CONFIGURATION DOCUMENT (FI) ON S/4 HANA_1809

Created By: ASHISH AGGARWAL

What is Controlling (CO)?

Controlling means coordination, monitoring, and optimization of all the processes in an organization.

SAP Controlling (CO) module helps in planning, thereby providing relevant information to decision
maker’s based on comparison of actual data with planned data and helps to understand where &
how resources of organization is being utilised.

So, it is an internal tool for management accounting and not restricted to any legal requirement as in
case of SAP FI.

In SAP S/4 HANA, CO module has been integrated with FI module to help business in ease of doing
business and better recording/controlling of transactions of business.
I. Enterprise Structure

1. Maintain Controlling Area

Controlling area is created for the purpose of cost accounting and is highest entity in CO
module same as in case of Company Code for FI.

Path: Controlling----- General Controlling----- Organization----- Maintain Controlling Area

1.1. Basic Data

Note: In currency setting, you can assign currency other than company code currency.

Note: Fiscal year variant assigned to company code and controlling area should match.

Note: When you are creating a common controlling area, it should have the following
parameters:
a. All the company codes should share the same chart of account.
b. They should share the same fiscal year variant.

1.2. Activate components

Here you activate the different components of controlling as per requirement

1.3. Assign company Code

2. Maintain Number Ranges for Controlling Documents
Here you create the number range for each business transactions in controlling.

Path: Controlling----- General Controlling----- Organization----- Maintain Number Ranges for

Controlling Documents

2.1. Insert your Controlling area.

2.2. Create the Group to assign the business transaction relevant for controlling area.
 2.3. Create Group and number range

2.4. Assign the business transaction to the group.

Put your cursor on transaction and click on above highlighted button.

3. Maintain Version
Here you create version to have plan and actual data independently.

Path: Controlling----- General Controlling----- Organization----- Maintain Versions

4. Define Ledger for CO Version
Here you assign the ledger group with version created in previous step

Path: Controlling----- General Controlling----- Organization----- Define Ledger for CO Version

II. Cost Element Accounting

It takes care of integration of FI GL accounts with CO.
An enterprise gets all the information on what costs are being incurred within an
enterprise.

Cost element are divided into 2 categories:

a. Primary Cost/Revenue Element-

When cost is recorded in both FI and CO through integration, then cost element is
called primary.
Primary cost elements are like material costs, personnel costs, energy costs etc
where a corresponding GL account exists in FI.

b. Secondary Cost Element-

When cost is recorded only in CO, then the cost element is called secondary.

Secondary cost elements are like production costs, material overheads, production
overheads, they can be created and administered in only CO. These are used in
internal cost allocation, overhead calculation, settlement transactions. It does not
flow to FI.

Note: In SAP ECC, the primary and secondary cost element were required to be
created separately through transaction code- KA01/KA06.
However now in S/4 HANA, primary and secondary cost element are created only
while creating the GL account in FI through transaction code-FS00 only.

5. Creation of GL with cost element.

It is a part of GL account creation only.

T-Code: FS00
As shown in above screenshot, option of creation of cost element is provided with GL
creation itself by providing the dropdown option of Primary/Secondary cost under G/L
account type.

As shown in above screenshot, Account setting in Controlling area under Control data
becomes visible in case select the primary/secondary cost as G/L account type.

Here you need to select the cost element category as shown above from provided option in
case of Primary Cost.
And for secondary cost, the screenshot are given below.
6. Cost Element group.

Used to group certain cost elements (primary or secondary) under one or another group for
the purpose of planning, allocation etc.

T-code: KAH1

Note: T-code-KAH2/KAH3 to change/display cost element group.

III. Cost Centre Accounting

This helps the organisation to get the information on where the cost has been actually
incurred.
So, it supports in decision making to check/control the costs of individual functional
areas (cost centres).

7. Cost Centre standard Hierarchy

This is defined along with controlling area and you can refer the point 1 mentioned above.

Note: To change/display use T-code OKEON/OKENN

8. Cost Centre Group
Cost centre of similar category are grouped together to facilitate cost centre planning,
allocation of cost, assessment, information system to generate the reports etc.

T-Code: KSH1/KSH2/KSH3 to create/change/display.

9. Cost Centre.

These are the places where cost or revenue are incurred. These are designed based on
functional requirements, activities provided and area of responsibility.

T-code: KS01/KS02/KS03 to create/change/display.

 Note: Fill the above details and save. Also, you can assign each cost centre with Business
area and profit centre.

10. Assign the Cost Centre and Cost centre group to Standard Hierarchy.
11. Activity Type
In a cost centre, different activities are being carried out like machine, labour, packaging,
furnishing etc.

Activity type helps to allocate internal activities cost incurred by a cost centre.

T-Code: KL01/KL02/KL03 to create/change/display.

12. Activity type group

T-Code: KLH1/KLH2/KLH3 for create/Change/display.

13. Statistical Key Figure
SAP statistical key figures are statistically measurable values which can be applied to cost
centre, profit centre, internal order or business process. SAP statistical key figures are also
used for analysis purposes like calculation of rent cost per each employee of a company.

Statistical key figures can be used in allocation as well as for reporting purposes.

T-Code: KK01/KK02/KK03 to create/change/display.

Statistical key figures are flexible to use two categories namely fixed value and total value.
Fixed values are used where the values do not change very often like number of employees,
area, etc. Whereas total value is used when the value is expected to change or not constant
for a very long time such electricity or water usage.
IV. Profit Centre Accounting
SAP profit centre is an organizational unit in management accounting, and it shows the
operating results of the organization from the perspective of management for the
purposes of internal controlling.
SAP profit centre enable us to decentralize various units for reporting purposes and they
are treated as different companies in an organization. The calculation of key figures such
as Return on Investments (ROI), cash flow, etc. in management accounting is possible
through profit centres.

14. Standard Hierarchy for Profit Centre.

It is similar to hierarchy created for cost centre.

Path: Controlling----- Profit Center Accounting----- Basic Settings----- Controlling Area

Settings-----Maintain Controlling Area Settings

Note: To change/display use T-code KCH5N/KCH6N

15. Profit Center Group

T-Code: KCH1/KCH2/KCH3 to create/change/display

16. Profit Center

T-Code: KE51/KE52/KE53 to create/change/display