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SAP Controlling: Cost Management Guide

SAP Controlling (CO) is a module that aids in managing costs and revenues within an organization. It includes processes for maintaining controlling areas, cost element accounting, and cost center accounting, with specific transaction codes for each task. The document outlines steps for creating cost elements and cost centers, as well as reporting and document posting procedures.

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0% found this document useful (0 votes)
22 views12 pages

SAP Controlling: Cost Management Guide

SAP Controlling (CO) is a module that aids in managing costs and revenues within an organization. It includes processes for maintaining controlling areas, cost element accounting, and cost center accounting, with specific transaction codes for each task. The document outlines steps for creating cost elements and cost centers, as well as reporting and document posting procedures.

Uploaded by

hizbasaleem140
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

SAP Controllin

SAP Controlling (CO) is another important SAP module offered to an organisation. It supports coordination, monitoring & o
Objective of controlling is to manage the cost & revenue in the organisation.

Step 01 :-
1) Maintain Controlling area:-
OKKP
Path = spro> IMG > Controlling > General Controlling > Organisation > Maintain controlling area > New entries

Controlling area= FEET


Name = Controlling Area for FEET
Person responsible
Assignment control = Cocd-CO Area same as company code
Currency type = Company code currency
Currency = INR
COA- enter
FY Variant - V3
CC standard hierachy = byplcc
Then save
Comes on assignment of CC :-
1) enter CC > then save

Now comes on Activate Components/ Control:-


1) Enter FY
2) Cost center > Activate - yes
AA activity Type - Tick
Order Management = Component active
Profit center Accounting ( tick )
then save

2) Maintain Number ranges for controlling document :-


T-code = KANK
Path = Spro > IMG > Controlling > General accounting > Organisation > Maintain No. ranges for controlling doc.

Enter CC - select on group


Create new group

Group - No. range for FEET co.


From No. To No.
10000 19999
Then save

Now select on COIN > Element group > then double click on No. range
then check at last
Then save

SAP - Cost Element Accounting :-


1) Introduction of Cost Element Accounting
2)Type of Cost element
3) Creation of Cost Element

1) Introduction of Cost Element Accounting :-


Cost element Accounting is cost carrier which carries the cost from SAP FI to SAP CO.
It Provides with an overview of the cost & revenue that occur in an organisation.

2)Types of Cost Element :-

* Primary Cost Element = It carries the cost from FI to CO. The GL A/C must first be created in SAP FI.
The same GL No. must be used for the cost element .

* Secondary Cost element= It carries the cost from CO to CO. It used for internal allocation activities.
No Relation to GL A/C in SAP FI.

GL = Cost element

Financial Accounting Controlling


Exp. GL Revenue GL Cost element Revenue Element
Rent sales Rent sales
Salary Misc. Inc. Salary Misc. Inc.
Comm. Commission

3) Creation Of cost Element:-

a) Manual Creation :-
Path = SAP Menu > Accounting > Controlling > Cost element accounting > Master Data > Cost element > Individual Process

T-code :-
Creation = KA01 Can be created by FS00
Change = KA02
Display = KA 03

Creation :-
Element Category = 01 ( cost reducing revenue)
then save

SAP - Cost center Accounting :-


1) Introduction of Cost Center Accounting
2) Creation of cost center master Data
3)Document Posting with cost center
4) Cost center reporting

1) Introduction of Cost Center Accounting :-


Cost center is the area of responsibility where costs are incurred . It represents one of the small units of responsibilty wi
In cost center accounting, operational expenses are captured by three separate master data objects such as cost center,
Company cost center hierarchy

Group 1000 Finance 2000 Admin

Cost center 1001 AP 2001 Canteen


1002 AR 2002 Office equipments

2) Creation of Cost Center Master Data:-

Path :-
SAP Easy Access > Controlling > Cost element accounting > Master Data > Cost center > Individual Processing > Create
T-code = KS01/KS02/Ks03

1) Create Cost Center


2) valid from- 01/04/2021
3) Name - Facilities Management
4) Person Responsible -
5) Department - Admin
6) Cost Center Category - Administration
7) hierarchy Area- CC IDEA
8) Currency -INR
then Create

Now Comes on standard Hierarchy -


T- Code= OKEON
1) Enter group Name- CCIDEA - STD. Company Hierarchy
2) Now right - click on CCIDEA> Create Group ( Lower Level)
Group Name - 1000 > Admin
Then save

Now Create another Group - Select on create group ( same level )


Group Name - 2000 > finance > enter > save

Now create cost center also - By right click


Then save.

Now Pass Entry :-


T-code = FB50
1) Enter Date
2) select GL - salary Dr. =10000 > cost center - 1001
salary = 5000 > cost center - 1002
cash - 15000
then simulate & then save.
Now display - FB03
By Document > display.
Now seelect environment> Doc. Environment > Accounting doc.
It will show 2 document :-
1) A/C document
2) Controlling document

Cost Center Reporting :-


Path :-
SAP Easy Access > Accounting > Controlling > Cost Center Accounting > Information System > Report for cost accounting >
SAP Controlling
ts coordination, monitoring & optimization of all theprocess in an organisation.

Cost center
area > New entries FI CO

FI CO
fbn1 kank
for controlling doc.
st element > Individual Processing

e small units of responsibilty within an organisational structure.


ata objects such as cost center, activity types & statistical key figures.
ak52cc

Sales 3000

Marketing 3001
ffice equipments Customer services 3002

ividual Processing > Create


m > Report for cost accounting > Plan/ Actual Comparison > Cost center ( Actual /Plan /Variance ).
b) Automatic creation :-
Path = spro > img > Controlling > Cost element Accounting > Master Data > Cost element > Automatic Creation of primary & se
Enter COA
A/C from A/C TO Element cat.
400000 499999 1( Exp.)
500000 599999 11( Incomes)
Then save

Create Batch Input Sessions :-


It automatics take all value
Only Check session name.

Execute Batch Input sessions :-


session - SM54= ( Automatic takes)
1) Select all > Process > Background

Now check > Display = ( KA03)


matic Creation of primary & secondary cost elements > Make default settings > New Entries
Base components for controlling :-

1) Cost center For cost center accounting


2)Internal Order- Internal Order accounting
3)Cost object Product costing
4)Profit Center Profit center accounting
5) Profitability Profitability analysis
FB50 GL AMOUNT COST CENTER
Dr SALARY 50000 1001 AP
Dr SALARY 40000 1002 AR
CR CASH 90000

FI CO

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