Cost center accounting in sap ppt

cost center accounting sap ppt and sap cost center accounting ppt
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Prof.SteveBarros,United Kingdom,Teacher
Published Date:28-07-2017
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Cost Center Accounting¾¾¾ Objectives To gain understanding of key business processes of SAP Overhead Cost Management (OCM) Understand the Organizational unit in Controlling Determine the origin of posting in Cost center AccountingSAP Overview SAP Overhead Cost Management99 ¾¾ Overhead Cost Management The Overhead Cost Controlling component (CO-OM) helps you to plan, allocate, control, and monitor overhead in your organization By planning in overhead areas, you can develop standards, that allow you to control costs and valuate internal activities. Cost Centre Accounting • Cost Center Accounting analyzes where overhead occurs within the organization • Costs are assigned to the sub-areas of the organization where they originated. • SAP offers a wide variety of methods for allocating posted amounts and quantities. Internal Order Accounting • Internal Orders collect and analyze costs based on individual internal jobs. • SAP can monitor and automatically check budgets assigned to each job.OCM Processes SAP Overhead Cost ManagementOCM Process Overview Controlling Controlling Cost Centre Cost Centre Accounting Accounting Master Planning Actual Period End Reporting Master Planning Actual Period End Reporting Da Data ta Posting Posting Closing Closing¾¾¾¾¾¾¾¾ ¾¾¾¾¾ ¾¾¾¾¾¾¾ ¾¾¾¾¾¾¾ OCM Processes Master Planning Actual Period End Reporting Master Planning Actual Period End Reporting Da Data ta Posting Posting Closing Closing Cost Element Manual entries Reposting Planning Cost Centre SKF entry Actual Cost preparation distribution Activity Type Direct activity Cost Centre allocation Actual Cost Planning Resource Assessment Indirect activity Internal Order Statistical Key allocation Cost Splitting Planning Figures Order budget Calculate Actual Plan cost Internal order Activity Prices distribution Groups Settlement of Plan cost Overhead Orders assessment Manual Cost Plan indirect Allocation activity allocation FICO Plan settlement of Reconciliation overhead cost ordersMaster Data SAP Overhead Cost ManagementOrganizational Units & Master Data A Grp Operating Operating Concern Concern (9100) A Grp Controlling Controlling Area Area (1000) Profit Centers Telec Inform Ethylene ommu ation Corporate Pharma Polyolefins Power Propylene nicati techn common on ology A Ltd A1 Ltd HQ Company Codes 9100 9200 1000 Gen Sales and Purchasing R & T Cost Centers Services Marketing 13… 16… 14… 15… Other Cost Objects Orders Cost Objects¾¾¾ Cost Element Description A cost element classifies the organization's valuated consumption of production factors within a controlling area Primary Element - costs that originate outside the company; relate directly to the income statement in FI and must be included in the FI Chart of Accounts Secondary Element - costs that result from internal allocation activities; NO relation to G/L accounts in FI. These accounts are exclusively for cost accounting and are only maintained in COCost Elements Cost Elements Chart of Accounts Chart of Accounts A Allll p priim mar ry y r a c co os stt e elle em me en ntts s linked to linked to IIn nc co om me e S Stta atte em me en ntt A Ac cc co ou un ntts s Cost Element vs GL Account Financial Controlling Financial Controlling Accounting Accounting •Cost Centre Accounting Balance Balance •Internal Orders •Product Costing Sheet Sheet •Profitability Analysis Accounts Accounts Adjustment Adjustment Accounts Accounts Income Income Primary Primary Statement Cost Statement Cost Accounts Accounts Elements Elements •General Ledger Secondary Secondary •Accounts Payable Cost Cost •Accounts Receivable •Fixed Assets Elements Elements •Treasury No Secondary No Secondary Cost Elements Cost Elements In Financial In Financial Accounting Accounting No Balance No Balance S et Sheet he Accounts in Accounts in Controlling Controlling9999 ¾¾ Cost Centre Description Organizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on: Functional requirements Allocation criteria Physical location Responsibility for costs Defines the smallest area of responsibility within the company that causes and influences costs; the lowest level to which you can meaningfully assign direct and indirect costsCost Centre Standard Hierarchy Enterprise Company Functional Area Cost Center xx01 xx01 - - Pr Production oduction 9101000 9101000 – – Production Common Production Common A group A group A Ltd A Ltd xx02 xx02 - - Maintenance Maintenance 9101011 9101011 – – EG EG- - 1 Plant 1 Plant Stand Standa ard rd 9100 9100 Hierarchy xx03 xx03 - - Utilities Utilities Hierarchy xx04 xx04 – – Engineering & Pro Engineering & Projjects ects xx05 xx05 – – Q Qu uality ality Assurance Assurance A1 Ltd A1 Ltd xx06 xx06 – – Pr Production Planning oduction Planning 9200 9200 xx07 xx07 – – Pr Production Handling oduction Handling xx08 xx08 – –W Wa ar re ehous housing & St ing & Stor ora ag ge e xx09 xx09 – –Execu Execut tive Office ive Office A11 L A11 Lt td d xx10 xx10 - - Fina Finance nce 9110000 9110000 – – Fi Fina nance nce 9300 9300 xx11 xx11 – – Human Resources Human Resources 9111000 9111000 – – Human Resources Human Resources xx12 xx12 – – In Informatio formation n T Te echn chno ology logy 9111001 9111001 – – Housing Services Housing Services A111 Ltd A111 Ltd xx13 xx13 - - Purchasing Purchasing 9111002 9111002 – – Tr Tra aiini ning Ce ng Cent ntr re e 9400 9400 xx14 xx14 – – G Ge en ne eral Services ral Services xx15 xx15 – – Safety Safety & Security & Security xx16 xx16 – – Sales & Marketing Sales & Marketing xx17 xx17 – – Research & Techn Research & Techno ology logy xx18 xx18 – – Company Company General General Nodes Nodes Cost Objects Cost Objects¾¾ Activity Type Description Unit in a controlling area that classifies the activities performed in a cost centre, e.g. maintenance hours for a maintenance cost centre Used in activity allocation process¾¾¾ Statistical Key Figure Description Used to track quantities and values for various operating activities Designed to be used in reporting and analysis Used to assist in the allocation of costs throughout the OCM environment99 ¾¾ Internal Order Description Used to plan, collect and settle the costs of internal jobs and tasks. Internal orders are categorized as either: Orders used purely to monitor objects within Cost Accounting (such as advertising, training, or trade fair orders) and Productive orders that are value-added, that is, orders that can be capitalized (such as in-house construction of an assembly line).99999 ¾¾¾ Groups Description OCM master data can be grouped together, for example Cost Centre Groups Cost Element Groups Activity Type Groups Statistical Key Figure groups Internal Order Groups Master data groups are used in reporting, planning, allocation, etc. You can divide complex groups into manageable sections by separating them into sub-groups You can create and maintain sub-groups separately and then combine them in larger groupsPlanning SAP Overhead Cost ManagementPlanning preparationCost center planning Enter planned cost on the cost center

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