what is cost center accounting in sap co

COST CENTER ACCOUNTING

This is used to view department wise costs we use cost center accounting.
1. Creation of primary cost elements, we can create
A) FI Area |
B)CO Area |- Co Area
C)Automatic creation |

2. Display cost elements created

3. Creation of filed status group by making cost center required entry field
4. Assign new filed status group in GL expenditure accounts
5. Creation of cost centers.
6. Creation of cost center groups.
7. Creation of cost element groups
8. To enter exchange rate for type M for INR to Euro
9. Posting of transaction in FI
10. To view cost center wise report.
11. To view CO documents

1. A) Creation of primary cost element at FI area

Use to FS00 GL masters creation
Give the GL account number : 400100 Salaries Account
Company code : BIL
Form the menu select GL Account display
Now select edit cost element button
Valid from date :01.04.2008
To date :31.12.9999 comes automatically
Enter
Cost element category : Select 1 (Primary cost / cost reducing revenues)
Select save button or Ctrl+S

1. B) Creation of Primary cost element at CO area:

Use transaction code FS00

Path: Accounting- Controlling- Cost element accounting-Master data-Cost element Individual

processing-Create primary (Tr.code KA01 )

Cost element : 400300 Rent Account

Valid from :01.04.2008 to 31.12.9999
Enter
Cost element category :1 (primary cost /cost reducing revenue)
Save

1. C) Automatic creation of primary cost elements:

1) Marked default settings (OKB2)

path : SPRO-Controlling-Cost element accounting-Master data Cost elements Automatic

creation primary and secondary cost elements-Make default settings.(Tr.code is OKB2)
 Give the chart of Accounts : BIL
Enter
Account from :400301
Account to :499999
Cost element category select 1
Save
Press enter to save in your request

Create batch input session (OKB3)

Same path as above
Give the controlling area : BIL
Valid from :01.04.2008
Valid to :31.12.1999
Session name :BIL (This is text field)
Execute

Execute batch input session (Tr code is SM35)

Same path as above

Select session name : BIL
Select process button
Select session :BIL
Select display errors only radio button
Select process button
We get a message processing of batch input session completed.
Ignore the message & select exit batch input button

Display primary cost elements created (KA03)

Path: Accounting-Controlling-Cost element accounting-Mater data-Cost element Individual

processing Display- (Tr code is KA03)

Select drop down button beside cost element

Give the Controlling area : BIL
Enter

Creation of field status group by making cost center required entry field: (Tr.Code is OBC4)

Select field status variant: BIL

Double click on filed status groups folder

pital G001 We cant make cost center required for balance sheet accounts

nt G001
For G004 we make cost center required and assign in salaries account (i.e in expenditure accounts)

us group G004 cost accounts

data
try field
n
red entry filed
e down button two times.
ption entry filed

our request

d group in GL expenditure accounts (FS00)

0100 salaries account

:BIL
L account change select create / Bank / Interest tab
ge to G004

.400300 Rent A/c

:BIL
L account change
up to G004

rs:

Path: Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual

processing-create (Tr.code is KS01)

: Dept A
:01.04.2008 to 31.12.9999

: Dept A
: Dept A
:Mr.A
: Select 1 production
: select BILHIER
:BILH
:INR
rl+S
sage press enter
: Dept B
:01.04.2008 to 31.12.9999
: Dept A
: BIL

pt B
to cost center Dept B
onsible : Mr B
n

sage press enter

: Dept C
:01.04.2008 to 31.12.9999
: Dept A
: BIL

: Dept C
to cost center : Dept C
ible to Mr.C
: Select to 2 (service cost center)
rl+s
sage press enter

groups:
: BILHIER
A Dept B Dept C Dept X Dept Y Dept Z
ction Prod Service Production Production Service
HYD HYD BGL BGL BGL

t centers data BILHIER

If we want to see production cost centers data Create a cost center group and assign Dept A . Dept B,
Dept X and Dept Y.

If we want to see HYD cost centers data cost cost center group and assign Dept A, Dept b and Dept C

If we want so settled production cost centers data create A cost center group and assign Dept A and
Dept B

Path : Accounting Controlling Cost center accounting Master data- Cost center group
Create (Tr.code is KSH1)

Give the cost center name : BILHYD PROD

Enter
Description Hyderabad production cost centers BIL
Select Edit Cost Center Insert cost center button
Select the cost centers Dept A
Dept B
Save

Creation of cost Element group:

FI : Account groups Personnel cost CO:Dept wise personal cost or

Administration

400100 salaries Create cost element group personnel and

assign 400100 -400199
400101 Wages

400102 Bonus

400103 Staff welfare and Administration Create cost element group administration
and assign 400300-400399
400300 Rent
400301 Telephone exp
400302 Petrol exp In the report center Dept A Dept C
Or
Cost center GRP
Cost element
Or
Cost element GRP personnel
administration

Path: Accounting Controlling-Cost center accounting-Master data-Cost element group Create

(Transaction code: KAH1)

Cost element group name : BILADMIN

Enter
Description : Administration expenses for BIL
Select insert cost element button (Shift+F4) (Edit Cost element Insert cost element)
From 400300 to 400399
Save

To enter exchange rate for type M for INR to EURO (Tr.Code is OB08)

Select new entries button

Exchange rate type : M (Average rate)
Valid from :01.10.2008
From currency : INR
To : EUR
Direct quotation :0.02
Select save button or Ctrl+S
Press enter to save in your request

Posting of transaction in FI Transaction code:F-02

Give the document date : Todays date

Type :SA
Company code :BIL
Posting key :40
Account :400100 salaries account
Enter
Give the amount :500000
Cost center : Dept A
Text :Salaries posting
One more expenditure

Post key :40

Account :400300 Rent account
Enter
Amount :100000
Cost center : Dept A
Text : Rent posting
Posting key : 50
Account :200105 SBI current account
Enter
Amount :*
Business area :BILH
Text : Expenditure posting
From the menu select Document Simulate
Select save button or Ctrl+S

To view cost center wise report:

Path: Accounting Controlling-cost center accounting Information system-Report for cost center
accounting-Line items Cost centers: Actual line items (Transaction :KSB1)

Cost center select Dept A (if you want change the posting dates)
Select execute button
Keep the cursor and the first line item
Select document button
Select back arrow
Select change layout button (Ctrl+F8)
Select Document no.under column set
Select value in reporting currency under displayed columns
Select left arrow or show selected filed button
Select reference document no.under column set
Select value in report current under displayed columns
Select left arrow
Select business transition under column set
Select document no. under displayed columns
Select left arrow
Enter

To view co documents:
Path :Up to reports for costs center accounting path is same -Line items Co documents :Actual
costs (transaction code is KSB5)

Document no. :1 to 100000

Execute
Select folder button for document no.1

Repost co line items:

Business transaction RKU3
FI doc.13
001 400100 Salaries 500000 Dept A 150000 Dept B
50000 Dept C

Report co line item

002 400300 Rent 100000 Dept A
003 200105 SBI 600000

Repost co line item

Transfer document wise /line item wise , transfer line item wise
No FI document will be generated
Only document will be generated

Path: Accounting Controlling-Cost center accounting Actual postings-Report line items-Enter

(Transaction code is KB61)

Select document no. :13

Company code :BIL
Fiscal year :2008
Execute
Double click on line item no.1
Amount under new account assignment 150000
Cost center :Dept B
Select new item button
Select next button
Amount under new account assignment 50000
Cost center : Dept C

Save

Go and see the cost center report KSB1

Give the cost center Dept A

Select execute button
To view cost element wise to total
Select cost element column
Select sub totals button
(Note:That is dues cost element wise total)

Repost costs (Business transaction RKU1)

This is used when we split a cost center in to number of cost centers or wrong cost center postings.
No FI document will be generated
Only CO document will be generated
Transfer cost element wise (GL account wise)

Path : Accounting-Controlling-cost center accounting Actual postings-manual reporting of costs

Enter (Transaction code is KB11N)

Cost center (old) : Dept A

Cost element 400100 Salaries
Amount :100000
Cost center new : Dept C
One more cost center (old) : Dept A
Cost element :400300 Rent
Amount :25000
Cost center (new) : Dept C
Enter
Select save button or Ctr+S

Period lock:

FI CO
A) Transaction which effect To open To open
FI and CO eg:COIN
B) Transaction which effect No check To open
only CO Eg.RKU3, RKU1
C) Transaction which effect To open No check
only FI Eg.Debit balance
sheet and credit balance
sheet
Sept .08 March Oct 2008 to March 2009

An expenditure posting in FI for September. We cant post since periods are not open.

Path: Accounting Controlling-cost center accounting-Environment Period lock-chang (Tr.code

is OKP1)

Controlling area : BIL

Fiscal year :2008
Select actual button
Select period :01
Select lock period button
Save

Set controlling area :(OKKS):

Path :up to Environment the path is same Set controlling area

Give the controlling area :BIL

Enter
Real time integration of controlling with FI on line reconciliation ledger
This is used when we get for 2nd scenario (no.of company codes having one controlling area ) all the
company codes should use same Char of Accounts.

Planning cost center wise

Path :Accounting Controlling cost center accounting Planning Cost and Activity inputs
Change (KP06)
Version :select 0 (Original budget)
From period :1
To period :12
Fiscal year :2008
Select next page or page down button
Cost center group :BILHIER
Cost element From :400000
Cost element To :499999

Free Form Bsed

If we select radio button If we select from based radio button
We have to select cost element from the The cost element list in a available on
drop down list and plan against the screen plant against cost elements
elements

Select form based radio button

Select overview screen button
For cost element 400100 Plan Fixed cost 1500000
Distribution key 1 Equal distribution
Select cost element 400100
From the menu select Goto Period screen
Select back arrow
Fro cost element 400300 Plan fixed cost 960000
Distribution key 1
To plan for Dept B Select next combination button
To go back to previous dept select previous combination button
Save

To view variance report cost center wise

Path :Accounting Controlling-Cost center accounting Information system Reports for cost
center accounting Plan /Actual comparisons Cost centers: Actual /Plan/Variance (Tr code is
S_ALR_87013611)

Controlling area :BIL

Fiscal year :2008
From period :10
To period :10
Plan version :0
Cost center Value :Dept A
Execute
Keep the cursor on Salaries A/c actual costs amount
Select call up report button
Double click on cost centers : Actual line items keep the cursor on the first line item.
Select document button