Class activity

Exercise 1 – Create Primary Cost Elements (FI – Finance)

Create the following two primary cost elements which will be used for the company
Year-end event. You will need to create G/L accounts (Profit and Loss accounts) first
and define them as primary cost elements in CO.

Company Code – XXXX

Cost Element Accounts – 500010 – 500030

Account Number Description

500011 Entertainment ##
500012 Bus/Taxi ##
500013 Company Restaurant ##
500014 Meals ##
500015 Packaging Materials Consumption ##
500016 Office Supplies ##
500017 Social Security Expenses ##
500018 Salaries ##
500019 Electricity ##

Create new G/L accounts.

Menu Path: SAP Easy Access > Accounting > Financial Accounting > General
Ledger > Master Records > G/L Accounts > Individual Processing > Centrally

Transaction code: FS00

Enter the following on the initial screen:
Field Value
G/L account:5000##
Company code:– Your company code

Click on the < (Create) with Reference>button.

Enter the following Reference Account and continue.
Field Value
G/L account 5000XX
Company code:SG01

Short Text:Entertainment ##
G/L account long text:Entertainment ##
Account group:P L P&L account
P&L Statement Accnt: (radio button) ON
Group account number:Default value (312600)

Account currency:USD
Tax category:*(All tax allowed)
Line item display:ON
Sort key:Cost centre (008)
Verify the copied values on the Create/bank/interest tab. Check that the Field
status group is set to G004 (Cost accounts). Other fields are set to ‘blank’.

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Save. (*Bypass warning messages, if any, regarding the other languages
issue, e.g., Language F is not installed on this computer).

The system confirms the creation of GL account with a message:

Repeat the same step for 5000##: Bus/ Taxi ##.he

Type / Description Tab

Control Data Tab

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Create / Bank / Interest Tab

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Check Your Work
Note: Use the same transaction FS00 to display the contents of the GL master record.

Exercise 1.1 – Create Primary Cost Elements (2) (CO – Controlling)

Define the G/L accounts as primary cost elements.

Menu Path: SAP Easy Access > Accounting > Controlling > Cost Element
Accounting > Master Data > Cost Element > Individual Processing >
Create Primary

Transaction code: KA01

Note: If you get the following screen, enter your controlling area.

Enter the following on the initial screen.

Field Value
Cost Element 5000## (which you created in Exercise 1-1).
Valid from The first date of the current year (E.g. 03.15.2014)
Valid to The default value (31.12.9999)

Enter and move to the <Basic data>screen.

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Enter 1 (Primary costs/cost-reducing revenues) in the CElem category.

Save. . System displays a message:

Repeat the same step for 5000##: Bus/ Taxi ##.

You have completed the Create Primary Cost Elements transaction.
Check Your Work Note: Use transaction code KA03 to view the contents of the primary cost
element.

Menu Path: SAP Easy Access > Accounting > Controlling > Cost Element
Accounting > Master Data > Cost Element > Individual Processing >
Display

Transaction code: KA03

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Exercise 2 – Create Secondary Cost Elements

Create secondary cost elements in the CO controlling area (XXXX)

These secondary cost elements listed in the table below are used for the
Training cost centre under Department: General & Administration ().
One of the functions of this department is to provide internal training and
Technical support to other departments.

Name Description

1. 900020Tech Support Gr ## Technical Support Group ## - 43 Cost Element Category

2. 900021Train Design Gr ## Training Design Group ## - 43 Cost Element Category
3. 900022Schedule Gr ## Training Scheduling Group ## - 43 Cost Element Category
4. 900023General & Admin ##General & Admin ## - 42 Cost Element Category (Assessment)
5. 900024Settlement Cost ##Settlement Cost ## - 21 Cost Element Category(Internal Settlement)

Use the default end date for the validity period. Define all three as internal
activity allocation cost elements.

Menu Path: SAP Easy Access > Accounting > Controlling > Cost Element
Accounting > Master Data > Cost Element > Individual Processing >
Create Secondary

Transaction code: KA06 Create Secondary Cost Element

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 1. Enter the following on the first screen.

Field Value
Cost Element 9000##
Valid from (E.g. 03.15.2013)
Valid to The default value (31.12.9999)

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Exercise 3 – Create Cost Element Groups

Tcode- KAH1

Cost element group: CEG_XX

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Click

Click

Click save

Go to KAH3 for display

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Exercise 4

Creating Cost Center Hierarchy

Tcode- OKKP

Highlight your Controlling area and click details

Update with your own Cost Center Hierarchy as below

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Create a Transport Request and save.

Create Cost Center Groupsand Cost centers as per diagram below.

Creating Cost Center Groups and Cost Centers with Tcode – OKEON

Display the standard hierarchy for the CO controlling area (SG01). Check the department structure shown
below for the Company Code SG01 – of the standard hierarchy (SAGARCCHR).

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Click Create Group and enter details as shown. Right click on Cost Center Hierarchy and click Create
Group.

Same way create remaining four Cost Center Groups.

XX = Your last two digits of username

GAXX – General & Admin Cost Centre Group

MKXX – Marketing Cost center Group
PRXX – Purchasing Cost Centre Group
PPXX – Processing Cost Center Group

Save the

You can also directly create Cost Center Group with tcode – KSH1, if you do not want to use Tcode -
OKEON

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Exercise 5 – You can also Create Cost Centers with Tcode – KS01, if you do not
want to use Tcode- OKEON

Create four Cost Centers

MGXX – Management Cost Center, under Management Cost Center Category
TRXX – Training Cost Center, under Admin Cost Center Category
PKXX – Packaging Cost Center, under Production Cost Center Category (1)
DNXX – Design Cost Center, under Production Cost Center Category

For Design Cost Center

Select Production for Cost Center Category

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Just enter, ignore this message

Repeat for the remaining cost centers according to the list above .
Exercise 6– Display Cost Center

Tcode - KS03

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Exercise 7 - Mass Change of Cost Centre

Tcode – KS12

This exercise is to change all centers together. But we are not doing any changes. This task is only for
information.

The scenario is you are now responsible for all the cost centers youhave created in the previous exercise.

Use collective processing function to change the person responsible for allthe cost centres and replace
the name with your name. All other fields remainunchanged

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For display changes go to KS13
Exercise 7a – Create Activity Types (1)

Create an activity type for the Design cost center, DNXX from Exercise 4
Enter Activity type DSNXX and the first day of the current fiscal year in the
Valid from field on the initial screen. Proceed to the next screen

Enter the following information on the <Basic data> tab.

Name: DSNXX – Course DesignXX

Description: Course DesignXX

Activity Unit: H
CCtrcategory(Cost center Category): 1
A Typ category: 1
Allocation Cost Element: 5000##: Training Design Group XX (use your own cost element defined in
Exercise 2)
Price Indicator: 3

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Menu Path: SAP Easy Access > Accounting > Controlling > Cost Centre
Accounting > Master Data > Activity Type > Individual Processing > Create

Transaction Code: KL01

Indicator determining the method of activity quantity planning and activity allocation.

 Activity type category 1 (Manual entry, manual allocation)

Activity types of this category use plan activity quantities. The plan activity is allocated to the different
receiver objects using activity input planning. It may be necessary to reconcile the activity quantities
and the plan scheduled activity.
Actual activity quantities are entered for each business transaction using internal activity allocation.
 Activity type category 2 (Indirect calculation, indirect allocation)

The quantities produced by the activity types in this category cannot be calculated or only with great
effort. The plan and actual activity quantities are determined in indirect activity allocation using one of
the following:
o The defined sender/receiver relationships

o The receiver tracing factors

o Fixed quantities (defined in the segments)

Allocating the activities also takes place automatically through indirect activity allocation as described
above.
The actual and planned activity quantities result from the sum of the activity inputs calculated from the
tracing factors on the individual receivers.
Plan and scheduled activity quantities are therefore automatically reconciled.
 Activity type category 3 (Manual entry, indirect allocation)

Activity types of this category use activity quantities entered manually. Entering the actual activity
quantity takes place on an activity-related basis using a special function (Non-allocatable activities) for
which no receiver objects can be given.

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 The plan and actual activity quantities are allocated indirectly using defined sender/receiver
relationships. The R/3 System calculates the activity quantity to be allocated for each receiver based
on the ratios of tracing factors for all receivers. The manually planned or posted activity is thereby
completely allocated to the receivers.
This ensures that plan activities are fully reconciled after carrying out indirect activity allocation.
 Activity type category 4 (Manual entry, no allocation)

Activity types of this category use activity quantities entered manually. Allocations to other objects are
not possible.
The actual activity quantity is entered for each transaction using a special function (Non-allocatable
activities). No receiver objects can be entered.

Use
You can save a default value in the master data for an activity type or a business process for allocable activity
type categories or allocation categories (category 1, 2 or 3). You can change the default value within planning
to a different allocable activity type category or allocation category if you are planning for the first time.

You can only change non-allocable activity type categories or allocation categories (category 4) to an allocable
activity type category or allocation category (or vice versa) if activity-dependent data exists.

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Allocation cost element number is your secondary cost element number created in exercise 2, I used
secondary Cost element number 900087.

Save the Activity

Display Activity type

Tcode – KL03

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Exercise 7b – Create Activity Types (2)

Create another activity type for the Training cost centre, SCHXX Scheduling XX

The activity type will be measured in hours and will be used only by
Administration (4) category cost centres.

For the Allocation default values, the activity type category is 1, which allows us to manually plan the
activity quantity.

The allocation cost element is 9000##: Training Scheduling Group XX (use

your own cost element defined in Exercise 2), and the price indicator is 3,
defined manually.

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For the Variant values for actual allocation, the actual activity type category is 2,which is one of the types
of indirect allocations. Enter 5 (Actual price automaticbased on actual activity) for the actual activity price
indicator.

Menu Path: SAP Easy Access > Accounting > Controlling > Cost Centre
Accounting > Master Data > Activity Type > Individual Processing > Create

Transaction Code: KL01

1. Enter Activity type SCHXX and the first day of the current fiscal year in the
Valid from field on the initial screen. Proceed to the next screen.
2. Enter the following information on the <Basic data> tab.

Field Value
Name Scheduling XX
Activity unit:H (Hour)
CCtr categories:4 (Administration)
Atyp category:1 (Manual entry, manual allocation)
Alloc. cost element:9000## Schedule Gr
Price indicator:3 (Determined manually)
Act. acty type cat.:2 (indirect determination, indirect allocat)
Act. price indicator:5 (Actual price, automatically based on activity)

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Save the Activity

Exercise 8a – Create Statistical Key Figures (1)

Create the statistical key figures that will be the bases for training department
periodic allocations.

Define a fixed value statistical key figure for the number of employees, EMPXX.
The unit of measure is pieces (PC).

Menu Path: SAP Easy Access > Accounting > Controlling > Cost Centre
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Accounting > Master Data > Statistical Key Figures > Individual
Processing > Create

Transaction Code: KK01

1. Enter Stat. key figure EMPXX in the initial screen and proceed to the master
data screen by Enter or clicking on the <Master data> button

.
2. Enter Number of Employees XX in the Name field.
3. Enter PC in the Stat. key fig. UnM. Field.
4. Ensure the Key figure category button is set to Fixed Value (Fxd.val).
5. Save the statistical key figure. . System displays a message.

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KK03 to display the Statistical key figures

Exercise 8b – Create Statistical Key Figures (2)

Do same as above but use the following details.

Define a total value statistical key figure for the number of classes, CLSXX. The
unit of measure is pieces (PC).

Menu Path: SAP Easy Access > Accounting > Controlling > Cost Centre
Accounting > Master Data > Statistical Key Figures > Individual Processing
> Create

Transaction Code: KK01

1. Enter Stat. key figure CLSXX in the initial screen and proceed to the
master data screen by Enter or clicking on <Master data> button.
2. Enter Number of Classes XX in the Name field.
3. Enter PC in the Stat. key fig. UnM. field.
4. Click on the Tot. values button to switch from a fixed value (Fxd val.) to a
total value statistical key figure.
5. Save the statistical key figure.

Exercise 9- Maintain Settlement Profile TcodeOKO7

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In the settlement profile, you define a range of control parameters for settlement. You must define the
settlement profile before you can enter a settlement rule for a sender.

If you want to settle the costs each time to just one cost center or just one G/L account, you need a
settlement profile. As you cannot maintain the settlement parameters during settlement to a receiver, you
must save the settlement profile either in the order type or in the model order or reference order.

The settlement profile includes, among other things, the retention period for the settlement documents.
You should bear in mind the following when you determine the retention period.

The settlement documents take up additional storage capacity. When a posting period is finally locked
against further postings in Financial Accounting and Controlling, you can clear the settlement documents.
However, you should build in a safety margin, as you will need the settlement documents if you have to
cancel any settlements or repeat the period end close.

1. Create a settlement profile.

2. Save the profile in the order type.

Tcode: OKO7

Maintain Settlement Profile: This step is important before creation of Internal Order. I created Settlement
Profile SG01 and maintained all configurations, you create your settlement profile .

Maintain Settlement Profile: IMG path

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Click or Copy from existing Settlement Profile

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Assign allocation structure to (A1) Settlement for Internal Order

A tool that allocates the costs incurred on a sender by cost element or cost element group.

The allocation structure is used for settlement and for assessment.

An assignment assigns a cost element or cost element group to a settlement or assessment cost
element. Each allocation structure contains a number of such assignments.

The allocation structure must meet the following criteria:

For a settlement or assessment to be executed correctly, the allocation structure must represent
all cost elements under which costs are incurred.

There must be only one cost element in an allocation structure.

Source Structure - The source structure is used to settle costs incurred on the sender to various
receivers, split by cost element. In this way, the source information is retained.

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The source assignment defines the assignment of the debit cost element(s) to a receiver. More than one
source assignments are summarized in one source structure

PA transfer structures- A rule that assigns costs and revenues from other applications to the quantity fields
and value fields in Profitability Analysis (PA).

PA transfer structures are used to settle orders, assign direct postings to profitability segments from FI or
MM, and allocate activities in CO.

A PA transfer structure can consist of any number of value field assignments. A value field assignment is
the assignment of individual cost or revenue element groups, or variance categories, to the desired value
or quantity field. The cost and revenue elements are determined by cost and revenue element groups or
by variance categories.

The value field assignments in a PA transfer structure must be:

All cost and revenue elements that receive costs or revenues must be assigned to the structure.

Each cost or revenue element can occur only once within the structure.

100% validation- Indicator controlling whether percentages in the settlement rules are checked by the
system.

for a particular settlement rule, the system checks

If you have defined percentage distribution rules
the total percentage either when you save the settlement rule or if you use the percentage check
function.

If the indicator is set - The system issues a warning

If the total is <> 100%.

If the indicator is not set -The system issues a warning

If the total is > 100%.

In both cases, you can ignore the warning and save the settlement rule. However, to be able to run the
settlement, you must first correct the settlement rule. The settlement run itself prevents you from settling
more than 100%.

The indicator only affects periodic settlement. In overall settlement, the percentage must always be
100%.

You can also use this indicator if you are not using percentages for settlement. If this is the case, you
must activate the equivalence numbers. You then receive a warning that, even if you have entered
settlement rules, none of the rules has received an equivalence number (other than zero).

% Settlement - Rule that determines which portions of a sender's costs are allocated to which receivers.

A settlement rule contains distribution rules, one or more of which are assigned to each sender. In most
cases, there will be one distribution rule for each receiver.

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Identifier "settlement by equivalence number"

Equivalence numbers - If you set this indicator, you can define distribution rules in the settlement rule,
according to which costs are settled proportionally.

Examples

You want to settle an order to three different cost centers and select the equivalence numbers 1, 2, 4:

 The first cost center receives 1/7 of the costs

 The second cost center receives 2/7 of the costs

 The third cost center receives 4/7 of the costs

Residence time - for settlement document in calendar months

This field contains the residence time for the settlement documents, expressed in calendar months.

Use

When defining the residence time, bear the following in mind:

Settlement documents occupy additional storage space. After an accounting period in CO and FI is finally
blocked against postings, you can clear the settlement documents. However, you should have a safety
margin, as the settlement documents may be needed to cancel some settlements or repeat the period
close.

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Save

Exercise 10 – Maintain Allocation Structures

During settlement, costs incurred under the primary and secondary cost elements by a sender are
allocated to one or more receivers. When you settle by cost element, you settle using the appropriate
original cost element.

An allocation structure comprises one or several settlement assignments. An assignment shows which
costs (origin: cost element groups from debit cost elements) are to be settled to which receiver type (for
example, cost center, order, and so on).

You have two alternatives in settlement assignment:

 You assign the debit cost element groups to a settlement cost element.

 You settle by cost element - that is, the debit cost element is the settlement cost element.

Each allocation structure must fulfil the following criteria:

An allocation structure is assigned to each object to be settled. All cost

Elements in which costs are incurred, must be represented in the
appropriate allocation structure.

Each cost element in which costs are incurred may only appear once in an
allocation structure. Only one settlement cost element may be assigned to
a source within a particular allocation structure.

If you require additional debit- or settlement cost elements, you can create these using the function
Maintain Settlement Cost Elements.

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Tcode: OKO6

Double Click from left

Highlight 025 Settlement

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Click

Assign your cost elements

Click

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Assign your Assessment Cost Element Created

Click

Assign your Settlement Cost Element.

Save

To obtain a hierarchy listing of an allocation structure from the system , choose

"Extras -> Overview list" in the allocation structures overview.

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Exercise 11 - Maintain number ranges for Settlement Documents (Modify this
Step)

Each settlement must be identified explicitly. To do so, the SAP System creates a settlement document
each time an object is settled.

You use settlement documents for the transactions "Reversal of Settlements" and "Repeated Period-End
Closing".

In this step you define the intervals, or number ranges, for settlement documents for one or more
controlling areas.

You should define separate number range intervals for settlement documents for each controlling area.
This improves performance if you want to settle objects in different controlling areas at the same time (for
example, on the same day).

1. Create a number range with Group -> Maintain and Group -> Insert

2. Give your number range a description.

3. Specify one interval for the number range. If you use up this range, you can add more
intervals.

4. Select one or more of the controlling areas listed in the block "Not assigned".

5. Place the cursor on the number range to which you want to assign the selected controlling
areas.

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 6. Use Assign element group to assign the controlling area(s) to the appropriate number range
and save your entries.

Click for new group

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I have created Settlement Document number ranges for SGEN (Trade Promotion). You are creating
Settlement Document for Event Orders not Trade Promotion .

Click Save

Save and click back

Exercise 12 – Create Internal Order Type

Create Order type ZTXX for your controlling area (SGCO) - Event Orders ##. This will be used for
theinternal order – Company year-end event. This order type should be assignedto the order category 01.

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Menu Path: IMG -> Controlling -> Internal Orders -> Order Master Data -
> Define Order Types

Transaction Code: KOT2_OPA

Click

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Define the number range interval: 90001 – 95000.

Check that the Number range interval is set to Not assigned.

In order to define it, move to the number range interval configuration screen by

clicking on the icon <Assign/change intervals>.

Alternatively, you can use the transaction: KONK or the following menu path:

IMG > Controlling > Internal Orders > Order Master Data > Maintain
number ranges for orders – (Modify this Section)

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*Ensure to save the order type before moving to the configuration.
If you have not saved the order type yet and the system asks to save the
changes first, select Yes to continue.

If the system prompts the information message that Number range not
maintained, click Continue.

Highlight your Order Type (SGEN)

Click and select the correct number range for your Order type.

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Check the number range assignment to your order.

Click save

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To check the number ranges go to KONK

Click

Now you can see your Group is assigned to Settlement Documents

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If you want to create your own number ranges then follow the steps

Exercise 13 – Create an Internal Order

The management cost center has an event to celebrate the year end. In this
Event, the management wants to have a temporary cost collector to capture
all the costs related to this event.

Menu Path: SAP Easy Access > Accounting > Controlling > Internal
Orders > Master Data > Special Functions > Order > Create

Transaction Code: KO01

An internal order needs to be created for this.

Internal Order (IO) Event _XX
Name/Description Event_XX – XXXX Year Celebration
Settlement rule for this IO will be the management cost center (MGXX).
Create a new internal order: Event_XX with using the order type you created:
XXXX: Event Orders

1. Enter Order type: XXXX (xxxx - Event Orders ##) in the initial screen

Click

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 Click

Enter CTR, your cost center, 100, FUL, 1 3, and 2014

Click

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 Enter

Display Internal Order tcode - KO03

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Exercise 15 - Profit Center Hierarchy

Go to Tcode 0KE5

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Assign a name to Standard Hierarchy (SAGARPCHR)

Tcode - KCH5N

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Profit Center Hierarchy

Exercise 16 – Create Profit Centre Group

Try to create profit center groups as per the hierarchy structure

Tcode- KCH5 / KCH1 and select Lower Level to create more Profit Center Groups.

Display Profit Centers

Tcode - KCH3

Change Profit Centers

Tcode - KCH2

Exercise 17 – Create Profit Centers

The product manager Texas would like to measure the profitability for the
Following 2 products for each group:

• Product Honda
• Product Toyota

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Your task is to create the profit centres for your group accordingly and link them
tothe node: Texas (profit centre group) on the standard hierarchy.

Instructions Menu Path: SAP Easy Access > Accounting > Enterprise Controlling
> ProfitCentre Accounting > Master Data > Profit Centre > Individual Processing
>Create

Transaction Code KE51

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Save the Profit Center

Exercise 18 – Use Assignment Monitor

The assignment monitor is a tool used in CO-PCA to manage and display

controlling objects and materials which are not assigned to profit centres.

Check if there are any non-assigned costs centres exist in the controlling area:
XXXX. If there is, check how many cost centres are not assigned to profit centres.

Menu Path: SAP Easy Access > Accounting > Enterprise Controlling > Profit
Centre Accounting > Master Data > Assignment Monitor

Transaction Code 1KE4

From the initial screen, go to Menu: Assignment monitor > Cost Centres>Non assigned

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Execute

Double click on the cost center that shows

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If you already created Profit Centers then select and enter in Profit Center fieldSave

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Exercise 19 – Use Assignment Monitor

By using assignment monitor check any internal orders that are not assigned to
profitcentres.

Menu Path: SAP Easy Access > Accounting > Enterprise Controlling > Profit
Centre Accounting > Master Data > Assignment Monitor

Transaction Code 1KE4

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Double click the un assigned Internal Order and assign the Profit Center

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