 Tata Consultancy Services  SAP AG CO - Controlling

 Tata Consultancy Services Target Group Audience: Officers responsible for maintaining the controlling (costing) function.

 Tata Consultancy Services Contents Organizational structure Maintaining Master records Standard Hierarchy Cost centres Cost elements Activity Types Planning Activities Cost Centre Budgets Activity Prices

 Tata Consultancy Services Contents (contd.) Actual Posting - FI transactions Accounts with default cost centres Accounts w/o default cost centres - enter at transaction level Correction in cost centre entry Actual Posting - MM / PP transactions Periodic Reposting of Costs - Cycles

 Tata Consultancy Services Course Objectives Understand the organizational structure and maintain master records Maintain activity prices and planning / budgeting data Determine cost centres at transaction level Understand CO entries from MM / PP modules Reallocate costs from cost centre(s) to cost centre(s) At the conclusion of this course, you will be able to:

 Tata Consultancy Services Organisational structure in Controlling

 Tata Consultancy Services Single Company Code Assigned to Controlling Area

 Tata Consultancy Services E+L’s structure Company Code ZEL Controlling Area ZEL

 Tata Consultancy Services Maintaining Master Records

 Tata Consultancy Services Master Data Structure Standard Hierarchy Cost centres Cost elements Activities Work centres Structure at E + L = = Activity Cost centre Work centre

 Tata Consultancy Services Master Data - Standard Hierarchy Grouping of Cost centres for MIS Add or Delete groups / sub groups The lowest item would contain one or more cost centre(s) Depending on the hierarchy area mentioned in the cost centre master

 Tata Consultancy Services Master Data - Standard Hierarchy Menu Path : Accounting -- Controlling -- Cost centres -- Standard Hierarchy -- Change

 Tata Consultancy Services Master Data - Cost centres Cost centres - collectors of cost for management information Production cost centres -Lathe - MKL 400 model, Arc welding etc. Service cost centres - Administration, Accounts etc. Menu Path : Accounting -- Controlling -- Cost Centres -- Master Data -- Cost Centre -- Individual Processing --  Create  Change  Display  Delete  Display Changes

 Tata Consultancy Services Master Data - Cost centres

 Tata Consultancy Services Master Data - Cost elements Cost element is the smallest unit in the controlling hierarchy Primary cost elements - corresponding to a GL expense account in FI Secondary cost elements - For internal activity prices and overhead allocations Under default account assignment, a default cost centre can be maintained for each cost element Menu Path : Accounting -- Controlling -- Cost Centres -- Master Data -- Cost Element -- Individual Processing  Create Primary  Create Secondary  Change  Display  Delete  Display Changes

 Tata Consultancy Services Cost Elements

 Tata Consultancy Services Master Data - Activity Type Activity Type to be defined for each activity having a different price (machine hour rate or absorption rate) At E+L, there is a one to one relation between Cost centre, Work centre and Activity Type Thus the activity types correspond to the various cost and work centres such as Lathe - MKL 2215 model A secondary cost element is to be defined for each activity in the master Menu Path : Accounting -- Controlling -- Cost Centre -- Master Data -- Activity Type -- Individual Processing --  Create  Change  Display  Delete  Display Changes

 Tata Consultancy Services Master Data - Activity Type Secondary Cost Element

 Tata Consultancy Services Planning Activities

 Tata Consultancy Services Planning - Cost Centre Budget Budget amounts to be entered for all production cost centres Enter annual values and distribute equally over 12 months (Distribution Key 1) OR Enter monthly values for each of the cost centre (Distribution Key - 0) Budget can be revised any time during the year Menu Path : Accounting -- Controlling -- Cost Centre -- Master Data -- Planning -- Cost Centre Budget  Change  Display

 Tata Consultancy Services Planning - Activity Prices For each Activity - cost centre, a price is to be entered under planning This rate would be calculated outside and entered in the system E.g. Cost centreActivityPrice Rs Rs Different prices can be entered for different periods - can be used to revise absorption rate in the middle of the year Menu Path : Accounting -- Controlling -- Cost Centre -- Master Data -- Planning -- Activities/prices  Change  Display

 Tata Consultancy Services Actual Posting

 Tata Consultancy Services Actual Posting - FI Transactions Accounts with default cost centres FREIGHT INWARD OCTROI INWARD Cost Centre CARTAGE INWARD Accounts w/o default cost centres - to be entered at transaction level BASIC SALARY -STAFF BASIC SAL. WORKERS DA HRA Account assignment model with cost centres - for frequent expense transactions

 Tata Consultancy Services Actual Posting - FI Transactions Corrections in cost centre for FI documents already posted (Note : CO document for an FI document can be viewed by displaying the FI document and going to ‘Environment - Accounting documents’) Menu Path : Accounting -- Controlling -- Cost Centre -- Actual Postings -- Repost Line Items - Enter Enter FI document Number Select the line item, in which cost centre is to be changed Repost the cost from Sender Cost centre to one or more Receiver Cost centres

 Tata Consultancy Services Actual Posting - Transactions in other Modules CO Documents are automatically generated on posting of some transactions in other modules such as : Issue of Material to Cost centre / Production order Confirmation of an activity in a production order On receipt of goods in stores from shopfloor On calculation of overheads for a production order On settlement of costs of a production order Scrap / Rejection Sub-contracting Posting of Invoice - SD  Entries for Rebate expenses  Entries for Excise / Sales tax expense on Sales Returns CO documents can be viewed thru “Accounting Docs.. -- CO Document”

 Tata Consultancy Services Periodic Reposting of Costs Periodic Reposting of costs from Service Cost centres to Production Cost centres can be automated by creating reposting cycles Menu Path : Accounting -- Controlling -- Cost Centres -- Actual Posting -- Period end Closing -- Periodic Reposting -- Extras -- Cycle -- Create Cycles More than one cycle can be run simultaneously One Cycle can have different segments to post from different cost centres Segments In a segment the sender and receiver cost centres are defined Sender Cost Centre - Costs can be defined as Total Costs or %age or a specific amount Receiver Cost Centre - Costs to be received can be defined as amount or %age

 Tata Consultancy Services Creation of Cycle for Periodic Reposting of Costs Sender Cost Centre details

 Tata Consultancy Services Creation of Cycle for Periodic Reposting of Costs Receiver Cost Centre details