configuration Document

Project 23:59

SAP ECC 6.0 Implementation

Bidco Oil Refinaries LimitedControlling (CO) Configuration Guide

SEAL Infotech Private Limited

Bascon IT Park, 56L Venkatanarayana Road

T. Nagar, Chennai-600017OVERVIEW

The configuration guide provides the information to set up the configuration of the project Ascent.Sl No.

Activity

Page

3 Enterprise Structure

3 Maintain Controlling Area

3 Create Operating Concern

3 Assign Company Code to Controlling Area

3 Assign Controlling are to Operating Concern

3 General Controlling

3 Maintain Controlling Area

3 Maintain Number Ranges for Controlling Documents

3 Maintain Versions

3 Cost Element Accounting

3 Automatic Creation of Primary and Secondary Cost Elements

3 Create Secondary Cost Elements

3 Create Cost Element Groups

3 Cost Center Accounting

3 Create Cost Centers

3 Create Planning Layout for Cost Element Planning

3 Define User defined Planner Profiles

3 Statistical Key Figures

3 Activity Type

3 Plan Assessment Cycle

3 Actual Assessment Cycle

3 Internal Orders

3 Define Order Types

3 Maintain Number Ranges for Orders

3 Product Cost Controlling

3 Define Cost Component Structure (Product Costing Make to Stock)

3 Define Costing Variants (MTS)

3 Define Costing Types (MTS)

3 Define Valuation Variants (MTS)

3 Check costing variants for manufacturing orders.

3 Define Cost Accounting relevant default values for Order Types

3 Define Result Analysis Keys

3 Define Cost Elements for WIP Calculation

3 Define Results Analysis Versions

3 Define Line IDs

3 Define Assignment

3 Define Update

3 Define Posting Rules for settling Work in Process

3 Create Settlement Profile

3 Define Variance Key

3 Define default variance key for plants

3Define target version

3 Profitability Analysis

3 Maintain Characteristics

3 Maintain Value Fields

3 Maintain Operating Concern

3 Define Characteristic Derivation

3 Define and Assign Valuation Strategy

3 Define Access to standard cost estimate

3Assign costing keys to any charateristics

3 Assign costing value fields

3 Transfer of Billing Documents Assign Value fields

3 Transfer of Billing Documents Assign Quantity fields

3 Maintain PA transfer structure for direct postings

3 Default Account Assignment

3 Define PA transfer structure for variance settlement

3Assign PA Transfer structure to Settlement Profile

3 Profit Center Accounting

3 Profit Center- Maintain Standard Hierarchy

3 Maintain Profit Center

3 Maintain Profit Center Groups

3 Define Plan Version

3S Assign Plan versions to Fiscal Year and activate

1. Enterprise Structure

1.1 Maintain Controlling AreaIn this step, you create your Controlling area. The Controlling Area is an organizational unit.The controlling area is embedded in the organizational structure as follows:

A controlling area may be assigned one or more company codes.

The following Controlling Area is defined 1000 Kenya Controlling AreaTransaction CodeOKKP

IMG MenuControlling ( General Controlling ( Organization ( Maintain Controlling Area ( Maintain Controlling Area (Selection Menu)

The following components were activated.

1.2 Create Operating Concern

In this activity, you define your operating concerns. The operating concern is an organizational unit in accounting which structures a enterprise from the Profitability Analysis point of view.

Transaction CodeNot available

IMG MenuEnterprise Structure > Definition > Financial Accounting >Controlling > Maintain Controlling Area > Create Operating Concern

9000 Bidco Operating concern is defined.1.3 Assign Company Code to Controlling Area

In this step you assign the company codes to a controlling area.

Transaction CodeOKKP

IMG MenuEnterprise Structure > Assignment > Financial Accounting >Controlling > Assign Company code to Controlling Area

The following company codes were assigned

1.3 Assign Controlling are to Operating ConcernIn this step you assign the company codes to a controlling area.

Transaction CodeNot available

IMG MenuEnterprise Structure > Assignment > Financial Accounting >Controlling > Assign Controlling Area to Operating Concern

Controlling Area 1000, 2000 and 3000 are assigned to Operating Concern 9000.

2. General Controlling

2.1 Maintain Controlling Area

In this step, you can use the control indicator to activate or deactivate particular components and functions in Controlling per fiscal year.Transaction CodeOKKP

IMG MenuControlling ( General Controlling ( Organization ( Maintain Controlling Area ( Maintain Controlling Area (Selection Menu)

The following components have been activated:

Cost Centers

Order Management

Profitability Analysis

Sales Orders Commitment management

2.2 Maintain Number Ranges for Controlling DocumentsIn this IMG activity you create number ranges for business transactions in Controlling.

For every posting in CO the R/3 System generates a numbered document. The document numbers are unique to each controlling area, since each number is assigned only once.

In CO, there are no legal requirements for a continuous assignment of document numbers.

Every transaction that you carry out on the controlling area level has to be assigned to a number range group.

Transaction CodeKANK

IMG MenuControlling ( General Controlling ( Organization ( Maintain Number Ranges for Controlling Documents

Four groups have been defined.

1. Primary Postings.

2. Planning Transactions.

3. Distribution, Assessment and settlement.

4. Period End Activities.

The groups and the type of transactions are displayed as under.

Number ranges used for above groups are as underObject nameFrom numberTo number

Primary Postings01000000000199999999

Planning Transactions02000000000299999999

Assessment/Distribution/settlement03000000000399999999

Period End Activities04000000000499999999

As mentioned above, number ranges were defined for other Controlling Areas 1000 2.3 Maintain VersionsVersions are used for having orginal plan. Plan figures can be revised and entered with version 0 or 1 and actuals can be compared with original and also with revesed plan figures.

The data for the most likely version in planning normally appears in version 0. The plan data you enter here forms the basis for calculating plan prices for activity types and determines the rates by which you allocate activities in actual. Version 0 also holds all actual data postings. The plan and actual data for version 0 serves in plan/actual comparisons and in variance analysis.

Transaction CodeOKEQ

IMG MenuControlling ( General Controlling ( Organization ( Maintain Versions

Note: Version settings are year dependant. It needs to be extended every year. At present it has been extended till fiscal year 2014.

3. Cost Element Accounting

3.1 Automatic Creation of Primary and Secondary Cost Elements

In this section you can use a batch input session to automatically create primary and secondary cost elements.

The R/3 System transfers G/L accounts from the Financial Accounting component (FI) as primary cost elements to the Controlling component (CO).

Secondary cost elements are used only in CO, and each requires a separate entry.

1. Make default settings

In this IMG activity you determine which cost elements are created automatically by the R/3 System.

To do so, you must maintain the cost elements individually or as an interval with the corresponding cost element category in the default setting. The cost elements are created by a batch input session using this default setting.

These defaults are used for automatic generation of primary and secondary cost elements.

Transaction CodeOKB2

IMG MenuControlling > Cost Element Accounting > Master Data > Cost Elements > Automatic creation of Primary and Secondary Cost Elements > Make default Settings

Enter the Chart of Accounts 9000

Enter the P & L expenses accounts from and cost element category 1 / 22 / 11 / 12 based on the nature of the account.

2. Create Batch Input Session

3. Execute Batch Input Session

3.2 Create Secondary Cost ElementsSecondary cost elements are used with in controlling to transfer values from one cost center to another (assessment) and also for activity planning against cost centers.The following secondary cost elements were created.Transaction CodeKA06

IMG MenuAccounting > Controlling > Cost Element Accounting > Master Data > Cost Elements > Individual Processing > Create Secondary Cost Elements

The Following Secondary Cost Elements were created as per the requirement of BIDCO

3.3 Create Cost Element GroupsCost Element Groups helps in distribution, analysis etc.The cost element groups can also be created from Standard SAP menu.Transaction CodeKAH1

IMG MenuAccounting > Controlling > Cost Element Accounting > Master Data > Cost Element Group > Create Cost Element Group

4. Cost Center Accounting

4.1 Create Cost Centers

Cost center is an organization unit with in controlling. Each department can be considered as cost center and cost can be planned and actuls can be captured. Compairsion of plan vs actuals at the end of the month helps in controlling the costs.

Transaction CodeKS01

IMG MenuAccounting > Controlling > Cost Center Accounting > Master Data > Cost Center > Create Cost Center

4.5 Activity TypeActivity Types are created for capturing activity costs for the cost centers valid from from 1.4.2006 to 31.12.9999.Transaction CodeKL01

IMG MenuAccounting > Controlling > Cost Center Accounting > Master Data > Activity Type > Individual Processing > Create Statistical Key Figure.

5. Internal Orders

5.1 Define Order Types

In this step, you can define your own Order Types for Internal orders.

Transaction CodeKOT2_OPA

IMG Menu- Controlling > Internal Orders > Order Master data > Define Order Type

5.2 Maintain Number Ranges for Orders

The Number ranges are defined for each group and the order types are assigned to groups.Transaction CodeKONK

IMG MenuSPRO > Controlling > Internal Orders > Order Master data > Maintain number ranges for Orders Transaction

6. Product Cost Controlling

6.1 Define Cost Component Structure (Product Costing Make to Stock)Transaction CodeOKTZ

IMG MenuProduct Cost Controlling > Product Cost Planning > Basic Settings for Material costing > Define Cost Component Structure

In this step you create a cost component structure and the associated cost components. The cost component split is generated on the basis of the cost components.

These settings are used for Material cost estimates in Product cost planning

In Product cost planning you can

Display the cost components in the cost estimate

Analyze the cost components in the information system

For BIdco Cost Component Structure Z1- BIDCO Cost Component Structure is defined.

The cost component views used are as under:

Cost component cost element interval.

Assignment of organization units to cost component structure

6.2 Define Costing Variants (MTS)Costing Variant form the link between the application and Customizing, since all cost estimates are carried out and saved with reference to a costing variant.

Control Parameters in the Costing VariantThe costing variant contains all the control parameters for costing.

The costing variant for a material cost estimate contains the following control parameters:

Costing type

Valuation variant

Date control

Quantity structure control

(only relevant for cost estimates with quantity structure)

Transfer control (optional)

Reference variant (optional)Transaction CodeOKKN

IMG MenuControlling > Product Cost Planning > Material Cost estimate with quantity structure > Define Costing variants

ZPC1 - Standard Cost Estimate SAL is defined for BIDCO

The control parameters defined for above costing variant are as under:

6.3 Define Costing Types (MTS)In this step you establish the technical attributes of the cost estimate.

In the costing type, you define the purpose of a material cost estimate by specifying, for example, which field in the material master record the costing results can be transferred to:

Transaction CodeOKKI

IMG MenuControlling > Product Cost Controlling > Product Cost Planning > Material Cost estimate with quantity structure > Costing Variant components > Define CostingTypes

6.4 Define Valuation Variants (MTS)Valuation Variant determines the prices that the System selects to valuate the quantity structure of a material cost estimate or order.

The valuation variant controls how the materials and activities in the cost estimate are valuated. The valuation variant specifies the following parameters:

The price in the material master (such as the standard price) or in the purchasing info record (such as the net order price) that is used to cost a material in the BOM

The planned or actual price that is used to valuate the internal activities

The version in Cost Center Accounting that is used to valuate internal activities

The costing sheet that is used to calculate overhead

Whether, and to what extent, a BOM item or an operation in the routing is relevant to costingThe different valuation strategies for materials, internal activities, external activities, and subcontracting are stored as strategy sequences.

Transaction CodeOKK4

IMG MenuControlling > Product Cost Controlling > Product Cost Planning > Material Cost estimate with quantity structure > Costing Variant components > Define Valuation Variants

6.5 Check costing variants for manufacturing orders.

Transaction CodeOPL1

IMG MenuControlling > Product Cost Controlling > Cost Object Controlling Product Cost by Order > Manufacturing Orders > Check Costing Variants for Manufacturing Orders

ZPP1 and ZPP2 were created for BIDCO for planned and actual.

Details of ZPP1 are as under:

Details of ZPP2 are as under:

6.6 Define Cost Accounting relevant default values for Order Types

Here you define default values for manufacturing orders for each plant and order type.

Transaction CodeNot available

IMG MenuControlling > Product Cost Controlling > Cost Object Controlling > Product Cost by Order > Manufacturing Orders > Define Cost Accounting Relevant Default values for Orders types and Plants

Similarly for Order type ZP01 and ZP04 for plant 1100, 1200,1300,1400,1500,1600 default values have been assigned. Valuation variant SAL is assigned.6.7 Define Result Analysis Keys

Here you create results analysis keys. Each Order for which you want to create work in process (WIP) must receive a results analysis key. The presence of a results analysis key in the order means that the order is included in WIP calculation during period-end closing.

The results analysis key can be specified as a default value for each order type and plant. It is then added to the order master record when an order of a particular order type is created.

For each combination of controlling area, results analysis version, and results analysis key, later specify the valuation methods according to status.Transaction CodeOKG1

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Work In Process > Define Result Analysis Keys

Result Analysis 000002 Calculation for Actual Costs has been defined for Controlling Area 1000 6.8 Define Cost Elements for WIP Calculation

In this step you can check the cost elements under which the work in process and (if applicable) the reserves are updated on the manufacturing order.

These secondary cost elements have cost element type 31 (results analysis for orders/projects).

In the step Define Update, assign these results analysis cost elements to the individual line IDs. The value of the line ID is updated on the order under the appropriate results analysis cost element.Transaction CodeKA06

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Work In Process > Define Cost Elements for WIP Calculation

Similarly the following cost elements have been created with category 31

6.9Define Results Analysis Versions

All results analysis data (work in process or reserves for unrealized costs in the Product Cost by Order component) calculated in results analysis is updated on the order with reference to the results analysis version.

Transaction CodeOKG9

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Work In Process > Define result analysis version

RA Version 0 - Plan/Act Version has been defined as Transfer to Financial Accounting for WIP posting to Finance.

6.10 Define Line IDs

Here you create line IDs. The line IDs serve to group the work in process and reserves for unrealized costs according to the requirements of Financial Accounting.

The work in process or reserves for unrealized costs are calculated as a total for each order and apportioned to the line IDs. You can define separately for each line ID whether the work in process for that line ID must be capitalized.

Transaction CodeNot Available

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Work In Process > Define Line IDs

The above line ids have been defined for Controlling Area 1000.6.11 Define Assignment

Here you assign the following cost elements to line IDs:

Cost elements under which an order is debited and credited

Work in Process at Actual CostsThe line IDs put the costs incurred for the order into specific groups such as:

Direct material costs

Consumable Indirect Cost (Conversion cost)In the Update, the category indicates whether the cost elements under which the different postings are made are debits or credits for WIP calculation.

You must assign all debits (such as for material withdrawals) internal activities, external activities and overhead, to line IDs of category K (costs).Transaction CodeOKGB

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Work In Process > Define Assignment

6.12 Define Update

For each line ID, you specify the results analysis cost element under which the work in process and (under some circumstances) the reserves for unrealized costs are updated, and assign each line ID to a category.

The line IDs put the costs incurred for an order into groups such as the following:

Direct material costs

Consumables Converion cost (Machine running cost)Transaction CodeOKGA

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Work In Process > Define update

6.13 Define Posting Rules for settling Work in Process

In this step you specify the G/L accounts in Financial Accounting to which the work in process is settled.

A posting document is generated in Financial Accounting on the basis of the settlement of work in process.

Data is written to the balance sheet.

Data is written to the profit and loss statement.

Transaction CodeOKG8

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Work In Process > Define posting rules for settling work in progress

6.14 Create Settlement ProfileIf you want to settle the costs each time to just one cost center or just one G/L account, you need a settlement profile. As you cannot maintain the settlement parameters during settlement to a receiver, you must save the settlement profile either in the order type or in the model order or reference order.

The settlement profile includes, among other things, the retention period for the settlement documents. You should bear in mind the following when you determine the retention period.

Transaction CodeNot available

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Settlement > Create Settlement Profile

6.15 Define Variance KeyTransaction CodeOKV1

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Variance calculation > Define Variance key

6.16 Define default variance key for plantsTransaction CodeOKVW

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Variance calculation > Define default variance key for plants

6.17 Define target versionTransaction CodeOKVW

IMG MenuControlling > Product Cost Planning > Cost Object Controlling > Product Cost by Order > Period End Closing > Variance calculation > Define target cost versions

Details of 0 version

Likewise the above three versions are created for other controlling areas 2000 and 3000.

7. Profitability Analysis

7.1 Maintain Characteristics

In this activity, you define characteristics. A number of frequently used characteristics are already predefined in the standard system.

You initially define these characteristics independently of any operating concern. They are also available in all clients.

Before defining a characteristic, look at the list of existing characteristics. You may find one there that already meets your requirements. This list contains all predefined characteristics and those you have already defined in your system. To see a list of those characteristics that are automatically contained in all operating concerns, choose Extras -> Fixed fields.

Transaction CodeKEA5

IMG MenuControlling > Profitability Analysis > Structures > Define Operating concern > Maintain Characteristics

Following Characteristics have been maintained for Operating concern 9000

In addition to above, there are Fixed Fields such as Company code, Sales Organisation, Profit Center, Distribution Channel, Division, etc are available for the operating concern.

7.2 Maintain Value Fields

In this activity, you can define your own value fields. Frequently used value fields, such as "Revenue" and "Sales quantity", are already predefined in the standard system.

Before you create a new value field, you should take a look at the ones that already exist. It may be that you can use a value field you have already defined or one defined in the standard system.

Once you are in the "change" mode, you can define a new value field by choosing the "Create" icon:

Enter a 4- or 5-character name that begins with "VV" for your value field. Here you also need to specify whether this field is a quantity field or a field for currency amounts. All the currency fields in any single line item use the same currency. This currency is defined in the attributes of each operating concern. Transaction CodeKEA6

IMG MenuControlling > Profitability Analysis > Structures > Define Operating concern > Maintain value fileds

The above value fields have been maintained for operating concern 9000.7.3 Maintain Operating Concern

In this activity you define and maintain the operating concerns you are going to use in your system.

If you want to create a new operating concern, you need to create the subobjects data structure and attribute and to activate the environment:

Transaction CodeKEA0

IMG MenuControlling > Profitability Analysis > Structures > Define Operating concern > Maintain Operating Concern

For Operating Concern 9000 Costing based Profitability analysis is activated.

.

7.5 Define and Assign Valuation Strategy

In this step, you can define your valuation strategies and assign them to a point of valuation.

Transaction CodeKE4U

IMG MenuControlling > Profitability Analysis > Master data > Valuation > Valuation Strategies > Define and Assign valuation strategy

7.6 Define Access to standard cost estimate

Transaction CodeNot available

IMG MenuControlling > Profitability Analysis > Master data > Valuation > Valuation Strategies >Set Up Valuation Using Material Cost Estimate > Define Access to standard cost estimate

7.7 Assign costing keys to any charateristicsTransaction CodeKEPC

IMG MenuControlling > Profitability Analysis > Master data > Valuation > Valuation Strategies > Set Up Valuation Using Material Cost Estimate > Assign costing keys to any characteristics

7.8 Assign costing value fieldsTransaction CodeKEPC

IMG MenuControlling > Profitability Analysis > Master data > Valuation > Valuation Strategies > Set Up Valuation Using Material Cost Estimate >Assign costing value fields

7.9 Transfer of Billing Documents Assign Value fields

All revenues, sales deductions and other values are defined as conditions in SD. In this step, you assign these conditions to the corresponding CO-PA value fields.

Transaction CodeKE41

IMG MenuControlling > Profitability Analysis > Flow of Actual values > Transfer of Billing documents > Assign Value fields

7.10 Transfer of Billing Documents Assign Quantity fields

In this step, you assignl the quantity field you want to transfer from the billing system to costing-based CO-PA.

Transaction CodeKE4M

IMG MenuControlling > Profitability Analysis > Flow of Actual values > Transfer of Billing documents > Assign quantity fields

7.11 Maintain PA transfer structure for direct postings

Transaction CodeKEI2

IMG MenuControlling > Profitability Analysis > Flow of Actual values > Direct postings from FI/MM documents > Define PA transfer structure for direct postings

7.13 Define PA transfer structure for variance settlementTransaction CodeKEI1

IMG MenuControlling > Profitability Analysis > Flow of Actual values > Settlement of production variances > Define PA transfer structure for variance settlement.

7.14 Assign PA Transfer structure to Settlement Profile

The settlement profile contains all the relevant information needed for settling service orders.

From the point of view of Profitability Analysis (CO-PA), you need to assign your PA transfer structure to a settlement profile.

The settlement profile must allow profitability segments as settlement receivers.

The settlement profile is entered automatically in the master data of the Contract. You need to specify the desired settlement profile as a default.

Transaction CodeNot available

IMG MenuControlling > Profitability Analysis > Flow of Actual values > Settlement of production variances > Assign PA transfer structure to settlement profile.

8. Profit Center Accounting

8.1 Profit Center- Maintain Standard Hierarchy

In this step you can maintain Standard Hierarchy for Profit Center Accoutning.

Transaction CodeKCH4

IMG MenuControlling > Profit Center Accounting > Master Data > Profit Center > Maintain Standard Hierarchy

Path:

Transaction: KCH4

8.3 Maintain Profit CenterProfit center is a organization unit where profit can be assessed. Profit center can be defined based on the gregraphy or product lines. Transaction CodeKE51

IMG MenuControlling > Profit Center Accounting > Master Data > Profit Center > Maintain Profit Center

8.4 Maintain Profit Center GroupsIn addition to the standard hierarchy of the controlling area, you can also create alternative hierarchies, which are called "profit center groups". These can be used in planning, in allocations or in the information system.

Unlike the standard hierarchy, the profit center groups do not have to contain all the profit centers in the controlling area. They let you select and regroup several profit centers in a meaningful way.

Transaction CodeKCH1

IMG MenuControlling > Profit Center Accounting > Master Data > Profit Center > Maintain Profit Center Groups

8.6 Define Plan Version

Versions are created for 0 Plan actual and Verion 1, 3 and 4 are created for profit center planning and integration has been activated.

Transaction CodeGLPV

IMG MenuFinancial Accouting > General Ledger Accouting >Planning > Plan Versions > Define Plan Versions

8.7 Assign Plan versions to Fiscal Year and activate

In this activity plan versions are activated for the fiscal year.

Transaction CodeGLP2

IMG MenuFinancial Accouting > General Ledger Accouting >Planning > Plan Versions > Fiscal year dependent version parameters > Assign Plan versions to Fiscal year and activate

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