Saudi Arabian Airlines

PROFIT CENTRE ACCOUNTING CO_02

USER TRAINING MANUAL

2008 Version: 01

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Profit Centre Accounting

Contents
PROFIT CENTRE ACCOUNTING.......................................................................................2 1. 2. COURSE INTRODUCTION ......................................................................................3 CURRICULUM ..........................................................................................................4 2.1 2.2 3. 4. Pre Requisite Training ....................................................................................4 Controlling Course Curriculum ........................................................................4

CONTROLLING PROCESS OVERVIEW .................................................................5 BUSINESS IMPACTS ...............................................................................................6 4.1 Key Impacts ........................................................................................................6 4.2 Glossary..............................................................................................................6 4.3 Post Go Live Support Process ............................................................................6

5. 5.1

PRACTICAL COMPONENT......................................................................................7 UNIT 1: PROFIT CENTER MASTER DATA ..........................................................8 Exercise 1: Process for Creation of Profit Center KE51 .........................................9 Exercise 2: Process for Change of a Profit Center KE52 .....................................18 Exercise 3: Process for Display a Profit Center KE53..........................................21 Unit Summary: Profit Center Master Data............................................................23

5.2

UNIT 2: PROFIT CENTER GROUP MASTER DATA ..........................................24

EXERCISE 1: PROCESS FOR CREATION OF A PROFIT CENTER GROUP KCH1 ...25 Exercise 2: Process for Change a Profit Center Group KCH2 .............................30 Exercise 3: Process for Display a Profit Center Group KCH3 ..............................34 Unit Summary: Profit Center Group Master Data .................................................36

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1. Course Introduction
Controlling (CO) offers information to decision makers for planning, measuring and monitoring enterprise's operations and performance. It represents the internal accounting view of an organization. All data relevant to cost and revenue flows are created from various sources such as Financial Accounting (FI), Materials Management (MM) and Sales and Distribution (SD). The cost and revenue flows will update FI and simultaneously create equivalent postings into CO. As part of this process, the system assigns the costs and revenues to different CO account assignment objects like cost centers, orders, or profitability segments. The relevant accounts in FI are managed in CO as cost elements or revenue elements.

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2. Curriculum
2.1 Pre Requisite Training Course SAP 01 Accounting and Finance Content Sap Basics and Sap Navigation Training Managerial and Financial Accounting

2.2 Controlling Course Curriculum CO_01 CO_02 Overhead Cost Controlling Profit Canter Accounting

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3. Controlling Process Overview

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4. Business Impacts
4.1 Key Impacts

Business Process Profit Center Accounting

Impact Improved to provide visibility of an organizations profit and losses by profit center.

4.2 Glossary Terminology SAP Meaning Software being used for business processes : System Application Products

4.3 Post Go Live Support Process Contact Telephone: 4000 Email: ithelpdesk@saudiairlines.com.sa LAN : http://ahd.sv.net

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5. Practical Component
The following section will focus on exercises that will learn how to apply the SAP Profit Center Process to your Job. There are a series of exercises relating to Business Scenarios, with detailed instructions and notes. If at anytime you have any questions, please feel free to stop the Trainer and ask them questions.

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5.1 Unit 1: Profit Center Master Data

Contents: Exercise 1: Process for Creation of a Profit Center Exercise 2: Process for Change of a Profit Center Exercise 3: Process for Display of a Profit Center

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Exercise 1: Process for Creation of Profit Center KE51

The Enterprise contains Profit Centers at the lowest organizational unit that requires a full Income Statement. All actual and plan revenues are managed at the Profit Center level. Actual and plan costs are managed at the Cost Center level, and, through the assignment of one or many Cost Centers to a Profit Center, an income statement can be produced. Use Profit Center assessments or distributions to allocate actual and plan revenues between Profit Centers. Costs may be allocated between Profit Centers; however, this may be considered a top side adjustment because an allocation between Profit Centers will not be reflected in the assigned Cost Centers. Plan revenues in Profit Centres. Again, plan costs can be reported here if a Cost Center is assigned. Unlike Cost Centers, a Profit Center is active for all Company Codes assigned to a Controlling Area.

Input Required Fields Profit center Valid to and from Name Person in charge Profit center group

Field Value/Comments Key identifying the Profit Center. Unique within a Controlling Area Text Text Hierarchy Area

Output - Results Status bar message:

Comments Profit Center XX has been created.

Tips and Tricks Use the Copy from functionality described below to reduce repetitive field maintenance.

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1. To create a Profit Center, enter transaction code KE51 in the command box, or follow the menu path given below from the initial SAP Easy Access screen, double clicking on the last item: Accounting Controlling Profit Center Accounting Master Data Profit Center Individual Processing Create 2. On screen Create Profit Center, enter information in the fields as specified in the table below:

Press Enter Master Data

or

Click

on

Field Name Profit center

Description Key that uniquely identifies this Profit Center in the Controlling Area Source Profit Center master record to be copied.

R/O/ C R

User Action and Values

Comments Establish a Profit Center naming convention.

Copy from C Profit center Enter the name of the profit center master record that will serve as a model for the new profit center master record.

Controlling Area

Uniquely identifies a C controlling area.

(Note: On above table, in column R/O/C; R = Required, O = Optional, C = Conditional)

3. Click on the ENTER or Press Master Data Icon.

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4. On screen Create Profit Center: Basic Data Tab, enter information in the fields as specified in the table below:

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5. On screen Create Profit Center: Company Code Tab, select the companies in the fields as specified in the table below:

Select Company Code Tab

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6. On screen Create Profit Center: Address Tab, enter information in the fields as specified in the table below:

Select Address Tab

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7. On screen Create Profit Center: Communication Tab, enter information in the fields as specified in the table below:

Select Communication Tab

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8. On screen Create Profit Center: History Tab, view the information in the fields as specified in the table below:

Select History Tab

Field Name Basic Data Tab Profit Center

Description

R/O/ C

User Action and Values

Comments

Defaulted by the system from the initial screen. Defaulted by the system.

Status Examination Period To

R Dates indicating as R of when an entry is valid. Text description of the new profit center. R

Name

This field is displayed in the Profit Center Standard Hierarchy.

Description

Long text description of the new profit center.

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Basic Data Tab Person in charge Department Profit center group Indicators Tab Dummy Profit Center

Profit Center Manager Department Hierarchy Area

R O R

Text Text Enter an end node from the Profit Center Standard Hierarchy. .

This flag determines O whether the profit center is defined as the dummy profit center for the controlling area. Indicator O

To activate the field, double click on it. The pop window will prompt you to activate/deactivate the flag. Activate / Deactivate this indicator using one mouse click to block / unblock the Profit center from future postings.

Lock indicator

Company Codes Tab Assigned

Check the company codes for which the profit center can receive postings

Check box

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Click on Save Button

9. To save profit center in inactive status, click on SAVE button. The message "Profit Center XXXX saved in inactive status" will appear. 10. To save profit center in active status, click the Activate button or Shift + F1. The message "Profit Center XXXX has been created" will appear on the lowest pane of the screen.

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Exercise 2: Process for Change of a Profit Center KE52

Input Required Fields Profit center Valid from (Valid) to Name Person in charge Profit center group Field Value/Comments Key identifying the Profit Center. Unique within a Controlling Area

Text Text Hierarchy Area

Output - Results Status bar message:

Comments

1. To change a Profit Center, enter transaction code KE52 in the command box, or follow the menu path given below from the initial SAP Easy Access screen, double clicking on the last item: Accounting Controlling Profit Center Accounting Master Data Profit Center Individual ProcessingChange 2. On screen Change Profit Center, enter information in the fields as specified in the table below:

Field Name Profit center

Description Key that uniquely identifies this Profit Center in the Controlling Area

R/O/ C R

User Action and Values

Comments Establish a Profit Center naming convention.

(Note: On above table, in column R/O/C; R = Required, O = Optional, C = Conditional)

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3. Click on ENTER or MASTER DATA button. 4. On screen Change Profit Center, change information in the fields as specified in the table below:

Field Name Basic Data Tab Profit Center Status

Examination Period To

Description

R/O/ C

User Action and Values

Comments

Defaulted by the system from the initial screen. Defaulted by the system.

R Dates indicating as of R when an entry is valid.

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Name

Text description of the new profit center.

This field is displayed in the Profit Center Standard Hierarchy.

Description Basic Data Person in charge Departmen t Profit center group Indicators Tab Dummy Profit Center

Long text description of the new profit center. Profit Center Manager Department

R O

Text Text .

Hierarchy Area

Enter an end node from the Profit Center Standard Hierarchy.

This flag determines O whether the profit center is defined as the dummy profit center for the controlling area. Indicator O

To activate the field, double click on it. The pop window will prompt you to activate/deactivate the flag. Activate / Deactivate this indicator using one mouse click to block / unblock the Profit center from future postings.

Lock indicator

Company Codes Tab Assigned

Check the company codes for which the profit center can receive postings

Check box

5. To save changes in a profit center in inactive status click on SAVE button. The message "Profit Center XXXX saved in inactive status" will appear. 6. To save changes in a profit center in active status, click the Activate button or Shift + F1. The message "Profit Center XXXX has been created" will appear on the lowest pane of the screen.

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Exercise 3: Process for Display a Profit Center KE53

Input Required Fields Profit center

Field Value/Comments Key identifying the Profit Center. Unique within a Controlling Area

Output - Results

Comments Display of profit center master data.

1. To display a Profit Center, enter transaction code KE53 in the command box, or follow the menu path given below from the initial SAP Easy Access screen, double clicking on the last item: Accounting Controlling Profit Center Accounting Master Data Profit Center Individual ProcessingDisplay 2. On screen Display Profit Center, enter information in the fields as specified in the table below:

Field Name Profit center

Description Key that uniquely identifies this Profit Center in the Controlling Area

R/O/ C R

User Action and Values

Comments Establish a Profit Center naming convention.

(Note: On above table, in column R/O/C; R = Required, O = Optional, C = Conditional)

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3. On screen Display Profit Center, view the information in the fields as specified in the table below:

Press Green Arrow to Exit

4. Click the green back arrow (F3) or the yellow up arrow (Shift-F3) to exit the display screen after you have completed your review of the profit center master data.

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Unit Summary: Profit Center Master Data

After completing this unit, you should be able to Create, Change and Display a Profit Center

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5.2 Unit 2: Profit Center Group Master Data

Contents: Exercise 1: Process for Creation of a Profit Center Group Exercise 2: Process for Change of a Profit Center Group Exercise 3: Process for Display of a Profit Center Group

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Exercise 1: Process for Creation of a Profit Center Group KCH1

The standard hierarchy is a profit center group, or tree structure, which contains all the profit centers in one controlling area. The standard hierarchy usually corresponds to the organizational structure used in Profit Center Accounting. The standard hierarchy consists of two types of nodes: A profit center area is an end node in the structure, which is not the top node. You can only assign your profit centers to the end nodes of the structure. A summarization area groups together profit center data at a higher level. Each node of the standard hierarchy, which is not an end node, is a summarization area. You cannot assign profit centers directly to a summarization area. It merely groups together the profit center areas and summarization areas which lie below it.

In addition to the standard hierarchy for your controlling area, you can also create alternative profit center hierarchies -- so-called "profit center groups" -- for use in the information system, allocations and planning. In contrast to the standard hierarchy, these profit center groups do not have to contain all the profit centers in the controlling area. On the contrary, profit center groups let you select only certain profit centers and reorganize them to allow you more flexibility.

Input Required Fields Profit center group

Field Value/Comments Key identifying a profit center group. Unique in a controlling area.

Output - Results Structure saved.

Comments

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1. To create a Profit Center Group, enter transaction code KCH1 in the command box, or follow the menu path given below from the initial SAP Easy Access screen, double clicking on the last item: Accounting Controlling Profit Center Accounting Master Data Profit Center GroupCreate Accounting Controlling Profit Center Accounting Master Data Standard HierarchyCreate 2. On screen Create Profit Center Group, Initial Screen, enter information in the fields as specified in the table below:

Hit on Hierarchy Icon or Press Enter to proceed

Field Name

Description

Profit center The name of a node group in hierarchically structured groups. The group name may be a maximum of 10 characters in length. Reference Profit center The name of a node O group in hierarchically structured groups that you want to use as a model for creating a new one. Controlling area

R/O/ C R

User Action and Values Enter the name of the node that you wish to change

Comments The group name must be unique

O
(Note: On above table, in column R/O/C; R = Required, O = Optional, C = Conditional)

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3. Press ENTER or Press Hierarchy Icon to proceed. 4. On screen Create Profit center group: Structure, add a new node to a top node or sub node by entering information in the fields as specified in the table below:

Field Name Set ID

Description The group name.

Short text 4.1. 4.2. 4.3. 4.4. 4.5.

Text.

R/O/ User Action and Values C R Enter a unique name here or select an existing group from the list of possible entries. O

Comments

Mark the top node or sub node (source node) that will be directly Superior to the new node. Click on the Lower level button to add a sub node that will be inferior to the source node. Enter the name of the new node in the Set ID field or select a group from the possible entries list. Enter a short text description of the new node in the Short text field. Save the changes by clicking on the Save button. The message Changes were saved should appear in the Status Bar.

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5. On screen Create Profit center group: Structure, add profit centers to an end node by entering information in the fields as specified in the table below:

Field Name From Value To value

Description A profit center

R/O/ C R

User Action and Values Enter a profit center value or the start interval of a range of profit centers. Enter the end interval of a range of profit centers

Comments

A profit center

5.1.

5.2. 5.3.

5.4. 5.5.

Mark the end node that the profit centers will be assigned to using one mouse click. Profit centers cannot be assigned to nodes that are not end nodes. Click on the insert values button. If a single profit center, enter the name (value) within the value field or select the profit center from the list of possible entries. If a range of profit centers, enter the start interval here. Conditional enter the end interval of a range of profit centers here. Save the changes by clicking on the Save button. The message Changes were saved should appear in the Status Bar.

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6. On screen Create Profit center group: Structure, revoke the relationship of a sub node to its superior node: 6.1. 6.2. 6.3. 6.4. Mark the target sub node using one mouse click. Select the target node by clicking on the Select button. Revoke its relationship by clicking on the Revoke relationship (Remove) button or press F5. Save the changes by clicking on the Save button. The message Changes were saved should appear in the Status Bar.

7. On screen Create Profit center group: Structure, revoke the relationship of a profit center value or interval to its end node: 7.1. 7.2. 7.3. 7.4. Mark the target value or interval using one mouse click. Select the value or interval by clicking on the Select button. Revoke its relationship by clicking on the Revoke relationship (Remove) button or press F5. Save the changes by clicking on the Save button. The message Changes were saved should appear in the Status Bar.

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Exercise 2: Process for Change a Profit Center Group KCH2

The standard hierarchy is a profit center group, or tree structure, which contains all the profit centers in one controlling area. The standard hierarchy usually corresponds to the organizational structure used in Profit Center Accounting.

Input Required Fields Profit center group

Field Value/Comments Key identifying a profit center group. Unique in a controlling area.

Output - Results Structure saved.

Comments

1. To change a Profit Center Group, enter transaction code KCH2 in the command box, or follow the menu path given below from the initial SAP Easy Access screen, double clicking on the last item: Accounting>Enterprise controlling>Profit center accounting>Master data>Profit center group>Change 2. On screen Change Profit center group: Initial Screen, enter information in the fields as specified in the table below:

Field Description R/O/C User Action and Values Comments Name Profit A hierarchy node R Enter the name of the node center that you wish to change group (Note: On above table, in column R/O/C; R = Required, O = Optional, C = Conditional) 3. Press ENTER or Press Hierarchy Icon to proceed

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4. On screen Change Profit center group: Structure, add a new node to a top node or sub node by entering information in the fields as specified in the table below:

Field Name Set ID

Description The group name.

R/O/ C R

User Action and Values Enter a unique name here or select an existing group from the list of possible entries.

Comments

Short text

Text.

4.1. Mark the top node or sub node (source node) that will be directly superior to the new node. 4.2. Click on the Lower level button to add a sub node that will be inferior to the source node. 4.3. Enter the name of the new node in the Set ID field or select a group from the possible entries list. 4.4. Enter a short text description of the new node in the Short text field. 4.5. Save the changes by clicking on the Save button. The message Changes were saved should appear in the Status Bar.

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5. On screen Change Profit center group: Structure, add profit centers to an end node by entering information in the fields as specified in the table below:

Field Name From Value

Description A profit center

R/O/ C R

To value

A profit center

User Action and Values Enter a profit center value or the start interval of a range of profit centers. Enter the end interval of a range of profit centers

Comments

5.1. Mark the end node that the profit centers will be assigned to using one mouse click. Profit centers cannot be assigned to nodes that are not end nodes. 5.2. Click on the Profit Center button. 5.3. If a single profit center, enter its name (value) within the value field or select the profit center from the list of possible entries. If a range of profit centers, enter the start interval here. 5.4. Conditionalenter the end interval of a range of profit centers here. 5.5. Save the changes by clicking on the Save button. The message Changes were saved should appear in the Status Bar.

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6. On screen Change Profit center group: Structure, revoke the relationship of a sub node to its superior node: 6.1. 6.2. 6.3. 6.4. Mark the target sub node using one mouse click. Select the target node by clicking on the Select button. Revoke its relationship by clicking on the Revoke relationship button. Save the changes by clicking on the Save button. The message Changes were saved should appear in the Status Bar.

7. On screen Change Profit center group: Structure, revoke the relationship of a profit center value or interval to its end node: 7.1. 7.2. 7.3. 7.4. Mark the target value or interval using one mouse click. Select the value or interval by clicking on the Select button. Revoke its relationship by clicking on the Revoke relationship button. Save the changes by clicking on the Save button. The message Changes were saved should appear in the Status Bar.

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Exercise 3: Process for Display a Profit Center Group KCH3

The standard hierarchy is a profit center group, or tree structure, which contains all the profit centers in one controlling area. The standard hierarchy usually corresponds to the organizational structure used in Profit Center Accounting. Input Required Fields Profit center group Field Value/Comments Key identifying a profit center group. Unique in a controlling area.

Output - Results Structure displayed.

Comments

1. To display a Profit Center Group, enter transaction code KCH3 in the command box, or follow the menu path given below from the initial SAP Easy Access screen, double clicking on the last item: Accounting>Enterprise controlling>Profit center accounting>Master data>Profit center group>Display 2. On screen Display Profit center group: Initial Screen, enter information in the fields as specified in the table below:

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Field Name Profit center group

Description A hierarchy node

R/O/ C R

User Action and Values Enter the name of the node that you wish to change

Comments

(Note: On above table, in column R/O/C; R = Required, O = Optional, C = Conditional)

3. Process End

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Unit Summary: Profit Center Group Master Data

After completing this unit, you should be able to Create, Change and Display a Profit Center Group

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