Cost Center Accounting

SAP CO Cost Center Accounting Configuration Guide

The controlling area configuration is the starting point of configuration in the CO module, which will then enable us to configure profit center, product costing and then the profitability analysis module.

In this e-book, cost center accounting configurations will be covered.

  • Organizational Structures

    • Maintain Controlling Area, Maintain Number Ranges for Controlling Documents, Maintain Versions

  • Multiple Valuation Approaches/Transfer Prices

    • Maintain Currency and Valuation Profile, Assign Currency and Valuation Profile to Controlling Area

  • Production Start-Up Preparation
  • Cost Element Accounting

    • Create Batch Input Session

  • Reconciliation Ledger

    • Activate/Deactivate Reconciliation Ledger, Define Adjustment Accounts for Reconciliation Posting

  • Cost Center Accounting

    • Define Standard Hierarchy, Create Cost Center, Create Activity Types

  • Cost Center Planning

    • Define Distribution, Create Assessment Cost Elements, Define Allocation Structures, Define Assessment, Define Splitting Structure

  • Actual Postings

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How to Create Activity Type [KL01] in SAP ?

In SAP, Activity types are activities provided by a cost center. They are measured in units of time or quantity. Activity quantities are valued using a price. For e.g. Activity types are used to allocate machine cost from Machine cost center to the production orders. An activity input from a sender cost center signifies that a receiver (usually another cost center or a capital project) is drawing on the resources of the sender cost center

Find below download links for step by step guide and screenshots to learn creating activity types in SAP using transaction code KL01.

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An Extensive SAP FICO Enduser Manual

Previously, I have shared with you a few Enduser Guides for SAP Finance/Controlling (FICO) modules. Similar to them, the following 314 pages document is also a good compilation for endusers for understanding their daily procudures. This extensive FI/CO end-user document describes the need of each process, gives procedure overview for that process, shows required procedural steps, explain the fields in that process screen with screenshots. You will find end-user guides for the following submodules:

  • Public Sector Management
  • General Ledger
  • Accounts Payable
  • Accounts Receivable
  • Asset Accounting
  • Cost Center Accounting

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SAP Overhead Cost Controlling End-User Training Manual

Controlling (CO) offers information to decision makers for planning, measuring and monitoring enterprise’s operations and performance. It represents the internal accounting view of an organization.

All data relevant to cost and revenue flows are created from various sources such as Financial Accounting (FI), Materials Management (MM), and Sales and Distribution (SD). The cost and revenue flows will update FI and simultaneously create equivalent postings into CO.

As part of this process, the system assigns the costs and revenues to different CO account assignment objects like cost centers, orders, or profitability segments. The relevant accounts in FI are managed in CO as cost elements or revenue elements.

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