Controlling

The CO Application Module provides a variety of tools that can be used to provide operational information to the management of a company to support business analysis and decision-making.

Production and all other revenues and expenses Sub-sets of divisions Internal Decision making support system (pricing, planning, etc.) Analytical tool How you manage your business

CEAA Cost Element is Cost Carrier, that is, it carries cost to the CO from FI/Other modules. Primary CostElements are nothing but General ledger accounts for expense or revenue, that is Profit & loss Accounts.Whenever a new General Ledger Account for expense/revenue is created a corresponding Primary CostElement is to be created immediately before any posting on that General Ledger account is allowed. Part of accounting where you enter and organize costs incurred during a settlement period Collects and summarizes postings that arise within CO in a reconciliation ledger Provides the structure for assignment of CO data through the classification of transaction line items according to the nature of the cost and revenue being posted to a given controlling objectCCAA cost center is an organizational unit within a controlling area that represents a clearly delimited locationwhere costs occur. The lowest possible unit where an expense can be captured have been defined as CostCenter which are created with a combination of Cost category (operation/maintenance/general),Department and geographical location (HO/Zone/Ward) Used for controlling purposes within the organization Cost Center Structure Cost Planning Cost AllocationIO Extremely flexible CO tool Provides capabilities for planning, monitoring and allocation of costs Used for variety of purposes: Investment orders (CAPEX) Overhead orders Marketing expenses Maintenance Company cars Accrual orders Orders with revenueProfit Center Accounting Allows to calculate internal measurements of profitability Provide an organization the opportunity to analyze and report internal profitability for its organization

Enterprise Structure for Controlling

1.Maintain Controlling Area (OKKP)2. Maintain No. Ranges for Controlling Documents-(KANK)3.Maintain Versions- (OKEQ)

Maintain Controlling Area (OKKP)Path : img-CO-Gen Controlling Organization Maintain Controlling area enterDouble click on maintain controlling areaNew Entries

Save Double click on assignment of company code

Give Co. code enter SaveDouble click on activate components /controlling indicatorsNew entries

Save /save in request

Maintain Number RangesPath : same as aboveGive Controlling area = 2222Select Maintain Groups button on appl.bar

Go to Groups on menu barSelect insert Text = ReddyNo. range from 1 1000

Go to Groups on menu barSelect insert Text = Reddy PlanningN. Range = 1001-2000Double click on COIN , RKIU , RKU2, RKU3Check box for Reddys ( created earlier)Select element button on appl barThen select RKP1 , RKP2,RKP3Check box for Reddy planningSelect element button on appl bar to assing selected groups Save / Save

Maintain Versions Path : same as aboveSelect O Double click on Setting for each fiscal yr Give co areaNew entries

Give fiscal yr 2012Select check box for integrated planningSelect check box for copying allowedExchange rate type PSave / Save

Cost Element Accounting1.Creation of Cost elements at controlling level (KA01)Path : img- Co- cost element accounting master data- cost element create cost elements enterDouble click on create primary cost elementsGo to Extras on menu barGive gl account for which u want cost elementSee FS00Like rent , salaries , advertisements. EtcRent = 400315Give date valid from n tooEnterName = RentDesc.= RentCost Element = 01 (Primary Cost)

Save Save

Creation of Primary Cost Element at FI Level = FS00Go to fsooSelect rent Click on edit element button Follow the same steps as aboveSaveSecondary Cost ElementsCreation of secondary cost elements (KA06)Path: img CO-CEA-Master data cost element create cost elements- enterDouble click on create secondary cost elements Select extras on menu barSelect set controlling areaGive controlling area

Cost element = 500005Valid from = date to dateName = Labour hours (Internal activity)Desc= labour hoursCost element = 43 (internal activity allocation)SaveCreate all as above like machinery hours etcSave

Cost Center Accounting

Creation of cost center (KS01)Path : img- CO-CCA-master data-cc-create cost centers enterDouble click on create cost centerGo to Extras on menu barSelect Set Controlling areaGive Controlling areaCost center = Production( it may be department or any process name )Valid from = date 1.4.2012EnterName = Production Desc = samePerson responsible = anwarCost center category = 1 Hierarchy area = Z_Heir ( created earlier)BA = RDHDCurrency = inr

System gives message for profit center activation i.e. (OKKP)Its only info skip nSaveNext cost center for Packing , Service , AdministrationSave/save

Creation of Cost center group ( KSH1)Img- controlling cca master data cost center define cost center group enterDouble click on create cost center groupGive controlling area = 2222Cost center group = Z_CostEnterZ_Cost = cost center group for reddysSelect Insert cost center on appl.barAlways go for F4 and pick up cost center

Similarly if u want to check what all the cost centers added to one particular group go to t code ksh2 to have a look on group of cost centers added.

Make cost center as required entry in field status groupT code = obc4Select company code =2222Double click on field status groupDouble click on G004Double click on additional account assignmentsMake cost center as req. entry

Assign field status group G004 for cost elements GL AccountsHere end user gives list of GL which belongs to cost element categoryGo to t code = FS00Select cost element GL accounts ( Rent)Select change icon Select change bank / interest TabChange geild status group as = G004

Planning cost center wise KP06Easy access accounting controlling cca- planning cost & activity inputs change enterVersion = 0From period = 1To period = 12Fiscal yr = 2012Cost center= To =Or group = R_CostCost element = rent accountSelect Form based Select overview screen on appl barCost center = prodCost element planned fixed cost Dis400005 600000 1Likewise give for all cost centers like packing , admin , HR for rent account or any other cost elementsSelect period on appl bar to see how Save / save

Actual posting F-02

40 rent a/cAmt = 200000Cc = production Text = rent paid50 bank a/cAmt = * BA = RDHDText = + SaveThis is how we post entry in FI

How to post in CoT code = kb11nAct controlling cca actual posting manual posting of cost enterNote : if u dont select RKU1 u cant post transaction hereCost center old cost element amount cost center new Production rent account 100000 AdminLikewise give for packing , service , HR etc saveSaveReport to check actual verses varianceKSB1Give cost center group = R_CostCost element = 400005Posting period = 1.3.2012 to 31.3.2012Execute All controlling reports are monthly basis Now u can see the diff of variance which was substitute in other cost centers

Planning / Actual Variance report CC Wise (S_ALR_87013611)Acting controlling cca info system reports for CCA Plan /actual comparison c centers actual / plan variance - enterGive co area = 2222Fiscal yr = 2012From period = 1To period = 12Plan version = 0C center group = R_CostCost element = rent accountExecute Just see the entry now that starting actual verses planned cost /absolute / variance %At the same time u can view cost center wise actual / planned variance

Profit Center AccountingSteps 1. Set controlling area =( okks)

Img controlling pca basic settings set controlling area enter

Give controlling area = 2222Save

2. Maintain controlling area settings = oke5 (zero KE5) Img controlling pca basic settings controlling area settins maintain controlling area settings enterStandard hierarchy = R _ Prof ( If more than one PC)Select element of internal bus. Vol = check box Profit center local currency type = inr ( select 20 from F4 )Profit center local currency = inrStore transaction currency = check box ( if we are working on more currencies)Save

3. Creation of Dummy PC (ke59)Img controlling pca master data pc creation of dumy profit center- enter Double click on creation of dummy profit centerDummy profit center = R _ dummySelect basic data on appl barName = Reddy ( person or product who wil be treated as PC)Desc = reddyPerson responsible = kidoProfit cnter group = R_Prof

Save4. Set controlling parameter for actual data (1kef)Img- controlling pca basic settings controlling area settings activate direct postings set controlling parameters for actual data enter.New entriesFrom yr line item online transfer 2012 check check

Save ( ignore message)

5. Maintain plan version OKEQImg controlling pca basic settings controlling area settings activate direct postings plan version maintain plan version enter

Select 0Double click on Settings for PCA New entries

Year online transfer line items ER Type2012 check check B ( selling variant)

Save / save Maintain Profit Centers KE51Profit center = BenzGive analysis period = 1.4.2012 to 9999Name finished productDesc finished productPerson res = mirzaProfit center group = R _ PROFSelect activate button on appl bar

Posting in f-02System gives message no operating concern is assigned to controlling areaGo to KEA0Img controlling PA- structures define operating concern maintain operating concern enterGive operating concern = 2222Select create icon EnterDesc = operating conern for reddysCosting based = checkAccount based = check

Attribute tab Operating conern currency = inrCompany code currency = checkFiscal yr variant = v3Save

Save / save

Now click on data structure tab ( go in previous tab)Click on create buttonU will get screen like Select KDGRP customer groupMATKL material groupValue field tabSelect vv010 revenue Vv140 cost of goods sold ( with this fields u know profit or loss like revenue COGS)Save = n activate button on top appl barCome back System gives message say yesSystem gives msg generated in green colorNow go n assign operating concern to controlling areaAssign operating concern to controlling areaImg enterprise structure assignments controlling assign controlling area to operating concern enter Assign OP beside company codeSaveNow Activate profitability analysisImg controlling Profitability analysis flow of actual values activate profitability analysis enterKEKE = t codeGive active status = 4 SaveNow post a transaction in f-02Go to fb03 to check the entry view for profit center n cost centerThats it

Internal OrdersNote: Internal orders are used to know item wise /unit wise expenses ( Vehicles, telephones , raw material, road shows , events .etcThese orders are used for statistical reports Extremely flexible CO tool Provides capabilities for planning, monitoring and allocation of costs Used for variety of purposes: Investment orders (CAPEX) Overhead orders Marketing expenses Maintenance Company cars Accrual orders Orders with revenueStep 1.Define controlling ordersT code = KOT2_FuncareaPath ; img co internal orders order master data define order types- enterNew entriesOrder category = 01Order Type = Kevh -- vehicle expenses (Reddy Vehicles )Planning profile = 000001 (F4)Object class = overhead cost (F4)Residence time (In real time max 3 months to controlling )Check Release Immediately

SaveSystem gives message no.ranges not proceedEnterEnterSelect Assign/Change intervals on screen just below order categorySelect Group on menu barSelect InsertText = Reddys Vehicles ExpenseFrom no. To No.3001 4000Select RVEH at the bottom of screen (Search in list )Go to edit on menu Select Select ElementSelect check box for Reddys vehicle exp ( Just check it) If it is not given just select zzzzzzzz then select elements Go to edit Select Assign Element GroupSave

Creation of internal ordersT Code = ko01Path :Easy access ac-co internal orders master data spl functions orders create enterOrder type = RVEH ( Created Earlier)EnterSet Controlling area= 2222Short text = AP 12L 1041 ( Vehicle no.)Give company code = 2222Business area = rdhyObject class = overhead cost (F4)

Control data tabSelect check box statistical order

SaveHere we have to create field status group saperately

Creation of field status group for intervals ordersT code = OBC4Select co code = 2222Double click on field status groupNote : Create field status group which is not there in list like g001, g003 is there already but g002 is not there so create G002 )Select G004 cost elementSelect Copy as iconGive /change g004 to G003 and write text as = cost a/c / internal ordersEnterDouble click on G003Double click on additional account assignmentsMake CO/PP orders as Req. Entry buttonSave /saveNow we can create Gl accounts

Creation of GL Accounts Fs00Create 400025 repairs n maintenanceAdmin expP&lOnly balLine itemSort key = 002Field status group = g002 ( Newly created )SaveSelect Edit cost element on appl barValid from = 01.04.2012 to 31.12.9999Name = Repairs & Maint.Desc === sameCost category = 1save

Planning Internal OrderwiseT Code = KPF6Path : accounting controlling internal orders planning cost and activity inputs change enterVersion = 0From period = 1To period = 12 ( U can give one month range it depends)Fiscal yr = 2012Order = 90001 (ap 12L 1041)Cost element = 400025 ( Repairs & Maintenance ) Form based OSelect Overview screen on appl barCost element total plan cost des400025 R&M 60000 1Save/save

Actual Posting of Transaction ( To see the effect of above plan )T Code = F-0240 400025 (R&M) a/cAmount 7000Cc=production internal order =90001Text = petrol exp50 200005 (BANK A/c)Amount = *BA = RDHYText = +Save/save

Now to see the actual vs variance

Internal Order wise actual exp (Line Item)T Code = KOB1Path : accounting controlling internal order-information system report for internal order Line item order actual line items enterGive order no. = 90001Cost element = 400025 ( R&M)ExecuteSee the diff occurred with the help of actual entry

PLAN vs Actual varience internal orderwiseT.Code = S_ALR_87012993Path : accounting controlling internal orders information system reports for internal orders- plan /actual comparison order /actual /plan varience enterGive controlling area = 2222Fiscal yr = 2012From period = 1To period = 12Plan version = 0Order value = 90001Cost element or value = 400025Execute See the percentage vs abs value or vaience in this report Thats it with internal orders

Financial Statement VersionT-Code = OB58Path : img FA-GL Accounting business trans closing documenting define financial statement versions- enterNew EntriesFinancial statement Version = 2222Name = BalanceSheet OF Reddys Co.Main Language = ENItem keys Auto = Check Chart of accounts = 2222

Save / saveSelect Finanacial statement items on appl barBlue & pink ColorDouble click on item AssetsGive start group Fixed AssetEnd Of groupMisc. exp to the ext not written offenterII. Double click on LiabilitiesGive Start Of group = Share CapitalEnd of group = ProvisionsEnterIII. Double click on P+L ResultsEnterSelect Liabilities and click on Create Items on appl barWrite = Share capital Reserves & Surplus Sec.Loans Unsecured Loans Current Liabilities ProvisionsEnter

IV. Now select Share Capital and click on Create items on appl. BarWrite = Equity Share Capital Pref. Share CapitalEnter

V. Now select Current Liabilities and create on create items on appl barWrite = Outside LiabilitiesPersonal liabilitiesStatutory LiabilitiesOther liabilitiesEnter

VI. now select outside Liabilities and click on create items on appl bar. Write = S.Creditors suppliers S.Creditors services S.creditors othersenter

VII. Now select Sundry creditors suppliers and click on create items on appl bar Write = s.creditor raw materials S. Creditors packing material S.creditors Tools & Spares S. Creditors Cap.Goods S. Creditors others EnterNow Assign GL A/cs here so Select Equity Share CapitalSelect Assign a/cs on apl barGive from a/c To a/cs D C 100005 100005 check check ( Debit n credit )EnterSave / Save