Controlling Cost Centers

Controlling Cost Centers

Course Overview Objectives

Provide an overview of the CO module Identify CO master data terminology and concepts Understand the cost center process

List the triggers for changes to the cost center hierarchy

Describe the various tools for creating, changing, deleting, and displaying cost centers/cost center groups Explain the various CO master data roles

Controlling Cost Centers

Overview of Controlling (CO)

Definition revenue. It is also a management instrument for organizational decisions. Controlling facilitates coordination, monitoring and optimization of all processes in an organization. Controlling (CO) and Financial Accounting (FI) are independent components in the SAP R/3 system. However, the two components are tightly integrated and the data flow between the two components takes place on a regular basis.

Controlling (CO) represents the Countys flow of cost and

Controlling Cost Centers

SAP Financial and Purchasing Components

FI

General Ledger Accounts Payable Accounts Receivable Asset Accounting

The Top book of financial records Manages vendor invoices Manages customer billing Manages fixed assets and depreciation Manages responsibility accounting

FI

FI

FI

CO

Controlling
Materials Management

MM

Manages purchasing/inventory management

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HR/Materials Management Modules

PAYROLL

What Goes Where

FI Module
ASSETS ACCOUNT S PAYABLE

Other Financial Modules

FUNDS MANAGEMENT

PURCHASING

CONTROLLING

INVENTORY MANAGEMENT

ACCOUNTS RECEIVABL E

GRANTS MANAGEMENT

Controlling Cost Centers

Key CO Terminology:

Cost Center

Cost Center Group

Controlling Cost Centers

Cost Center
Areas of responsibility in the County that incur costs.

Examples:
Tax Assessor Administration Tax Motor Vehicle

Tax Automation
Human Resources Administration Human Resources Benefits

etc.
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Cost Center (continued)

As cost centers are created, the following attributes are defined: Cost Center ID Number (10 digits)

Validity Period
Name (up to 20 characters) Description (up to 40 characters) Person Responsible (department head)

Department
Cost Center Category (ex: Admin) Hierarchy Area (ex: Human Resources) [name of cost center group (dept)] Business Area (use 1000*)

* For CSCD State, use 2000.

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Cost Center Group

A hierarchical group of cost centers. Examples: Elections

Tax
Human Resources etc. After a cost center group is created, cost centers are assigned to that group.
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Cost Center Group

(continued)
As cost center groups are created, the following attributes are defined:
Cost Center Group Name (10 characters, no spaces) Description (up to 40 characters)

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Cost Center Group

Examples:

(continued)

= cost center group;

Controlling Cost Centers

= cost center;
11

Create/Change Cost Centers Business Process

1. Create Cost Center Group Within Hierarchy 5. Make Changes To Cost Centers/Groups 2.Create/Change Cost Centers

4. Assign Cost Center To Funds Management*

* Performed in Funds Management module

3. Assign Cost Center To Hierarchy (Cost Center Group)

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Process Triggers and Outputs (cost center groups)

Process: Trigger: Output: Create a new cost center group (OKEON) Change a cost center group (OKEON) Move a cost center group (OKEON) Business need for a new cost center group. Business need to change an existing cost center group. Business need to move an existing cost center group to a new location in cost center hierarchy. Unneeded cost center group. Updated cost center hierarchy. Updated cost center hierarchy.

Updated cost center hierarchy.

Delete a cost center group (KSH2)

Updated cost center hierarchy.

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Process Triggers and Outputs (cost center)

Process: Trigger: Output:

Create a new cost center (OKEON) Change a cost center (OKEON) Move a cost center (OKEON)

Business need for a new cost center. Business need to change an existing cost center. Business need to move an existing cost center to a new cost center group. Unneeded cost center.

Updated cost center hierarchy. Updated cost center hierarchy.

Updated cost center hierarchy.

Delete a cost center (KS04)

Updated cost center hierarchy.

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1. Creating Cost Center Groups

TWO OPTIONS: A. Manual Method (KSH1)

B. Standard Hierarchy Tool* (OKEON)

*Note: The Standard Hierarchy Tool allows the user to view the existing cost center hierarchy as they are creating their new cost center group.
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1. Creating Cost Center Groups (continued)

A. Manual Method (KSH1)

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1. Creating Cost Center Groups (continued)

B. Standard Hierarchy Tool (OKEON)

- used to specify timeframe for changes/updates. Must be checked before using the Standard Hierarchy tool. Controlling Cost Centers 17

2. Creating/Changing/Deleting Cost Centers

OPTIONS:
A. Create A Cost Center (KS01) B. Change A Cost Center (KS02)

C. Delete A Cost Center (KS04)

D. Collective Processing of Cost Centers Change (KS12) Delete (KS14) Standard Hierarchy Tool* (OKEON)

*Note: The Standard Hierarchy Tool allows the user to view the existing cost center hierarchy as they are creating, changing, or moving cost centers.

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2. Creating A Cost Center

A. Create A Cost Center (KS01)

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2. Changing A Cost Center

B. Change A Cost Center (KS02)

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2. Deleting A Cost Center

C. Delete A Cost Center (KS04)

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2. Collective Processing of Cost Centers

D. Collective Processing Change (KS12)

- used to drill down and change a cost center;

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2. Collective Processing of Cost Centers

D. Collective Processing Delete (KS14)

Note: Reexecute with Test Run indicator removed after successful test. Controlling Cost Centers 23

2. Collective Processing of Cost Centers

D. Standard Hierarchy Tool (OKEON)

= create;

= copy;
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3. Assign Cost Center to Hierarchy

OPTIONS: A. Individual Processing of A Cost Center Create (KS01) Change (KS02) B. Collective Processing of Cost Centers Change (KS12) Standard Hierarchy Tool* (OKEON)
* Can be used to drag and drop a cost center to a new cost center group.

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4. Assign Cost Center to Funds Management (done in Funds Mgmt)

Controlling (Managerial Reporting) Funds Management (Budget Control)
Fundscenter center#1 #1 Funds FundABC ABC Fund
Commitment Actual Budget Commitment Actual Budget

Cost center #6 Cost center #7

Cost element

Salaries $60,000 $70,000 Salaries $60,000 $70,000 Operating 15,000 25,000 Operating 15,000 25,000 Total Total 75,000 95,000 75,000 95,000

Actual

Plan

Wages Overtime Travel Utilities Total

$10,000 $11,000 3,000 4,000 6,000 6,000 4,000 3,000 23,000 24,000

Funds center #2 Fund DEF

Commitment Actual

Budget

Budget control is at the combination of the fund/funds center/ commitment item/functional area

Salaries Operating Total

$40,000 $50,000 15,000 35,000 55,000 85,000

Note: There is a one to one relationship of cost centers to funds centers.

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5. Make Changes To Cost Centers/Cost Center Groups

OPTIONS:
A. Cost Center Group Changes
Change A Cost Center Group (KSH1) Collective Processing of Cost Center Groups Standard Hierarchy Tool (OKEON) B. Cost Center Changes Change A Cost Center (KS02) Delete A Cost Center (KS04) Collective Processing of Cost Centers Change (KS12) Standard Hierarchy Tool (OKEON)
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Display Transaction Codes for Centers/Cost Center Groups

DISPLAY OPTIONS:
A. Cost Centers Display A Cost Center (KS03) Display Standard Hierarchy Tool (OKENN)

B. Cost Center Groups Display A Cost Center (KSH3)

Display Standard Hierarchy Tool (OKENN)

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CO Roles/ Authorized Transactions

A. CO Display Role Display A Cost Center (KS03) Display Standard Hierarchy Tool (OKENN)

B. CO Master Data Role Create A Cost Center (KS01) Change A Cost Center (KS02)

Delete A Cost Center (KS04)

Collectively Change Cost Centers (KS12) Collectively Delete Cost Centers (KS14) Standard Hierarchy Tool (OKEON)

Create Cost Center Group (KSH1)

Change Cost Center Group (KSH2)
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Course Overview Summary

You should now be able to:
Provide an overview of the CO module Identify CO master data terminology and concepts Understand the cost center process List the triggers for changes to the cost center hierarchy Describe the various tools for creating, changing, deleting, and displaying cost centers/cost center groups Explain the various CO master data roles
Controlling Cost Centers 30

Accessing Training Materials

All TITAN training materials for Phase II are stored on the Tarrant County website This website is accessed through your Internet Explorer from any computer that has internet access; you do not have to be on the Tarrant County network. The URL for direct link to the Training Materials website is: http://www.tarrantcounty.com/titan/lib/titan/training/index.asp Set up this website as a favorite in your web browser for quick future access
Enter the URL above in the address field in your browser When you reach the website, go to Favorites > Add to Favorites in the Browser menu A pop-up window will be displayed with a default name for the site. Click OK. To access this site in the future, just click on the Favorites item in the menu and highlight the name for the website. You will go directly to the website.

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Accessing Training Materials

(contd)

Review the instruction page to see how to use the website

Click on the Courseware link at the top of the Instruction page A Listing of Courses will be displayed

Click on the Course Title to see a general description of the content of the course or

Click on one of the buttons beside the Course Title to go directly to either the Overview, Quick Reference Cards, or

Tutorials

These training materials will be available for your use and reference at any time Controlling Cost Centers

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Running Tutorials
An additional learning tool is being provided with the Phase II SAP implementation -- Tutorials Tutorials are simulations of the SAP system that take you through a transaction step-by-step in a mock SAP environment. These can be viewed in two ways:
As a movie that takes you through the transaction in a demonstration, or As an interactive, hands-on practice session that stops on each screen and directs you to make entries in fields or take actions per instructions provided by the wizard and in the bubbles

Tutorials are provided with each course in the Finance and Purchasing training
A list of the tutorials is provided at the end of each course. Go to the Training Materials website to access and run these tutorials. Detailed instructions are provided on the website

Happy Tutoring!!
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Training Sandbox
An SAP environment (Training Sandbox) where you can practice your skills in a real instance of SAP will be available after June 18 The sandbox can be accessed through the standard logon process discussed in Lesson 2 of the SAP Basic Navigation course The only differences are: Highlight the Training environment on the Logon pad Click logon Enter 520 in the Client field Enter the same User Id and Password you are assigned for Production

Feel free to practice any of the tasks in the basic navigation course and any of the transactions included in other courses you take. Use the Quick Reference Cards to walk you through the transactions.
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Getting Help
1
Review the on-line help in SAP

Review your training materials and notes.

Ask your peers or super user for assistance.

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Tarrant County Help

Problems with running tutorials?
Training Mailbox

[email protected]

After utilizing the various methods of help on the previous page, if you still have questions or problems
or

If you have problems at any time with accessing SAP, printing, computer or network problems, etc.
Contact the Tarrant County IT Help Desk at 817-884-3507
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