1. Controlling Cost Centers

2. Course Overview Objectives
Provide an overview of the CO module
Identify CO master data terminology and concepts
Understand the cost center process
List the triggers for changes to the cost center hierarchy
Describe the various tools for creating, changing, deleting, and displaying cost centers/cost center groups
Explain the various CO master data roles
Controlling Cost Centers

3. Overview of Controlling (CO)
Definition
Controlling (CO) represents the County’s flow of cost and revenue. It is also a management instrument for organizational decisions.
Controlling facilitates coordination, monitoring and optimization of all processes in an organization.
Controlling (CO) and Financial Accounting (FI) are independent components in the SAP R/3 system. However, the two components are tightly integrated and the data flow between the two components takes place on a regular basis.
Controlling Cost Centers

4. SAP Financial and Purchasing Components
Manages vendor invoices
Manages responsibility accounting
The “Top” book of financial records
Manages customer billing
Manages fixed assets and depreciation
Accounts
Receivable FI
Controlling
Payable
Asset
Accounting CO
General
Ledger
Manages purchasing/inventory management
Materials
Management MM
Controlling Cost Centers

5. What Goes Where HR/Materials Other Financial Modules
Management Modules
Other Financial Modules
FI Module
ACCOUNTS
RECEIVABLE
PAYABLE
ASSETS
FUNDS MANAGEMENT
PAYROLL
PURCHASING
CONTROLLING
GRANTS
MANAGEMENT
INVENTORY
MANAGEMENT
Controlling Cost Centers

6. Controlling Cost Centers
Key CO Terminology:
Cost Center
Cost Center Group
Controlling Cost Centers

7. Controlling Cost Centers
Areas of responsibility in the County that incur costs.
Examples:
Tax Assessor Administration
Tax Motor Vehicle
Tax Automation
Human Resources Administration
Human Resources Benefits
etc.
Controlling Cost Centers

8. Cost Center (continued)
As cost centers are created, the following attributes are defined:
Cost Center ID Number (10 digits)
Validity Period
Name (up to 20 characters)
Description (up to 40 characters)
Person Responsible (department head)
Department
Cost Center Category (ex: Admin)
Hierarchy Area (ex: Human Resources) [name of cost center group (dept)]
Business Area (use 1000*)
* For CSCD State, use 2000.
Controlling Cost Centers

9. Controlling Cost Centers
Cost Center Group
A hierarchical group of cost centers.
Examples:
Elections
Tax
Human Resources
etc.
After a cost center group is created, cost centers are assigned to that group.
Controlling Cost Centers

10. Cost Center Group (continued)
As cost center groups are created, the following attributes are defined:
Cost Center Group Name (10 characters, no spaces)
Description (up to 40 characters)
Controlling Cost Centers

11. Cost Center Group (continued)
Examples:
= cost center group;
= cost center;
Controlling Cost Centers

12. Create/Change Cost Centers Business Process
1. Create Cost Center Group
Within Hierarchy
2.Create/Change
Cost Centers
5. Make Changes To Cost Centers/Groups
3. Assign Cost Center
To Hierarchy
(Cost Center
Group)
4. Assign Cost Center To
Funds Management*
* Performed in
Funds Management module
Controlling Cost Centers

13. Process Triggers and Outputs (cost center groups)
Trigger:
Output:
Create a new cost center group (OKEON)
Business need for a new cost center group.
Updated cost center hierarchy.
Change a cost center group (OKEON)
Business need to change an existing cost center group.
Move a cost center group (OKEON)
Business need to move an existing cost center group to a new location in cost center hierarchy.
Delete a cost center group (KSH2)
Unneeded cost center group.
Controlling Cost Centers

14. Process Triggers and Outputs (cost center)
Trigger:
Output:
Create a new cost center (OKEON)
Business need for a new cost center.
Updated cost center hierarchy.
Change a cost center (OKEON)
Business need to change an existing cost center.
Move a cost center (OKEON)
Business need to move an existing cost center to a new cost center group.
Delete a cost center (KS04)
Unneeded cost center.
Controlling Cost Centers

15. 1. Creating Cost Center Groups
TWO OPTIONS:
A. Manual Method (KSH1)
B. Standard Hierarchy Tool* (OKEON)
*Note: The Standard Hierarchy Tool allows the user to view the existing cost center hierarchy as they are creating their new cost center group.
Controlling Cost Centers

16. 1. Creating Cost Center Groups (continued)
A. Manual Method (KSH1)
Controlling Cost Centers

17. 1. Creating Cost Center Groups (continued)
B. Standard Hierarchy Tool (OKEON)
used to specify timeframe for changes/updates. Must be checked before using the Standard Hierarchy tool.
Controlling Cost Centers

18. 2. Creating/Changing/Deleting
Cost Centers
OPTIONS:
A. Create A Cost Center (KS01)
B. Change A Cost Center (KS02)
C. Delete A Cost Center (KS04)
D. Collective Processing of Cost Centers
Change (KS12)
Delete (KS14)
Standard Hierarchy Tool* (OKEON)
*Note: The Standard Hierarchy Tool allows the user to view the existing cost center hierarchy as they are creating, changing, or moving cost centers.
Controlling Cost Centers

19. Controlling Cost Centers
2. Creating A Cost Center
A. Create A Cost Center (KS01)
Controlling Cost Centers

20. Controlling Cost Centers
2. Changing A Cost Center
B. Change A Cost Center (KS02)
Controlling Cost Centers

21. Controlling Cost Centers
2. Deleting A Cost Center
C. Delete A Cost Center (KS04)
Controlling Cost Centers

22. 2. Collective Processing of Cost Centers
D. Collective Processing – Change (KS12)
- used to “drill down” and change a cost center;
Controlling Cost Centers

23. 2. Collective Processing of Cost Centers
D. Collective Processing – Delete (KS14)
Note: Reexecute with “Test Run” indicator removed after successful test.
Controlling Cost Centers

24. 2. Collective Processing of Cost Centers
D. Standard Hierarchy Tool (OKEON)
= create;
= copy;
Controlling Cost Centers

25. 3. Assign Cost Center to Hierarchy
OPTIONS:
A. Individual Processing of A Cost Center
Create (KS01)
Change (KS02)
B. Collective Processing of Cost Centers
Change (KS12)
Standard Hierarchy Tool* (OKEON)
* Can be used to “drag and drop” a cost center to a new cost center group.
Controlling Cost Centers

26. 4. Assign Cost Center to Funds Management (done in Funds Mgmt)
Controlling
(Managerial Reporting)
Funds Management
(Budget Control)
Funds center #1
Fund ABC
Commitment Actual Budget
Salaries $60,000 $70,000
Operating , ,000
Total , ,000
Cost Objects
Funds center #1
Fund ABC
Commitment Actual Budget
Salaries $60,000 $70,000
Operating , ,000
Total , ,000
Cost center #6
Budget control is at the combination of the fund/funds center/ commitment item/functional area
Cost center #7
Cost element Actual Plan
Wages $10,000 $11,000
Overtime , ,000
Travel , ,000
Utilities , ,000
Total , ,000
Funds center #2
Fund DEF
Commitment Actual Budget
Salaries $40,000 $50,000
Operating , ,000
Total , ,000
Note: There is a one to one relationship of cost centers to funds centers.
Controlling Cost Centers

27. 5. Make Changes To Cost Centers/Cost Center Groups
OPTIONS:
A. Cost Center Group Changes
Change A Cost Center Group (KSH1)
Collective Processing of Cost Center Groups
Standard Hierarchy Tool (OKEON)
B. Cost Center Changes
Change A Cost Center (KS02)
Delete A Cost Center (KS04)
Collective Processing of Cost Centers
Change (KS12)
Controlling Cost Centers

28. Display Transaction Codes for Centers/Cost Center Groups
DISPLAY OPTIONS:
A. Cost Centers
Display A Cost Center (KS03)
Display Standard Hierarchy Tool (OKENN)
B. Cost Center Groups
Display A Cost Center (KSH3)
Controlling Cost Centers

29. Authorized Transactions
CO Roles/
Authorized Transactions
A. CO – Display Role -
Display A Cost Center (KS03)
Display Standard Hierarchy Tool (OKENN)
B. CO – Master Data Role -
Create A Cost Center (KS01)
Change A Cost Center (KS02)
Delete A Cost Center (KS04)
Collectively Change Cost Centers (KS12)
Collectively Delete Cost Centers (KS14)
Standard Hierarchy Tool (OKEON)
Create Cost Center Group (KSH1)
Change Cost Center Group (KSH2)
Controlling Cost Centers

30. Course Overview Summary
You should now be able to:
Provide an overview of the CO module
Identify CO master data terminology and concepts
Understand the cost center process
List the triggers for changes to the cost center hierarchy
Describe the various tools for creating, changing, deleting, and displaying cost centers/cost center groups
Explain the various CO master data roles
Controlling Cost Centers

31. Accessing Training Materials
All TITAN training materials for Phase II are stored on the Tarrant County website
This website is accessed through your Internet Explorer from any computer that has internet access; you do not have to be on the Tarrant County network. The URL for direct link to the Training Materials website is:
Set up this website as a favorite in your web browser for quick future access
Enter the URL above in the address
field in your browser
When you reach the website, go to
Favorites > Add to Favorites in the
Browser menu
A pop-up window will be displayed with
a default name for the site. Click OK.
To access this site in the future, just
click on the Favorites item in the menu
and highlight the name for the website.
You will go directly to the website.
Controlling Cost Centers

32. Accessing Training Materials (cont’d)
Review the instruction page to see how to use the website
Click on the Courseware link at the top of the Instruction page
A Listing of Courses will be displayed
Click on the Course Title to see a general description of the content of the course or
Click on one of the buttons beside the Course Title to go directly to either the Overview, Quick Reference Cards, or Tutorials
These training materials will be available for your use and reference at any time
Controlling Cost Centers

33. Controlling Cost Centers
Running Tutorials
An additional learning tool is being provided with the Phase II SAP implementation -- Tutorials
Tutorials are simulations of the SAP system that take you through a transaction step-by-step in a mock SAP environment.
These can be viewed in two ways:
As a movie that takes you through the transaction in a demonstration, or
As an interactive, hands-on practice session that stops on each screen and directs you to make entries in fields or take actions per instructions provided by the wizard and in the bubbles
Tutorials are provided with each course in the Finance and Purchasing training
A list of the tutorials is provided at the end of each course.
Go to the Training Materials website to access and run these tutorials. Detailed instructions are provided on the website
Happy Tutoring!!
Controlling Cost Centers

34. Controlling Cost Centers
Training Sandbox
An SAP environment (Training Sandbox) where you can practice your skills in a real instance of SAP will be available after June 18
The sandbox can be accessed through the standard logon process discussed in Lesson 2 of the SAP Basic Navigation course
The only differences are:
Highlight the Training environment on the Logon pad
Click logon
Enter 520 in the Client field
Enter the same User Id and Password you are assigned for Production
Feel free to practice any of the tasks in the basic navigation course and any of the transactions included in other courses you take. Use the Quick Reference Cards to walk you through the transactions.
Controlling Cost Centers

35. Controlling Cost Centers
Getting Help 1
Review the on-line help in SAP 2
Review your training materials and notes. 3
Ask your peers or super user for assistance.
Controlling Cost Centers

36. Controlling Cost Centers
Tarrant County Help
Problems with running tutorials?
Training Mailbox –
After utilizing the various methods of help on the previous page, if you still have questions or problems or
If you have problems at any time with accessing SAP, printing, computer or network problems, etc.
Contact the Tarrant County IT Help Desk at
Controlling Cost Centers