𝓘𝓶𝓹𝓸𝓻𝓽𝓪𝓷𝓽 𝓲𝓷𝓯𝓸𝓻𝓶𝓪𝓽𝓲𝓸𝓷 𝓸𝓯 𝓒𝓸𝓼𝓽 𝓬𝓮𝓷𝓽𝓮𝓻

𝙰 𝚌𝚘𝚜𝚝 𝚌𝚎𝚗𝚝𝚛𝚎 𝚒𝚗 𝚘𝚛𝚐𝚊𝚗𝚒𝚜𝚊𝚝𝚒𝚘𝚗𝚊𝚕 𝚖𝚊𝚗𝚊𝚐𝚎𝚖𝚎𝚗𝚝 𝚛𝚎𝚏𝚎𝚛𝚜 𝚝𝚘 𝚊 𝚜𝚙𝚎𝚌𝚒𝚏𝚒𝚌 𝚊𝚛𝚎𝚊 𝚠𝚑𝚎𝚛𝚎 𝚎𝚡𝚙𝚎𝚗𝚍𝚒𝚝𝚞𝚛𝚎𝚜 𝚊𝚛𝚎 𝚒𝚗𝚌𝚞𝚛𝚛𝚎𝚍 𝚊𝚗𝚍 𝚜𝚎𝚙𝚊𝚛𝚊𝚝𝚎𝚕𝚢 𝚛𝚎𝚌𝚘𝚛𝚍𝚎𝚍. 𝙸𝚗 𝚌𝚘𝚜𝚝 𝚌𝚎𝚗𝚝𝚛𝚎 𝚖𝚊𝚗𝚊𝚐𝚎𝚖𝚎𝚗𝚝 𝚊𝚌𝚌𝚘𝚞𝚗𝚝𝚒𝚗𝚐, 𝚘𝚟𝚎𝚛𝚑𝚎𝚊𝚍 𝚌𝚘𝚜𝚝𝚜 𝚊𝚛𝚎 𝚌𝚘𝚕𝚕𝚎𝚌𝚝𝚎𝚍 𝚊𝚗𝚍 𝚍𝚒𝚜𝚝𝚛𝚒𝚋𝚞𝚝𝚎𝚍 𝚝𝚑𝚛𝚘𝚞𝚐𝚑 𝚌𝚘𝚜𝚝 𝚌𝚎𝚗𝚝𝚛𝚎𝚜.

📌𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝 𝐚𝐧𝐝 𝐀𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐞 𝐇𝐢𝐞𝐫𝐚𝐫𝐜𝐡𝐢𝐞𝐬:

A standard hierarchy shows the structure of your firm, but other hierarchies allow for more customizable reporting. The cost center standard hierarchy should represent your company's structure and be used frequently in reporting. This is because the conventional hierarchy, which ensures that all cost centers are contained inside a restricted area, is simple to maintain. While alternative hierarchies provide more flexible reporting, they can only be used with transactions that have limited capability. Through the transaction code: OKEON you can create and maintain the standard hierarchy.

The conventional hierarchy is actually a cost centre group that includes all cost centers. A cost centre group hierarchy is also included in the conventional structure.Transaction OKEON can only be used to maintain the standard hierarchy or groups inside the standard hierarchy. You can establish as many other hierarchies as you need for reporting, but you must keep them up to date with Transaction KSH2.

📌𝐂𝐨𝐬𝐭 𝐄𝐥𝐞𝐦𝐞𝐧𝐭 𝐃𝐞𝐟𝐚𝐮𝐥𝐭 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐀𝐬𝐬𝐢𝐠𝐧𝐦𝐞𝐧𝐭

You need to assign a cost object, such as a cost centre or order, when posting to Control (CO). Usually, you assign a default object so that you don't have to make a manual entry for every expense posting.

You can maintain cost elements with Transaction KA02

To keep the default account assignment for any postings indicated by this cost element per controlling area, provide a cost centre, order, or both. If you fill in both fields, the posting to the ORDER is actual, while the posting to the Cost Centre is solely for statistical or reporting purposes. This indicates that the cost centre will preserve a record of the posting, but the costs will not be included in the total cost of the cost centre. If you enter a Cost Centre or an ORDER, the posting will be actual and will be reflected in the overall cost of the related cost centre or order. This may not be appropriate if two Cost centre Accounting plants in the same controlling region require distinct cost centers to be assigned. You can display a listing of all default account assignments in cost element master data with Transaction KA23.

📌𝐇𝐨𝐰 𝐭𝐨 𝐂𝐨𝐩𝐲 𝐂𝐨𝐬𝐭 𝐜𝐞𝐧𝐭𝐞𝐫 𝐏𝐥𝐚𝐧?

When developing next year's cost centre strategy, you may want to copy the current year's plan and make the necessary changes. This allows you to copy and update actual data to plan data using normal transactions. Let's take a closer look at these typical transactions. The transaction code:KP97

📌𝐏𝐥𝐚𝐧 𝐂𝐨𝐬𝐭 𝐒𝐩𝐥𝐢𝐭𝐭𝐢𝐧𝐠

During the cost-splitting phase of the plan. The system distributes a cost center's activity-independent costs among its activity kinds. During the plan price computation, plan costs are automatically separated. Let's start with activity-dependent and activity-independent expenses, and then we'll look at how the costs are distributed.

Transaction KP06 allows you to plan both activity-independent and activity-dependent costs.

✔️ᴀᴄᴛɪᴠɪᴛʏ-ɪɴᴅᴇᴘᴇɴᴅᴇɴᴛ ᴘʟᴀɴɴɪɴɢ: If you do not enter an Activity Type in KP06, then the plan information you enter on the following planning screen is independent of an activity. All costs you enter are fixed.

✔️ᴀᴄᴛɪᴠɪᴛʏ-ᴅᴇᴘᴇɴᴅᴇɴᴛ ᴘʟᴀɴɴɪɴɢ: If you enter activity type in KP06, then the plan cost information is directly associated with that activity. You have the choice of entering fixed and variable costs. 

for the price of the plan activity to be calculated automatically by the system. Every expenditure that is not directly related to an activity must be. Plan cost splitting describes this feature in Cost Centre Accounting. Equivalence numbers and splitting structure are two ways to arrange cost splitting. When manually setting activity pricing ranges, you can define equivalency numbers in Transaction KP26.

📌𝐀𝐜𝐭𝐮𝐚𝐥 𝐏𝐫𝐢𝐜𝐞 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧:

A further period-end procedure called Revaluation at Actual Prices can be used, if necessary, to distribute cost centre under/over absorption to items. Using this method, the additional planned activity price required to allocate every cost centre is calculated. debits. The cost centre then receives the necessary credits when orders are revalued with the additional debits. The cost center's actual balance is 0 after revaluation.

You can maintain version configuration with Transaction OKEQ.

Revaluation occurs automatically during actual price calculation. You carry out actual price calculation with Transaction KSII. Complete the selection fields and click on the Execute icon to run the transaction. You can analyze the results of actual price calculation in the information system with Transaction KSBT

📌𝐂𝐨𝐬𝐭 𝐂𝐞𝐧𝐭𝐞𝐫 𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬:

The variance calculation provides information on the reasons for variances, which are useful when analyzing the difference between actual

and target costs. The cost centre balance is assigned to input and output variance categories based on the source of the variance.

Configuration required for cost centre variance calculation includes:

Create target cost version Transaction OKV5

Create variance variant - Transaction OKVF

Assign a variance variant to a target version Transaction OKV5.

You can calculate cost centre variance with Transaction KSS1.

You report on variance calculation in the information system with Transaction S_ALR_87013627.