Purpose
Period-end closing in Overhead Cost Controlling is part of the work carried out at period-end throughout the entire organization.
The tasks required at period-end, and the sequence in which they must be carried out, depend on what system functions you use and which cost accounting method. This topic describes the basic elements of period-end closing. The explanations assume that you are using all the features available.
Implementation Considerations
Before you can close a period in Overhead Cost Controlling, the data transferred to this component from other application SAP System components must be complete. In particular, all postings in Financial Accounting (FI) that are relevant to Cost Accounting must have been carried out.
This means, for example, that:
You are not allowed to lock all accounts, as period-end closing in Overhead Cost Controlling sometimes requires postings to be made Financial Accounting.
Features
Transferring of Statistical Key Figures from the LIS
To ensure that all primary costs and revenues from other components have been posted to Overhead Cost Controlling, it is advisable to start by updating the statistical key figures. Statistical key figures are used as the basis for allocations. This update can occur, for example, through a transfer of the key figures from the Logistics Information System (LIS).
Periodic Repostings/Accrual Calculation
After this, you use
repostings to adjust any values that are incorrect or had been posted to allocation cost centers for reasons of simplification. Then the primary costs are distributed according to their source. The primary costs can now be used as the basis for the accrual calculation of valuation differences and additional costs.Periodic Allocations
Secondary allocations then occur. Using the appropriate allocation or settlement method, the costs are allocated between the business objects of Overhead Cost Accounting and to the cost objects of Product Cost Controlling (CO-PC).
Splitting
When all the costs have finally been assigned to the cost centers, you use
splitting to assign the activity types to the cost centers. This is the basis for calculating the prices of the activity types based on actual costs. Using the actual prices, you can perform an actual price valuation of the activity produced by the cost centers.Variances
After splitting you can analyze the
variances of the actual costs from the target costs. These variances lead to cost center under- or over-absorption. The variances of the production cost centers and the costs of the sales and distribution and the administration cost centers are transferred to Profitability Analysis (CO-PA). In CO-PA, the overhead costs can be assigned to any level of the contribution margin scheme. This is the final step in actual cost accounting. You should now lock the period against all postings.Reconciliation with Financial Accounting
If there is a need for reconciliation between Controlling and Financial Accounting, the relevant allocations are made in FI using the
reconciliation posting.The system then lists the period-end closing tasks in a logical sequence:
Follow-up costs can be dealt with by repeating the processing for the given period.