what is cost center accounting in sap co

COST CENTER ACCOUNTING

This is used to view department wise costs we use cost center accounting.

1. Creation of primary cost elements, we can create

A) FI Area                              |

B)CO Area                              |-à Co Area

C)Automatic creation             |

2. Display cost elements created
3. Creation of filed status group by making cost center required entry field
4. Assign new filed status group in GL expenditure accounts
5. Creation of cost centers.
6. Creation of cost center groups.
7. Creation of cost element groups
8. To enter exchange rate for type M for INR to Euro
9. Posting of transaction in FI
10. To view cost center wise report.
11. To view CO documents

1. A) Creation of primary cost element at FI area

Use to FS00 – GL masters creation

Give the GL account number : 400100 Salaries Account

Company code                        : BIL

Form the menu select GL Account display

Now select edit cost element button

Valid from date                      :01.04.2008

To date                                    :31.12.9999 comes automatically

Enter

Cost element category                        : Select 1 (Primary cost / cost reducing revenues)

Select save button or Ctrl+S

1. B) Creation of Primary cost element at CO area:

Use transaction code FS00

Path: Accounting- Controlling- Cost element accounting-Master data-Cost element –Individual processing-Create primary  (Tr.code KA01 )

Cost element               : 400300 Rent Account

Valid from                  :01.04.2008     to 31.12.9999

Enter

Cost element category                        :1 (primary cost /cost reducing revenue)

Save

1. C) Automatic  creation of primary cost elements:

1)      Marked default settings (OKB2)

path : SPRO-Controlling-Cost element accounting-Master data – Cost elements –Automatic creation primary and secondary cost elements-Make default settings.(Tr.code is OKB2)

Give the chart of Accounts : BIL

Enter

Account from              :400301

Account to                  :499999

Cost element category select 1

Save

Press enter to save in your request

Create batch input session (OKB3)

Same path as above

Give the controlling area         : BIL

Valid from                              :01.04.2008

Valid to                                   :31.12.1999

Session name                           :BIL (This is text field)

Execute

Execute batch input session (Tr code is SM35)

Same path as above

Select session name                 : BIL

Select process button

Select session                          :BIL

Select display errors only radio button

Select process button

We get a message processing of batch input session completed.

Ignore the message & select exit batch input button

Display primary cost elements created (KA03)

Path: Accounting-Controlling-Cost element accounting-Mater data-Cost element –Individual processing – Display- (Tr code is KA03)

Select drop down button beside cost element

Give the Controlling area : BIL

Enter

Creation of field status group by making cost center required entry field: (Tr.Code is OBC4)

Select field status variant: BIL

Double click on filed status groups folder

100000 equity share capital G001      We can’t make cost center required for balance sheet accounts

400100 Salaries Account                    G001

                                                            For G004 we make cost center required and assign in salaries account (i.e in expenditure accounts)

Double click on field status group G004 cost accounts

Double click on General data

Text make it required entry field

Select next group button

Cost center select required entry filed

Select next page or page down button two times.

Business area make it option entry filed

Save

Press enter to save in your request

Assign group new field group in GL expenditure accounts (FS00)

Give the GL account 400100 salaries account

Company code                                    :BIL

From the menu select GL account change select create / Bank / Interest tab

Filed status group change to G004

Save

Give the GL Account No.400300 Rent A/c

Company code                                    :BIL   

From the menu select GL account change

Change field status group to G004

Save

Creation of cost centers:

Path: Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual processing-create (Tr.code is KS01)

Cost center                                          : Dept A

Valid from                                          :01.04.2008 to 31.12.9999

Enter

Give the name                                     : Dept A

Give the description                            : Dept A

Person responsible                               :Mr.A

Cost center category                           : Select 1 production

Hierarchy area                                     : select BILHIER

Business area                                       :BILH

Currency                                             :INR

Select save button or Ctrl+S

Ignore the warning message press enter

One more cost center                          : Dept B

Valid from                                          :01.04.2008 to 31.12.9999

Reference cost center                          : Dept A

Controlling area                                  : BIL

Enter

Change the name to Dept B

Change the description to cost center Dept B

Change the person responsible            : Mr B

Other fields are common

Select save button

Ignore the warning message press enter

Cost center                                          : Dept C

Valid from                                          :01.04.2008 to 31.12.9999

Reference cost center                          : Dept A

Controlling area                                  : BIL

Enter

Change the name to                            : Dept C

Change the description to cost center : Dept C

Change person responsible to Mr.C

Cost center category                           : Select to  2 (service cost center)

Select save button or Ctrl+s

Ignore the warning message press enter

 Creation cost center groups:

Hierarchy                                            : BILHIER

Cost centers         Dept A     Dept B    Dept C     Dept X        Dept Y       Dept Z

Category              Production  Prod   Service       Production   Production  Service

Business Area       HYD       HYD     HYD       BGL            BGL          BGL       

If we want to see all cost centers data – BILHIER

If we want to see production cost centers data – Create a cost center group and assign Dept A . Dept B, Dept X and Dept Y.

If we want to see HYD cost centers data cost – cost center group and assign Dept A, Dept b and Dept C

If we want so settled production cost centers data – create  A cost center group and assign Dept A and Dept B

Path : Accounting – Controlling – Cost center accounting – Master data- Cost center group – Create (Tr.code is KSH1)

Give the cost center name       : BILHYD PROD

Enter

Description Hyderabad  production cost centers BIL

Select Edit à Cost Center à Insert cost center button

Select the cost centers Dept A

 Dept B

Save

Creation of cost Element group:

FI : Account groups  Personnel cost	CO:Dept wise personal cost or Administration
400100 salaries	Create cost element group personnel and assign 400100 -400199
400101 Wages
400102 Bonus
400103 Staff welfare and Administration	Create cost element group administration and assign 400300-400399
400300 Rent
400301 Telephone exp
400302 Petrol exp	In the report center Dept A Dept C Or Cost center GRP Cost element Or Cost element GRP personnel administration

  Path: Accounting –Controlling-Cost center accounting-Master data-Cost element group –Create (Transaction code: KAH1)

Cost element group name : BILADMIN

Enter

Description : Administration expenses for BIL

Select insert cost element button (Shift+F4) (Edit –Cost element –Insert cost element)

From 400300 to 400399

Save

To enter exchange rate for type M for INR to EURO (Tr.Code is OB08)

Select new entries button

Exchange rate type                 : M (Average rate)

Valid from                              :01.10.2008

From currency                         : INR

To                                            : EUR

Direct quotation                      :0.02

Select save button or Ctrl+S

Press enter to save in your request

Posting of transaction in FI Transaction code:F-02

Give the document date         : Today’s date

Type                                        :SA

Company code                        :BIL

Posting key                             :40

Account                                  :400100 salaries account

Enter

Give the amount                     :500000

Cost center                              : Dept A

Text                                         :Salaries posting

 One more expenditure

Post key                                  :40

Account                                  :400300 Rent account

Enter

Amount                                   :100000

Cost center                              : Dept A

Text                                         : Rent posting

Posting key                             : 50

Account                                  :200105 SBI current account

Enter

Amount                                   :*

Business area                           :BILH

Text                                         : Expenditure posting

From the menu select Document à Simulate

Select save button or Ctrl+S

To view cost center wise report:

Path: Accounting –Controlling-cost center accounting –Information system-Report for cost center accounting-Line items –Cost centers: Actual line items (Transaction :KSB1)

Cost center select Dept A  (if you want change the posting dates)

Select execute button

Keep the cursor and the first line item

Select document button

Select back arrow

Select change layout button (Ctrl+F8)

Select Document no.under column set

Select value in reporting  currency under displayed columns

Select left arrow or show selected filed button

Select reference document no.under column set

Select value in report current under displayed columns

Select left arrow

Select business transition under column set

Select document no. under displayed columns

Select left arrow

Enter

To view co documents:

Path :Up to reports for costs center accounting path is same -Line items – Co documents :Actual costs (transaction code is KSB5)

Document no.             :1 to 100000

Execute

Select folder button for document no.1

Repost co line items:

Business transaction RKU3

FI doc.13

001      400100 Salaries           500000 Dept A           150000 Dept B

50000 Dept C

Report co line item

002      400300 Rent                           100000 Dept A

003      200105 SBI                             600000

Repost co line item

Transfer document wise /line item  wise , transfer line item wise

No FI document will be generated

Only document will be generated

Path: Accounting – Controlling-Cost center accounting –Actual postings-Report line items-Enter (Transaction code is KB61)

Select document no.   :13

Company code            :BIL

Fiscal year                   :2008

Execute

Double click on line item no.1

Amount under new account assignment 150000

Cost center                  :Dept B

Select new item button

Select next button

Amount under new account assignment 50000

Cost center                  : Dept C

Save

Go and see the cost center report KSB1

Give the cost center    Dept A 

Select execute button

To view cost element wise to total

Select cost element column

Select sub totals button

(Note:That is dues cost element wise total)

Repost costs (Business transaction RKU1)

This is used when we split a cost center in to number of cost centers or wrong cost center postings.

No FI document will be generated

Only CO document will be generated

Transfer cost element wise (GL account wise)

Path : Accounting-Controlling-cost center accounting –Actual postings-manual reporting of costs – Enter (Transaction code is KB11N)

Cost center (old)         : Dept A

Cost element 400100 Salaries

Amount                       :100000

Cost center new          : Dept C

One more cost center (old)     : Dept A

Cost element               :400300 Rent

Amount                       :25000

Cost center (new)        : Dept C

Enter

Select save button or Ctr+S

Period lock:

                                   

	FI	CO
A) Transaction which effect FI and CO eg:COIN	To open	To open
B) Transaction which effect only CO Eg.RKU3, RKU1	No check	To open
C) Transaction which effect only FI Eg.Debit balance sheet and credit balance sheet	To open	No check
	Sept .08 March	Oct 2008 to March 2009

An expenditure posting in FI for September. We can’t post since periods are not open.

Path: Accounting – Controlling-cost center accounting-Environment –Period lock-chang (Tr.code is OKP1)

Controlling area                      : BIL

Fiscal year                               :2008

Select actual button

Select period                           :01

Select lock period button

Save

Set controlling area :(OKKS):

Path :up to Environment the path is same à Set controlling area

Give the controlling area         :BIL

Enter

Real time integration of controlling with FI on line reconciliation ledger

This is used when we get for 2^nd scenario (no.of company codes having one controlling area ) all the company codes should use same Char of Accounts.

Planning cost center wise

Path :Accounting –Controlling cost center accounting –Planning –Cost and Activity inputs –Change (KP06)

Version                        :select 0 (Original budget)

From period                :1

To period                     :12

Fiscal year                   :2008

Select next page or page down button

Cost center group        :BILHIER

Cost element From      :400000

Cost element To          :499999

Free	Form Bsed
If we select radio button	If we select from based radio button
We have to select cost element from the drop down list and plan against the elements	The cost element list in a available on screen plant against cost  elements

Select form based radio button

Select overview screen button

For cost element 400100 Plan Fixed cost 1500000

Distribution key 1 Equal distribution

Select cost element     400100

From the menu select à Goto –Period screen

Select back arrow

Fro cost element 400300 Plan fixed cost 960000

Distribution key  1

To plan for Dept B –Select next combination button

To go back to previous dept –select previous combination button

Save

To view variance report cost center wise

Path :Accounting – Controlling-Cost center accounting –Information system –Reports for cost center accounting –Plan /Actual comparisons –Cost centers: Actual  /Plan/Variance (Tr code is S_ALR_87013611)

Controlling area                      :BIL

Fiscal year                               :2008

From period                            :10

To period                                 :10

Plan version                             :0

Cost center Value                   :Dept A

Execute

Keep the cursor on Salaries A/c actual costs amount 

Select call up report button

Double click on cost centers : Actual line items keep the cursor on the first line item.

Select document button