Cost of Sales Accounting 

In the new General Ledger Accounting (FI-GL) component, you can create financial reports (profit and loss) in accordance with cost-of-sales accounting. Using this procedure, revenue and expense are displayed separately for each functional area.

Prerequisites

The functional area account assignment object is activated as an additional account assignment object for Asset Accounting, and the account assignment types are also specified. In Customizing for Asset Accounting, choose Integration with the General Ledger ®  Additional Account Assignment Objects.

Features

To be able to separate expense by functional area, it has to be possible to assign depreciation expense to functional areas. Therefore the depreciation posting program makes account assignment to the functional area belonging to each fixed asset.

There are two different ways in which the system can determine the functional area:

·        Functional area is entered in the asset master record.

You can enter a functional area in the asset master record on the Time-dependent tab page. If a functional area is entered in the asset master record, the system uses this functional area, and does not attempt to derive any other functional areas.

·        Functional area is not entered in the asset master record.

In this case, the system tries to derive a functional area in this sequence:

...

                            a.      If a functional area is entered in the account (or cost element), this functional area is used.

If the system could not find a functional area in a), it tries to derive one from the additional account assignment objects (for example, cost center or order). However, the system can only derive a functional area from objects to which account assignment is made (see Additional Account Assignment).

                            b.      If you entered a substitution rule for deriving the functional area, the system always applies this substitution rule, regardless of whether a functional area was already determined using a) or b). If a functional area is found using the substitution rule, this overwrites a functional area already found using a different method. You define substitution rules in Customizing. In Customizing for Financial Accounting (New), choose Financial Accounting Basic Settings (New) → Tools → Validation/Substitution → Define and Activate Substitution for Cost-of-Sales Accounting.

 

When posting depreciation, you want the system to derive the functional area in depreciation area 01 from the cost center. However, you do not want account assignment to the cost center itself.

For this to take place, depreciation area 01 has to allow account assignment of depreciation to cost centers and functional areas for the transaction type that is used. The field status of these two objects is also not permitted to be suppressed. The account cannot be a cost element.