Sap CO

SAP ControllingConfigurationSAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 2 of 2 SAP R3 ENTERPRISE 47

TABLE OF CONTENTSINTRODUCTION 31 Organizational Structures 411 Maintain Controlling Area 412 Maintain Number Ranges for Controlling Documents 913 Maintain Versions142 Multiple Valuation ApproachesTransfer Prices (Optional)1921 Maintain Currency and Valuation Profile 1922 Assign Currency and Valuation Profile to Controlling Area2223 Create Versions for Valuation Methods2324 Define Valuation Clearing Account2725 Multiple Valuation Approaches Check Execute Activation283 Production Start-Up Preparation3031 Set Update All Currencies Indicator304 Cost Element Accounting3141 Make Default Settings 3142 Create Batch Input Session3343 Execute Batch Input Session355 Reconciliation Ledger 3751 ActivateDeactivate Reconciliation Ledger 3752 Define Adjustment Accounts for Reconciliation Posting 3953 Specify Document Number Range for Reconciliation Posting416 Cost Center Accounting 4261 Define Standard Hierarchy 4262 Define Cost Center Categories4663 Create Cost Center 4864 Define Cost Center Groups 5265 Define Cost Elements for Activity Allocation5466 Create Activity Types 5667 Maintain Statistical Key Figures 587 Cost Center Planning6071 Create Planning Layouts for Cost Element PlanningActivity typeplanningStatistical key figure planning 6072 Define User-Defined Planner Profile 6873 Define Distribution 7374 Create Assessment Cost Elements8075 Define Allocation Structures 8176 Define Assessment 82

77 Define Activity Types for Indirect Activity Allocation 8878 Define Indirect Activity Allocation 9079 Define Splitting Structure988 Actual Postings 10481 Edit Automatic Account Assignment10482 Distribution (KSV1)10583 Assessment10984 Define Indirect Activity Allocation 11285 Define Splitting Structure113SAP CONTROLLING CONFIGURATION 47Page 3 of 3 SAP R3 ENTERPRISE 47INTRODUCTIONWelcome to the SAP FICO Configuration kit We will ensure that we will takeyou by the hand and help you configure both Controlling and Finance Modulefor you In this document we will be configuring the basics of Controlling andalso cover the Cost Center accounting ModuleThe controlling area configuration is the starting point of configuration in theCO module which will enable us to configure profit center product costingand then the profitability analysis moduleIn this document we will configure controlling area 9100 (A Group) To helpus better understand the configuration let us take the below scenarioThe management of A group is desirous of having a single controlling areaso that they can have cross company code controlling A Group is fastexpanding group and will be setting various companies across the globe inthe futureEach company code in the above case will be attached to this controllingarea Currently A Group has only one company called as 9100 (A Ltd) Thiscompany code is attached to controlling area 9100 A group is located inGermany The controlling area currency is configured as group currency EURA Group requires the following modules within controlling to be implemented-1) Cost center accounting2) Product costing3) Profit center accounting4) Profitability analysisSo lets now grind in further of how to configure the basics of controlling andthe Cost Center in this documentSAP CONTROLLING CONFIGURATION 47Page 4 of 4 SAP R3 ENTERPRISE 471 Organizational StructuresFor doing the configuration we use the following path on the SAP applicationscreen-SAP Menu Tools AcceleratedSAP Customizing SPRO - EditProject Configuration for all the modules will be done here The above path willnot be referred henceforth we will directly refer to the IMG node11 Maintain Controlling AreaIMG Controlling General Controlling Organization MaintainControlling Area

Double click Maintain Controlling AreaClick on and update the following fields-SAP CONTROLLING CONFIGURATION 47Page 5 of 5 SAP R3 ENTERPRISE 47Group Currency definition comes from the client currency A currencyneeds to be maintained for the client (when a client is created) intransaction SCC4Update document type SAClick onSAP CONTROLLING CONFIGURATION 47Page 6 of 6 SAP R3 ENTERPRISE 47Click to create a standard hierarchyDouble ClickClick onA grp requires the following modules withing controlling-1) Cost center accounting2) Internal orders (order management)3) Profit center accounting4) Profitability analysis (we will update at a later stage)It does not want activity based costing further it wants commitmentsmanagement to be activatedAccordingly we update the following -SAP CONTROLLING CONFIGURATION 47Page 7 of 7 SAP R3 ENTERPRISE 47Click on SaveDouble Click on to attach company code 9100SAP CONTROLLING CONFIGURATION 47Page 8 of 8 SAP R3 ENTERPRISE 47Click on and update the following -SAP CONTROLLING CONFIGURATION 47Page 9 of 9 SAP R3 ENTERPRISE 47Click on Save12 Maintain Number Ranges for Controlling DocumentsIMG Controlling General Controlling Organization MaintainNumber Ranges for Controlling DocumentsWe will copy number ranges from the SAP delivered controlling area 001Click on Copy and update the following -Click onSAP CONTROLLING CONFIGURATION 47Page 10 of 10 SAP R3 ENTERPRISE 47Note that the number intervals are not included in the customizing requestthey need to be transported manually Click on Interval TransportTo ensure data consistency you should not transport number rangesfor CO documents but rather create them manually in the target systemOr else you can create from scratchClickSAP CONTROLLING CONFIGURATION 47Page 11 of 11 SAP R3 ENTERPRISE 47

Click onNow assign the various business transaction to planning as follows-Position the cursor onClickSelectClickSAP CONTROLLING CONFIGURATION 47Page 12 of 12 SAP R3 ENTERPRISE 47Similarly you have to assign various business transactions to thisgroupFinally the groups along with the business transaction will be asfollows-SAP CONTROLLING CONFIGURATION 47Page 13 of 13 SAP R3 ENTERPRISE 47It is tedious to maintain the number range and number range groupmanually It is better to copy from the SAP controlling area 0001Note To ensure data consistency you should not transport numberranges for CO documents but rather create them manually in the targetsystemSAP CONTROLLING CONFIGURATION 47Page 14 of 14 SAP R3 ENTERPRISE 4713 Maintain VersionsIMG Controlling General Controlling Organization MaintainVersionsClick on Extras Set Controlling areaAnd update 9100 as the controlling areaClickSAP CONTROLLING CONFIGURATION 47Page 15 of 15 SAP R3 ENTERPRISE 47Select Version 0And Double ClickVersion 0 is automatically created in controlling area 9100SelectDouble ClickVersions are automatically created for 5 fiscal yearsSAP CONTROLLING CONFIGURATION 47Page 16 of 16 SAP R3 ENTERPRISE 47Select year 2006 and click on and update the following -Click on and update the following -SAP CONTROLLING CONFIGURATION 47Page 17 of 17 SAP R3 ENTERPRISE 47Click onSAP CONTROLLING CONFIGURATION 47Page 18 of 18 SAP R3 ENTERPRISE 47Update the following-Click on SaveSimilarly update the values for the remaining fiscal yearSAP CONTROLLING CONFIGURATION 47

Page 19 of 19 SAP R3 ENTERPRISE 472 Multiple Valuation ApproachesTransfer Prices (Optional)21 Maintain Currency and Valuation ProfileIMG Controlling General Controlling Multiple ValuationApproachesTransfer Prices Basic Settings Maintain Currency andValuation ProfileWe only need the currency and valuation profiles if we want to managevarious valuations in parallel in our systemWe have to take the following rules into account when we maintain thecurrency and valuation profiles because they are checked when we activatethe CampV profile in the controlling areaManaging the company code currency in legal valuation is mandatoryIn addition we can always manage two further valuation approachesIn valuation we can select among group valuation (1) and profit centervaluation (2)In the currency we can select among company code currency (10) and groupcurrency (30)All valuation approaches we manage in controlling must also be managedcorrespondingly in the material ledger

All standard SAP report in controlling are shown in the reportingcurrency (controlling area currency) to get the object currency (Cocode currency) you will need to define new reportsSAP CONTROLLING CONFIGURATION 47Page 20 of 20 SAP R3 ENTERPRISE 47Click on and update the following -Select andDouble ClickSAP CONTROLLING CONFIGURATION 47Page 21 of 21 SAP R3 ENTERPRISE 47Click on and update the following -Click on SaveSAP CONTROLLING CONFIGURATION 47Page 22 of 22 SAP R3 ENTERPRISE 4722 Assign Currency and Valuation Profile to Controlling AreaIMG Controlling General Controlling Multiple ValuationApproachesTransfer Prices Basic Settings Assign Currency andValuation Profile to Controlling AreaWe assign the currency and valuation profiles with which we want torepresent scenarios for transfer prices to the respective controlling area Forthis purpose we must ensure that the controlling area currency of the affectedcontrolling area corresponds to either the group currency (currency type = 30)or the company code currency (currency type = 10)The assignment of the currency and valuation profiles indicates that wewant to use transfer prices in the controlling area It enables us to createactual versions for different valuationsAssign C+V prof 9100 to controlling area 9100SAP CONTROLLING CONFIGURATION 47Page 23 of 23 SAP R3 ENTERPRISE 47

Click on Save23 Create Versions for Valuation MethodsIMG Controlling General Controlling Multiple ValuationApproachesTransfer Prices Basic Settings Create Versions forValuation MethodsClick onUpdate the following-SAP CONTROLLING CONFIGURATION 47Page 24 of 24 SAP R3 ENTERPRISE 47Click onSelectAnd Double Click onClickUpdate the following-Click onSAP CONTROLLING CONFIGURATION 47Page 25 of 25 SAP R3 ENTERPRISE 47ClickSelectDouble clickSelect Yes to transfer version and update the following -Click on SaveClickSelectDouble clickSAP CONTROLLING CONFIGURATION 47Page 26 of 26 SAP R3 ENTERPRISE 47Click onUpdate the following-SAP CONTROLLING CONFIGURATION 47Page 27 of 27 SAP R3 ENTERPRISE 47Similarly maintain for version D0224 Define Valuation Clearing AccountIMG Controlling General Controlling Multiple ValuationApproachesTransfer Prices Level of Detail Define Valuation ClearingAccountHere we specify profit and loss accounts for valuation differences that arise inbusiness transactions between group companiesWhen we use parallel valuation approachestransfer prices payables andreceivables are only posted using legal valuation since that represents theamount in which the payment is made If however we want to record othervaluation approaches in the valuation clearing account we need to post thedifference to accounts for intercompany profits so that this amount appears inthe group report The system assigns the valuation difference for each item tothe corresponding profit centerWith this function we can designate valuation-clearing accounts in which torecord valuation differences separately for each company code and partnercompany

Update the following -SAP CONTROLLING CONFIGURATION 47Page 28 of 28 SAP R3 ENTERPRISE 47ClickClick onUpdate the following-The trading partner 9200 is the company created for company code 9200Click on Save25 Multiple Valuation Approaches Check ExecuteActivationIMG Controlling General Controlling Multiple ValuationApproachesTransfer Prices Activation Multiple Valuation ApproachesCheckExecute ActivationEnter the controlling area 9100 and click to check activationWe also need to maintain the settings in profit center accountingThereafter we can activate the currency and valuation profileSAP CONTROLLING CONFIGURATION 47Page 29 of 29 SAP R3 ENTERPRISE 47If Plant is assigned to the company code then Material ledger needs tobe activated for the plant Further Material Ledger type needs to beassigned to the valuation areaClick on to check activation The message given is as followsTherefore we need to first maintain the profit center settings and thenexecute this stepAfter maintaining the profit center settings we will get the followingmessageWe need to create result analysis version 0 in the product cost controllingcomponent Nevertheless we can still activate the currency and valuationprofileSAP CONTROLLING CONFIGURATION 47Page 30 of 30 SAP R3 ENTERPRISE 47Select radio button and clickClick3 Production Start-Up Preparation31 Set Update All Currencies IndicatorIMG Controlling General Controlling Production Start-Up PreparationSet Update All Currencies IndicatorIn this step we activate or reset the update all currencies indicator TheUpdate all currencies indicator enables us to reduce the amount of memoryused when posting data to CO objects (for example cost centers or orders)However it only works if our database system compresses empty fields Ifyou are not sure whether your database system compresses empty fields youshould always activate this indicatorThis is automatically set when we create the controlling area which canbe seen belowSAP CONTROLLING CONFIGURATION 47Page 31 of 31 SAP R3 ENTERPRISE 47As such this step is not required

In case it is not set we need to the following stepsClick onRemove the test run and selectClick on4 Cost Element Accounting41 Make Default SettingsIMG Controlling Cost Element Accounting Master Data CostElements Automatic Creation of Primary and Secondary Cost ElementsMake Default SettingsHere we give the cost elements individually or as an interval with thecorresponding cost element category in the default setting The cost elementsare created by a batch input session using this default settingThese defaults are used for automatic generation of primary and secondarycost elementsSAP CONTROLLING CONFIGURATION 47Page 32 of 32 SAP R3 ENTERPRISE 47Update the following -ClickSAP CONTROLLING CONFIGURATION 47Page 33 of 33 SAP R3 ENTERPRISE 47Update the following-Click on Save42 Create Batch Input SessionIMG Controlling Cost Element Accounting Master Data CostElements Automatic Creation of Primary and Secondary Cost ElementsCreate Batch Input SessionHere we generate a batch input session for each controlling area in order tocreate cost elementsThe SAP System determines the chart of accounts to be processed (includingthe cost elements to be created) according to the company code and chart ofaccounts to which the controlling area is assignedSAP CONTROLLING CONFIGURATION 47Page 34 of 34 SAP R3 ENTERPRISE 47Update the following -Click ExecuteSAP CONTROLLING CONFIGURATION 47Page 35 of 35 SAP R3 ENTERPRISE 4743 Execute Batch Input SessionIMG Controlling Cost Element Accounting Master Data CostElements Automatic Creation of Primary and Secondary Cost ElementsExecute Batch Input SessionHere we execute a batch input session and thereby generate cost elementsSAP CONTROLLING CONFIGURATION 47Page 36 of 36 SAP R3 ENTERPRISE 47Select the sessionAnd clickSelect andSelect

SelectDeselectClickClickSAP CONTROLLING CONFIGURATION 47Page 37 of 37 SAP R3 ENTERPRISE 475 Reconciliation Ledger51 ActivateDeactivate Reconciliation LedgerIMG Controlling Cost Element Accounting Reconciliation Ledger ActivateDeactivate Reconciliation LedgerIn the reconciliation ledger the data from Accounting is summarized andvaluated Cost flows occurring exclusively in Controlling (secondary postings)between company code and business area boundaries which are not noted inFinancial Accounting can be passed on through Reconciliation ledger ThusReconciliation between Financial accounting (external) and controlling(internal) is possibleYou do not need the reconciliation ledger in the following situationsno profit and loss accounting using cost of sales accounting occursthere is no interest in cross-application reportsthere is no interest in evaluating cross-company-code and crossbusinessarea postingsControlling area maintenance indicates whether the reconciliation ledger isactivated or deactivated for the controlling areaThis activation step is generally not required if we select cross company costaccounting when maintaining controlling area which can be seen belowSAP CONTROLLING CONFIGURATION 47Page 38 of 38 SAP R3 ENTERPRISE 47In case the reconciliation ledger is still not active we can proceed asfollows-Double ClickUpdate the following -Indicates reco Ledger is activeActivation step is generally notrequired if we select cross companycost accounting when maintainingcontrolling area which can be seenbelowSAP CONTROLLING CONFIGURATION 47Page 39 of 39 SAP R3 ENTERPRISE 47Click on52 Define Adjustment Accounts for Reconciliation PostingIMG Controlling Cost Element Accounting Reconciliation Ledger Define Adjustment Accounts for Reconciliation PostingCreate a GL account in FI for the FI-CO reconciliation In our example wehave created a GL code 450020 FICO Reconciliation accountSAP CONTROLLING CONFIGURATION 47Page 40 of 40 SAP R3 ENTERPRISE 47Double Click

Update chart of accounts YCCA and update the following -Click on SaveDouble ClickSAP CONTROLLING CONFIGURATION 47Page 41 of 41 SAP R3 ENTERPRISE 47Click on Save53 Specify Document Number Range for ReconciliationPostingIMG Controlling Cost Element Accounting Reconciliation Ledger Specify Document Number Range for Reconciliation PostingSAP CONTROLLING CONFIGURATION 47Page 42 of 42 SAP R3 ENTERPRISE 47Click on and update the following -ClickClick6 Cost Center Accounting61 Define Standard HierarchyIMG Controlling Cost Center Accounting Master Data CostCenters Define Standard HierarchyThe hierarchy logic is as followsThe top node (first level) C9100 is the total A group nodeThe second level is the company which is represented by 2 digits 91SAP CONTROLLING CONFIGURATION 47Page 43 of 43 SAP R3 ENTERPRISE 47The third level is the function 01 1048753 Production 02 maintenance etcTherefore we create 9101 as productionAt the fourth level we create the cost centerThus the cost center numbering is 9101000 1048753 Production commonThe first 2 digits from the left 91 represent company codeThe 3rd and 4th digit represents functionThe 5th 6th 7th digit represents running numberUpdate the following-SAP CONTROLLING CONFIGURATION 47Page 44 of 44 SAP R3 ENTERPRISE 47ClickSelect Lower level groupAnd update the following -Click on SaveCreate a lower level node below 91 by position your cursor on 91Click on and select and update thefollowing -SAP CONTROLLING CONFIGURATION 47Page 45 of 45 SAP R3 ENTERPRISE 47Click on SaveCreate another cost center group Position your cursor onClickSelect Group at same level and update thefollowing

SAP CONTROLLING CONFIGURATION 47Page 46 of 46 SAP R3 ENTERPRISE 47Click on SaveSimilarly create other cost center groups which would like this62 Define Cost Center CategoriesIMG Controlling Cost Center Accounting Master Data CostCenters Define Cost Center CategoriesSAP CONTROLLING CONFIGURATION 47Page 47 of 47 SAP R3 ENTERPRISE 47We can define our own cost center categories or use SAP supplied costcenter categoriesThe cost center categories basically help in setting defaults on the costcenter master dataWe will lock actual revenue posting and Planned revenue posting in all ofthe cost center categoriesThe cost center category when selected during the cost center mastercreation defaults this indicator such as Lock actual revenue and lock planrevenueClick onUpdate the following-Click onRename some of the existing cost center categoriesThe total cost center categories are-SAP CONTROLLING CONFIGURATION 47Page 48 of 48 SAP R3 ENTERPRISE 47Click on Save63 Create Cost CenterIMG Controlling Cost Center Accounting Master Data CostCenters Create Cost CentersSAP CONTROLLING CONFIGURATION 47Page 49 of 49 SAP R3 ENTERPRISE 47Double Click onClick on Extras Set controlling areaSAP CONTROLLING CONFIGURATION 47Page 50 of 50 SAP R3 ENTERPRISE 47Update the following -SAP CONTROLLING CONFIGURATION 47Page 51 of 51 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 52 of 52 SAP R3 ENTERPRISE 47Notice that Actual revenues and Plan revenues lock are defaulted Thesedefaults were set in the cost center category AClick on Save64 Define Cost Center GroupsIMG Controlling Cost Center Accounting Master Data CostCenters Define Cost Center GroupsSAP CONTROLLING CONFIGURATION 47Page 53 of 53 SAP R3 ENTERPRISE 47

Double Click and update the following -SAP CONTROLLING CONFIGURATION 47Page 54 of 54 SAP R3 ENTERPRISE 47Update the following -Click on and update the following -Click on Save65 Define Cost Elements for Activity AllocationIMG Controlling Cost Center Accounting Master Data ActivityTypes Define Cost Elements for Activity AllocationSAP CONTROLLING CONFIGURATION 47Page 55 of 55 SAP R3 ENTERPRISE 47Double Click and update the following-SAP CONTROLLING CONFIGURATION 47Page 56 of 56 SAP R3 ENTERPRISE 47Click on Save66 Create Activity TypesIMG Controlling Cost Center Accounting Master Data ActivityTypes Create Activity TypesSAP CONTROLLING CONFIGURATION 47Page 57 of 57 SAP R3 ENTERPRISE 47Double click and update the following-SAP CONTROLLING CONFIGURATION 47Page 58 of 58 SAP R3 ENTERPRISE 47Click on Save67 Maintain Statistical Key FiguresIMG Controlling Cost Center Accounting Master Data StatisticalKey Figures Maintain Statistical Key FiguresSAP CONTROLLING CONFIGURATION 47Page 59 of 59 SAP R3 ENTERPRISE 47Double Click onUpdate the following -SAP CONTROLLING CONFIGURATION 47Page 60 of 60 SAP R3 ENTERPRISE 47Click on Save7 Cost Center Planning71 Create Planning Layouts for Cost ElementPlanningActivity type planningStatistical key figureplanningIMG Controlling Cost Center Accounting Planning ManualPlanning User-Defined Planning Layouts Create Planning Layouts forCost Element PlanningActivity type planningStatistical key figureSAP CONTROLLING CONFIGURATION 47Page 61 of 61 SAP R3 ENTERPRISE 47Double Click and update the following -Click onSAP CONTROLLING CONFIGURATION 47Page 62 of 62 SAP R3 ENTERPRISE 47

Click Edit Gen Data selectionSelectClickSAP CONTROLLING CONFIGURATION 47Page 63 of 63 SAP R3 ENTERPRISE 47ClickDouble ClickSelect and transfer to selected characteristicsSAP CONTROLLING CONFIGURATION 47Page 64 of 64 SAP R3 ENTERPRISE 47Click onSelectClickDouble ClickSAP CONTROLLING CONFIGURATION 47Page 65 of 65 SAP R3 ENTERPRISE 47And select in key figureClickDouble Click on the column nextAnd selectClickSelect distribution keySAP CONTROLLING CONFIGURATION 47Page 66 of 66 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 67 of 67 SAP R3 ENTERPRISE 47ClickClickDouble Click on Column next to DistSelectSelectSAP CONTROLLING CONFIGURATION 47Page 68 of 68 SAP R3 ENTERPRISE 47Click on and update the following -ClickClick to check the report If there are no errors then you can save theplanning layoutClick on72 Define User-Defined Planner ProfileIMG Controlling Cost Center Accounting Planning ManualPlanning Define User-Defined Planner ProfilesSAP CONTROLLING CONFIGURATION 47Page 69 of 69 SAP R3 ENTERPRISE 47SelectClick CopyAnd update the following -ClickClick

SAP CONTROLLING CONFIGURATION 47Page 70 of 70 SAP R3 ENTERPRISE 47Click on SaveSelectDouble Click and change the distribution keys from 2to 1Click on SaveSelectDouble ClickDelete the SAP layouts by selectingSAP CONTROLLING CONFIGURATION 47Page 71 of 71 SAP R3 ENTERPRISE 47Click onClick on and update the following -Click on SaveSelectDouble Click and update the following -SAP CONTROLLING CONFIGURATION 47Page 72 of 72 SAP R3 ENTERPRISE 47Click on SaveSAP CONTROLLING CONFIGURATION 47Page 73 of 73 SAP R3 ENTERPRISE 47Click on73 Define DistributionIMG Controlling Cost Center Accounting Planning Allocations Distribution Define DistributionDistribution is an allocation method which uses the original costelement of the sender cost center to the receiver cost center Thus onlyprimary costs can be allocated using distribution cycleSAP CONTROLLING CONFIGURATION 47Page 74 of 74 SAP R3 ENTERPRISE 47Double ClickClick extras Set controlling area and update 9100Update the following -The naming convention of a cycle should be logical It should have P forplan cycle A for actual cycle91PDCP 1048753 91 is the co code PDC 1048753 Production common and P is planIterative and object currency is defaultedSAP CONTROLLING CONFIGURATION 47Page 75 of 75 SAP R3 ENTERPRISE 47Click onIn sender values we have the following rules-1) Posted amounts - The posted amounts on the sender serve as thesender values2) Fixed amounts - You define fixed amounts for senders defined in theselection Criteria on the Sender Values screen The senders arecredited directly with these amounts3) Fixed rates - On the Sender Values screen you enter fixed prices for

the senders you entered in the selection criteria These prices aremultiplied by the receiver tracing factors and the result allocated to thereceiversIn receiver tracing factor we have various options-1) Variable portions ndash The tracing factors are determined based on thefollowing parameters - Plan statistical key figures Plan activity plancosts plan consumption2) Fixed amounts ndash We can define fixed amounts in the tracing factorscreen The receivers are charged directly with these amounts Theamount credited to the sender is derived from the total of the receiverdebits The rule for determining the sender values is not used hereSAP system ignores posted sender amounts or defined senderamountsSAP CONTROLLING CONFIGURATION 47Page 76 of 76 SAP R3 ENTERPRISE 473) Fixed percentage - We define fixed percentages for the receiver in thetracing factor screen The value from the sender is distributed to thereceivers according to this percentage The total receiver tracing factormust not exceed 100 The sender based must be fully distributed Ifthe total of the receiver tracing factors is less than 100 then a portionof the sender value remains on the sender4) Fixed portions - This process is similar to the fixed percentage processwith the exception that the amount is not limited to 100 The senderbase is derived from the total of the receiver tracing factorsWe will use posted amounts for sender values and fixed portion for receivertracing factorsSAP CONTROLLING CONFIGURATION 47Page 77 of 77 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 78 of 78 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 79 of 79 SAP R3 ENTERPRISE 47You can attach further segments if you wantClickClick on to check the cycleClick on SaveSAP CONTROLLING CONFIGURATION 47Page 80 of 80 SAP R3 ENTERPRISE 4774 Create Assessment Cost ElementsIMG Controlling Cost Center Accounting Planning Allocations Assessment Create Assessment Cost ElementsUpdate the following -SAP CONTROLLING CONFIGURATION 47Page 81 of 81 SAP R3 ENTERPRISE 47Click on Save75 Define Allocation StructuresIMG Controlling Cost Center Accounting Planning Allocations Assessment Define Allocation Structures

If the assessment for each segment is not made with a pre-definedassessment cost element you can assign the source cost elements to thedesired Assessment cost element in the allocation structure During cycledefinition enter the allocation structure instead of an assessment costelement in the segmentAn allocation structure for the assessment consists of at least oneassignment stating the assessment cost element to which the source elementis assigned The original cost elements will already have assignments in thesourceIn our scenario we are not using the allocation structureSAP CONTROLLING CONFIGURATION 47Page 82 of 82 SAP R3 ENTERPRISE 4776 Define AssessmentIMG Controlling Cost Center Accounting Planning Allocations Assessment Define AssessmentAssessment is a method of allocation which allocates costs usingassessment cost element Thus there in no traceability of original costelements on the receiver cost center from the sender cost centerVarious Costs elements from the sender are summarized under a singleassessment cost element The assessment cost elements are updatedboth on the sender and receiverWe are allocating costs from purchasing department to the productiondepartments based on output of production departments The output isentered as statistical key figuresDouble ClickSAP CONTROLLING CONFIGURATION 47Page 83 of 83 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 84 of 84 SAP R3 ENTERPRISE 47Click onSAP CONTROLLING CONFIGURATION 47Page 85 of 85 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 86 of 86 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 87 of 87 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 88 of 88 SAP R3 ENTERPRISE 47Click onClick on to see whether cycle is OkClick on Save77 Define Activity Types for Indirect Activity AllocationIMG Controlling Cost Center Accounting Planning Allocations Activity Allocation Indirect Activity Allocation Define Activity Types forIndirect Activity AllocationSAP CONTROLLING CONFIGURATION 47Page 89 of 89 SAP R3 ENTERPRISE 47Double Click

Update the following -SAP CONTROLLING CONFIGURATION 47Page 90 of 90 SAP R3 ENTERPRISE 47Click on Save78 Define Indirect Activity AllocationIMG Controlling Cost Center Accounting Planning Allocations Activity Allocation Indirect Activity Allocation Define Indirect ActivityAllocationIndirect activity allocation is used when direct activity allocation is notpossible For example- Quality control departments spending time onchecking the finished goods semi finished goods It is difficult to measure thetime spent on each product In such a scenario indirect activity allocation isdone based on the output produced of finished goods and semi finishedgoodsSAP CONTROLLING CONFIGURATION 47Page 91 of 91 SAP R3 ENTERPRISE 47Price= 70 INR hrActivity quantity = 10000 hrQty Qty7000 3000Thus Quality cost center has a cost of 70000 INR (70 INR X 10000 hr)This cost will be allocated to finished goods production order based on theoutput (70000 INR X 7000 qty) 10000 qty = 49000 INRAnd to semi finished goods production order (70000 INR X 3000 qty) 10000qty = 21000 INRWe are creating a cycle for allocating costs from Cooling services General toCooling services EG-1 and EG-2The planned output will be entered on cooling services general using activitytype 3UTCG1 (Here the total cost to be allocated will be entered with price 1)The output will be entered on the Cooling services EG-1 and EG-2 usingStatistical key figuresDouble ClickWe will name the cycle 91CGP (91 the company code CG ndash Cooling servicesgeneral 1st cycle and P ndash Plan)Quality cost centerFinished goodsproduction orderSemi Finished goodsproduction orderSAP CONTROLLING CONFIGURATION 47Page 92 of 92 SAP R3 ENTERPRISE 47Update the following -SAP CONTROLLING CONFIGURATION 47Page 93 of 93 SAP R3 ENTERPRISE 47Click onThe following options are available in Sender values-1) Posted quantities- The quantities posted to the sender are taken as thesender values

2) Fixed quantities ndash On the sender value tab enter fixed quantities forthe senders we defined in the selection criteria The senders aredirectly credited with these quantities3) Quantities calculated inversely ndash The sender values are calculatedindirectly from the receiver tracing factors We can valuate thesesender values with a weighting factor We define the weighting factorson the Sender values tabThe following options are available in Receiver tracing factor-1) Variable portions- The tracing factors are determined based on thefollowing parameters- Plan statistical key figures Plan activity plancosts plan consumption2) Fixed quantities ndash We can define fixed quantities in the tracing factorscreen The receivers are charged directly with these quantities Thequantity credited to the sender is derived from the total of the receiverdebits3) Fixed percentages ndash We define fixed percentages for the receiver inthe tracing factor screen The quantity from the sender is distributed tothe receivers according to this percentage The total receiver tracingfactor must not exceed 100 The sender based must be fullydistributed If the total of the receiver tracing factors is less than 100then a portion of the sender value remains on the sender4) Fixed portions ndash This process is similar to the fixed percentageprocess with the exception that the quantity is not limited to 100 Thesender base is derived from the total of the receiver tracing factorsSAP CONTROLLING CONFIGURATION 47Page 94 of 94 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 95 of 95 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 96 of 96 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 97 of 97 SAP R3 ENTERPRISE 47SAP CONTROLLING CONFIGURATION 47Page 98 of 98 SAP R3 ENTERPRISE 47ClickClick on to check the cycleClick on Save79 Define Splitting StructureIMG Controlling Cost Center Accounting Planning Allocations Activity Allocation Splitting Define Splitting StructureNeed for a splitting structure- If a cost center is rendering 2 activities (whichare activity independent) then we need to apportion the costs of the costcenter to these activities If we do not define a splitting structure SAP systemwill divide the costs equally between these activity types In case you donrsquotwant this to happen we need to define the splitting structure Thus in splittingstructure we define which cost elements will get allocated to which activitytypeThis applies to both plan and actual costsSAP CONTROLLING CONFIGURATION 47

Page 99 of 99 SAP R3 ENTERPRISE 47A splitting structure consists of one or more assignments which define theconnection between the cost element(s) or cost element group to be split andthe splitting rule used to divide the costsEach splitting rule is based on a splitting method Based on the splittingmethods which are fixed in the R3 System we can split plan costs accordingto the following criteriaActivity quantityEquivalence numberCapacityOutputScheduled activityStatistical key figure (quantity)Statistical key figure (maximum quantity)No splitting is executedAfter we define a splitting structure we must assign it to the cost centers onwhich we want to split costs according to the given rules We can assign astructure toAll cost centersAll cost centers in a given groupAll cost centers in a given intervalThe structure can apply to a single version or to all versions in a controllingarea for a fiscal yearClick on and update the following -SAP CONTROLLING CONFIGURATION 47Page 100 of 100 SAP R3 ENTERPRISE 47Click on SaveCreate splitting ruleDouble ClickClick on and update the following -SAP CONTROLLING CONFIGURATION 47Page 101 of 101 SAP R3 ENTERPRISE 47Click on SaveClick twiceSAP CONTROLLING CONFIGURATION 47Page 102 of 102 SAP R3 ENTERPRISE 47Assign the splitting structure to ruleSelectDouble ClickClick on and update the following -SAP CONTROLLING CONFIGURATION 47Page 103 of 103 SAP R3 ENTERPRISE 47SelectDouble ClickClick on and update the following -SAP CONTROLLING CONFIGURATION 47Page 104 of 104 SAP R3 ENTERPRISE 47Click on Save

ClickSelectDouble ClickClick on and update the following -Click on Save8 Actual Postings81 Edit Automatic Account AssignmentIMG Controlling Cost Center Accounting Actual Postings ManualActual Postings Edit Automatic Account Assignment (OKB9)Here we define automatic additional account assignments for postings toprimary cost elementsAutomatic assignment occurs during postings in external accounting (withinthe FI MM or SD components) if we did not enter a CO account assignmentobject (cost center order or project) for a cost accounting relevant postingThis always happens in SAP in case of automatically created line itemExamples of Automatically Created Items are-Discounts exchange rate differences and banking fees in FISAP CONTROLLING CONFIGURATION 47Page 105 of 105 SAP R3 ENTERPRISE 47Price differences and minor differences in MMPossible automatic additional account assignments includeCost centerOrderProfit center (for revenue postings)Account assignment can be made mandatory for business area valuationarea or the profit center level We need to select the relevant mandatoryaccount assignmentsBank charges should be defaulted to a particular cost center In our caseBank charges GL code is 470103 and should be defaulted to CompanyGeneral profit center 9118000Click on and update the following -Click on Save82 Distribution (KSV1)IMG Controlling Cost Center Accounting Actual Postings Period-End Closing Distribution Define DistributionYou can copy the plan distribution cycle into actual cyclesYou can also use transaction code KSV1 to create actual distribution cycleSAP CONTROLLING CONFIGURATION 47Page 106 of 106 SAP R3 ENTERPRISE 47Double clickUpdate the following-You need to suffix the actual cycle with ASAP CONTROLLING CONFIGURATION 47Page 107 of 107 SAP R3 ENTERPRISE 47ClickClickSAP CONTROLLING CONFIGURATION 47Page 108 of 108 SAP R3 ENTERPRISE 47

Double clickSAP CONTROLLING CONFIGURATION 47Page 109 of 109 SAP R3 ENTERPRISE 47ClickClick on83 AssessmentIMG Controlling Cost Center Accounting Actual Postings Period-End Closing AssessmentMaintain AssessmentYou can copy the plan assessment cycle into actual cyclesSAP CONTROLLING CONFIGURATION 47Page 110 of 110 SAP R3 ENTERPRISE 47Double clickThe actual cycle name should be suffixed with AClickClickSAP CONTROLLING CONFIGURATION 47Page 111 of 111 SAP R3 ENTERPRISE 47Double clickSAP CONTROLLING CONFIGURATION 47Page 112 of 112 SAP R3 ENTERPRISE 47Change toClickClick on84 Define Indirect Activity AllocationIMG Controlling Cost Center Accounting Actual Postings Period-End Closing Activity Allocation Indirect Activity Allocation DefineIndirect Activity AllocationYou can copy the plan indirect activity cycle into actual cyclesSAP CONTROLLING CONFIGURATION 47Page 113 of 113 SAP R3 ENTERPRISE 4785 Define Splitting StructureIMG Controlling Cost Center Accounting Actual Postings Period-End Closing Activity Allocation Splitting Define Splitting StructureConfiguration similar to plan Splitting structure

77 Define Activity Types for Indirect Activity Allocation 8878 Define Indirect Activity Allocation 9079 Define Splitting Structure988 Actual Postings 10481 Edit Automatic Account Assignment10482 Distribution (KSV1)10583 Assessment10984 Define Indirect Activity Allocation 11285 Define Splitting Structure113SAP CONTROLLING CONFIGURATION 47Page 3 of 3 SAP R3 ENTERPRISE 47INTRODUCTIONWelcome to the SAP FICO Configuration kit We will ensure that we will takeyou by the hand and help you configure both Controlling and Finance Modulefor you In this document we will be configuring the basics of Controlling andalso cover the Cost Center accounting ModuleThe controlling area configuration is the starting point of configuration in theCO module which will enable us to configure profit center product costingand then the profitability analysis moduleIn this document we will configure controlling area 9100 (A Group) To helpus better understand the configuration let us take the below scenarioThe management of A group is desirous of having a single controlling areaso that they can have cross company code controlling A Group is fastexpanding group and will be setting various companies across the globe inthe futureEach company code in the above case will be attached to this controllingarea Currently A Group has only one company called as 9100 (A Ltd) Thiscompany code is attached to controlling area 9100 A group is located inGermany The controlling area currency is configured as group currency EURA Group requires the following modules within controlling to be implemented-1) Cost center accounting2) Product costing3) Profit center accounting4) Profitability analysisSo lets now grind in further of how to configure the basics of controlling andthe Cost Center in this documentSAP CONTROLLING CONFIGURATION 47Page 4 of 4 SAP R3 ENTERPRISE 471 Organizational StructuresFor doing the configuration we use the following path on the SAP applicationscreen-SAP Menu Tools AcceleratedSAP Customizing SPRO - EditProject Configuration for all the modules will be done here The above path willnot be referred henceforth we will directly refer to the IMG node11 Maintain Controlling AreaIMG Controlling General Controlling Organization MaintainControlling Area






















































































































































































































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