TFIN20_1Unit 1 - Overview of Management AccountingGeneral Tass of Management AccountingFinancial Accounting vs! Management Accounting"A# Financial "u$$l% &'ain Managementconcentrates on functons such as cash management,treasury management (for nstance, funds, foregnexchange, dervatves, and securtes), oans, and marketrsk management.Financial Accountingmany nvoves the generaedger, processngrecevabesandpayabes, andassetaccountng.Investment Management supports pannng, nvestment, and nance processes for captanvestment measures.Management Accounting ohers many toos that can be used to prepare operatng data forbusness anayss and management decsons.- Standardzed accountng ntended for externa users s sometmes referred to asnanca accountng. Management accountng generay refers to the non-standardzedaccountng approach that supports management decson makng. Management Accounting ArchitectureOver'ea(&ost&ontrolling(CO-OM) - takecoststhatcannot be assgned drecty to the goods and servces of acompany and aocate them as far as s possbe accordngto ther cause.#ro(uct &ost &ontrolling takes the costs for producnggoods and servces (and, n certan cases, aso ther saesrevenues)andsettesthemtonanca accountngortoprotabty and saes accountng.#ro)ta*ilit% an( sales accountings used forenterprse pannng. Its man focus, however, s thedetermnatonoftheactua busnessprotandoss. Twovews areaways usedfor ths purpose: theexterna vewnthemarket for anaysngprotabty segments (Protabty Anayss) and the nternavew of ndvdua parts of thecompany responsbe for prot (Prot Center Accountng).Integration +it'in Management Accounting an( wit' Ot'er "A# A$$licationsUnit 2 , Organi-ational Units&om$onents of Management Accounting1Theo$erating concerns the hghest reportng eve for protabty and saes andmarketng controng, and the centra organzatona unt n Protabty Anayss (CO-PA) usedto segment and structure the market.&ontrollingareasstructurethenterna accountngoperatonsof anorganzatonwthnManagementAccountng. Theyrepresentcoseduntsthatareusedtocacuatecosts. Anterna aocatons reate soey to ob|ects that beong to the same controng area&om$an% co(esare ndependent accountng unts wthn Fnanca Accountng. Theyrepresent the smaest organzatona unts for whch an account group can be set up for thepurposes of externa reportngCustomizing Controlling AreaThe controng area s the organzatona unt wthn a company for whch compete, cosedcost controng can be carred out. You cannot aocate costs outsde of controng areas.- The controng area "0001" s created n the SAP standard verson. You can use theseas copy tempates.- A controng area may contan more t'an one com$an% co(eand these companycodes can ncude more t'an one currenc%. However, the company codes assgnedto a controng area must a use the same o$erational c'art of accounts.- The contro ndcator can be used to actvate or deactvate certan controngcomponents andfunctons for a)scal %ear- samenumber of (norma) postngperods.Assignment of Organizational UnitsO$erating concern .0/ 10 1- &ontrolling area .1/ n0 1- &om$an% co(e .1/ n0 1- #lant.0/ 1/ n0 2usiness areaYou can use the foowngcurrenciesn ManagementAccountng to perform evauatons n the nformatonsystem:&ontrolling area currenc%3If you are usng a 1:1assgnment, the controng area currency must be the sameas the company code currency. In cross-company-code costaccountng, thecontrongareaandcompanycodesmaypossess dherent currences.O*4ect &urrenc%3 When usng a 1:1 assgnment, an ob|ectcurrency that s dherent to the controng area or company code currency can be dened forthe account assgnment ob|ect.&om$an%co(ecurrenc%:Incross-companycodecost accountng, youareonyfreetochoose an ob|ect currency f a the assgned company codes have the same currency and thssthesamecurrencyasthecontrongareacurrency. If thssnot thecase, theob|ectcurrency n the account assgnment ob|ect w automatcay be the company code currency.Transactioncurrenc%3The currency n whch a document s posted to ManagementAccountng s the transacton currency.5The)scal %earvariantsof acontrongareaandcompanycodecanhavedherentnumbers of speca perods. The number of postng perods must be the same.5 You have to use the same o$erational c'art of accounts n Management Accountng andn the assgned company code.&'anges to t'e assignment shoud not be a probem provded you have not created anymaster data or transacton data. In a productve system, combnng company codes that wereprevousy separate n a controng area, or spttng a controng area (1:n) nto severa newcontrong areas necesstates converson of data.Unit 6 , Master 7ata&ost &entresT'e Organi-ational "tructure of t'e "tan(ar( 8ierarc'%- You must rst dene astan(ar('ierarc'%. Specfy the name of the standardherarchy when you create the controng area. SAP recommends that you dene the2structure so that t reects the nterna areas of responsbty and the controng anddecson-makng structures wthn your organzaton.- Each level or no(e of the standard herarchy s a cost centre group. Cost centres thatare created or changed from wthn the standard herarchy have the status Inactive- You can change the assignments of t'e organi-ational units, f:o The currency of the new company code s the same as the currency of the odcompany code.o You have ony posted pannng data n the sca year.o Thecost centresnot assgnedtoaxedasset, workcentre, or HRmasterrecord.- Thecost centrecategor%sanndcator nthecost centremaster data, whchspeces the category for the cost centre. Cost centre categores enabe you to assgnthe same characterstcs to smar cost centres.&ost elements- Expense and revenue accounts n Fnanca Accountngcorrespond to$rimar% costand revenue eements nManagement Accountng; In addton,secon(ar% costelements are used to record nterna vaue ows ke actvtyaocatons, assessments and settements. - To be abe to post to a prmary cost eement, you requre an ob|ect n ManagementAccountng (such as a cost centre) to dentfy the orgn of thecosts.- 59evenueelementsareprmarycost eements.(11, 12and 22)- &ost element categor%3Activit% T%$es- The actvty type casses the actvtes that are to beperformedwit'in a com$an%by one or severa costcentres. Actvty types serve as tracing factors for ths costaocaton.- T'e activit% t%$e categor%s used to determne whetherand how an actvty type s recorded and aocated."tatistical e% )gures- Statstca key gures provde nformaton on non-monetary data for prot centres, suchas the number of empoyees, number of machnes, capacty usage, market nformaton,andsoon. Youcangroupstatstca keygurestogether ntostatstca keyguregroups.- 5 You can post both $lanne( and actual statstca key gures.- Statstca key gures are dened ether as a ):e( value or a totals value.Glo*al Functions for Master 7ataTime-2ase( Master 7ata- You can store master data eds for cost centres, cost eements, and actvty types astime-*ase(. You specfy whether ndvdua eds are tme-based n &ustomi-ing.- 5The&ostcentreassignmenttot'estan(ar('ierarc'%areasanon-tme-dependent ed.Unit ; , recever cost ob|ect37ocument num*er assignment in &ontrolling- Number ranges are dened for Busness Transactons (not document type).- You group Busness Transactons n nr. nterva groups and decde whether the numbers arenterna or externa - Number ranges are sca year ndependent- There shoud be dherent assgnments for at east actua and pan transactons as many statstca as necessary. Onyrea postngs can be setted and aocated- The account assgnment ob|ect determnes whether the postng s rea or statstc(rea/statstca order)- 5 The cost centre s the excepton to ths rue. You can make rea and statstca postngs fora cost centre (assgnment to a cost centre, and an addtona, reaaccount assgnmentob|ect. In ths case, the system aways updates the cost centre statstcay.) - 5 You aways make statstca postngs to the prot centre.Account Assignment Aogic - 9evenue #ostings- Revenues can ony be posted as rea postngs- 5 Revenue postngs to the prot centre are statstca, the same as for cost postngs.9e$orts in &ost &entre Accounting- You can enter the foowng defaut vaues: Basc data (controng area, cost centre orcost centre group, cost eement, and so on) Settngs for extract management Pannngtmeframe Reportng tmeframe Report currency Other speccatons,such as theverson- Bariation functionenabes you to seect a separate report for each eement of a groupthat was generated durng a seecton run (for a mutpe C Centre report you can swtchbetween C Centres)Account Assignment ToolsAutomatcordefautaccountassgnmentsarerequredforprmarycosteementsusednautomatcay-generated $ostings such as prce dherences, exchange rate dherences anddscounts. Automatc assgnment occurs durng postngs n externa accountng (wthn the FI,MM, or SD components) f you dd not enter a CO account assgnment ob|ect (cost centre,order, or pro|ect) for a cost accountng reevant postng. Ths s aways the case f the systemautomatcay created the ne tem n queston.Bali(ationan("u*stitution,trggeredby events (ca-upponts):header- manuapostngs n CO, line item (row) - FI and CO, CO Internal Posting: Sender/Receiver - CO nternapostngs such as aocatons- Bali(ation3 prerequstes=> f condton = fase => message (W, E, I)- "u*stitution3 prerequstes=> substtute- An addtona event - the Or(er Vauaton area ->Matera - Matera cost estmates are saved wth reference to a pant.- Baluation area determnes the organzatona eve at whch the matera s vauated.- 5To use matera costng, t s mandatory that you estabsh each $lant as a valuationareaBiews in t'e Material Master- Reevant to PCP are: M9#(Matera Requrements Pannng): Matera status n PP, Scrap factors,Indcators: Co-product/Buk matera, Producton verson Accounting3Reevanttomatera vauaton, matera prcecontro, andaccountdetermnaton Panned prces 1, 2, 3 - These can be used for raw materas and purchasedparts, and to vauate the materas n the cost estmate. Tax-basedprcesandCommerca prce: enteredfor purchasedpartsnnventory costng to determne vaues such as the owest vaue. Annventory cost estmate can use these prces for vauaton and then updatethe costng resuts for nshed and sem-nshed products n these eds. Prce contro (S/V): Indcator for prce contro accordng to whch thenventory of a matera s vauated. These prces are used to vauate goodsmovements wthn the SAP ERP and to vauate nventores. &osting3 contro parameters for matera costng, characterstcs requred for CostOb|ect Controng, Costing vew shoud be mantaned to be abe to cost a matera. Genera data Lot sze: The ot sze entered here s used as the defaut vaue for thematera costestmate. Theotszecanbeoverwrttennndvduaprocessng. It cannot be overwrtten n mass processng. Base unt of measure Text Account (Determnaton/Overhead)15 Vauatoncass: Thevauatoncasscontrosaccount determnaton.Theconsumptonaccountsdetermned, whchasoappearsastheprmary cost eement n the temzaton. Orgn group: If an orgn group s entered for a matera, thecombnatonoforgngroupandcosteementsupdatedntheCOsystem. Overhead group: Key that groups materas manufactured for the sametype of overhead appcaton, based on the product. Costng or no costng No costng Matera statusUnit &ost check matera costng resuts -> save matera cost estmate CO)for a ong tme. The other way around, from CO to FIwas prevousy not possbe n rea tme. Thereconciliation le(gerthat was to be mantaned nthe cost eement nvoce s aways used to reconceCO wth nanca accountng.Unit 23#ro)t &enter Master 7atainNew General Ae(ger Accounting#ro)t &enter Master 7ata#ro)t &enter "tructure- Regona prot center structure (saes-orented)- Functona prot center structure- Product-reated prot center structure- Busness unt prot center pannngYou can dvde your enterprse accordng to the foowng aspects:- Geographca structure of prot centers (ocatons, regons, and so on)- Product-reated structure of prot centers (dvsons, product nes, and so on) - Functona structure of prot centers (producton, saes, research, and so on)"he Pro0t Center Standard 4ierarchyThs structure s caed the standard herarchy. The stan(ar( 'ierarc'%s a tree structurethat contans a the prot centers n a controng area. When you create a prot center, youhave to assgn t to a herarchy area (herarchy node) n the standard herarchy. Ths ensuresthat a prot centers n the controng area end at the same node.Pro0t Center Master Data- A prot center s dened at controng area eve.- When creatng a prot center, you enter the name of the prot center and the $erio( ofvali(it%.- Prot center master data s tme-dependent- By defaut, a prot center s assgned to a the company codes wthn the controng area.You can excude certan company codes for a prot center by not seectng them.35- The(umm%$ro)t centers theprmarydefaut vauefor postngs toanaccountassgnment ob|ect n an accountng area f no other prot center s assgned. In the newgeneral le(ger-ncontrasttocasscProtCenterAccountng- youdonothavetodene or use a dummy prot center. Postngs are smpy made wthout prot centers andthen assessed or dstrbuted to the desred prot centers. Create Dummy Prot Center: You do not specfy a vadty perod. The dummy protcenter s automatcay vad for the maxmum vadty perod./ You cannot copy thedummyprotcenterfromanexstngprotcenter./Aagdentfyngtheprotcenter as the dummy prot center s set automatcay (n the indicator foder).- 7efault$ro)tcentersareprot centersthatdonotreect anorganzatona areaofresponsbty, butnsteadareusedtocoectcosts, revenues, andpostngstobaancesheet accounts wthn a postng perod. Oou s'oul( onl% (e)ne (efault $ro)t centersfor accounts for w'ic' (ocument s$litting is not active!Prot Center Accountngsbasedonthechart of accountsthat sassgnedtoFnancaAccountng. These accountsncude:"toc accounts: The systemuses these accountstodspaytheabtyandequtysdesofthebaancesheet.#PAaccounts.$rimar%costelement0: Thesystemuses theseaccounts togeneratetheprot andoss statement."econ(ar% cost elements: These costs are generated through aocatons wthn controng7erivation of a "egment ,The segment characterstc s ony derved together wth theprot center characterstc. If no segment s entered manuay durng postng (ony possbe nFnanca Accountng transactons), the segment s determned from the master record of theprot center.#ro)t center grou$sare aternatve herarches to the standardherarchy. You can use them n reportng, dstrbuton and assessment, orvarouspannngfunctons. Incontrast tothestandardherarchy, theseprotcentergroupsdonothavetocontana theprotcentersnthecontrong area. #ro)t &enter"tatus#ro)t &enter AssignmentsYou assgn prot centers to all account assignment o*4ects to whch costs and revenueshave been posted. As a resut of the assgnment ogc, the prot center s normay not postedto expcty. Instead, data s derved from prmary account assgnment ob|ects (cost centers,nterna orders).&ost o*4ects are used n Product Cost Accountng to coect and store costs that cannot beassgned to ob|ects at a ower eve(orders, pro|ects, or cost centers). However, n certancrcumstances, you may need to assgn a cost ob|ect to a prot center.Unkeother assgnment ob|ects,$ro)ta*ilit%segmentsdonot havemaster records. Aprotabty segment s a combnaton of characterstcs, such as a customer, product, pant,dstrbuton channe, and so on. The prot center s aways one of the characterstcs.Prot centers are assgned to the varous data-bearng structures n the pro|ect rather than tothepro|ect dentontsef. Thesestructuresare:+or*rea(ownstructureelement.+2" element0/ Networ 'ea(er/ Networ o$eration36Materas are aways assgned to a prot center at $lant level!Assignment MonitorThe assgnment montor provdes you wth an overvew of a theassgnments you have made for varous ob|ects, and supports youwhen you make or change assgnments. For exampe, you can caup a st of a cost centers that have not been assgned to a protcenter or prot center group, or ast of cost centersthat areassgned to a partcuar prot center or prot center group. Fromhere, youcan|umpdrectytothetransactonfor changngtheob|ect.Unit ; - Actual #ostings in #ro)t &enter Accounting7ata Flow &aution3Prot center dstrbuton and assessment n new Genera Ledger Accountng workthe same way as n Overhead Management, but ahect FI postngs ony.8int3The (actua) aocatons from the dherent components n the SAP system wth actvenew Genera Ledger Accountng are ntegrated wth FI, as descrbed:- Actua aocatons n Overhead Cost Controng: Prot center changes are aso updated nnew G/L f rea-tme CO FI ntegraton s actve.- Actua aocatons from cassc Prot Center Accountng (EC-PCA): No update n FI - a strctEC-PCA document s generated.- Actua aocatons n new G/L: No ntegraton wth other components - a strct FI documents generated8int3 The (istri*ution ony creates an FI document.8int3 The assessment account must not correspond to any secondary cost eement n CO -ths means that you cannot smpy use the assessment cost eements (cost eement type 42)from CO.Unit C - #ro)t &enter #lanning#lanning &on)guration an( Manual #lanningSettngs that are needed to actvate pannng n new Genera Ledger Accountng:1. Actvate summary tabe 2. Import pannng ayouts 3. Denepan perods4. Set panner proe 5. Create pannng document types 6. Dene panverson7. Assgn pan verson to a sca year 8. Actvate pan ne tems#lanning Aa%outs for #lanning in Financial Accounting- (Drect) pannng n FI s aways saved together wth an account. Ths means t s easy topan "prmary processes". However, t s not possbe to pan "secondary processes"(suchas actvtes) drectyfromFI. Ths s ony possbethroughntegratedpannngwthOverhead Cost Controng (n standard wth EHP3 or SAP Note 1009299)- You can actvate cumulative $lan (ata entr% for *alance s'eet accounts.Thus youcan perform baance carry forward for pan data. The system consders the baance carryforward vaues when determnng the baance sheet vaues for the ndvdua perods butdoesnotdspaythemseparatey(thepannedbaancesheetvauesaredspayedforbaance sheet accounts (and ony for baance sheet accounts) nstead of the baance sheetchange vaues.)Integrate( #lanning- Actvate the ntegrated pannng ndcator both n FI and CO pan versons. ! By defaut, thesystem transfers ony the data that contan prmary costs. For secondary costs: these costsmust be assgned to reconcaton accounts37Transfer of #lan 7ata , &lassic an( New General Ae(gerYou can transfer pan data from the foowng Controng (CO) components for pannng n thenew genera edger: Overhead Cost Controng (CO-OM): Prmary and secondary cost eements Protabty Anayss (CO-PA): Prmary cost eementsUnit E , "tructuresOverview of O$erating &oncern- Operatng concern -> Controng area ->Company Code ->Pant2asic &once$ts3 &'aracteristics an( Balue Fiel(s&'aracteristics , What do I want to report on? Dvsons, Regons, Products, Customers.&'aracteristicBalues ,WhatvauescanI haveforthesecharacterstcs?RegonSouth;Regon North.#ro)ta*ilit% "egments , What s the technca denton of my saes channe? Combnatonof Regon 1orth, Product Prod2, Saes Rep #iller. The combnaton of the vaues for thecharacterstcs s a Protabty Segment.Balue Fiel(s ,What performance measures do I want to track and anayse? Gross Saes,Surcharges, Dscounts, Cost-of-Saes.Characteristics- 5 Characterstcs are vad n a cents and are avaabe for a operatng concerns- Denton:CharacterstcsaretheanaytcdmensonsoftheProtabtyAnayss. Theydene what tems or ob|ects the user can evauate. Fi:e( c'aracteristics3 A number of fundamenta characterstcs are automatcaypredened n every operatng concern. These ncude the product number,company code, bng type, busness area, saes order, customer, and thecontrong area, to name but a few. In addton to the xed characterstcs, up to34non-/)ed characterstcs can be added to an operatng concern. #re(e)ne( c'aracteristics: In addton to the xed characterstcs, a number ofother predened characterstcs are avaabe n the ed cataogue. Suchcharacterstcsncudecustomergroup, customerdstrct, andcountry, andtheycan be added to your operatng concern f desred. &'aracteristicsfrom"A#ta*les: Youcandeneyour operatngconcernsbyusng characterstcs that aready exst n other appcatons. For exampe, you canseect eds from the tabes for customer master records, matera master records,and saes documents. You can aso seect the partner roes dened n the structurePAPARTNER n the Saes and Dstrbuton (SD) appcaton and use themascharacterstcs n Protabty Anayss. &ustom &'aracteristics: If the characterstc categores are nsumcent for yourneeds, you can dene competey new characterstcs from scratch for excusve usen Protabty Anayss. To derve vaues for these newy dened characterstcs, youneed to create your own dervaton rues.These non-xed characterstcs must be added to the )el( catalog before they can be usedtodeneanewoperatngconcern. Theedcataogorgnaycontanssomesuggestedcharacterstcs whch mght be used n a new operatng concern denton. There are two waysto add other characterstcs to the ed cataog:- Choose an exstng ed from certan SAP tabes, whch must be /ve charactersong oress.- Create a characterstc ndependenty, whch shoud begn wth ++and be 0our to /vecharacters tota.$alue %ieldsVaue eds are ony requred n costing-based Pro/tabilit! "nal!sis. These are the eds thatcontan the currenc% amountsan( @uantitiesthat you want to anayse n CO-PA.Theyrepresent the structure of your costs and revenues. Vaue eds can ether be hghy38Sampe CharacterstCreated by Customersummarzed, such as representng a summary of cost eement baances, or hghy detaed,such as representng |ust one part of a snge cost eement baance.- 5 Unke characterstcs, there are no ):e( value )el(s for a new operatng concern.- A vaue eds must exst n the )el( catalogbefore they can be used to dene a newoperatng concern. The ed cataog orgnay contans some suggested vaue eds, whchmght be used n a new operatng concern.- Vaue eds can aso be dened ndependenty. These shoud begn wth BB..., and shoudbe 0our to /ve characters n tota.Fi:e( 2asic De% Figures .Account-2ase( &O-#A onl%0- In account-based Protabty Anayss, a vaues are updated to accounts. Each amount sstored n up to three dherent currences under xed basc key gures, whch are accessedn reportng.Balue Fiel(s +it' New Time Aggregation 9ules- You can use vaue eds wth the aggregaton rues, SUM (summaton) AVG (average) andLAS (ast vaue) n CO-PA dr-down reports.- Aggregatonsthecombnatonor compressonof varous data, measuredvaues, orndcators to superordnate key gures usng certan rues (aggregaton rues). It s used fora spatay, temporay, or factuay compressed dspay. In ths way, you can aggregate themeasured vaues of a measurement network by cacuatng ther arthmetc average.De0ning an Operating Concern and its AttributesYou dene the structure of your operatng concern when you set up your system. Ths s donebyseectngthecharacterstcsyouwant tousenthedatastructuresof theoperatngconcern. In costng-based Protabty Anayss, you aso need to seect the vaue eds youwant to use. ! The structure of an operatng concern s vad n a cents.&urrenc% t%$es , Operatng concern currencyCompany code currencyProt center vauatonFiscal %ear variant , The sca year varant determnes the number of postng perods foreach sca year. Because each controng area assgned to the operatng concern, and eachcompany code assgned to each of the controng areas, can have ts own sca year varant,the varant you choose for the operatng concern must agree wth that for the other areas.7ata "tructures7e)ning 7ata "tructures , To dene data structures, copy the requred characterstcs andvaue eds to the operatng concern and save them.Activating t'e