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Financials - Controlling
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Original content: https://help.sap.com/docs/SUPPORT_CONTENT/ficontrolling?locale=en-US&state=PRODUCTION&version=1.0

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Financials - Controlling

SAP Controlling provides you with information for management decision-making, showing where costs have been incurred in the
organization and for what purpose. It provides the basis for associating the cost of sales with the revenue earned and for explaining
the value added by production and investment activities within the organization.

As well as documenting actual costs, the main task of controlling is planning. You can determine variances by comparing actual
data with plan data, enabling you to effectively monitor your business processes.

Analysis of profitability, for example based on contribution margins, is used to monitor the cost efficiency of the different areas of
the organization as well as of the organization itself.

Controlling (CO) and Financial Accounting (FI) are integrated and require no reconciliation to ensure consistency, because the
financial data in CO and FI is based on the same line items. Each journal entry contains not only the G/L accounts to be debited
and credited but also the CO account assignment objects such as the cost center for wages and salaries, a project or order for
material costs, or a combination of characteristics such as product, customer, and region for sales revenues.

Controlling
Overhead Cost Controlling (CO-OM)
Cost Object Controlling (CO-PC-OBJ)
Product Cost Planning CO-PC-PCP
Actual Costing - Material Ledger CO-PC-ACT
Profit Center Accounting (EC-PCA)
Controlling and Profitability Analysis (CO-PA)

Useful links

Access SAP For Me Visit the SAP Community View Product Documentation

Overhead Cost Controlling (CO-OM)

WELCOME TO THE OVERHEAD COST CONTROLLING EXPERT CONTENT PAGE

Various CO components can be classified into different groups. The classification indicates the general purpose of a given
component.
Management of an enterprise requires the use of different tools for different situations.

How do we reduce our overhead costs?

Overhead Cost Controlling (CO-OM) is the CO component that provides tools to help answer that question. In many organizations,
overhead costs have taken a huge upward jump, including costs which the organization cannot assign directly to either products or

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services. While production areas often display great progress in controlling costs and optimizing processes, overhead continues to
display little cost transparency, so it is difficult to get a clear picture of why these costs are incurred.

What costs occur within our organization?

Cost Element Accounting (CO-OM-CEL) classifies the costs and revenues that are posted to CO, and provides the capability for
reconciliation of costs in CO with the Financial Accounting (FI) module.

What are the manufacturing costs of a product?

Product Cost Controlling (CO-PC) has two major areas of focus. It is used to develop estimates of what it will cost to produce a
product (or even a service). It also has capabilities to track the actual costs of production, and provides extensive tools for cost
analysis.

How profitable are individual market segments?

Profitability Analysis (CO-PA) provides a focus on the results of a company's doing business with the external marketplace. It
provides the ability to define which aspects or segments of that market are relevant for analyzing operating results, such as profit
by customer, product, geographic area, sales organization, etc. And it offers multidimensional drill-down reporting, to provide
extremely flexible views of operating results.

How profitable are individual enterprise areas?

Profit Center Accounting (EC-PCA) provides a focus on internal areas of a company that have responsibility for achieving certain
profit or productivity goals.

The following paragraphs and also subordinated expert content will focus on the overhead cost controlling, the part of the
management accounting which is about costs that cannot be assigned directly to the goods and services of a company and
allocate them as far as is possible according to their cause. overhead cost controlling may be subordinated into several subtopics:

Cost and Revenue element Accounting (CO-OM-CEL)

Cost and Revenue Element Accounting (CO-OM-CEL) is part of the Overhead Cost Controlling component group. It
provides the structure for assignment of CO data through the classification of transaction line items according to the
nature of the cost or revenue being posted to a given controlling object (e.g. cost center, internal order, etc.).
The cost flows in CO can lead to the need for reconciliation between internal and external accounting in certain cases. Cost
and Revenue Element Accounting is the CO component providing functionality that supports this possible requirement.

Cost Center Accounting component (CO-OM-CCA)

The Cost Center Accounting component (CO-OM-CCA) tracks where costs occur in your organization. The cost center is an
organizational unit in a controlling area. Cost centers can be defined according to several different design approaches. A typical
approach could be for an enterprise to define a cost center for each low-level organizational unit that has responsibility for
managing costs. As costs are incurred, they are assigned or posted to the appropriate cost center. These costs could include
payroll costs, rent and utility costs, or any other costs assignable to a given cost center.
Each cost center is assigned to a category, e.g. Administration cost center, production cost center, etc. Each cost
center master record has a field for the name of the person responsible for the cost center.
The posting and assignment of costs to cost centers not only makes managerial accounting possible; but is a vital step for utilizing
the other Controlling components. As noted above, cost centers can be set up according to different design approaches, including
functional requirements, allocation criteria, activities or services provided geographic location and/or area of responsibility. But
whichever approach is selected, it should be consistent throughout the enterprise.
Cost centers can be grouped together to provide summary cost information. In fact, a fundamental requirement for implementing
Cost Center Accounting is the creation of a standard hierarchy for a controlling area. The standard hierarchy includes all cost
centers in that controlling area, and provides the ability to analyze summary costs at each node of the structure. This will be
described in greater detail in the next Unit.

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Internal Order (CO-OM-OPA)

Internal Order accounting is an extremely flexible CO tool that can be used for a wide variety of purposes to track costs and, in
some cases revenues, within a controlling area. Internal orders provide capabilities for planning, monitoring, and allocation of
costs.
Internal orders may be used for a variety of purposes, and can be grouped into four general categories:
- Overhead orders: Used to monitor overhead costs incurred for a particular purpose, such as conducting a trade fair, or
tracking costs for maintenance and repair work.
- Investment orders: Used to monitor costs incurred in the creation of a fixed asset, such as building a storage facility.
- Accrual orders: Used to offset postings of accrued costs (costs calculated in CO) to cost centers.
- Orders with revenue: Used to replace the cost accounting parts of SD customer orders if SD is not being used, so that both
costs and revenues can be tracked; or to monitor revenues not affecting the organization's core business (such as miscellaneous
revenues).

Activity based costing (CO-OM-ABC)

Traditionally, overhead costs are allocated from cost centers to cost objects through various methods, such as surcharges and
activity allocations.
By contrast, Activity-Based Costing assigns costs to business processes, without regard for which organizational units may be
involved in generating those costs. A process is a cross-functional object, which can pull resources from any cost center in a
controlling area.
ABC has been implemented in R/3 as an enhancement to the cost management functionality. All overhead costs are still assigned
to cost centers. The cost centers that utilize resources in carrying out a process allocate the cost of those resources to the
process. (Example: a Purchasing cost center would allocate costs it incurred in preparing and distributing a Request for Quotations
to a Procurement business process.) The processes are then consumed by cost objects (such as production orders) and the
related costs are allocated to those cost objects. Process costs not related to cost objects are passed along to CO-PA in order to
provide a more accurate and complete accounting of overhead costs.
Cost Center Accounting answers the question of where costs occur, whereas Activity-Based Costing answers the question of why
(for what purpose) costs occur.

Overhead Cost Controlling (CO-OM)

General Controlling
Cost Center Accounting (CO-OM-CCA)
Cost Element Accounting (CO-OM-CEL)
Activity Based Costing (CO-OM-ACT/ CO-OM-ABC)
Internal Orders (CO-OM-OPA)
Reporting

General Controlling
General Controlling
Organization unit assignment
Controlling Area
Currency translation in Controlling
General introduction on authorization concept in CO
Analysis and correction reports in CO-OM (overheads management)

Organization unit assignment

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Since R/3 is a fully intergrated system, you need to assign organizational units to each other across the different
application components. You therefore need to define the internal and external organizational units concurrently and assign
them to each other.

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Having created the controlling area and the operating concern you then define their assignment. You can assign more than
one controlling area to a given operating concern, enabling you to analyze these controlling areas together within the
operating concern.
You can link company codes and controlling areas to each other in different ways in accordance with the way your
enterprise is structured.

- If Financial Accounting and Controlling perspectives are identical, you can assign one company code to one controlling area.

- If you assign more than one company code to a given controlling area, you are then able to carry out controlling on a cross-
company code basis.

You assign a plant to a company code (and therefore also to a controlling area) based on the valuation level. You can assign
one plant, multiple plants, or no plant at all to a company code.
Changes to assignments are not a problem provided you have not created any master data or transaction data.

Controlling Area
Purpose

The purpose of this WIKI contribution is to introduce you what Controlling Area is.

Overview

The controlling area is the basic organizational unit in Management Accounting. A controlling area is a closed entity used for cost
accounting. You can allocate costs only within a controlling area. These allocations cannot affect objects in other controlling areas -
cross COArea postings are not available in overhead cost controlling.

The controlling area “0001” is created in the SAP standard version. You can use these as copy templates. The settings you make
for your controlling areas must reflect the organizational controlling structure of your company.

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 use the same operating chart of accounts and the same fiscal year variant (only the number of
special periods may vary).

The control indicator can be used to activate or deactivate certain controlling components and functions for a fiscal year.

Controlling Area A controlling area is a self-contained unit within a group in which cost accounting can be performed. A
controlling area is the highest level organizational entity within CO in which cost and profit analysis takes place (except for PA
analysis which takes place within an operating concern - see above). A controlling area may contain one or more company
codes (defined below). A controlling area is also broken down into two different "standard" hierarchical structures: 1) standard
cost center hierarchy; and 2) standard profit center hierarchy - see below. Internal financial reporting and analysis focuses on
measuring the cost or profit results of components of a controlling area, such as cost centers or profit centers. External
reporting does not take place for a controlling area. Neither income statements nor balance sheets are created for an entire
controlling area.

Controlling Area
How to Maintain controlling area in SAP

How to Maintain controlling area in SAP

Purpose

The purpose of this page is to guide you how to maintain controlling area in SAP.

Overview
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You can create a controlling area by using one of the following method.

Transaction code: OKKP

IMG Path: SPRO => IMG => Controlling => General controlling => Organization => Maintain controlling area.

1. Run T-code: OKKP;

2. Double click on “Maintain controlling area”;
3. In the basic data overview screen, select “New entries” to create new controlling area.
4. On the new entries controlling area screen, update the following fields.

Controlling area: Enter the controlling area key i.e. company code key

Name: Enter the descriptive name of the controlling area

Assignment: Select the “controlling area same as company code” (1:1) or "cross-company-code cost accounting" (1:n) from the
drop down list. This setting defines the company code assignment possibilities.

Currency settings

Currency type: Update the currency type for the controlling area
Currency: Update the currency

Other settings

Chart of accounts: Update the chart of account key.

Fiscal year variant: Update the Fiscal year variant key.
Standard hierarchy: Update the cost center stand hierarchy key.

After maintain all the required data, press enter to continue.

Currency translation in Controlling

Three currencies can be used in Controlling, they are

1. Controlling area currency

2. Object currency
3. Transaction currency

Controlling area currency

The system uses this currency for cost accounting and this currency is set up when you create a controlling area. It based on "the
assignment control indicator" and "the currency type".

Object currency

Each object in controlling (e.g.: Cost Center, Internal Order, etc.…) may use a separate currency, which is specified in master data.
It mean that when you create an object in CO, the SAP system automatically defaults the currency of the company code to which
the object is assigned as the object currency. Note that, you can specify a different object currency only if the controlling area
currency is the same as the company code currency.

Transaction currency

Documents in Controlling are posted in the transaction currency. The transaction currency can differ from the controlling area
currency and the object currency, and the system automatically converts the values to the controlling area currency at the
exchange rate specified.

All these currencies are stored in the total records and the line item tables.
And system will convert the currencies in this way:

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(1) From transaction currency to controlling area currency
(2) From controlling area currency to object currency

If you use "cross-company code" controlling, the following additional currencies may also appear as controlling area currencies:
- Local Currency
- Group Currency
- Hard Currency
- Index-Based Currency
- Global Company Currency

Local Currency
Company code currency (Country currency) used for Local Ledgers in external accounting.
For each company code you can specify one or two parallel currencies that is Second and Third local currencies and are stored in
the documents and updated parallel to the local currency in the general Ledger.

Group Currency
Group currency is the currency in which the group balance sheet is displayed and you can also specify it as a parallel currency
(Additional local currency) for a Company Code.

Hard Currency
Secondary currency for countries with high inflation and you can specify it as a parallel currency (Additional local currency) for a
company code.
Note that you need to specify the hard currency in the detail screen for the corresponding country to allow the use of the hard
currency.

Index-Based Currency
Are country-specific, fictitious currency stipulated in certain countries with high inflation for tax returns.
You can specify it as a parallel currency (Additional local currency) for a company code.
Note that you need to specify the index-based currency in the detail screen for the corresponding country.

Global Company Currency

In the CO application component you can create companies to represent divisions, regions, or product groups, then you can
specify it as a parallel currency (Additional local currency) for a company code.

General introduction on authorization concept in CO

In release before 4.0, each CO object has its own authorization objects (cost centers, orders, profit centers, and processes).
E.g. K_CSKS, K_CSKS_SET, K_CSKS_PLA, K_REPO_CCA, etc. Each application has its own authorization objects (master data,
planning, and reports etc.). You need to assign authorizations for each object (ranges are not possible, except by using naming
conventions)

Now in higher releases, ONE authorization object that represents all CO objects in all transactions became real. There is possibility
to assign authorizations for "areas of responsibility", and also new authorization objects available: K_CCA, K_ORDER, K_PCA,
K_ABC, etc.

The responsibility area concept is explained in note 370082 Authorizations: Information about responsibility area.
Also refer note 15211 CO form reports: authorization concept.

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There can be two possibilities of problems that may encounter regarding authorizations:

User without authorization IS allowed to perform certain activities.

User with authorizations IS NOT allowed to perform certain activities.

The reason for the above can only be:

Customer maintained wrong user profiles

System does too many/ too less checks (in the coding)
SU22 is not maintained correctly and as a result the profiles are not correct
Kernel error during authority-check

To analyze, you can perform an ST01 trace (alternatively transaction STAUTHTRACE) to scan what happens. You can also use
report RKAUTHTR to display all authorities of a user.

Analysis and correction reports in CO-OM (overheads management)

Purpose

The purpose of this WIKI contribution is to introduce some analysis and correction reports in CO-OM.

Report Test_Run Note/Area Explanation

RKACSHOW 28145/CO Analysis of the control and transaction data of CO objects. The most used report to
analyze data in CO. It is possible to jump to line items and original documents from
other applications.

RKABSHOW CO Detailed analysis of one CO document (one document number).

RKARSHOW CO Analysis of one CO document. You can select with the CO document number, but
it is also possible to select with the aid of the original document from another
application, e.g. MM-, FI- document number. You can see easily if the CO
document has a follow-on document or not.

RKACOR04 X 21649/CO Checks the consistence between line items and totals. The update function
corrects the incorrect totals records.

Different 202357/CO-OM- The note contains different reports for the reconciliation ledger.
reports CEL

RKANBU01 in newer 152571/CO-OM Adjusting commitments. If there is anything wrong with commitments, this report
releases should always be used first to try to correct the wrong data. The commitment data
is rebuild by using the report.

RKCORR03 X 10217/CO Repairs inconsistent object numbers. This inconsistency is often the cause for
wrong values in reports (the values seen with RKACSHOW are correct, in the
reporting they are wrong).

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RKCORRH1 X 107919/CO-OM Adjusts the standard hierarchy and the cost center master data.

In the area ‚cost center accounting’ (CO-OM) there exist a variety of further
correction reports. This list can be seen with transaction SE38, type in RKCORR*
and use the F4-key. These reports are only in some cases listed in an official SAP
note. This can be checked with the ‘note search’ with it as a keyword. Please only
use update run when you are quite sure about what will going to happen.

RKPLNC01 X 16654/CO-OM­- Area: cost center planning. The report checks whether debits to the affected
CCA-B receiver cost centers and the respective credits are correct for 1 sender cost center
and 1 sender activity type.

In the area ‚cost center planning’ (CO-OM-CCA-B) there are also different
correction reports. You get them by choosing in SE38 RKPLNC*. As stated above,
please only use update run when you are quite sure about what will going to
happen.

RKACOR20 X 45122/CO Deletes CO documents which have been created by external postings (FI, MM,..).

ZRKACOR21 X 175522/CO-OM Deletes CO documents.

There exist further reports by selecting with RKACOR*. Please only use update run
when you are quite sure about what will going to happen.

There can be different reasons for the need to repost documents. The following transactions can be used to create single CO
documents on the basis of MM-documents, FI-documents, … All transactions have a test run flag.

T-code Function
OKBA Post follow-up from financial accounting documents
OKBB Post follow-up from materials management documents
OKBC Post follow-up from sales and distribution documents
OKBG Post follow-up to down payments
KAL1 Post follow-up to reconciliation ledger

Cost Center Accounting (CO-OM-CCA)

Cost Center Accounting - Overview

The purpose of Cost Center Accounting is to facilitate control within your organization. It is important that the costs incurred by
your company are transparent, as this enables the organization to review the profitability of individual functional areas and
provides management with better decision-making data. To achieve this, all costs must be assigned according to their source,
which can be particularly challenging for overhead costs. Cost Center Accounting allows you to analyze overhead costs according
to where they were incurred within the organization.

Depending on the level of decision-making authority assigned to the manager of an organizational unit, they will be able to
distinguish between various types of responsibility areas within the organization:

Cost Centers: Recording costs with reference to plan values

Profit Centers: Calculating operating results
Investment Centers: Calculating Return On Investment - In the SAP System you can create an investment center in
the Profit Center Accounting component. This can be achieved by assigning balance sheet items to a profit center.

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Dividing an organization into cost centers allows you to follow several goals, depending on the cost accounting method.

Assigning costs to cost centers lets you determine where costs are incurred within the organization
If you plan costs at cost center level, you can check cost efficiency at the point where costs are incurred
If you want to assign overhead costs accurately to individual products, services, or market segments, you need to further
allocate the costs to those cost centers directly involved in the creation of the products or services. From these cost
centers you can then use different methods to assign the activities and costs to the relevant products, services and market
segments.

Implementation:

Cost Center Accounting is often used in the first phase of an Implementation together with the main areas of Financial Accounting
(General Ledger, Overhead Orders, etc.). Basically it is possible to implement Cost Center Accounting without Financial
Accounting. Some settings, however, such as chart of accounts, company code, must be made in Financial Accounting.

Integration:

The costs of each cost-accounting-relevant business transaction portrayed in the system is assigned through Cost and Revenue
Element Accounting to an account assignment object in the Controlling component. For overhead costs this can be cost centers,
internal orders, business processes, or overhead projects.

By recording and assigning overhead costs to cost centers, it is possible to effectively manage expenses and generate data for
other areas of Cost Accounting. Methods such as activity allocation, assessment, or distribution to allocate costs to internal
orders, projects, cost objects, or market segments.

Features:

Recording of actual costs:

Primary costs can be transferred to Cost Accounting different application areas, like Materials Management, Asset
Accounting, Payroll Accounting, etc.
Additional costs and outlay costs are recorded using the accrual method.

Allocating actual costs:

Various methods may be used to further allocate actual costs which have recorded, according to their source. The
System distinguishes between transaction-based allocations, which occur within one period, and period-based
allocations, which occur at period end.

Planning activities and costs:

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 help to correct business processes, when required.
Capturing of plan costs and activities to determine allocation (activity) prices.

Allocating plan costs:

Most of the 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 number of employees).

Activity Accounting:

Activity Accounting uses the activity produced by a cost center as the tracing factor for the costs. Activities may be
used 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:

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The information system provides tools with which can be utilized to analyze the cost flows that have occurred in
your organization. Standard recurring evaluations are available as well as the possibility to adjust these standard
reports or to create custom, special reports for unique tasks or situations.

Cost Center Accounting

Cost Center Master Data
Cost Center Planning
Transaction Based Postings
Cost Center Period-End Closing

Cost Center Master Data

In a business a cost center is a division or divisional unit that adds to the cost of an organization, but only indirectly adds to its
profit. Typical examples include research and development departments, marketing and customer service. A cost center
represents a defined location of cost incurrence, for which costs are recorded separately. A cost center is used in cost center
management accounting to collect and allocate overhead costs.

Cost Center Master Data

How to create a Cost Center?
Cost Centers and the Standard Hierarchy
Cost Center Categories
Cost Center Languages
Time-Based fields in Cost Center
What is a Cost Center Group
BAPIs for cost center master data and cost center groups
What is a Statistical Key Figure

How to create a Cost Center?

This page will guide you through the process of creating a cost Center

Overview

Use the Transactions KS01, KS02 and KS03 for Create, Change and Display Cost Center Master data. A Cost Center is created at
the request of the party responsible for the Cost Center. The reason for such a request could be a change in management
reporting requirements.

The Cost Center is used to collect costs and is distinguished by area of responsibility or accounting method.
A Cost Center master record must contain the following information: basic data, a long text description, and classic system data
entries made in the Address and Communications dialog boxes.

Menu Path:

Accounting >> Controlling >> Cost Center Accounting >> Master Data >> Cost Center >> Individual Processing > Create (KS01)

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If when you try to access the KS01 Create Cost Center transaction you get prompted to enter the 'Controlling Area' then select
with F4 help option if you need for the full list of Controlling Areas in the system you are using.

Then you will see the following initial screen for creating a Cost Center

Enter the relevant entries in the following fields:

Cost Center - Enter a name for the cost Center*(usually there is a naming convention setup within a company)
Valid From** - Enter the desired start date of when you want the Cost Center to be used*
Valid To - Enter the date to which the Cost Center will prevent further postings to it. Setting the date to 31.12.9999 means
you do not plan to stop using the cost Center.
Reference: This section means you can enter another cost Center from any selected controlling area and the new cost
Center being created will automatically have all the same attributes as the one you choose to copy.
Cost Center: Enter the Cost Center number which you would like similar attributes for your new Cost Center. You
can always change the copied attributes once the KS01 transaction is executed but it saves time to have most of the
fields automatically filled.

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Controlling Area: Simply select the controlling area to which the cost Center you wish to copy from is assigned to.

Now once all data has been entered then Click the Master Data button ( ) or hit the 'Enter/Return' key on your keyboard.

**Just note that the Valid To date can be changed at a later stage should you need to E.g. the cost Center is no longer needed in
one years' time as which stage you can change the valid to date to a date in that year.

Cost Centers and the Standard Hierarchy

Purpose

The purpose of this expert content page is to explain the relationship between cost centers and the standard Hierarchy.

Overview

For the purpose of Overhead Cost Controlling (CO-OM), cost centers are grouped together in decision, control, and responsibility
units. In order to map this structure, the cost center standard hierarchy is created. Each level of the hierarchy is a cost center
group, cost centers and nodes can be assigned to each hierarchy level.

Configuration logic for Cost Centers and 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'.

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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.

Helpful notes in case of inconsistencies

If the standard hierarchy seems to be inconsistent, if entries seem to be missing or are available more than once you might refer to
the following notes:

SAP Note: 27416: Standard Hierarchy Repair

SAP Note: 545453: Multiple existing groups in standard hierarchies

Cost Center Categories

Overview

Cost Center categories provide the ability to safe guard your postings to cost centers as they will prevent non-category costs being
posted to the wrong cost center, in addition it provides greater organizational ability across your cost objects. After reading the
following expert content you will have a clearer understanding of the purpose of the cost center category and also the customizing
logic around them.

Cost Center Category purpose

The Cost Center category is an indicator in the cost center master data, which specifies the category for the cost center. Examples
include administration, production, or sales & distribution. You can use your own cost center categories or use those supplied by
SAP.

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Cost Center categories enable you to assign the same characteristics to similar cost centers. For example, you can allow particular
activity types only for particular cost centers. This is useful to prevent production activities from being posted to administrative
cost centers by mistake. You can also use the cost center category for cost calculation, where it controls what percentage of the
overheads applies to that cost center category.

Customizing Logic around Cost Center Categories

In Customizing, you can define lock indicators for each cost center category, or specify that the meaning of quantities on cost
centers is allowed. When a cost center is assigned to a particular category (at the creation of the cost center), the corresponding
lock indicators and allowed values for this category are proposed as default values for this cost center.

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The above image illustrates how cost center categories might look in a typical organization using SAP systems.

Cost Center Languages

Purpose

This page will guide you through the process of languages of a cost center.

Overview

All cost center texts (and texts of most other master data) can be maintained in language dependent - depending on the logon
language. The cost center text is stored on the data base table CSKT.
If you log in using the language EN and enter a text in the description row then that will not be visible if a user logs in under a
different language, for instance Spanish (ES).
This would then have to be maintained again in the other language.
The text from when selecting the icon next to it i.e. the long text will appear if written in English first and then logging on to a ES
system, in English.

Maintaining master data texts

- To maintain the data texts go to Transaction SE63 -> Translation ABAP Objects -> Short text

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Then Search for TABL

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- Enter the table to be edited (for example,. CSKT (cost centers), CSKU (cost elements), CSLA (activity types), ... )
- Enter both the source- and target language and press EDIT.

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- Enter the Cost Center

Now you can edit all the texts in the table manually

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Transfer

If you want to transfer untranslated text from the source language to the target language:
o Go menu path Edit -> Copy Source Texts or Edit -> Accept Source Texts (dependent on your release). If you want to copy all
lines choose All Lines and Save.

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When you enter a period, all text from the source language is transferred into the target language. If some text has already been
translated, a dialog box appears, in which you can define exceptions. This ensures that text that has already been translated is not
overwritten.

Languages when cost center is created with reference cost center

When a cost center is created with reference to another cost center, all of languages of the reference cost center will be copied

For example reference cost center A: there are four entries in table CKST for four languages (for example EN, FR, ES, ZH).

If you create cost center B with reference cost center A with logon language EN, then all of four languages of template cost center
A will be copied for cost center B - not only EN.

If there is a need to change the name and description, then this has to be done for all languages taken over from the template cost
center - in the example FR, ES, ZH in addition to EN.

Time-Based fields in Cost Center

Overview

You can maintain master data for cost centers, cost elements, activity types, and business processes with time dependencies.
Changes can be made anytime for any given time interval. Data storage also takes place with a time reference. In this way, a master
data record can have multiple database records storing different information.

Information

To Maintain Time-Based fields you can use transaction OKEG or menu path :

IMG -> Controlling -> Cost Center Accounting -> Master Data -> Cost Centers -> Define Time-Based Fields for Cost Centers.

The smallest interval is one day. To ensure data consistency, you cannot change each field daily. The timeframes in which you can
change a field depend on the field functions, which are fixed by the system and cannot be changed. Master data maintenance
includes an automatic check for each field's time-based consistency, resulting in individual time-based maintenance for each field.

The following dependencies are supported:

o Not time-based

o Day-based

o Period-based

o (Fiscal) year-based

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This function provides an overview of the time dependencies of individual master data fields during master data maintenance,
along with
checks and storage of consistency timeframes. You find this information in the "Time dependency" column.

If you use fields requiring characteristics greater than one day and which are changed for the system lifetime of the object, the
system automatically creates a new database record for this processing interval, and changes the time-based validity of existing
records. The change is logged in the master data record with the time reference.
However, a great number of changes in multiple timeframes will result in a correspondingly great number of data records.

Fields which you can change freely (indicated in the DAY column) can possess different time dependencies only if you mark them
additionally as historically relevant. This activates the time-based updating for the records.

Example

Object 1000 has one master data record created with a fiscal year of 12 periods and the cost center name AAAAAAAAAA. During
master data maintenance, you change the cost center name in period 5 to BBBBBBBBBB.
The system reacts with one of two options.

o "Name" is marked as historically relevant. The existing master data record for periods 1 - 12 must now become three records:
1000 01-04 AAAAAAAAAA
1000 05 BBBBBBBBBB
1000 06-12 AAAAAAAAAA

o "Name" is not marked as historically relevant. The existing master data record remains intact, with the name changed for the
entire existence of the record:
1000 01-12 BBBBBBBBBB

What is a Cost Center Group

The cost center group is a way of dividing cost centers from an organizational perspective for evaluation purposes or to establish
rules that apply to for all members this cost center group. The cost center type is a way of dividing cost centers based on their
function within the company. In contrast to this cost center groups can be defined to divide cost centers. These groupings are
organizational divisions of the company, and each has a defined cost responsibility. To integrate cost centers into the organization,
each one must be assigned to a node in the standard hierarchy. A multilevel hierarchy can be defined for cost responsibility areas.

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Other cost center groupings (which are not a part of the standard hierarchy) can also be defined for evaluation purposes, and
these can be grouped together or refined through hierarchical assignments.

BAPIs for cost center master data and cost center groups
Purpose

You can use below useful BAPIs to create, change or delete cost center master data and cost center groups.

BAPIs for cost centers

Activate Multiple BAPI_CTR_ACTIVATE_MULTIPLE

Change Multiple BAPI_COSTCENTER_CHANGEMULTIPLE

Check Multiple BAPI_COSTCENTER_CHECKMULTIPLE

Create Multiple BAPI_COSTCENTER_CREATEMULTIPLE

Delete Multiple BAPI_COSTCENTER_DELETEMULTIPLE

BAPIs for cost center groups

Greate BAPI_COSTCENTERGROUP_CREATE

Get Detail BAPI_COSTCENTERGROUP_GETDETAIL

Get List BAPI_COSTCENTERGROUP_GETLIST

What is a Statistical Key Figure

Overview

Statistical key figures are measurable values that are applicable to cost centers, profit centers, internal orders, or processes. An
example of a statistical key figure would be the number of employees in the transportation cost center who perform activities,
such as vehicle maintenance.

Statistical key figures are used as as an allocation base (or tracing factor) for periodic allocations such as distribution or
assessment, and for analysis purposes (such as calculating the rent costs per employee).

Statistical key figures are either defined as a fixed value or a totals value.

Fixed values are carried over from the periods in which they are posted to all subsequent periods of the same fiscal year.
Fixed values are useful for statistical key figures that tend to remain relatively constant over time, such as the number of
employees. You must update the data only when the value changes. The fiscal year total is an average of the period totals.

Totals values are not transferred to subsequent periods and must be entered individually for each period. Totals values are
preferable for statistical key figures whose values tend to change from period to period, such as the length of long-distance
calls. The fiscal year total is the sum of all the period values.

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Statistical key figures values also may be transferred from the Logistics Information System (LIS) by linking a key figure in LIS to a
key figure in Cost Center Accounting.

Statistical Key Figures

Useful BAPIs for Statistical Key Figure

Useful BAPIs for Statistical Key Figure

Purpose

Below are some useful BAPIs for statistical key figures

BAPI

Change Multiple BAPI_KEYFIGURE_CHANGEMULTIPLE

Create Multiple BAPI_KEYFIGURE_CREATEMULTIPLE

Get Detail BAPI_KEYFIGURE_GETDETAIL

Get List BAPI_KEYFIGURE_GETLIST

Cost Center Planning

This page is to be used to collect all information related to Cost Center Planning

Cost Center Planning

CO-OM planning
Excel Planning In Cost Center Accounting

CO-OM planning
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This documentation is to describe the CO-OM planning and how each transaction affects the CO-OM tables.

In CO-OM, you could plan using the following transactions:

1. KP06
2. KP26
3. KP46

KP06: cost/revenue planning

COKA primary cost element

COKP control entry primary planning

COSP activity RKP1, RKP5, RKP6

COEJ line items if planning integration is active

KP06: activity input planning

No COKA-entry for the receiver, only for the sender.

COKS control entry secondary planning

COSS activity RKP3, RKP7

COEJ line items if planning integration is active

KP06: secondary costs planning (no activity input)

In addition to the entries of activity input planning, there will be created a COKA-entry.

COKA secondary cost element

COKS control entry secondary planning

COSS activity RKP8, RKP9, RKPW, RKPX

COEJ line items if planning integration is active

KP26: activity type/price planning

From the master data tables CSKS (cost center) and CSLA (activity type) a CSSL-entry will be created with the new object number
KL...

Furthermore, COKA will be filled for the allocation cost element).

If an activity will be planned, there is an COSL-entry, if a price will be planned, there is an COST-entry.

In addition, it will be created the undefined credit record in COSS.

CSSL CSKS + CSLA

COKA allocation cost element

COKL control entry

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COSL quantity

COST price

COSS activity RKP2, RKPL

COEJL line items for planned activity if planning integration is active

COEJT line items for planned price if planning integration is active

KP46: planning of statistical key figures

COKR control entry

COSR activity RKP4

COEJR line items if planning integration is active

Excel Planning In Cost Center Accounting

Purpose

This content was created to clarify how to use excel in cost center planning.

Overview

SAP offers the option to use Planning with Excel integrated into the user interface of the SAP System, this enable you to plan using
the function of planning screen or Excel.

Planner profile

You can create or change a planner profile on transaction KP34. In this example I will create a planner profile to upload data in
transaction
KP26 (Change activity Type/Price Planning: Initial Screen).

- Create a profile name and description in KP34

Transaction KP34

- Click on 'General Controlling'

- Here you will enter the area in Controlling where you carry out planning. I will use Cost centers: activities/prices on this example.

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- Select the planning area and click on 'Layouts for Controlling'

Here you can choose an existing layout. To create a layout go to transactions KP65/KP75/KP85.

- To use excel select the Indicator for activating integrated Excel in planning.
- Click on 'Default parameters'

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- Enter default planning data in the selection screen the click on overview

SAP will create a file layout and generate the file description

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To save the layout press 'Save Excel Layout', you can click on 'generic file' button to create a generic file name.

Upload Data

Go to KP04 to enter your planner profile.

To upload data with excel at least one line of plan data must be entered manually using standard planning. Once this has been
entered then excel planning may continue.

In KP26 go to Extras->Excel Planning->Upload

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Transaction KP26

Select the file location and the file description and execute

If any error occurs or the upload finished without any errors will be presented on the next screen.

Clink on the line to see more information or errors if presented :

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Related SAP Notes/KBA

SAP Note 319713 : Error with Excel upload - possible causes

SAP Note 1408180 : Excel upload: Poor performance, TIME_OUT, or error

Transaction Based Postings

Overview

If business transactions are performed in different application areas (Financial accounting, MM, SD, etc.) then primary costs may
be posted to cost centers as a result. Costs are categorized using the posting transactions.

Business transactions that have a bearing on costs can be entered in R/3 application components such as Human Resources,
Asset Accounting, Materials Management, and Financial Accounting. The result of this posting is transferred as a primary cost
posting to Controlling. So, for example, you can post a vendor invoice containing an expense item to the relevant cost center in CO.

You can adjust incorrect account assignments using CO-internal repostings. The costs are reposted using the original primary cost
element. The main difference between a reposting and an allocation is that in the case of a reposting, the original debit amount is
always reduced on the sender, whereas for allocations, the original debit amount is not changed, but a separate credit amount
written to the sender instead.

A direct activity allocation involves entering the activity quantities that a cost center provides for another account assignment
object. These activity quantities are multiplied by the price per activity unit stored in the system. The resulting total is credited on
the sender (and debited on the receiver) using a secondary cost element.

CO processes both actual postings and commitments. A commitment is a payment obligation which, although not entered in
Financial Accounting, will result in actual costs through to the business transactions that follow.

Transaction based postings

Account Assignment Logic: Posting to Cost Center
Account Assignment Logic : Revenue Postings
Account Assignment Logic - Posting to Cost Center and Order
Commitment costs in cost center accounting
Default Account Assignments and Automatic
Direct Activity Allocation
Funds Commitments
Reposting Costs and Revenues Manually
Reposting Direct Activity Allocation

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Account Assignment Logic - Posting to Cost Center and Order

Overview

During an update to CO, only one real account assignment object can be used. The only exception to this rule is the account
assignment to a cost center, and an additional, real account assignment object. In this case, the system always updates the cost
center statistically. If you specify a real order and a cost center in the posting row, then the real posting is made for the overhead
cost order. The cost center will be automatically set as statistical account assignment object (value type 11). However, if the order
is only statistical, then it is posted to as such, and the cost center receives real postings.

You can analyze statistical postings to cost centers in the Cost Centers: Actual/Plan/Variance report (scroll down in the report).

You can only assign one object type to each posting row. This means that you cannot post the same transaction row to more than
one cost center, or order, and so on.

Account Assignment Logic : Revenue Postings

Overview

Revenues can only be posted as real postings to a profitability segment, sales order, sales project, or to a real order that can have
revenues.

Revenues can also be recorded as statistical values on cost centers however, cost centers cannot be used as real account
assignment object for revenue postings (cost element type 11 and 12).

Account Assignment Logic: Posting to Cost Center

Overview

Cost postings in CO can trigger subsequent real and statistical postings:

Real postings can be allocated or settled further to other controlling objects. Real postings is the information that is used
and transferred to FI for reconciliation purposes.
Statistical postings are only used for information purposes (reporting). You can make as many statistical postings as you
wish.

The account assignment object determines whether a posting is statistical or real, in other words, the account assignment is
either a real or statistical object. For example, the master data of an overhead cost order are used to determine whether the order
is real or statistical. Only real postings are made for a real order, and likewise, only statistical postings are made for a statistical
order. The cost center is the exception to this rule. You can make real and statistical postings for a cost center.

If you want to post CO costs, you need to use the source document (for example, from the vendor invoice, or the withdrawal
document) to identify the corresponding real CO account assignment object. You can enter additional statistical objects, or the
system can derive them

Commitment costs in cost center accounting

Overview

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Commitments are payment obligations that are not entered into the accounts, but that lead to actual costs at a later date. They
are incurred in the purchasing function, in the Materials Management component:

The internal communication for a purchasing request is known as a purchase requisition (from the ordering party to the
purchaser). A purchase requisition is a provisional obligation, that can be changed at any time. You do not need to assign a
CO object to a purchase requisition row. If you do not do so, then the commitment is not displayed in CO.
A purchase order is a contractual agreement specifying that goods or services from a vendor will be taken under certain,
agreed conditions Therefore, a purchase order is a binding obligation, as it is based on a contractual fixed agreement. For a
purchase row that is assigned to a cost element, you need to specify a CO object, so the commitment is also displayed in
CO.

If you create a purchase order with reference to a purchase requisition, the commitment is reclassified (as a purchase order
commitment) in CO.

The commitment is reduced either by processing goods receipts (service entry for service POs) against the purchase order or by
the invoice posting for POs with a non valuated goods receipt posting or where no goods receipt posting is expected at all. Actual
costs are posted to the CO object. This business transaction is continued until the purchase order is processed, and the
commitment amount is zero.

You need to activate commitments management in the controlling area in CO. Additionally, the cost center may not be locked for
commitments (locking indicator).

Commitments are not reduced when you create an outline agreement. These are only incurred when you create the contract
release order (contact), or goods release order (scheduling agreements).

Default Account Assignments and Automatic

Overview

You can define automatic account assignments or default account assignments for postings to primary cost elements. The R/3
System then automatically includes the specified (additional) account assignment for the primary postings you make. You define
automatic and default account assignments for cost elements that you always post to a particular cost center. You can also define
the assignment of an overhead order or profit center to a cost element. Whether automatic or default, the account assignments
are default values that can be overwritten in the application.

The automatic use of default account assignments are especially required for primary CO postings resulting from in automatically-
generated postings such as prices differences, exchange rate differences, and discounts.

You may enter the default account assignment in the cost element master record. Here, you enter the account assignment at
controlling area level and at account level. This option is only available with classic ERP however, not with any s4 release.

You may also enter automatic account assignments in Customizing in the activity Maintain Automatic Account Assignment. In
this activity, you can also define more detailed account assignments depending on business areas or profit centers.

When the system is deriving the information, it determines the most detailed account assignment, so it reads the entries in
Customizing first. If the system does not find any data here, then it uses the master data for cost elements. The assignment
objects defined for automatic account assignments therefore take priority over the additional account assignments for the default
account assignment.

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Direct Activity Allocation

Overview

Direct activity allocation enables business services provided to be measured, entered, and allocated.

You need to create the corresponding (measurable) tracing factors in the R/3 system. These are known as activity types in Cost
Center Accounting. To directly allocate activity, create an activity type (activity type category 1 = manual entry, manual allocation).

If you want to enter a direct activity allocation, enter the cost center that provides the activity (sender cost center), the object
that receives the activity (receiver), the type (activity type), and the quantity of the activity provided. Note that only one cost
center from the sender can be allocated to an internal activity allocation. The receiver can be any real Controlling object such as a
cost center, an order, a project, and so on.

To allocate activities directly, you need to define which cost centers are to provide which activity types, by planning activity
output.

During direct activity allocation, the sender cost center is credited, and the receiving cost objects are debited. Debiting and
crediting are executed a secondary cost element (category “43”). Debiting and crediting are the activity provided, multiplied by
the activity price.

The cost element used for direct allocation of internal activity is derived directly from the master data for the activity type. The
cost element cannot be changed in the allocation transaction.

Direct activity allocation is recorded by line items on the sender side and receiver side.

Funds Commitments
Overview

You can use the manual funds commitment function (manual commitment) to enter expected costs that were not entered in the
system using a purchase requisition or purchase order. This enables you to reserve planned amounts at an early stage.

The funds commitment must be reduced when you enter corresponding transactions such as purchase requisitions, purchase
orders, and invoices. You reduce the funds commitment by entering the corresponding amount for a reservation item. The amount
you enter must not exceed the amount still open.

You can specify reduction references in the reduction history for a commitment reduction already entered. The references are to a
follow-up document that will cause (or have already caused) the actual costs. This is for information purposes only.

Reposting Costs and Revenues Manually

Overview

You can manually repost primary costs and revenues using event-based repostings. You use this function mainly to adjust
(correct) posting errors.

When you make an internal reposting, the primary costs are reposted (under the original cost element) to a receiver. If the original
transaction is posted using an incorrect cost or revenue element, the transaction must be corrected in the original application
component in order to ensure reconciliation between external and internal accounting.

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Note that no sender check is made, in other words the system does not check whether the costs you repost actually exist on the
sending cost center. This means that negative costs may appear on the sending cost center.

The business transaction is documented by means of line items on the sender side and receiver side.

You can use the system to make event-based repostings automatically. Following a collective posting in FI that was assigned to a
clearing cost center, these automatic repostings are used to post the values in Controlling to the actual originators of the costs. For
example, salary postings from the personnel department can be posted in their entirety to a clearing cost center, thus keeping the
number of postings in FI to a minimum. This collective posting is transferred to CO. In order that the salary information can be
used in CO, the costs have to be assigned to the responsible cost centers. The reposting credits the clearing cost center and debits
the originator of the costs by the appropriate amount.

Reposting line items

Reposting Line Items

Reposting Line Items

Overview

The function for reposting line items enables you to repost specific line items from CO documents. This function is designed to
enable you to correct primary postings that you assigned to the wrong accounts. To do this, the CO document must contain a
reference to the original FI document.

Reposing line items is the equivalent of a reversal on the sender object.

You can also enter more than one receiver object.

Reposting line items creates CO documents which, unlike event-based repostings of costs, always contain a reference to the FI
document. As a result, you can trace a line item reposting back to the original Financial Accounting document.

If you repost a line item in CO, the original account assignment object remains noted in the FI document. To correct the account
assignment object in the FI document, you will need to reverse the FI document. If you have already carried out a line item
reposting in CO for this document, you will first need to reverse this reposting before you can reverse the document in FI.

Reposting Direct Activity Allocation

Overview

Reposting internal activity allocation is used to adjust posting fields.

A search function is available, which provides you with the documents you are looking for.

The total quantity of the allocated activity must remain the same, although you can allocate the quantities to different receivers.

You can make adjustments in periods, but not in the same period from which the document to be adjusted originates. However,
the fiscal year must remain the same.

You can repost the following documents for direct activity allocation:

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Documents entered manually into cost accounting
CO documents for confirmations (from Production Planning and Controlling)
CO documents for time entry (time sheet)

Reposting creates a reference in the reposting document to the CO source document

Cost Center Period-End Closing

This page is to be used to collect all information related to Cost Center Period-End Closing

Period End Closing - Main Content

Accrued Costs
CO allocation cycles (Distribution, Periodic Reposting, Assessment)

Accrued Costs
Overview

The value of all goods and services used is recorded as expense for each period.

By contrast, the values of all used goods and services that are incurred during the creation of your own ("typical") business activity
are recorded as costs for each period.

Nonoperating expense is not recorded in CO as costs.

Accrued costs do not have a corresponding expense in FI. They are only accrued for cost-accounting purposes. Two types are
differentiated between:

Valuation differences which have corresponding expenses of a difference amount (for example, cost-accounting
depreciation, imputed interest, and so on).
Additional costs do not have a corresponding expense (for example, management salary, accrued rents, and so on).

To enable you to enter accrued costs, the SAP R/3 system provides different methods:

Percentage method
Plan=actual method
Target=actual method

To avoid periodic cost fluctuations in Cost Center Accounting, you should distribute irregular expenses to the relevant periods. This
business transaction is the accrual calculation.

In R/3 Enterprise you can generate periodic postings automatically using the Accrual Engine. You no longer need recurring entry
documents with fixed values. Basic data that identifies what is to be accrued is entered in the Accrual Engine. The Accrual Engine
then calculates the accruals and generates the required periodic postings.

CO allocation cycles (Distribution, Periodic Reposting, Assessment)

CO allocation cycles
Periodic Reposting
Assessment
Cycle definition: receiver rules in receiver tracing factors
Iteration in CO-OM cycle
Cycle-Segment Method

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Difference: Periodic Reposting, Distribution, Assessment
Distribution
Running More Than One Cycle

Periodic Reposting
Overview

Primary cost postings are collected on an allocation objects and allocated to the corresponding controlling object according to
their source at the end of the period.

Periodic reposting is used as a posting aid.

Primary costs are allocated during period-end closing to the corresponding Management Accounting objects using a key defined
by the user. The receivers of a periodic reposting can be cost centers, WBS elements, internal orders, or cost objects. You can
restrict the number of receiver categories in Customizing. You can only repost primary costs with the periodic reposting. During
this process, the original cost element remains the same. Line items are posted for the sender as well as for the receiver, enabling
the allocation to be recorded in detail. The SAP system does not save the information from the clearing cost center in totals
records during a periodic reposting. This enables the SAP system to save memory when storing the data records. Periodic
repostings can be reversed and repeated as often as required.

Sender and Receiver Rules

Sender values can be posted values, fixed amounts, as well as fixed prices. If you use posted amounts, you can work with plan and
actual values. You can specify a percentage under 100%, which leaves a corresponding amount on the sending cost center. For
example, on the cafeteria cost center, this enables you to take into account that the cafeteria employees also use the resources in
the cafeteria. On the receiver side, you can store fixed amounts, fixed percentages, fixed portions, and variable portions as rules.
The tracing factor of the variable portion identifies a posted value on the cost center as an allocation base. You also specify
whether the variable portion is to consist of costs, consumption, statistical key figures, or activities. You can use plan or actual
values as an allocation base.

Assessment
Overview

Assessment was created to transfer primary and secondary costs from a sender cost center to receiving management accounting
objects. During assessment, cost centers or business processes can be used as senders.

An assessment receiver can be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the
number of receiver categories in the customizing.

Primary and secondary postings are allocated at the end of the period by means of the user-defined key.

During assessment, the original cost elements are summarized into assessment cost elements (secondary cost element category
= 42). As the system writes fewer totals records, the assessment has a better performance than periodic reposting or distribution.

Line items are posted for the sender as well as for the receiver, enabling the allocation to be recorded in detail. The system does
not display the original cost elements on the receivers. Therefore, assessment is useful if the cost drilldown for the receiver is not
important, for example, as in the case of the allocation for the "cafeteria" cost center.

Similar to distribution, the partner is updated in the totals record during distribution.

You can reverse assessments as often as required.

You use the Cycle-Segment method to define sender-receiver relationships.

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Assessment
Assessment: Allocation Structure

Assessment: Allocation Structure

Overview

For a clear picture of the costs that are to be assessed, you can summarize individual cost elements or cost element intervals into
different assessment cost elements.

Before release 4.5A, you could only assign one assessment cost element to each segment. You now decide in each segment
whether to assign a single assessment cost element, or an allocation structure.

In the allocation structure you can define which cost elements are to be allocated under which assessment cost elements.
Therefore, you do not need to create more than one segment to obtain information on the source of the costs to be assigned.

In the allocation structure, you can assign single cost elements, cost element ranges, or cost element groups to an assessment
cost element.

If required, you can go to the maintenance for allocation structures from the segment maintenance, to display, change, or create
an allocation structure.

Cycle definition: receiver rules in receiver tracing factors

The following options exist for the receiver rule in CO allocation cycles:

1. Variable portions

The tracing factors are determined automatically from the totals record file. You define the criteria for this database access in the
"Tracing Factor" screen.

Example

Sender A distributes $100,000 to three receivers. The tracing factors are the actual
costs.

Receiver Cost element Amount

B 430000 $2000

C 430000 $1000

D 430000 $2000

Total $5000

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The System calculates the following values:

Receiver B: 100,000/5000 X 2000 = $40,000

Receiver C: 100,000/5000 X 1000 = $20,000

Receiver D: 100,000/5000 X 2000 = $40,000

With the function "Receiver weighting factors" in segment maintenance, additional receiver-specific weighting factors for receiver
tracing factors can be stored in variable receiver factors. The default value is 1.

The sender base is calculated from the sum of the individually weighted receiver tracing factors.

Example:

Sender A distributes $100,000 to three receivers with the following tracing factors:

B: 50 portions Receiver weighting factor: 1

C: 50 portions Receiver weighting factor: 9

D: 100 portions Receiver weighting factor: 5

This results in the following tracing factors used for allocation:

B: 50 portions X 1 = 50

C: 50 portions X 9 = 450

D: 100 portions X 5 = 500

Total sender base: 1000 portions

The SAP System calculates the following values:

Receiver B: 100,000/1000 X 50 = $5,000

Receiver C: 100,000/1000 X 450 = $45,000

Receiver D: 100,000/1000 X 500 = $50,000

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2. Fixed amounts

You define fixed amounts in the "Tracing Factor" screen. The receivers are charged directly with these amounts. The amount
credited to the sender is derived from the total of the receiver debits. The rule for determining the sender values is not used here.
The system ignores posted sender amounts or defined sender amounts.

3. Fixed percentages

You define fixed percentages for the receivers in the "Tracing Factor" screen. The value from the sender is distributed to the
receivers according to this percentage. The total of receiver tracing factors must not exceed 100%. The sender base must be fully
distributed. If the total of the receiver tracing factors is less than 100%, then a portion of the sender value remains on the sender.

4. Fixed portions

You define fixed portions for the receivers in the "Tracing Factor" screen. This process is similar to the fixed percentage process,
with the exception that the amount is not limited to 100. The sender base is derived from the total of the receiver tracing factors.

Example:

Sender A distributes $100,000 to three receivers with the following tracing factors:

B: 50 portions

C: 50 portions

D: 100 portions

Total: 200 portions

The system calculates the following values:

Receiver B: 100000/200 X 50 = $25000

Receiver C: 100000/200 X 50 = $25000

Receiver D: 100000/200 X 100 = $50000

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You can enter statistical key figures as a tracing factor for periodic allocations, or for creating key figures in reporting. The
costs from the allocation cost center "Telephone" can be allocated using the statistical key figure of "Telephone units" for
example. If you enter "Employees" as a statistical key figure, then you can provide a report on the cost centers, on the level
of HR costs for each employee.
A decisive factor for statistical key figures, is the way in which you create them as master records
- Fixed values (category 01) are updated from the corresponding posting period onwards, in all of the following posting
periods of the fiscal year. This takes place, assuming that fixed values do not change over a longer period of time.

- Totals values (category 02) are only entered for each current period. They change from period to period, and therefore need
to be re-entered in each posting period.

You can also enter statistical key figures for an activity type on a cost center (statistical key figures that are activity-
dependent).

Iteration in CO-OM cycle

Overview

The segment relationships within a cycle can be defined so that repostings and allocations of cost centers with different segments
(a cost center is also a cost receiver) take place. Cost centers that were already credited can thus be re-debited during cycle
processing. To guarantee that the cost centers are definitely credited, the R/3 System iteratively processes all the sender and
receiver relationships defined in a cycle. The segments are run until each sender is credited as defined by the sender value.
lf you deactivate the iteration indicator in the cycle header, the system processes the segments in their sequence. This type of
processing is faster than iterative processing.
Cycles cannot iterate with each other, even if the cycles are the same type. Therefore when you create a cycle, ensure that cost
centers with the same allocation relationships are processed in the same cycle.

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If the ‘iteration flag’ is switched on, it will be checked whether a receiver is also a sender in another segment.

The allocated amounts to the receiver (which is also sender) will be allocated again.

The iteration is finished if

there is one (for the iteration) relevant segment where all receivers are no sender (Example I).
the iteration does not diverge (and the allocated amount is less than 5 smallest units).

Only segments with sender value ‘posted amounts‘ are relevant for the iteration.

Cycle-Segment Method
Overview

The cycle-segment method described below is used for defining periodic reposting and also for defining distribution and
assessment.

To display the allocation relationships between the senders and receivers in the system, you need to make the following entries:

Which object(s) were the costs allocated from?

Which object(s) were the costs allocated to?
Which costs should be allocated?
How are the costs distributed among the receivers?

In a segment, cost centers with allocation values based on the same rules are combined with receiver objects that have tracing
factors based on the same rules. For example, the "Telephone" cost center allocates the telephone costs based on telephone units.
If another rule is to be used for an allocation, you need to create a separate segment. For example, the "Energy" cost center
allocates the energy costs based on heated office space (square meters) to the administration and consulting cost centers.

Several segments are grouped into a cycle. You can define a cycle for the entire controlling area. Due to system performance and
the allocation logic, it is recommended that you create more than one cycle and process them sequentially. Likewise, you create
separate cycles for plan and actual allocations.

Difference: Periodic Reposting, Distribution, Assessment

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Purpose

This page is to explain the difference between Periodic Reposting, Distribution and Assessment.

Overview

You can only use periodic reposting and distribution for primary cost elements. The costs are transferred to the receivers using the
original cost element, so they are transferred to the primary cost elements of the receiver. Secondary cost elements remain on the
sender.

The assessment allocates primary as well as secondary costs. The information on the original primary cost elements for the
sender is lost because the costs are allocated using an assessment cost element (category 42). You can use more than one
assessment cost element for differentiation purposes.

For performance reasons, periodic reposting of the distribution is recommended, as the system does not write any sender/receiver
relationships on the totals records level for this. Assessment has the best performance as costs from different primary and
secondary cost elements can be totaled in one posting to the assessment cost element.

Distribution

Distribution was created for transfer primary costs from a sender cost center to receiving controlling objects. During
distribution, only cost centers or business process can be used as sender.
A distribution receiver can be a cost center, WBS element, internal order, cost object, or a business process. You can
restrict the number of receiver categories in customizing.
Primary Postings are collected on a cost center, and allocated at the end of the period by means of the user-defined key.
You can only distribute primary costs. During this process, the original cost element remains the same.
Line items are posted for the sender as well as for the receiver, enabling the allocation to be recorded exactly.
You can reverse distributions as often as required.
You use the Cycle-Segment method to define sender-receiver relationships.

Periodic Reposting

Differences between periodic reposting and distribution are due to information content and performance.

For periodic reposting, no separate credit record is written on the sender for the cost element in the summary report.
Instead, the totals record for the cost element is reduced on the debit side, which means that the original debit amount can
no longer be checked there ("unclean credit"). However, during distribution, the system writes a totals record for the credit
("clean credit"). The information on the receiver is the same for periodic reposting and distribution ("clean debit").

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Compared with periodic reposting, during distribution, the system also updates the partner in the totals record for the
sender. This means that the partner can be displayed in the information system on the totals record level.
As fewer totals records are written during periodic reposting, generally performance is better than during distribution.

Assessment

Assessment was created to transfer primary and secondary costs from a sender cost center to receiving controlling objects.
During assessment, cost center or business processes can be used as senders.

The receivers for an assessment can be a cost center, WBS element, internal order, cost object, or a business process. You
can restrict the number of receiver categories in customizing.
Primary and secondary posting are allocated at the end of the period by the user-defined key.
During assessment, the original cost elements are summarized into assessment cost elements (secondary cost element
category = 42). As the system writes fewer total records, the assessment has a better performance than periodic reposting
and distribution.
The system does not display the original cost elements in the receivers. Therefore, assessment is useful if the cost
drilldown for the receiver is not important.
Similar to distribution, the partner is updated in the totals record during distribution
You can reverse assessments as often as required.
You use the Cycle-Segment method to define sender-receiver relationships.
Assessments do not only include sender costs which have been posted to cost centers directly but also consider activity
dependent costs (cost center+activity type)

Distribution
Overview

The distribution was designed to transfer primary costs from a Sender Cost Center to receiving Management Accounting objects.

A distribution receiver can be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the
number of receiver categories in Customizing. You can only allocate primary costs within the distribution.

Primary postings are collected on a cost center, and allocated at the end of the period by means of the user-defined key. During
this process, the original cost element remains the same.

Line items are posted for the sender as well as for the receiver, enabling the allocation to be recorded in detail. You can reverse
distributions as often as required.

You use the Cycle-Segment method to define sender-receiver relationships.

Running More Than One Cycle

Overview
If you wish to be more economical with the allocation process, you should create separate cycles. If a cycle contains an error, you
only need to repeat that cycle, and not the entire process. You can also create a modular allocation process in which the allocations
are processed separately.

A dependent cycle uses the results from the previous cycle. You need to execute dependent cycles in the correct order to enable
the values to be processed correctly. On the execution screen, you can enter more than one cycle and the order in which they are
to be processed.

Independent cycles can be processed in parallel if they have the same allocation type. To do this, you need to assign the cycles to
different cycle flow groups in the header data of the cycle. You cannot process cycles in the same cycle flow group in parallel. You
can only start cycles simultaneously in different sessions if they belong to different cycle flow groups or if you use background
processing.

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Once processing is complete, you can check for errors using the processing log. You can analyze all the errors that occurred using
the information provided by the R/3 system.

Cost Element Accounting (CO-OM-CEL)

Cost Elements are used to monitor the type of expenses or spending. They create groups of expenses that are not related to
external or financial reporting rules, but assist management in monitoring expenses based on internal accounting policies. The
main Cost Elements are similar to P&L expense accounts from the financial chart of accounts. The integrated mass processing
transfers (and distributes) expenses from primary to secondary Cost Elements. These secondary Cost Elements are no longer
linked to the accounts used for financial and tax reporting (chart of accounts).

Cost Element Accounting

Cost Element Master Data
CO Account Assignment
Archiving CO_ITEM
CO-FI Reconciliation

Cost Element Master Data

This page is to be used to collect all information related to Cost Element Accounting Master Data

Cost Element Master Data

Cost Element - Overview and Purpose
Primary and Secondary Cost Elements
Cost Element Category 90
Change cost element category
What is a Cost Element Group

Cost Element - Overview and Purpose

Purpose

The purpose of this WIKI contribution is to provide a full and clear understanding of what a Cost Element is, what its purpose in
Controlling is and how it helps in the integration between FI and CO primarily.

Overview
Cost Elements play a very important role in the reconciliation/alignment of costs and postings between Financial Accounting (FI)
and Management Accounting/ Controlling (CO). There are different types of cost elements such as Primary Cost Elements,
Secondary Cost Elements and Revenue Cost Elements all which have a specific purpose. The category set for a Cost Element at
the time of creation will determine the transactions that can utilize the cost element.

What is a Cost Element?

Due to the integrated nature of SAP Systems there is a requirement to create expense accounts in Financial Accounting with
corresponding primary cost elements in Controlling. This ensures that expenses in Financial Accounting and primary costs in
Management Accounting can be reconciled.

Primary Cost Elements

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To be able to post a primary cost element, you require an object in Management Accounting (such as a cost center) to identify the
origin of the costs. Examples of primary cost elements are material costs and salary costs.

Secondary Cost Elements

Secondary cost elements are used exclusively in Management Accounting to identify internal cost flows such as assessments or
settlements. They do not have corresponding general ledger accounts in Financial Accounting (FI) and are defined in Management
Accounting only.

When creating secondary cost elements remember they should be valid from the first day of the current fiscal year through to the
default 'Valid to' date.

Revenue Elements

When you analyze revenues in cost controlling (CO), the SAP system records them as revenue elements. Revenue elements are
primary cost elements.

Cost Element Category

When you create a cost element, you must assign a cost element category. This assignment determines the transactions for which
you can use the cost element. For example, category 01 (general primary cost elements) is used for the standard primary postings
from Financial Accounting (FI) or Materials Management (MM).

Automatic Creation of Cost Elements

You can create cost elements automatically. You provide the default settings through which the cost element or the cost element
range that you want to create is given and enter the cost element types for the cost elements.

Primary Costs are only created when the respective general ledger exists in the operational chart. The SAP system takes the cost
element name from the G/L account master data in Financial Accounting (FI). However, you can change the name in Management
Accounting/ Controlling (CO) in transaction KA02.

Secondary cost elements are generated for all cost elements you have defined. The description is taken from the cost element
category. Once you have entered your default settings, a background session starts that generates the cost elements.

Related Content

Related Documents

Related SAP Notes/KBAs

Primary and Secondary Cost Elements

Primary And Secondary Cost Elements

Primary Cost Elements / Revenue Elements:

When creating a primary cost element or revenue element, it must be listed first as a G/L account in the chart of accounts and
defined as an account in Financial Accounting. In other words, primary cost elements and revenue cost elements require
counterparts in FI. When you create a primary cost/revenue element, the SAP System checks whether a corresponding account
exists in FI.
Secondary Cost Elements:

Secondary cost elements are used exclusively in Controlling (CO) and need not be defined in FI. It can be used for internal
allocation purpose.

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Integration with FI (Financial Accounting):

Cost Elements track the type of costs or spend. They form categories of costs that are independent from external or financial
reporting requirements, but help management to track costs according to internal accounting policies. The primary Cost Elements
are more or less mirror images (copies) of P&L revenue and expense accounts from the financial chart of accounts. The integrated
mass processing moves (and allocates) costs from primary into secondary Cost Elements. Those secondary Cost Elements no
longer are tied to the accounts used by financial and tax reporting (chart of accounts).

Adapted from Gemeinkosten-Controlling mit SAP by Uwe Brück and Alfons Raps © 2004, 2008

Cost Element Category 90

When is it necessary to use cost element category 90?

Asset acquisitions and down payments can be assigned to an internal order or WBS element statistically. In this manner, for
example, an availability check can be triggered on the order or the WBS element for asset posting.

In this cases it is necessary to create asset acquisition account as a cost element category 90.Category 90 is automatically
assigned when you create cost elements in CO whose general ledger accounts in FI are asset reconciliation accounts. You cannot
change this category in CO master data maintenance.

FI does not require CO account assignments to cost elements of category 90. However, if you enter an account assignment, it is
only recorded statistically for real objects.

Category 90 allows you to check order or project budgets for fixed asset procurement. To do so, enter the investment order or
WBS element in the corresponding field in the asset master.

WBS element not populated in acc.asignment SFIN

Purpose
The purpose of this page is to clarify and understanding the requirement of new SFIN system regarding to automatic derive WBS
element on account assignment against AUC

Overview
1. Create a statistical WBS element and enter budget amount on it.
2. Assign it in the AUC asset master
3. Create Po and assign the AUC asset in the PO
4. Post invoices for the PO.
5. PO should pull up the WBS element on the account assignment tab against the AUC asset, but the field is blank.

Reason
In transaction FS00 asset balance sheet reconciliation account not set properly. In SFIN is no longer necessary to create statistical
cost elements for asset reconciliation accounts (category 90) but you must set indicator "Apply Account assignment Statistically
in fixed asset account" for this account if you want the account assignment object to be retrieved in the PO.

Solution
Go to transaction FS00 ->Control data->Account Setting in Controlling Area->Set indicator "Apply Account assignment
Statistically in fixed asset account".

Related SAP Notes/KBAs

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SAP KBA 2322652 - ME21N - WBS element not populated in acc.assignment

Why cost objects(e.g. WBS) assigned to assets cannot be derived

Title
Why cost objects(e.g. WBS) assigned to assets cannot be derived

Purpose

The purpose of this page is to clarify the understanding of the system logic and requirements in relation to why cost objects(e.g.
WBS) assigned to assets cannot be derived

Overview
When create purchase requisition in transaction code ME51N, select the asset for account assignment, enter the asset number,
the cost object(e.g. WBS) cannot be derived from the asset master some times.

Reason
In most cases, the reason is because the account is not defined as cost element with category 90.

Solution
Defined cost element with category 90 for account which used, or input the WBS value manually when create purchase order in
ME21N from purchase requisistion.

Related Documents
NA

Related SAP Notes/KBAs

NA

Change cost element category

Symptom:

You want to change the category of a cost element.

Solution/Explanation :

It is not possible to change the cost element category if transaction data already exists. If you have dependent data (actual and/or
planning data) on the cost element for the fiscal year there is no way to change the category type until the next fiscal year. This is
to prevent inconsistency in the data for a given fiscal year.

You can change the validity period of the cost element as of the next fiscal year in KA02 to change the master data in relation to
the cost element type. In case you need to execute this change for periods postings have already be updated with the cost
element, all the previous postings to this cost element within the fiscal year need to be reversed or deleted.

In most cases this not easily possible - so it mainly depends on how many postings you have made to this cost element. In case
you can remove the previous CO-documents use note 175522 by deleting the postings with report ZKACOR21.

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Delete all the actual postings for the particular cost element\fiscal year combination so that there are no dependent entries in the
CO tables. There are entries in the following tables COEP, COSP, COSS and COKA.

Notes 37093, & 38955 that explain how to delete cost elements where there is dependent data.

The cost element can only be deleted, if you delete first the entries of following tables: COEP (CO object: period-related line
items), and with the information document number and line item of COEP you can delete the entries in table COBK (CO Object:
Document header). The name
of the summarized table is COSP (CO Object: Cost Totals - External Postings). The last table is the most important one it is the
control table. The Transaction KA04 will select this table before deleting a cost element. Its name is COKA. If you delete all entries
it should be possible
to delete your cost element.

Relevant Notes:

Note 175522 : ZKACOR21/ZKACOR21R - program for deleting CO documents

Note 37093 : Master data: change/delete validity period
Note 38955 : Dependent data when you delete master data
Note 1760985 : Errors when Changing the Cost Element Category

What is a Cost Element Group

Purpose
Explain cost element group.

Overview
The object Cost type / sales revenue type grouping is a dividing up of chart of account item - cost types or chart of account item -
sales revenue types for evaluation purposes or for the specification of rules of common validity.

Useful BAPIs for Cost Element Group

Purpose
There are uesful BAPIs.

BAPI
Create BAPI_COSTELEMENTGRP_CREATE

Get Detail BAPI_COSTELEMENTGRP_GETDETAIL

Get List BAPI_COSTELEMENTGRP_GETLIST

CO Account Assignment
Purpose

This content was created to clarify the system logic of the controlling accounting assignment.

What is an account assignment object in SAP Controlling?

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An account assignment object is an abject which is able to carry costs. All postings which are supposed to be updated in
controlling need to be posted with a cost element and need to be posted to one or several account assignment objects. The
account assignment object is used to track costs and to determine where within a company the costs have occurred. The goal is to
allocate all costs as accurately as possible to the originator.

Several account assignment objects may be used for a single posting. Of these several account assignment objects only one of the
object acts as "real account assignment object". All other account assignment objects will act as "statistical account assignment
objects". There is no definite limit on how many statistical account assignment objects may be used within a single posting line, it
is however only possible to enter every account assignment object once only in a posting row. It is not possible, for example, to
book two or more cost centers in one posting line.

If you assign multiple cost objects to a posting line, the system will determine which cost object will be the "real account
assignment object" based on SAP's internal rules. All other involved cost objects will only receive a statistical posting. For instance,
if a cost center and a non-statistical internal order are assigned, the internal order will receive the actual posting while the cost
center will receive a statistical posting.

The full CO account assignment logic is summarized in SAP note 41103.

Only real postings can be further assessed / distributed/ settled etc.. Statistical CO assignments just have an informative
character and are used i.e.. for reporting or budget control purposes.

Information - Order that the accounting assignment is checked within CO

The following is the order of Checks used by the system sequentially:

CHECK 1:

The system will check if the Account Assignment is provided by the calling application or entered manually by the user.

In this example FB50.

CHECK 2:

OKC9 - Substitutions - System will check if a substitution is setup to provide the account assignment.

(Further information in relation to OKC9 see Note: 105024).

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CHECK 3:

OKB9 - System will check for Default Account Assignments in transaction OKB9. This check will be performed only if no other
account assignment object is available once this step has been reached

(Further information in relation to OKB9 see Note: 105024)

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CHECK 4:

If still no Account Assignment exists, the master data of the cost element will be assigned (can be an Order or Cost Center). This
will only be performed with classic ERP, not with S4.

Transaction KA03

Error KI235 - Account X requires an assignment to a CO Object

If the master data has not been maintained with the necessary Account Assignment then the Error Message KI235 will occur
unless the following modification is
implemented in your system.

What it's stronger ? Validation or Substitution ?

If you have defined a substitution that contradicts a validation condition, the system informs you of this by displaying a message.
Validation has priority than substitution.

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Related Notes

SAP Note 41103 : INFO: CO account assignment logic

SAP Note 842318 : Frequently asked questions about validations + substitutions
SAP Note 392273 : When is validation/substitution called?
SAP Note 107650 : CO-internal postings: Account assignmnt.type fields
SAP Note 1296568 : KI235 - Requires a CO Account Assignment Logic
SAP Note 371517 : OKB9 not executable despite current settings
SAP Note 117655 : Default account assignment from OKB9 is not used

Account Assignment
Account Assignment Objects and object types
Account assignment example logic - posting to Cost center and order
Error message KI235

Account Assignment Objects and object types

The most important account assignment objects are listed in the following table. The identification code corresponds to the first
two characters of the object number (object type).

Account Assignment Object COBL Field ID Code/ OBJNR

Cost center KOSTL KS

Cost center/activity type KOSTL/LSTAR KL as of 4.5A

Order AUFNR OR

Sales order KDAUF/KDPOS VB

Project (WBS element) PS_PSP_PNR PR

Business process PRZNR BP as of 4.6A

Network/ Network activity NPLNR NP, NV

Cost object KSTRG HP

Profitability segment, account-based profitability analysis PAOBJNR EO

Profitability segment, costing-based profitability analysis PAOBJNR AO

Reconciliation object AO

Real estate object IMKEY I* As of 4.0A

Network Activity Element will have ID code "OK"

Sales orders are valid only with make-to-order production (VBAP-KZVBR = “E").

The EO profitability segment is posted to only with account-based profitability analysis.

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The full CO account assignment logic is summarized in SAP note 41103.

Account assignment example logic - posting to Cost center and order

Several account assignment objects may be used for a single posting however, only one of these account assignment objects may
act as "real account assignment object". What happens if several account assignment objects are available? This example covers
the situation with an order and a cost center available within the same posting line processed in CO.

1. In the first example, the cost center and order (real - statistical indicator not set in the master data) are used as cost
objects during posting. The system will always update the cost center statistically. In other words, if you specify a cost
center and an order (real) in the posting row, the real posting will be updated for the order (real), while the cost center will
only be updated statistically.

2. In the second example, the cost center and order (statistical - statistical indicator set in the master data) are used as cost
objects during posting. However, since the order is marked as statistical, the real posting will be made for the cost center,
while the statistical posting will be made for the order (statistical)

The full CO account assignment logic is summarized in SAP note 41103.

Error message KI235

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Purpose

The purpose of this page is to clarify the understanding of the system logic and description in relation to the error message KI235.

Overview

In a lot of cases(e.g. in FI transaction code, in MM transaction code, in AA transaction code... etc.), when you try to post some
document in FI, you got the error message KI235:

Why Error message KI 235 will be raised:

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Basically, the relation between FI and CO is cost element(which is Called Account in FI), when you try to post document to FI,
system will check whether the account is created as a cost element or not(transaction code: KA03), if yes, then it will need some
CO object to be assigned as listed above. When there is no any CO objected as listed above assigned, then the error message will
be raised.

How to check and resolve the error message

1) if you post the document from FI directly by transaction codes like: FB01, F-02,etc. - please assign CO objects to the line item
accordingly.

2) if the document is posted automatically from some other component like MIGO, MR11, please check whether you have
completed the setting in t-code: OKB9 (default account assignment) or OKC9 (CO substitution)<

3) if you have no other idea above the error message, and the CO objects is given and setting in OKB9 is done, please check the
support package of your system, then search the notes from SAP Service market place with the key work KI235 or KI 235 and your
support package.

FAQ:

1) Q: why the error message KI235 only happens this year, there is no problem last year. A: please check if you have set validity
period for the cost element in KA03.

2) Q: why the error message KI235 raised for some specific asset, but not for some other asset. A: please check the account
determination of the assets, for difference asset class, the account would be different, and for some accounts, the cost element
was created, for others is not.

3) Q: the setting in OKB9 is done, but the error message KI235 still raised. A: Please check the SAP note 32654, The system issues
the error message KI 235 if an account assignment is actually stored in Transaction OKB9 on the level 'Detail per business
area/valuation area' or 'Detail per profit center'. This detailed account determination only functions with a unique reference to a
document item. This unique reference is not possible for the automatically generated lines (e.g. KDR, DIF, UPF) since they refer to
the entire document. You can only store an account assignment for the transactions (KDR, DIF, UPF) on the highest level (view:
default account assignment) in Transaction OKB9. This is not possible on detail level.

Related SAP Notes/KBAs

32654 - High level automatic account assignment

Archiving CO_ITEM
Purpose

The purpose of the WIKI is to outline and clarify the use and functionality of Archiving Object CO_ITEM. This Archiving object is
predominately used in the ERP Controlling module to help manage data volumes (in releases before S4). This WIKI will explain at a
high level, the tables, customizing, write and delete jobs in CO_ITEM archiving object.

Overview

The archiving object CO_ITEM is used for archiving line items in the Controlling (CO) application component. The R/3 System
automatically creates a CO line item for each transaction that involves an object in the CO application (such as an order or cost
center). When you archive CO objects, the system automatically also archives the CO line items that belong to those objects.

File Names/Paths

To create the names and target directories of archive files check note 35992, then go to transaction AOBJ.

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Transaction AOBJ

Select CO_ITEM in transaction AOBJ then click on Customizing Setting to assign the logical file name

Transaction AOBJ

Database Tables

You can check which tables will be archived in transaction SARA.

Go to transaction SARA, enter archiving object CO_ITEM then click on Database Tables.

Transaction SARA

The next screen will show the tables from which data is archived.

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Customizing

In transaction SARA enter the Archiving Object CO_ITEM then click in customizing

Then click on Residence Times for CO Line Items, the last option.

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Here you can enter :

- Object type :

- REO Reconciliation Object

- PSG Profitability segment
- COB Cost object
- CTR Cost center
- NTW Network
- ORD Order
- WBS WBS element
- SDI Sales document item

- Sub-object Type : The R/3 System supports order types as sub-object types for object type "Order" (ORD) at present. No other
objects support sub-object types at this time.
- Controlling Area
- Value Type :
0 - All value types
1 - All plan value types
2 - All value types except planning, such as actual and commitment

- Residence Periods : How long data will remain in the system before being freed for archiving

Example: You enter 6 residence periods. Archiving starts in April 2006. The last posting period for which you can archive a
document is September 2005.
Assuming a fiscal year with 12 months defined as posting periods, the periods October, November, and December 2005 and
January, February, and March 2006 cannot be archived yet as they fall within the six-period residency.

- Fiscal Year : The whole fiscal years are archived if you select this option.

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Maximum Duration of Write Job

You can customize the maximum duration hours of a write job in -> Customizing -> Technical Settings. The time in question is the
time since the start of the write job.

Write

Before execute the write function you must create a variant with the selection criteria with the objects that you want to archive

After provide the variant, start date and spool parameters execute the archive

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Check the spool for the write job which contain the objects that were archived

Delete

To delete the archive enter the file that you want to delete in the archive selection

After the process is completed go to management where you can have all the details about this archive job and it's status

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You can also check the spool list from here

Related SAP Notes/KBAs

SAP Note 35992 : File name/directory for application archiving

CO_ITEM: Improving performance

Performance Improvement Of CO_ITEM (Archiving)

Performance Improvement Of CO_ITEM (Archiving)

Purpose

The purpose of this WIKI page is to provide hints to improve the performance when archiving the Object CO_ITEM in SARA when
it's consuming too much memory and causing DUMP's (TSV_TNEW_PAGE_ALLOC_FAILED, SYSTEM_NO_ROLL).

Overview

The object CO_ITEM archives Cost Center Line Item (Actual and Plan).
When using the CO_ITEM archiving object the following tables have data that would be archived. (COEP, COBK, EBII, COEJ, COEPR,
COEJR, COEPL, COEJL, COEPB).

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Analyzing data to be archived

Run report RARCCOA2 (SAP note 138688 ) and check the result list (Header) for the date below 'RARCCOA1'.
This should be greater than your to-period/to-year on the selection screen of CO_ITEM write program, if not, plan an actual
background run of RARCCOA1 for all 5 tables.

If you have present data of RARCCOA2 check the column to the right of archiving object (Object Type).

- Transaction SM30
- Table/View ARCU_COIT1
- Display

There should be only those object types you also find in report RARCCOA2.

Analyzing the memory parameters

If you many entries left on the database this can reach the technical limits while executing the archiving.

Please check the parameter ztta/max_memreq_MB (transaction RZ11) according to SAP note 353579.

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Improving the Performance

Create runs (variantes) with different sets of cost centers while using the whole fiscal year of the year you want to archive.

Example : archive runs with the following parameters:

- Controlling area XXXX

- Object type CTR ( or what you have most entries in etc.)
- Sub-object type (empty)
- Group or set A branch of the standard hierarchy

- To fiscal year XXXX

- To posting period (empty)
- Value types (empty)
- Processing options Archive
- Detailed log Don't check.
- Archiving run memo (Does not matter, just like you want.)

Related SAP Notes/KBAs

SAP Note 865671 : Cost center archiving: Backgrounds and

SAP Note 521604 : CO-EP reports: Documentation for automatic archive
SAP Note 613707 : Archiving CO_ITEM: Standardization
SAP Note 200480 : Archiving CO_ITEM: Too few or nothing archived
SAP Note 565132 : Archiving object CO_TOTAL: Documentation
SAP Note 564967 : Archiving object CO_TOTAL
SAP Note 138688 : Report RARCCOA2, Archiving/Controlling: table analysis
SAP Note 195480 : Simulation for document summarization in CO

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SAP Note 502290 : Archiving CO_ITEM: Very long runtime
SAP Note 171965 : Archiving orders: Long runtime

CO-FI Reconciliation
Purpose

This content was created to clarify the system logic of the CO-FI reconciliation.

Overview

This function reconciles the internal posts from CO to FI. You can use the Real-Time integration to transfer cross-company code or
cross-functional area postings made in CO that are relevant to FI and to automatically create reconciliation postings in FI.

CO-FI Reconciliation Customizing

The customizing of the Real Time Integration will determine when the FI document will be created from CO lines. You can check the
customizing on transaction FAGLCOFIIMG.

First you need to define the variant for the Real-Time Integration:

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In the variant you will define:

- Real-Time Integration with CO Active: The CO documents selected are to be transferred in real time to Financial Accounting.
- Key Date from which Real-Time Integration Is Active: Key date from which CO documents are transferred from CO-internal
allocations into Financial Accounting.
- Perform Acct Determination for Real-Time Integration with CO: Account determination (OK17) to be performed when CO
documents are transferred into Financial Accounting.
- Document type: The document type classifies the accounting documents
- Ledger Group: Identify the ledger group

Then you need to choose the selection of document lines for Real-Time Integration CO->FI:

- Use Check boxes

The CO line items that correspond to the selected criteria to be transferred to Financial Accounting .

For example:

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In your system the real time integration is active. The fields to be checked are

- Company code
- Fund
- Functional area
- Profit Center

If there is a change during a CO posting (Credit vs. Debit) in any of the selected fields the FI document will be created. If there is no
change no FI document will be created.

- Use BAdI :

The CO line items will be selected using a customer-defined implementation for the Business Add-In (BAdI)
FAGL_COFI_LNITEM_SEL.

- Use Rule

The CO line items will be selected using a Boolean rule to be transferred to Financial Accounting.

- Update All CO LIs

All the CO line items that are generated with CO internal allocations (KO88, CJ88, KSU5, KEU5) will be transferred to Financial
Accounting.

After you customize the variant you will need to assign it to a company code

Account Determination Of The FI Document

You customize the account determination on transaction OK17.

You cannot transfer any secondary cost elements from Controlling into an FI document, so you need to maintain an account in
transaction OK17. Primary cost elements are transferred from the CO document to post the FI document, but you can use the
option "Account determination for primary cost elements" to use the account from the account determination.

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Useful CO-FI Reconciliation Transactions

FAGLCOFIFLUP Repost CO->FI from Worklist

FAGLCOFIIMG Customizing for CO->FI Update
FAGLCOFILOGDISP Display Application Log
FAGLCOFITRACEADMIN Administr. of Trace for OnlineUpdate
FAGLCOFITRACEDEL Deletion of Trace Data for Update
FAGLCOFITRACEOFF Deactivate Trace for Online Update
FAGLCOFITRACEON Activate Trace for Online Update
FAGLCOFITRACESHOW Display Trace for Online Update
FAGLCOFITRNSFRCODOCS Transfer CO Doc. into Ext.Accounting
FAGLCOFIWRKLSTDISP Display Worklist
FAGLCOFIWRKLSTEDIT Edit Worklist
FAGLCOFIWRKLSTTRACE Display Worklist and Trace Data
FAGLCORC CO - FI Reconciliation

Activity Based Costing (CO-OM-ACT/ CO-OM-ABC)

What is Activity Based Costing? - Definition

Activity-Based Costing provides a process-oriented, cross-functional view of overhead, in contrast to the traditional location-
oriented view provided by Cost Center Accounting. Activity-Based Costing thus complements and enhances Cost Center
Accounting.

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Activity-Based Costing allocates process quantities based on resource and process drivers, allowing you to define cost allocation
along the value-added chain more exactly than is possible with overhead rates. Activity-Based Costing also complements and
enhances product costing by assigning costs to the business processes where they originated. Cost center resources can allocate
to business processes based on their true utilization of activities.

Activity Based Costing

Activity Based Costing - Master Data (Activity Types)
BAPIs for Activity Type

Activity Based Costing - Master Data (Activity Types)

Overview

The Activity type is utilized to control specific activities and can be assigned/used with to one or more cost centers. The following
is a general overview of how the activity type functions within the controlling module and its purpose in allocating costs and
quantities, both directly and indirectly.

What is an Activity Type?

The activity type classifies the activities that are to be performed within a company by one or several cost centers. The master
data transaction codes for creating, changing and displaying activity type master data are: KL01/KL02/KL03.

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If a cost center provides activities for other cost centers, orders, processes, and so on, then this means that the resources of this
cost center are being used. The costs of these resources need to be allocated to the receivers of the activity. Activity types serve as
tracing factors for this cost allocation.

How activity types are used to calculate costs

In an internal activity allocation, the quantity of the activity, such as a number of consulting hours, is entered into the SAP system
(manually or automatically). The system calculates the associated cost based on the activity price and generates a debit to the
receiver and a credit to the sender for both the quantity and costs. The internal activity allocation is carried out using secondary
cost elements, which are stored as default types in the activity type master data.

You can restrict the use of the activity type to certain types of cost centers by entering the allowed cost center categories in the
activity type master record. You can enter up to eight allowed cost center categories, or leave the assignments "unrestricted" by
entering an asterisk ( * ).

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Activity Type Category

The activity type category is used to determine whether and how an activity type is recorded and allocated. For example, you can
allow some activities to be allocated directly, but specify for others that they are either not allocated, or allocated indirectly only.

BAPIs for Activity Type

Purpose

There're several useful BAPIs for activity types...

BAPIs for activity types:

Change Multiple BAPI_ACTTYPE_CHANGEMULTIPLE

Create Multiple BAPI_ACTTYPE_CREATEMULTIPLE

Get detail BAPI_ACTIVITYTYPE_GETDETAIL

Get List BAPI_ACTIVITYTYPE_GETLIST

Get Prices BAPI_ACTIVITYTYPE_GETPRICES

BAPIs for activity type groups:

Change Multiple BAPI_ACTTYPE_CHANGEMULTIPLE

Create Multiple BAPI_ACTTYPE_CREATEMULTIPLE

Get detail BAPI_ACTIVITYTYPE_GETDETAIL

Get List BAPI_ACTIVITYTYPE_GETLIST

Get Prices BAPI_ACTIVITYTYPE_GETPRICES

Internal Orders (CO-OM-OPA)

This section is to be used for all information relevant for Internal Orders in SAP Controlling

Internal orders are used to plan, collect, and settle the costs of internal jobs and tasks. The SAP system enables you to monitor
your internal orders throughout their entire life-cycle; from initial creation, through the planning and posting of all the actual costs,
to the final settlement and archiving.

An Internal Order is a self-contained mini project cost object, i.e. it's a collection of costs, but not a full project with WBS and
network relationships. The Internal Order may settle to Fixed Asset, Project, Cost Centers, etc. at the accounting period (month)
end. It's a process similar to overhead allocation. In turn, the Internal Order can also be settled into and serve as an interim
placeholder for overhead costs.

Internal Orders Overview

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An internal order is a virtual location where the costs of a specific activity or task are collected and pooled. This method allows for
the tracking of costs related to a particular job, service, or task without the need for immediate analysis. At regular intervals, the
costs collected in an internal order can be settled to an asset, cost center, GL account, or order. This approach to recording and
settling costs enables detailed analysis of costs by cost center, profit center, or cost element. While this level of monitoring can be
very detailed, it provides management with the ability to review internal order activity for better decision-making purposes.

Both, internal orders and cost centers are objects used to collect and further allocate costs in management accounting. Internal
orders have many controls such as an order profile, status profile, budget profile, plan profile etc. to manage the processes of the
order and included costs.

Internal Orders are usually more used for short term purpose like Trade Fairs, Job Fairs etc., where as Cost Centers are used for
long term purpose to capture the day to day costs. Finally you have to settle the Internal orders to any cost object, wherein Cost
centers are used to distribute/assess the costs of the company.

Internal orders
Internal Order Master Data
Budget and Availability Control
Internal Order Actual and Commitment Postings
Internal Order Period-End Closing

Internal Order Master Data

This page is to be used to collect all information related to Internal Order Master Data.

Internal order- master data

Activate Order Management in Controlling Area
Order Types - Basic Overview
Model Orders
Order Groups
Real and Statistical Orders
How to modify actual posted cost center into statistical Internal Order master data
Useful BAPIs for Internal Order
Frequent Issues: Changing Currency on Internal Order or Receiving Error KO288

Activate Order Management in Controlling Area

Purpose

This content was created to clarify the steps to activate the order management in a controlling area.

Activation

You have to activate Order Management per controlling area before starting the configuration for and the actual use of internal
orders. To activate use to the following path :
IMG -> Controlling -> Internal Orders -> Activate Order Management in Controlling Area, or you can go to transaction OKKP.

Select your controlling area and click on 'Activate components/control indicators'

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Select the Fiscal Year

Select 'Component active' for Order Management.

With this indicator Order management is active without restrictions. Orders are validated against the order master and can be
used as account assignment objects.

Order Type

An Internal order is created under an Order type. An order type is used for storing various control parameters and various defaults
while creating an internal order. The order type is client-specific, which means that every order type can be used in all controlling
areas. A number range is assigned to the internal order type.

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Go to transaction KOT2_OPA or KOT2 to customize the order type

Field Selection

You can select the required fields when creating an internal order. Go to KOT2, select the order type and then click on 'Field
Selection'.

Here you can choose to Hide, display, make the field available for input and make the field as a required entry

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Number Ranges

The number range needs to be assigned to the internal order type. Number range can be internal or external. In internal numbering
system automatically assigns a number from the given number range. In External numbering the user has to manually assign the
number from the given number range.

To assign number ranges go to IMG > Controlling > Internal Orders > Order Master Data > Maintain Number Ranges for Orders or
use transaction KONK

Click on 'Display Intervals' to check the intervals

SAP Note 525576 : Internal order number outside number range interval

Order Types - Basic Overview

This page will provide basic information regarding Order Type configuration in the CO-OM-OPA module.

Order Type

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You can only create internal orders with reference to an order type. You must assign each order to an order type, which then
transfers certain parameters to the order.

Order types define the purpose of the order and the way it is processed in the system. The order type may also be used to group
together orders with similar characteristics. The order type is valid for an entire client, you can use an order type in any controlling
area.

The order type determines, for example:

Whether commitments management is active

Whether revenue postings are allowed
Order status management
Characteristics (required, optional, and so on) of master record fields
Whether the order number is internally or externally assigned and the number range
General parameters for settlement, planning, and budgeting
Order layout

The CO partner update indicator can have a large impact on system performance, therefore you should activate it only when
absolutely necessary.

Define Order Types

An order type includes a variety of control information that is important for managing orders. Each order must be assigned to an
order type that passes certain parameters onto the order. Order types can be maintained as follows:

Menu path in Customizing IMG:

Controlling

Internal Orders

->Order Master Data

->Define Order Types

->New Entries or transaction Code: KOT2_OPA

Screenshots:

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Field Selection

You can select the required fields when creating an internal order. Go to KOT2, select the order type and then click on 'Field
Selection'.

Here you can choose to Hide, display, make the field available for input and make the field as a required entry

Number Ranges

The number range needs to be assigned to the internal order type. Number range can be internal or external. In internal numbering
system automatically assigns a number from the given number range. In External numbering the user has to manually assign the
number from the given number range.

To assign number ranges go to IMG > Controlling > Internal Orders > Order Master Data > Maintain Number Ranges for Orders or
use transaction KONK

Click on 'Display Intervals' to check the intervals

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Main configuration components of the Order Type

Settlement Profile

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

Allocation Structure

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.

Source Structure

A source structure contains several source assignments, each of which contains the individual cost elements or cost element
intervals to be settled using the same distribution rules.

EXAMPLE: The object in question has incurred both direct and overhead costs. The direct costs are to be divided 50% each
between a fixed asset and a cost center, while the overhead is to be settled in full to an administration cost center in CO.

To do this, you would create a source structure with two source assignments:
1. Direct cost elements
2. Overhead cost elements

PA Transfer Structure

In the PA transfer structure you determine which cost element groups are assigned to which value fields in Profitability Analysis
(CO-PA). You make these assignments within so-called "assignment lines". Settlement lets you transfer costs, revenues, sales
deductions and production variances to costing-based Profitability Analysis. The PA transfer structure defines which quantities or
values of a sender are to be transferred to which value fields in CO-PA as part of settlement. For example, in the case of a
marketing order, you can assign the cost element group "Personnel costs" to value field VTRGK (= Sales overhead).

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Status Profile

A status profile is a combination of user statuses and rules that can be defined by the user. You define status profiles in
Customizing. Within a status profile, you can:

Define user statuses and document their functions using a corresponding long text
Assign a status number to a user status. This status number specifies in what sequence the system runs through the user
statuses
Define an initial status that is automatically set when an object is created
Specify that a user status is automatically set when you execute a business transaction
Allow or forbid specific transactions when a status is active
Define a business transaction that is automatically executed when you set the user status

Model Orders
Purpose

This content was created to clarify the use of model orders.

Overview

Model orders are used as references for creating orders. Model orders contain default values for the orders in an order type. The
Model order is assigned as the reference order in the order type.

Creating a Model Order

To create a new model order go to transaction KOM1 or go to IMG -> Controlling -> Internal Orders -> Order Master Data -> Screen
Layout -> Define Model Orders.

Here you can select the default fields that will be transferred automatically to the new orders

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You can also select the currency of the model orders. Notice that the order is created with order category 3 - Model Order
(Controlling)

Assign Model Order To An Order Type

To assign a model order to an order type go to transaction KOT2 or KOT2_OPA and update the field 'Model Order' with the model
order that you have created.

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Transaction KOT2

When you create new orders in KO01 with order types that contains a model order all the fields active in the relevant order type are
copied from the model order to the new order.

Order Groups
Overview

Order groups are freely-defined classifications of orders for evaluation purposes or for definition of generally valid
rules.

As in Cost Center Accounting, you can place overhead orders in hierarchical groups. You can set up a structure using as many
levels as required. Order groups are useful for planning and settling costs, calculating overhead, and creating reports for any given
combination of orders you define.

Unlike cost center groups however, order groups are client-dependent. This means that you can use an order group name only
once. You cannot use the same group name to create different group structures in different controlling areas. However, you can
assign orders from any controlling area to an order group.

The Create group with reference function allows you to copy a group structure to a new group. The highest level group name is
created physically, and the hierarchy below this group is the same as the reference hierarchy. You can then modify this new group
as required.

Order group maintenance also includes the Copy group with suffix function. You can copy an existing hierarchy and add a suffix to
its groups to create an historical view of the group structure. You can then freeze the hierarchy with the suffix and make changes to
the current hierarchy to reflect your new grouping requirements.

You can assign an order to multiple groups, but there is no standard hierarchy If you create or change groups of internal orders,
then you can also assign a selection variant to an end node. This provides you with a dynamic group, in which the contents can
change. The system performance is better for groups if they do not have selection variants.

Real and Statistical Orders

Purpose

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This content was created to clarify the use of statistical and real orders in CO-OM.

Overview

You can use overhead cost orders to conduct detailed controlling for a particular object or activity. All costs concerning this object
or activity are assigned to the relevant order. When you create an overhead order master record, you choose whether to create it as
a real order or a statistical order.

Identifier for statistical order - Transaction KO03 (picture). Determines whether an order is statistical (for information only).

Real Orders

In the primary cost posting, the costs are updated to the real order. In the periodic process of order settlement, you allocate the
actual costs to controlling objects. You can settle portions of the order costs to many objects.
When you create a real order, you must assign the order to a company code. If you have selected business area balance sheets in
Financial Accounting, you must also assign the order to a business area.

Statistical Orders

You use the statistical order to evaluate costs which cannot be itemized in detail in cost element or cost center accounting. You
achieve this by assigning the costs to both the statistical order and the cost center.
You immediately see the costs in the order (statistical, for information purposes only) and the cost center (real costs). The cost
center to be posted can be stored in the order master data. The system then finds the cost center automatically. Otherwise, you
must specify the cost center as well as the order to complete the posting document. You also have the option on a statistical order
whether to record a company code and a business area on the order master record.

If you make these assignments, you can only post transactions to controlling objects, such as cost centers, which belong to the
same company code and business area. For cross-company code or cross-business area controlling, do not assign a company
code or business area on the statistical order.

You can neither settle statistical orders nor apply overhead to them.

You can change the indicator in the order, as long as :

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- The order was not posted to
- You have not yet created a settlement rule for the order.

The statistical values (value type = "11") cannot be allocated in CO. They are used only for documentation purposes in reporting. It
can be useful, for example, to simultaneously display the costs for a trade fair order statistically on the responsible cost center. We
refer to statistical CO-objects (for example, a statistical order) when a CO object can only carry values statistically.
Technically speaking, a statistical posting means that the system writes database records with value type "11". Actual postings
have value type "04".

Related SAP Notes/KBAs

SAP Note 106968 : FAQ: Account Assignment Logic

SAP Note 101051 : FAQ: Posting to CCenters and Non-Statistical Orders

How to modify actual posted cost center into statistical Internal Order master data
Overview

This page will guide you through the process of changing the actual posted cost center (field COAS-CYCLE) of a statistical order
master data even even if postings already exist.

Background information

If an internal order was flagged as statistical a cost center in field Actual posted CCtr COAS-CYCLE (tab "assignment") can be filled
which will be the real CO accounting assignment object.

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If a posting took place against the internal order, the filed Actual posted CCtr is greyed out and it is not changeable. This is the
standard behavior.

How to open for changes the field COAS-CYCLE

First of all it is necessary to deactivate error message KI337 into transaction OBA5

Then, implement correction code from note 198036.

This can be done easily via SNOTE.

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Now the field is not greyed out anymore and it is open for changes even if postings took place against the order

Complementary note: 198036 Info: Cost center actually posted to is not changeable

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Useful BAPIs for Internal Order

You can use below BAPIs to create/change/display an internal orders and internal order groups

BAPIs for internal orders

Create BAPI_INTERNALORDER_CREATE

Get detail BAPI_INTERNALORDER_GETDETAIL

Get list BAPI_INTERNALORDER_GETLIST

BAPIs for internal order groups

Create BAPI_INTERNALORDRGRP_CREATE

Get detail BAPI_INTERNALORDRGRP_GETDETAIL

Get list BAPI_INTERNALORDRGRP_GETLIST

Frequent Issues: Changing Currency on Internal Order or Receiving Error KO288

At the change of the order currency the following system message may be issued: KO288: "Order currency is different from
company currency".

The long text of error message KO288 states: " In controlling area xxxx the company currency and the controlling area currency
may differ. As a result, the order currency must always be the same as the company currency. "

Explanation:

What this message basically refers to is a particular customizing setting: Please call up transaction 'SPRO', press 'SAP Reference
IMG' and follow path:

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-> Controlling
-> General Controlling
-> Organization
-> Maintain Controlling Area (Execute),
-> Double click on 'Maintain Controlling Area'.

Double click on affected CO area and have a look at indicator 'Diff. CCode currency': If this indicator is flagged, company codes
assigned to this CO area may have a currency different to the CO area currency. Regardless of whether this is actually the case for
a particular company code or not, this means that object currencies must always be equal to the respective company code
currencies - this can cause error KO288 even though company code currency and CO area currency are the same.

The only way to avoid this is to unflag the 'Diff. CCode currency' indicator (which, however, is no longer possible if there already
exists some relevant postings). Deviating currencies are no problem if nothing has been posted on the order. Therefore the check
does not happen if the order carries no cost. If something is posted on the order, order and company code currency should be
identical. If this is not the case, error message appears (if Note 380840 has been implemented). The error indicates that an entry
of the master data to be saved is wrong, independent if this entry has been changed before.

Each object in Controlling, such as cost center or internal order, may use a separate currency specified in it's master data. When
you create an object in CO, the SAP system defaults the currency of the company code to which the object is assigned as the
object currency. You can specify a different object currency only if the controlling area currency is the same as the company code
currency (one Company Code and one Controlling Area).

The message KO288 wants you to change the object currency to the company currency. If your company has more than one
company code assigned to the controlling area, which would make it a cross-company code. The controlling area and the company
codes may differ for the cost accounting that is cross-company code. But for any object currency for cross-company codes you
can only choose that of the assigned company codes currency.

If the order is statistical, the currency of the company code and the order do not have to be equal but can deviate. Thus the field
currency can be filled as you like and is not checked to be equal with the company code currency.

Helpful Notes:

Note: 380840 Statistical order: company code can be changed

Budget and Availability Control

Purpose

This content was created to clarify the customizing of the budget management and availability control of internal orders.

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Overview

The budget is the approved cost structure for an order and the availability control allows you to monitor and check costs against
budget. It enables checks that trigger error or warning messages or mails to responsible persons in case that costs are exceeding
the budget in a previously defined way.

Budget

To Create a budget for an order you must assign it to a budget profile. Each Internal order has an order type, and in the order type
(KOT2) you can find the budget profile of the order. You can also use transaction KOAB to assign the budget profile to the order
type.
The customizing of the budget profile is made in transaction OKOB.

Transaction KOT2

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Transaction OKOB

In OKOB you can specify the Activation type of the availability control :

0 = Cannot be activated
1 = Automatic activation during budget allocation
2 = Background activation when usage exceeded

You set "Overall" to AVC check against the overall budget values, otherwise the budget check will be performed based on the
annual budget.
If both overall and annual budget exist, the annual budget is the part of the overall budget that was assigned to particular years,
the total of the annual budgets is less or equal to the overall budget.

The current budget of an order consists of several types of budget:

- Original budget (transaction KO22)

- Supplements (transaciton KO24)
- Returns (transaction KO26)
- Carried forward budget (transaction KOCO)

Status

The following status are updated in the internal order status and used in combination with budgets/availability control :

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- BUDG: budgeted
- AVAC: availability control active
- ISBD: insufficient budget

Budget Carryforward

Transaction KOCO allows you to transfer unused funds to the next fiscal year for annual budget. If the order has the status
complete or flagged for deletion you are not allowed to execute this function.
Commitments are not part of these funds, you need to use the function carry forward commitments in this case (KOCF).

Availability Control

The Availability control will check assigned values vs. current budget. Assigned values are Actuals + Commitments. When
availability control is called, first the value of the transaction is added to the assigned value of the object which carries the budget.
Then the object which carries the budget is checked to see if the new assigned value is lower than the value which can be
assigned.

Availability control will trigger errors, warnings or mails to responsible persons according to the tolerance limit settings in
customizing.
The tolerance works per Controlling area and budget profile.

The Menu Path is SPRO -> IMG -> Controlling -> Internal Orders -> Budgeting and Availability Control -> Define Tolerance Limits
for Availability Control.

Tolerance limits can be defined for all business transaction groups ++ or for each business transaction group

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In case the assigned values reaches the usage rate, the following actions can be the consequence :

Important Information

If action 2 (warning with mail) should take place and the system cannot find the budget manager because it is not well
customized, action 3 (error) takes place. Check transaction OK14
In lists/reports warnings are always turned into errors. For example RKANBU01 never provides a warning when reassigning
commitments, there is no interaction with the viewer
In batch-input warnings are not given at all. The document is posted without warning
Doing down payments availability control does not take place (this is correct since commitments are not reduced when
down payments are posted)
If you 'park documents' in FI the availability control is not called. The transaction 'post parked documents' is doing a batch-
input. Therefore warning are not sent
In the process of creating a purchase order from a purchase requisition -> purchase order availability control is called only
when the value of the purchase order is higher than the value of the purchase requisition
Due to technical reasons availability control is not possible when doing a goods receipt (Note 46209 ). Note 696362
provides a workaround.
Credits from settlements on an order, network or WBS-element are considered only if the sender is settled to orders,
networks or WBS-elements. Debits from settlements are always taken into account. It depends on the receiver, whether the
receiver carries a budget itself.
After changes to the budget profile, which affect availability control, you should always reconstruct availability control as
the values are not updated automatically (KO31).
Changes in the activation type of the budget profile only show an effect if afterwards the budget is either changed or
checked or if you reconstruct availability control.

Related SAP Notes/KBAs

SAP Note 166394 : Tolerance limits of active availability control

SAP Note 628978 : Business transaction groups of active availability control
SAP Note 46209 : No availability control for goods receipts
SAP Note 696362 : Exit: Availability control for valuated goods receipts
SAP Note 178837 : Availability control: incorrect assigned value?

Budget and Availability Control

Customizing for budgeting
How to set up warning with MAIL in availability control
AVC assigned values are Wrong
How to debug Availability Control

Customizing for budgeting

Customizing for budgeting

The budget profile is a basic setting for budgeting and availability control.

Procedure to set up/change the budget profile:

1. Access the activity using one of the following navigation options or transaction:

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Transaction OKOB
Code

IMG Menu Controlling -> Internal Orders -> Budgeting and Availability Control -> Maintain Budget Profile -> Maintain Budget
Profile

2. Maintain the budget and availability control related settings as required

Maintaining Number Ranges for Budgeting

Define the number range for budget postings (e.g. transaction KO22).

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Procedure

1. Access the activity by the following navigation or transaction code:

Transaction OK11
Code

IMG Menu Controlling -> Internal Orders -> Budgeting and Availability Control -> Maintain Budget Profile -> Maintain Number
Ranges for Budgeting

Define Tolerance Limits for Availability Control

Defining the Tolerance Limits for availability control.

Procedure

1. Access the activity by the following navigation:

Transaction SPRO
Code

IMG Menu Controlling -> Internal Orders -> Budgeting and Availability Control -> Define Tolerance Limits for Availability
Control

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2. Enter COAr, Profile, TrGrp and Usage

3. Choose Action:

Specify Exempt Cost Elements from Availability Control

To define cost elements that exempted from Availability Control.

Procedure

1. Access the activity using one of the following navigation options:

Transaction
OPTK
Code

IMG Controlling -> Internal Orders ->

Menu Budgeting and Availability
Control -> Specify Exempt Cost
Elements from Availability
Control

2. Execute the transaction

Maintain Budget Manager

The budget manager is the SAP user who will receive the email when specified tolerance levels are reached.

Procedure

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1. Access the activity using one of the following navigation options:

Transaction Code OK14

IMG Menu Controlling -> Internal Orders-> Budgeting and Availability Control -> Specify Maintain Budget Manager

2. Select New entries and enter:

Maintain budget profile in transaction KOT2

The budget profile cannot be maintained directly in the order master data but has to be maintained in the order type. The budget
profile of the order will be derived from the order type.

Activate the Availability Control

To effect the setup and availability control.

Procedure

Transaction Code KO31

IMG Menu Controlling à Internal Orders à Budgeting and Availability Control àSetup Availability Control Again

1. Execute the transaction.

2. Enter Order Type, Order and Budget Profile

How to set up warning with MAIL in availability control

Purpose

This content was created to clarify the customizing of the "warning with mail" action in availability control.

Overview

You expect to receive a warning message and an email from the availability check depending on a specific tolerance limit. This
should help to keep control of costs and have the budget manager notified in case the limit which has been set in the tolerance
limit customizing is exceeded by email. This expert content article will provide a full overview of the logic involved.

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Availability Control Customizing - How to set up the tolerance limit and budget manager

In customizing run "define tolerance limits for availability control" (IMG path: Controlling → Internal Orders → Budgeting and
Availability Control → Define Tolerance Limits for Availability Control)

In this IMG activity, you define the tolerance limits for availability control. When these tolerances are reached, you can have the
system trigger specific actions (1 - warning, 2 - warning with mail, 3 - error message).

In the above example action 2 means warning with mail to person responsible. So if more than 105% of available budget is
exceeded the system will provide the user with a warning message (BP603, BP604 or similar) and send an email to the budget
manager .

Follow this path to the IMG activity "Maintain budget manager":

For orders the budget manage is maintained for the combination COArea, order type, object class.

Related SAP Notes/KBAs

SAP Note 93486: Avail.control: E messg instead of W messg with mail

AVC assigned values are Wrong

Purpose

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Customers claim that AVC assigned values are wrong. This wiki is intended to explain how to check if the AVC assigned values are
wrong or not and if the AVC assigned values are wrong how to solve it.

Overview

Customer claim that AVC assigned values are wrong in T-code:CJ31.

How to check the AVC assigned value

Check composition of assigned value via auxiliary programs

Use BPFCTRA0 for projects

Use BPFCTRA1 for orders

Use OK-code =SUM on the result list respectively to check weather current assigned values are really wrong or not.

Solution

If AVC assigned values are really wrong, reconstruct AVC assigned values using T-code: CJBN for projects and T-code: KO31 for
orders.

Related SAP Notes/KBAs

SAP Note 178837

SAP Note 392730

SAP Note 196149

How to debug Availability Control

Purpose

Users sometimes face the budget exceed error message BP603 or BP604 when posting to order or WBS element. The purpose of
this WIKI is to explain how to debug Availability Control and why the error occurs.

Overview

Users sometimes face the budget exceed error message BP603 or BP604 when posting to order or WBS element. Here is the
breakpoints that can be used in debugging.

Go to T-code: SE80->Function group „BPFC“

Call Stack Flow in DEBUGGING:

BP_CHECK_FUNDS: T_BPVC, field „WKGBTR“ ->what is handed over to Availability Control? also have a look into internal table
XBPVC

CHECK_ALL_FUNDS: TBPJA ->all postings are being cumulated for final check (field WLJHR)

CHECK_BUDGET_CO: preparation of messages (warning or error)

CHECK_FUNDS: all data is being cumulated and handed over to ->BP_GIVE_MESSAGE ->delivery of budget message to
dynpro
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POST_ITEMS: This breakpoint may help to prevent undesired updates - it can act as a "safety net". When debugging the budget
availability control process, this breakpoint can be se and if reached, the user may reset the debugging to prevent postings.

Internal Order Actual and Commitment Postings

This page is to be used to collect all information related to Internal Order Actual Posting

Actual and Commitment Postings

Creating Purchase Order Commitments
How the value based commitment and quantity based commitment works in MM
Reducing Purchase Order Commitments to Zero

Creating Purchase Order Commitments

Usage

The system derives purchase order commitments from the order value. It is the value of goods ordered, but for which no actual
costs have yet been incurred. The following purchase order data affects the creation and reduction of purchase order
commitments:

• The purchase order value

• Delivery date

• Account assignment

Prerequisites

For this data transfer to take place from Purchasing, the purchase order must be assigned to an order, a cost center, or a project.
For these objects the commitment management needs to be active with no locks for commitments set.

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Features

The system uses the following to create purchase order commitments:

• Individual purchase order

As well as an accurate description of what is ordered, individual purchase orders specify what is to be ordered, and a deadline for
the delivery of the material or the service.

• Releases for outline agreements

There is no specific date for a confirmed purchase order. You determine the date when you execute the release for a delivery.

You create commitments using the expected delivery date, not the date the purchase order was created.

Delivery Costs

A purchase order commitment includes anticipated delivery costs. These costs are managed separately by the system. They are
displayed individually according to origin (for example, freight costs, duty costs, packaging). This distinction between the delivery
costs and the purchase order itself ensures that you can clearly display the different currencies in which the individual cost
components are incurred.

Multiple Account Assignment

In the Purchasing component, you can assign a purchase order item to several account assignment objects (for example, you can
distribute the costs for an item to several orders or cost centers). The system updates the purchase order commitment on the
corresponding account assignment objects accordingly. For more information on specifying a multiple account assignment, see
SAP Library under Logistics → Materials Management → Purchasing → Purchase Orders → Account Assignment →Specifying
Multiple Account Assignment.

Reassignment

You can change the account assignment for a purchase order item so that, for example, the costs are assigned to an item on order
2 instead of order 1. You can only do this if no actual costs have yet been incurred. Therefore, no goods receipt or invoice receipt
may already have occurred. The system displays the purchase order commitment on the new account assignment object.

How the value based commitment and quantity based commitment works in MM
How to know the commitment is value based or quantity based ：
Commitment in PR/PO either

Value based or
Quantity based

How to know it is value based or quantity based:

1. Go to T-code: ME53 (N)/ME23 (N) and check the unit posted.

2. Go to T-code: SE16, input table T006=>Field “KZWOB”=>If “KZWOB”= “X”, then the commitment is value based, otherwise
it is quantity based. You can see the same information by using transaciton CUNI for the relevant unit of measure.

The difference between value based commitment and quantity based commitment:

The main difference between the two scenarios is how the commitment will be reduced.

The commitment reduction will be done based on received/invoiced quantity or the value of the goods receipt/invoice:

Example:

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Commitment 100 EUR commitment 100 Units

Goods receipt 50 EUR Goods receipt 50 Units

Still open commitment 50 EUR commitment 50 Units

The reduction for the quantity based commitment is calculated as the following formula:

Units * price per Unit = value of Goods receipt/invoice

The result is the value which the commitment should be reduced.

Reducing Purchase Order Commitments to Zero

Overview

The system reduces purchase order commitments to zero according to goods or invoice receipts and converts them into actual
costs. If the quantity in the goods receipt or invoice should determine the reduction of a purchase order commitment to zero, you
need quantity-based commitment management. If values for purchase orders, goods to be delivered, and invoices are to
determine the reduction of a purchase order commitment, then you need value-based commitment management. To set up value-
based commitment management per unit of measurement, make sure that the value based commitment is set for the unit of
measure (transaction CUNI). If the value based indicator is not set, the commitment is quantity based.

When the Commitment is Reduced

The goods receipt indicator in the purchase order determines when the commitment is reduced and actual costs are set up (that
is, in the detail screen for the purchase order item). GR indicator set: Commitment is reduced when goods are received (or service
entries are posted for service POs). GR Indicator is not set or the non valuated goods receipt indicator is set: Commitment is
reduced when invoices are received.

Reducing Commitments to Zero

You can reduce the purchase order commitment proportionally. To do this, you need to enter a goods receipt or invoice receipt for
a purchase order. The system reduces purchase order commitments completely:

If you indicate the business transaction as closed, with a goods receipt for a purchase order item. It could be that the total
quantity for a purchase order item has not been delivered, but you expect no further deliveries. In this case, you must set
the “Delivery completed” indicator when you post the goods receipt.
If you indicate the business transaction as closed, with an invoice receipt for a purchase order item. When you post the
invoice, you can set the indicator in the purchase order item to indicate that you do not expect any more incoming invoices
→ Final Invoice Indicator.
If you lock a purchase order item to prevent goods receipt for that item. This is possible providing no goods or invoices have
been received.
If you delete a purchase order item. The purchase order item is marked for deletion but initially stays inactive in the system.
You can only delete completed purchase order items (for example, there can be no deliveries or invoices outstanding, either
for the quantity ordered or for the quantity which appears in the invoice).

Internal Order Period-End Closing

This page is to be used to collect all information related to Internal Order Period-End Closing

Internal Order - Period End Closing

Internal Order Settlement
Overhead Calculation - Functional Area Derivation

Internal Order Settlement

Purpose
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This content was created to clarify the customizing of settlement of internal orders.

Overview

All the costs of an internal order can be allocated to one or more receivers, this can be done for individual orders (KO88) or a
collective group of orders (KO8G).
Reason: Analysis of costs for one job (Example: marketing campaign, production order), settlement serves to post the costs from
the job to the responsible objects.
Statistical orders cannot be settled.

Settlement Customizing

To create a settlement rule you must define a settlement profile and assign it to the order type (KOT2). Each Internal order must
be assigned to an order type.

Transaction KO03

Transaction KOT2

In the settlement profile you define parameters such as receivers, valid receivers and default values. You can check the settlement
profile in transaction OKO7.

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The settlement profile which is set in the order type will be used by default however, can be changed in the individual orders in the
settlement parameters.

Distribution Rules

To create the rules you can go to KO02, enter the order and then click on settlement rule.

Each line of the distribution rule specifies the percentage, equivalence number or amount of the orders costs to be settled to a
particular receiver. You can't create a rule containing both an amount as well as an equivalence number or a percentage,
if you need to change or delete a rule you need to reverse all the settlements that used this rule.

There is two settlement types :

- PER : Settles the cost of the period specified

- FUL : Settles all the costs of the sender object until the period specified

Double-click on the line to check all the valid receivers, to maintain the valid receivers go to transaction OKO7.

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You can use valid-from and valid-to periods to limit the validity of a distribution rule. After you save it the system status of the
order will have SETC status.

Allocation Structure

The Allocation structure allows you to define which cost elements should be settled using a settlement cost element or the original
cost element.

- Settlement Assignment

- Source : You can specify a range of cost elements or a cost element group for a settlement assignment in transaction OKO6. If
you execute a settlement and the sender object contains a cost element that is not on the source of any assignment you will
receive error KD503 (Complete allocation structure).

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- Settlement Cost Element : Each settlement cost element must belong to one of the following categories:
-> Internal settlement: Cost element category 21 (secondary).
-> External settlement: Cost element category 22 (primary).

The Receiver category specifies the object type for the settlement receiver.

Flow Trace

To analyze a settlement you can use the tool Flow Trace. To active it go to KO88/KO8G, Extras -> Activate Flow trace.

This will show exactly what’s happening in the settlement :

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- Settlement Profile
- Allocation Structure
- Distribution Rule
- Costs/revenues read-
- Distribute costs/revenues to the receivers

Main Tables

COBRA : Settlement Rule for Order Settlement (settlement parameters)

COBRB : Settlement Rules (distribution rules)
Settlement document related tables:
- AUAK Settlement document header
- AUAV Settlement transactions
- AUAA Sender and receivers
- AUAS Settled costs

COSS, COSP, COSL, COSB : costs posted to the object

COEP : Lines items posted to the object
COSSD, COSPD, COSLD, COSBD, COEPD : Settled Amount
JEST, JCDS : System status and change documents

Related SAP Notes/KBA

SAP Note 173909 : info. Costs should not be settled

SAP Note 193586 : Analysis program for settlement (rka_settle_tables_compare)

Error KD557 During Settlement

Purpose

This content was created to clarify the resolution of error KD557 during settlement.

Overview

The error KD557 is given if the internal settlement document contains too many entries. The number of internal document lines
must not be more than 99999. The number of entries depends on the following items (A combination can increase the number of
entries extremely.)

- Number of line items to be settled

- Number of AUC's of an investment measure (if a source structure is used in the WBS element)
- Number of receivers in the settlement rules
- Partly capitalization (less than 100 %)

How to fix it?

In order to post the settlement check the following solution:

If very much line-items of a WBS element are settled, please try to select only a part of the line-items for the final settlement and
carry out several settlements manually (with transaction KO88).

Review the solution number 3 of note 111187:

- The sender is a capital investment measure with line-item settlement and a large number of posted line items which are activated
simultaneously for several receivers, for example, completed assets.
- If the error occurs for the settlement of an investment measure with line item settlement and many receivers are entered in the
default settlement rule, then be aware that the default settlement rule is applied to every CO line item to be settled (that means

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the number line items in the internal settlement document = the number CO line items to be settled x the number of distribution
rules). In this case, use the line item distribution with transaction KOB5 or CJIC/CJ70 instead of the default settlement rule:
- Assign a settlement rule for one receiver or a few receivers for every CO line item to be settled
- Or carry out several settlements by settling only some of the CO line items for every settlement: assign a settlement rule to
some CO line items, carry out the settlement and repeat
these two steps.

Note 32379 also describes that you should always check whether line item settlement makes sense at all in your case. If required,
use

- Investment measures with summary settlement or

- Assets under construction without line item settlement, which you can capitalize by simple transfer, or
- Offsetting using a G/L account.

In addition, Note 612929 describes a field enhancement to avoid KD557, the change in this note affects all settlement procedures
including collectors, but also production orders, internal orders and projects.

Related SAP Notes/KBAs

SAP Note 400506 : Termination in settlement of product cost collector

SAP Note 718873 : PCC settlement: Document overflow with error KD557
SAP Note 649540 : CO docs not updated during settlement w/ CO
SAP Note 612641 : PCC settlement: Error F5727
SAP Note 32379 : AIBU:Sttlemt rsults in DBIF_RTAB_NO_MEMORY/ AW601
SAP Note 111187 : DBIF_RSQL_NO_MEMORY when accessing table AUAS
SAP Note 612929 : PCC settlement: Extending seq nos of settlement document

Transaction Currency During Settlement

Purpose

This content was created to clarify how the transaction currency is handled during settlement.

Overview

During the settlement, all currencies are credited for the settlement sender (Controlling area, Object and transaction currency).
For transaction currency (that may be different in every posting) an interim balance is created for each transaction currency.

Transaction currency during settlement

The actual costs are selected from database tables COSP and COSS. The totals are calculated for each transaction currency and
then posted.

Transaction currency with results analysis

The transaction currency is never updated in results analysis. The settlement of results analysis data selects the RA data which is
posted in database table COSB (CO Object: Total Variances/Results Analyses).
There is no information about the transaction currency in this moment. When the follow up CO document is created, settlement
has no information about how the amount in CO area currency which has to be settled was originally split up in different
transaction currency postings.
The transaction currency cannot be determined and is not updated when RA data is settled.

Related SAP Notes/KBA

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SAP Note 201445 : Info: Currency translations in settlement

Overhead Calculation - Functional Area Derivation

Purpose

This content was created to clarify how the functional area is derived on overhead calculation.

Overview

The functional area is not derived on the debit side of the surcharge calculation, but instead the functional area of the debit
posting (base) of the surcharge calculation is kept and written into the document of surcharge calculation on the debit side. On
the credit side the functional area
is derived again and taken from the customizing entry.

Explanation Of The Derivation

The document which is written by the surcharge calculation requires the same functional area than the debit posting. The reason
is that subsequent surcharge calculations read the debit data of the whole period, calculate the surcharge and subtract the
previously posted
surcharges of the same period - which are read from the database - from the amount of the current surcharge calculation.
Therefore the posted surcharge document must not be changed regarding the 'organizational data' (e.g. functional area, company
code, business area) in comparison to the debit posting.

Thus within the surcharge calculation the change of these data via exits or substitutions are not possible, otherwise the surcharge
calculation does not work the second time it is done in the same period. There is no possibility to change the functional area within
the surcharge calculation.

Reporting
Overview

Overhead cost controlling consists of the following tasks:

Planning
Allocation
Control
Monitoring of overhead costs

All overhead costs are assigned to the cost centers where they were incurred, or to the jobs that triggered them. The system
provides you with a comprehensive set of functions to enable you to allocate overhead costs according to source.

At the end of the period, you can compare the planned costs and their corresponding actual costs. You can make a source-based
analysis of the resulting target/actual variances and use the analyses for further managerial accounting measures within
Controlling. You can also compare two sets of actual data from different periods to analyze cost development over a period of time.

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Cost Center Reporting
Reporting - Totals Values and Line Items
Reporting - Variation
Reporting in Object Currency
Default value for Maximum No. of Hits in T-Code: KSB1

Reporting - Totals Values and Line Items

Overview

In the R/3 System, a distinction is made between line items and totals records. These are recorded in separate database tables.

A line item is entered for each business transaction. You can access these line items using the line item report.

For reporting, all the line items entered for business transactions are automatically stored in totals records. The amounts are
totaled in the R/3 System based on the cost center/cost element or cost center/cost element/activity type and enables data to be
evaluated more quickly. You can analyze the totals records using a Report Painter/Report Writer report.

Normally, you would analyze a cost center using a Report Painter report. If you require detailed information for particular cost
elements posted to the cost center, you can call up the corresponding line items.

The line item report displays the actual costs, plan costs, or commitments as line items and based on the posting documents. This
information is displayed as a list (ABAP list display).

Example: In FI, personnel costs for an external repair firm were posted twice within the same month.

Line item 1: 420000 Personnel costs 5,000 Manu.cost ctr 07/2003

Line item 2: 420000 Personnel costs 3,500 Manu.cost ctr 07/2003

Totals record: 420000 Personnel costs 8,500 Manu.cost ctr 07/2003

Reporting - Variation
Overview

The variation function enables you to select a separate report for each element of a group that was generated during a selection
run. This function is especially useful when creating a report in the background from a cost center group, if you want to be able to
switch between cost center reports at the same time.

The variation function can only be used if you have activated it in the report definition.

In the dialog box for the variation, you specify which nodes and/or cost centers are to be output. You can choose one of three
options for this indicator:

Expand displays reports for all cost centers and all nodes belonging to the selected group.
Do not expand displays only one report for the highest node of the selected group.
Single values displays only reports for the cost centers belonging to the selected group.

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You can save reports for cost center groups as extracts with activated variation. When you come to analyze your extracts for the
group, you can then access reports for the individual cost centers

Reporting in Object Currency

Reports like for example S_ALR_87005133, S_ALR_87013018, S_ALR_87013019 do not take the RPO0/RPC0 settings into
account.

Reason and explanation:

These reports are based on reporting table "RWCOOM". The special design of this reporting table is that it does not use the so
called "report currency" as you may be used to from reports which were created on basis of reporting table "CCSS". As a
consequence this "report currency" cannot be used in reports using RWCOOM.

If you check the report definition of the report concerned e.g.. S_ALR_87013019 in GRR3 (library 6O2, report 6OBU-001) You see
that the characteristic "currency type" with value "20" is used in the general data selection. This leads to the behavior of the
system always to display the values in controlling area currency. Even if you set RPO0 to a different currency this has no influence
as the report definition in this case is "hard coded".

Workaround:

In order now to have the values displayed in another currency (such as object currency) please copy this report into custom space
and change the general data selection on characteristic "currency type" from "20" to "10". Afterwards You should be able to
display the values in object currency.

Example for having Report S_ALR_87013019 show in Object Currency:

First you will need to copy the original Report which can be found in Library 602 - Report 6OBU-001

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You copy the standard reports by right clicking and selecting the option 'Create'

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You will receive the following pop-up screen when you click create:

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You need to change the Report Name to a custom name such as ZOBU-001 for this example:

When the custom report has been created then you goto menu option 'Edit > Gen. Data Selection:

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You will receive the following popup screen where you will see the standard currency setting '20'

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 3/14/25, 2:40 PM

Now all that is left to do is to change this currency values from '20' to '10':

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Then click 'confirm' button and save the report. Now when you run the custom report you will see the report shows in object
currency. If not you may need to regenerate the report group via transaction GR55 via the red and white circle button.

Other Resources of information on this topic:

SAP Note: 176667 Info Systems CO-OM: Default settings do not work

SAP Note: 121300 CO-OM Reports: Freely selectable Currency (euro)

Default value for Maximum No. of Hits in T-Code: KSB1

Purpose

The purpose of this page is to clarify the understanding of the system logic and requirements in relation to Default value for
"Maximum No. of Hits" in T-Code: KSB1.

Overview

Execute t-code: KSB1, sometimes if there a more than 5000 records for the selection, you will get the information message kB203
- Selection canceled after 5000 data records.
This is a system restriction or not? How to change the hits list?

Why default 5000?

5000 is hard coded in the system program like below, there is no standard way to change the value except customer modification.

Include RKAEPSCM

[...]

*PARAMETERS: showall TYPE c as checkbox.

PARAMETERS: p_fixvar LIKE kaep_sett-fixvar NO-DISPLAY,

* COGM 1671025

p_nozero LIKE kaep_sett-shownozero NO-DISPLAY

DEFAULT 'X',

p_maxsel LIKE kaep_sett-maxsel NO-DISPLAY

DEFAULT 5000.

[...]

How to change the value 5000

Execute KSB1, there is a button "More setting" in the selection screen, click it and then user can change the value in field
"Maximum No. of hits" like below:

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Cost Object Controlling (CO-PC-OBJ)

WELCOME TO THE COST OBJECT CONTROLLING EXPERT CONTENT PAGE

What is Cost Object Controlling

Product Cost by Order enables you to analyze costs at production lot level. You can use it for make-to-stock production and sales
order-related production. In sales order-related production, you can use Product Cost by Order for sales order-related mass
production and as a supplement to Product Cost by Sales Order.

In Product Cost by Sales Order, you use manufacturing orders (production orders or process orders) as cost objects. The costs
that are updated on the manufacturing order are analyzed by lot and then settled. This means that variances of the cost analysis
are only determined once the whole quantity that was planned for production has been delivered to the warehouse.

Cost Object Controlling - CO-PC-OBJ

Troubleshooting guide CO-PC-OBJ
Make to Order Scenario (Sales Order Stock)
Product Cost by Order Scenario
Periodic Scenario
WIP / Results Analysis
Variance Calculation
Settlement Explanation
Overhead Calculation
Performance Analysis and Optimization in period end closing
BAdIs / Customer Enhancements
Miscellaneous
Supportability Tools CO-PC-OBJ
General Documentation - CO-PC-OBJ
Frequently asked questions - CO-PC-OBJ
FAQ in Actual Settlement
FAQ in WIP - Results Analysis

Access SAP For Me Visit the SAP Community View Product Documentation

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Hot news
2364341 - OBJ period end closing
performance optimization at a glance
2397593 - How to settle costs from
previous year (cross-year
settlement)?
3129802 - Incorrect currency
translation during settlement of
results analysis data?
3143020 - CO88: Error CK122 in
S/4HANA system

Troubleshooting guide CO-PC-OBJ

Make to Order Scenario (Sales Order Stock)
Product Cost by Order Scenario
Periodic Scenario
WIP / Results Analysis
Variance Calculation
Settlement Explanation
Overhead Calculation
Performance Analysis and Optimization in period end closing
BAdIs / Customer Enhancements
Miscellaneous

Make to Order Scenario (Sales Order Stock)

MTO Scenarios & Determining Requirements Type

MTO Scenarios & Determining Requirements Type

1. Technical view on tables and indicators
1. 1 Indicators
1.2 Common combination possibilities of these indicators
1.3 Tables
2. MTO scenarios
2.1 Valuated Sales Order Stock Without Product Cost by Sales Order
2.1.1 Valuated Sales Order Stocks: Separate Valuation of Sales Order
Stocks
2.1.1.1. Assembly Processing
2.1.1.2. Transfer of Sales Order Cost Estimate into SD Condition
Type
2.1.2. Valuation of Sales Order Stocks in Material Master Record
2.2. Valuated Sales Order Stock With Product Cost by Sales Order
2.3. Non-valuated Sales Order Stock with Product Cost by Sales Order
3. Determining the Requirements Type
3.1 The Significance of the Requirements Type
3.2 Determining the Requirements Type
3.2.1 How do I enter the settings so that the requirements type is
determined based on material or business process?
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3.2.1.1 How is the requirements type determined based on the

business process?
3.2.1.2 How is the requirements type determined based on the
material?
3.2.2 Which requirements types can be used in the sales order item?
3.2.3 How is the item category determined?

1. Technical view on tables and indicators

This document provides important indicators and tables within the make to order scenario. This document does not handle all
characteristics of each indicator but the relevant ones in relation to this context.

1. 1 Indicators

Indicator Indicator name Characteristic Meaning Defined in

SOBKZ Special Stock E Sales order stock Account Assignment

Indicator Category

blank No special stock Account Assignment

Category

KZBWS Valuation of M Separate valuation with reference to sales document Requirements class
Special Stock (table EBEW)

A Valuation without reference to sales document (table Requirements class

MBEW)

blank No stock valuation (unvaluated stock) Requirements class

KZVBR Consumption Posting E Update of costs and revenues on the sales order item Account Assignment
(CO object) Category

blank No update of costs and revenues on the sales order Account Assignment
item (no CO object) Category

These indicators are combined with each other for the different make to order scenarios.

1.2 Common combination possibilities of these indicators

SOBKZ "E" + KZBWS "M" + KZVBR "blank" = valuated sales order stock with valuation in table EBEW without sales order
Controlling

SOBKZ "E" + KZBWS "M" + KZVBR "E" = valuated sales order stock with valuation in EBEW with sales order Controlling

SOBKZ "E" + KZBWS "blank" + KZVBR "E" = unvaluated sales order stock with sales order Controlling

SOBKZ „E“ + KZBWS „blank“ + KZVBR „blank“ = unvaluated sales order stock without sales order Controlling -> NOT
SUPPORTED BY SAP

1.3 Tables

table content

EBEW Contains the total sales order stock in case KZBWS = M

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MBEW Contains the total valuated stock of the anonymous warehouse and the valuated sales order stock in case KZBWS = A

VBAP Contains information of the sales order item like SOBKZ, KZBWS, KZVBR

2. MTO scenarios

The following contains a brief summary of the Customizing settings to be made for each scenario.

2.1 Valuated Sales Order Stock Without Product Cost by Sales Order

In sales-order-related production, it is not always necessary to update costs and revenues on sales order items. However, you must
use a valuated sales order stock if you don't collect costs and revenues on sales order items.

2.1.1 Valuated Sales Order Stocks: Separate Valuation of Sales Order Stocks

The quantities for sales order stocks are normally recorded separately from the values.
Make the following Customizing settings:

1. Use a requirements class for which the Valuation indicator (technical designation: KZBWS) is set to M (separate valuation
with reference to sales document/project). This ensures that the sales order stock is valuated.
2. Use a requirements class for which the account assignment category is set to M (Ind. cust. w/o KD-CO) or an account
assignment category for which you have made the following settings:
The Consumption posting field (technical designation: KZVBR) is blank. This means that no costs or
revenues are updated to the sales order item (no CO object at the sales order item).
The Special stock field (technical designation: SOBKZ) is set to E (= orders on hand). This means
that the material is carried in the sales order stock.
3. It is not necessary to specify a settlement profile in the requirements class. If you enter one anyway, the system will ignore
it.
4. It is not necessary to specify a results analysis key in the requirements class. If you enter one anyway, the system will ignore
it.
5. If you want to use a sales order cost estimate to valuate the sales order stocks, enter a costing variant in the requirements
class that is suitable for sales order costing. If you create a product cost estimate (a cost estimate for a BOM and routing),
enter costing method 1 (product costing). In this scenario, you do not use unit costing as a rule.
6. If you want to calculate the cost of goods manufactured and the cost of goods sold in sales order costing, specify a costing
sheet that calculates the sales and administration costs on the basis of the cost of goods manufactured.
7. The sales order cost estimate can only be used for valuation if it is marked. If you want to ensure that a marked sales order
cost estimate is always available, set the Costing indicator to B (automatic costing and marking). In this case, a cost
estimate will be generated and marked automatically when you create a sales order cost estimate. If you want to generate a
cost estimate automatically when you create the sales order, but mark the cost estimate manually after checking it, enter A
instead of B (= automatic costing). If you always want to create the cost estimate manually, enter nothing.
8. If you want to valuate the sales order stocks individually but use the standard price from the material master record for
valuation, set the indicator Without valuation strategy (note: in Release 4.0 this indicator is called Valuation strategy).

2.1.1.1. Assembly Processing

If you are using assembly type 2, you can only create a sales order cost estimate in release 4.5 or higher. For more information,
read the Release Note on Release 4.5A (Controlling -> Product Cost Controlling -> Cost Object Controlling -> Product Cost by
Sales Order).

2.1.1.2. Transfer of Sales Order Cost Estimate into SD Condition Type

For more information, read the Release Note on Release 4.5A (Controlling -> Product Cost Controlling -> Cost Object Controlling -
> Product Cost by Sales Order).

2.1.2. Valuation of Sales Order Stocks in Material Master Record

Some companies want to carry the sales order stock quantities separately, but valuate them together. Make the following
Customizing settings:

1. Use a requirements class for which the Valuation indicator (valuation without reference to sales order document) is set to
A. This ensures that the value of the sales order stocks is updated to the material master. The valuation price in the material
master record is used for valuation.

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2. Use a requirements class for which the account assignment category is M (Ind. cust. w/o KD-CO) or an account assignment
category in which no entry was made in the Consumption posting field and the Special stock field is set to E.
3. Do not specify a parameter for a sales order cost estimate. A sales order cost estimate is not usually appropriate in this
scenario.
4. Do not specify a settlement rule or a results analysis key.

2.2. Valuated Sales Order Stock With Product Cost by Sales Order
1. Use a requirements class for which the Valuation indicator (technical designation: KZBWS) is set to M (separate valuation
with reference to sales document/project). This ensures that the sales order stock is valuated.
2. Use a requirements class for which the account assignment category is set to E (Ind. cust. w/o KD-CO) or a account
assignment category for which you have made the following settings:
The Consumption posting field (technical designation: KZVBR) is set to E (accounting via sales
order). This means that costs and revenues are updated to the sales order item (CO object at the
sales order item).
The Special stock field (technical designation: SOBKZ) is set to E (= orders on hand). This means
that the material is carried in the sales order stock.
3. Enter a settlement profile in the requirements class.
4. If you want to perform results analysis for the sales order item, enter a results analysis key in the requirements class.
5. If you want to use a sales order cost estimate to valuate the sales order stocks, enter a costing variant in the requirements
class that is suitable for sales order costing. If you create a product cost estimate (a cost estimate for a BOM and routing),
enter costing method 1 (product costing).
6. If you want to calculate the cost of goods manufactured and the cost of goods sold in sales order costing, specify a costing
sheet that calculates the sales and administration costs on the basis of the cost of goods manufactured.
7. The sales order cost estimate can only be used for valuation if it is marked. Proceed as described under 2.1.1.

2.3. Non-valuated Sales Order Stock with Product Cost by Sales Order
1. Use a requirements class for which the Valuation indicator is blank (no stock valuation). This ensures that the sales order
stock is unvaluated.
2. Use a requirements class for which the account assignment category is set to E (Ind. cust. w/o KD-CO) or a account
assignment category for which you have made the following settings:
The Consumption posting field is set to E (accounting via sales order). This means that costs and
revenues are updated to the sales order item (CO object at the sales order item).
The Special stock field is set to E (= orders on hand). This means that the material is carried in the
sales order stock.
3. Enter a settlement profile in the requirements class.
4. If you want to perform results analysis for the sales order item, enter a results analysis key in the requirements class.
5. For more information, refer to the R/3 Library (Product Cost by Sales Order document).

3. Determining the Requirements Type

3.1 The Significance of the Requirements Type

The requirements type is very important in make-to-order production. It refers to a requirements class, which contains settings for
functions relevant to requirements and other functions in Logistics, as well as for the costing and other functions in Accounting.
(Some settings in the requirements class are overridden by the schedule line. For more information, see Customizing for schedule
line categories.)

The account assignment category defined in the requirements class contains two indicators that are important for Cost Object
Controlling: the special stock indicator and the consumption indicator.

The special stock indicator defines whether processing of sales order or project stock is required for the sales order item. The
following settings are relevant for make-to-order production:

Blank: No special stock

E: Sales order stock

Q: Project stock

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You can use the consumption indicator to determine whether a CO object with costs and revenues is to be created for the sales
order item, or whether the account assignment is to be made to a WBS element.

Use the Valuation setting in the requirements class to determine whether the requirements class is to be used for recording
valuated defined special stock. If you enter the setting so that the special stock is to be recorded as valuated, then you can open a
special valuation segment for this ("M": separate valuation with reference to the SD document or project) or the valuation
segment from the make-to-stock inventory can be used ("A": Valuation with no reference to the SD document).

By the same token, the following applies:

If a CO object is recorded for the sales order item then results analysis is required, which calculates the WIP and the cost of
sales for the incurred costs.
It is not possible to make a project assignment (consumption indicator = P) for valuated sales order stock.
Processing without a CO object for sales order stock is only possible using the valuated special stock.
If a requirements type has not been entered in the sales order item, or if the requirements type does not contain an account
assignment category, then costs and revenues are not updated in Cost Object Controlling. Instead, these are posted
directly to Profitability Analysis when the billing document is created.
In the requirements class, you can only enter account assignment categories for which the
Consumption indicator = E (Sales order) or
Consumption indicator = P (Project) or
Special stock indicator = E (Sales order stock).

3.2 Determining the Requirements Type

There are two different ways of determining the requirements type
a) Based on the material or
b) Business process.
If you base this on materials, for example, you specify that a material is always recorded in the valuated sales order stock. However,
there can be business processes that require a different type of processing.

Example One:
When a sales order is created, a sales order costing is to be made for a material. You can make the corresponding setting in the
requirements class in the costing field.
However, for the same material, no sales order costing is to be automatically created when returns are created.
You would thus need two different requirements classes. This, in turn, means that the system needs to find different requirements
types when SD documents (returns or sales orders) are created.

Example Two: Logistical Make-to-Stock Production with CO Make-to-Order Production

A product or trading good is processed using the make-to-stock inventory. This means that production is not related to a sales
order. Normally a CO object is not created for this material, so a requirements class is used that does not contain an account
assignment category.
However, if the stock item is a spare part recorded in a sales order that otherwise only has make-to-order production, then it
makes sense to create a CO object for this item, on which costs and revenues can be recorded.
In Cost Object Controlling, it is then possible to analyze the costs and revenues of the whole sales order, including, for example,
surcharge calculation. This needs a requirements class whose special stock indicator is not filled, and the consumption indicator is
set to "E". (This is account assignment category "B" in the standard system.)

3.2.1 How do I enter the settings so that the requirements type is determined based
on material or business process?

For each item category and the MRP type from the material master (optional), you decide whether the system uses the material
master (determination based on the material) to determine the requirements type, or whether it uses the item category and MRP
type (determination based on the business process).

You can make the appropriate settings in Customizing for Product Cost by Sales Order under "Control Determination of
Requirements Type" (transaction OVZI). If the requirements type is to be determined based on the material, enter a zero in the
Source field, or leave it blank. If you want to base the determination on the business process, enter a "1" or "2" in the Source field.

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3.2.1.1 How is the requirements type determined based on the business process?

If you enter a "1" or "2" in the Source field (transaction OVZI), then enter the requirements type that belongs to the item category
and MRP type (optional). To find the item category, see section 2.3.

3.2.1.2 How is the requirements type determined based on the material?

If the Source field is empty or contains a zero (transaction OVZI), then the system checks, when you create the sales order,
whether a strategy group has been entered in the MRP 3 view in the material master. If the strategy group has been entered, then
the strategy that it contains (transaction OPPT) refers to the requirements type (transaction OPPS).

If there is no strategy group in the material master, then the system checks whether a MRP group has been entered in MRP 1 view
in the material master. The strategy group is assigned to the MRP group (transaction OPPU) and the strategy that the strategy
group contains is used to find the requirements type. If no MRP group has been entered, the system checks whether a strategy
group can be found searching in Customizing (transaction OPPU) for an entry with an MRP group that has the same name as the
material type (this also holds if the there is no MRP view in the material master).

If this method is unsuccessful, then the system assumes that a special rule was defined, meaning that the requirements type is to
be determined by using the combination of the item category and the MRP type. You would make this type of special setting in
Customizing for Product Cost by Sales Order, under "Control of Requirements Type Determination" (transaction OVZI), even if you
have entered a zero in the Source field there, or left it blank. If no requirements type has been defined for the combination of item
category and MRP type, then the system searches for an entry with the item category and a blank MRP type.

If you selected "2" for the Source field, then the system checks whether the requirements type is also present as a possible
strategy in material-based Customizing. This means that the system does not only take into account the requirements type
defined by using the main strategy, it also interprets all of the strategies defined for the strategy group. If this is the case, then the
requirements type is accepted. Even if the system is not able to find a requirements type using the material-based Customizing,
the requirements type found by using the business process is retained. If this latter requirements type is not present in the
material-based Customizing as a possible requirements type, but a requirements type (material-based) has been defined, then
this is transferred to the sales order item. If the Source field contains a "1", this check is not carried out, and the requirements type
defined in the business process Customizing is directly transferred.

3.2.2 Which requirements types can be used in the sales order item?

In the sales order item, you can enter manually the requirements types that are defined in material-based and business process-
based Customizing. The setting of the Source field in business process-based Customizing is not relevant to this. The F4 help
provides you with the list of requirements types that are possible.

3.2.3 How is the item category determined?

The item category is found by using the combination of item category group and SD document type (Customizing transaction
VOV4). The item category groups are entered in the material type and thus transferred as default values to the material master
record. From Release 4.5, you can also define a general item category group in addition to the item category group from the sales
view. This is designed for situations in which a sales view is not to be created for the material, or where it is not possible to read the
sales view because the sales area is not known in the application.

Product Cost by Order Scenario

Product Cost by Order Scenario

Product Cost by Order Scenario

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When Do You Use Product Cost by Order?

General
The Different Contexts
When Should You Use Product Cost by Order?
When Should You NOT Use Product Cost by Order?
Period-End Closing

When Do You Use Product Cost by Order?

General

Product Cost by Order enables you to analyze costs at production lot level. You can use it for make-to-stock production and sales
order-related production. In sales order-related production, you can use Product Cost by Order for sales order-related mass
production and as a supplement to Product Cost by Sales Order.

In Product Cost by Sales Order, you use manufacturing orders (production orders or process orders) as cost objects. The costs
that are updated on the manufacturing order are analyzed by lot and then settled. This means that variances of the cost analysis
are only determined once the whole quantity that was planned for production has been delivered to the warehouse.

You can do the following with Product Cost by Sales Order:

Determine and analyze plan, target and actual costs for production orders and process orders
Update or determine the inventory of unfinished products (work in process) and finished products
Determine and analyze variances
Transfer work in process and production variances to Financial Accounting (FI)
Transfer production variances to Profitability Analysis (CO-PA)
Transfer work in process and production variances to Profit Center Accounting (EC-PCA)

Transfer production variances to actual costing / Material Ledger (CO-PC-ACT)

The Different Contexts

Settlement type
In the plant settings for the order type, you need to select settlement type PP1. This means that all production orders for
this order type and this plant have the settlement rule with the FUL settlement type. In the order, the settlement type
determines in which of the following scenarios the production order is processed: Product Cost by Order (FUL) or in
Product Cost by Period (PER).
Status control
The status of the production order is very important in this scenario. The delivered (DLV) or technically completed (TECO)
status control the WIP determination (creation or breakdown), the variance determination and the order settlement.
Work in process (WIP)
This is calculated at actual costs. WIP is only created for orders that have been released (REL). If the order has been
technically completed (TECO) or delivered (DLV), then WIP is not created, but is broken down if it exists. However, WIP is
only posted to FI when the order is settled. See note 530563.
It is only possible to calculate WIP at target costs in Product Cost by Period.
Variance determination
Variances can only be determined once the order has been delivered (DLV) or technically completed (TECO), as the
quantity actually delivered is fixed. This quantity determines the target costs of the production order and thus the
variances per piece.
This means that WIP and variances cannot be calculated at the same time. WIP is only calculated for released orders (REL)
and variances for orders that have been technically completed (TECO) or delivered (DLV)
If you are using Product Cost by Sales Order with the unvaluated sales order stock, you cannot reliably determine any
variances for the assigned production orders and process orders. Therefore, in this case, the system does not support the
variance determination, and you need to use the valuated sales order stock instead.
Order settlement
The status of a production order in this scenario determines whether that production order is settled and thus credited or
not. The actual costs of the production order are only settled if the order has been technically completed (TECO) or
delivered (DLV). For orders that have been released (REL), settlement only posts the WIP to FI (if any WIP was determined).
Lot-size-independent costs
These are determined and calculated once (only) in this scenario. In Product Costing by Period it is not possible to allocate
these costs.

When Should You Use Product Cost by Order?

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For individual or lot-related production. It is typically used for order-related production or for batch-related process
manufacturing. Production is based on orders for which production and the cost analysis of a certain lot size are the
priority.
For test production/start-up production (for planned repetitive manufacturing) for the exact determination of planning
data (for example, variance analysis)
When you want to calculate WIP at actual costs
When you want to allocate your lot-size-independent costs
When you want to schedule your orders accurately

When Should You NOT Use Product Cost by Order?

For repetitive manufacturing (stable and continuous production), since the production of one material is the main priority
over a long period of time
When you want to calculate WIP at target costs
When you want to calculate WIP (at target costs) and variances at the same time.

Period-End Closing
Sequence for production orders during period-end closing:

1. Process cost allocation

2. Revaluation at actual prices
3. Overhead calculation
4. WIP determination
5. Variance determination
6. Order settlement.

Periodic Scenario
Cost Object Hierarchies
Product Cost Collector

Cost Object Hierarchies

Relevant SAP notes & KBAs

SAP note 399182 - INFORMATION: CO-PC-OBJ (cost object hierarchy)

SAP note 492867 - Cost object hierarchy info:selection of single objects

KBA 1896486 - Error message KZ164 is issued in T-code: KKP2/ KKPHIE

Known Issues

The profit center of a cost object (hierarchy) cannot be changed anymore - in order to avoid inconsistencies - if the cost
object has actual cost postings already.

KZ468 "Cost element/origin & could not be distributed"

In order to find the reason for message KZ468 you have to compare the actual cost item with the target cost item. Please
notice that the entire key of the origin must be identical which is cost element, origin, origin group, cost center/activity. If
they don't match the split algorithm looks into the cost element group. If the cost element group has not been sufficiently
maintained or there are no target costs in the according cost element bracket the actual costs cannot be distributed.
Please see SAP note 125011.
Missing target costs: The cost object distribution distributes its actual costs based on target costs. In order to calculate

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target costs a material cost estimate is needed. Please check the log for error messages KV154 and KV169. To fix this
please follow SAP note 1229004.

In very rare cases the message KZ468 is issued when there is a small balance which cannot be further distributed. For
instance the total values in both currencies were zero but a small fixed portion remained. In this case you could ignore the
message KZ468.

General Information

1 Introduction

One of the goals of Product Costing is the allocation of all manufacturing costs to the goods produced. However, certain
manufacturing costs are difficult – if not impossible – to allocate to the individual cost collector (manufacturing order or product
cost collector), such as electricity and maintenance for an assembly line. For other costs direct allocation to a cost collector is
possible, but such costs may be too low to justify the effort in doing so. Such costs have been traditionally allocated to the cost
collector by using overheads. This however does not allocate the actual costs to the cost collector but only the standard costs.
Cost object hierarchies provide a way to control production costs that are tracked on an individual cost collector together with
costs that can only be assigned on a more general level.

2 Building a Cost Object Hierarchy

The cost object hierarchy consists of a hierarchical tree of cost objects, which are the nodes in the tree. Each cost object refers to a
higher-level cost object (the “parent”) in its master data. The top-level cost object is identified by an asterisk (*) in this field. The
following limitations apply:

All cost objects within a hierarchy must have the same cost object category.
Each cost object must have the same company code.
A cost object can either be the parent of other cost objects, or cost collectors can be assigned to it. Both are not possible.
A cost object that has no single objects (assigned cost collectors) does not need to specify a plant in its master data. A cost
object that has single objects assigned has to specify a plant.

3 Assignment of Objects

The cost collectors that can be assigned to a cost object hierarchy are production orders, process orders, and product cost
[1][1]
collectors . Each cost collector can only be assigned to one cost object node. Specifying a list of material, plant, and (optionally)
[2][2]
production process in the cost object node using the Single Object function controls the assignment of cost collectors to a cost
[3][3]
object . A cost collector is considered assigned to a cost object, and thus to a cost object hierarchy, if the following criteria are
met:

Its output material and its planning plant is specified in the cost object node. If the cost object node specifies a production
process, then this must also match the production process in the cost collector.
Cost collectors that are assigned to a cost object have periodic settlement. When such a cost collector is created, the
system checks whether it is suitable for assignment to a cost object hierarchy. In that case its settlement rule is changed to
periodic settlement.
If the cost object category of the cost object has the switch Single Object set to Control through variance key, cost
collectors that get a variance key during creation are not attached to the cost object hierarchy and their settlement rule is
not changed to periodic settlement.
By removing the variance key these cost collectors can be attached to the cost object hierarchy, but only if they already
have a periodic settlement rule.

There is no static assignment table. The assignment criteria are always checked dynamically.

4 Controlling Scenarios

There are two different controlling scenarios with cost object hierarchies:

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Cost object hierarchies without distribution
Actual costs posted onto the cost object nodes are analyzed and compared to costs posted on other levels of the hierarchy
(i.e. the cost collectors) in a very complex fashion during variance calculation. These costs are either settled directly to a
price difference account or via the top cost object node of the hierarchy to an account specified.
SAP does not recommend using this scenario. Therefore it is not discussed further in this document.
Cost object hierarchies with distribution
During period-end closing, the actual costs posted onto the cost object nodes are distributed down the hierarchy to the
individual cost collectors. After distribution, costs are both analyzed (WIP, variance calculation) and settled on the
individual cost collectors, as is the case in Controlling by Orders or Product Cost Collectors.
SAP strongly recommends this scenario for cost object hierarchies.

The scenario Cost object hierarchies with distribution is selected by setting the Distribution flag in the cost object category of
the hierarchy. This flag controls the settlement rule that the cost collectors get during creation, so it may not be changed once cost
collectors have been created.

5 Period-End Closing

Cost collectors assigned to a cost object hierarchy are processed in period-end closing for the cost object hierarchy. Therefore it is
not necessary to process them in period-end closing for orders or product cost collectors.

Cost object hierarchies with distribution have an extra step in their period-end closing process, the Distribution step. It must occur
after Template Allocation and Revaluation of Activities, if these functions are used, and before Overhead Calculation, Pre-
settlement of co‑products and rework, WIP, Variances, and Settlement. The distribution of actual costs on a cost object node is
based on the target costs of each node in the hierarchy. The system distributes the costs for each cost element/origin individually
according to the target costs for that cost element/origin. If there are no target costs for a cost element/origin, the actual costs for
that cost element/origin are distributed according to the target costs of the cost element group (maintained in the target cost
version).

The target costs on the cost collectors are calculated as they are during variance calculation, then accumulated on each cost
object, so that the target costs on a cost object is the sum of the target cost of all objects of a lower hierarchy. After the target
costs have been computed, starting with the top level of the hierarchy the actual costs are distributed proportionally to the next-
lower level. This is done level by level, until all costs are distributed to the lowest level of the hierarchy, the cost collectors.

Since all cost collectors that are assigned to a cost object hierarchy have periodic settlement, WIP and variances are based on
target costs. Since the settlement is also done on a periodic basis, it has to be executed each period.

6 Important Hints

Only use cost object hierarchies with distribution. This not only makes the flow of costs much more transparent, but it is
also much more robust against structural changes in the cost object hierarchy.
You can add material/plant combinations in the cost object node for the single object assignment at any time. Existing cost
collectors are considered attached to that node if the criteria specified above are met.
Once you have run the distribution for a particular period, any action that might result in cost collectors being removed
from the cost object hierarchy (such as deleting a material/plant combination in the cost object hierarchy or entering a
variance key in a cost collector, which would exclude it from the hierarchy, setting the deletion flag on a cost collector) is
not recommended during the remainder of that period. Otherwise a positive or negative cost balance may remain on one or
more cost objects if you run distribution again for that period. You can only remove this balance by reversing the structural
change and re-running the distribution.
It is recommended that you frequently go through your cost collectors (especially orders) and set the deletion flag on those
that are no longer used. This will greatly improve the performance of period-end closing.
The more single objects that are assigned to a particular cost object, the higher the amount of memory consumed during
the distribution run. The cost object with the highest number of cost collectors assigned usually determines the maximum
amount of memory consumed. If your distribution run terminates due to lack of memory, it is recommended that you
introduce an additional layer of cost objects and distribute the materials between those.
Example: Cost object A has 100 materials specified (MAT001 – MAT100) and there are 1000 production orders for each
material. If this setup uses too much memory, you should delete the material assignment from cost object A, create several
cost objects B, C, D, etc. with cost object A as the parent, and distribute materials MAT001 – MAT100 between those cost
objects.

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[1][1] The term cost collector is used from now on when referring to an object that may either be a production order, a process
order or a product cost collector.

[2][2] The production process is referred to as procurement alternative/process in the master data maintenance of the cost
object.

[3][3] Production/procurement processes were introduced with Release 4.5. In earlier releases, instead of a production process a
production version could optionally be specified. When upgrading from an earlier release to Release 4.5, the single object
assignment will automatically be converted by creating production processes for the production versions.

Product Cost Collector

General information

Product cost collectors (PCC) are always used in a periodic scenario with PER settlement rule

In "Product Cost by Period" WIP and the variances are calculated and settled based on the receipted and confirmed
quantities:
Work in process is calculated at target costs. In repetitive manufacturing, you must enter reporting point backflushes or,
for manufacturing orders, confirmations for the operations. Confirmed quantities that are not scrap are valuated at target
costs when the WIP is determined.

Variances are calculated by period, so there can be both work in process and variances on an object at the same time. To
determine the total variance, the actual values confirmed in the period are compared against the target values. The work in
process is deducted from the difference between the actual values and the target values to determine the variance.

The WIP calculation based on target costs requires that the cost estimate used for the valuation refers to the same quantity
structure like the production order or product cost collector.
The standard cost estimate is only one option. It is also possible and even recommended to use the preliminary cost
estimate of the product cost collector. Which cost estimate has priority and should be taken can be set with the Valuation
Variant for Scrap and WIP in Customizing:

SAP note 1341815 - Work in process (WIP) at targets

SAP note 386816 - WIP and variance calculation: Errors KV158, KV181

The variances (actual cost balance) of a product cost collector are defined as variances = actuals costs - WIP.

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Delete product cost collector

This issue comes up in combination with error M3368 during change of valuation class in material master

See KBA 1967543 - Error M3 368 occurs when you change valuation class in transaction MM02

Concerning prerequisites for PCC deletion check this information:

The deletion flag cannot be set for product cost collector for one or more of the following reasons:
•There are still run schedule headers for the product cost collector in which the status Deletion indicator is not set.
•There are production versions for the product cost collector in which the status Deletion indicator is not set.
•There are postprocessing records in repetitive manufacturing that are to be assigned to the product cost collector.
•There are manufacturing orders for the product cost collector in which the status Deletion indicator is not set.

Deletion indicator can be set by report PPARCHP1

KBA 2160903 - KOSA118 happens when deleting product cost collector

SAP note 351234 Deletion of production versions and manufacturing orders

In order to allow the deletion flag on a production order assigned to a product cost collector the cutoff data must be <=
period of actual confirmation date of the order.
SAP note 972043 - Information: Archiving of PCC and WIP line item

Settle costs from previous years

To settle costs from previous years you choose processing type "FULL Settlement" in KO88/KK87

Error message KD549 "Debit with cost element & cannot be settled" is displayed

For a product cost collector with periodic settlement rule (settlement type PER), make sure that each period is settled
completely and no new cost postings happen in a period which is already settled.

In SAP standard it is NOT possible to settle costs from a previous period if settlements of later periods have already been
posted. Even with the modification of SAP notes 424139 and 2397593, it is only possible to settle these costs when all
settlements in the periods after that period are reversed document by document.

If this is not possible anymore, the balances of the previous periods must be cleared by manual repostings as explained in
SAP note 140672. Or it can be checked if the balances can be ignored.

SAP note 140672 - Info: Settle/reverse costs from previous periods

Known Issues

KBA 2249550 - Unable to change profit center in product cost collector - error KO372.

KBA 1866599 - Error message KD529 is issued when you settle a product cost collector with T-code:KK87

WIP / Results Analysis

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Status Information

SAP note 530563 - WIP calculation: Status DLV and TECO

SAP note 539947 - Status in the results analysis and WIP calculation

SAP note 194746 - Incorrect status during results analysis

SAP note 370110 - CJC1: missing documentation

SAP note 351421 - Derivation status final billing with SD item summarization

SAP note 364169 - Status FNBL and DLV w/ sales order with structure

KBA 1520867 - How to use Program SAPKKA12 - additional information on report handling

KBA 2927094 - Maintenance order: WIP not cancelled although order has been delivered (DLV)

Update of RA key

KBA 2624239 - RA key cannot be deleted due to error KJ603 First cancel settlement

SAP note 1834817 - Resetting and regeneration of the results analysis

KBA 2589237 - Update RA KEY in CJ20N

Delete RA data / RA data for future period calculated by mistake

KBA 2547136 - Results Analysis: Long runtime - reading table PERTAB_GEPUFFERT

SAP note 503951 - Delete results analysis data

SAP note 640952 - Deleting results analysis data

Orders cannot be closed - Deletion flag cannot be set - Error KO115 /

KO450 / KO451 / KD276

KBA 1846994 - Error KO115 or KO450 when setting a deletion flag on an order

KBA 2540294 - Error KO450 is issued when closing WBS element

KBA 1771819 - Error message KO115 when perform Internal Order closure

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KBA 2053355 - Cannot close maintenance order due to error KO115

KBA 2053355 - Message No. KO115 when Order is set as Business Complete

KBA 2635744 - KO451 during order closure

Object Currency / CO area currency

In the standard WIP calculation the WIP is calculated in controlling area currency only and then copied into the company
code currency fields if the currencies are identical.

To force the two calculations happen independently, use options c) or d) mentioned in SAP Note 485783.

SAP note 485783 - Results analysis: Object currency

SAP note 485405 - Results analysis: Object currency

SAP note 2650209 - WIP display: Correction for display of object currency in KKAQ

KJ161: There are values for cost element & that are not assigned to any
line ID

KBA 2176639 - Error message KJ161 issue when run T-code: KKAX

SAP note 2593664 - Message KJ 161 of results analysis

KD256: There are no accrued amounts; settlement is not possible.

In general, RA data is calculated and settled until statuses TECO or DLV are active in the order. As soon as any of these two
statuses is active in the order, Settlement of actual costs takes place.

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This error happens because there are missing calculations or customizing in Results analysis (OKG* transactions). If the
order (controlling object, in general) carries a Results Analysis key, please, perform the following checks:

1. Check if WIP / RA data has been calculated for the order (data appears in table COSB).
2. Check if WIP has already been settled, so there will be no delta from the previous settlement of RA data.
3. Check if the there are posting rules maintained for the CO Area, RA version... in the customizing (OKG8).
4. Check if any of the RA versions has flag "Transfer to financial accounting" set (transaction OKG2).

If any of the checks above fails, KD256 error will correctly prompt.

KD276: (& : WiP in Financial Accounting is still to be cleared/settled

Even though the balance of the order appears to be zero it may be that WIP has not been reversed or that the WIP reversal
has not yet been settled.

You can check this with report COPCOBJ_REORGCHECK.

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Whenever possible, follow the long text of message KD276.

If there are unsettled costs from previous fiscal years it might not be feasible to settle the order again. If you want to close
this order in spite of the unsettled WIP cancellation I suggest to change the message KD276 into a warning message in
transaction OBA5.

In OBA5 choose 'KD' for application area.

Please note that you always have to manually correct the WIP-accounts in this case!

SAP note 421710 - Check report whether "Deletion flag" status can be set

Reports SAPKKA12 / SAPKKA13 / SAPKKA14

SAPKKA12
Program SAPKKA12 sets the CO status for sales orders involved in results analysis to DLV (delivered), FNBL (final billing),
TECO (technically completed), and CLSD (closed).
KBA 1520867 - How to use Program SAPKKA12 - additional information on report handling

SAPKKA13
Program SAPKKA13 reverses line items of Results Analysis

SAPKKA14
Program SAPKKA14 compares WIP/Results Analysis data between Controlling (CO) and Financial Accounting (FI)

Flag "split creation/usage" in RA version (OKG2)

SAP note 501915 - Creation, cancellation, and usage of reserves

KBA 2474641 - WIP calculation/settlement produces more than one entry in COSB/COSBD table

Cutoff period

The cutoff period for the WIP calculation is set in transaction KKA0.
The cutoff period for WIP should be adjusted periodically to avoid WIP postings into old periods.

Event based revenue recognition

SAP note 2700588 - Event Based Revenue Recognition versus Results Analysis in a few sentences

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Currency translation in results analysis

SAP note 3129802 - Incorrect currency translation during settlement of results analysis data?

Coming soon

Further information coming soon

Variance Calculation

General Information

As soon as the order has status DLV or TECO variances can be calculated
Status DLV (delivered) can be found in table AFPO-LTRMI
Status TECO (technically completed) can be found in table AUFK-IDAT2

Order related product costing

FUL settlement rule
Released cost estimate has to be valid at delivery / goods receipt

Periodical product costing

PER settlement rule
Released cost estimate has to be valid the last day of the period

Target cost calculation

In version 0 the target costs are calculated as target costs = plan costs from standard cost estimate / lot size * actual
output quantity
If the item is lot size independent the formula is target costs = plan costs from standard cost estimate: Plan qty. / lot size *
actual output qty. = target qty

Target costs calculated dynamically (on-the-fly)

As long as status TECO or DLV is not set on the order, target costs are calculated dynamically (on-the-fly) and are being
displayed in costs analysis in CO03 or e.g. in report KKBC_ORD.
As soon as the variance calculation has been executed for the first time, target costs exist on the database (with value type
5 in table COSPA and COSSA). If you are now executing KKBC_ORD the system reads the target costs from the database
directly.
If the variance calculation is reversed then, the system does not calculate target costs dynamically again. It always reads it
from database, even if they are zero.
If the status TECO or DLV is reversed the variance calculation sets the target costs and variances to zero.

SAP note 834317 - Target costs: Display of target credit in reports

SAP note 2892762 - Target costs: Displaying target credit in reports (relevant as of S4CORE 105)

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KV011 "Order does not have status DLV or TECO"

SAP note 743766 - Variances: no error message KV011

KBA 1922159 - Error KV011 issues in KKS2

BS013 "System status & is active &"

It is the common procedure of the variance calculation and also settlement to select orders as long as they are not closed
(status CLSD) or flagged for deletion (status DLFL).

Variance calculation selects orders from the order master data no matter of their status but the status check is done later.

It is recommend to set the deletion flag for all completed or fully settled production and process orders as soon as possible.

Orders with status CLSD or CRTD and similar will be removed and message BS013 is issued

BS013 can and should be turned off (suppressed) with OPR4_KKS (relevant for KKS1 and KKS2)
SAP note 2420801 - Status selection of period-end closing reports for production orders: With this SAP note a
feature has been introduced in several period end transactions incl. the variance calculation to exclude orders with a
certain status from being selected.

KBA 2475585 - Incorrect orders selected in variance calculation

Performance

KBA 1578574 - Bad performance in Variance Calculation

Variances on orders without new actual postings

SAP note 308513 "Variances on completed orders"

Parallel valuation

The variance calculation in a parallel valuation is not yet possible in standard (see SAP note 122902 - TP: Assignment of
valuations to versions ).

SAP pilot-release note 2033687 - VC in parallel valuation

Please notice that the target cost version of the parallel valuation has to be executed together with version 000 in the
update run of the variance calculation. The version 000 is needed to compute the delta since the target cost version of the
parallel valuation only updates delta values.

Additionally please notice that this modification allows the calculation of variances in a parallel valuation for analytical
purposes. A settlement of these variance categories is not enabled by this modification.

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Error messages KV151 / KV154 / KV169

KV151 Only remaining var. in version 0 - no target costs for &

KV154 No standard cost estimate for material & in plant & on &

The settlement type in the order determines at which point the cost estimate has to be valid:

For the full settlement, the variances are determined across the entire term of the order. In this instance, the cost
estimate must be valid on the final day of delivery (status DLV - see table AFPO-LTRMI), or if this has not yet
happened, on the day of technical completion (status TECO - see table AUFK-IDAT2), or else on the day the order
was created.
For the periodic settlement, the variances are calculated for the period. In this case, the cost estimate has to be valid
on the last day of the period.

It is not possible to release a cost estimate for a date in the past!

KV169 No target costs because no price for material & CNP1 in currency &
The target cost calculation requires a cost estimate for which the cost component split is active in company as well
as in controlling area currency.
The cost component split in controlling area currency is not active for the costing variant (check T-code: OKKN
or OKY9).
Therefore the variance calculation issues message KV169 and cannot calculate target costs.
KBA 2184974 - KV151 and KV169 occurred in Variance Calculation
SAP note 1229004 - Variances: Message KV 169 - no target costs calculated

Error messages KV158 / KV181 / KV192

KV158 Routing/master recipe in actuals differs from qty structure for target

KV181 Routing/master recipe order: & - material: &

KV192 Cannot calculate scrap variances

The scrap variance calculation requires that the routing of the order and the one of the used cost estimate for the scrap
variance valuation are identical.

SAP note 386816 - WIP and variance calculation: Errors KV158, KV181

Error message CK735 / CK736

CK735 No cost estimate found for procurement alternative

For material/plant , no cost estimate could be found for the procurement alternative with BOM and routing

CK736 No cost estimate found for procurement alternative

For material/plant , no cost estimate could be found for the procurement alternative with production version

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Always have to make sure that a released mixed standard cost estimates exists including all relevant procurement
alternatives relevant to the DLV or TECO date. It is not possible to create such a cost estimate in the past.

The system is searching for another procurement alternative within the mixed cost estimate to calculate target costs in
case the procurement alternative of the order is different if SAP note 707994 is applied.

The system does not search for another mixed cost estimate if none is existing relevant to the DLV or TECO date.

KBA 2050297 - CK735 occurs in KKS1

SAP modification note 707994 - Variances: Search for a procurement alternative

SAP pilot-release note 2028939 - Variances: Searching for a procurement alternative in case of split valuation

Error message KV161

KV161 WIP or scrap calculation for parallel operation sequences not possible

Parallel operations/sequences are not supported by the scrap variance calculation

SAP note 1601599 "Scrap variance/WIP at targets: Message KV161"

Missing target costs in joint production scenario

Check if the order is a co-production order with an order header and order items. Then the actual costs are posted to the
order header. These costs must be settled with transaction CO8A or CO8B from the order header to the order items
BEFORE variance calculation is done for the order items. You may find error KV169 in the log.

Correct sequence is important here:

1. Preliminary Settlement of co-products CO8A/CO8B

2. Variance calculation
3. Settlement to material CO88

If step 1 has not been done, the variances are not correct.
To fix the data, variance calculation and settlement should be reversed. Then execute steps 1, 2 and 3 in the correct
sequence. Afterwards analyze the cost reports again and check if the data is correct then.

Valuated sales order stock / valuated project stock

In a valuated stock scenario the first goods receipt determines the valuation. The target cost calculation follows this.
The target cost calculation is based on that cost estimate which is used to valuate the goods receipt of the production
order.

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Special stock valuated materials are valuated as per the following strategy which is HARDCODED in function module
CK36_STANDARD_PRICE_GET - see SAP note 520000.

The first time a goods movement is carried out the system will go through these strategies until it can find a valid price, and
then will create an entry in EBEW/QBEW. The successful strategy number is also written to field LBWST in table
EBEW/QBEW.

The system goes to the next strategy if the one before was not successful.

From then on, the price from these tables will be used for valuating the special stock in every other goods movement.

You can easily find which strategy was successful during the first goods receipts when looking at transaction MBBS.

SAP note 520000 - FAQ: Valuated special stock

For sales order stock one can set parameter "Without Val. Strategy" in the requirements class of the related sales order
to always valuate the valuated sales order stock with the standard price of the non-allocated warehouse stock. This is
not possible for project stock.

Cutoff period

The cutoff period for the variance calculation is set in transaction OKP1.

The cutoff period for variances should be adjusted periodically to avoid variance postings into old periods.

Coming soon

Further information coming soon

Settlement Explanation
General Information about Actual Settlement
General Information about Settlement Rules
How to Analyze Actual Settlement
Errors during Settlement
General Information about Settlement Types

General Information about Actual Settlement

General Information about Actual Settlement

General Information about Actual Settlement

Purpose
Overview
1. Transactions for Actual Settlement
2. Reports for Actual Settlement
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3. Business Transactions for Actual Settlement

3.1 Settlement of Actual Costs
3.2 Settlement of Work in Progress
3.3 Settlement of Variances
3.4 Settlement of Cost of Sales/Sales Revenue
4. Tables updated during Actual Settlement

Purpose

The purpose of this page is to provide general information about actual settlement.

Overview

This document contains general information about transaction codes and reports of actual
settlement and the general procedure of actual settlement on business transaction point of view
(actual costs, WIP, variances).

1. Transactions for Actual Settlement

These are the most relevant transactions for the actual settlement of different CO objects:

Tcode Description

KO88 Individual order settlement (you can process any order category)

KO8G Collective settlement of internal orders

CO88 Settlement of production orders, process orders, product cost collectors

CJ88 Individual project settlement

CJ8G Collective project settlement

KK88 Individual settlement of cost objects

KK89 Collective settlement of cost objects

KK87 individual settlement of production cost collectors

VA88 Collective settlement of sales orders

2. Reports for Actual Settlement

You can also call up each collective processing in the background, while in the transaction. This
triggers off a background report, which you start with the SE38 transaction.

From 4.0 there is a background report for each collective settlement: RKO7XXXX (XXXX=
transaction name), e.g. RKO7CO88 for settlement of production orders, process orders, product

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cost collectors. SAP provides complete support for the use of these reports. They provide the
same user interface as the online transactions.

3. Business Transactions for Actual Settlement

Settlement has many uses in business that are reflected by the settlement transactions. For
actual settlement transactions, the following business transactions may be relevant:

Settlement of actual costs

Settlement of work in progress
Settlement of variances
Settlement of cost of sales/sales revenues

Settlement transactions are determined in routine VRGNG_GET.

3.1 Settlement of Actual Costs

The first type of settlement is the classical settlement of actual costs. This is the settlement of
actual costs that were incurred on the sender. These are settled to the receiver specified in the
settlement rule.

KOAO is the business transaction for actual settlement. If it is selected, then the actual costs of
the sender are settled to the receiver specified by the settlement rule. This means that the debits
from the COSS and COSP tables with value type "04" are read.

3.2 Settlement of Work in Progress

Senders that have a results analysis key and that cannot carry revenues can build up work in
process. For example a production order with 100% FUL rules for settlement to material, or a WIP
element.

The business significance of the WIP calculation and the following settlement is to post WIP to
Financial Accounting and to Profit Center Accounting. Material consumption is posted during the
period to the objects, which means that costs from balance sheet accounts are posted to P&L
accounts. In the SAP System, WIP must be calculated at the end of the period and is posted with
the settlement. If an order has been completed, that is, finally delivered or technically completed,
then the WIP is broken down again, and the actual costs of the object are settled to the receiver
specified by the settlement rule.

To settle WIP, the following is required:

The sender has a results analysis key, and WIP has already been calculated
In Customizing for the results analysis version (transaction OKG3), the "Transfer to Financial
Accounting" indicator must be set.
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In Customizing for results analysis, the posting rules for all results analysis categories that
are relevant to settlement must be stored (transaction OKG8)

Caution: You can only calculate and settle WIP for orders that do not have a revenue indicator or
settlement rule to material if the "WIP on dependent orders" indicator has been set in the results
analysis version (transaction OKG3).

KOAW is the business transaction for settling data of WIP calculation or results analysis. If this is
selected it is read from the COSB table with value type “32”. If the sender carries revenues, then
only this data is interpreted during the actual settlement, and the COSS and COSP tables are not
read.

3.3 Settlement of Variances

Production orders, process orders, product cost collectors and cost objects can calculate
variances and scrap using variance calculation.

The business significance of this is to explain the variances between target and actual costs on
the objects in terms of categories (input quantity variances, input price variances and so on). The
settlement posts these variance categories to different value fields in CO-PA. When a product is
sold, the revenues and the standard costs for the material are transferred to CO-PA. The variances
can now be periodically transferred to CO-PA using settlement.

The variances for objects that have FUL settlement are only calculated once the object has been
finally delivered or is technically completed. The variances for objects that have PER settlement
are calculated periodically.

When variances are settled, they are settled to costing-based profitability analysis as variance
categories. This type of settlement is not to be confused with settlement of price differences to FI,
which takes place at the same time, but independently of the variance settlement. There is often
confusion with this, as the total of the price differences is of course the same as that of the
variance total. The settlement to FI is a pure actual cost settlement to material. The settlement to
CO-PA is a settlement of the variance categories (determined in the variance calculation) to the
different value fields in CO-PA.

SAP note 35507 contains the prerequisites for variance settlement.

KOAV is the business transaction for settlement of variances to profitability analysis for
production orders. If this business transaction is selected, then the variance data is selected from
table COSB with value type "31", scrap is "30". The settlement rule for variances is generated by
the system during the first variance settlement.

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3.4 Settlement of Cost of Sales/Sales Revenue

Senders that have results analysis keys and revenues (sales orders, billing elements and orders
with revenue indicators) are part of the results analysis, and settle the resulting data.

The business significance of the results analysis is to smooth costs and revenues during the
periods and to provide correct period results for profitability analysis. Example: In a customer
project, only costs are incurred during the first few periods, and in the last period, revenue is
posted. If you would post the costs and revenues to CO-PA like they occured, then the initial
period result would look very poor, and at the end very good. The period result does not provide
any clues to the success of the period. Therefore, you use results analysis to try to distribute the
costs and revenues over the runtime of the project, and to post them accordingly, providing a
different view of the costs. It calls the calculated costs "cost of sales", and the calculated revenues
"sales revenue". The costs incurred that are not yet cost of sales are displayed as WIP and posted
to FI.

In this case (even after changing the status to technically completed), settlement does not post
the actual costs, but always the cost of sales, the sales revenue and the reserves for imminent
loss. The corresponding categories cannot be changed by the user, which makes sure that FI and
CO-PA are reconciled (see SAP note 441994).

Results analysis has another special feature: Summarization of costs in hierarchies. For example,
if you have a project in which the top WBS element is a billing element with a results analysis key,
then results analysis summarizes the costs for the whole project on the top WBS element. This
means that the dependent objects do not need to be settled at all. The settlement of the top WBS
element is sufficient to settle the costs of the entire project (see SAP note 76354).

4. Tables updated during Actual Settlement

We recommend to analse the CO objects with report RKACSHOW. See documentation in SAP note
28145.

AUAK Document Header for Settlement Document*

COSPD Settled values from COSP (Cost Totals for External Postings)
COSSD Settled values from COSS (Cost Totals for Internal Postings)
COSBD Settled values from COSB (Total Variances/Results Analyses)

The system updates all tables during actual settlement if debits exist in the corresponding tables.
A credit line in COSSA/COSPA with BEKNZ (Debit/credit indicator) = “A” (Special: Sender credit
from settlement) is made. COSBA is filled with WIP data (value type 32) during WIP calculation
and filled with variances (value type 32) during variance calculation. To get the WIP values and
variances updated in COSBD one has to execute settlement.

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The settlement document consists of more than one table:

AUAK Document header, which contains global information, such as document number,
sender, settlement period etc.
AUAA Receiver segment. The AUAA contains the sender and receiver for the settlement in
routine SENDTAB_CHECK and RECEIVER_CHECK
AUAV settlement transactions used (determined in routine VRGNG_GET)
AUAS Totals Segment. The AUAS contains the settled values from this settlement run. The
system updates a row for each receiver and original debit totals record. The KEY01 field
contains the database key for this record. The PLFNR field displays the receiver (= the
record from AUAA, whose sequential number is the same as the PLFNR). If the AUAS-PLFNR
field is blank, then the system does not settle to a receiver (currently only for the WIP
transfer to FI).
AUAW Accounts for the WIP settlement. The AUAW contains the accounts to which the WIP
was settled. One row is updated for each original debit total record in the COSB table and
each account pair. The AUAW table is filled in the K_SETTLEMENT_CHECK function module
according to the posting rules in results analysis Customizing. When a WIP settlement is
reversed, the accounts in the AUAW table are used, and the account determination is not
called up again. This ensures that the accounts in the reversal are the same as those in the
original settlement, should the posting rules be changed.

*Regarding table AUAK it contains some interesting fields regarding dates:

BUDAT: Posting date. The settlement document has the last day of the posting period as
posting date.
CPUDT: Date Document Was Created. This is the date when the actual settlement was
executed.
WSDAT: Value Date for Currency Translation. This date is the one relevant for the currency
translation, which matches the Posting date.

General Information about Settlement Rules

Settlement Rules

Settlement Rules
Overview
1. Settlement Receivers
2. Distribution Rules using Percentages, Equivalence Numbers and
Amounts
3. PER and FUL rules
4. Settlement Parameters
5. Source Assignments
6. Generated Settlement Rules
Related Content

Overview

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This document contains general information about the settlement rule. In the settlement rule you
specify the receivers to which the costs are to be distributed. The settlement rule contains the
settlement parameters as well as the distribution rules. Distribution rules contain the settlement
receivers, settlement shares and settlement type. They can contain a source assignment.

1. Settlement Receivers

More or less all CO objects are allowed as receivers of a distribution rule and the external G/L
account and fixed asset receivers. In addition, production orders have material as an external
receiver. External means that the settlement not only occurs in CO, but also triggers postings in
Financial Accounting.

You specify whether a receiver category can be entered in a distribution rule or not in the
settlement profile.

2. Distribution Rules using Percentages, Equivalence Numbers and Amounts

Settlement is made depending on the settlement rule created. You can create distribution rules
with either percentages, equivalence numbers or amounts. In the settlement profile, you need to
specify whether fields (such as for the amount in the rule) are ready for input.

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SAP note 330001 describes how amount settlement works, providing detailed examples. The
main theory of amount settlement is that the amount to be settled (from the distribution rule) is
proportionately deducted from incurred costs. The rest is distributed to the receivers of the
percentage rules. The amount settlement does not take place if there are no costs that need to be
settled. Please see useful information in SAP note 50249.

3. PER and FUL rules

You need to assign a settlement type (PER for periodic settlement and FUL for full settlement) to
each distribution rule.

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When you manually create a settlement rule, the system defaults the settlement types depending
on the receiver category. The default value cannot be entered without making modifications.

You can create PER and FUL rules at the same time. For the effects of these rules, and the access
sequence, see SAP note 27922, and the F1 help for the "Processing type" field, in the initial screen
for settlement. The following is important:

The PER rules only include the costs from the settlement period during settlement, whereas
the FUL rules also include the values from the previous period that have not yet been
settled.
The PER rules mean that during activity inputs, the information is transferred via the activity
provider to the settlement receiver, whereas the FUL settlement does not do this.

Therefore it is often useful for an order to have two rules. One with 100% PER to the receiver cost
center, and one with 100% FUL to the receiver cost center. This means that all costs from the
settlement period are settled using the PER rule, and the activity information for these costs are
transferred thus to the receiver cost center. On the other hand, the FUL rule ensures that any
subsequent costs that were settled to the past are also settled.

4. Settlement Parameters

The settlement parameters are used to control sender settlement.

Listed in the settlement parameters

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Description (not used)

Settlement profile
The default value for the settlement profile is taken from the order type for orders and
networks, from the project profile for WBS elements, from the requirements class for sales
orders and from the cost object type for general objects. You create the settlement profile in
Customizing (OKO7).
Allocation structure/PA transfer structure/Source structure
The default values for these structures are taken from the settlement profile. You create the
structures in Customizing (OKO7).
Hierarchy number
Hierarchical settlement is automatically supported during collective settlement. This means
that a sender (that is also a receiver during this settlement) is processed according to the
object settled to it. This is controlled by the hierarchy number in the settlement parameters.
The higher this number, the sooner the sender is processed. The hierarchy number is
automatically issued or adapted by the system, and does not need to be entered manually
by the user. If however, there should be any inconsistencies with the hierarchy numbers,
then you can repair them using the RKSRULE4 report from SAP note 71492.

5. Source Assignments

If a sender has a source structure in the settlement parameters, then you can create settlement
rules for each source assignment. This enables costs and revenues to be settled to various
receivers separately, for example.

6. Generated Settlement Rules

There are a lot of object types (including production orders and sales orders) where it is not
feasible for the user to create a settlement rule manually. For this reason, the system generates
the settlement rules automatically at certain times.

The settlement rule for production orders mainly determines the business behavior of the
production order. Therefore, the automatically generated rules for production orders cannot be
deleted, you can often only change the percentage. If you enter 0%, you can, however, force a
different settlement. The following are examples of automatically created distribution rules:

Production order: Settlement rule to material or sales order. The rule is created at the same
time as the order.
Production order: Settlement rule for the variances to the profitability segment. The rule is
generated during the first variance settlement.
Sales order: Settlement rule to profitability segment. The rule is created at the same time as
the sales order.

The different settlement categories are defined during settlement rule creation in include
LCK02F02 form kontierungstyp_set.

Which settlement category is chosen is dependent from the scenario: Is the goods receipt
valuated or unvaluated? How are fields KZVBR, KZBWS filled? These fields are find in table AFPO
respectively in table VBAP if the order is connected to a sales order.
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It seems there are different requirement classes and/or different account assignments used in
your sample. Please check it. The "account assignment category" (field KNTTP) is maintained in
the requirements class. Please see WIKI article MTO Customizing at a Glance including technical
view on tables and indicators.

Related Content

Settlement Types of Production Orders - Process Orders - Product Cost Collectors

How to Analyze Actual Settlement

How to analyze actual settlement data?

How to analyze actual settlement data?

Purpose
Overview
1. Searching for SAP Notes / Knowledge Base Articles
2. Previous Settlements
3. The Flow Trace
3.1 General Introduction to The Flow Trace
3.2 Example 1: Settlement of a Production Order with Status REL
3.3 Example 2: Settlement of a Production Order with Status DLV
4. Report RKACSHOW
4.1 Settlement rule
4.2 Costs/Revenues
4.3 Already settled values
5. Report RKA_SETTLE_TABLES_COMPARE
5.1 Analysis of CO Totals Records
5.2 Analysis of CO Line Items
5.3 Analysis of Settlement Documents
Related Documents
Related SAP Notes/KBAs

Purpose

The purpose of this page is to provide tools how to analyze settled data in CO-PC-OBJ.

Overview
This article deals with ways of analyzing settlement, which do not require debugging or programming skills and provides an
extensive explanation of the settlement results.

1. Searching for SAP Notes / Knowledge Base Articles

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You can find relevant SAP notes and KBAs (knowledge base articles) for order settlement by using the component CO-PC-OBJ or
CO-OM-OPA-F and the search term "Settlement", or by using transactions (such as KO88 or CO88). If you received an error
message or a program termination, then this should be specified in the search. We recommend to use the five digit error code (e.g.
"KD256" or "KD 256") or the report name (e.g. RKO7CO88).

Please have a look at

KBA 2172375 - How we search [Video]

KBA 1540080 - How to search for KBs, KBAs, SAP Notes, product documentation, and SCN
KBA 2081285 - How to get best results from an SAP search?

2. Previous Settlements

On the initial screen for settlement, you can display the previous settlements for a sender by choosing "Goto -> Previous
settlements". This shows you the detailed procedure in which the sender was settled, which debits were made for each settlement,
and how these debits were distributed to the receivers. You can also go to the accounting documents that were created from this
screen.

The display is based on the settlement documents. All the settlement documents that are in the system are displayed for the
object, regardless of the period. The total of all the documents is also displayed. If settlement documents have already been
archived, then these costs are not included. The system issues a warning if this is the case.

This analysis method is always useful if you experience incorrect updates of documents. It is also very useful if you require an
overview of whether and when the object has already been settled.

Further information can be found in SAP note 373685.

3. The Flow Trace

3.1 General Introduction to The Flow Trace

From Release 4.0 it is possible to write a flow trace for a single settlement. You can activate this in the initial screen menu in KO88
by choosing "Extras -> Activate flow trace". Once you have called up the settlement, you can see the basic list of the log. This
provides a very good picture of the technical progress of the settlement and of possible errors in settlement Customizing. The log
explains comprehensively why the settlement settled which costs and where. It is recommended that you use this function. It often
enables you to search for errors successfully without debugging.

The following graphics show how the flow trace can be evaluated.

3.2 Example 1: Settlement of a Production Order with Status REL

When you settle production order 60003641 the flow trace provides the following information:

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Initially the flow trace shows which sender was processed, in this case order 60003641.

Then the settlement rule is read in three steps:

Determine settlement transactions

Distribution rule
Settlement parameters

The settlement rule that is valid for this settlement (100% FUL to material 100-100, plant 1000) is listed as well as settlement
profile FA_ABP that was stored in the settlement rule.

However, especially important is the determination of the settlement transactions:

Initially, the system checks whether costs and revenues are to be settled. The result of this check is "-". This means that the
actual costs and revenues are not to be settled.
Reason: The sender has settlement profile FA_ABP, in which "Actual costs are to be settled in full" is selected. Actual costs
would therefore be relevant in this respect. However, the sender now has material as the receiver, which means that the

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sender is only settled once it has been finally delivered or technically completed. But status DLV and TECO are both
inactive. Therefore, actual costs are NOT settled.
Now checks are made to see whether variances are to be settled to costing-based profitability analysis. The result of this
check is "-" which means that variances are not to be settled.
Reason: Although the sender has a variance key, the production order does not have either the DLV or TECO status.
Finally, the system checks whether there is any WIP to be settled to FI. The result of this check is "+", which means that WIP
is to be settled.
Reason: The sender is not able to carry revenues and has a results analysis key.

After having executed WIP Calculation (transaction KKAX) execute KO88 again. The flow trace shows the following:

In the database, all the results analysis records in the WIPR, WIPP, RUCR, RUCO, RUCP and RIML categories in version 000 are
selected for this order. In total one record is found.

The categories and versions used for selection depend on the settings made in Customizing for WIP calculation. The system only
selects versions in the controlling area where the "Transfer to Financial Accounting" switch is activated. Additionally, only
categories are selected for which posting rules have been stored in the controlling area (transaction OKG8). All other categories
and versions are not relevant to settlement. In addition, all categories relevant to profit are selected on senders with revenues.
These are the following categories: RIML (60), RILC (61), COSR (63), COSO (64), COSP (65), POCL (71), POCR (72) VLRV (75). The
description of these categories can be found in domain ABKAT (tab value range) via SE11.

Now the records found are distributed to the receivers individually.

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The cost element of the record found by the system is 672111, and it belongs to the WIPR category. The value in the settlement
period is 89,91 EUR after the costs already settled are subtracted. The total value of costs not settled during the year for this
record is also 89,91 EUR. This value is settled to FI, but is not relevant to profit, since WIPR does not belong to the categories
relevant to profit (see above), so the record is not settled to the receiver specified in the settlement rule.

3.3 Example 2: Settlement of a Production Order with Status DLV

When production order 60003641 is settled the question arises as to why the calculated variances were not posted to costing-
based profitability analysis. The flow trace provides you with the following analysis:

Again, the settlement transactions are particularly important:

The system initially checks whether costs and revenues are to be settled. The result of this check is "+", which means that actual
costs and revenues are to be settled.

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Reason: The sender has settlement profile FA_ABP, in which the "Actual costs are to be settled in Full" indicator is set.
Moreover, its status is TECO, which is also active on 27.09.2016. For this reason, actual costs are settled to the receiver
specified in the settlement rule.
Now the system checks whether variances are to be settled to costing-based profitability analysis. The result of this check
is "-", which means that variances are not to be settled.
Reason: The sender has a variance key, and also has the TECO status on 27.09.2016. However, in settlement profile FA_ABP,
the indicator “Variances to Costing-Based PA” has not been set. This is why the variances are not settled.

Finally, the system checks whether WIP is to be settled to FI. The result of this check is "+", which means that WIP is to be settled.
Reason: The sender is not able to carry revenue and has a results analysis key.

Then the costs are read again, and distributed to the receivers:

As a sample a debit has been drilled down in the tree under cost element 400000. The value posted in the period using this cost
element is 118,72 EUR once the settled costs have been deducted. The total costs of the year under this cost element that were not
yet settled are also 118,72 EUR. The settlement rule 100% to material is now applied to these costs. The result is 118,72 EUR are
settled from this cost element to material.

4. Report RKACSHOW

SAP note 28145 provides an overview of the use of the technical validation report RKACSHOW. The following explains how the
report can be used especially for settlement.

4.1 Settlement rule

The settlement rule is saved in the COBRA and COBRB tables. COBRA contains the settlement parameters and COBRB contains
the settlement rule.

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4.2 Costs/Revenues

The settlement rule reads the costs to be settled for an object from the CO totals tables (COSP and COSS). Depending on the
settlement transaction, the COSB table may also be important. Please see point 3 "Business Transactions for Actual Settlement"
in WIKI article General Information on Actual Settlement in Cost Object Controlling (CO-PC-OBJ). Generally the line items are not
important. COSL table contains the delivered quantity for production orders and the billed quantity for sales orders and WBS
elements.

4.3 Already settled values

For each of the CO totals tables listed above, there is a settlement table in which values already settled are saved as totals: COSPD,
COSSD, COSBD, COSLD. In settlement, the costs are read from the CO totals records and then the values from the D tables are
subtracted. This result is then settled. See point 4 "Tables updated during Actual Settlement" in WIKI article General Information
on Actual Settlement in Cost Object Controlling (CO-PC-OBJ).

5. Report RKA_SETTLE_TABLES_COMPARE
You can analyze the tables that are relevant to settlement using the RKACSHOW report. A typical analysis would include the debits
on the sender, the settled values, and the settlement documents. The RKA_SETTLE_TABLES_COMPARE analysis report has
especially been developed for settlement. This report displays tables relevant to settlement as well as additional functions. To
analyze an object, you start it by entering its object number (OBJNR). This object number can be easily found by starting report
RKACSHOW for the CO object. It is displayed in the header of RKACSHOW.

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The report provides the following three options, which can be selected using a radio button:

Analysis of CO Totals Records

Analysis of CO Line Items
Analysis of Settlement Documents

The following explains the analysis possibilities provided by these three options.

5.1 Analysis of CO Totals Records

To start, you can choose the data that is relevant for your purposes, and you can choose more than one data source at the same
time:

Actual Data from the COSP table

Actual Data from COSS table

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Results Analysis Data from COSB table
Variances from COSB table
Scrap from the COSB table

You can select one of the following processing functions for this data:

Debits minus data records

The system reads the debits from the data sources selected above, and the settled values that are in the corresponding
tables (for example, COSPD for COSP) are deducted. For each totals record key, the system displays a record with a
cumulated remaining value. It does not display credits from the settlement.
You can use this option to check which totals records still contain costs that have not been settled. This function can, for
example, be used when during closing of a sender an error message is issued informing you that there are still costs to be
settled.
Note: The field for the debit indicator is always empty. This is because, from Release 4.0 onwards, the system only writes
one data record with an empty debit indicator. This means therefore, that the totals records are added up and the data
records are deducted in the report, regardless of the debit indicator.
Debits (Cumulative)
Debits are read from the above selected data sources. For each totals record key, the system displays a record with a
cumulated amount. Credits from the settlement are not displayed.
Debits (Periodic)
The system reads the debits from the above selected data sources. For each totals record key, a record with all period
values is displayed. Credits from the settlement are not displayed.
Data Records
The system reads the settled values (that are in the corresponding data tables, such as COSPD for COSP) for the above
selected data sources. For each totals record key, a record with its cumulated value is displayed.
Credit from Settlement (Cum.)
The system reads the credits from settlements from the selected tables (records with debit indicator = A). It is cumulated
per totals record key.
Credit from Settlement (Per.)
The system reads the credits from settlements from the selected tables (records with debit indicator = A). It is displayed by
period for each totals record key.

5.2 Analysis of CO Line Items

If you suspect that postings were made to the last period after settlement was made, then you should always analyze the line
items. The entry date field (CPUDT) shows whether this was the case or not, so if necessary, you can sort using this date.

You can make an initial selection of data that is relevant to you. You can also select more than one data source at the same time:

Actual Data (COEP table)

Results Analysis Data (COEPB table)
Variances (COEPB table)
Scrap (COEPB table)

You can select one of the following display functions for this data:

Display without timestamp

The line items are selected from the corresponding table and displayed. The timestamp field is not displayed.
Display with timestamp
The line items are selected and displayed from the corresponding table The timestamp field is evaluated and made legible.
You should only select this option if the display without timestamp displays more than one posting with the same entry
date, and you need the entry time for them. This display option can take a significant amount of time.

5.3 Analysis of Settlement Documents

The settlement documents show which settlement was made for which amount, from which credit record. There are two display
options for the analysis:

Nonhierarchical display
The settlement documents are selected. For each settlement document/original totals record key/receiver (AUAK, AUAS,
AUAA tables), the settled costs are displayed in a row.
Hierarchy display
The settlement documents are selected. For each settlement document, the system displays a row (AUAK table). For each
original totals record key/receiver (AUAS and AUAA tables), the settled costs are displayed in a row, in order of hierarchy.
Analysis of posting date, period & dates in general: Check SAP KBA 2570819.

Related Documents

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 3/14/25, 2:40 PM
General Information on Actual Settlement in Cost Object Controlling (CO-PC-OBJ)

Related SAP Notes/KBAs

SAP KBA 2172375 - How we search [Video]

SAP note 373685 - Information: Previous settlements

SAP note 28145 - Using technical inspection report RKACSHOW

SAP note 2825861 - Performance of CO88: Settlement to material without exclusive lock

SAP note 2750967 - Parallel settlement to asset and material

SAP note 2865587 - Parallel settlement to asset and material - corrections

Errors during Settlement

KD256: There are no accrued amounts; settlement is not possible.

In general, RA data is calculated and settled until statuses TECO or DLV are active in the order. As
soon as any of these two statuses is active in the order, Settlement of actual costs takes place.

This error happens because there are missing calculations or customizing in Results analysis
(OKG* transactions). If the order (controlling object, in general) carries a Results Analysis key,
please, perform the following checks:

1. Check if WIP / RA data has been calculated for the order (data appears in table COSB).
2. Check if WIP has already been settled, so there will be no delta from the previous settlement
of RA data.
3. Check if the there are posting rules maintained for the CO Area, RA version... in the
customizing (OKG8).

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4. Check if any of the RA versions has flag "Transfer to financial accounting" set (transaction
OKG2).

If any of the checks above fails, KD256 error will correctly prompt.

KD213: Either the sender is already settled, or there is nothing to settle

When settling a CO Object for a specific posing period-fiscal year, the settlement code will be
executed if the balance of the order is not zero. Otherwise, KD213 will prompt. However, there are
some considerations depending on the settlement rule type (check this link for more detailed
information):

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FUL rule: If the order has a full rule, the balance of the order is actually zero.
PER rule: if the order has a periodic rule the following scenarios can take happen:

1. Total balance of the order may be zero.

2. The balance of the order is zero in the settlement period. For example, your current period
is 07/2017 and you are trying to settle period 06/2017 where there is no balance.
3. The balance of the order is zero in the settlement period but there is a remaining balance
from previous unsettled periods, which prevents the order to be closed. This unsettled
balance can be displayed via the execution of report COPCOBJ_REORGCHECK (find more
detailed information in SAP note 421710). In this case, if current period was 07/2017 and you
had a balance in 06/2017 and zero in 07/2017, you will obtain KD231 error when settling
07/2017 and the foreseen report would show the existing balance in 06/2017.

In case of FUL scenario, it is straightforward there is nothing to settle because the balance of the
order is 0. However for PER scenario, there are two possible solutions (if there is an unsettled
balance from previous periods) described the following SAP notes:

140672 - Info: Settle/reverse costs from previous periods

2397593 - How to settle costs from previous year (cross-year settlement)?

Note : To avoid this error with new orders, it is highly recommended to use a FUL rule towards a
PER rule when using periodic scenario. If this is not suitable for your production scenario, when
settling orders with PER rule, it is also recommended to use full settlement processing type
(option to choose at the beginning of the settlement transaction). If this option is selected, the
system will return an error if there is unsettled balance from previous periods, so you can correct
the relevant order/s, possibly by reversing the settlements of the current period and settling the
previous period again.

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KD216: No Settlement document exists

When running the settlement application for a controlling object (KO88, CJ88...) error KD216
prompts saying there is no settlement document. This error happens in two scenarios:

1. The sender was not yet settled. You are trying to reverse the settlement document of a
posting period/fiscal year which does not exist.
2. The sender was completely reversed. You are trying to reverse the settlement document of a
posting period/fiscal year, which has already been reversed.

KD258: Final delivery not entered for the order. It is not technically
completed.

When settling an order for a specific period-fiscal year, KD258 error happens because the order
has status DLV/TECO in a period after the settlement period. For example, your are settling
01/2018 & the order has any of these two statuses active in period 02/2018.

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Actually, the order is completed, either Technically or because of final delivery. Therefore, the
system expects to have any of the foreseen statuses active in the settlement period. These
statuses are stored in AUFK-IDAT2 (TECO) and AFPO-LTRMI (DLV). A more detailed explanation
about the logic to update these statuses can be found in SAP Note 530563.

In this scenario, the order can only be settled in a period where TECO/DLV status is active. As
possible workaround, you can revoke the status of technical completion of the production order
and post a GR with posting data in previous period (with the dates in the example above, period
01/2018) with quantity 0. Also, you should set the flag 'delivery completed'. As a result, the field
AFPO-LTRMI will be filled with a date in previous period.

KD285: Status DLV/TECO was reversed after settlement of period

mmm/yyyy.

When settling an order for a specific period-fiscal year, KD285 error happens because the status DLV/TECO has been reversed
since last settlement. In other words, the last time the order was settled it had status DLV/TECO and, currently, none of the two are
active for the order.

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This status is reset as a result of new material movements posted after the settlement, which cause a balance in the order. To
settle this new balance, please, reverse the previous settlement and settle the order again. Depending on your MM customizing or
if you are using the ML, there may not be possible to reverse the settlement in the settlement period, so you should post it into
current period.

For example, you settled the order in period 003/2018 and current period is 004/2018. Either for your MM customizing, either
because of using the Material Ledger with actual costing (after period-end closing, price control of previous period can be changed
from S to V after the revaluation step, so prior and current period will differ), you cannot reverse the posting of 003.2018 into this
same period. In such case reverse the settlement into current period as follows:

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KD527: Settlement document: The system issued the last document

number

When settling an order for a specific posing period-fiscal year, KD527 error happens because object CO_ABRECHN has reached
the highest number of the number range. Now, the system tries to start from the begining of the interval, which causes a
duplication of entries in table AUAK.

In this scenario, there are two options (see SAP Note 1870037) to solve this issue:

1. Archive and delete the existing settlement documents for which the settlement documents would be repeated.
2. Extend the number range. If this second option is chosen, please, extend the number range of CO_ABRECHN in
transaction SNRO. If the object has main memory buffering, reseting the buffers in all the instances of the system is also
necessary. Otherwise, the system will put in the buffer numbers that will cause again a dump because of duplicate entries.
To do so, please, follow these steps (SAP Note 741698):

During main memory buffering, you do not need to reorganize using transaction SNRO. Instead, use transaction SM56 to
reset the number range buffer:

Call transaction SM56.

Choose the menu option "Number Range Buffer -> Reset".

A dialog box in which you can enter all the information is displayed.
Caution: The generic entry is blank, not '*'.
You must also set the "Global Reset" indicator so that all instances are synchronized.

KD529: Correct your material distribution rules.

When settling a product cost collector for a specific posting period-fiscal year, KD529 happens when the settement rule has more
than one distribution rule to material:

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The settlement rule of a product cost collector can only have one distribution rule where, the receiver, must be the produced
material. In other words, unlike regular production orders, product cost collectors can only be settled to materials.

To solve this error, in general, you should remove the additional distribution rule/s from the settlement rule, leaving only the
material as receiver of the settlement. If it is not possible to delete this extra distribution rule/s, you can set the extra distribution
rule/s to 0% and the material rule to 100%.

CK122: Invalid posting period (please check your entry)

When settling a sender, the settlement period can be different than current period in FI but there
is a prerequisite: the posting period has to be after the settlement period and the settlement
period and posting period have to be in the same fiscal year, which must be the current one. This
means that a cross-year settlement is not possible in the standard product delivered by SAP.

Regarding this error there are two possible approaches to solve it:

Without a modification: See KBA 2165419 - Error CK122 happens in T-code: CO88/KO88
With a modification: See KBA 2397593 - How to settle costs from previous year (cross-year
settlement)? If you choose this option, please consider all the constraints suggested on it,
as it is not suitable for all the scenarios, for example, when settling fixed assets.

S/4HANA Product relevant: KBA 3143020 - CO88: Error CK122 in S/4HANA system

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CK426: Valuation type not set for material XXXX

This error happens because, at the time of the settlement, no valuation segment type exists for
the material. This segment is created automatically by the system at the time of the delivery.

During settlement the system would be trying to post costs to a material which does not exist.
Also, the order settlement contains no information on the valuation type which is essential for the
settlement.

SAP note 150605 explains the possible solutions to this error.

Orders cannot be closed - Deletion flag cannot be set - Error KO115 /

KO450 / KO451

KBA 1846994 - Error KO115 or KO450 when setting a deletion flag on an order

KBA 2540294 - Error KO450 is issued when closing WBS element

KBA 1771819 - Error message KO115 when perform Internal Order closure

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KBA 2053355 - Cannot close maintenance order due to error KO115

KBA 2053355 - Message No. KO115 when Order is set as Business Complete

KBA 2635744 - KO451 during order closure

KD205: Maintain the settlement rule of the sender

Check the long text of the error message

Check if the reports from SAP notes 518496 and 1073650 can be used to create the missing settlement rules:

SAP note 518496 - Report to create missing settlement rules

SAP note 1073650 - Co-products: Generating settlement rules

KD549: Debit with cost element & cannot be settled

To settle costs from previous years of a product cost collector you choose processing type "FULL Settlement" in
KO88/KK87
Error message KD549 "Debit with cost element & cannot be settled" is displayed
For a product cost collector with periodic settlement rule (settlement type PER), make sure that each period is settled
completely and no new cost postings happen in a period which is already settled.
In SAP standard it is NOT possible to settle costs from a previous period if settlements of later periods have already been
posted. Even with the modification of SAP notes 424139 and 2397593, it is only possible to settle these costs when all
settlements in the periods after that period are reversed document by document.
If this is not possible anymore, the balances of the previous periods must be cleared by manual repostings as explained in
SAP note 140672. Or it can be checked if the balances can be ignored.

SAP note 140672 - Info: Settle/reverse costs from previous periods

Coming soon

Further information coming soon

General Information about Settlement Types

Information about settlement types in Cost Object Controlling

Information about settlement types in Cost Object Controlling

Purpose
Overview

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1. Customizing for Production Orders / Process Orders

2. FUL Rule to Material - controlling on a lot
2.1 Settlement before status DLV / TECO
2.2 Settlement after status DLV / TECO
3. PER Rule to Material - controlling by period
4. PER/FUL Rule to Material and Sales Order / Project - MTO with valuated
sales order stock / project stock
5. PER/FUL Rule to Sales Order / Project - MTO with unvaluated sales
order stock / project stock
6. PER Rule to Material for Product Cost Collectors - Repetitive
manufacturing with controlling by period
7. PER/FUL Rule to Order Position - Joint Production
8. FUL Rule to Order - Collective orders without automatic goods
movements
Related Content

Purpose

The purpose of this page is to clarify the understanding of the system logic concerning the
settlement of production orders, process orders and product cost collectors.

Overview

The settlement rule for orders in CO-PC-OBJ is automatically created by the system, and is
normally of settlement type PER or FUL to material. This document deals with the different types
of settlement rules.

1. Customizing for Production Orders / Process Orders

The default rule for the settlement rule is specified in Customizing for each plant and order type
(transaction OKZ3 or OPL8). If the default rule is PP1, all production orders for this plant and
order type receive the FUL rules. If the default rule is PP2, all the production orders for this plant
and order type receive PER rules.

2. FUL Rule to Material - controlling on a lot

If an order has a FUL rule for settlement to material, then this is make-to-stock production which
is lot-related.

The actual costs are only settled once the order has been finally delivered or technically
completed. This means that the prerequisite for settling actual costs is the DLV status and the
delivery date (AFPO-LTRMI) being set before the last day in the settlement period. Alternatively,
the TECO is required and the date of the technical completion (AUFK-IDAT2) must be set before
the last day of the settlement period.
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2.1 Settlement before status DLV / TECO

For orders that have not yet been finally delivered or technically completed, the actual costs are
not settled. The balance remains on the order.

If required, you can calculate WIP with actual costs. To do this, you require a results analysis key
on the order. If you also want to post the WIP to FI you need to store posting rules in Customizing
for results analysis for all results analysis categories relevant to settlement (transaction OKG8),
and you need to select the "Transfer to Financial Accounting" indicator in the results analysis
version (transaction OKG9). The WIP posting is triggered by settlement. The balance remains the
same on the order even when WIP is created and settled.

2.2 Settlement after status DLV / TECO

If the order has been finally delivered (status DLV) or is technically completed (TECO), then the
actual costs are settled to stock or a price difference account, depending on the price control of
the material. The base quantity is always the total delivery quantity of the order. This also applies
to the settlement of subsequent debits.

If the material has price control S, then the actual costs are posted to the price difference
account.
If it is set to V, then the actual costs are settled to the stock account, if the stock is covered (See
note 2471234).
If the indicator is set to V, and the stock is NOT covered, then the actual costs are settled to stock
for the quantities that are still in the warehouse, the rest is settled to the price difference account.
Example: 10 pieces with variances of 150 USD are settled, and there are only two pieces left in the
warehouse. Then variances for these two pieces are settled to stock, being 30 USD. The remaining
120 USD are settled to the price difference account.
It is generally strongly recommended that you do NOT use the V price control indicator
for FINISHED products (for more information, see SAP notes 81682 & 2393887).

If you are using the account-based profitability analysis and the price difference account is a cost
element, then the price differences are automatically posted to account-based profitability
analysis. You can deactivate this logic using substitution (see SAP note 169688).

If a variance key has been selected on the order and variances have been calculated, then these
are transferred to costing-based profitability analysis. Prerequisites are listed in SAP note 35507.

If the order has posted WIP to FI before it reaches the DLV/TECO status, then the WIP is broken
down again in FI.

3. PER Rule to Material - controlling by period

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If an order has the PER rule for settlement to material, then it is periodic make-to-stock
production.
The actual costs are settled regardless of a status.
This means that you post the balance of the period (actual costs minus deliveries) to stock or the
price difference account. The base quantity is always the delivery quantity of the period.

If the material price control indicator is set to S, then the actual costs are posted to the price
difference account.
If the price control indicator is set to V, then the actual costs are settled to the stock account,
providing the stock is covered.
If the control indicator is set to V, and the stock is NOT covered, then the actual costs for the
quantities still in the warehouse are settled to stock, and the rest is settled to the price difference
account.
Example: 10 pieces with variances of 150 USD are settled, and there are only two pieces left in the
warehouse. The variances are settled to stock for these two pieces, being 30 USD. The remaining
120 USD are settled to the price difference account.
It is generally strongly recommended that you do NOT use the V indicator for FINISHED products
(for more information, see SAP note 81682).

If you are using account-based profitability analysis and the price difference account is a cost
element, the price differences are automatically posted to account-based profitability analysis.
You can also deactivate this logic using substitution (see SAP note 169688).

If you selected a variance key on the order, and variances have been calculated, then these are
transferred to costing-based profitability analysis. Prerequisites are listed in SAP note 35507.

If required, you can calculate WIP with target costs for the orders. To do this, you need to select a
results analysis key on the order. If you want to post the WIP to FI you need to store posting rules
in customizing (for results analysis) for all results analysis categories relevant to settlement
(transaction OKG8), and select the "Transfer to Financial Accounting" indicator in the results
analysis version (transaction OKG9). If you decide to calculate and post WIP, then the order
balance less the WIP from the period is settled instead of the whole order balance. The balance of
the order after settlement corresponds to the WIP.

4. PER/FUL Rule to Material and Sales Order / Project - MTO with valuated sales
order stock / project stock

A variant of the scenario described under point 2 and 3 is the make-to-order production with
valuated sales order and project stock.

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In this case, the settlement rule also specifies settlement to material. In the detail screen of the
settlement rule, the sales order item or WBS element is also entered. Period-end closing takes
place in the same way as the business transactions described above.

The only differences regarding settlement are as follows:

The make-to-stock warehouse inventory is not debited. Instead, make-to-order production is

debited.
If the price difference account is a cost element and if the sales order is a CO object, then
the price differences are automatically transferred to the sales order item or the WBS
element (see SAP note 183250).

5. PER/FUL Rule to Sales Order / Project - MTO with unvaluated sales order stock /
project stock

If a production order has a 100% rule for settlement to sales order/project, then it is unvaluated
sales order stock/project stock.

In this case, the order is treated like an internal order, meaning that it is settled periodically to the
sales order or project, regardless of the status.

For an unvaluated sales order stock, the sales order always has a CO object, and the goods receipt
on the production order is unvaluated. This means that the order is not credited when goods are
received. The entire order costs are transferred to the sales order or WBS element.

If you want to calculate WIP on the production order, and settle the order to the sales order or
WBS element after it has been finally delivered or technically completed, then you need to make
the usual settings (results analysis key, indicator in the results analysis version, posting rules),
and also set the "WIP on independent orders" indicator in the results analysis version (transaction
OKG9).

Variances are not settled to costing-based profitability analysis.

6. PER Rule to Material for Product Cost Collectors - Repetitive manufacturing with
controlling by period

Product cost collectors have a 100% PER to material settlement rule. In the detail screen of the
settlement rule the 005 strategy is displayed. This means that processing is slightly different to
processing for PER to material (see above).

The actual costs and credits are posted on the product cost collector from the goods receipt for
different production orders. The deliveries can go to different stock segments if the material has a
separate valuation, or if the material is produced in-house or make to order. During settlement,

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the value of the goods receipts for the period is dynamically calculated for the different stock
segments. The actual costs are distributed to the different stocks according to these values. If no
goods were received in a period, then the actual costs are posted to a separate price difference
account (account modification PRP). For more information, see SAP note 388457.

7. PER/FUL Rule to Order Position - Joint Production

Co-production is when two products are created simultaneously from the input materials. This
often takes place in the chemical industry, where an additional product is created with the main
product (e.g. in the production of automobile gas from oil). The SAP System differentiates
between by-products and co-products.
From a technical point of view, co-production is implemented in such a way that the order items
receive their own CO objects. This means that instead of a CO object for the production order, you
have N + 1 Co objects, so one for the order and N for the N co-products.

The value flow is as follows: The material consumption and activities are posted to the order
header, the goods receipts are posted directly to the order items. In period-end closing, the order
costs are initially posted proportionally to the items, using the preliminary settlement for co-
products (transaction CO8A, CO8B). The order items then settle to material. Further
information can be found in SAP note 402756 - Information: selection of orders in CO8A, CO8B.

When you create the production order, you create the following settlement rules for the above:

The order has settlement rules for its order items with equivalence numbers. These
numbers are taken from the material master of the main product (view MRP 2, button "co-
production") and can be overwritten.
The order items have settlement rules for 100% FUL/PER settlement to material. Therefore,
the order items behave like a normal production order with a material rule (see above).

This means that the order is settled periodically to its items regardless of the status. If the order
items have a 100% FUL rule to material, then the costs are only settled from the order item to
material when the order item and the order have the DLV status (all order items have been finally
delivered), or the order header has the TECO status. If required, you can calculate WIP on the
order items beforehand. TECO is set on the order HEADER level via CO02 or COHV. DLV is set on
the order items during material movement posting.

8. FUL Rule to Order - Collective orders without automatic goods movements

If a production order has a settlement rule for FUL settlement to another order, then it is most
likely to be a collective order without automatic goods movements. Collective orders are
hierarchies of production orders. The semi-finished products of the lower production orders are
used directly for the higher product.

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You can enter settings in the order type (transaction KOT2) to determine whether collective
orders are represented in the system with or without automatic goods movements.

Processing with automatic goods movements means that when goods are received on the lower
orders, a goods receipt of this semi-finished product is automatically posted on the next order. All
orders in the collective order have a settlement rule for 100% FUL settlement to material and
behave as described above, for CO purposes.

Processing without automatic goods movement means that the goods receipt of the lower orders
takes place on the next order, without going via the warehouse. The orders in the collective order
have a settlement rule of 100% FUL settlement to the higher-level order. This means that they
initially behave like normal internal orders, and periodically settle the actual costs to the higher-
level order. The settlement is always made using a consumption account (see SAP note 82150).
This account is written when you create the collective order in the COBRA-KSTAR field. The
settlement structure is not interpreted. If you want to create and settle WIP on the orders, then
the "WIP on dependent orders" indicator must be set in the results analysis version (transaction
OKP9).

Related Content

MTO Customizing at a Glance including technical view on tables and indicators

Information about the Settlement Rule in Cost Object Controlling (CO-PC-OBJ)

Overhead Calculation

Information about costing sheet for overhead calculation

Check this WIKI article:

Costing Sheet for Overhead Calculations

How to trace the overhead calculation?

Check this WIKI article:

How to trace an Overhead Calculation

Costing Sheet for Overhead Calculations

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Introduction
Structure
Calculation base
Overhead rate
Credit
Analyzing and Troubleshooting
List View in Costing Sheet Maintenance
Dialog mode during the execution
Data inconsistencies
Custom definitions
Other Resources/Helpful Notes

Introduction
Costing sheets defines the rules and figures for overhead calculation. Those are used for object based overhead calculations or
overheads through material costing. You can access all sheets available through transaction KZS2.

Note: In order to use the transaction, make sure that you always first select the line in the main table and then double-click the
corresponding object you like to see in the tree structure.

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Structure

Every costing sheet needs a calculation base, overhead rate and credit assigned in order to have a calculation. There can be totals
rows that are being used to generate subtotals or final totals.

Overhead rates and totals can use row reference to select which outcoming amounts shall be taken.

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Calculation base
Bases defines what is taken into account for the cost being used in the overhead calculation. There are two types of calculation
bases:

Cost center/activity types for production overhead costs

You can differentiate between fixed and variable costs for the calculation base. In this way, you can charge the fixed and variable
portions of the activity price differently for activity types.

Cost elements/origins for material overhead costs

For each controlling area, you can assign individual cost elements, intervals or cost element groups. Also single origins or intervals
can be defined and help that materials that are assigned to the same cost element can be separated for analysis purposes.

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Overhead rate

The overhead rate determines to what extent the percentage-based or quantity-based overhead rate should be applied to the
direct costs. It also specifies under which dependencies the overhead rate is to be applied (standard dependencies: overhead key,
controlling area, company code, plant, business area, order type, order category, profit center). Custom dependencies can be
created and used in overhead rates as well (*link*).

Credit

A credit specifies the credit object and cost element and is connected to an overhead rate. When there is a debit overhead posting,
the corresponding credit object is used for the credit posting. Cost elements need category 41 (special overhead).

Analyzing and Troubleshooting

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Incorrect overhead postings or unexpected figures are mostly caused by mistakes in costing sheets or custom definitions. The
following provides functionalities and tools that can help to find most errors in costing sheet and trace down what element is
causing unexpected results.

List View in Costing Sheet Maintenance

To get an overview about a costing sheet, there is a List View as a Tree available on the costing sheet maintenance. When you are
viewing a costing sheet, there is a button labeled ‘List’ available on top of the view maintenance.

This will show you all available elements with definition values and used controlling areas and you can use search for specific
objects. This can also get handy if you like to trace about calculation bases using the cost element of existing postings.

Dialog mode during the execution

The overhead processor has a dialog mode that can be used during every overhead calculation that is executed online. Before the
execution is finished, a screen is showing the whole overhead calculation using the costing sheet. This will provide you calculated
figures by most elements of the costing sheet.

You activate the dialog mode using the checkbox ‘dialog’ on all transactions for overhead calculation. However, there will be no
checkbox available on the mass execution reports and the material costing transactions. The only way to get the dialog mode there
is to debug function module K_SURCHARGE_CALCULATE and set internal variable called DIALOG with value ‘X’. The dialog screen
then will be showed when executed online (background execution is not supported).

Data inconsistencies

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With changes to the elements and dependencies used within a costing sheet, inconsistencies can occur. This can cause that the
overhead calculation does not take over changes in its actual posting. A standard report called RKZUKO00 provides an easy way to
find and correct all inconsistencies for all costing sheets available.

Report RKZUKO00 can be executed anytime in test mode to check if there are inconsistencies in the database. In real mode, those
gets deleted. Therefore it is recommended to always use the test mode first and check the summary of affected objects.

Custom definitions
Custom definitions can lead to incorrect results if they are not properly setup.

Dependencies can be created through transaction KGF4. If those dependencies are not correctly working, then mostly it leads to
that calculations bases will not collect any costs.

Also there can be custom implementations to adjust the calculation bases, overhead rates and credits during the execution
through user-exits. There are following user-exits available:

EXIT_SAPLKASC_001 for calculation bases

EXIT_SAPLKASC_002 for overhead rates
EXIT_SAPLKASC_003 for credits

More about checking on custom definitions on overhead calculations: tbc

Other Resources/Helpful Notes

Note 126551 - Composite note: Customizing of costing sheet (Summary of Notes for Costing Sheet Maintenance including
delivery of report RKZUKO00)

Note 116808 - Documentation enhancement COOM0001 (including all user-exits for overhead calculation)

SAP Help Documentation on Costing Sheets

How to trace an Overhead Calculation

Purpose
Overview
1. Getting Traces using an user parameter
2. Execute and review a Trace
Related Content
Related SAP Notes/KBAs

ATTENTION Please do also check SAP note 2065555 on new flow trace activation - Revaluation and overhead rates: Flow trace
activation

Purpose
How to trace an overhead calculation
This guide will help you to activate the overhead calculation trace which is available within all releases since ECC 6.0

Overview
Traces can be helpful to investigate how the overhead calculation has been performed internally. The Trace results will show the
major internal tables containing the debit and credit side that will be combined for the posting.

Unfortunately it cannot be activated as easy as settlement transactions using the program menu, but there is still ways to activate.

1. Getting Traces using an user parameter

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Traces for the overhead calculation will always be activated when you set an user parameter accordingly. If you only want to have
traces being activated for one execution, please skip this step.

While logged on at the system where you want to trace the overhead calculation, open the system menu at the top and choose
‘Own Data’ at the ‘User Profile’ folder:

You will get to the user data transaction for you current user. Change to the ‘Parameters’ tab (1) and enter a new parameter called
‘OVERHEAD_TYPE’ with value ‘T’ (2). After that save (3) and exit the transaction.

Important: Make sure to logoff and logon to the system again to ensure that the new user parameter is being loaded. When the
user parameter has been entered and saved correctly and a new logon to the system has been done, all is set to execute the trace.

2. Execute and review a Trace

If you have set the user parameter according to the previous step, you can just go on with the overhead calculation.

If you do not have set the user parameter, you need to enter a special OK code to run the overhead calculation with trace results.
When you entered your selection, enter OK code TRACE for normal execution and enter OK code STRACE for a reversal execution.

You will receive following popup:

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You will have following options:

• Yes: Will collect the trace until next object gets processed but this does not show any results.
This option is not recommended.
• No: This option should only be used to abort the entire trace. This will not only cancel the trace without showing the results, but
also initialize user parameter ‘OVERHEAD_TYPE’.
• Cancel: This will show the current trace results.

When using ‘Cancel’, you will be lead to the trace result of the current processed object which will look like this:

Related Content

Related SAP Notes/KBAs

SAP Note 211391 : Trace for overhead calculation

The trace functionality will be renewed. This will be released through an note that will also be listed here as soon as this is
available.

Performance Analysis and Optimization in period end closing

How to analyze and optimize performance issues in OBJ period end

closing?

How to analyze and optimize performance issues in OBJ period end closing?
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Purpose
!!! Check KBA 2364341 - OBJ period end closing performance optimization
at a glance !!!
Introduction
First Analysis Steps
General Performance Analysis
Job Logs, Spool Lists and Schedule Monitor
Performance Relevant Parameters
Object Selection
Internal orders
Logistical orders: Production orders, process orders, product cost
collectors
Known Performance Issues with SQL statements for DB selection of
logistical orders
Master data and status checks
Status checks
Schedule Manager and Work Lists
Transaction data
Parallelization
Locking problems
Analysis of long running jobs
Find the bottleneck
SAT, SE30 Runtime Analysis in parallel session
Important Transaction Codes
Related Content
Related SAP Notes/KBAs

Purpose

This document provides an overview on how to analyze performance issues with OBJ period end
closing transactions. It will give a guideline for the processing of performance issues and the
usage of the most common performance analysis tools. It also includes an overview of notes,
known program errors, performance issues and bottlenecks.

!!! Check KBA 2364341 - OBJ period end closing performance optimization at a glance !!!

Introduction

CO-PC-OBJ offers a number of period end closing transactions/reports, as for example

surcharge/overhead calculation, WIP calculation, results analysis, variance calculation,
settlement. These period end closing activities can be started for different kinds of objects:
internal orders, logistical orders (production orders, process orders), projects/WBS elements,
sales orders, maintenance orders, and more. The transactions and report names depend on these
objects. There are transactions for single object processing and for collective/mass processing.

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Customers often complain about performance issues and long run times. Long processing times
can have different root causes:

General performance problems on the customer system

Big number of objects to be processed
Organizational problems on customer side
Complex business scenarios
High document/data volume
Program errors: problematic select statements, unnecessary loops, inappropriate data
processing, unnecessary program parts, bad programming
Database problems, very big DB tables, missing indexes, old DB statistics
Customer Exits
Handling Issues, inappropriate usage of transactions/report parameters

In general, it is recommended to do a performance analysis in the sequence

1. First steps: check job logs, Schedule Monitor, general information from end user
2. Runtime Analysis
3. Debugging

First Analysis Steps

If an end user reports a performance issue, the first steps should be to find out which of the above
root causes may be involved. The end user should answer the following questions:

Are there specific performance problems with one or more transactions/reports, e.g.
collective settlement of production orders CO88? Or is there a general performance issue
with many transactions which indicates problems with system settings, system resources,
general system performance?
Did the runtimes suddenly get longer, e.g. in comparison with the runtimes in the last period
or before an upgrade or support package implementation? Or did the runtime gradually
getting longer in the last periods/years? Can it be explained with a gradually growing
number of objects and documents (transaction data volume, size of DB tables,…) on the
system?
Have new business processes, functionalities, changes in customizing or other changes
been implemented which could have resulted in the longer runtimes?
Have bottlenecks already been identified?
Is there a performance problem already in test run, or only in update run?
Is there already a performance problem in a single processing transaction?

General Performance Analysis

In case of general performance issues on the system, the incident should be handled by COE or
basis experts, Early Watch, etc. . They have much better knowledge about the system monitor and
performance tools.

Job Logs, Spool Lists and Schedule Monitor

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If a report has already been started and finished in background processing and the job name, user
or date is known, the job log and the spool list should be checked (Transaction SM37).

Example: Settlement Job

The job log already shows a lot of useful information:

Total runtime of the job

How much time took the sender selection?
Is the processing time getting longer for the same percentage of senders processed?

If e.g. a performance problem already occurs with the sender selection (object selection), a long
time will have passed between the message ‘Sender selection…..’ and the message ‘x Sender
selected’. Information about known problems with object selection can be found in the chapter
‘Object Selection’.

If the processing time is getting longer for the same percentage of senders processed, this could
indicate a problem with growing internal tables, loops etc.

The Spool List should at least show a basic list with some important information.

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Here the Processing category statistics is important. The statistics shows that most of the objects
had inappropriate status or category ‘No change’. From 2804 selected objects, only 46 objects
have been settled. In such a case, it should be checked if it is really necessary to select all these
objects.

The Schedule Manager Monitor, transaction code SCMO, should be used to check older job jogs,
compare runtimes of recent jobs and find general information about how the period end closing is
scheduled at your end.

Tipp: The Schedule Manager Monitor stores information about all CO-PC-OBJ period end closing
jobs (and other programs which have been connected) even if you don’t use the Schedule
Manager or even know that it exist! The Schedule Manager Monitor also keeps much information
of jobs for which an SM37 job log is no longer available because it has already been deleted!

Example: Schedule Manager Monitor SCMO

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The Schedule Manager Monitor can be used to find out if jobs with comparable number of objects
etc. have had shorter run times in the past. It gives information about how the run times changed,
how the number of selected objects has changed etc.

Performance Relevant Parameters

Most CO-PC-OBJ reports have the program logic:

1. Selection of objects
2. Master data and status checks
3. Processing of the objects: selection of transaction data (totals, line items,…), program
internal calculations (e.g. WIP calculation, variance calculation,…), comparison of old and
new data (is there a difference between the value of the previous period and the value of the
current period?), preparation of documents (if something has changed, the data will be
updated).
4. Generation and posting of CO documents and follow-up documents

The runtime of a period end closing report depends on

the input data volume (which objects are selected for processing, how much transaction
data is selected for the objects),
the processing complexity and
the output data volume (how much data is generated by processing the object).

Object Selection

CO-PC-OBJ reports can process different types of objects. The object selection logic and the
function modules for the object selection depend on the objects.

Long runtimes are often caused by the selection of too many old objects. Old orders which are not
used anymore, but still exist on the system, are selected and processed. The period end closing
programs check the status of the selected objects very early during processing. Processing for
orders with status ‘Created’ (CRTD, system status I0001), ‘Closed’ (CLSD, system status I0046),
or ‘Deletion Flag’ (DLFL, system status I0076) is stopped then. However, the status checks take
time, and if e.g. 10000 objects are selected, and 9000 of these objects have inappropriate status,
the program spends a lot of time with the status checks. This can be avoided when old objects
are deleted and archived frequently. A deletion flag can be set and revoked any time for old
objects, and depending on the object type, objects with deletion flag will not be selected at all
from the DB tables. This will save the time for the status check then.

Different period end closing reports can have different logics regarding the system status.

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Internal orders

Order category AUFK-AUTYP = 01. Master data is completely stored in DB table AUFK. A
selection variant for KO8G, RKO7KO8G is necessary. Selection variants offer various possibilities
to exclude orders from being selected. Status selection profiles can be used to exclude orders
with defined system or user status from selection. (Known Issues with selection variants, status
selection profiles?)

Orders with deletion indicator (AUFK-LOEKZ) will be selected from the database, but processing
will stop after status check.

Internal orders can be closed or flagged for deletion in collective processing with transaction
KOK4 or KOK2.

Logistical orders: Production orders, process orders, product cost collectors

Order categories AUFK-AUTYP 05, 10, 40. Master data is in AUFK, AFKO and AFPO.

The period end closing transactions for logistical orders are usually started for a plant. Some
reports offer more detailed selection options. E.g. settlement report RKO7CO88 can be started for
selected order types or order numbers/ranges.

System status and DB selection logic

Variance calculation: SAPMKKS0 FORM VIEW_VKKS0_LESEN. Note 66612 orders

with status CLSD (I0046), LOCK (status I0043), or which are flagged for deletion (field
AUFK-LOEKZ set, status DLFL I0076), or have a deletion indicator set (status DLT
I0013) will NOT be selected from the database.
WIP calculation, Settlement, Overhead Calculation: orders with deletion flag (field
AUFK-LOEKZ, status DLFL I0076) are NOT selected from the database.

The deletion flag for production orders can be set with transaction CO78 (Archiving of production
orders).

SAP Note 306576: COMPOSITE NOTE: performance overheads

SAP Note 393686: INFO: CO-PC-OBJ (Performance)

SAP Note 2420801: Status selection of period-end closing reports for production orders

Known Performance Issues with SQL statements for DB selection of logistical orders

There is a known performance problem with joined selection from the master data tables. If
object selection takes hours or takes significantly longer after an upgrade or basis support

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package, the problem could be in LCOSEF01 FORM ORDER_OBJNR_GET. The following select
statement can
take very long:

select (lt_dbfields)
FROM ( ( afko INNER JOIN aufk
ON afko~aufnr = aufk~aufnr )
LEFT OUTER JOIN afpo
ON afko~aufnr = afpo~aufnr )
INTO CORRESPONDING FIELDS OF TABLE lt_order_sel
FOR ALL ENTRIES IN lt_maufnr
WHERE afko~maufnr = lt_maufnr-aufnr
AND loekz IN lr_loekz
AND pkosa = space

This problem can be fixed with database specific hints (also release dependent) or by replacing
the select statement above with separate selections. The following notes could be applied:

SAP Pilot Note 2073728: CO Period-End Tasks: Performance issue with Sybase ASE
SAP Pilot Note 2001405:CO period-end closing: Performance problems with Oracle DB
SAP Pilot Note 1664736: CO43: Overhead calculation terminates with short dump
SAP Pilot Note 1504067: Performance problems in overhead calculation and settlement
SAP note 545932: Performance probl. in CO-PC-OBJ period-end closing: DB hints
SAP note 587278:Performance problems in overhead calculation and settlement

Other known performance issues with select statements:

SAP note 1592568: Settlement: Selection with MAUFNR takes a very long time
SAP note 740626: Cost Object Controlling: Performance Object selection
SAP note 2088295: COB Hierarchies: Performance in Period End Closing

Master data and status checks

When the object selection is finished, the objects are sorted and processed. Master data is
checked: e.g. important indicators like ‘Statistical Order’, ‘Revenue Postings’, control keys for
period end closing (Results Analysis key, Variance key, Costing Sheet). The result of these checks
decides how the further processing of the object is done.

Status checks

The SAP general status management (function group BSVA) is a functionality which allows a
transaction control. A business transaction (e.g. actual settlement KOAO, or actual overhead
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calculation KZPI,…) can only be carried out if no system status or user status forbids this
transaction and if at least one system status allows the transaction. The program has therefore to
check which system or user status is currently active for the processed object and if the business
action is allowed.

A general overview about system status is provided with transaction BS23:

A double-click on a status displays the transaction control:

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Status checks can be very time consuming if status buffer tables are not refreshed frequently in
mass processing. If runtime analysis shows that much time is spent in function modules of
function group BSVA (FM STATUS_CHECK, STATUS_CHECK_MULTI,
STATUS_CHANGE_FOR_ACTIVITY…), performance notes should be searched with key words
performance, status, status check, status buffer, STATUS_BUFFER_REFRESH together with the
report and transaction code of the period end closing program.

If an object has a status which does not allow e.g. settlement or other transactions, there will be
either an error message (status management message class BS or application message class) in
the message list. Or, in some cases, processing for the object is stopped without error message,
and there will only be a processing statistics on the result screen. In settlement, the processing
category shows how many of the selected objects have processing category ‘Not relevant’ or
‘Inappropriate Status’ and have therefore not been settled. For these categories, there is no
further information about the objects (order numbers etc.) and the status of these objects. The
modification of note 1428700 ‘Enhancing the status information for the settlement’ offers more
detailed information for the settlement programs .

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If a long running job spends most of the time with object selection and status checks for objects
which after all do not need to be processed, performance will be improved by better object
selection, deletion and archiving of old objects, and usage of status selection profiles.

Schedule Manager and Work Lists

Transaction data

The most important transaction data tables in CO are the CO document tables (COBK document
header, COEP and COEPB document lines) and the CO totals tables COSS, COSP, and COBK. The
totals tables summarize the many COEP line items which have identical keys. Almost all CO-PC-
OBJ period end closing reports are based on the totals tables and select the costs from these
tables. The number of total lines for an object therefore has several effects on performance:

The cost selection from the totals tables gets slower when the overall size of the totals
tables gets very big (millions of entries)
The size of internal tables often depends on the number of selected totals. More data has to
be processed, and loops at these internal tables take longer
The follow up documents can get bigger (more document lines), and processing of the follow
up documents takes longer

Performance issues can occur if the number of totals for an object (order, WBS Element,….) is
very big. The number of totals depends on the contents of the key fields. The most relevant key
fields which can cause a big number of totals are

COSP-, COSS-, COSB-KSTAR: cost element

COSP-, COSS-, COSB- HRKFT: origin (CO key subnumber) -> material number, funds,
functional area,…
COSS-PAROB: partner object

The number of different cost elements is usually not critical, in most customer scenarios the
number of different cost elements which are involved for one object is about 10-30.

The number of different partner objects in COSS can get big if, for example, there are many
different cost centers/activity types are involved in a production scenario, or if many different
orders settle to single WBS elements.

The CO key sub-numbers (COKEY) is a key field which combines different original information.
These are e.g. the fields in DB tables COKEY. These fields involve organizational units (functional
area, fund, grant, segment, budget period, production month), or the material number. The
organizational units are usually not critical because there is only a small number of different
functional areas etc. .

In production scenarios, the material number can cause many COSP totals. In the material master
data (transaction MM03), the view Costing 1 offers the indicator ‘Material Origin’. If this indicator
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is set, the material number will be updated in the CO subkey. Each combination of plant, material
number and all of the other COKEY* fields will be converted into a number which will be updated
in key field COSP-HRKFT. In production scenarios with many hundred different raw materials, the
number of COSP totals can get very big.

This can especially cause big performance problems and huge documents in settlement. If the
finished goods are delivered to different valuation segments or sales order segments, each of
these segments is a different settlement receiver. The number of document lines in the
settlement document is the product of the selected original total lines X number of settlement
receivers. In extreme cases, this can result in a document line overflow or in a big number of
splitted follow up documents.

If the number of total lines in the CO totals tables exceeds significantly several hundred lines per
object number, performance problems for almost all CO period end closing reports can be
expected.

If such big total line numbers are observed, it should always be checked with the customer if such
a high level of detail is really necessary. In general, a customer should always take care that he
does not work with critical settings which create a very high data volume.

SAP Note 612641: PCC settlement: Error F5727

SAP Note 718873: PCC settlement: Document overflow with error KD557

Parallelization

SAP generally recommends the usage of parallelization for the mass processing period end
closing reports. This recommendation can be found in many CO performance notes.
Parallelization will reduce the overall job run times in most business scenarios. However, in some
scenarios, the usage of parallelization must be optimized, e.g. by

Parallel Processing is started by entering a server group when the report is started. Some reports
have a parallel processing indicator; setting the indicator to ‘X’ will provide a field where the server
group can be entered. Alternatively the server group can be entered in the background processing
job parameters. If parallelization is used, the period end closing main program will start on the
server where the user started the report. In the main program, all objects will be selected for
processing. Then function module SPTA_PARA_PROCESS_START (function group SPTA) is called.
The main program creates groups of objects with defined package size (usually ~200 objects),
which are then processed in parallel on the servers of the server group. Server groups are
maintained with transaction RZ12.

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Depending on the system resources (number of servers, number of dialog processes on each
server, hardware,….), parallel processing can significantly reduce the overall processing times
because many objects are processed in parallel instead of sequentially. However, there can be
performance bottlenecks in the object selection, packaging logic or other program parts of the
main program, or performance problems on the DB update server, or on the enqueue server. In
such cases, parallelization will most likely not show the expected improvements.

Restriction of the number of work processes

In SAP standard, parallelization will use all available work processes of the servers. If there are too
many work processes due to parallel processing, the system load can get too high. As a
consequence, the number of processes for parallel processing should be restricted. This can be
done in general as described in note 1812322. Application specific (Report specific) restrictions of
the number of work processes are possible after implementation of note 1074098 (WIP
calculation, Revaluation, Overhead Calculation, Settlement). With the solution of note 1074098,
the customer can maintain the maximum number of work processes by creating entries in DB
table T811FLAGS. This number will then be used as a maximum number of work processes for the
relevant period end closing reports.

For variance calculation, note 1305475 implements the same solution. For Results Analysis, note
1444215 can be used.

For settlement, the modification of note 1173665 implements a more comfortable solution. The
user can enter the number of dialog processes in the technical parameters (number of work
processes) of the settlement report: Call transaction SE38, enter the settlement report
RKO7CO88 (or RKO7KO8G, RKO7CJ8G, RKO7VA88), and choose "Technical Settings" on the
selection screen of the relevant settlement report to display the technical settings. As of Release
6.04 Support Package 1, the modification of this SAP Note is part of the standard SAP system.

If note 1074098 is already implemented and note 1173665 should also be used, it may be
necessary to implement note 1173671 before implementing 1173665 to make the two notes
“compatible”.

In newer releases, the solution of note 1173665 is available in SAP standard. If note 1074098
should also be used, it is possible to use both solutions for settlement. In that case, the
settlement program will use the number of work processes for a settlement job from the technical
settings of the settlement report with highest priority. If no number is maintained here, the
number from table T811FLAGS is used.

Locking problems

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The CO-PC-OBJ period end closing reports create lock entries when started in update run.
Example: Settlement of orders creates a lock entry for the processed object number on DB table
COBRA and on DB table AUFK. Locks may also be set for external settlement receivers (V price
materials, assets).

Lock Table overflows

The number of objects which create lock entries at the same time depends on the number of
parallel processes for each job, the number of objects which are processed by each work process
(package size), and the number of jobs which are running at the same time. This can result in lock
table overflows (note 746138). Transaction SM12 shows a list of the current lock entries. If the
number of lock entries is too big, and the lock table configuration is already at a limit, the number
of locks can be reduced by a smaller number of work processes (see above) and by reducing the
package size for settlement with note 1512222. It should also be avoided to start too many
independent parallel running jobs. A known issue which occurs with lock table overflows when too
many orders settle to the same material is described in note 595823.

WAIT/Deadlock problems

If parallel running jobs/work processes lock the same objects (e.g. when several settlement
senders which are processed in different work processes settle to the same receiver material or
asset), the lock can be set only by the first enqueue request. The other objects will have to wait
until the work process is finished and the lock is released again. This can result in a situation
where many processes can be seen in the SM50 process overview with semaphore ‘WAIT’. Such
problems can also occur if there is a performance problem with the database updates. In extreme
cases, a Deadlock situation occurs.

Analysis of long running jobs

As explained previously in this document, the runtime of a period end closing report depends on
the input data volume (number of objects, transaction data volume), the processing complexity,
and the output data volume (CO documents and follow up documents). In ‘normal scenarios’, the
number of cost totals in the CO tables COSS, COSP, COSB is in a scale of 20-200 entries, and the
follow up documents (FI, CO, SL, …) have about 2 – 20 document lines each. In such a scenario, a
period end closing program can process several hundred to thousand objects per minute. When
parallelization is used, jobs for several hundred thousand objects can be finished in 1-3 hours.

The processing time of course depends also on the total size of the transaction data tables (if
there are already millions of entries in COSP and COSS, cost selection takes longer, etc.), the
hardware capacity, system load, etc…).

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If certain CO-PC-OBJ period end closing jobs have very long run times which cannot be explained
with the high number of objects or high data volume, and the general system performance is ok,
there might be a bottleneck which has to be identified. In such a case, the first thing which should
be checked is if object selection takes most of the time. If yes, the object selection chapter of this
document should be checked. If object selection takes only a few minutes, but processing runs for
hours and hours, a runtime analysis should be done for the running job. The questions in the
chapter ‘First analysis steps’ should be answered first before starting a runtime analysis.

A SAT/SE30 Runtime Analysis for a single transaction is only necessary if there is already an
example order which shows significant long processing time (> 10 seconds to minutes) which
indicates a problem somewhere.

Find the bottleneck

In many cases, a simple runtime analysis is already sufficient to find problematic source code.
This is shown in the following two Demo examples. If the problematic source code is identified,
note search should be done with the name of the Include or the problematic form routine or
function module. The note search may find the responsible note which has implemented this
problematic source code, and – if it is already a known issue – a note with a correction to fix the
performance problem. If the issue is not known yet (maybe the new source code is only
problematic in special cases or scenarios which have not been tested yet), the information about
the identified bottleneck is very important to route an incident directly to the responsible
developer and get a fix within a short time.

Demo Example 1: SE30 for KO88, one order, with manipulated source code (artificial bottleneck in
SAPLKO72)

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Start SE30:

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Press ‚Execute Button‘, start transaction KO88 in test run, after test run return to SE30 and press
‚Evaluate‘ Button:

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Runtime Analysis shows that mot time is spent in processing of ABAP coding. Press F5/Hit List
Button:

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If there is a simple program error or problematic source code, this should be found directly in the
SE30 hit list if the hit list is sorted by the columne Net (%). From here, menu ‘Goto -> Display
source code’ directly displays the artificial bottleneck. In the demo example, function module
MESSAGES_INITIALIZE is called 100.000 times.

Demo Example 2: SE30 for KO88, one order, with manipulated source code (artificial bottleneck in
SAPLKO72, this time a problematic select statement which selects all existing COEP line items
into an internal table):

This will have the following effect for the runtime analysis:

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Hit list:

The Net % time is the ABAP processing time only. Here the bottleneck is a database selection of a
lot of data, which takes much Gross %.

Menu ‘Goto -> Display source code’ immidiately displays the critical select statement.

If runtime analysis shows that most of the time is spent on the Database, as in demo example 2,
an SQL trace (transaction ST05) can be useful.

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A ST05 SQL trace for the demo example 2 settlement shows the following list:

Shift+F8 (Summarize Trace by SQL statement) shows the problematic selection:

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Menu Goto -> Display ABAP source will display the problematic select statement in the source
code.

SAT, SE30 Runtime Analysis in parallel session

If the performance issue occurs only in mass processing, a runtime analysis can be started when
the job is already running.

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If SE30/SAT is started in Parallel Session, the SM50 Process overview will be displayed. Here the
process of the running job must be found via user name and report name.

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If the process is identified, the runtime measurement can be started by setting the cursor on the
process line and press Shift + F7 (Start measurement button). Measurement should then be done
for some time (about 30 s to 1 min). Then go back to the SE30 start screen and evaluate.

One single measurement may not be sufficient to get a representative runtime analysis. At the
beginning of a mass processing run, object selection, pre-read of status, preparations etc. are
done. It may take some time until the job is in the object processing loop. Nevertheless, if a
runtime analysis shows a significant high Net % in the hit list which can be reproduced with a
number of subsequent runtime analysis measurements while the job is running, the bottleneck is
most likely identified.

Important Transaction Codes

SCMO Schedule Manager Monitor

SM37 Job Logs
RZ12 RFC Server Group Maintenance
SM12 Lock Entries
SM50 Process Overview
SE30 Runtime Analysis
ST05 Performance Trace

Related Content
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Related SAP Notes/KBAs

KBA 1578574: Bad performance in Variance Calculation

KBA 1580830: Bad performance in CO88 settlement transaction

KBA 1991171: Status CLSD on orders does not improve performance

SAP note 2825861 - Performance of CO88: Settlement to material without exclusive lock

SAP note 2750967 - Parallel settlement to asset and material

SAP note 2865587 - Parallel settlement to asset and material - corrections

BAdIs / Customer Enhancements

Information about BAdIs

BAdI KK_F_CHECK_OBJ_STAT - Enhanced Object Selection for Product Cost Collectors

The WIP calculation based on target costs or the scrap variance calculation for product cost collectors includes assigned
production or process orders which are already closed, delivered or technically completed. BAdI KK_F_CHECK_OBJ_STAT
(Enhanced Object Selection for Product Cost Collectors) can be implemented to exclude completed orders.

SAP note 2091623 - WIP at targets: Closed production orders are included in the determination of work in process or scrap
variances.

BAdI KKAG0001 - BAdI for results analysis to change the valuation basis and the results analysis data

SAP note 453827 - BAdI for results analysis

BAdI K_SETTLEMENT_1 - Change Selected Fields in FI/CO Document in the Settlement

BAdI K_SETTLEMENT_2 - BTA Callup in Settlement

BAdI K_SETTLEMENT_3 - Settlement: Define Settlement Rule

Information about Customer Enhancements / User-Exits

SAP enhancement KKAG0001 - Period costing in make-to-order production

EXIT_SAPLKKAG_001 - Customer-Specific Postprocessing of Auto. Calculated Results Analysis Data

EXIT_SAPLKKAG_002 - Customer-Specific Determination of Planned Values/Valuation Basis
EXIT_SAPLKKAG_005 - Customer-Specific Postprocessing of Plan Assignment of Dependent Objects

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SAP enhancement KKAG0002 - Cost Object Controlling for Make-to-Order Production
EXIT_SAPLKKAG_003 - Customer-Specific Postprocessing of Values from Table COSP
EXIT_SAPLKKAG_006 - Customer-Specific Postprocessing of Data from Table COSS

SAP enhancement KKAG0003 - Cost Object Controlling for Make-to-Order Production

EXIT_SAPLKKAG_004 - Customer Change to Results Analysis Cost Elements

SAP enhancement KKAG0004 - Results Analysis with Dynamic Items

EXIT_SAPLADK0_001 - Customer-Specific Postprocessing: CO Subkey Dynamic Items Results Analysis
EXIT_SAPLADK0_002 - Customer-Specific Postprocessing of Results Analysis with Dynamic Items

SAP enhancement KKAG0005 - Results Analysis

EXIT_SAPKKA08_001 - SAPKKA08: Customer-Specific Change of Selected Object List
EXIT_SAPKKA17_001 - SAPKKA17: Customer Changes to Selected Object List
EXIT_SAPKKA18_001 - SAPKKA18: Customer Changes to Selected Object List
EXIT_SAPLKKAG_007 - Customer-Specific Determination of Time Frame and Results Analysis Key
EXIT_SAPLKKAG_008 - Customer-Specific Enhancement of Results Analysis

SAP enhancement KKAG0006 - Enhancement for SAPKKA12

EXIT_SAPKKA12_001 - SAPKKA12: Customer-Specific Change of Setting Status Technically Completed
EXIT_SAPKKA12_002 - SAPKKA12: Customer-Specific Change of Setting Status Closed
EXIT_SAPKKA12_003 - SAPKKA12: Custom Setting of Final Delivery and Final Billing Statuses

SAP enhancement KKAG0007 - Results Analysis with Dynamic Items

EXIT_SAPLADK0_003 - Customer-Specific Use of DI to Results Analysis Transfer Interface (Stock)
EXIT_SAPLADK0_004 - Customer-Specific Use of DI to Results Analysis Transfer Interface (billed)

Miscellaneous
Cost Analysis explanation (KKBC_ORD)
S/4HANA information for Cost Object Controlling

Cost Analysis explanation (KKBC_ORD)

Known Issues in KKBC_ORD

KBA 2419455 - KKBC_ORD/CO03/COR3: Cost analysis plan/actual quantities and origin information missing

KBA 2416362 - CO03/COR3: Settlement of co-products missing, balance exist

KBA 2356348 - Display in Company Code currency by default with cost analysis
KBA 2346105 - Zero quantity in report KKBC_ORD, S_ALR_87013127
KBA 2053837 - Target Cost is not appearing in Report KKBC_HOE
KBA 1601433 - No Target Costs in transaction KKBC_ORD in a CO-Product Scenario
KBA 1601353 - Transaction KOB3 issues Message KB422 "No line items were selected"
KBA 1584291 - How to change the user-specific flag when editing layout of product costing reports

Explanation about costs

Check this WIKI article: coming soon

S/4HANA information for Cost Object Controlling

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General information

You want to know the list of HANA optimized transactions and reports for Controlling period end closing tasks:

task ERP tcode HANA optimized tcode HANA optimized report

Results Analysis KKAK KKAKH

WIP calculation at actual costs KKAO KKAOH SAPKKA07HBG

Variance Calculation (orders) KKS1 KKS1H RKKKS1H0

Settlement (orders) CO88 CO88H FCO_RKO7CO88H

Settlement (sales orders) VA88 VA88H FCO_RKO7VA88H

Settlement (projects) CJ8G CJ8GH FCO_RKO7CJ8GH

Known Issues

CO88 settlement issue

KBA 3143020 - CO88: Error CK122 in S/4HANA system

KKS1H & report RKKKS1H0

Please find supported functions and current limitations concerning KKS1H in SAP note 2027639 - KKS1H: Variance
Calculation for Production Order, Process Order and Product Cost Collector

KBA 2953462 - RKKKS1H0 issues error message FCO_KKS1H_MESSAGE004

SAP note 2634128 - RKKKS1H0: Selection with order ranges

CO88H & report FCO_RKO7CO88H

SAP note 2565620 - Transaction CO88H - Corresponding ABAP-report is missing

KKAOH & report SAPKKA07HBG

SAP note 2927329 - KKAOH SAPKKA07HBG performance improvement

SAP Pilot Release note 2685510 - SAPKKA07HBG: Selection for multiple plants

Revaluation of WIP at actual cost is not supported in KKAOH respectively in report SAPKKA07HBG - please use tcode
KKAO respectively report SAPKK07BG:
SAP note 2538965 - enhance KKAOH material leger check
SAP note 2907066 - Missing ML WIP documents in COMLWIPDISP

Event-based Overhead Calculation

The initial real-time overhead solution has been introduced for ECC 6.0 EHP4 only for some business transactions like e.g.
RKL. With S/4HANA, this has been extended to all business transactions as the real-time overhead will now be done within
the posting process. Before this extension the assigned business process took care of calling the overhead calculation

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itself.
With the extended real-time overhead solution, a new flag has been introduced to be able to only support assigned costing
sheet to be used for the transaction-based overhead calculation. Customizing transactions RTOHC01 up to RTOHC04 are
still being used and in addition the costing sheet needs also to be enabled.

Supportability Tools CO-PC-OBJ

Tool Purpose/Benefit/Objective Documentation

RKACSHOW It is the most important analysis report in CO. It is a join of all Note 28145
relevant CO tables for one CO object. One can analyse plan
costs, actual costs, target costs, WIP, RA data, variances etc. It
is called via tcode RKACSHOW or via SE38

RKABSHOW Display CO documents Available in R/3

RKAASHOW Display settlement documents Available in R/3

RKOABRNR This report analyzes incorrect number range settings for the Note 85957
settlement.

RKA_SETTLE_TABLES_COMPARE Report RKA_SETTLE_TABLES_COMPARE is used for analyzing Note 193586

settlement data. After settlement of a sender, you are unclear
on which expenses were settled or which expenses are still to
be settled.

COPCOBJ_REORGCHECK Its is a check report whether "Deletion flag" status can be set. Note 421710

SAPKKA12 This report is used to set CO status (e.g. TECO or CLSD) for KBA 1520867
sales orders in mass transaction.

SAPKKA13 Reverse Line Items of Results Analysis Available in R/3

SAPKKA14 WIP/Results Analysis: Compare Controlling and Financial Available in R/3

Accounting

RKZUKO00 Correction report for costing sheet: Inconsistencies in the Note 175853
database tables of the costing sheets are frequently caused by
incorrect or incomplete transports. RKZUKO00 eliminates
these inconsistencies as far as possible.

ANST Replicate a transaction or program and get a trace with all the Note 1818192. Available as of
ABAP objects used/executed during the replication. Once the release 740 SAP Basis
trace is generated, you have the options to: Component and included in
Automated Support Package in releases 700,
1) Search for SAP Notes.
701, 702, 731
Note
2) Problematic Custom Coding.
Search
3) Missing Customizing Entries.
Tool
4) List of ABAP objects to start debugging.

PANKS A new button has been added to the Performance Assistant in Note 2096401. Released with
order to enable context sensitive SAP Notes and KBAs search. note 2020356 and included in
Support Package in releases 700,
701, 702, 710, 711, 730, 731, 740 of
SAP Basis Component.

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Debugging with a shortcut Can´t enter /h at a pop up. 'Generate a Short Cut' , (Type: Available In R/3
'System Command', Command: '/h', Location 'Desktop'). Drag
and drop the icon from your desktop to the pop up.

RKSE16N_CD When entries in tables are changed using SE16N, the system Available In R/3
writes change documents. Report RKSE16N_CD helps to know
if some entry was manually changed in a table.

SE91 Where used list for a message number helps to display the Available In R/3
"suspicious" code to start root cause analysis when debugging
isn´t possible.

[PAT03] This table contents the date when a system was upgraded to Available In R/3
some support package. SE16, table PAT03, enter SAPKH* for
field 'PATCH', execute, display field 'IMPLE_DATE'.

Check FI period determination Tip: If don´t remember the name of fm Available In R/3
FI_PERIOD_DETERMINE , It is easier to test in a system with
FB01 changing the posting date and keep an eye on field Period
and Year to interprete complex entries at T029B.

How we search [VIDEO] Best search strategy for notes and KBAs KBA 2172375

General Documentation - CO-PC-OBJ

SAP Help Portal information

Please find information in SAP Help Portal here

Frequently asked questions - CO-PC-OBJ

FAQ Actual Settlement

Check this article:

FAQ in Actual Settlement

FAQ WIP - Results Analysis

Check this article:

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FAQ in WIP - Results Analysis

FAQ in Actual Settlement

General Questions

SAP note 173909: Info: Costs should be settled not at all or only partially

SAP note 373685: Information: Previous settlements

SAP note 197561: Information on settlement: Messages despite zero balance

SAP note 314936: Currency type in the controlling area

SAP note 119428: Controlling area: Currency type 20 or 30

SAP note 422606: Goods receipts valuation (Goods receipt reversal) for order for standard price controlled material

SAP note 367927: Differences between results analysis and settlement

SAP note 313454: Info: Default value for settlement type

KBA 1846670: KO88: KD560 'No source assignment found for cost element ...'

Performance
SAP note 38855: Information on settlement: Performance improvements

KBA 1580830: Bad performance in CO88 settlement transaction

KBA 2364341: OBJ period end closing performance optimization at a glance

Settlement of costs from previous periods

SAP note 140672: Info: Settle/reverse costs from previous periods

KBA 2165419: Error CK122 happens in T-code: CO88/KO88

Reversal of settlement
SAP note 372630: Information: Reversal for settlement

SAP note 359814: Info: Settlement Reversal Cannot Be Reversed

Settled values/amounts
SAP note 27922: Info: Settlement types PER and FUL and quantity settlement to receiver

SAP note 72429: Information: Roundings during settlement

SAP note 201445: Info: Currency translations in settlement

SAP note 158953: Settlement in parallel currency not the same as FI debit

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SAP note 50249: KO88 No settlement despite amount rule

SAP note 330001: Info: Settlement by amount

SAP note 389991: Settlement list: Sender amount < > receiver amount: order with PER rule, WIP at target costs

Production orders/process orders/product cost collectors/co-production

SAP note 63339: Account determination during order settlement

SAP note 82150: Account determination order settlement in collective order

SAP note 35507: CO88: Variances are not settled – Prerequisites for settling variances

SAP note 189325: Info: Settlement rule for settling variances into CO-PA

SAP note 183250: Price differences on sales order item/project stock

SAP note 81682: Price control V for semi-finished and finished products (not recommended)

SAP note 388457: Settlement of product cost collectors as of Release 4.5

SAP 402756: Information: selection of orders in CO8A, CO8B

KBA 1853850: Error message KD557 Settlement Document too large

KBA 1866599: Error message KD529 is issued when you settle a product cost collector with T-code:KK87

KBA 2000964: Error message M8783 is issued in settlement T-code CO88

KBA 2170450: Error F5522 is issued in T-code KO88

Sales orders/WBS-elements
SAP note 111309: INFO: Transfer of quantities into CO-PA

SAP note 441994: RA: reconciliation Profitability Analysis / Financial Accounting - Which results analysis categories get settled to
CO-PA?

Reorganization/Errors KO115, KO450, KO451, KD276

SAP note 76354: Information: Settlement after results analysis - Why a project cannot be closed? Error KO115 is issued!

SAP note 421710: Check report whether "Deletion flag" status can be set

SAP note 193586: Analysis program for settlement (RKA_SETTLE_TABLE _COMPARE)

SAP note 118853: Settlement: KD276 as customizable message

KBA 1983669: KO115: relation between DLFL commitment in project actual costs

KBA 1846994: Error KO115 or KO450 when setting a deletion flag on an order

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FAQ in WIP - Results Analysis

Customizing
SAP note 328424: Changing results analysis cost elements

SAP note 18472: Unassigned plan or actual values

SAP note 525009: Manufacturing orders for WBS elements in results analysis

SAP note 194746: Incorrect status during results analysis

SAP note 200646: RA: Cumulation of actual costs/actual revenues

SAP note 382468: Results analysis: Messages KJ243, KJ246, KJ248

SAP note 209220: Valuation method: Project structure

SAP note 190789: Valuation method: Sales order structure

SAP note 322359: Valuation method: Parameter 'Overall plan'

SAP note 19418: Manual Results Analysis: Supplement to the Documentation

Collective processing
SAP note 110232: User-defined error management for WIP calc.results analysis

SAP note 336202: Results analysis and background processing

SAP note 336172: Collective processing results analysis

SAP note 83562: Performance in results analysis of sales orders

Individual processing
SAP note 16128: Display of planning data in results analysis log

SAP note 19418 - Manual Results Analysis: Supplement to the Documentation

Status determination

SAP note 530563: WIP calculation: Status DLV and TECO

SAP note 194746: Incorrect status during results analysis

SAP note 370110: CJC1: missing documentation

SAP note 351421: Derivation status final billing with SD item summarization

SAP note 364169: Status FNBL and DLV w/ sales order with structure

KBA 1520867: How to use Program SAPKKA12 - additional information on report handling

Results analysis data

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SAP note 394083: Apportion reserves for imminent loss on RDVL/RDVA

SAP note 365075: Reserves for unrealized costs for WIP calculation

SAP note 38070: Revenue in excess of billings/revenue surplus per line ID

SAP note 208160: Fixed portion should generally be equal zero

SAP note 366864: RA data when archiving production order for SD order

Results analysis with dynamic items

SAP note 185215: Results analysis method 14: Update

Error messages
KBA 2176639: Error message KJ161 issue when run T-code: KKAX

SAP note 302823: Message KJ161

SAP note 210306: Message KV028

SAP note 388686: Message MQ307

SAP note 382468: Results analysis: Messages KJ243, KJ246, KJ248

KBA 2253355: SG106 happens in Result Analysis

Integration CO/FI:
SAP note 367927: Differences between results analysis and settlement

Customer enhancements
SAP note 26002: Customer enhancement 1 of results analysis, documentation

SAP note 26957: Customer enhancement 2 of results analysis, documentation

SAP note 67423: Customer enhancement 3 of results analysis, documentation

SAP note 67793: Customer enhancemnt 4 of results analysis, additional documentation

SAP note 78420: Customer enhancement 5 for results analysis, additional documentation

SAP note 78410: Customer enhancemt 6 for results analysis, additional documentation

SAP note 198983: Customer enhancement 7 for results analysis, additional documentation

SAP note 191546: Customer enhancement 1 for results analysis with dynamic items: documentation

SAP note 189716: Customer enhancement 2 for results analysis with dynamic items: documentation

Performance
KBA 2162901: KKAJ low performance

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KBA 2341444: KKAO low performance

Settlement

SAP note 389991: Settlement list: Sender amount < > receiver amount: order with PER rule, WIP at target costs

Other

SAP note 331886: Work in process for orders with revenue

SAP note 181060: Daily results analysis for sales orders/documents

SAP note 314354: Results analysis program termination due to long runtime or memory overflow - plan values in period 9999

SAP note 332104: Results analysis: Cross-company valuation

Profit Center Accounting (EC-PCA)

WELCOME TO THE PROFIT CENTER ACCOUNTING EXPERT CONTENT PAGE

What is EC-PCA?

Profit Center Accounting (EC‑PCA) lets you determine profits and losses by profit center using either period accounting or the
cost‑of‑sales approach. It also lets you analyze fixed capital and so‑called "statistical key figures" (number of employees, square
meters, and so on) by profit center. Consequently, you can calculate all key figures commonly used in cost accounting (return on
investment, cash flow, sales per employee, and so on).

A profit center is a management‑oriented organizational unit used for internal controlling purposes. Dividing your company up into
profit centers allows you to analyze areas of responsibility and to delegate responsibility to decentralized units, thus treating them
as "companies within the company".

Profit Center Accounting

FAQs in defaul profit center in sales order
General
Enhancement PCA00001
Enhancement PCA00002
Enhancment PCA00003
How to archive actual line item with archiving object EC_PCA_ITEM
How to check the archived line items from report
How to delete duplicate data in table GLPCA and GLPCT
Message Types in PCA for outbound processing
User exit EXIT_SAPLPCRW_002
Why planned revenues in sales order are not taken into PCA
Profit Center Master Data
How to create profit center master and profit center group
How to delete profit center group from PCA standard hierarchy
How to transport profit center
KE5Z - Additional text fields missing
SAP Profit Center relevant T-codes

Access SAP For Me Visit the SAP Community View Product Documentation

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Useful Links

For SAP official product information, you can visit the Support Portal

FAQs in defaul profit center in sales order

Q: In sales order, there is profit center field in tab "account assignment". Where does this profit center come from.

A: Sales order takes profit center from material master view Sales: Plant/General data. Profit center is assigned in (material
master record) MMR in sales orgn 2 view. If you assign there automatically it will trigger in the sales order. In the item data ->
account assignment tab . This profit center is used in MMR because, once you do OR- LF- F2 for that material this material value
has to trigger in the profit center in FI properly. After doing F2 and when you save a the Invoice i.e., F2, automatically an accounting
document gets generated along with a profit center document also gets generated if you have assigned profit center to your MMR.

Q: In material master, I created profit center XXXX for part A, but it shows different profit center when create sales order. Why?

A: Please check t-code 0KEM for any sales order substitution for profit center. In general, the material master profit center
defaults to profit center, but at sales order you can change the profit center otherwise check 0KEM.

Q: Even we have a FI setup through which the profit center on sales order is not defaulted from material master, but it is
showing another value. How to analyze this kind of issue?

A: Please check OKB9, or It is in substitution, Go to transaction GGB1 and see under the node profit center accounting. You will see
that you can substitute the profit center in the sales order using substitution. You can define your own here.

Q: How to make field Profit Center in the line item level of the sales order to mandatory?

A:You can do this by transaction variant. Goto tcode SHD0, give t code as VA01.
Make a transaction variant and make the fields mandatory.
or Please include the Field Profit Center (PRCTR) in incompletion Procedure of Sales Order Item.
So without Profit Center Entry Sales Order will be incomplete.
Goto T.code OVA2 copy the procedure you are now working with and add the field vbap-Prctr. In VUP2 you can assign your new
procedure to your item category.

General

Enhancement PCA00001
Overview
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This enhancement let you make changes to documents before transferring them to Profit Center Accounting. For example, you can
overwrite individual fields in the document. This does not actually change the original documents. Rather, it changes the lines from
the original documents which are of relevance for Profit Center Accounting.

This directly affects the updating of data. Therefore, test all changes carefully, to ensure consistent updating of data in Profit
Center Accounting.

Enhancement PCA00001 contains the following function modules:

o EXIT_RCOPCA01_001

Called up with transaction 1KEK to transfer payables and receivables.

o EXIT_RCOPCA30_001

Called up with transaction 1KEH to transfer material stocks.

o EXIT_RCOPCA32_001

Called up with transaction 1KEJ to transfer WIP.

o ZH>EXIT_RCOLPC02_001

Called up to transfer CO actual data.

o EXIT_RCOLPC02_002

Called up to transfer CO plan data.

o EXIT_RCOLPCRW_002

Called up to transfer actual data from Materials Management, Financial Accounting and Sales and Distribution。

For further information, see the documentation for the individual function modules.

Enhancement PCA00002
Overview

With this enhancement, you can set up derivation of a representative material for transferring data from Sales and Distribution or
from Materials Management. Enhancement PCA00002 features the function module EXIT_SAPLPC41_001.

Functionality

This user exit lets you set a representative material.

You call up this exit when transferring actual data from Materials Management and from Sales and Distribution.

The following parameters exist:

I_KOKRS: Controlling area
I_DATE: Posting date
I_STEP_ID: Identity of the derivation step
(see properties of the derivation step)
I_ITEM: Source fields and/or target fields of the derivation steps
already carried out
MATNR (material number)

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BWKEY (valuation area)
BUKRS (company code)
KOKRS (controlling area)
REP_MATNR (representative material)
USERTEMP1 (temporary field)
USERTEMP2 (temporary field)
USERTEMP3 (temporary field)

The following parameters must be set using the exit:

E_ITEM: fields corresponding to I_ITEM
(in this structure you have the option of setting
field REP_MATNR according to your logic; you can and should
transfer all other fields from parameter I_ITEM)
E_EXIT_IS_ACTIVE: Set this field as 'X' if you want to transfer the data
from this exit

Parameters

I_KOKRS
I_DATE
I_STEP_ID
I_ITEM
E_ITEM
E_EXIT_IS_ACTIVE

Exceptions

DERIVATION_FAILED

Function Group

XPCA

Enhancment PCA00003
Overview

This enhancement is used to derive the partner profit center. In the standard system, with external deliveries, it is possible
to derive to and from affiliated companies. Affiliated companies are ones
for which a partner company is entered in the master record.

Function exit EXIT_SAPLPC45_002 allows you to activate partner profit center derivation for other business partners.

The derivation rules for the profit center are defined in Customizing. These rules can also be enhanced using the function
exits EXIT_SAPLPC41_002 for purchasing and EXIT_SAPLPC41_003 for sales.

How to archive actual line item with archiving object EC_PCA_ITEM

Go to T-code: SARA and input archiving object : EC_PCA_ITM, then click "Write".

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Create variant and save it, then go back

Click "start date" and schedule the job

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click button Job and check the job details

Once the job is finished correctly, then you can do the next steps (delete, etc).

Please notice that only the records of table GLPCA are deleted, then you can do archive for the records of table GLPCT, otherwise,
you will get error.

How to check the archived line items from report

How to check the archived line items from report

After you execute write step with archive object EC_PCA_ITM in T-code:SARA, users want to check the details line items from
archive file before to delete them from table GLPCA.

Here is the step about how to check the archived line items.

Go to T-code: KE5Z

Menu=> Extras =>Data Source =>Select "Archive"=>use "Select files manually": Archiving Object: EC_PCA_ITM=> click "Select
Archive files"=>double click your archive file=>continue

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How to delete duplicate data in table GLPCA and GLPCT

Purpose
This wiki is intended to explain how to delete duplicate data in table GLPCA/GLPCT if a customer/vendor reconciliation account
has been maintained with default profit center.

Overview
For one of the vendor reconciliation account, a default profit center was maintained in transaction 3KEH and the documents which
are posted against this G/L account are transferred directly to GLPCA tables with origin object type 35. This account was
maintained in transaction 3KEH by mistake and while executing periodic transaction 1KEK, business observed that this G/L
account is not updated (see SAP Note 81374 - FAQ: Reconciling receivables/payables with FI in classic PCA).

If reconciliation accounts were contained in transaction 3KEH and were removed, duplicate data occurs after you execute
transaction 1KEK. The reason for this is how the transaction of a period is calculated (see SAP Note 81906). During the transfer of
receivables and payables, only origin object types (RHOART) 24 and 25 are taken into account.

How to delete the duplicate data

If online data (origin object type 35) has to be deleted, you can do this using the report from SAP Note 1174360 at company code
level.
You can delete the single PCA documents by considering of SAP Notes 1641241 and 1641334.

See also
SAP Note 81374 - FAQ: Reconciling receivables/payables with FI in classic PCA
SAP Note 81906 - Error analysis for transactions 1KEH, 1KEI, 1KEJ, and 1KEK (periodic stock transfer to classic Profit Center
Accounting)
SAP Note 858363 - Organizing/reorganizing Profit Center Accounting

Message Types in PCA for outbound processing

For outbound processing, The following message types are used.

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User exit EXIT_SAPLPCRW_002

Overview

The user exit EXIT_SAPLPCRW_002 was designed in the SAP Standard to make changes to the PCA document posted to PCA. It
was not designed to make updates on customer own tables or other application.

Functionality

This user exit lets you change the way data is updated in Profit Center Accounting.
This exit is used to transfer data from Financial Accounting, Materials Management, and Sales and Distribution.

All the data from FI, MM and SD is transferred via the same interface structure, which is known as the FI/CO document. The FI/CO
document contains header data, item data and currency lines.

Each time the user exit is accessed, the system transfers all FI/CO documents edited using the process, together with their
document headers (table T_ACCHD), lines (table T_ACCIT) and currency lines (T_ACCCR).

Notes

Note that this function module gives you a broad range of possibilities for changing Profit Center Accounting documents. The
changes which you make here will only take effect in Profit Center Accounting, and will not affect other FI/CO documents.

You should be very careful when making changes. This is necessary to ensure that data is updated consistently in EC-PCA.

You should pay particular attention in the case of customer modifications, as these differ to the SAP standard in the way that data
is updated.

If you use the customer exit wrongly, leading to inconsistencies in the data, you are responsible, as the system does not check your
changes once you have called up the function module.

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Further information

Using the transaction for enhancements (CMOD), you can create an enhancement project and maintain the function exit.

The SAP enhancement which you use for this is PCA00001.

For informatin about how to maintain customer modifications, see the extended help for transaction CMOD.

Parameters

T_ACCHD

T_ACCIT

T_ACCCR

Why planned revenues in sales order are not taken into PCA
Within the SAP Standard, it is not foreseen to take over the planned revenues on Sales Order to PCA.
When you create a Sales Order the activity "SDOR" is used.
This activity is NOT maintained in table T886PCA (transaction. 0KEO) and can also not be maintained in this table.

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That's why this posting is not taken over to PCA in Online or by running transaction 1KE0.

Profit Center Master Data

How to create profit center master and profit center group

Profit center is an organization unit in accounting that reflects a management-oriented structure of the organization for the
purpose of internal control.

Example

In a company we have different plants and each plants are responsible for the product produced or the services they render. If you
want the company be divided into different responsibility areas based on plants then each plant should be created as a profit
center. At month end or year end, you can derive P/L account in PCA and balance sheet as on that date. This allows you to analyze
areas of responsibility and delegate responsibility to decentralized units.

The profit center can be created with reference to an existing master data. The reference master data can be from the same
controlling area or a different controlling area. To copy a profit center, put the name of reference profit center and controlling area
under tab "copy from" in transaction code KE51.

How to create/ change/ display/ delete Profit Center

You can do this by using transaction code KE51 or by using following path: SAP menu-> Accounting-> Controlling-> Profit Center
Accounting->Master Data-> Profit center. You need to firstly set the controlling area. To reset the current controlling area, please
use transaction code OKKS. While creating a profit center, you need to assign it to the right company code and profit center group.

To allow posting to a profit center, you need to activate it by pressing the Activate button which is on the top of the creation screen.

The transaction for Change is KE52, for Display is KE53 and for deletion is KE54.

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Display changes to PCA master data

You can display all the changes that happened by using transaction code 6KEA.

How to create profit center from the maintenance screen of PCA standard hierarchy creation

PCA standard hierarchy is a tree structure that contains the entire profit center and groups used under one controlling area. You
can create PCA master data by using transaction code KCH5N.

To create a profit center, you need click on the create option and click on profit center by having the cursor on a group under which
you want to create it. Save it and then activate it.

How to create PCA group for reporting

You may want to group all profit centers related to a company code for reporting purpose. In standard hierarchy you have created
your entire profit center for different company codes assigned to controlling area. The assignment does not give you the desired
result. Therefore you can create PCA group for your company code by using transaction code KCH1.(Change is KCH2 and display is
KCH3)

Steps to create a PCA group

Write a description to your group By using "same level" button, you can assign groups at the equal level of another group.
By using "lower level" button, you can assign groups to the lowest level of another group, which are called sub groups.
Selecting a PCA group or sub group, click on "profit center" tab to get assigned the profit center masters.

How to delete profit center group from PCA standard hierarchy

How to delete profit center group from PCA standard hierarchy.

Purpose
The purpose of this page is to clarify the understanding of the system logic and requirements in relation to delete profit center
group from PCA standard hierarchy for which the assigned profit centers already have transaction data posted.

Overview
A profit center has to be assigned to the SAP Standard hierarchy at any time. A group from the standard hierarchy MUST NOT be
deleted when a profit center is assigned. Furthermore you cannot delete a profit center which already has transactional data. If you
would delete the profit center group and the profit centers assigned even though there is still transactional data available, it will
not be possible anymore to report these profit centers.

Section
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Please proceed as follows to delete profit center group from PCA standard hierarchy.

1. Manually re-post the data on the profit center to be deleted to another profit center which will be still valid
2. After all profit centers where manually reposted, you can delete the transactional data with trx. 0KE1 or report
RPCA_DEL_BUKRS for this profit center.
3. Then the profit centers can be deleted with KE54 and after all profit center are deleted, you can remove the profit center
group from the profit center standard hierarchy.

How to transport profit center

Overview

Always transport the following objects together to avoid inconsistencies in the target system:

The standard hierarchy and the profit center groups represent logical sets of profit centers. Transporting these sets separately
could lead to inconsistencies if the corresponding profit centers (master data) do not exist or are incorrect in the target system

In this IMG activity, you choose the master data that you want to transport to the target system. The master data objects are
dependent on the controlling area.

The R/3 System places the selected objects in a transport request. You can then transport the data to the target system using the
transport functions.

You can transport the following objects:

Profit centers
Standard hierarchy
Time-based fields
Profit center groups

Substitutions for sales orders

Steps:

1) Go to T-code: 0KEQ;

2)Select profit center, standard hierarchy and profit center groups;

3) Click button "include in request";

4) Create a new request with the white paper icon;

5) Enter a short description and save;

6) Press green tick;

7) Now choose the request which you have created in step 4);

8) Press green tick twice.

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KE5Z - Additional text fields missing

KE5Z - Additional text fields missing:

In case that you want to have the fields for Name of customer, Name of vendor, Text of Origin object and text of Activity, you can
modify KE5Z report RCOPCA02 by the following modification. Please note that these fields are not provided in the SAP Standard
as the read of these fields can lead to enormous performance problems - even though the fields are not included in the display
variant.

&--------------------------------------------------------------------
*& REPORT RCOPCA02
&--------------------------------------------------------------------
...
text1(60) TYPE c,
text2(60) TYPE c,
oldkokrs LIKE glpca-kokrs,
oldracct LIKE glpca-racct.
text1(60) TYPE c,
*>>>> START OF INSERTION <<<<
data: oldrhoart like glpca-rhoart,
oldactiv like glpca-activ,
oldlifnr like glpca-lifnr,
oldkunnr like glpca-kunnr,
ld_activ_ktext like t022t-txt,

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 3/14/25, 2:40 PM
ld_lifnr_ktext like lfa1-name1,
ld_kunnr_ktext like kna1-name1,
value like dd07l-domvalue_l,
ls_dd07v type dd07v.
*>>>> END OF INSERTION <<<<<<
...
DATA: BEGIN OF i_glpca OCCURS 0.
INCLUDE STRUCTURE rpca2.
*>>>> START OF INSERTION <<<<
data: lifnr_ktext like lfa1-name1,
kunnr_ktext like kna1-name1,
rhoart_ktext like dd07v-ddtext,
activ_ktext like t022t-txt.
*>>>> END OF INSERTION <<<<<<
...
OTHERS = 2.
IF sy-subrc NE 0.
CLEAR ls_rpcak.
ENDIF.

ENDIF. "ENDAT

<glpca>-racct_ktext = ls_rpcak-ktext.
ENDLOOP.
*>>>> START OF INSERTION <<<<
sort i_glpca by lifnr.
loop at i_glpca assigning <glpca>.
if <glpca>-lifnr <> oldlifnr and not <glpca>-lifnr is initial.
oldlifnr = <glpca>-lifnr.
select single name1 from lfa1
into ld_lifnr_ktext where lifnr = <glpca>-lifnr.
if sy-subrc ne 0.
clear ld_lifnr_ktext.
endif.
endif. "ENDAT
<glpca>-lifnr_ktext = ld_lifnr_ktext.
endloop.

sort i_glpca by KUNNR.

loop at i_glpca assigning <glpca>.
if <glpca>-KUNNR oldKUNNR and not <glpca>-KUNNR is initial.
oldKUNNR = <glpca>-KUNNR.
select single name1 from kna1
into ld_KUNNR_ktext where KUNNR = <glpca>-KUNNR.
if sy-subrc ne 0.
clear ld_KUNNR_ktext.
endif.
endif. "ENDAT
<glpca>-KUNNR_ktext = ld_KUNNR_ktext.
endloop.

sort i_glpca by activ.

loop at i_glpca assigning <glpca>.
if <glpca>-activ oldactiv and not <glpca>-activ is initial.

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oldactiv = <glpca>-activ.
select single txt from t022t
into ld_activ_ktext where langu = sy-langu
and activity = <glpca>-activ.
if sy-subrc ne 0.
clear ld_activ_ktext.
endif.
endif. "ENDAT
<glpca>-activ_ktext = ld_activ_ktext.
endloop.

sort i_glpca by rhoart.

loop at i_glpca assigning <glpca>.
if <glpca>-rhoart oldrhoart and not <glpca>-rhoart is initial.
oldrhoart = <glpca>-rhoart.
value = <glpca>-rhoart.

call function 'DD_DOMVALUE_TEXT_GET'

exporting
domname = 'HOART'
value = value

LANGU = ' '

BYPASS_BUFFER = ' '

importing
dd07v_wa = ls_dd07v

RC =

.
if sy-subrc ne 0.
clear ls_dd07v.
endif.
endif. "ENDAT

<glpca>-rhoart_ktext = ls_dd07v-ddtext.
endloop.
*>>>> END OF INSERTION <<<<<<
...
&--------------------------------------------------------------------
*& FORM FIELDCAT_FILL
&--------------------------------------------------------------------
...

Herkunftsobjektart

ADD 1 TO i.
CLEAR afield.
afield-col_pos = i.
afield-fieldname = 'RHOART'.
afield-no_sum = 'X'.
afield-ref_tabname = 'GLPCA'.
afield-no_out = 'X'.
afield-sp_group = '7'.

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APPEND afield TO t_fieldcat.
*>>>> START OF INSERTION <<<<

Herkunftsobjekttext

add 1 to i.
clear afield.
afield-col_pos = i.
afield-fieldname = 'RHOART_KTEXT'.
afield-no_sum = 'X'.
afield-ref_tabname = 'LFA1'.
afield-ref_fieldname = 'NAME1'.
afield-seltext_s = 'Origin obj.'(z01).
afield-seltext_m = 'Desc. Origin obj.'(z02).
afield-seltext_l = 'Description Origin object'(z03).
afield-sp_group = '7'.
append afield to t_fieldcat.
add 1 to i.
*>>>> END OF INSERTION <<<<<<
...

G/L-Vorgang

ADD 1 TO i.
CLEAR afield.
afield-col_pos = i.
afield-fieldname = 'ACTIV'.
afield-no_sum = 'X'.
afield-ref_tabname = 'GLPCA'.
afield-no_out = 'X'.
afield-seltext_s = 'Vorg.'(t31).
afield-seltext_m = 'Vorgang'(t32).
afield-seltext_l = 'Betriebswirt. Vorgang'(t33).
afield-sp_group = '1'.
APPEND afield TO t_fieldcat.
*>>>> START OF INSERTION <<<<

Vorgangstext

add 1 to i.
clear afield.
afield-col_pos = i.
afield-fieldname = 'ACTIV_KTEXT'.
afield-no_sum = 'X'.
afield-ref_tabname = 'T022T'.
afield-ref_fieldname = 'TXT'.
afield-seltext_s = 'Activ'(z04).
afield-seltext_m = 'Desc. Activ'(z05).
afield-seltext_l = 'Description Activity'(z06).
afield-sp_group = '1'.
append afield to t_fieldcat.
add 1 to i.
*>>>> END OF INSERTION <<<<<<
...

Debitor
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ADD 1 TO i.
CLEAR afield.
afield-col_pos = i.
afield-fieldname = 'KUNNR'.
afield-no_sum = 'X'.
afield-ref_tabname = 'GLPCA'.
afield-no_out = 'X'.
afield-seltext_s = 'Debitor'(d01).
afield-seltext_m = text-d01.
afield-seltext_l = text-d01.
afield-sp_group = '8'.
APPEND afield TO t_fieldcat.
*>>>> START OF INSERTION <<<<

Debitorentext

add 1 to i.
clear afield.
afield-col_pos = i.
afield-fieldname = 'KUNNR_KTEXT'.
afield-no_sum = 'X'.
afield-ref_tabname = 'KNA1'.
afield-ref_fieldname = 'NAME1'.
afield-seltext_s = 'Cust.'(z10).
afield-seltext_m = 'Desc. Cust.'(z11).
afield-seltext_l = 'Customer name'(z12).
afield-sp_group = '8'.
append afield to t_fieldcat.
*>>>> END OF INSERTION <<<<<<
...

Kreditor

ADD 1 TO i.
CLEAR afield.
afield-col_pos = i.
afield-fieldname = 'LIFNR'.
afield-no_sum = 'X'.
afield-ref_tabname = 'GLPCA'.
afield-no_out = 'X'.
afield-seltext_s = 'Kreditor'(k01).
afield-seltext_m = text-k01.
afield-seltext_l = text-k01.
afield-sp_group = '8'.
*>>>> START OF INSERTION <<<<

Kreditorentext

add 1 to i.
clear afield.
afield-col_pos = i.
afield-fieldname = 'LIFNR_KTEXT'.
afield-no_sum = 'X'.
afield-ref_tabname = 'LFA1'.
afield-ref_fieldname = 'NAME1'.

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 3/14/25, 2:40 PM
afield-seltext_s = 'Cred.'(z07).
afield-seltext_m = 'Desc. Cred.'(z08).
afield-seltext_l = 'Creditor name'(z09).
afield-sp_group = '8'.
append afield to t_fieldcat.
add 1 to i.
*>>>> END OF INSERTION <<<<<<
...
&--------------------------------------------------------------------

SAP Profit Center relevant T-codes

PROF - profit center Accounting
KE5Z - profit center: Actual Line Items
9KE0 - Create profit center Document
3KEH - EC-PCA:Addit. Bal. Sheet/P+L Accts
3KEI - Derive Default profit center
FAGL3KEH - General Ledger: Default profit Ctr
KE51 - Create profit center
KE52 - Change profit center
KE53 - Display profit center
KE54 - Delete profit centers
KE59 - EC-PCA: Create Dummy profit center
2KES - profit center: Balance carry forward
KCH1 - Create profit center Group
KCH2 - Change profit center hierarchy
KCH3 - Display profit center hierarchy
OKEON - Change Standard Hierarchy
KCH5N - EC-PCA: Change Standard Hierarchy
2KEE - profit center: Totals Records
S_AC0_52000888 - Payables: profit center
S_AC0_52000887 - Receivables: profit center
S_ALR_87013343 - profit center: Receivables Cross Application
S_PL0_86000030 - G/L Account - Balances
9KE9 - Display profit center Document
8KES - Derive Partner profit center: Purch.
8KER - Derive Partner profit center: Sales
OKB9 - Change Automatic Account Assignment
OBC4 - C FI Maintain Table T004V
OBBH - C FI Maintain Table T001Q (Document)
GGB1 - Substitution Maintenance
1KEK - EC-PCA:Transfer Payables/Receivables
GLPCA - Display Table GLPCA
GLPCT - Display Table GLPCT
CEPC - Display Table CEPC
OB41 - Maintain Accounting Keys
1KEF - EC-PCA: Parameter acutal postings
0KE5 - EC-PCA: Controlling Area Settings

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