Professional Documents
Culture Documents
Notes:
- You can change the controlling area name at any time
- The currency of the controlling are can either be the local currency of the company
code, the group currency, or any other parallel currency that is required for country
specific valuation
- The currency type could be country specific
- The chart of accounts used, would be the same chart of accounts that is used for the
country of the controlling area
- The K4 fiscal variant is pre-delivered, and can be changed when required
- In addition to the standard hierarchy that is used for PCA and CCA, you can define
another hierarchy using the transaction code KCH5. If you choose the option to not
use the standard hierarchy, then you must make the settings for “Do not use Std
Hier.”
- Multiple company codes can be assigned to the same controlling area, and not vice
versa.
- If you choose to use Profitability Analysis, you must create an Operating Concern.
Step 2: Assign the company code to the controlling Area:
- If you did choose to maintain an operating concern, you must also assign your
company code to the operating concern
- You can assign multiple company codes to a controlling area
Step 3: Maintain settings for the controlling Area:
- As part of the standard automatic setting, you will see that the Reconciliation Ledger
is active. This setting ensures that any posting in Finance that uses a CO object, will
also be posted simultaneously to CO.
- You also need to determine what elements of Controlling will be activated, the
settings within the transaction should look similar to the following:
- Activation is year dependant, so you need to decide upfront, how long (in years) that
the activation needs to be. To be safe, use the current year to 9999. If you are going
to also upload previous year data into SAP, please be sure to make this setting to
cover those previous years.
- Not all components of CO need to be activate, but when in doubt select everything.
- If in the initial stages of your configuration, you had decided to create an operating
concern, and assign it to the controlling area, then the profitability analysis
component that is shown above will be shown as being activated.
Step 4: Maintain number ranges for controlling documents:
- Please note, the number range defined in CO is not fiscal year dependant.
- The number ranges used in FI is not the same number range used in CO.
- Most important of all, you should never transport number ranges, always create
them in the target system.
Step 5: Maintain Actual / Plan Versions:
- Must have one Actual version. In standard SAP, this version is represented by the
number “0”
- Is it optional to have plan versions in SAP. In the standard system, the number “0”
also represents Plan version.
- You can have as many plan versions as required.
- No transaction code available
- The basic screen for the settings of version would appear as follows:
For every version you need to make the settings for Profit Center Accounting
For every version you need to make the settings for Each Fiscal Year
For every specific year, you need to ensure that the configuration is made as follows
(simply double click on the year)
Please note, if you are using Profitability Analysis (PA) and Project Systems (PS), there
are additional elements of configuration that needs to be completed.
SAP Cost Element Controlling Configuration
Any G/L account that needs to be a part of the P&L structure or that requires the posting
to a specific cost object (cost center, internal order etc.), needs to be created as a cost
element.
- Transaction code FS00 will create the G/L account
- Transaction code KA01 will create the cost element
- As part of daily reporting, you may see the need to group your cost elements into
specific freely defined categories. This can be done using transaction code KAH1.
Please note, a cost element can only belong to one category.
- IT IS VERY IMPORTANT TO MAKE AN INFORMED DECISION WHEN
ASSIGNING A COST ELEMENT CATEGORY TO COST ELEMENT, SINCE
WHEN A POSTING IS MADE TO A COST ELEMENT, YOU CANNOT CHANGE
THE COST ELEMENT CATEGORY ANYMORE.
SAP Profit Center Accounting Configuration
- Transaction code 0KE5
- The settings on this screen should appear similar to the following:
- The standard hierarchy name that appears on this screen is very important, as it
represents the top level hierarchy name for the company.
- The dummy profit center shown above must also be created either using transaction
code KE51 or using the configuration menu path
- Before you start using PCA, the fiscal year shown here must be set as active. The
activation of this fiscal year is set in the following screen maintained under General
Controlling configuration
- Before you start making postings to PCA, must also activate the postings that should
occur. This is done using the following menu path
The completed screen is relevant by fiscal year and should appear similar to the
following:
At the end of the year you need to be able to net Revenues and Costs into Net Income,
and carry forward this balance into the new fiscal year. This setting is done as follows
using transaction code 2KET, or the following menu path:
To do this you need to specify the G/L account for retained earnings by chart of accounts.
This step is done as follows:
SAP Profit Center Accounting Master Data Configuration
Before you begin creating profit center master data, it is important to map out exactly
what the profit centers in an organization represents. It is also important to determine the
numbering convention to be used for the profit center master data.
Before you begin creating profit center data, you need to make the following
configurations:
You can maintain as many groups as required, as this helps you in better reporting.
- Profit center master data is time dependant, so be careful that the correct validity date
is entered.
- Before a profit center can be used it needs to be activated. You can either perform
the activation as a part of the profit center creation, use KE52 and activate, or as part
of the mass activation process, you can navigate as per the above screen to activate
the profit center master data
- It is a very good and normal practice to create your profit center hierarchy and
structure in the SAP development environment, and then transport this hierarchy up
to production as it will save you a lot of time in creating the master data.
SAP Profit Center Accounting Posting Configuration
To post financial information into PCA, the following must be performed
In the standard system, the document type A0 comes pre-delivered (use it)
The number ranges used in PCA is fiscal year specific, and should appear similar to the
following:
It is good practice just to use the fiscal year 9999, as it will ensure that PCA will be valid
forever.
In standard SAP reporting, you have the option to use SAP pre-delivered reports. Before
these reports can be used, you may need to generate these reports, this activation step can
be done as follows in SAP configuration:
SAP Cost Center Master Data Configuration
Before you begin creating cost center master data, it is important to map out exactly what
the cost centers in an organization represents. It is also important to determine the
numbering convention to be used for the cost center master data.
Before you begin creating profit center data, you need to make the following
configurations:
Before using CCA in SAP, you need to activate it. This can be done by using the
following path or transaction code OKKP: (Please note this step is already done as part
of the general controlling configuration, but check it just in case):
Most of the configuration is already done as part of the general controlling and PCA set
up, but the following may still be required:
In many processes across a company, there is the need for the intervention of automatic
account assignment where certain staff may not be knowledgeable about what cost
centers, business areas or profit centers to use when posting to a G/L account – this
configuration setting helps to streamline that process.
As part of the internal order, you need to determine the reason for the order. There are
many parameters that are pre-delivered, hence you will need to determine the settings that
is the best fit for your internal order (there are no set rules for this configuration)
Please note internal order number ranges can be internal or external. The number range
has to be assigned to the internal order group.
Preparing the Internal Order for Settlement
So you have posted an internal order in a transaction, but now you need it to settle to a
destined receiver.
The transaction code that is used for the settlement of internal order is KO88 and KO8G
Preparing for Profit Center/Cost Center Planning
So far you have done the configuration required for planning including the creation of the
versions required for planning.
You can manually enter plan data into SAP by using the transaction codes:
- Cost Center Planning (KP06)
- Internal Order Planning (KPF6)
- Profit Center Planning (7KE1)
- Profit Center Planning for Balance Sheet accounts (7KE3)
The transactions above will allow you to manually enter the plan data into SAP, either
based on a period by period basis, or on an annual pro-rated basis.
This however may take a lot of time, so in SAP you can develop a Planner Profile.
Within the areas of CCA, PCA, IO, there are separate transaction codes used for creating
planner profiles, but the following will demonstrate the use of planning for Cost Center
Accounting
Populate the screen as required from the listed options, and your completed screen
should appear similar to the following:
Save your entries, and select on the left “Layouts for Controlling”. The populated screen
should appear similar to the following:
Click on Enter, and the following Excel template will be made available