BLUE PRINT - Controlling Configuration

SAP ECC 6.
_____________________________________________________
__
Configuration Document
SAP ECC 6.0
For
Shasun Chemicals and Drugs Limited
_____________________________________________________
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Dated: April, 2008
DOCUMENT CONTROL
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SAP ECC 6.0
Document Title: Configuration Document for SAP ECC 6.0
Document ID : SCDL/IMG/SAP/2008-04-01
Purpose: Configuration Document
File Name: IMG-CO-2008-04-01
Security Company Confidential

Classification:
Author:
Approved by:
Distribution List: Shasun Chemicals and Drugs Limited, Chennai
SpectraSoft Technologies Ltd, Chennai
Version No Date of Release Description

1.0 April , 2008 Configuration
VERSION HISTORY DETAILS
Ver. No. / Brief Change Detailed Change Description

Date Description
1.0
Original Original Document
2008-04-01
© 2004 SpectraSoft Technologies Ltd.
The contents of this document are the property of
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SAP ECC 6.0
SpectraSoft Technologies Ltd and are intended for the
sole purpose of consumption by Shasun Chemicals
and Drugs Limited, Chennai, Reproduction,
distribution, and modification of this document or any
parts thereof, in any form, without the written
permission of SpectraSoft Technologies Ltd are not
permitted. Use of this document or parts thereof for
purposes other than those agreed by SpectraSoft
Technologies Ltd is not permitted.
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SAP ECC 6.0
Controlling
Configuration Document
SSTL
1,6th Floor, Crow Court
#128, Cathedral Road
Chennai 600 086
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SAP ECC 6.0
Content
1. Controlling: Configuration Guide................................................................................................. 6

1.1 Prerequisites.................................................................................................................. 6
2 Configuration........................................................................................................................... 6
2.1 Organizational Units...................................................................................................... 6
2.2 Master Data................................................................................................................. 13
2.3 Overhead Cost Controlling..........................................................................................22
2.4 Profit Center Accounting.............................................................................................. 40
2.5 Product Cost................................................................................................................ 44
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SAP ECC 6.0
1. Controlling: Configuration Guide

1. Purpose
The purpose of this document is to describe the general configuration steps required to manually
set up the configuration within the system landscape that has already been installed using the
corresponding installation or configuration guides for installation.
The Building Block Configuration Guide describes how to set up the configuration of a building
block manually, without the support of automated configuration tools. If you want to use BC Sets,
LSMW, ECATT and CATT procedures for an automated installation process, refer to the Building
Block Installation Guide of this building block
Preparation
1.1 Prerequisites
List dependencies with other building blocks and describe the general prerequisites that you have
to fulfill to install this building block. Do not repeat preparation settings already described in other
building block guides.
The following Building Blocks have to be installed as prerequisites:
 Organizational Structure
 Financial Accounting
2 Configuration
2.1 Organizational Units

2.1.1 Controlling Area
Use
Values are defined for controlling area 1000.
2.1.1.1Maintaining the Controlling Area

Use
 Controlling area 1000 is configured as cross-company code. Company code 1000 and 5000
is assigned.
 The currency is INR, the currency type is 30 (group or client currency).
 The extended chart of accounts is 1000.
 The fiscal year is the calendar year (fiscal year variant V3); a non-calendar fiscal year can
also be used.
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 The variance indicators (price differences can be determined for specific transactions) and
company code validation (postings to cost centers or orders only possible within the same
company code) are set for the controlling area.
 The following Controlling components are active:
- Cost Centers
- Order Management
- Commitments Management
Procedure
1. To carry out the activity, choose one of the following navigation options:
Transaction code OKKP
IMG menu IMG  Controlling  General Controlling  Organization 
Maintain Controlling Area  Maintain Controlling Area (Selection
Menu)
2. Maintain the following values in the views described below:
Field name Description M/ User actions and Note

O/C values
KOKRS Controlling area 1000
BEZEI Name Controlling Area CoCd Can be
1000 & 5000 changed to a
custom value
KOKFI BUKRS -> KOKRS Cross-company code
cost accounting
CTYP Currency type 30
WAERS Currency INR
XWBUK Diff. company code Set
currency
KTOPL Chart of accounts 1000
LMONA Fiscal year variant V3
KHINR CC Standard Hierar 1000
KOSTS Cost centers Component active
AUFTR Order management Component active
OBLVB Commitments Component active
management
ERGBR Profit Analysis Component not active
COABC Acty-Based Costing Component not active
PCRCH Profit center Set
ALLEW All currencies Set
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Field name Description M/ User actions and Note

O/C values
RABWG Variances Set
RKBUK CompCode validation Set
BUKRS Assigned company 1000
code 5000
GJAHR Fiscal year From 2500 To 9999
Result
You have created controlling area 1000 and assigned it to company code 1000 and 5000. You
have activated Cost Center Accounting. The Profit Center Accounting activated
2.1.1.2 Maintaining Versions

Use
 Version 0
Planning
- Integrated planning is set
- Copying is allowed
- Exchange rate type M with value date = start of fiscal year
- Valuation version for internal activity allocation = 0
- Integrated planning with cost centers/business processes
Price calculation
- Strictly iterative price
- Actual and planned periodic price (the costs of the individual period are divided by the
activities during that period, which may result in different prices for each period)
- You can initiate revaluation in a separate business transaction and revaluation at actual
prices. The original allocations for the planned price are not changed in the process.
Instead, the system posts the deviation from the allocation for the planned price in a
separate transaction.
 More versions: 1, 2, 3 (plan versions only)
Planning
- Exchange rate type P
Price calculation
- Strictly iterative price
- Periodic price
Integrated planning
- Controls whether or not planning of an internal order is integrated in a plan version with
cost center planning.
Strictly iterative price
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You should only set this flag if you use manually set output prices for planning activity
types. If the flag is set, price calculation will also include the calculation of a strictly
iterative price, in addition to the price that results from your planning (for example,
through a mixture of iterative and manually set allocation prices). When determining this
strictly iterative price, the system acts as if there were no manually set prices. As a result,
the allocation prices for all activity types are also determined iteratively for all the cost
centers in this version.
Procedure
Transaction code OKEQ

IMG menu IMG  Controlling  General Controlling  Organization 
Maintain Versions
2. <General Version Definition> Version 0
Field name Description M/O/C User actions and Note

values
VERSN Version 0
VTEXT Name Planning/actual version
계획/실적 버전
PLNDF Manage planning X
data
ISTDF Manage actual data X
WIPDF WIP / results X
analysis
ABWDF Variance X
JAHR Year From <current fiscal
year> To <current fiscal
year> + 4
VSPKZ Version blocked Not set
RWINKZ Planning X
integration
KOPIEREN Copying allowed X
KURST Exchange rate type M
PLDAT Value date <current date>
PLICC Plan int. CC/GP X
VPDIO Valuation version 0
for IAA
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3. <General Version Definition> Versions 1-3
Field name Description M/O/C User actions and Note

values
VERSN Version 1 and 2 and 3
VTEXT Name Plan version: revision 1,
2, 3
계획버전:개정 1, 2, 3
PLNDF Manage planning X
data
ISTDF Manage actual data Not set
WIPDF WIP / results Not set
analysis
ABWDF Variance X
JAHR Year From <current fiscal
year> To <current fiscal
year> + 4
VSPKZ Version blocked Not set
RWINKZ Integrated planning X
KOPIEREN Copying allowed X
KURST Exchange rate type P
PLDAT Value date Not set
PLICC Plan int. CC/GP Not set
VPDIO Valuation version 0
for IAA
Result
You have configured version 0 for planning and actual postings and version 1 to 3 for planning
and then assigned them to controlling area BP01. You have maintained five fiscal periods.
2.1.1.3 Number Ranges for CO Documents

Procedure
Transaction code KANK

IMG menu IMG  Controlling  General Controlling  Organization 
Maintain Number Ranges for Controlling Documents
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2. Contents of table NRIV:

Object name Value No To From_number To_number
RK_BELEG 1000 01 0000 0100000000 0199999999
RK_BELEG 1000 02 0000 0200000000 0299999999
RK_BELEG 1000 03 0000 0300000000 0399999999
RK_BELEG 1000 04 0000 0400000000 0499999999
3. Contents of table KTA04:
You allocate all the transactions (primary postings, planning transactions, other transactions) to
controlling area 1000.
Result
You have configured the number ranges for Controlling documents.
2.1.1.4 Number Ranges for CO Settlement Documents
Procedure
Transaction code SNUM
IMG menu IMG  Controlling  Internal Orders  Actual Postings 
Settlement  Maintain Number Ranges for Settlement
Documents

Object name No To From_number To_number
CO_ABRECHN 01 0000 0000000001 0001000000
3. Contents of table TKB08:

COAr NA NA
1000 01
4. Contents of table TNRGT:

Lg Object name No Short Group Long Group
text text
EN CO_ABRECHN 01 Standard Standard
accounting accounting
doc. doc.
표준회계전표 표준회계전표
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Result
The number ranges have been configured for the settlement documents for internal orders, and
have been allocated to controlling area 1000.
2.1.2 Reconciliation Ledger

Use
The reconciliation ledger is a ledger for displaying summarized values. These values are
represented in detail in the transaction figures.
You can use the reconciliation ledger for the following activities:

 Reconciling CO with Financial Accounting
 Monitoring the reconciliation of CO with Financial Accounting by individual account
 Determining and identifying a value flow that was posted across company code,
functional area or business area boundaries in CO
 You can use this value flow as the basis for summary clearing entries in Financial
Accounting
 You can enter the clearing entries manually based on the determined values or have the
R/3 System carry them out automatically.

Because functional areas have been defined, the reconciliation ledger is relevant and is
therefore should be activated. The activation is included in Maintaining the Controlling
Area.
2.2 Master Data

Use
Master data is imported using CATTs (computer aided test tools) or application transactions.
Because some of the master data is required for Customizing, a description of the data used
appears below.
For more information on the master data, refer to the CATT documentation or the Business
Process Procedures.
2.2.1 Cost Elements

2.2.1.1 Primary Cost Elements
Use
Primary cost elements have been defined through chart of accounts 1000. The primary cost
elements are based on the accounts in FI and may be allocated to multiple cost element groups.
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Whenever you create a new income statement account in SAP FI that is relevant for CO, you
have to create a corresponding primary cost element in CO to make sure that postings relevant to
cost accounting are recorded properly.
Primary cost elements are mainly personnel and material costs that can be posted directly to SAP
CO via FI. To manage primary cost elements, you can use the categories “Primary Cost
Elements” (category 1: primary costs / cost-reducing revenues), “Accrued Cost Elements”
(category 3: accrual deferral per surcharge and category 4: accrual/deferral per target=actual)
and “External Order Settlement” (category 22: external settlement).
The primary cost elements are created using a master data CATT. In most cases, cost element
category 1 (primary costs / cost-reducing revenues) is assigned.
Procedure
No further Customizing activities are required to create primary cost elements.
2.2.1.2 Revenue Elements

Use
In order to use revenue accounting, you have to create revenue elements as cost elements in
CO. The cost element categories involved are “Revenue Element” (category 11) and “Sales
Deduction” (category 12). Revenue elements and sales deductions are based on the P&L
accounts in the General Ledger, but should not be used for cost centers.
If Profitability Analysis is not active, no CO revenue elements are created for the FI revenue
accounts. Instead, the revenues are posted directly to the profit centers.
Procedure
You do not configure any other settings here.
2.2.2 Cost Centers

Use
Because the cost center structure is highly dependent on your industry sector, the cost centers
have been integrated in the cost center hierarchy in as most general a manor as possible. You
should only import cost centers and cost center groups, or add additional cost centers to the
existing hierarchy, that you truly need.
Before you can create a cost center, you have to create an appropriate cost center group within
the standard hierarchy, to which the new cost center will be assigned. A group can contain
several cost centers, and you can create several alternative groupings for the required cost
centers.
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Settlement: With which accounts the costs are settled.

- The costs remain in the cost center (if Profitability Analysis/Product Costing were active,
the costs would be assigned directly to the profitability segment/production order).
Int. The costs are settled with other cost centers.

Ext. CC The costs were submitted to production cost centers.
2.2.2.1 Cost Center Categories

Use
You assign cost center categories to cost centers.
Procedure
Transaction code OKA2
IMG menu IMG  Controlling  Cost Center Accounting  Master Data 
Cost Centers  Define Cost Center Categories
2. <Cost Center Categories View>
Table V_TKA05
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The lock indicator for primary actual postings, secondary actual postings, primary cost planning
and secondary cost planning are not set for all cost element categories.
2.2.3 Activity Types

Use
The activity types group the activities that are rendered in the cost centers.
To plan and settle these activities, quantities are measured in activity units. The activity quantity
is valuated with a price (sometimes also referred to as the “activity price”).
In Overhead Cost Controlling, the costs involving the activity quantity of an activity type are
managed separately in fixed and variable proportions. When you divide the activities of a cost
center into activity types, you should therefore consider whether or not the costs can be allocated
to those activity types.
You can manually enter prices for the activity types of a cost center, or have the system
calculate them based on the costs allocated to the activities. You can calculate prices
based both on planned and actual costs.
Overview of Cost Centers and Activity Types

You link cost centers with activity types during the planning for activity output. The entries in the
activity type master are merely proposals. You can change them in the corresponding planning
layout the first time you plan the activity output of a cost center. This means that different cost
centers can output the same activity (such as staff hours) with different prices and allocation cost
elements.
Procedure
Procedure
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2.2.4 Overhead Cost Orders

Use
Internal orders are generally used for planning, collecting, and settling the costs of internal
measures and tasks. The SAP R/3 System enables you to trace your internal orders across their
entire life cycle – from opening to planning and the posting of all actual costs to final settlement
and archiving. The internal order management functions represent the finest operational level of
cost and activity accounting.
2.2.4.1 Order Types

Use
Accrual Orders
You use accrual orders to monitor the period-related accrual calculation between the expenses
posted in Financial Accounting and the accrued costs charged in Cost Accounting. You can
therefore take the expenses you record in Financial Accounting and distribute them as accrued
costs across multiple periods. You use a master data CATT to create accrual order
9A0000000001, which you use in planned and actual results analysis.
 Order Type: 9A00 Internal Order – Accrual Cost Accounting
 External Number Assignment: 9A00 + Sequence Number
 Settlement Profile: 20
 Not Matched with Revenue
Other Order Types

Several order types are predefined. These order types differ in two attributes in revenue
management and the settlement profile. You can uncheck the “Revenue Postings” flag for order
type ERLO (Third-Party Services) if necessary.
Because cost centers cannot manage true revenues, special Customizing settings
are needed to settle cost centers with orders for which costs are matched with
revenues.
You define a number of control parameters for settlement in the settlement profile. The settlement
profile is a prerequisite for entering a settlement rule for a sender later in the order master record.
The settlement profile is usually defined in the order type. The statistical order category STAT
does not require a settlement profile, since statistical costs and revenues cannot be charged
further.
Procedure
Transaction code KOT2_FUNCAREA
IMG menu IMG  Controlling  Internal Orders  Order Master Data 
Define Order Types
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2. <View “Change Order Types”>

Table T003P
Table T0030
Type Cat NR Commt Rev StatProf SProf. Profile COP ResT1 ResT2 Rel ChD Profile ObjCl GenSM
$$ 03 03 000 000 X
0100 01 05 1 00000002 20 000001 003 000 X 000001 X
0200 01 06 1 00000002 20 000001 003 000 X X
0300 01 07 1 00000002 20 000001 003 000 X X X
0400 01 08 1 00000002 20 000001 X 003 000 X
0500 01 09 1 X 00000002 20 000001 003 000 X X
0600 01 10 1 00000002 50 000001 X 006 006 X BUD100 Investment X
0650 01 10 50 000001 000 000 000001 Investment X
0700 01 11 1 00000002 20 000001 003 000 X X
0800 01 12 1 00000002 40 000001 003 000 X X
1000 01 02 20 000001 X 003 000 X X X
1200 01 02 1 20 000001 003 000 X BUD100
9A00 02 13 00000002 20 000001 X 003 000 X X X
CL01 01 18 00000002 20 000001 000 000 X Overhead
CPR1 01 17 X 20 000001 000 000 Overhead
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SAPS 01 09 X 90 003 024 X Production
2.2.5 Profit Centers

Use
Profit Center Accounting is used for internal reporting, broken down by area of responsibility.
These areas can vary widely from company to company. Therefore, the provided assignments to
cost centers are only intended as an example and have to be adapted to your specific needs.

Profit Center Structure and Profit Centers

A simple profit center structure is created and can be enhanced with the best practices for an
industry or as an independent system depending on your specific needs.

You can use CATTs to create the following profit centers:
Profit Center Description

1000 Plant 1
1100 Plant 2

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The created profit centers are assigned to the standard profit center hierarchy as illustrated
below:
Profit Centers and Accounts

As soon as you create a new income statement account in SAP FI that will be relevant for Profit
Center Accounting, you have to create a corresponding primary cost element in SAP CO to
ensure the proper account assignment for the cost accounting-relevant objects. Alternatively, you
can add the account to the list of “Additional Balance Sheet/Income Statement Accounts” in
Customizing. Make sure that you also assign the new accounts to the account groups that you
use for reporting; otherwise the postings to the new account will not appear in your reports.
2.2.5.1 Activating Profit Center Accounting

Procedure
Transaction code OKE5
IMG menu IMG  Controlling  Profit Center Accounting  Basic Settings 
Controlling Area Settings  Maintain Controlling Area Settings
2. <View EC-PCA: Change Controlling Area Settings>

Table TKA00
COAr Fiscal Profit Valuation
year center view
KOKRS GJAHR PCRCH PCTRP
1000 2005 2

Table TKA01
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COAr Hierarchy PC Elim. of PC local Currency Transaction

area ledger internal currency type currency
business
KOKRS BPHINR PCLDG PCBEL PCACUR PCACURTP PCATRCUR
1000 1000 X 30
2.2.5.2 Activating Direct Postings

Procedure
Transaction code 1KEF
IMG menu IMG  Controlling  Profit Center Accounting  Basic Settings 
Controlling Area Settings  Activate Direct Posting  Set Control
Parameters for Actual Data
2. <Change View EC-PCA Control Parameters for Actual Postings>

Table: V_TKA00PCA
COAr Fiscal Profit Locked Line Online
year center items transfer
KOKRS GJAHR PCRCH VSPKZ EPSKZ ONLKZ
1000 <Curent 2 X X
Year>
2.2.5.3 Defining Number Ranges

Procedure
Transaction code GB02
IMG menu IMG  Controlling  Profit Center Accounting  Actual Postings
 Basic Settings: Actual  Define Number Ranges for Local
Documents
Object name Value No To From_number To_number
GL_LOCAL 1000 04 1999 0010000000 0001999999
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3. Contents of table TNRGT:
Lang Object name Value No No Group text
DE/EN GL_LOCAL 01
DE/EN GL_LOCAL 02
DE/EN GL_LOCAL 03
DE/EN GL_LOCAL 04 A0 – Actual through-osting
2.3 Overhead Cost Controlling
2.3.1 Cost and Activity Planning

Use
There is no general prescribed sequence for cost planning. Certain rules are recommended,
however. A sequence proposed by SAP is described below; you are under no obligation to follow
this sequence.
Assumptions
 Cost center planning is set up for each cost center and for one fiscal year.
 Cost centers without activity types are planned independent of activity types. If cost centers
have multiple activity types, the costs are distributed to the activity types by cost element.
 No industry-specific planning layouts or profiles have been defined.
2.3.1.1 Activity Type Planning

Use
SAP recommends starting with activity type/reference figure planning, since the planned activity
quantities and capacities determine the planned cost volume. The system links all costs in the
cost center to the activity types and uses this information to determine the prices per activity type.
You can also plan prices yourself within activity type planning. The system does not determine
the prices in this case.
When passing on the activity types, the SAP R/3 System credits the cost center according to
cause. In order to do so, after cost planning for the planned activities is complete, plan prices
have to be determined by the system or set by the user that guarantee a complete credit of the
cost centers (according to the plan). Therefore, the calculation of the plan prices represents the
conclusion of cost center planning.
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Planning for cost centers for which activity types have been defined (values are samples only):
Cost Center Activity Type Plan Activity Plan Capacity Plan Price
Quantity
Environmental Environmental 1200 AU/year 2400 AU/year Price calculation
Protection Protection
Internal Transport Internal Transport 13000 18000 AU/year Price calculation
AU/year
Maintenance Staff Hours 8000 H/year 9000 H/year Price calculation
You have to pay attention to the period distribution. The plan activity should be
distributed equally across all periods of the planning interval, in order to avoid a
potential division by 0 during plan price calculation.
In production planning, activity quantities that were calculated using long-term

planning can be copied to the cost center with the “Scheduled PP Activity”
function. This activity is placed as a scheduled activity, but does not correspond
to the plan activity yet. The scheduled activities are not placed in the plan activity
until the plan reconciliation run. Only then do they become the basis for price
calculation.
Procedure
2.3.1.2 Manual Planning of Statistical Key Figures

Use
Once activity type planning is complete, you can start planning the statistical key figures. The
SAP R/3 System uses the statistical key figures as the tracing factor for plan distribution,
assessment, as well as for periodic repostings.
The statistical key figures “Number of Message Units”, “Headcount”, “Area in sq. ft.” and “Number
of Users” are planned in each cost center. Gas, water, and electricity consumption are only
planned for the relevant cost centers (with consumption worth reporting).
Procedure
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2.3.1.3 Manual Primary Cost Planning

Use
As the name implies, primary cost planning involves planning the primary costs – that is, costs
due to external procurement or material withdrawals.
Both activity-independent (only to cost center) and activity-specific (to cost center/activity type)
primary costs are planned.
During activity-specific primary cost planning, you can split the figures into fixed and variable
costs. The SAP R/3 System always updates the activity-independent costs as fully fixed.
Activity-specific primary cost planning for cost centers for which activity output has been planned
(values are samples only):
Cost Center Activity Type Cost Fixed Costs Variable Costs

Element
Environmental Environmental Salaries 1,200 KRW 2,400 KRW
Protection Protection
Internal Transport Internal Transport Salaries 13,000 KRW 18,000 KRW
Maintenance Staff Hours Salaries 8,000 KRW 9,000 KRW
Procedure
2.3.1.4 Cost Center Activity Input Planning

Use
Activity types are planned in cost centers. This forms the basis for price calculation.
You use application transactions to carry out planning (see Business Process Procedures).
Procedure
2.3.1.5 Plan Cost Accrual Calculation

Use
You should start the plan accrual once you have completed manual primary cost planning. During
this process, overhead cost percentages are used to plan accrued costs for the corresponding
cost centers.
You have to define accrual parameters for the plan accrual; they are usually identical to those for
actual accrual.
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You define an overhead percentage rate for accruing the additional

employee benefit costs. Reference cost elements are the costs for wages
and salaries. Cost elements used for accrual by surcharge: Procedure
Transaction code KSAZ
IMG menu IMG  Controlling  Cost Center Accounting  Planning 
Planning Aids  Accrual Calculation  Percentage Method 
Maintain Overhead Structure
2. <Maintain CO-OM Accrual Calculation: Overhead Struc. Overview>

Overhead structure ACC
Controlling area 1000 (Best Practices)
Actual accrual
001.<Current Year> - 012.2020
Plan accrual
Version 000 Plan/actual version
001.<Current Year> - 012.2020
3. <Maintain CO-OM Accrual Calculation: Plan Assignments>
Valid from Valid to Overhead structure

1 <Current 12 2020 ACC
Year>
2.3.1.6 Plan Cost Distribution

Use
Distribution is the last activity in primary cost planning. In the previous planning steps, you
planned the primary costs in collective cost centers for an entire fiscal year. The SAP R/3 System
now distributes these costs to the individual cost centers periodically, according to predefined
keys.
Statistical key figures 005 (electricity consumption), 003 (gas consumption) and 004 (water
consumption) are used to distribute the primary costs from the energy cost center. At the end of
the period, the receiver cost centers receive the costs under original cost elements 54000910
Electricity, 54000900 Water and 54000920 Gas.
Procedure
Transaction code KSV7 (KSV8)

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Allocations  Distribution  Define Distribution
2. <Change Plan Distribution Cycle>

Cycle Segment Sender CC Tracing Factor Receiver
010 Stat. KF 004 (plan)
010
Water Water Consumption
Plan
distribution 020 1705 Stat. KF 005 (plan) Cost center
Energy Electricity Energy Electricity Consumption
계획배부 030 Stat. KF 003 (plan)
에너지 Gas Gas Consumption
2.3.1.7 Plan Periodic Reposting

Use
Periodic reposting is a posting aid that you can use to make corrections to your cost centers,
business transactions, internal orders and work breakdown structure elements. It has the same
result as transaction-based reposting. The results of transaction-based reposting immediately
affect the senders’ and receivers’ actual costs, however, whereas the periodic reposting is only
reflected in the actual costs once at the end of the month.
The postings for the phone costs are assigned to the Telephone allocation cost center. This cost
center exists solely to collect costs. This reduces the time required for document entry in
Financial Accounting. At the end of the period, statistical key figure 001 (Number of Message
Units) is used to repost the collected costs to the incurring cost centers.
Procedure
Transaction code KSW7 (KSW8)
Planning Aids  Periodic Reposting  Define Periodic Reposting
2.3.1.8 Plan Cost Assessment

Use
Assessment is used to allocate primary and secondary costs. The original cost elements are
combined and allocated to the receiver cost center in an assessment cost element.
The cost centers for assessment are the quality lab, IT, cafeteria, housekeeping and plant
security.
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Prerequisites
 You use cost elements with cost element category 42 (such as 63003000 for quality lab
assessment) for the plan assessment.
 You define the allocation rules based on statistical key figures (such as 007 = number of
users for IT assessment) or fixed percentages.
Procedure
Transaction code KSU7 (KSU8)
IMG menu path IMG  Controlling  Cost Center Accounting  Planning 
Allocations  Assessment  Define Assessment
2. <Create/Change Plan Assessment Cycle>

The following plan assessment cycle has been created for controlling area 1000
Cycle Segment Sender CC Tracing Factor Receiver
010 1401 Fixed
Quality Lab Quality Lab percentages
품질연구소
020 1103 Stat. KF 007 (plan)
IT IT Number of Users
020 IT
Plan 030 1701 Stat. KF 002 (plan)
Cost center
assessment Cafeteria Cafeteria Headcount
카페테리아
계획평가 040 1704 Stat. KF 006 (plan)
Housekeeping Housekeeping Area in sq. ft.
050 1706 Fixed

Plant Security Plant Security Percentages
보전
2.3.1.9 Plan Reconciliation

Use
You use plan reconciliation to check and reconcile the internal exchange of activities. In the
process, the SAP R/3 System adjusts the planned activity output for a cost center to the activity
requirements of the receiver cost centers.
Procedure
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2.3.1.10 Planned Price Iteration

Use
The planned price iteration represents the conclusion of your planning activities. All preceding
planning activities form the basis for the iteration. The SAP R/3 System determines the prices for
the activity types in several iteration runs. The system then uses these prices to valuate the
activity relationship.
You should not start price calculation until the structure of the cost centers and
activity types has been fixed. The deletion of cost centers after price calculation is
a lengthy process, even if all the costs have already been reversed.
Procedure
2.3.2 Budgeting and Budget Management
2.3.2.1 Budget Planning for Cost Centers

Use
You can plan a budget independently of any other planning steps. Because its figures are
independent of those in the other steps, you can include it in the planning process whenever you
want. Budget planning is another planning instrument in addition to primary and secondary cost
planning. It enables you to compare the sum of your actual postings with the planned budget.
This can help you spot budget overruns and control availability. You can plan budgets for
 A single cost center
 All the cost centers of a cost center group
You can view the budget data in a budget report. You can contrast the plan, commitments and
actual data (resulting from the actual postings), as well as the allotted and available amounts.
Prerequisites
In order to plan a budget, you need a budget profile. Several profiles have already been defined.
You can change their detailed settings in dialog during budget planning:
 Analysis time frame for budget planning
 Number of decimal places
 Scaling factor
 Distribution key
 Annual and/or period values
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Procedure
Transaction code OKF1
IMG menu IMG  Controlling  Cost Center Accounting  Budget
Management  Define Budget Planning Profiles
2. Change View: Cost Center Budget Profile

Table V_TBP1C_CE
Profile Text Distribution Future Past Start
key
PROFIL PTEXT SPRED Y_FUTURE Y_PAST Y_START
COST00 1000 Cost ctr budget, current 1 0 0 0
year
COST01 1000 Cost ctr budget, next 1 0 0 1

year
Table V_TBP1C_CE (continued)

Profile Scaling Decimal Annual Period View
factor places values values
PROFIL SCALE DECIM PPJA PPPE View
COST00 0 2 X X 6
COST01 0 2 X X 6
2.3.2.2 Budget Management for Orders

Use
The difference between budget management and order cost planning is its bindingness. Whereas
you have to estimate the costs for an order as precisely as possible during the planning phase,
the funds are specified as a budget during the approval phase. The budget is a framework,
approved by management, for processing order costs over a specific period.
Once the planning phase is complete, a budget is allocated. This budget can then only be
changed by budget updates from a defined point. You can either copy the original budget from
cost planning or set it manually. Budget updates can become necessary when unforeseen events
occur or when additional measures – such as price increases for external activities – require
corrections to the original budget.
You can allocate budgets whose status is Opened or later. If you want to prevent the allocation of
budgets with status Opened, you will have to define a user status (refer to the online
documentation for more information).
At many companies, the allocation of a budget is not the same as a release of funds. To reflect
this fact, you can use releases to successively release the budget. The foundation for releases is
the current budget – that is, the original budget as changed by any existing budget updates.
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Prerequisites
In order to allocate a budget, an order profile must be assigned to the order. Among other things,
the budget profile defines:
 The time horizon for budgeting
 Whether budgeting is allowed for Total values and/or annual values
Budget profile “000001” (General Budget Profile) is assigned to all order types and has the
following characteristic values:
Parameter Value
Past (time horizon) 1
Future (time horizon) 3
Total values X
Annual values X
Exchange rate type M
Value date -
Number of decimal places -
Scaling factor -
Budget program type -
Activation level 0
Usage -
Total -
Budgeting currency Controlling area currency
Procedure
Transaction code OKOB
IMG menu IMG  Controlling  Internal Orders  Budgeting and Availability
Control  Maintain Budget Profile
2. Change View: Order Types

Table V_TBP1C_OB
Profile Text Total Annual Future Past
values values
PROFIL PTEXT BPGE BPJA Y_FUTURE Y_PAST
000001 General budget profile x x 3 1
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Table V_TBP1C_OB (continued)

Profile Start View Factor Decimal Exchange Controlling
places rate area
category currency
PROFIL Y_Start SIGHT Scale DECIM KURST CURKOKR
000001 0 03 0 M x
2.3.2.3 Availability Control for Orders

Use
The monitoring of allotted funds is a primary element of order controlling. You can call up the
funds overview, an overview of all allotments and their types, at any time. For critical orders in
particular, the allotted funds can exceed the funds made available at an early stage.
In addition to the funds overview as a “passive availability control”, an “active availability control”
has been implement that enables you to prevent excessive allotments from occurring in the first
place. Based on defined tolerance limits and whenever certain activities are recorded, the system
checks whether the available budget or available released budget (release) is still sufficient.
Budget profile “000001” (general budget profile) in controlling area 1000 steers the availability
control of orders in accordance with the following settings (tolerance limits):
Parameter Value
Business transaction ++
group
Action 1
Usage 90
Absolute variance -
Currency INR
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Procedure
Transaction code OKOC
IMG menu IMG  Controlling  Internal Orders  Budgeting and Availability
Control  Define Tolerance Limits for Availability Control
2. <Change View “Order Availability Control: Tolerance Limits”>
Table V_TBPFD_O
Controlling Profile Trans. Action Usage in % Abs.
area group variance
KOKRS PROFIL VGROUP AKTION PROZEN T WKGXXX
1000 000001 ++ 1 90 0.00
2.3.2.4 Commitments Management for Cost Centers and Orders

Use
Purchase orders and purchase requisitions create financial obligations (commitments) with
differing degrees of binding. These commitments are not recorded for accounting purposes, but
can result in actual costs in various business transactions. Basically, this means that
commitments tie funds that will become costs at a later point in time.
The Controlling module takes care of activities such as planning, checking and controlling costs.
Commitments Management is an element of cost monitoring; commitments are identified for
orders, cost centers and projects.
A purchase order commitment is created when you create a purchase order. In order for the data
to be copied from purchasing, the purchase order or release order has to be assigned to the
account of an order, a cost center or a project. The purchase order commitment is reduced upon
the invoice/goods receipt. It can be reduced completely or proportionally to the invoice/goods
receipt. You can define these settings in the purchase order.
The default, quantity-based commitments management is active in controlling area BP01.
Activating commitments management will increase your data volume.
2.3.3 Actual Postings
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2.3.3.1 Direct Activity Allocation

Use
Direct activity allocation is possible for activity types for which activity type category 1 (manual
entry, manual clearing) is maintained in the activity master.
A sender cost center can only provide an activity type when a price has been planned for that
cost center/activity type combination.
Procedure
2.3.3.2 Transfer of Primary Costs to Cost Center/Order

Use
When you create postings in SAP FI, the system proposes a corresponding cost accounting-
relevant object as soon as the default account assignment is configured.
You could use the default account assignment for the following business transactions, for
example: (If you set price difference accounts as cost element, in Korea, normally do not set price
difference account as cost element)
 Transferring price differences that are posted in Purchasing as the result of different prices
during invoice receipt
 The revaluation of material stocks
 The transfer of inventory differences
If Profitability Analysis is active, you should set the profitability segment as the default account
assignment.
If you use the Logistics components, it makes sense to use the default account
assignment for those cost elements that are automatically posted to from the
Logistics modules (logistical income statement accounts).
Procedure
Transaction code OKB9
IMG menu IMG  Controlling  Cost Center Accounting  Actual Postings 
Manual Actual Postings  Edit Automatic Account Assignment
2.3.4 Period-End Closing Overhead Costs Controlling
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2.3.4.1 Activities by Cost Center

Use
During the period-end closing for Cost Center Accounting, you carry out period-specific business
transactions prior to the end of the period.
These include:
 Accrual calculation
 Overhead rates
 Periodic allocations
o Periodic reposting
o Actual distribution
o Actual assessment
o Indirect activity allocation
 Actual price calculation in Cost Center Accounting
2.3.4.1.1 Actual Period Reposting

Use
At the end of the period, you use statistical key figure 001 (Number of Message Units) to repost
the phone costs from the “phone” allocation cost center to the incurring cost centers.
The cycle maintained in the plan has been copied to the actual.
Procedure
Transaction code KSW1
Period-End Closing  Periodic Repostings  Define Periodic
Repostings
2.3.4.1.2 Cost Accrual Calculation (Percentage Method)

Use
Actual cost accrual calculation has been configured similarly to plan cost accrual calculation.
The data from the plan accrual calculation were copied completely (for details, see plan cost
accrual calculation).
The same orders as in the plan are used as accrual orders. This enables you to compare the plan
costs with the actual costs.
Because profitability analysis is not active, the delta – if any – remains in the accrual order.
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Procedure
Transaction code KSAZ
Period-End Closing  Accrual Calculation  Percentage Method
 Maintain Overhead Structure
2. <Maintain CO-OM Accrual Calculation: Overhead Struc. Overview>

Overhead structure ACC
Controlling area 1000
Actual accrual
001.2002 - 012.2020
Plan accrual
Version 000 Plan/actual version
001.2002 - 012.2020
3. <Maintain CO-OM Accrual Calculation: Actual Assignments>
Valid from Valid to Overhead structure

1 2002 12 2020 ACC
Overhead rates cannot be transported and have to be maintained manually in Customizing or

using CATTs.
2.3.4.1.3 Actual Cost Distribution

Use
You distribute the primary costs for the energy cost center. The receiver cost centers receive the
costs under original cost elements 54000910 Electricity, 54000900 Water and 54000920 Gas.
The distribution cycle maintained in the plan has been copied to the actual.
Procedure
Transaction code KSV1 (KSV2)
Period-End Closing  Distribution  Define Distribution
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2.3.4.1.4 Actual Cost Assessment

Use
The cost assessment summarizes the posted primary and secondary costs and settles them with
the receiving cost centers in an assessment cost element (such as 63003000 for Quality Lab
Assessment).
The cost centers for assessment are the quality lab, IT, cafeteria, housekeeping and plant
security.
The assessment cycle maintained in the plan has been copied to the actual.
Procedure
Transaction code KSU1 (KSU2)
Period-End Closing  Assessment  Maintain Assessment
2.3.4.2 Internal Order-Related Activities

Use
You generally use internal orders to record a preliminary collection of costs and to help you with
the necessary planning, control and inspection processes. Once the measure is complete, you
settle the costs with one or more receivers (cost center, fixed asset, profitability segment and so
on).
To settle an internal order, a settlement rule that determines where the costs are settled must be
defined in each sender.
The settlement profile that is assigned to the order type determines how an order is settled. For
more information on this subject, see the Planning chapters.
2.3.4.2.1 Maintaining Allocation Structures

Use
Internal orders are settled at the end of a period. To do so, you have to configure the allocation
structures.
Procedure
Transaction code OK06
IMG menu IMG  Controlling  Internal Orders  Actual Postings 
Settlement  Maintain Allocation Structures
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Table: CO_SSTRCV1
Allocation Lang Text
structure
ABSCH STEXT
A1 EN CO_Allocation_Structure_A1
KO CO 배부구조
IM EN Allocation Structure IM
KO IM 배부구조
Table: CO_SSTRCV2
Allocatio Assign. Lang Text Text
n
structure
ABSCH ABZUO ZTEXT STEXT
A1 10 KO 인건비 CO_Allocation_Structure_A1
EN Personnel Costs
A1 20 KO 원자재/서비스자재 CO_Allocation_Structure_A1
EN Material Costs
A1 30 KO 기타비용 CO_Allocation_Structure_A1
EN Other Costs
A1 40 KO 2 차원가요소 CO_Allocation_Structure_A1
EN Secondary costs
A1 50 KO 수익 CO_Allocation_Structure_A1
EN Revenues
IM 10 KO 외주구매 Allocation_Structure_IM
EN External Procurement
IM 20 KO 자재 Allocation_Structure_IM
EN Material
IM 30 KO 내부서비스 Allocation_Structure_IM
EN Internal services
2.3.4.2.2 Maintaining Settlement Profiles

Prerequisites
You have already assigned the settlement profiles to the order types (see Master Data).
Procedure
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Transaction code OKO7

IMG menu IMG  Controlling  Internal Orders  Actual Postings 
Settlement  Maintain Settlement Profile
2.4 Profit Center Accounting

Use
A profit center represents a subdivision of a company, to which you can post revenues and costs.
This enables you to judge the economic performance of your individual company areas.
Postings to profit centers are statistical postings. This means they are posted to an additional CO
account assignment (cost center, order) for postings to cost elements. When postings to stock
accounts are involved, the system determines the profit center from the plant-specific data of the
material master record and writes this additional information to the FI document.
Period accounting has been implemented, but you can change to cost-of-sales accounting if
desired.
You can also allocate individual balance sheet items – such as asset portfolios, material stocks,
receivables and payables – by profit center. The items “Bank”, “Capital” and “Taxes” cannot be
completely allocated to a unique profit center. Therefore, you cannot create a complete balance
sheet for individual profit centers in Profit Center Accounting.
In an integrated SAP R/3 system environment, material movements are carried out using
movement types in MM and are posted to Financial Accounting at the same time. In the process,
the profit center is derived automatically from the plant level of the material master and saved as
an account assignment in the FI document. Stocks are managed at the plant level. The profit
center stock is derived from the plant stocks of a material.
When movements take place in Materials Management, the system checks whether sufficient
plant stock (and therefore automatically the profit center stock) of a given material is available.
If you do not use Materials Management, you cannot track profit center stocks or stock changes,
because the posting of the Accounting document does not trigger the check for sufficient profit
center stocks. This can result in negative stocks (or incorrect stock changes) in a profit center. In
this case, it no longer makes sense to allocate the balance sheet items or P&Ls to different profit
centers.
Please note that the settings described below represent the minimum requirements, and can be
supplemented for specific industries.
Definition of Profit Center Accounting

- P&L by period accounting
- Asset portfolios by profit center
- Receivables and payables by profit center
Extending Profit Center Accounting

If you use an industry solution, you can use the corresponding Logistics components such as
SAP MM, SAP SD and SAP PP. This gives you additional integration options:
- Automatic derivation of the profit center for stock postings and revenue postings
- Allocation of P&Ls (period accounting and cost-of-sales accounting) by profit center for segment
reporting
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- Material stocks by profit center

- Using the balance sheet adjustment to allocate receivables and payables
and the P&L adjustment for the subsequent account assignment of cash
discount expense/revenue and loss, source differences and backdated tax
calculations (based on cash discounts).
To use this function sensibly, you have to extend Profit Center Accounting. This can affect the
following areas:
1. Profit center structure
A more complex profit center structure that is based on the needs (organizational structure,
products, markets, value chain) of the affected company.
2. Assignment to master data
More complex cost centers structure to enable unique profit center allocation.
3. The default account assignments (select additional P&L accounts, default account
assignment in CO) have to be defined in more detail in Customizing.
4. When an SD order is created, the correct profit center has to be allocated.
5. When a material master is created, the corresponding profit center is entered in costing view
1 (plant level).
Business Area vs. Profit Center

As internal and external accounting methods have converged, the need to
differentiate between an external orientation by business area and an
internal orientation by profit center for steering purposes has become less
and less relevant. Customers find it more and more difficult to choose
between the two entities. To pay heed to these changing requirements,
future functional enhancements in the Accounting area will concentrate on
the profit center entity. The business area will be retained in its current
form. Its data and functions will continue to be available. However, no
further functional enhancements will be implemented for the business area
entity (also see note number 321190).
For this reason, no business areas are defined in Best Practices. All the
Best Practices will offer a version of Profit Center Accounting that you can
adapt to your specific industry’s needs.
2.4.1 Actual Postings
2.4.1.1Integration with Other Components

Use
Actual postings in Profit Center Accounting are generated by primary cost postings in Financial
Accounting and assessments and distributions in Cost Accounting.
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Expense Accounts
The following cost elements are copied from Financial Accounting to Profit Center Accounting:
 Expense accounts that are also defined as cost elements in SAP CO.
The profit center is derived from the cost center or the order (see Master Data)
 If stock changes (material postings) occur, the following options are available for deriving
the profit center:
- Default account assignment from G/L account (see section “Selecting Additional
Balance Sheet/P&L Items”)
- Manual account assignment when posting to the G/L account
- Derivation from the material master. More information is available in the industry
scenarios.
The default profit center is assigned for expenses when the profit center cannot be derived
automatically.
Revenue Accounts
When postings to revenue accounts are involved, three options for deriving the cost center are
conceivable:
 Default account assignment from G/L account (see section “Selecting Additional Balance
Sheet/P&L Items”)
 Manual account assignment when posting to the revenue account
 If you use the CO-PA, PS or SD components, you can derive the profit center from the
profitability segment, project or sales order item. This option is not implemented here.
Assessments, Distributions and Internal Activity Allocation:

The profit center is determined from the sender or receiver object in overhead cost controlling
(cost center, order).
Asset Portfolios
The profit centers are taken from the CO objects in the asset master record.
Receivables/Payables
When you post invoices whose revenues/expenses were generated by different profit centers, the
receivables/payables are not initially divided among the involved profit centers. You calculate the
receivables and payables at the end of the month with the “Calculate P&L adjustment” function,
and then assign them to the profit centers using the “Transfer payables/receivables” transaction
in PCA.
Procedure
For more detailed information about the configuration, see the master data and the other chapters
on Profit Center Accounting
2.4.1.2 Selecting Additional Balance Sheet and P&L Accounts

Use
In this activity, you can define which accounts and account intervals are to be defined on a
transaction-specific basis. This enables you to transfer postings to additional accounts in Profit
Center Accounting that are not posted to overhead cost controlling, in addition to the accounts
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defined as cost/revenue elements. Examples of revenue accounts and sales deduction accounts,
as well as accounts for tangible assets, have been defined in the Best Practices system.
If no profit center is set for a posting, the default profit center from the account interval is used. If
the determination of the profit center by controlling area and account interval is not differentiated
enough, you can also define derivation rules for determining the default profit center. Because the
profit center structure is extremely enterprise-specific, it is not described in any detail here.
Instead, default profit center 9000 has been defined for all the accounts passed on in this
manner.
Procedure
Transaction code 3KEH
IMG menu IMG  Controlling  Profit Center Accounting  Actual Postings
 Choose Additional Balance Sheet and P&L Accounts  Choose
Accounts
2.4.2 Profit Center Closing
2.4.2.1 Transferring Balance Sheet Items

Use
You can use the function for transferring selected balance sheet items to transfer asset portfolios,
material stocks, work in process and receivables and payables to Profit Center Accounting.
For asset portfolios, material stocks and work in process, we recommend only using this function
to create the initial stock balances after activating Profit Center Accounting. You can then
implement any changes to the stocks online – by defining the accounts as “Additional Balance
Sheet and P&L Accounts” in Customizing.
In contrast, receivables and payables cannot be transferred online, and are transferred using this
function once they have been determined.
2.4.2.2 P&L / Balance Sheet Adjustment

Use
If you use profit centers to divide your company into business areas, you may have to make
adjustments in order to distribute cash discounts or exchange rate differences among the profit
centers, for example, according to cause.
You can use report SAPF181 for the adjustments to the P&L. To do so, you have to define the
correction accounts in Customizing for all the accounts under consideration.
You can then run the correction report within the framework of the period-end closing.
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Correction accounts for the P&L / balance sheet adjustment have already been defined in
company code BP01.
Correction report SAPF181 can only distribute cash discounts and exchange rate
differences that refer to an invoice. This is not the case, for example, for manual postings
to the cash discount account, canceling a clearing without reversing the payment,
rounding differences between SAPF181 and the payment and exchange rate differences
when clearing bank payments. You should still transfer such payments to PCA in order to
reconcile the balances between PCA and FI, however. To do so, assign the accounts as
“Additional Balance Sheet and Profit Statement Accounts” to the default profit in
Customizing. You can then assign the correction accounts for these accounts to the
same profit center.
2.5 Product Cost
2.5.1 Product Cost Planning
2.5.1.1Define Calculation Bases for Costing Sheet

Use
Calculation Bases are used in the Costing Sheet.
Procedure
Transaction Code KZB2

IMG Menu IMG  Controlling  Product Cost Controlling  Product Cost
Planning  Basic Settings for Material Costing  Overhead 
Costing Sheet: Components  Define Calculation Bases
2. Execute the transaction.

3. Create two new calculation bases:
Base Name EN Name KO
YB10 1000 Material 1000
YB20 1000 Product Cost 1000
4. Mark the first line and choose “Details”

5. Enter your Controlling Area (1000)
6. Maintain the following table for cost portion “Total”
From Celem To Celem Cost ele.Group
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1000-2
7. Go back and mark the line for the second cost base YB20.
8. Enter your Controlling Area (1000)
Result
Cost Bases for the Costing Sheet have been created.
2.5.1.2 Define Percentage Overhead

Use
Percentage Overheads are used in the Costing Sheet.
Procedure
Transaction Code KZZ2

Costing Sheet: Components  Define Percentage Overhead
2. Execute the transaction.

3. Choose "Create" to create a new overhead rate.
4. Enter a four-character identification code and a description for the new overhead rate and
assign a condition to it.
5. Select the row and choose "Detail"
6. Specify the individual overhead rates.
7. Each record consists of a validity period, a percentage rate and several condition fields,
which are taken from the condition tables.
8. Save your overhead rate.
Result
Overhead Rates for the Costing Sheet have been created.
2.5.1.3 Define Credits

Use
Credits are used in the Costing Sheet and contain information about the credited sender and the
cost element for the overhead posting.
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Procedure
Transaction Code KZE2

Costing Sheet: Components  Define Credits
Result
Credits for the Costing Sheet have been created.
2.5.1.4 Define Costing Sheet

Use
The Costing Sheet calculates Overhead surcharges to standard cost estimates and production
orders.
Procedure
Transaction Code KZS2

Define Costing Sheets
2.5.1.5Cost Component Structure

Procedure
Transaction Code OKTZ
IMG Menu IMG  Controlling -> Product Cost Controlling -> Product Cost
Planning -> Basic Settings for Material Costing -> Define Cost
Component Structure
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2.5.1.6Definition of Costing Types
Procedure
Transaction Code OKKI
Planning -> Material Cost Estimate with Quantity Structure ->
Costing Variant: Components -> Define Costing Types
Result
Cost Types are created.
2.5.1.7Definition of Valuation Variant

Procedure
Transaction Code OKK4
Costing Variant: Components -> Define Valuation Variants
Make the following entries:

Procedure
Transaction Code OKK6
Costing Variant: Components -> Define Date Control
2. Make the following entries:
 Save your entries and go back to the first level.
The Date Control maintained are SAP standard Date Control, to prevent the SAP
standard Date Control being changed by user definition, the Date Control is created here
again.
Result
Date Controls are created.
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2.5.1.8Definition of Transfer Strategy

Procedure
The Transfer Strategy maintained are SAP standard Transfer Strategy, to prevent the
SAP standard Transfer Strategy being changed by user definition, the Transfer Strategy
is created here again.
Result
Transfer Strategies are created.
2.5.1.9Settings for Costing Variant

Procedure
Transaction Code OKKN
Define Costing Variants
2.5.2 Activate Cost Component Structure

Use
After the creation of the Cost Component Structure, the Cost Component Structure must be
activated before it can be used. This is to activate it.
Procedure
Transaction Code OKTZ

Planning -> Basic Settings for Material Costing -> Define Cost
Component Structure
Result
The Cost Component Structure has been activated.
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2.5.3 Cost Object Controlling

2.5.3.1
2.5.3.2 Valuation
2.5.3.2.1 Definition of Valuation Variant

Procedure
Transaction Code OKKI
Costing Variant: Components -> Define Valuation Variants
2.5.3.2.2 Create Costing Variant for Manufacturing Orders (PP)

Procedure
Transaction Code OPL1
IMG Menu IMG  Controlling -> Product Cost Controlling -> Cost Object
Controlling -> Product Cost by Order -> Manufacturing Orders -
> Create Costing Variants for Manufacturing Orders (PP)

2.5.3.2.3 Create Costing Variant for Product Costing (SO)

Procedure
Transaction Code OKY9
Controlling -> Product Cost by Sales Order -> Preliminary
Costing and Order BOM Costing -> Product Costing for sales
order Items / Order BOMs -> Check Costing Variants for
Product costing

Execute the transaction.
 Select “new entries” and enter:

Costing Variant YBC4
Name BP Sales Order Costing
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BP 판매계획오더
Costing Type 18
Valuation Variant Y02
 Save your entrie
2.5.3.2.4 Define Goods Received Valuation for Order Delivery

Procedure
Transaction Code OPK9
Controlling -> Product Cost by Order -> Define Goods
Received Valuation for Order Delivery
ValA Company name VVt Valuation variant

BP01 BP Company Code BP01 Y02 BP Prod. Order
2.5.3.3 Work In Process (WIP)
2.5.3.3.1 Define Results Analysis key

Procedure
Transaction Code OKG1
Controlling -> Product Cost by Order -> Period End Closing ->
Work in Process -> Define Result Analysis Key
2.5.3.3.2 Define Results Analysis Version

Procedure
Work in Process -> Define Result Analysis Version
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2.5.3.3.3 Define Valuation Method (Actual Costs)

Procedure
Transaction Code OKGC
Work in Process -> Define Valuation Method (Actual Costs)
2.5.3.3.4 Define Line IDs

Procedure
Transaction Code SPRO
Work in Process -> Define Line IDs
2.5.3.3.5 Define Assignment

Procedure
Transaction Code OKGB
Work in Process -> Define Assignment
2.5.3.3.6 Define Update

Procedure
Transaction Code OKGA
Work in Process -> Define Update
2.5.3.3.7 Define Posting Rules for Settling Work in Process

Procedure
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Work in Process -> Define Posting Riles for Settling Work in
Process

 Select “New entries” and and enter the following values:
RA
COAr Co.co RA Ver P&L Acc BS Acc
cat
BP01 BP01 0 WIPR 51000800 12040100
 Save your entries.
2.5.3.4 Variances
2.5.3.4.1 Define Variance Keys

Procedure
Transaction Code OKV1

Variance Calculation -> Define Variance Keys
Variance Key Name EN Name KO

000001 Variance Calculation for Orders 오더의 차이계산
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SAP ECC 6.0
The Variance Key maintained is SAP standard Variance Key, to prevent the SAP
standard Variance Key being changed by user definition, the Variance Key is created
here again.
2.5.3.4.2 Define Default Variance Keys for Plants

Procedure
Transaction Code OKVW

Variance Calculation -> Define Default Variance Keys for
Plants
Plant Variance Name EN Name KO

Key
1000 000001 Variance Calculation for Orders 오더의 차이계산
2.5.3.4.3 Check Variance Variants

Procedure
Transaction Code OKVG

Variance Calculation -> Check Variance Variants

Ty Minor
p VV Name FC RM PR QY RU IV OP SF ER Diff OQ MP SV
OR 001 표준 60 70 10 30 20 00 40 50 00 00 0000 00 45 05
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SAP ECC 6.0
2.5.3.4.4 Define Target Cost Versions

Procedure
Transaction Code OKV6

Variance Calculation -> Define Target Cost Versions

 Select “New entries” and enter the following values or copy from default settings of
CoArea 1000 to 1000:
COArea TgtCostVsn Text EN Text KO

1000 0 Target Costs for Total Variances
1000 1 Target Costs for Production Variances
1000 2 Target Costs for Planning Variances
BP01 3 Tgt Costs for Var. Mod Std Cost Est
 Leave the other entries as they are suggested (Control costs: Actual Costs, Target costs:
Current std cost est) and save your entries.
2.5.3.5 Settlement
2.5.3.5.1 Create Allocation Structure

Procedure
Transaction Code OKO6

Settlement -> Create Allocation Structure
2.5.3.5.2 Create Settlement Profile

Procedure
Page 51 of 62
SAP ECC 6.0
Transaction Code OKO7

Settlement -> Create Settlement Profile
3.5.4 Actual Costing/Material Ledger
3.5.4.1 Activate Valuation Areas for Material Ledger

Use
In this step, you activate the material ledger for one or more valuation areas.
If the material ledger is active for a particular valuation area, all materials in the valuation area are
valuated using the material ledger.
Prerequisites
Company code and plant settings must be maintained
Procedure
Transaction Code OMX1

IMG Menu IMG  Controlling -> Product Cost Controlling -> Actual
Costing/Material Ledger -> Activate Valuation Areas for
Material Ledger
The following settings has been done.

Click on Check Material Ledger Settings
Click on Activate Material Ledger as below
Page 52 of 62
SAP ECC 6.0
Result
Required Settings has been done.
3.5.4.2 Assign Currency Types to Material Ledger Type

Use
In this step, you create material ledger types and allocate up to three currency types to each of these
material ledger types.
Prerequisites
Material Ledger Type and Currency Type needs to be set.
Procedure

Costing/Material Ledger -> Assign Currency Types to Material
Ledger Type
Result
Page 53 of 62
SAP ECC 6.0
Assign Material Ledger Types to Valuation Area

Use
In this step, you allocate material ledger types to the valuation areas.
You can only allocate one material ledger type to each valuation area. This must contain the
currency type 10.
You can allocate the same material ledger type to several valuation areas. If you have several valuation
areas within a single company code (that is, when the valuation area corresponds to a plant), you must
assign all valuation areas in this company code to the same material ledger type.
Prerequisites
Materialo Ledger Types and Valuation Areas must be created.
Procedure

Costing/Material Ledger -> Assign Material Ledger Types to
Valuation Area
Result
Page 54 of 62
SAP ECC 6.0
Maintain Number Ranges for Material Ledger Documents

Use
A material ledger document must be clearly identified in the system. This is achieved by saving
each transaction in the material ledger under a unique number.
Prerequisites
Number Ranges needs to be created
Procedure

Costing/Material Ledger -> Maintain Number Ranges for
Material Ledger Documents

a. Number Ranges for Material Ledger Documents
b. Maintain FI Documents
Result
Configure Dynamic Price Changes

Use
Page 55 of 62
SAP ECC 6.0
In this activity, you can specify in each valuation area that a planned price is activated as the
valuation price upon the first goods movement in a new posting period as long as the validity date
of the planned price has been reached.
The planned prices are handled by the system with the following priority:
1. marked standard cost estimates

2. future valuation prices
Prerequisites
Valuation area and company code must be created
Procedure

Costing/Material Ledger -> Configure Dynamic Price Changes
Result
Material Update
3.5.4.6.1 Define Movement Type Groups of Material Ledger

Use
In this step you can define movement type groups for the Material Ledger so that you can then
assign selected material movements to different categories.
Page 56 of 62
SAP ECC 6.0
Prerequisites
No settings has been done
Procedure

Costing/Material Ledger -> Material update -> Define
Movement Type Groups of Material Ledger
Result
No settings has been done
3.5.4.6.2 Assign Movement Type Groups of Material Ledger

Use
In this step you can assign the movement type groups of the material ledger to specific
movement types, so that you can assign selected material movements to different categories.
Prerequisites
Movement Types must be created
Procedure
Transaction Code OMXO

Costing/Material Ledger -> Material update -> Assign
Movement Type Groups of Material Ledger
Result
Standard setting has been maintained.
Page 57 of 62
SAP ECC 6.0
3.5.4.6.3 Define Material Update Structure

Use
In this section, you can define a material update structure.
During the material ledger update, the system collects data from valuation-relevant transactions
such as goods receipts, invoice receipts, and settlement of production orders. This data is
collected in different categories in the material ledger in accordance with the material update
structure.
The influence that these transactions have on the valuation price upon material price
determination depends on the category to which they were assigned. The following categories
are available:
 Receipts
 Consumption
 Other Receipts/Consumption
A receipt always effects the valuation price. With consumption, you can determine whether or not
it has an effect on the valuation price of a material: the category Other receipts/consumption has an
effect, the category Consumption does not.
Prerequisites
Material update structure needs to be created
Procedure

Costing/Material Ledger -> Material update -> Define Material
Update Structure
The following settings has been done
Page 58 of 62
SAP ECC 6.0
Result
3.5.4.6.4 Assign Material Update Structure to a Valuation Area

Use
In this section, you can assign a material update structure to one or more valuation areas.
Prerequisites
Valuation areas needs to be created
Procedure

Costing/Material Ledger -> Material update -> Assign Material
Update Structure to a Valuation Area
Result
Actual Costing
Activate Actual Costing
Use
In this step you can activate, per plant, Actual Costing for materials and activity consumption update in the
quantity structure.
If you use Actual Costing, you can decide whether (in addition to material consumption) activity consumption
and/or processes which are used to produce a material should be updated in the quantity structure in Actual
Costing/Material Ledger.
Depending on the activation type chosen:
Page 59 of 62
SAP ECC 6.0
 Actual consumption is updated in the quantity structure but not considered during price
determination.
You can use this setting if you just want to receive information on the complete actual quantity
structure. Variances between the plan price for the cost center/activity type (or process) and the
actual price calculated at the end of the period can be debited to the cost object at period closing
using the function 'Revaluation at Actual Prices'.
 Actual consumption is updated in the quantity structure and is considered during price
determination.
If you choose this setting, the variances between the plan price and the cost center/activity type (or
process) and the actual price calculated at the end of the period are adjusted subsequently. The
cost center or the process is then credited and the material associated with the consumption is
debited. In the context of multi-level price determination, these variances can be rolled up through
the production structure up to the finished product in the same way that material price variances
are rolled up.
If you choose this setting, you cannot use the function 'Revaluation at Actual Prices' at period
closing in Cost Object Controlling, as the variances from the cost center / process are debited
directly to the material. If you use the function 'Revaluation at Actual Prices' at period closing, the
cost center / process will be credited twice and the materials will be debited twice.
Prerequisites
Valuation areas needs to be created
Procedure

Costing/Material Ledger -> Material update -> Activate Actual
Costing
Result
Page 60 of 62
SAP ECC 6.0
Activate Actual Cost Component Split

Use
In this step you can activate, per plant, Actual Costing for materials and activity consumption update in the
quantity structure.
If you use Actual Costing, you can decide whether (in addition to material consumption) activity consumption
and/or processes which are used to produce a material should be updated in the quantity structure in Actual
Costing/Material Ledger.
Depending on the activation type chosen:
 Actual consumption is updated in the quantity structure but not considered during price
determination.
You can use this setting if you just want to receive information on the complete actual quantity
structure. Variances between the plan price for the cost center/activity type (or process) and the
actual price calculated at the end of the period can be debited to the cost object at period closing
using the function 'Revaluation at Actual Prices'.
 Actual consumption is updated in the quantity structure and is considered during price
determination.
If you choose this setting, the variances between the plan price and the cost center/activity type (or
process) and the actual price calculated at the end of the period are adjusted subsequently. The
cost center or the process is then credited and the material associated with the consumption is
debited. In the context of multi-level price determination, these variances can be rolled up through
the production structure up to the finished product in the same way that material price variances
are rolled up.
If you choose this setting, you cannot use the function 'Revaluation at Actual Prices' at period
closing in Cost Object Controlling, as the variances from the cost center / process are debited
directly to the material. If you use the function 'Revaluation at Actual Prices' at period closing, the
cost center / process will be credited twice and the materials will be debited twice.
Prerequisites
In this step, you can activate the actual cost component split for each valuation area.
Procedure

Costing/Material Ledger -> Material update -> Activate Actual
Page 61 of 62
SAP ECC 6.0
Cost Component Split
Result
Material Ledger Integration with FI
Page 62 of 62

BLUE PRINT - Controlling Configuration

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BLUE PRINT - Controlling Configuration

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SAP ECC 6.

Dated: April, 2008

Document Title: Configuration Document for SAP ECC 6.0

File Name: IMG-CO-2008-04-01

Security Company Confidential

Version No Date of Release Description

VERSION HISTORY DETAILS

Ver. No. / Brief Change Detailed Change Description

© 2004 SpectraSoft Technologies Ltd.

The contents of this document are the property of

SpectraSoft Technologies Ltd and are intended for the

sole purpose of consumption by Shasun Chemicals

and Drugs Limited, Chennai, Reproduction,

distribution, and modification of this document or any

parts thereof, in any form, without the written

permission of SpectraSoft Technologies Ltd are not

permitted. Use of this document or parts thereof for

purposes other than those agreed by SpectraSoft

Technologies Ltd is not permitted.

1. Controlling: Configuration Guide................................................................................................. 6

1. Controlling: Configuration Guide

2.1 Organizational Units

2.1.1.1Maintaining the Controlling Area

2. Maintain the following values in the views described below:

Field name Description M/ User actions and Note

Field name Description M/ User actions and Note

2.1.1.2 Maintaining Versions

 More versions: 1, 2, 3 (plan versions only)

Strictly iterative price

Transaction code OKEQ

2. <General Version Definition> Version 0

Field name Description M/O/C User actions and Note

3. <General Version Definition> Versions 1-3

Field name Description M/O/C User actions and Note

2.1.1.3 Number Ranges for CO Documents

Transaction code KANK

2. Contents of table NRIV:

2.1.1.4 Number Ranges for CO Settlement Documents

2. Contents of table NRIV:

3. Contents of table TKB08:

4. Contents of table TNRGT:

2.1.2 Reconciliation Ledger

2.2 Master Data

2.2.1 Cost Elements

2.2.1.2 Revenue Elements

2.2.2 Cost Centers

Settlement: With which accounts the costs are settled.

Int. The costs are settled with other cost centers.

2.2.2.1 Cost Center Categories

2.2.3 Activity Types

Overview of Cost Centers and Activity Types

2.2.4 Overhead Cost Orders

2.2.4.1 Order Types

Other Order Types

2. <View “Change Order Types”>

SAPS 01 09 X 90 003 024 X Production

2.2.5 Profit Centers

Profit Center Structure and Profit Centers

Profit Center Description

Profit Centers and Accounts

2.2.5.1 Activating Profit Center Accounting

2. <View EC-PCA: Change Controlling Area Settings>

COAr Hierarchy PC Elim. of PC local Currency Transaction

2.2.5.2 Activating Direct Postings