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 Example for General Cost Object with Periodic Time Base Locate this document in the navigation structure

Suppose a television station would like to use the SAP System to control the costs for a daily newscast. The station would like to review the costs for the newscast at the end of every month.

The television station does the following:

  1. The station creates a general cost object for the newscast that specifies the following:

  2. – Name of the program

    – Person responsible

    – Business area the program is assigned to

    – Currency in which the costs will be carried

  3. The station calculates the planned costs for each newscast by defining the planner profile and then assigning to the cost object the primary cost elements and corresponding costs, or the sender cost centers, sender activity types, and consumption quantities. For example, it might plan the following:

  4. – Expenses for travel, hotel, and so forth

    – Internal activities required to produce each newscast

    – Materials required to produce each newscast

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

  6. – In the Financial Accounting component, it enters the G/L account postings for travel expenses, hotel expenses, and so forth with reference to the newscast.

    – In the Controlling component, it specifies the newscast as the receiver for internal activity allocation.

    – In the Materials Management component, it specifies the newscast when a material withdrawal is made for it.

  7. At the end of each period, the station settles the actual costs incurred to a profitability segment. In Profitability Analysis , the costs required to produce the newscast are compared with the revenues (for example, from advertising).