Posting Overheads in FI to a Cost Center 

Use

In this process, you post salary costs for the managers of the following areas:

· Finance

· Marketing

· Production

You will see how you can post to the same cost element in different cost centers. The values are displayed in different items in your profit and loss statement. The salaries of the managers of Finance and Marketing are displayed as operating expenses; the salary of the Production manager is displayed as cost of goods sold.

In this example, you post the Production manager's salary to a cost center. To complete the repetitive manufacturing example, you have to apportion the Production manager's salary to all orders open for a specific period. When production is offset against inventory, these salary costs would be part of the inventory valuation. We will not carry out this integration in order to demonstrate that you can post to a cost element, and to show that the value concerned can appear in different items in the profit and loss statement.

Procedure

  1. Call up the transaction as follows:
  2. Menu Path

    Accounting ® Financial Accounting ® General Ledger ® Document Entry ® Others ® General Posting

    Transaction Code

    F-02, FB03

  3. Enter the following data:
  4. Field

    Europe

    North America

    Document date

    Today’s date

    Today’s date

    Type

    SA

    SA

    Company code

    1000

    3000

    PstKy (posting key)

    50

    50

    Account

    176500 (Wages and salary clearing)

    176000 (Salaries and wages payable)

  5. Choose .
  6. Enter the following data:
  7. Field

    Europe

    North America

    Amount

    20,000.00

    20,000.00

  8. Choose .
  9. Choose G/L item fast entry.
  10. To close any information dialog boxes that appears, choose .

  11. Enter the following data:
  12. Field

    Line

    Europe

    North America

    PK

    1

    40

    40

    Account

    1

    430000

    430000

    Amount

    1

    6500.00

    6500.00

    Cost ctr

    1

    2100

    2100

    PK

    2

    40

    40

    Account

    2

    430000

    430000

    Amount

    2

    9000.00

    9000.00

    Cost ctr

    2

    3140

    3140

    PK

    3

    40

    40

    Account

    3

    430000

    430000

    Amount

    3

    4500.00

    4500.00

    Cost ctr

    3

    4275

    4275

    Since the posting key and account number are identical for all the items, you only have to enter them for the first item. If you do not enter them in the other fields, the values are copied automatically from the first item.

  13. Choose .
  14. Make a note of the document number.
  15. You can display this document by choosing Document ® Display.
  16. You can see the functional areas that the individual items were posted to.

  17. To display an expense item, double-click on the item.
  18. Choose More.
  19. In the dialog box, choose .
  20. The combination of functional area and cost element determines where the individual amounts appear in the profit and loss statement.

  21. Run the report described in Running the Report for the Profit and Loss Statement. You will see that the expense items posted were allocated to different items in the profit and loss statement.
  22. · The salary of the Finance manager is included under Administrative Costs.

    · The salary of the Sales and Distribution manager is included under Sales and Distribution Costs.

    · The salary of the Production manager is included under Difference in Production Costs.

  23. Choose until the overview tree appears.

In the Exit Editing dialog box, choose Yes.