CASE STUDY

Controlling Case Study

Product Costing (CO-PC)
This case study explains an integrated product costing process in detail
and thus fosters a thorough understanding of each process step and
underlying SAP functionality.

Product MOTIVATION PREREQUISITES

S/4HANA 1809 The data entry requirements in the Before you use this case study, you
Global Bike controlling exercises (CO 1 should be familiar with navigation in
thorough CO 3) were minimized the SAP system.
GUI 7.50 because much of the data was
stored in the SAP system. This In order to successfully work through
Level stored data, known as master data, this case study, it is not necessary to
simplifies the processing of have finished the CO exercises (CO
Undergraduate
business transactions. 1 through CO 3). However, it is
Graduate
recommended.
Beginner
In this case study, we create a
variant of an existing product in NOTES
Focus order to calculate associated costs.
This case study uses the Global Bike
Product Costing The cost estimate for this new bike
(GBI) data set, which has exclusively
version was initiated by the sales
been created for SAP UA global
Author department, which plans on
curricula.
Michael Boldau running a sales campaign with a
Stefan Weidner special edition of this bike. After
the new material is created in the
system, existing bills of materials
Version and routings need to be copied
3.3 and modified.

Last Update After the material has been

created the product cost estimate
May 2019
is calculated.

© SAP SE / SAP UCC Magdeburg

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Process Overview

Learning Objective Understand and perform a product costing process. Time 55 min
Scenario In order to perform a product costing process you will take on
different roles within the GBI company, e.g. production data administrator,
cost accountant or chief accountant. Overall, you will be working in the
Production Planning (PP) and the Controlling (CO) departments.
Employees involved Jermain Kumins (Production Data Administrator)
Jamie Shamblin (Cost Accountant)
Shuyuan Chen (Chief Accountant)

You start the product costing process by creating a slightly changed version of your top-selling
Deluxe Touring bike. As you plan to manufacture and sell a white color in the future, you create
new finished goods and necessary raw materials. The bill of material and routing are changed
accordingly. Prices are calculated for the new frame and then released.

Table of Contents
Process Overview .................................................................................................................. 2
Step 1: Create Variant Finished Good for Product Costing .................................................. 4
Step 2: Create Variant Raw Material for Product Costing .................................................... 6
Step 3: Create Bill of Material for Product Costing .............................................................. 7
Step 4: Create Routing for Product Costing .......................................................................... 9
Step 5: Create Cost Estimate ............................................................................................... 12
Step 6: Mark Price Updates ................................................................................................. 14
Step 7: View Prices Changes .............................................................................................. 16
Step 8: Release Price Updates ............................................................................................. 17

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Step 9: View Prices ............................................................................................................. 18

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Step 1: Create Variant Finished Good for Product Costing

Task Create a variant of the Deluxe Touring Bike (black). Time 10 min
Short Description Create a variant of the Deluxe Touring Bike (black) for
product costing. In order to do so, you will create a new product while
copying the data from your Deluxe Touring Bike (black).
Name (Position) Jermain Kumins (Production Data Administrator)

To create a product, follow the menu path: Menu path

Logistics ► Materials Management ► Material Master ► Material ►

Create (Special) ► Finished Product
This will produce the following screen.

Create material DXTR4### (replace ### with your assigned number), DXTR4###
Mechanical Engineering,
choose Industry sector Mechanical Engineering and enter DXTR1### DXTR1###

under Copy from. Click on or press Enter now.

On the next screen, select the following views by clicking on the square in
front of the respective rows:
Basic Data 1
- Basic Data 1 - Basic Data 2 Basic Data 2
Accounting 1
- Accounting 1 - Accounting 2 Accounting 2
Costing 1
- Costing 1 - Costing 2 Costing 2

Create views selected

Also, select Create views selected. Then, click on .

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On the Organizational Levels screen, enter plant DL00 (Dallas) and DL00 DL00, DL00
under Copy From. Compare with the screen shown below. Then, click on
.

On the Basic Data 1 tab, change the material description to Deluxe Touring Deluxe Touring Bike
(white)
Bike (white). On the tab Accounting 1 enter 1400.00 as Standard Price. 1400.00

Then, click on to save your material.

Click on the exit icon to return to the SAP Easy Access screen.

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Step 2: Create Variant Raw Material for Product Costing

Task Create a new raw material for your variant bike. Time 5 min
Short Description Create a white frame as a new material. It will be used
later in the BOM of your new Deluxe Touring Bike (white)
Name (Position) Jermain Kumins (Production Data Administrator)

To create a new raw material, follow the menu path: Menu path

Logistics ► Materials Management ► Material Master ► Material ►

Create (Special) ► Raw Material

Create raw material TRFR4###, choose Industry sector Mechanical TRFR4###

Mechanical Engineering
TRFR1###
Engineering and enter TRFR1### under Copy from. Click on
or press Enter now.

On the next screen, select the following views by clicking on the square in
front of the respective rows:
Basic Data 1
- Basic Data 1 - Basic Data 2 Basic Data 2
Accounting 1
- Accounting 1 - Accounting 2 Accounting 2
Costing 1
- Costing 1 - Costing 2 Costing 2

Create views selected

Also, select Create views selected. Then, click on .

On the Organizational Levels screen, enter plant Dallas (DL00) and DL00 DL00, DL00

under Copy From. Then, click on .

On the Basic Data 1 tab, change the material description to Touring Frame- Touring Frame-White

White. Then, click on to save your material.

Click on the exit icon to return to the SAP Easy Access screen.

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Step 3: Create Bill of Material for Product Costing

Task Create a new BOM for your Deluxe Touring Bike (white). Time 5 min
Short Description Create a new BOM for your Deluxe Touring Bike (white)
to be used in the product costing process.
Name (Position) Jermain Kumins (Production Data Administrator)

To create a bill of material, follow the menu path: Menu path

Logistics ► Production ► Master Data ► Bills of Material ► Bill of

Material ► Material BOM ► Create

On the following screen, enter material DXTR4###, plant Dallas (DL00) DXTR4###, DL00
6
and select Costing (6) as BOM usage. Compare with the screen shown
below. Then, click on or hit F7.

Note Bill of Material (BOM) contains the components, which are to be

included in the production of a material. BOMs are used in MRP,
production, procurement, and for product costing.

On the Copy From screen, enter material DXTR1###, DL00 as plant and 1 DXTR1###, DL00, 1
for the BOM Usage. If you select the BOM Usage search drop down, make
sure that you select the 1 entry from plant DL00.

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Now, click on .

Copy the bill of materials by clicking first and then .

Your screen should look similar to the one shown in the picture above.
TRFR4###
Change the component of item 20 to the new frame previously created
(TRFR4###) and then hit Enter to see the updated description, next click on

Click on the exit icon to return to the SAP Easy Access screen.

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Step 4: Create Routing for Product Costing

Task Create a new routing for your Deluxe Touring Bike (white). Time 5 min
Short Description Create a new routing for your Deluxe Touring Bike
(white) to be used later in the product costing process.
Name (Position) Jermain Kumins (Production Data Administrator)

To create the routing, follow the menu path: Menu path

Logistics ► Production ► Master Data ► Routings ► Routings ►

Standard Routings ► Create
This will produce the following screen.

Note Routings contain the steps that are necessary for production and these
steps are called operations. Routings include the sequence in which the
operations occur, and the work centers at which the operations are to be
executed.

DXTR4###, DL00
Enter your material DXTR4### and plant DL00. Then, click on .

Make sure that Routing is selected on the Select Type screen and click on Routing

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On the following screen enter the material number of your black Deluxe
Touring Bike (DXTR1###). Plant DL00 should already show up, if not enter
it. DXTR1###, DL00

Again, click on .This will produce the following screen.

Set the Overall Status to 4 Released (general) and press Enter. 4

You can see all the operations necessary to assemble your bike. Make sure
the changed BOM is already in effect by selecting operation 10 and clicking

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. The white frame previously created should be listed as item

number 20.

Now, click on .

Click on the exit icon to return to the SAP Easy Access screen.

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Step 5: Create Cost Estimate

Task Create a cost estimate for your bike. Time 10 min

Short Description Create a cost estimate for your white Deluxe Touring
Bike and review the cost components.
Name (Position) Jamie Shamblin (Cost Accountant)

Product costing calculates the cost of goods manufactured and the cost of
goods sold per product unit. Products are costed automatically using bills of
materials and routings from Production Planning.

To estimate costs, follow the menu path: Menu path

Accounting ► Controlling ► Product Cost Controlling ► Product

Cost Planning ► Material Costing ► Cost Estimate with Quantity
Structure ► Create

On the Create Material Cost Estimate with Quantity Structure screen,

DXTR4###, DL00
choose your bike DXTR4### and plant DL00.
Standard Cost Est.
On the Costing Data tab, choose Standard Cost Est. as the Costing Variant
via the F4-Help, Costing Version 01 and 1 as the Costing Lot Size. 01, 1

Compare with the screen shown below.

Press Enter. If the following yellow warning message occur, press again
Enter.

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On the Dates tab, change the Costing Date From to the current date and Current date
press Enter to confirm all other date entries. The system now calculates the
material based on the bills of material and the routings.

Material costs of 732.05 USD are calculated for the Deluxe Touring Bike.

To display the exact cost components, select or More ► Costs ►

Display Cost Components. Select again and Choose Layout....
Select the Cost Component Groups.

Select to save your costing.

Click to navigate back to the SAP Easy Access menu.

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Step 6: Mark Price Updates

Task Mark the standard cost estimate. Time 5 min

Short Description Transfer the cost estimate to the material master record.
Name (Position) Jamie Shamblin (Cost Accountant)

The Price Update function is used to transfer the calculated product cost as a
cost estimate to the material master record. The cost is transferred in two
steps: Marking and release.

To mark prices, follow the menu path: Menu path

Logistics ► Production ► Product Cost Planning ► Material Costing

► Price Update

Enter the current period (current month), company code US00, plant DL00 Current period, US00
DL00, DXTR4###
and your bike DXTR4###.

Remove the indicator from the Test Run field. Execute the marking by Test Run

selecting

The system should display the following message:

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Click until you reach the SAP Easy Access Menu.

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Step 7: View Prices Changes

Task View the planned price. Time 5 min

Short Description View the planned price in the material master record of
your white Deluxe Touring Bike.
Name (Position) Shuyuan Chen (Chief Accountant)

To view prices, follow the menu path: Menu path

Logistics ► Materials Management ► Material Master ► Material ►

Display ► Display Current

Choose your Material and Enter. Select only the Costing 2 view. Hit enter DXTR4###
DL00
then enter plant DL00. Hit enter again and the market future price is
displayed in the left costing column (Future). Compare with the screenshot
shown below.

Click on the exit icon to return to the SAP Easy Access Menu.

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Step 8: Release Price Updates

Task Release the price updates. Time 5 min

Short Description Release the price updates.
Name (Position) Shuyuan Chen (Chief Accountant)

To update the price, follow the menu path: Menu path

Logistics ► Production ► Product Cost Planning ► Material Costing

► Price Update

Select . Choose the current period, company code US00, plant Current period, US00
DL00, DXTR4###
DL00 and your bike DXTR4###. Remove the Test Run indicator and release Test Run

the price by selecting . Compare with the screen below:

Click on . You should find your material in the Price Update: Release
Standard Price screen.

Click on the exit icon until you return to the SAP Easy Access screen.

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Step 9: View Prices

Task Review the current prices. Time 5 min

Short Description View the current prices.
Name (Position) Shuyuan Chen (Chief Accountant)

To view prices, follow the menu path: Menu path

Logistics ► Materials Management ► Material Master ► Material ►

Display ► Display Current

Choose your Material. Choose Costing 2 in the select views. Hit Enter. Enter
DL00
plant DL00. Hit Enter again.

The planned price that you have released is displayed in the middle column
Current as a planned and standard price for the current period.

Click on the exit icon to return to the SAP Easy Access screen.

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Controlling Case Study

Cost Center Accounting (CO-CCA)
This case study explains an integrated cost center accounting process in
detail and thus fosters a thorough understanding of each process step and
underlying SAP functionality.

Product MOTIVATION PREREQUISITES

S/4HANA 1809 The data entry requirements in the Before you use this case study, you
Global Bike controlling exercises (CO 1 should be familiar with navigation in
thorough CO 3) were minimized the SAP system.
GUI 7.50 because much of the data was
stored in the SAP system. This In order to successfully work through
Level stored data, known as master data, this case study, it is not necessary to
simplifies the processing of have finished the CO exercises (CO
Undergraduate
business transactions. 1 through CO 3). However, it is
Graduate
recommended.
Beginner
In this case study, costs of GBI’s
cafeteria are assessed and NOTES
Focus allocated to organizational units
This case study uses the Global Bike
Controlling that use its services.
(GBI) data set, which has exclusively
Cost Center Accounting
been created for SAP UA global
In order to allocate costs, cost
curricula.
Author centers will be created and output
Michael Boldau costs will be planned.
Stefan Weidner

Version
3.3

Last Update
July 2019

© SAP SE / SAP UCC Magdeburg

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Process Overview

Learning Objective Understand and perform a cost center accounting Time 105 min
process.
Scenario In order to perform a cost center accounting process, you will take
on different roles within the Global Bike company (e.g. cost accountant or
chief accountant. You will be working in the Controlling (CO) module.
Employees involved Jamie Shamblin (Cost Accountant)
Shuyuan Chen (Chief Accountant)

There are two ways to allocate overhead costs: assessment and distribution. Companies might use
one or both types.
In this case, you will use cost center accounting (CCA) to assess costs associated with the
cafeteria to two other cost centers (Maintenance, and Assembly) plus itself. Since we do not have
“actual” costs yet, the assessment will be based on “planned” costs. To assess costs associated
with the Cafeteria cost center, cost elements are created. You will then plan the primary costs and
statistical key figure (i.e. number of employees in each cost center) that will be used to assess the
costs. To make the assessment process simpler, you will create a Cost Center Group consisting of
these three cost centers that will receive the Cafeteria cost assessment. After reviewing your
planning, you will create and execute an assessment cycle and display its results.

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Table of Contents
Process Overview .................................................................................................................. 2
Step 1: Create Cost Center .................................................................................................... 4
Step 2: Create Statistical Key Figure .................................................................................... 7
Step 3: Create Secondary Cost Elements .............................................................................. 8
Step 4: Create Activity Types ............................................................................................. 11
Step 5: Create Cost Center Group ....................................................................................... 13
Step 6: Plan the Number of Employees .............................................................................. 14
Step 7: Plan Activity Output ............................................................................................... 16
Step 8: Plan Primary Cost Inputs ........................................................................................ 17
Step 9: Plan Internal Activity Inputs ................................................................................... 19
Step 10: Review Planning ................................................................................................... 21
Step 11: Create Assessment ................................................................................................ 23
Step 12: View Assessment Results ..................................................................................... 26
Step 13: Price Calculation of Activity Types ...................................................................... 27
Step 14: View Price Calculation Results............................................................................. 28

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Step 1: Create Cost Center

Task Create three cost centers. Time 10 min

Short Description Create cost centers for cafeteria and maintenance and
assembly departments.
Name (Position) Jamie Shamblin (Cost Accountant)

A cost center represents an organizational unit within a controlling area and

specifies a uniquely definable instance where costs are incurred. A cost
center can be based on functions, settlement specific, geography or cost
responsibility.

To create a new cost center, use the transaction: KS01. Transaction code

Note If the system prompts you to enter the relevant controlling area, enter
NA00
NA00. Press Enter to confirm.

On the following screen enter CC-CA### (replace ### with your number, CC-CA###
01/01 of current year
e.g., 012) as Cost Center number. The cost center should be valid from 01/01
of the current fiscal year.
Now, press Enter to confirm.

Enter Cafeteria ### as the cost center Name and Cafeteria for the Cafeteria ###,
Cafeteria
description. Also enter your name for the person responsible. Select cost Your name
center category Service cost center H and assign the cost center to hierarchy H
N1200
area Internal services N1200. In addition, choose business area Bikes via the BI00, USD
F4-Help and currency USD.

Compare your entries with the screen shown below.

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Click to save your cost center. You can acknowledge the yellow
warning message about profit center accounting being active by pressing
Enter.

Repeat the above process to create a cost center for the production
maintenance department. Use the following data:

Cost Center: CC-MA### CC-MA###

Valid from: 01/01 of the current fiscal year 01/01 of current year

Name: Maintenance ### Maintenance ###

Production Maintenance
Description: Production Maintenance Department Department
Person responsible: Your name Your name

Cost center category: H H

Hierarchy area: N4300 N4300

Business area: BI00 BI00

Currency: USD USD

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Click to save your cost center.

Repeat the above process to create cost center for assembly. Use the
following data.

Cost Center: CC-AS### CC-AS###

Valid from: 01/01 of the current fiscal year 01/01 of current year

Name: Assembly ### Assembly ###

Production Assembly
Description: Production Assembly Department Department
Person responsible: Your name Your name

Cost center category: F F

Hierarchy area: N4200 N4200

Business area: BI00 BI00

Currency: USD USD

Click to save your cost center.

Click on the exit icon to return to the SAP Easy Access Menu.

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Step 2: Create Statistical Key Figure

Task Create a new statistical key figure. Time 5 min

Short Description Create a new statistical key figure to allocate cafeteria
costs.
Name (Position) Jamie Shamblin (Cost Accountant)

Because the cafeteria costs will be allocated to three cost centers (including
itself), the number of employees in the cost centers is the allocation base for
cost assessment. To allocate costs in CO, you will have to create a statistical
key figure.

To create a new statistical key figure, follow the menu path: Menu path

Accounting ► Controlling ► Cost Center Accounting ► Master Data

► Statistical Key Figures ► Individual Processing ► Create

Enter EMP### (replace ### with your number) as the Stat. key figure EMP###
number and press Enter.

On the following screen, enter Number of employees as name and choose Number of employees
Number of Persons (PRS) as the unit. Make sure the category Fxd val. is PRS, Fxd val.

selected. Then, click .

Click on the exit icon to return to the SAP Easy Access Menu.

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Step 3: Create Secondary Cost Elements

Task Create secondary cost elements. Time 5 min

Short Description Create secondary cost elements to assess the cost of the
cafeteria to the three departments within CO module.
Name (Position) Jamie Shamblin (Cost Accountant)

Internal cost flows are allocated in S/4HANA using secondary cost

elements. In contrast to primary cost elements, secondary cost elements do
not have any corresponding G/L expense accounts in the chart of accounts
but instead are used to allocate costs within CO to responsibility centers
(e.g., other cost centers).

Note Because of performance issues, SAP S/4HANA stores cost elements

together with G/L Accounts, but they are not G/L accounts. Following the
path to create secondary costs will take you to the Edit G/L Account
Centrally screen.

To create a new secondary cost element, follow the menu path: Menu path

Accounting ► Controlling ► Cost Center Accounting ► Master Data

► Cost Element ► Individual Processing ► Edit Cost Element

Enter 8000### as G/L Account and Company Code US00. Now, click Create 8000###
US00

In the pull-down menu G/L Account Type and Account Group choose Secondary Costs
Secondary Cost
Secondary Cost(s). Type in the name Plan Asm. CC-CA### for Short Plan Asm CC-CA###
Text and Planned Assessment CC-CA### for G/L Acct Long Text. Plan Asm CC-CA###

Note Secondary costs are costs incurred through in-house exchange of

services, for example Repair costs that the company carries out itself. The
opposite is primary costs, which are not self-produced, but sourced
externally.

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On the tab Control Data in the sub area Account Settings in Controlling Area
42
NA00 GBI North America assign it to cost element CElem. category
Assessment (42). Compare your screen to the one shown below.

Choose the tab Create/bank/interest. Enter in the Field status group ZSEC
secondary costs, ZSEC, and confirm with Enter.

Now, click .

Repeat the process above for the maintenance allocation cost element with
the following data:
G/L Account: 8100### 8100###
US00
Company Code: US00 Allocation CC-MA###
43
Short Text ant G/L Acct ZSEC
Long Text. Allocation CC-MA###
G/L Account Type: Secondary Costs
Account Group: Secondary Cost
CElem. category: 43
Field status group: ZSEC

Now, click .

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Note You define the field status group since many G / L accounts require the
same fields for posting, it is recommend that you define the field status for a
group of G / L accounts.

Repeat the process for the assembly allocation cost element with the
following data:
G/L Account: 8200### 8200###
US00
Company Code: US00 Allocation CC-AS###
43
G/L Account Type: Secondary Costs ZSEC

Account Group: Secondary Cost

Short Text ant G/L Acct
Long Test. Allocation CC-AS###
CElem. category.: 43
Field status group ZSEC

Now, click .

Click on the exit icon to return to the SAP Easy Access Menu.

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Step 4: Create Activity Types

Task Create activity types. Time 10 min

Short Description Create activity types to allocate cost for activities within
maintenance and assembly.
Name (Position) Jamie Shamblin (Cost Accountant)

Activity types are a tool within the controlling area that classify the activities
performed by a cost center. As units of measure, they are used to allocate
internal activities.

To create a new activity type, follow the menu path: Menu path

Accounting ► Controlling ► Cost Center Accounting ► Master Data

► Activity Type ► Individual Processing ► Create

Enter M### (replace ### with your assigned number) as the activity type M###
number. It should be valid from 01/01 of the current fiscal year. Press 01/01 of current year
Enter.

On the following screen, type in Maint. Hours ### as the name. The activity Maint. Hours ###
unit is Hour (H), the activity type should be valid for all cost center cate (*). H, all cost center
Use the F4-Help to choose the activity type category Manual entry, manual categories
allocation (1) and assign it to the allocation cost element you just created Manual entry, manual
(8100###). Your screen should look similar to the one depicted below. Now, allocation
8100###

Click .

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Repeat the process above to create the activity for the assembly cost center.
Insert the following data and use the F4-Help if necessary:
Activity type: A### A###

01/01 of current year

Valid from: 01/01 of current fiscal year
Assembly Hours ###
Name: Assembly Hours ###
H
Activity unit: H
*
Cost center cat.: *
Activity type cat.: 1 1

Alloc. Cost element: 8200### 8200###

Now, click to save your activity type.

Click on the exit icon to return to the SAP Easy Access Menu.

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Step 5: Create Cost Center Group

Task Create the cost center group. Time 10 min

Short Description Create a cost center group to assess the cafeteria cost.
Receivers of the cafeteria cost are the cafeteria and the maintenance and
assembly cost centers you previously created.
Name (Position) Jamie Shamblin (Cost Accountant)

Cost centers can be grouped together to form cost center groups. You can
use these groups to form cost center hierarchies that summarize the areas
for decision-making, responsibility, and control according to the company’s
specific needs.

To create a new cost center group, follow the menu path:

Menu path
Accounting ► Controlling ► Cost Center Accounting ► Master Data
► Cost Center Group ► Create

The group shall be named GROUP### (replace ### with your assigned GROUP###

number). Press to continue.

Name the displayed hierarchy Cafeteria cost receivers and click Cafeteria cost receivers

In the left-hand column, enter the cost centers CC-CA###, CC-MA### and
CC-AS### in that sequence and press Enter to confirm. The names of the
cost centers should then be displayed

If you see , it means you have misspelled or

failed to enter one of the cost centers. Select the involved cost center, click
and then . Enter the correct cost center and press Enter.

Click . Then return to the SAP Easy Access menu by clicking

twice.

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Step 6: Plan the Number of Employees

Task Plan the number of employees in each cost center Time 5 min
Short Description Plan the number of employees working in the
organizational units associated with the previously created cost centers.
Name (Position) Shuyuan Chen (Chief Accountant)

To plan the number of employees in each cost center, follow the menu path: Menu path

Accounting ► Controlling ► Cost Center Accounting ► Planning

► Statistical Key Figures ► Change

The Change Statistical Key Figure Planning: Initial Screen appears. Choose
Plan/actual version
the Plan/actual version via the F4-Help and periods 1 to 12 in the current 1,12, current fiscal year
fiscal year. Enter cost center CC-AS### and key figure EMP###. Make CC-AS###, EMP###
sure you leave all other fields blank.
Compare your entries with the screen shown below.

Click Form-Based at the bottom of the screen. Then click Form-Based

or press F5.

15
Enter 15 as the current plan value and click .

Repeat the process for cost center CC-MA### and enter 5 as current plan CC-MA###, 5
value. Repeat the process again for the cafeteria cost center and plan 5 CC-CA###, 5
employees.

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Click on the exit icon to return to the SAP Easy Access Menu.

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Step 7: Plan Activity Output

Task Plan the activity output. Time 5 min

Short Description Plan the activity output of the maintenance and assembly.
Name (Position) Shuyuan Chen (Chief Accountant)

To plan the activity output, follow the menu path: Menu path

Accounting ► Controlling ► Cost Center Accounting ► Planning ►

Activity Output/Prices ► Change
The layout Activity types with prices: standard appears.

Fill the fields Version, Periods and Fiscal Year as in the previous step, if 0, 1,12, current year
they do not already contain the correct default values.

Enter CC-MA### as the cost center and M### as the activity type. Leave all CC-MA###, M###
1,800

other fields blank. Then click and enter 1,800 hours as

the plan activity. Click .

Repeat the process for the assembly cost center and activity type A### with CC-AS###, A###
6,000
a plan activity of 6,000 hours.

Click on the exit icon to return to the SAP Easy Access Menu.

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Step 8: Plan Primary Cost Inputs

Task Plan primary cost inputs. Time 10 min

Short Description Plan the primary cost inputs for the cafeteria , assembly
and maintenance.
Name (Position) Shuyuan Chen (Chief Accountant)

Primary costs are incurred in all three cost centers each fiscal year. These
costs are 60,000 for salaries and 90,000 for purchased services in the
cafeteria , maintenance salaries in the amount of 60,000, and assembly wages
in the amount of 150,000.

To plan the primary cost inputs, use the transaction KP06. Transaction Code

The Cost elements Acty.-Indep./Acty.-Dep. layout appears.

Fill the fields Version, Periods and Fiscal Year as in the previous step, if 0, 1,12, current year
they do not already contain the correct default values.

Enter CC-CA### as the cost center and choose Labor Expense (700000) CC-CA###, 700000
via the F4-Help as cost element. Leave all other fields blank.

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Click .

On the following screen, enter the plan fixed costs of 60,000 and save 60,000

Repeat the process for the cafeteria and cost element 741000 with planned 741000
90,000
fixed costs of 90,000.

On the Change Cost Element/Activity Input Planning: Initial Screen screen,

CC-MA###, 700000
change the cost center to maintenance and Labor Expense (700000) as cost 60,000
element. Enter the planned fixed costs of 60,000.

Enter cost center CC-AS###, activity type A### and cost element Labor CC-AS###, A###,
700000
Expense (700000). Now that you have added the activity type, the primary
cost input can be planned activity specific – that is, with a fixed and variable

price. Then click .

The Plan variable cost field should now be ready for input. Enter 150,000 150,000
here and save.

Click on the exit icon to return to the SAP Easy Access Menu.

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Step 9: Plan Internal Activity Inputs

Task Plan internal activity inputs. Time 5 min

Short Description Plan the internal activity inputs.
Name (Position) Shuyuan Chen (Chief Accountant)

To plan the internal activity inputs, use transaction KP06. Transaction code

The Cost elements Acty.-Indep./Acty.-Dep. layout appears. Because this

screen is only suitable for cost elements, not activity types, click
to go to the next layout, Activity Input Acty.-Indep./Acty.-Dep.
(1-102)

Fill the fields Version, Periods and Fiscal Year as in the previous step, if 0, 1,12, current year
they do not already contain the correct default values.

Enter CC-AS### as the cost center, CC-MA### as the sender cost center CC-AS###, CC-MA###
M###
and M### as the sender activity type. Leave all other fields blank.

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600
Go to the overview screen by clicking on , and enter 600
hours as plan fixed consumption. Now click on .

Click on the exit icon to return to the SAP Easy Access Menu.

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Step 10: Review Planning

Task Review the planned costs via the planning report. Time 5 min
Short Description Review the planned costs for the cafeteria , maintenance
and assembly.
Name (Position) Shuyuan Chen (Chief Accountant)

All cost centers have been charged with primary costs. In addition, you can
also see the total inputs and internal allocation quantities in maintenance and
assembly.

To open the report, follow the menu path: Menu path

Accounting ► Controlling ► Cost Center Accounting ► Information

System ► Reports for Cost Center Accounting ► Planning Reports
► Cost Centers: Planning Overview

If not already filled in, enter the current fiscal year, period 1 to 12 and Current year
1, 12, 0
Version 0 as report parameters.

Enter the assembly cost center and click on . CC-AS###

Your report should look similar to the one depicted above.

Go back to the previous screen and view the planning reports for the CC-CA###, CC-MA###
maintenance cost center and the assembly cost center as well.

Click on the exit icon twice to return to the SAP Easy Access Menu.

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Step 11: Create Assessment

Task Create assessment for cafeteria costs. Time 15 min

Short Description Create planning assessment for cafeteria costs.
Name (Position) Shuyuan Chen (Chief Accountant)

To asses cafeteria cost, follow the menu path: Menu path

Accounting ► Controlling ► Cost Center Accounting ► Planning ►

Allocations ► Assessment

In the Execute Plan Assessment: Initial Screen, choose More ► Extras

C###, 01/01 of current
►Cycle ►Create. Enter cycle number C###, which is valid from 01/01 of year

the current fiscal year and click .

This will produce the following screen.

Type in Cycle CC-CA### as text, uncheck the iterative field and click Cycle CC-CA##,
iterative
.

On the Segment Header tab type in SEG### as segment name. Enter SEG###
8000###
8000### as the Assessment CElem.

On the Senders/Receivers tab enter CC-CA### as Sender Cost Center (from) CC-CA###
GROUP###
and Cost Center Group GROUP### as receiver. Compare with the screen
shown below.

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On the Receiver Tracing Factor tab choose the value Plan Stat. Key Plan Stat. Key Figures
Figures in the Var. portion type field.
The following information popup indicates that new fields are displayed.
0
Close the popup by clicking . In the Selection Criteria section
choose Plan/actual version via the F4-Help and statistical key figure EMP###

EMP###.

Click to Save, click three times to go back, and

confirm the subsequent confirmation .

In the Execute Plan Assessment: Initial Screen enter C### in the cycle field C###

and click Enter. Uncheck Test Run and click . Test Run

The system should notify you that processing was completed without errors.
The number of senders should be 1 and the number of receivers 3.

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Click on . Choose when asked for exiting the

assessment list. Click again to return to the SAP Easy Access Menu.

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Step 12: View Assessment Results

Task Review the results of the assessment. Time 10 min

Short Description Review the results of the assessment.
Name (Position) Shuyuan Chen (Chief Accountant)

To open the report, follow the menu path: Menu path

Accounting ► Controlling ► Cost Center Accounting ► Information

System ► Reports for Cost Center Accounting ► Planning Reports
► Cost Centers: Planning Overview

On the Planning Report: Initial Screen, find your assembly cost center via CC-AS###
current year, 1,12
the F4-Help. If not already filled out, use the current year, period 1 to 12 and
version 0 as report parameters. Click on and view the results of the 0

assessment.

Repeat the process above and view assessment results for the maintenance CC-MA###
CC-CA###
and cafeteria cost centers.

The maintenance and assembly cost centers should have been charged with a
cafeteria assessment of $30,000 and $90,000, and the cafeteria cost center
credited with $120,000. The amount of cafeteria costs that remain in the CC-
CA### cost center is $30,000.

You may have noticed that the activity inputs and activity allocations of cost
centers CC-AS### and CC-MA### are still valued at zero even though all
the quantity information has been entered. This is because no prices have
been planned yet for the involved activity types. You will do this in the next
step.

Click on the Button twice to return to the SAP Easy Access Menu.

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Step 13: Price Calculation of Activity Types

Task Calculate the prices of the activity types. Time 5 min

Short Description Calculate the prices of the activity types.
Name (Position) Shuyuan Chen (Chief Accountant)

To calculate prices of activity types, follow the menu path: Menu path

Accounting ► Controlling ► Cost Center Accounting ► Planning ►

Allocations ► Price Calculation

On the following screen, choose the first radio button (Cost center group)
and enter your cost center group GROUP###. Again, use the parameters GROUP###
version 0, periods 1 to 12 and the current year. Uncheck the Test Run box 0, 1, 12, current year
Test Run
and click .

If everything worked correctly, the SAP system reports that the calculated
prices have been posted correctly. Click to display the prices.

Write down the prices the system calculated for your activity types:

Total price for CC-AS### and activity type A###:_______________

Total price for CC-MA### and activity type M###:_______________

Click on . Select when asked upon leaving the price

calculation. Click on to return to the SAP Easy Access Menu.

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Step 14: View Price Calculation Results

Task View the results of the price calculation. Time 5 min

Short Description View the results of the price calculation.
Name (Position) Shuyuan Chen (Chief Accountant)

To open the report, follow the menu path: Menu path

Accounting ► Controlling ► Cost Center Accounting ► Information

System ► Reports for Cost Center Accounting ► Planning Reports
► Cost Centers: Planning Overview

On the Planning Report: Initial Screen, find your cafeteria cost center via the CC-CA###
current year, 1,12
F4-Help. If not already filled out, use the current year, period 1 to 12 and
version 0 as report parameters. Click on and view the results of the 0
assessment.

Repeat the process above and view assessment results for the maintenance CC-MA###
CC-AS###
and assembly cost centers. Your assembly cost center report could look like
the example below.

As you can see, the cafeteria costs and assessment of the maintenance cost
center amount to 120,000. Labor costs in the amount of 150,000 are also
incurred. If the total input is 6,000 hours, this results in a price of 45.00 for
one assembly hour.

Click on the exit icon twice to return to the SAP Easy Access Menu.

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