OKP1 – Period Lock

Purpose

Use this procedure to open or close the month on the Controlling module/ledger. This will allow or block postings to the CO ledger, including through posting from FI module. Period locks will be managed on the Controlling Period by the Financial Reporting office, based on when the Fiscal Month has been closed for financial reporting purposes.

There are separate CO period locks & Transaction locks for “Actual postings” and “Plan postings”. 

Trigger

Perform this procedure, together with the FI module close, to indicate the end of the fiscal month, according to the Month-end Closing schedule.

Prerequisites

Before closing a period, the user should make sure that all postings to the CO ledgers (including those originating from revenue & expense accounts into FI ledger) for the current month are completed by the Financial Reporting office and the User Departments. For this purpose, it is necessary to follow the month-end closing schedule, which would outline the sequence of the steps.

Menu Path

SAP menu ⇒ Accounting ⇒ Controlling ⇒ Cost Center ⇒Accounting  Environment ⇒ Period Lock  ⇒ OKP1 – Change

T Code: OKP1

period_lock_unlock

 

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Create Statistical Key Figures

IMG ⇒ Controlling ⇒ Cost Center Accounting ⇒ Master Data ⇒ Statistical Key Figure ⇒ Maintain Statistical Key Figures

T-Code: KK01

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Double click on “Create Statistical Key Figures

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  • Stat. key figure: Enter Code 
  • Click on “Master Data

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  • Name: Give Name of the Statistical key Figure
  • Stat. key fig. UnM: Select “EA” from the popup
  • Select : Tot.values checkbox
  • Click on “Save

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For, “Change Statistical Key Figures’, Use

T-Code: KK02

Define Cost Center Categories

IMG⇒ Controlling⇒Cost Center Accounting⇒Master DataDefine Cost Center Categories

Click on “New Entries

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We activate/deactivate the following indicators for each cost center category:

  • Lock primary postings
  • Lock secondary postings
  • Lock revenue postings and revenue planning
  • Lock commitment update
  • Lock primary cost planning
  • Lock secondary cost planning
  • Lock consumption quantities

We will lock Actual revenue posting and Planned revenue posting in all of the cost center categories.
The cost center category when selected during the cost center master creation, defaults this indicator such as Lock actual revenue and lock plan revenue.

 

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Thanks

Jayanth Maydipalle

Create Cost Center Groups

IMG⇒ Controlling⇒Cost Center Accounting⇒Master DataDefine Cost Center Groups

T-Code: KSH1

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Double Click on “Create Cost Center Group

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  • Cost Center Group: Enter “Cost Center Group Code“, It allows Ten characters
  • Controlling Area: Enter “controlling Area”
  • Press “Enter” “Image

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  • Enter Name of the Cost Center Group
  • Press “Enter

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For “Change Cost Center Group”

T-C0de: KSH2

 

Thanks

Jayanth Maydipalle

Create Cost Center

IMG⇒ Controlling⇒Cost Center Accounting⇒Master DataCreate Cost Centers

T-Code:KS01

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Double click on “Create Cost Center

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  • Cost Center: Give the Cost Center Code
  • Select the date to validate the Cost Center
  • Click on “Master Data

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  • Name: Name of the Cost Center (Dept)
  • Description: Give Description for the Cost Center
  • Person Responsibility: Assign Name of the Responsible Head
  • Dept: Enter “Department”
  • Cost Center category: Select Respective category from the dropdown box
  • Hierarchy Area: Select Standard hierarchy
  • Currency: Select Currency
  • Profit Center : Select “Profit Center
  • Click on “Save

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Useful T-Codes under Cost Center Accounting:

  • KS02 to Change Cost Center
  • KS03 to Display Cost Center
  • KS04 to Delete Cost Cente

Define Standard Hierarchy

You can create or change cost centers either using the relevant menu entry or directly in the standard hierarchy maintenance function.

Cost Centers that are created or changed from within the standard hierarchy have the status ‘Inactive’, that is, they are not handled as account assignment objects in Management Accounting. The assignments can only be checked and the cost center released once the cost center is ‘Active’.

If you want to assign a cost center to another hierarchy level, you can do this in the standard hierarchy maintenance by a simple reassignment of the cost center. In other words, you do not need to make changes to your cost center master data.

You can change assignments of the organizational units, company code, business area, or profit center during the course of a fiscal year only if the following conditions hold:

  • The currency of the new company code is the same as the currency of the old company code.
  • You have only posted planning data in the fiscal year
  • The cost center is not assigned to a fixed asset, work center or HR master record.

IMG ⇒ Controlling ⇒ Cost Center Accounting ⇒ Master Data ⇒ Cost Centers ⇒ Define Standard Hierarchy

T-Code: OKEON

Click on” Image” -(Create)

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  • Write Group num & Description

Click on” Image” -(Create)

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  • Click on Lower Level Group

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  • Put Group name & Description
  • Click on “Save”

Now we can create cost center under This Group

Select this line item “Image

Click on “Create”Image

Then Select”Cost CenterImage

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  • Cost Center : Give Cost Center Number
  • Name: Name of the Department
  • Person Responsible: Give the resp Person name for that Dept
  • Cost Center Category:Select the Dept from the popup
  • Then Click on “Save” & Enter

Like wise we need to create cost centers for other Departments

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Thanks

Jayanth Maydipalle

Cost Center Accounting

You use Cost Center Accounting for controlling purposes within your organization. The costs incurred by your organization should be transparent. This enables you to check the profitability of individual functional areas and provide decision-making data for management. This requires that all costs be assigned according to their source. However, source-related assignment is especially difficult for overhead costs. Cost Center Accounting lets you analyze the overhead costs according to where they were incurred within the organization.

Features:

Entering actual costs

Primary costs can be transferred to Cost Accounting from other components, for example, Materials Management (MM), Asset Accounting (AA), Payroll Accounting (PY).

Additional costs and outlay costs are recorded using the accrual method.

Allocating actual costs

You can use various methods to further allocate the actual costs you have recorded, according to their source. The R/3 System distinguishes between transaction-based allocations, which occur within one period, and period-based allocations, which occur at period end.

Planning activities and costs

You can use planning to define organizational targets and carry out regular cost-effectiveness checks. Variances can be calculated by comparing the actual costs and activities with the plan values. These variances serve as a control signal, which helps you to correct business processes, when required.

You can plan costs and activities to determine allocation (activity) prices.

Allocating plan costs

All actual allocations that occur for cost centers can also be planned (for example, distribution, assessment, indirect activity allocation).

Entering plan and actual statistical key figures

Statistical key figures are used as the basis for the indirect allocation methods, as well as for evaluations in the information system (for example, employees, telephones).

Activity Accounting

Activity Accounting uses the activity produced by a cost center as the tracing factor for the costs. You can use activities to measure the operating rate or the rate of capacity utilization for a cost center. The target costs of the cost center refer to the activity output.

Depending on the source of the costs, the activities of a cost center are divided into various activity types (for example, for the Work center cost center: Repair hours or Assembly hours.

Information system

The information system provides tools with which you can analyze the cost flows that have occurred in your organization. You can carry out standard recurring evaluations; and create special reports for unique tasks or situations.