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 Example for General Cost Object with Cumulative Time Base

Cost Object Controlling for a Special Telecast

Suppose a television station wants to use the SAP system to manage the costs for a special telecast. The television station does the following:

  1. The station first creates a general cost object for the telecast. This general cost object contains the following information:

    • Name of the program

    • Person responsible for the telecast

    • Business area the program is assigned to

    • Currency in which the costs will be carried

  2. The station calculates the planned costs for the telecast by creating a unit cost estimate containing the following information:

    • Planned expenses for travel, hotel, and so forth

    • Services purchased from external providers

    • Internal activities required to produce the telecast

    • Materials required to produce the telecast

  3. The station collects the following actual costs with reference to the general cost object:

    • In the Financial Accounting component, the station enters the G/L account postings for expenses such as travel and hotel costs with reference to the telecast.

    • In the Controlling component, the station specifies the telecast as the receiver for the allocation of internal activities.

    • In the Materials Management component, the station specifies the telecast when it enters a material withdrawal.

  4. Once the telecast has been produced, the station settles the actual costs incurred to a profitability segment. In Profitability Analysis, the costs of producing the telecast are compared with the revenues.