Controlling: Controlling provides you with information for management decision-making. If facilitates co-ordination, monitoring and optimization of all process in an organization.
Features of Controlling: Cost Center Accounting, Activity Based Accounting, Internal Orders, Product Costing, & Profitability Analysis.
Controlling Area: Organization unit that represents a closed system Used for accounting purposes.
You can assign one or more company codes to one controlling area.
If you assign more than one company code to one controlling area, then you need to note the following.
1) Consistent Chart of a/c’s( Treat
each cost element in all company codes in same way).
2) The Operative fiscal year variants
in the company codes must match the fiscal year variant in controlling
area.
3) You should execute period end
closing in controlling for all company codes at same time.
4) The system only post reconciliation
posting across company codes without taxes, which means that it cannot
automatically create invoice.
5) Maintain controlling area ->
okkp
6) Maintain no. ranges for controlling
documents -> kank
7) Maintain versions -> OKEQ
COST ELEMENT ACCOUNTING
Cost Elements: Cost Elements Describe the origin of costs. Cost element classifies the organization valuated consumption of production factors within a controlling area.
Primary Cost Elements: These arise
through the consumption of productions factors that are sourced externally.
Primary cost elements are used for direct posting and must be accompanied
in GL a/c’s in FI.
T-code -> KA02.
The categories are follows 1) General
primary cost element, 03 -> Imputed cost element percentage method 4 ->
Imputed cost element, target = Actual Method, 11 -> Revenue elements, &
12 -> sales deductions.
Secondary Cost Elements: Cost elements arise through the consumption of production factor’s that are provided internally i.e., by enterprise itself. Secondary cost elements are used strictly for internal controlling posting like assessments and settlements. T-code -> kA06
Category: 12 -> internal settlements, 31 -> Result analyses, 41 -> overhead’s, 42 -> assessments etc. Cost Element Group -> KAH1
COST CENTER’S
Cost Center’s: Organizational Unit
within a controlling area that represents a defined location of cost incurrence.
The definition can be based on
1) Functional Requirement,
2) Allocation criteria,
3) Physical location and
4) Responsibilities for cost.
Change Cost center hierarchy ->
OKEON
Creation of Cost Center
-> KS01
Distribution: Was created to transfer
primary costs from a sender cost center to receiving controlling objects.
Distribution is primary cost elements.
Define Distribution -> KSV1
Execute “”
-> KSV5
Assessment: Was created to
transfer primary and secondary costs from a sender cost center to receiving
controlling objects.
During assessment, the original
cost elements are summarized into assessment cost elements (secondary cost
element, category=42).
Define Assessment -> KSU1
Execute Assessment -> KSU5
Activity Types: Categorizes productions and services activities provided by a cost center to the organization and used for allocating costs for internal activities to the originates of the costs.
Creation of Allocation Cost elements
-> KA06
Creating/Maintaining the Activity
types -> KL01
Statistical key figures: Are used as the basis (tracing factor) on which to make allocations (assessments & distributions) and to analyze structural key figures.
