AC040--Mapping Your Enterprise in CO

Mapping Your Enterprise in CO[@more@]

1.Organizational Units and Structures
*The controlling area is the basic organizational unit in Controlling.You can assign more than one company code to a controlling area. This enables controlling across company codes.

*The controlling area and its company codes must always use the same chart of accounts and the same fiscal year. (Only the number of special periods may vary.)

*Profitability Analysis (CO-PA) is used within the operating concern. The operating concern is an organizational unit that represents the structure of external market segments for the enterprise.

*You can use three currencies in Controlling:
.Controlling area currency
.Company code currency OR object currency
--By default cross-company code cost accounting displays the company code currency as the object currency. You cannot change

this default value. If you have assigned only one company code to the controlling area, the object currency can be assigned for each controlling object (such as a cost center) as required.

.Transaction currency
--The transaction currency is used for posting a document to CO.

2.Basic Data and Structures
*Secondary cost elements are defined only in CO and are used for internal CO allocations. Secondary cost elements do not have any corresponding G/L accounts in FI.

*Each cost element is assigned a cost element category in its master record,which determines the type of transaction for which a cost element can be used.

*The cost center master record contains different categories of information.
*The master data consists of the name of the activity type and the name of the controlling area to which the activity type is assigned, as well as the validity period.

*Statistical key figures are measurable values that are applicable to cost centers,profit centers, internal orders, or processes.

*You define a statistical key figure as a fixed value or a totals value.
*A business process describes a business transaction or series of actions that consume resources and can involve one or more organizational units of an enterprise.

*Costing-based Profitability Analysis:
.Has reports that display values by value field (flexibly defined key figures)
.Canbeexpanded with other anticipated values, such as accrued freight costs
.Uses CO-PA-specific database tables
.Produc revenues and cost of sales simultaneously when the billing document is calculated
*Account-based Profitability Analysis:
.Has reports that display values by cost element and revenue element
.Reconciles directly with Financial Accounting at account level
.Sharesdata tables with other CO applications, such as Cost Center Accounting
.Posts revenues when the billing document is created, but updates cost of sales at the point of goods issue

*The following terms play an important role in CO-PA: characteristic, characteristic value, and value field.
*A profitability segment defines a specific value combination of all characteristics, which corresponds to a market segment.

*When you install Profit Center Accounting, you assign a particular profit center to each object for which costs or revenues are incurred in your system.When the data is posted to the original object, the system automatically posts this data to Profit Center Accounting

*Fixed assets are assigned to profit centers indirectly using the cost centers stored in the fixed asset master record.

Exercise
Create a new cost element
Choose Accounting →Controlling →Cost Center Accounting →Master Data →Cost Element →Individual Processing →Create Secondary.

Cost EIement Category field
By defining this cost element as cost element category, you have stipulated that it will be used for internal activity allocations or process allocations.

Create cost centers
Choose Accounting →Controlling →Cost Center Accounting →Master Data →Cost Center →Individual Processing →Create.
Cost Center Category,Hierarchy Area,Company Code,Company Code,Profit Center

create a cost center group that contains both cost centers.
Choose Accounting →Controlling →Cost Center Accounting →Master Data →Cost Center Group →Create

Create activity types to describe the production output of the new service cost center
Choose Accounting →Controlling →Cost Center Accounting →Master Data →Activity Type →Individual Processing →Display.

Choose Accounting →Controlling →Cost Center Accounting →Master Data →Activity Type →Individual Processing →Create.

Allocation Cost EIement,Activity Type Category,

Create a statistical key figure
Choose Accounting →Controlling →Cost Center Accounting →Master Data →Statistical Key Figures →Individual Processing →Create.

Create an overhead order using the Order Manager.
Accounting →Controlling →Internal Orders →Master Data →Order Manager.
Choose Assignments:e Business Area,Profit Center,Responsible Cost Center
Create a periodic settlement rule to settle 100% of the actual costs to your service cost center