CONTROLLING: Cost Accounting and Management Accounting

FI-Finance: To generate external reports (PL, B/S, Tax Reports)

CO-Controlling: Internal Reporting Purpose
Planning of expenses, regular expenses, non-regular budgeting
Budgeting
1. Cost Element
2. Cost Center
3. Profit Center
4. Internal Orders

Configuration:
For manual creation:
1. Maintain Controlling Area - OKKP
2. Maintain number ranges for controlling - KANK
3. Maintain Version - OKEQ

COST ELEMENT:
GL: General Ledger does not have any integration between FI-CO
When we transfer these GLs from FI to CO, they are called cost element
1. Primary Cost element (GLs which are created in FI)Income and Expenses
2. Secondary Cost Element
created in CO, is used for reporting or assessment purpose

Options available:
1. Manual creation of cost element: FS00/KA01: To create cost elements
2. Automatic creation of cost element - OKB2

Class 42:
Config for automatic creation:
Automatic creation of Primary and Secondary Cost Elements:
Make default settings - OKB2 (Give ranges for diiferent Cost Elem. categories)
Create Batch Input Session - OKB3
Execute Batch Input Session - SM35 (Esc and Enter to skip errors and process the
rest of the batch)

End user activity:

Create Cost Element Group - KAH1
TOTALCOST Total Cost - VRL1
ADMIN_COST Administration Cost
400200-401199
MATERIAL_COST Material Cost
400000-400199

Cost Center Accounting

Used to plan regular expenses, salary, rent, telephone
Cost Center = Department
HR
SALES
PROD

COST CENTER HIERARCHY OR GROUP

PLAN SALARY COST = 1500000
ADMIN
HR COST CENTER - SENDER COST CENTER (DISTRIBUTE THE SALARY TO ALL COST
CENTERS)
RECRUITMENT RECEIVER COST CENTER 5 (employees)
FMS RECEIVER COST CENTER 7
CORPORATE
 CORPORATE COMM RECEIVER COST CENTER 3
PRODUCTION
LAPTOP AND DESKTOP PRODUCTION RECEIVER COST CENTER 30
SERVICES
CANTEEN RECEIVER COST CENTER 2
LEGAL RECEIVER COST CENTER 4
TRAINING RECEIVER COST CENTER 8

Distribution cycle:
1. Statistical Key Figures (SKF) and Activity Unit (AU) - creation of unit of
measure
2. Distribution Cycle - assigning of cost center, cost element and statistical key
figure
3. Input of total cost (Planning cost)
4. Input number of employees in Cost Center
5. Execute or run the distribution cycle
6. See the cost center report
7. Post the actual expenses

Configuration:
Define Standard Hierarchy - OKEON (create ADMIN, CORPORATE, PRODUCTION, SERVICES
and the sub-groups)
Create Cost Center - KS01 (can be alphanumeric; create cost centers under ADMIN,
CORPORATE, etc. here)
Create SKF - KK01 (create SKF EMPLOY for No. of Employees)
Define Distribution Cycle - KSV7