AC040--Period-End Closing Postings in CO

Period-End Closing Postings in CO[@more@]

1.Period-End Closing for Overhead Cost Controlling
*Statistical key figures are used for calculations in the information system and form the basis for period-based allocations.

*When you create a master record, you must assign it to one of two possible categories: key figures for fixed values or key figures for totals values.

*You must post the statistical key figure again only when the value changes for fixed values.
*You must make a new posting for this in each new posting period for total values.
*Pure cost allocations are used to transfer costs from sender objects to receiver objects. This is known as a value flow. You can also include a quantity flow in the cost allocation.

*only two main tools are used in the periodic transactions for Overhead Cost Controlling: the costing sheet and the cycle/segment method.

.The costing sheet always starts with basic values to which overhead costs are then applied.
.The cycle/segment method, on the other hand, represents relationships between senders and receivers. Allocations are made between the senders and receivers using certain rules.

*Internal orders usually act as interim cost collectors and as an aid for planning,monitoring, and reporting transactions. After the task is complete, the costs must be settled to their final destination (cost center, fixed asset, profitability segment, and so on). This procedure is known as settlement.

*When you carry out period-end closing in Overhead Cost Controlling, you must first allocate the costs from auxiliary cost centers to main cost centers.The overhead cost orders for the cost centers must be settled at the appropriate time.

*To bring the main cost center balance to zero (by allocating the underabsorption or overabsorption), you have the following two options:

.Assessment to Profitability Analysis:
.Actual price calculation and revaluation of the activity quantity flows

2.Cost Object Controlling
*There are two different methods for settling cost objects: product cost by order and product cost by period
*During period-end closing, the remaining costs are first allocated to the cost object:
.Activities and processes are allocated using template allocation.
.Activity quantities are revaluated at actual prices (provided the actual prices were calculated in CO-OM beforehand).
.Overhead rates allocate overhead costs to the cost object and credit a cost center or internal order.
*Now that all costs have been assigned to the cost object, you can start with final costing. Final costing includes calculating the work in process and calculating variances and scrap.

*Settlement results in the following postings:
.If the material has price control V, the balance on the order is settled to inventory. With price control S, the balance is settled to the price difference account in Financial Accounting.

.The work in process is posted to FI and Profit Center Accounting.
.Variances and scrap is posted to Profitability Analysis.

3.Period-End Closing for Actual Costing and Material Ledger
*All postings resulting from this are evaluated using a preliminary valuation price. The preliminary valuation price must remain constant during the entire period.

*You can use the Material Ledger to display material data for each period. The Material Ledger creates a new document for every transaction. The following information can be displayed in the document:

.Quantity
.Preliminary valuation (quantity that has been evaluated using the preliminary valuation price)
.Price differences (deviations between the preliminary valuation price and the actual price of the transaction)
.Exchange rate differences (for invoice verification and order-related goods receipts)
.Price (actual price of the transactions)

4.Period-End Closing for Profitability and Sales Accounting
*In costing-based CO-PA, information can be taken from SD at two points in the sales order cycle: when an order is created or changed (optional) and when an invoice is generated for an order.

*In account-based CO-PA, information can be taken from SD at two points in the sales order cycle: when a goods issue is posted and when an invoice is generated for the goods issue.

5.Schedule Manager

6.Reconciliation Ledger
*the reconciliation ledger monitors the costs that were transferred by one CO object to another CO object across company code, business area, and functional area boundaries.

*One of the main functions of the reconciliation ledger is to reconcile postings:
.Postin in FI are automatically transferred to the relevant CO component for cost accounting purposes (online and in real-time). The CO totals in the reconciliation ledger are updated with these postings.

.If amounts are allocated within Controlling using company codes,functional areas, or business areas, this information must be transferred back to FI. The SAP R/3 system does not automatically send this data to FI. The CO totals in the reconciliation ledger, however, are automatically updated with these postings.

.You can use the reconciliation ledger to make a posting that synchronizes the FI data with the CO postings