Logistics - General (LO)

In cost-of-sales accounting, overhead costs are reported according to the functional areas in which they are incurred.

All objects in Controlling must be assigned to a functional area:

• Cost centers are assigned through the cost center category
• Orders are assigned through the order type
• WBS elements are assigned through the project type profile
• Cost objects (still open; probably production)
• Profitability segments are assigned to the functional area Sales and Distribution
• Profit centers are derived through account assignments

The reconciliation ledger receives the information necessary to enable it to post to accounts in Financial Accounting.

For allocations within overhead or from overhead to direct costs, a functional area change is taken into account in the form of debits and credits. The functional area shown in the P+L statement, therefore, is not the functional area of the original account assignment but the functional area in Controlling after allocation.