SAP COSTCENTER.ppt

8/10/2019 SAP COSTCENTER.ppt

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Overhead Cost Controlling


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bjectives

To gain understanding of key business processes of SAP Overhead Cost

Management (OCM)

Understand the Organiationa! unit in Contro!!ing

"etermine the origin of posting in Cost center Accounting


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SAP Overview

SAP Overhead Cost Management


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Overhead Cost Management

The Overhead Cost Contro!!ing component (CO#OM) he!ps you to p!an$ a!!ocate$ contro!$

and monitor overhead in your organiation

%y p!anning in overhead areas$ you can deve!op standards$ that a!!o& you to contro! costs

and va!uate interna! activities'

Cost Centre Accounting

Cost Center Accounting ana!yes &here overhead occurs &ithin the organiation Costs are assigned to the sub#areas of the organiation &here they originated'

SAP offers a &ide variety of methods for a!!ocating posted amounts and

uantities'

*nterna! Order Accounting

*nterna! Orders co!!ect and ana!ye costs based on individua! interna! +obs'

SAP can monitor and automatica!!y check budgets assigned to each +ob'


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OCM Processes



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PlanningPlanningMasterMaster

DataData

ActualActual

PostingPosting

Period EndPeriod End

ClosingClosing

ReportingReporting

OCM Processes

P!anningpreparation

Cost CentreP!anning

*nterna! OrderP!anning

P!an costdistribution

P!an costassessment

P!an indirectactivity a!!ocation

P!an sett!ement ofoverhead costorders

,eposting Actua! Cost

distribution Actua! Cost

Assessment Cost Sp!itting Ca!cu!ate Actua!

Activity Prices Sett!ement of

Overhead Orders Manua! Cost

A!!ocation -*CO

,econci!iation

Cost .!ement Cost Centre Activity Type ,esource

Statistica! /ey-igures

*nterna! order 0roups

Manua! entries S/- entry "irect activity

a!!ocation

*ndirect activitya!!ocation Order budget


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Master Data



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Organizational Units & Master Data

A1 Ltd

9200

A Ltd

9100

HQ

1000

Cost Centers Purchasing13

Gen

Services

14

Coman! Codes

"rders Cost "#$ects

Sa%es and

&ar'eting

1(

) * +

1,

"ther Cost "#$ects

"erating Concern

Contro%%ing Area

A Gr "erating

Concern -9100.

A Gr Contro%%ingArea -1000.

/th!%ene

Pro!%enePharma Po%!o%eins Poer

+e%eco

mmuni

cation

norm

ation

techno

%og!

Cororate

common

Proit Centers


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Cost Element

"escription

A cost e!ement c!assifies the organiation1s va!uated

consumption of production factors &ithin a contro!!ing area

Primar! /%ement# costs that originate outside the company2re!ate direct!y to the income statement in -* and must be

inc!uded in the -* Chart of Accounts

Secondar! /%ement# costs that resu!t from interna!

a!!ocation activities2 3O re!ation to 045 accounts in -*' Theseaccounts are e6c!usive!y for cost accounting and are on!y

maintained in CO


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inancia%inancia%

AccountingAccounting

Genera% LedgerAccounts Pa!a#%eAccounts )eceiva#%eied Assets+reasur!

Contro%%ingContro%%ing

Cost Centre Accountingnterna% "rdersProduct CostingProita#i%it! Ana%!sis

Cost Element vs G Acco!nt

Charto

0Accounts

Charto

0Accounts

5a%ance5a%ance

SheetSheet

AccountsAccounts

Ad$ustmentAd$ustment

AccountsAccounts

Cost/

%ements

Cost/

%ements

Secondar!Secondar!

CostCost

/%ements/%ements

ncomencome

StatementStatement

AccountsAccounts

Primar!Primar!

CostCost

/%ements/%ements

6o5a%ance

6o5a%ance

Sheet

Sheet

Acco

untsin

Acco

untsin

Contr

o%%ing

Contr

o%%ing

A%%rimar!

A%%rimar!

coste%ements

coste%ements

%in'edto

%in'edto

2ncomeStatement

2ncomeStatement

Accounts

A

ccounts

6oSe

condar!

6oSe

condar!

Cost/

%ements

Cost/

%ements

2n3ina

ncia%

2n3ina

ncia%

Accou

nting

Accou

nting


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Cost Centre

"escription Organiationa! unit &ithin a contro!!ing area that represents a

defined !ocation of cost incurrence' The definition can bebased on7

-unctiona! reuirements

A!!ocation criteria

Physica! !ocation

,esponsibi!ity for costs

"efines the sma!!est area of responsibi!ity &ithin the companythat causes and inf!uences costs2 the !o&est !eve! to &hichyou can meaningfu!!y assign direct and indirect costs


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Gro!%s

"escription

OCM master data can be grouped together$ for e6amp!e

Cost Centre 0roups

Cost .!ement 0roups

Activity Type 0roups

Statistica! /ey -igure groups

*nterna! Order 0roups

Master data groups are used in reporting$ p!anning$ a!!ocation$ etc'

8ou can divide comp!e6 groups into manageab!e sections by separating them intosub#groups

8ou can create and maintain sub#groups separate!y and then combine them in!arger groups


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Planning



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Planning %re%aration


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Cost center %lanning

Cost /%ement P%anning

Cost /%ement P%anningCost /%ement P%anning

=ear 2001Periods 1 to 12Cost center 30100 >C" consu%ting

Cost e%ement 6ame

Sa%aries+rave% costs

11

?ersionP%anned costs

Cost center Senior

consu%ting

Cost center

>C"consu%ting

@unior

consu%ting

P%anned costs on the cost

center

900000(00000

4300004:4100

Input


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Plan cost Distrib!tion

Coman! Genera%Coman! Genera%

&ateria%s&ateria%s 100100

Sta Sa%ariesSta Sa%aries 200200

)ent * )ates)ent * )ates

Light * HeatingLight * Heating

?ehic%es?ehic%es

)eairs)eairs

+rave%%ing+rave%%ing 2020

Hote%sHote%s 3030

+ota%+ota% 00

AdministrationAdministration

&ateria%s&ateria%s ,0,0




?ehic%es?ehic%es

)eairs)eairs


Hote%sHote%s 1;1;

+ota%+ota% 210210

Production SuortProduction Suort


Sta Sa%ariesSta Sa%aries ;0;0



?ehic%es?ehic%es

)eairs)eairs

+rave%%ing+rave%%ing ;;

Hote%sHote%s 1212

+ota%+ota% 140140

A%%ocation through origina% cost e%ementA%%ocation through origina% cost e%ementA%%ocation through origina% cost e%ementA%%ocation through origina% cost e%ement


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Plan Cost Assessment






?ehic%es?ehic%es

)eairs)eairs


Hote%sHote%s 3030

Coman! Genera% CostsComan! Genera% Costs 73(073(0

+ota%+ota% 00


&ateria%s&ateria%s

Sta Sa%ariesSta Sa%aries



?ehic%es?ehic%es

)eairs)eairs

+rave%%ing+rave%%ing

Hote%sHote%sComan! Genera% CostsComan! Genera% Costs 210210

+ota%+ota% 210210


&ateria%s&ateria%s




?ehic%es?ehic%es

)eairs)eairs


Hote%sHote%s

Coman! Genera% CostsComan! Genera% Costs 140140

+ota%+ota% 140140

A%%ocation through secondar! cost e%ementA%%ocation through secondar! cost e%ementA%%ocation through secondar! cost e%ementA%%ocation through secondar! cost e%ement


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Act!al Posting



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Man!al Entries

Primary postings inc!ude the fo!!o&ing transactions

Payro!!

Materia! Usage

Trave!

0oods ,eceipt 4 *nvoice

9ourna! entry

"epreciation


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Statistical e# 'ig!re Entr#

Statistica! /ey -igures reuired for reporting and a!!ocations may be

entered into the system during the month or at month#end

They are recorded &ith a Contro!!ing document number

Statistica! /ey -igures may a!so be transferred from 5ogistics *nformation

System (5*S)


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Direct Activit# Allocation

"escription "irect activity a!!ocation invo!ves the measuring$ recording$ and a!!ocating

of business services performed

Activity types are used as the cost drivers

Activity a!!ocation occurs$ for e6amp!e$ &hen business transactions areconfirmed or &hen posting activity uantities to accounts$ eg P!antMaintenance :our$ Production :ours$ Uti!ities$ etc

The system mu!tip!ies the activity produced by the price of the activitytype'

Activity types are p!anned using prices set manua!!y or using SAP;s priceca!cu!ation


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(ndirect Activit# Allocation

"escription *ndirect Activity A!!ocation is a method of a!!ocating actua! and p!an costs

using activity uantities as the basis' *t is e6treme!y beneficia! &hen

ca!cu!ating the activity uantities on the sender invo!ves too much time or

e6pense' The va!ue can be ca!cu!ated inverse!y based on the activityuantities actua!!y consumed or p!anned on the receivers


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Period End Closing



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*e%osting

8ou can repost primary costs manua!!y using transaction#based

reposting$ &hereby the origina! cost e!ement is a!&ays retained' This

function is designed main!y to ad+ust posting errors'

8ou shou!d a!&ays ad+ust posting errors in the app!ication component

&here they occurred' This ensures that -* and CO are a!&ays reconci!ed

8ou can on!y ad+ust posting errors invo!ving one cost accounting ob+ect (a

cost center or interna! order for e6amp!e) using a transaction#based

reposting in Contro!!ing (CO)'


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Allocations + Descri%tion

T&o types of a!!ocations7

"istribution

The fo!!o&ing information is passed on to the receivers7

The origina!$ primary$ cost e!ement is retained'

Sender and receiver information is documented &ith !ine items in the

CO document

Assessment

The fo!!o&ing information is passed on to the receivers7

The origina! cost e!ements are grouped together into assessment coste!ements (secondary cost e!ements)' The origina! cost e!ements are

not disp!ayed on the receivers'

Sender and receiver information is disp!ayed in the CO document


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Distrib!tion






?ehic%es?ehic%es

)eairs)eairs


Hote%sHote%s 3030

+ota%+ota% 00


&ateria%s&ateria%s ,0,0




?ehic%es?ehic%es

)eairs)eairs


Hote%sHote%s 1;1;

+ota%+ota% 210210



Sta Sa%ariesSta Sa%aries ;0;0



?ehic%es?ehic%es

)eairs)eairs

+rave%%ing+rave%%ing ;;

Hote%sHote%s 1212

+ota%+ota% 140140

A%%ocation through origina% cost e%ementA%%ocation through origina% cost e%ementA%%ocation through origina% cost e%ementA%%ocation through origina% cost e%ement


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Assessment






?ehic%es?ehic%es

)eairs)eairs


Hote%sHote%s 3030


+ota%+ota%

00


&ateria%s&ateria%s




?ehic%es?ehic%es

)eairs)eairs


Hote%sHote%sComan! Genera% CostsComan! Genera% Costs 210210

+ota%+ota% 210210


&ateria%s&ateria%s




?ehic%es?ehic%es

)eairs)eairs


Hote%sHote%s

Coman! Genera% CostsComan! Genera% Costs 140140

+ota%+ota% 140140

A%%ocation through secondar! cost e%ementA%%ocation through secondar! cost e%ementA%%ocation through secondar! cost e%ementA%%ocation through secondar! cost e%ement


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Calc!late Act!al Activit# Prices

"uring actua! price ca!cu!ation$ the system ca!cu!ates iterative prices foractivity types or business processes based on actua! costs and actua!activities' The ca!cu!ation takes into account a!! activity e6changesbet&een cost centres or business processes'

Price ca!cu!ation$ &hich you can carry out during p!anning$ is based on

p!anned costs and activity' The resu!ting prices are used to va!uate actua!activity'

After running actua! price ca!cu!ation$ you can choose to reva!ue actua!activity at actua! prices' This reva!uates the activity using the differencebet&een p!an and actua! prices' %y reva!uing the actua! activity &ithactua! prices$ you can fu!!y ba!ance sender cost centres and senderbusiness processes'


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Settlement o, Overhead Cost Orders

Some or a!! of the p!an and actua! costs incurred on an ob+ect area!!ocated to one or more receivers'

System automatica!!y generates offsetting entries to credit the senderob+ect' The debit postings assigned to a sender ob+ect remain in p!aceeven after sett!ement to a receiver

T&o types7 Periodic < .very period

-u!! < After comp!etion

T&o methods7 *ndividua!

%y individua! sender ob+ect A!!o&s to ana!ye in greater detai!

Co!!ective

Processes a !arge number of sender ob+ects

Used during period#end c!osing activities


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ied Assetied Asset

Settlement o, Overhead Cost Orders

"verhead Cost "rder"verhead Cost "rder




?ehic%es?ehic%es

)eairs)eairs


Hote%sHote%s 3030


Caita%isationCaita%isation 72007200

+ota%+ota% 00

Cost "#$ect 5Cost "#$ect 5

&ateria%s&ateria%s




?ehic%es?ehic%es

)eairs)eairs


Hote%sHote%s

Coman! Genera% Costs 1(0Coman! Genera% Costs 1(0

+ota%+ota% 1(01(0

A%%ocation through origina% cost accountA%%ocation through origina% cost account

or sett%ement cost e%ementor sett%ement cost e%ement

A%%ocation through origina% cost accountA%%ocation through origina% cost account

or sett%ement cost e%ementor sett%ement cost e%ement


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Man!al Cost Allocation

Manua! cost a!!ocation invo!ves posting secondary costs manua!!y' The

system credits a sender ob+ect (for e6amp!e$ a cost center) and debits a

receiver ob+ect (for e6amp!e$ an order)

8ou can use manua! a!!ocation to7

Avoid the need for comp!icated Customiing settings for simp!ea!!ocations

Manua!!y transfer e6terna! data

Make simp!e ad+ustments to incorrect secondary postings'


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'(CO *econciliation

The reconci!iation !edger is a too! used to portray transaction figures in

Contro!!ing in a summaried form

*t provides reports &ith &hich you can monitor the CO4-* reconci!iation for

each account

*t can determine and disp!ay va!ue f!o&s that &ere posted in CO acrosscompany codes and functiona! areas

.ach company code in -* represents an independent accounting unit for

&hich a ba!ance sheet must be created' "ata f!o&s bet&een company

codes must be posted separate!y so that no information is !ost' These

boundaries are not re!evant for Contro!!ing (CO)' 8ou can use reconci!iation postings to transfer cross#company code$ or

cross#functiona! area postings made in CO that are re!evant to -*$ and to

automatica!!y create reconci!iation postings there


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Month-.ear end Closing + Process Ma%/0-12

SAP .nab!ed

Processes

.!ectronic

ProcessesSAP @o# )o%e

Ad+ust*nventory =

05 "oc' entry

9

,evie& > correct

bi!! ing errors

3

,e!ease the

payro!!

#?

.nsure payro!!

Are posted

05 *nuiry

4

.nsure sett!ement> depreciation

Are posted,un "epreciation

C!ose the period

for AP > A,

C!ose PostingPeriod

.nter +ourna!voucher =

05 "oc' entry

8 10 11C!ose the period

for MM

C!ose PostingPeriod

7

AP "isbursement

#@

Cash Out#

-i6ed AssetB%S Sett!ement

#

-i6ed Asset

,un "epreciation

#@D

Send the month!ySchedu!e manager

5ogistics

1

Ackno&!edgeSchedu!e manager

2 Treasuryactivities

Treasury

,Simu!taneousCosting =

5ogistics

(


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Month-.ear end Closing + Process Ma%/1-12

SAP .nab!ed

Processes

.!ectronic

ProcessesSAP @o# )o%e

.6ecute

Assessment

Cyc!eA!!ocations

21

,un the

,econci!iation5edger

,ec' CO &ith -*

22

-ina! C!ose

Of 05C!ose Posting

Period

23

0eneratedfinancia! reports

05 ,eporting

24

Tempora!!y

C!ose 05

C!ose PostingPeriod

17

/nd

,un the foreign

Currency va!uation =

05 PeriodicProcessing

Comp!ete the

e!ectronic bank

reconci!iation =

Carryfor&ard

ba!ances =

Periodic Pro'

1( 1,

2(

0enerate a

Pre!iminary

financia! report05 ,eporting

18

Update materia!s

prices =Pricing

14"etermine the

5o&est va!ue

Princip!e =Pricing

13

Product Costing =5ogistics

Materia! 5edger4Actua! Costing =

5ogistics

19 20

C!ose the

Period for -A

C!ose PostingPeriod

12


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*e%orting



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OCM *e%orting

Comprehensive$ f!e6ib!e information system to ana!ye cost f!o&s

Carry out standard recurring eva!uations

Construct specia! reports for uniue situations

Ana!ye a!! costs on!ine and trace them right back to the origina!

document .6ecute a!! reports avai!ab!e on!ine in background runs as &e!! (he!pfu! for

!arge amounts of data)

-or hierarchica!!y grouped ob+ects$ such as cost centers$ you can create

separate reports for a!! hierarchy nodes and individua! ob+ects$ or you can

create a!! the re!evant reports in a sing!e se!ection run through thedatabase

The second option a!!o&s you to navigate &ithin a hierarchy' This enab!es

particu!ar!y f!e6ib!e monitoring of cost center areas


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OCM Sam%le *e%ort Selection Criteria 3


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Documents

SAP COSTCENTER.ppt