Defining the Percentage Method (SAP Library - Period-End Closing (CO-OM-CCA))

Defining the Percentage Method

Use

The percentage method of accrual calculation distinguishes between cross-controlling area data, which you maintain in an overhead structure, and controlling-area related data, such as base cost elements, overhead rates and credit objects.

The following section summarizes the most important steps for defining the percentage method. For detailed information on defining an overhead structure, see the Implementation Guide (IMG) for Controlling under Cost Center Accounting and the sections:

Planning ® Planning Aids ® Accrual Calculation ® Percentage Method

Actual Postings ® Period-End Closing ® Accrual Calculation ® Percentage Method

The following rules apply when you define the percentage method:

To which base cost elements does the overhead apply?

This information is stored in the base rows.

Under which cost element is the overhead posted?

This information is stored in overhead rows.

How high is the overhead rate?

This information is stored in overhead rows.

Which credit object (cost center or internal order) is to be credited?

This information is stored in overhead rows.

The structure, and the rules entered to calculate accrual, are very similar to those used in the Product Cost Controlling component (CO-PC). Therefore, you can also use this structure in accrual of costing-based costs.

The following example illustrates an overhead structure for accruals of vacation bonuses.

Example

The accrual calculation for vacation bonuses can appear as follows:

Row no.	Costs	Overhead	Amount	Row Type
010	Labor costs		200,000	Base row
020	Vacation bonus	10% on top of labor costs	20,000	Overhead row
030	Holiday bonus	10% on top of labor costs	20,000	Overhead row
040	Annual bonus	5% on top of labor costs	10,000	Overhead row

Activities

To define accrual cost calculation with the percentage method:

Defining overhead structures

The overhead structure links all parts of the percentage method. It contains calculation bases, overhead rates, assignments, the accrual cost element, and the credit object.

Note

You create the overhead structure during Customizing. Per controlling area, you can maintain the data required to do this both within the application component and from Customizing.

Determine assignments

You set the controlling area and the processing methods for which the overhead structure is valid.

Note

When you maintain controlling area dependent data, the R/3 System offers only those overhead structures in which assignments exist for the corresponding controlling area.

Note

You can define only one overhead structure per controlling area. If you require more structures in order to create different versions of accrual calculations, you can work with substructures.

Specify calculation base

The calculation base includes all the cost elements receiving overhead postings.

Specifying overhead rates

You must determine the validity period of the percentages serving as overhead rates. You must also assign a dependency to each overhead rate (see: Defining Custom Dependencies).

Note

If the business area financial statement active, you need to specify the overhead rates per business area.

Determine credit/allocation

You use the credit key to define:

The accrual cost element used to apply the accrual amount allocated

the credit object ( cost center/ internal order)

Steps 1 and 2 refer to the overhead structure definition, meaning the framework. As a rule you define an overhead structure during Customizing of the R/3 System. Steps 3 through 5, however, belong to data maintenance for the structure, which is usually carried out in the application component.

See also:

Maintaining Overhead Structure Data