period Budget Overall 60000 2006 10000 2007 10000 2008 10000 2009 10000 2010 10000 2011 10000 Press enter key and Save Come back GL Documents Posting Paid Telephone bill 8700 through bank assign the internal order 90221 (tel 9618941802) Cost center Dep A Mail views Path: Sap easy access Office Work place (SBWP) Double click on Inbox Select budget control order 90221 (Tel -9618941802) COMMITMENT MANAGEMENTS In FI commitment refers to certain Commitment, Liabilities like the outstanding orders, open purchase orders, bill liability etc. In CO the Commitment refers to the contractual or scheduled commitments in CO production orders, Internal orders, Maintenance orders, Production orders, Sales Orders, Network, Cost centres etc. that has not yet been passed on to FI but will result in actual expenditure in the future. Maintain Financial Management Area (OF01) Path: Spro Img Enterprise structure Definition Financial Accounting Maintain Financial Management area Click on new entries

- 32 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
FM Area FM Area text FMGT Financial Management Area for TAST Press enter key and Save FM Area currency INR

Note: The FM area Currency is need to be same with Currency assigned to the company code Assign Company code to FM area (OF18) Path: Spro Img Enterprise structure Assignment Financial Accounting Assign company code to FM area Click on Position Company code FM Area TAST FMGT Press enter key and Save Assign Fiscal year Variant to FM area (OF32) Path: Spro Img Public sector Management Funds management government Basic setting Fiscal year variant Assign fiscal year variants to FM Area Click on position FM area Fiscal year variant FMGT TE Press enter key and Save Assign field status variants to company code (FMUV) Path: Spro Img Controlling Cost centre Accounting .Commitment and Fund managements Field control for fund managements Assign filed status variant to company code Click on Position Company code TAST Field Status variants FMRE (earmarked fund status variants) Press enter key and Save Commitment item creation (FMCIA) Path: Sap easy access Accounting Public sector managements Fund managements Master data Account assignment elements Commitment item Individual Processing FM Area FMGT (tick mark) Commitment item 1000 (Any code) Click on create field Name Purchase Description Purchases - 33 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Financial transaction 30 (Revenue, Expenses, Asset, Inventory stock) Commitment item category 3 Press enter key and Save Assign Commitment item to GL Go to FS00 Select Purchases Account and click on change field Click on create/ bank /interest tab Commitment item 1000 Press enter key Save Commitment Item Posting (FMZ1) Path: Sap easy access Accounting Controlling Cost elements Accounting Actual Posting Funds commitment Create Documents type CO (CO fund commitment) Document date 31-04-09 Type DR Posting date 31-04-09 Period 01 Documents header text Purchases Original amount 500000 Commitment item 1000 (Purchase) GL Purchase account Business area TAHY Press enter key and Save Company code TAST Currency INR

Note: Before going to posting the Commitment account update with Purchase account in to CO Field Status group settings (OBC4) Go to OBC4 Field status variants Click on Position Field status variants - FSTV Now select your Field status variants Double click on field status group Double click on G004 Double click on Additional Assignment group Keep Commitment item as Optional entry Click on Page down key in keyboard Keep Earmarked funds as Option entry Press enter and Save Purchase Documents Posting Purchase 100000 Goods from Vendor on 01.10.2009 Go to F-43 Post the documents - 34 UBAID ANCHALAN

MANAGERIAL ACCOUNTING

Document date 31-04-09 Type DR Company code TAST Posting date 31-04-09 Period 01 Currency INR Documents header text Purchases Postkey 31 Account - Vendor Account Amount 100000 Text - Purchase Postkey 40 Account Purchase Account Amount- * Text - + Business area TAHY Click on More fields botton Earmarked funds Select Earmarked fund Press enter key and Save Display Fund Commitment Status (FMZ3) Path: Sap easy access Accounting Controlling Cost elements Accounting Actual Posting Funds commitment Display Document Number Give Document number Press enter key Click on Consumption tab PROFIT CENTER ACCOUNTING This profit centre Accounting we are using for view the profit of a particular product wise, Product group wise, location wise etc. (If business area is not maintain in FI records/ Division wise etc) At the same time you prepare the profit and loss account and Balance sheet. Set controlling area (OKKS) Path: Spro Img Controlling Profit centre accounting Basic settings Set controlling area Controlling area TACO Click on save Maintain Controlling area settings (0KE5) Path: Same as up to basic settings Controlling area settings Maintain controlling area settings Standard hierarchy TAST_PF (any) Profit centre local currency type 20 (Controlling area currency) Profit centre local currency INR Press enter key and Save - 35 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Comeback Create Dummy profit Centre (KE59) Path: Spro Img Controlling Profit centre accounting Master data Profit centres Create Dummy profit centre Double click on create Dummy profit centre Dummy profit centre Dummy Click on basic data tab Name Dummy Description Dummy profit centre Person reasonable Ubaid Profit centre group TAST_PF Press enter key and Save Set Control parameters for Actual data (1KEF) Path: Same as up to Profit centre accounting Basic settings Controlling area settings Activate direct posting Set control parameters for actual data Click on new entries From year Line item 2009 Tick mark Press enter key and Save Come back wise Online transfer Tick mark

Maintain Plan Version (OKEQ) Path: Same as up to activate direct posting Plan version Maintain plan version Select 0 plan version Double click on settings for profit centre accounting folder Click on new entries Year Online Transfer Line items Exchange rate type 2009 Tick mark Tick mark M Press enter key and Save Come back three times Define number range for local Documents (GB02) Path: Same as up to Profit centre accounting Actual Posting Basic settings actual Define number range for local documents Click on maintain group tab (F6) - 36 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Activate click on Actual documents from direct posting check box Go to Intervals in Menubar Select Maintain Company code TAST (tick mark) Click on insert Intervals Year From number To number 2009 1 10000 Press enter key and Save Comeback Activate click planned documents from direct posting check box Go to intervals in Menubar Select maintain Company code TAST (Tick mark) Click on insert intervals Year From number To Number 2009 100001 200000 Press enter key and Save Come back three times Creation of Profit Centre (KE51) Path: Sap easy access Accounting Controlling Profit centre accounting Master data Profit centre Individual Processing Create Profit centre Steel (Product wise) Click on Master data tab Analysis period 01-04-09 To 31-12-9999 Name Steel Long text Steel Person responsible Ubaid Profit centre group TAST_PF Press enter key Click on Activate Field (No need for Save) Creation of Cost Centres For profit centre directly we post revenues values but its not possible to post cost values. If you want to post cost values for profit centres we create a cost centre in cost centre accounting through this cost centre we are posting cost. Go to KS01 Create cost centre Steel under Production departments Cost centre Steel Valid from 01-04-09 Click on Master data tab Name Steel Description Steel Person responsible Ubaid To 31-12-9999

- 37 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Cost centre Category 01 Hierarchy area Prod Business area THAY Currency INR Profit Centre Steel Press enter key and Save Revenue Elements Creation Go to FS00 Create the Sales of Steel account under the incomes with field status group G029 and Update the account in to CO. Cost elements category 11 Maintain automatic account assignments of Revenue elements (OKB9) There we assign what are the revenue we are posting to profit centre those elements we are assigning here. Path: Spro Img Controlling Profit centre accounting Actual posting Maintain automatic account assignments of revenue elements. Click on new entries Company code Cost elements TAST Sales of Steels a/c Select your Company code Double click on Details per business area Click on new entries Business area Profit centre TAHY Steel Press enter key and Save Comeback four times Account assignments details 2 (business area is mandatory)

Choose additional balance sheet and Profit and Loss account Path: Same Choose Accounts (3KEH) Click on new entries Account from Account to Profit centre 100001 300000 Steel Press enter key and Save Click on Profit centre Deter: Details tab Click on create field (F5) Description Profit centre balance sheet business area wise Source field GSBER Business area - 38 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Click on maintain rule values tab Click on yes Click ON/OF tab Account Number To Account Numb 100001 300000 Press enter key and Save Come back four times Account Group Creation (KDH1) Path: Sap easy access Accounting Controlling Profit centre accounting Master data Account group Create A) Acct Group PL-Items Click on Hierarchy field (F6) PL Items Profit and Loss items Click on Account tab PL Items Profit and Loss Items 300001 500000 Press enter key and Save Come back three times B) Acct Group BS_Items Click on Hierarchy Field (F6) BS_items Balance sheet items Click on Account tab BS-items 100001 - 300000 Press enter key and Save Comeback wise Define Plan values for PL items (7KE1) Path: Sap easy access Accounting Controlling Profit centre Accounting Planning Cost/ Revenues Change Version 0 From period - 12 To 12 Fiscal year 2009 Company code TAST Profit centre Steel Account Group PL items Select form based Press F5 for Overview the screen Account Numb Text 3000014 Sale of Steel a/c

Business area TAHY

Profit centre Steel

Reporting Currency 80000

- 39 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
400005 Salaries a/c 8000 Press enter key and Save Note: Like we can assign the plan value of every PL items Define Plan Value for Balance sheet items (7KE3) Path: Sap easy access Accounting Controlling Profit centre Accounting Planning Balance sheet accounts Change Version 0 From period - 12 To 12 Fiscal year 2009 Company code TAST Profit centre Steel Account Group BS_ items Select form based Press F5 for Overview the screen Account Numb Text Reporting Currency 100009 SBI Loan a/c 100000 200008 SBI Account a/c 100000 Press enter key and Save Note: Like we can assign the plan value of every BS items Actual Values Postings Revenue Postings Go to F-22 Post customer invoice with 100000 on 31-04-09 Customer Account To Sales of Steel a/c Document date 31-04-09 Type DR Posting date 31-04-09 Period 01 Documents header text Customer invoice posting Postkey 01 Account Customer Account Press enter key Amount 100000 Business area TAHY Text Customer invoice posting Post key 50 Account Sale of Steel account Press enter key Amount - * Text - + Business area TAHY Press enter key Simulate and Save Company code TAST Currency INR

- 40 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Cost posting Go to F-02 post the following Documents on 31-04-09 and Assign the Steel cost centre Salaries account 10000 To Cash 10000 Profit Centre PL Report (S_ALR_87013326) Path: Sap easy access Accounting Controlling Profit centre accounting Information systems Reports for Profit centre accounting Interactive Reporting Profit centre group: Plan/Actual/Variance From Period 12 To period 12 Fiscal year 2009 Plan version 0 Profit centre values Steel Profit + Loss Values Click on the arrow Mark in front of the P+L values Assign Single value column 300014 400005 Press F8 for execute Profit Centre wise Balance sheet (S_ALR_87013336) Path: Same as up to Interactive Reporting Profit centre group: Profit centre group: Balance sheet account Plan/Actual/Variance From Period 12 To period 12 Fiscal year 2009 Plan version 0 Profit Centre Value Steel Click on the (Arrow mark) in front of the Balance sheet value Assign 10009 20007 Press F8 for copy and press F8 for execute

PROFITABILITY ANALYSIS (CO-PA)

What is the functionality of a PA Module? PA Module is the most important when it comes to analysis the result of the organization.

- 41 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
In this module we basically collect the revenues from the sales order cost from production order, cost centre, internal orders and analysis there results. The interesting part about this module is that when it collecting the cost and revenue at the same times it also collect the characteristics associated with the cost and revenue Using PA Module we can find out the following things 1- Profit of a certain product 2- Profit of a certain products in certain region 3- Profit of a certain products in certain region by certain customers 4- Profit of certain products in certain region by certain sales person that mean we can view the products for the number of parameters at a time What is mean by operating concerns? The operating concern is the highest module in profitability analysis. The operating concern is assigned to controlling area with in the operating concerns all the transaction of profitability analysis are started. What are the characteristics and value fields? Value fields In the operating concern there are two things are basically defined a) Characteristics b) Value fields Characteristics Characteristics are nothing but those accepts on which we want to breakdown the profit classically surcharge, region, products, product z, sales person etc. Value fields Values fields are nothing but the values are associated with this characteristics. Once we defined the characteristics and values are updated in the table.. Once we have capture the all cost and revenues how do u analyses them? By analyses the report writes using the report writer functionality in SAP. Define operating concerns (KEA0) Path: Spro Img Controlling Profitability analysis Structure Define operating concern Maintain operating concerns

- 42 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Operating concern TAST (Any code) Click on Create fields Description Operating concerns for TAST Select costing-based Select Account-based Click on Attributes tab Operating concern currency INR Company code currency (Tick mark) Fiscal year variants V3 (Standards) Press enter key and Save. Click on Data structure tab Click on create filed under data structure tab Select KMVTNR Sales employee characteristics from transfer from column tab and click on left tab Click on value fields tab Select VV010 Revenue, VV140 Cost of goods sold value fields from copy from column select click on left arrow Now go to Data structure in Menubar Select Save Now again go to Data structure in Menubar select Active Comeback and click on yes Ignore the warning messages Comeback Define profitability segments characteristics (KEQ3) Path: Same Characteristics Description ARTNR Products KNDNR Customer Press enter key and Save Comeback Costbased+Acc Select radio botton Select radio botton

Assign controlling area to operating concerns (KEKK) Path: Spro Img Enterprise structure Assignments Controlling Assign controlling area to operating concerns Click on position Controlling area TACO Operating concern TAST Press enter key and Save Comeback (Tick mark)

- 43 UBAID ANCHALAN

MANAGERIAL ACCOUNTING

Determine number ranges for actual postings (KEN1) Path: Spro Img Controlling Profitability analysis Flow of actual values Initial steps Define number ranges for actual postings Operating concern TAST Click on maintain group Click on generated group check box (Tick mark) Go to interval in Menubar Maintain Here system generates some default number you can use this or create new Click on Save Comeback three times Maintain assignment of SD condition to CO-PA Value fields (KE4I) Path: Spro Img Controlling Profitability analysis Flow of actual values Transfer of billings documents Assign value fields Double click on Maintain assignments of SD Condition to CO-PA Value fields Click on new entries Condition type Value fields PR00 VV010 (500) VPRS (Cost of goods sold) VV140 (400) Press enter key and Save Comeback twise Maintain PA Transfer structure for direct postings (KEI2) Path: Same as up to flow of actual values Direct postings from FI/MM Maintain PA transfer structure for direct postings Select FI (Financial account to CO-PA) Double click on Assignments line folder Select 20 direct revenues from FI Double click on Source folder From 300001 400000 Double click on value fields folder Click on new entries Quanty / Value Fixed indi Value fields 1 Value fields 1 VV010 (Revenues) Press enter key and Save Double click on Assignments lines Select 10 Direct cost from FI Double click on source folder From 400001 500000 - 44 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Double click on value fields folder Click on new entries Quanty / Value Fixed indi 1 Value fields 1 Press enter key and Save Comeback four times

Value fields VV140

Activate profitability analysis (KEKE) Path: Same as up to flow of actual values Activate-profitability analysis Click on position Controlling area TACO (Tick mark) Activate status 4 Components active for both type of PA Press enter key and Save. Sales Order creation Creation of Sales Order Path: Sap easy access Logistics Sales and Distribution Sales Order Create (VA01) Order type OR Sales organization TASO Distribution channel DR Division ST Press enter key Sold to party Customer account PO Number 0001 (any) Reg delivery date 02-04-2009 Delivery plant TAPL Payments terms 0001 Item Material Order Qty 10 TAF8MC 1 Press two times enter key Select item 10 Select go to in Menu bar Item Condition Check the values and Tax Click on shipping tab Check the shipping point Note the sales order number 11800

- 45 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Goods Deliver Path: Same as up to Order Subsequent function Outbound delivery (VL0IN) Shipping point TASP Date Current date Order 11800 Press enter key Select 10 Click on Picking tab Assign 1 in the Picked quantity column Click on Post Goods issue tab Note the delivery documents number 80015001 Display of Documents Now Go to Outbound delivery in Menu bar Display Outbound delivery 80015001 Press enter key Click on Documents flow field (F7) Select Goods issue Click on display documents tab Click on Accounting Documents tab Double click on Accounting Documents Billing (VF01) Path: Same Documents Delivery documents number 80015001 Click on Save Note the billing documents number 90036105 Billing Documents update in FI (VF02) Go to VF02 for the change billing documents Billing documents 90036105 Click on flow field (Release to Ac) CO-PA Report Generation Path: Spro Img Controlling Profitability analysis Information system Report components Define forms Define forms for profitability report (KE34) Double click on create forms - 46 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Form TAST (Any) from from copa Click on create fields Select Operating concern currency (Tick mark) Double click on Row 1 Select value fields with characteristics (Tick mark) Value fields Revenue Click on confirm Double click on Row 2 Select value fields with characteristics (Tick mark) Value fields Cost of goods sold Click on confirm Double click on Row 3 Select Formula (Tick mark) Click on Y001 Revenue Click on Click onY002 Cost of goods sold Short Net profit Click on copy short text (Tick mark) Double click on column 1 Select characteristics (Tick mark) Select plant / Actual indicator Click on From Assign 0 (Actual data) Click on confirm Click on Save Now go to editing in Menubar General data selection General data selection Select record type, period / year Click on From To For record type select from column B F Period / year click on variable ON/OF Check box in from column Local variable 1 (Tick mark) Click on variable ON/OF Check box in to Column Local variable 2 (Tick mark) Click on confirm Now go to extras in Menubar Variable Variable definition Description 1 From period 2 - To period / Year (Tick mark) Press enter and Save Comeback wise Create Profitability Report - 47 UBAID ANCHALAN

MANAGERIAL ACCOUNTING

Path: Same Double click on create Report - TAST COPA Report Select Report with forms TAST Click on Create fields Select Customers, Distribution, Channel, Division, Plant, Sales organization, Product Click on Click on Output type tab Select Classical drilldown Select Available on selection screen Click on Save (Tick mark) Press F8 for execute From Period/ year - 01-2009 To Period/ Year 12-2009 Press F8 for execute

PRODUCT COSTINGS
Its product costing we are using for value at the inventory data flow from FICO, MM, PP Module Cost sheet format for finished Goods Raw-material Raw-material overhead rate Production cost Cost of manufacturing Add Selling and Administration expeCost of Goods sold ***** ***** ***** ***** ***** *****

Ho you calculate the production cost Production cost values Salaries Wages Rent 200000 500000 20000 720000

In our organization we have 100 machines all this machine we are using 24 hours in every period Calculate the machines hours - 48 UBAID ANCHALAN

MANAGERIAL ACCOUNTING

100*24*30 = 72000 hours Machine hour rate calculate Total Production cost Total Machine hour per month Machine Per hour rate = 720000 72000 10

Costing sheet for TAMFG01 (Finished Goods) TAMRW01 (Raw-material) 75 TAMRW02 100 Raw-material OH 175 Add 10% OH Raw-material 17.5 Add 10% Machine cost (5*10) 50 Cost of manufac value 242.5 Add Selling and Admin Expenses Creation of Secondary cost elements (KA06) 1- Overhead cost elements 2- Activity cost elements Path: Sap easy access Accounting Controlling Cost element accounting Master data Cost elements Individual processing Create secondary Cost elements 1100000 (Any) Valid from 01-04-2009 to 31-12-9999 Click on Master data tab Name Raw-material OH Description Raw-material OH Cost element category 41 (OH rate) Press enter key and Save Cost elements 1200000 (Any) Valid from 01-04-2009 to 31-12-9999 Click on Master data tab Name Activity cost elements Description Activity cost elements Cost elements category 43 (Internal allocation) Press enter key and Save Creation of Activity types (KL01) (For Machine hours) Path: Sap easy access Accounting Cost centre accounting Master data Activity type Individual processing Create

- 49 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Activity type MAC Valid from 01-04-2009 to 31-12-9999 Click on Master data tab Name Machine hours Description Machine hours Activity unit H (Hours) CCTR-Category - * (For all cost elements) ATYP Category 1 (Manual entry, Manual allocation) Allocation Cost elements 1200000 (Activity cost elements) Press enter key and Save Creation of Cost centre (KS01) Go to KS01 Create the following Cost centre under Production departments Department G Department H Define Overhead keys (OKOG) Path: Spro Img Controlling Product cost controlling Product cost planning Basic settings for material settings Overhead Define overhead keys Click on new entries Overheads Description OHA RM overhead key Press enter key and Save Comeback Define Overhead Groups (OKZ2) Path: Same Click on new entries Valuation area OH Group TAPL (Plant) OHG Press enter key and Save Comeback wise Define Calculation base (KZB2) Path: Same as up to Overhead Costing sheet components Define calculation bases Click on new entries Base Name RA Raw-material Press enter key and Save - 50 UBAID ANCHALAN OH key OHA Name of OH Group RM OH Group

MANAGERIAL ACCOUNTING
Now Select RA Double click on Details folder Controlling area TACO Click on Save Click on new entries From cost elements To cost elements 4000001 4000100 Press enter key and Save Comeback three times Click on new entries Base Name RB Production cost Press enter key and Save Now Select RB Double click on Details folder Controlling area TACO Click on Save Click on new entries From cost elements 4000101 1200000 Press enter key and Save Comeback four times To cost elements 4000200 1200000

Define Percentage Overhead rate Path: Same Click on new entries Overhead rate Name Dependency RC Raw-material OH rate D010 (OH Type/OH Key) Press enter key and Save Now select RC Double click on Details folder (tick mark) Click on new entries Valid from To Co area OH Type OH Key Percentage 01-04-2009 31-12-2010 TACO 2 (Plan) OHA 15 01-04-2009 31-12-2010 TACO 1 (Actu) OHA 10 Press enter key and Save Comeback four times Define Credits Path: Same

- 51 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Click on new entries Credits Name RD RM Credit key Press enter key Now select RD Double click on Details Controlling area TACO Click on Save Click on new entries Valid to Cost elem Fix % 31-03-2010 1100000 100 Press enter key and Save Comeback four times Define costing sheet (KZS2) Path: Same as up to Overhead Define costing sheet Click on new entries Cost sheet Description COST (Any) Cost sheet for TAST Press enter key and Save Double click on Costing sheet rows folder Click on new entries Row Base Overhead Description From To row 10 RA 20 RC 10 10 30 RB 40 Cost of Manuf 10 30 Press enter key and Save Comeback four times Assign Costing sheet to costing variants (OKKN) Path: Spro Img Controlling Product cost controlling Product cost planning Material cost estimates with quantity structure Defining costing variants Select PPC 1 Structured cost Est (mat) Click on Details field Click on valuation variants tab Click on Create field Click on new entries In plant TAPL Press enter key and Save Comeback - 52 UBAID ANCHALAN

Cost centre Dep H

Credit RD

MANAGERIAL ACCOUNTING
Select 001 TAPL Valuation variants Click on Details botton Click on Overhead tab Costing sheet - COST Costing sheet for TAST Costing sheet COST Costing sheet for TAST Click on Save Comeback four times Define Cost components structure (OKTZ) Path: Same as up to Product cost planning Basic settings for Material costing Define cost components structure Select 01 Cost components structure Double click on Cost components with Attributes folder Select 01 - 10 - Raw-material Double click Assignment : Cost components folder Click on new entries Cost comp structure Chrt ac From cost To cost 01 CHAC 4000001 400099 Press enter key and Save Double click on Cost components with Attributes folder Select 01 - 80 Material Overhead Double click Assignment : Cost components folder Click on new entries Cost comp structure Chrt ac From cost To cost 01 CHAC 1100000 1100000 Press enter key and Save Double click on Cost components with Attributes folder Select 01 - 50 - Production machine Double click Assignment : Cost components folder Click on new entries Cost comp structure Chrt ac From cost To cost 01 CHAC 4000100 4000199 01 CHAC 1200000 1200000 Press enter key and Save Double click on Cost Components structure folder Click on Active check box in front of 01 (Tick mark) Click on Save Creation of person responsible for work center (OP10) Path: Spro Img Production Basic data Work centre General Data Determine person responsible Cost Comp 10

Cost Comp 80

Cost Comp 50 50

- 53 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Click on new entries Plant Person responsible TAPL UBAID Press enter key and Save Comeback wise

Person responsible for work centre UBAID

Define MRP Controller (OMD0) (Material requirement planning) Path: Same as up to Production Material requirements planning Master data Define MRP Controllers Click on new entries Plant TAPL MRP Controller B B (Any) Press enter key and Save Define Floats (OMDC) Path: Same as up to material requirements planning Planning Scheduling and Capacity parameters Define floats Click on new entries Plant Margin Opening perce TAPL TAMR (Any) 2 Press enter key and Save Comeback wise Define Production Scheduler (OPJ9) Path: Same as up to Production Shop floor control Master data Define Production scheduler Click on new entries Plant Produc scheduler TAPL C (Any) Press enter and Save Comeback wise Cost Centre Planning (KP06) Go to KP06 Version 0 From Period 2 Fiscal year 2009 To Period 2 Description C FI Before 2 FI After 2 Ref-Per 2

- 54 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Cost centre - Dep G Cost elements Salary Account Select form based Press F5 Plan fixed cost 720000 Press Save Planning of Machine hours (KP26) Path: Sap easy access Accounting Controlling Cost centre accounting Planning Activity output/price Change (KP26) Version 0 From Period 2 To Period 2 Fiscal year 2009 Act type - MAC Select form based Press F5 Planned Activity 72000 Press enter and Save Machine hour rate Calculation (KSPI) Path: Same as up to Planning Allocation Price calculation Cost centre group Prod Version 0 From period 2 to - 2 Fiscal year 2009 Select Test Run Select Detail list Press F8 for execute and Save Go back Deactivate the Test run check box and again Press F8 for execute Click on Save Material Creation (Raw-material) Go to MM01 Create 2 Material TARM01, TARM02 Material TARM01 Industry sector Mechanical eng Material type ROH - 55 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Select views tab Select Basic data 1, Purchasing, General plan data / Storage 1, Accounting 1 Organizational level tab Plant TAPL Storage location HYD (Tick mark) Material TARM02 Raw-material Base unit Kg Material Group ST Click on Purchasing tab Purchasing group TAPR Click on Accounting 1 tab Valuation class 3000 Price control key V (Moving price) Moving Price 100 Press enter and Save. New Material Creation (Finished Goods) Material TAFG01 Industry sector Mechanical eng Material type FERT Select views tab Select Basic data1, MRP1, MRP2, Work scheduling, General plan data / Storage1, Accounting1, Costing1. Organizational level tab Material Finished Products Base unit Kg Material Group ST Click on MRP1 tab MRP Type PD (Standard) MRP Controller - B Lot size Ex Click on MRP2 tab Schedule margin key TMR Click on Work Scheduling tab Production scheduler C Click on Accounting1 tab Valuation class 7920 Standard price 300 Click on Costing1 tab Overhead group OHG Click on Save Availability check KP (No check) Again Save it.

- 56 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Creation of bill Material (CS01) (BOM) Path: Sap easy access Logistics Production Master data Bill of Material Bill of Material Material BOM Create Material TAFG01 Plant TAPL BOM Usage 1 Press enter Components Qty TARW01 1 TARW02 1 Press enter key and Save Creation of work centre (CR01) Path: Same as up to Master data Work centre Work centre Create Work centre Dep G Work centre category 0001 (Machine) Click on Basic data tab Work centre Department G Press enter Person responsible UBAID Usage 009 (All task) Standard valuation Key SAP1 (Normal Production) Click on Costing tab Start date 01-04-2009 Cost centre Dep G Activity Description Activity type Activity unit Formulas Machine MAC H (Hours) SAP002 (Machine time) Press enter and Save Creation of Routings (CA01) Path: Same as up to Master data Routing Routings Standard routings Create Material TAFG02 Plant TAPL Press enter key Usage 1 Status 4 Click on operation tab Work centre Control key Dep G PP01 (In house Production) Select this line item - 57 UBAID ANCHALAN

MANAGERIAL ACCOUNTING
Double click on 0010 Machines Press enter and Save Standard value 5 Unit H

Creation of Cost estimates with Quantity structure (CK11N) Path: Sap easy access Accounting Controlling Product cost controlling Product cost planning Material costing Cost estimates with quantity structure Create Material TAFG02 Plant TAPL Costing Data Costing variants PPC1 Costing Version 1 Click on Dates tab Costing date from Current Date Costing Date to - 31-12-9999 Quantity structure date Current Date Valuation date Current date Press enter key

- 58 UBAID ANCHALAN