Allocation of Costs in CO (SAP Library

Allocation of Costs in CO

Use

In this process, you will see the effect of allocating costs from one cost center to another on cost of sales reporting. In Controlling, you manually allocate costs from an administrative cost center to a sales and distribution cost center. The allocation of costs is a standard part of closing operations. In this example, we will only simulate one allocation for demonstration purposes.

The allocation of costs that is restricted to Controlling has no effect on your profit and loss statement since no accounting documents are generated in Controlling. In the second part of this demonstration, we will explain how the allocation is reflected in your financial reports.

Procedure

Call up the transaction as follows:

Menu Path	Accounting ® Controlling ® Cost Center Accounting ® Actual Postings ® Manual Reposting of Costs ® Enter
Transaction Code	KB11N, KALC

If the Set Controlling Area dialog box appears, enter the following data, then choose :

Field	Europe	North America
Controlling area	1000	2000

If this dialog box does not appear, choose Extras ® Set Controlling Area and enter the required controlling area.

Enter the following data:

Field	Europe	North America
Document date	Today’s date	Today’s date
Posting date	Today’s date	Today’s date
CCtr (old) (Cost center (old))	1000	1000
Cost elem.	430000	430000
Amount	500.00	500.00
CCtr (new)	3140	3140

Choose

The system tells you that the document was posted. This document is only a Controlling document, since FI has not been affected by this posting yet. You normally carry out all of your cost allocations as part of closing operations, and then run a program that synchronizes the CO transactions with FI. This means that FI postings were carried out to reflect the allocations carried out in CO.

Choose

Call up the transaction as follows:

Menu Path	Accounting ® Controlling ® Cost Element Accounting ® Actual Postings ® Reconciliation with FI
Transaction Code	KALC

In this process, you have transferred costs from one cost center to another. You then reconcile FI with CO by running a program that reads the reconciliation ledger and makes transfer postings to FI. If you run this program, you can only use the controlling area and period as selection criteria. In a demonstration environment, that means that you have to be very careful not to affect the examples of other users. The reconciliation ledger is not only used in this example, but also in processes that are restricted to the use of the reconciliation ledger.

Enter the following data:

Field	Europe	North America
Controlling area	1000	2000
Period	Current period	Current period
Fiscal year	Current year	Current year
Test run	Do not select	Do not select
Detail list	Select	Select

Choose

If a dialog box appears, confirm it.

The system displays the totals records that were posted to FI. Your posting record is included in both of the following totals records. To display your CO document, you can select one of these items.

CoCd	BA	FA	PaCC	TPBA	G/L account
1000 or 3000	9900	0400	1000 or 3000	7000	430000
1000 or 3000	7000	0300	1000 or 3000	9900	43000

Run the report described in Running the Report for the Profit and Loss Statement.

The transfer of your CO document is now reflected in the profit and loss statement. The costs were transferred from Administrative Costs to Sales and Distribution Costs.

Choose

until the overview tree appears.