Occurred Costs
The value of all goods and services used is recorded as expense for each period.By contrast, the values of all used goods and services that are incurred during the creation of your own ("typical") business activity are recorded as costs for each period.The nonoperating expense is not recorded in CO as costs.Accrued costs do not have a corresponding expense in FI. They are only accrued for cost-accounting purposes. Two types are differentiated between:
- Valuation differences which have corresponding expenses of a difference amount (for example, cost-accounting depreciation, imputed interest, and so on).
- Additional costs do not have a corresponding expense (for example, management salary, accrued rents, and so on)
- Valuation differences which have corresponding expenses of a difference amount (for example, cost-accounting depreciation, imputed interest, and so on).
- Additional costs do not have a corresponding expense (for example, management salary, accrued rents, and so on)
To enable you to enter accrued costs, the SAP R/3 system provides different methods:
- Percentage method
- Plan=actual method
- Target=actual method
- Percentage method
- Plan=actual method
- Target=actual method
To avoid periodic cost fluctuations in Cost Center Accounting, you should distribute irregular expenses to the relevant periods. This business transaction is the accrual calculation. You can calculate accrual in FI using a recurring entry transaction, and transfer the costs to CO. In FI, you calculate accrual if you want to create monthly balances for example. Or you calculate accrual in CO only. This causes accrued costs, as the accrued costs correspond to expenses of a different amount in the periods.
Percentage Method
To calculate accrued costs, use the percentage method. This is based on a percentage overhead,which is related to a cost element or a cost element group.Unlike accrual calculation with a recurring entry in FI, this method has the advantage that the accrued costs are calculated using the actual costs. The percentage method, for example, is useful for accrual calculations for labor costs relevant to salaries, such as premiums.When accrual is calculated, the system debits the cost centers with the accrual cost amounts. At the same time, a user-defined accrual object (cost center, or internal order) is credited. The actual costs that arose are posted to the results analysis object, so that all of the balances that exist between expenses in FI and accrued costs in CO are calculated, analyzed, and settled to profitability analysis.You create a primary accrual cost element (cost element category = 3) to process the accrual calculation.
Definition of the Percentage Method
You create an overhead structure to define the accrual calculation. You need to store the following keys for the accrual calculation:
- Base
Which cost element bases are to be used for applying overhead rates?
- Overhead
How high should the percentage overhead be?
- Credit
Which cost element should be used for posting the overhead? Which cost center or internal order (accrual object) is to be credited?
If you assign dependencies to the overhead key, then you can specify conditions under which the overhead is calculated for a cost center. Depending on the cost element, you can, for example, post different overheads to different cost centers. You can add user-defined dependencies to those in the SAP R/3 standard system.In customizing, you can assign an overhead structure within a client to any controlling area. This assignment is made based on validity time periods, although you can change the assignment at any point in time.You can have an overhead structure for actual accrual calculations, and for each version for planned accrual calculation in your controlling area, for any period of time required.
- Base
Which cost element bases are to be used for applying overhead rates?
- Overhead
How high should the percentage overhead be?
- Credit
Which cost element should be used for posting the overhead? Which cost center or internal order (accrual object) is to be credited?
If you assign dependencies to the overhead key, then you can specify conditions under which the overhead is calculated for a cost center. Depending on the cost element, you can, for example, post different overheads to different cost centers. You can add user-defined dependencies to those in the SAP R/3 standard system.In customizing, you can assign an overhead structure within a client to any controlling area. This assignment is made based on validity time periods, although you can change the assignment at any point in time.You can have an overhead structure for actual accrual calculations, and for each version for planned accrual calculation in your controlling area, for any period of time required.
Entering Statistical Key Figures
You can enter statistical key figures as a tracing factor for periodic allocations, or for creating key figures in reporting. The costs from the allocation cost center "Telephone" can be allocated using the statistical key figure of "Telephone units" for example. If you enter "Employees" as a statistical key figure, then you can provide a report on the cost centers, on the level of HR costs for each employee. A decisive factor for statistical key figures, is the way in which you create them as master records.
- Fixed values (category 01) are updated from the corresponding posting period onwards, in all of the
following posting periods of the fiscal year. This takes place, assuming that fixed values do not change over a longer period of time.
- Totals values (category 02) are only entered for each current period. They change from period to period, and therefore need to be re-entered in each posting period.You can also enter statistical key figures especially for an activity type on a cost center (statistical key figures that are activity-dependent).
following posting periods of the fiscal year. This takes place, assuming that fixed values do not change over a longer period of time.
- Totals values (category 02) are only entered for each current period. They change from period to period, and therefore need to be re-entered in each posting period.You can also enter statistical key figures especially for an activity type on a cost center (statistical key figures that are activity-dependent).
Periodic Reposting
Periodic reposting is used as a posting aid. Primary postings (such as, telephone costs) are collected on an allocation object (cost center, overhead cost order, business process, WBS element, or cost object) to restrict the number of FI postings as much as possible. These costs are allocated during period-end closing to the corresponding Controlling objects, using a key defined by the user.The receivers for an assessment can be a cost center, WBS element, internal order, or cost object.You can restrict the number of receiver categories in customizing. You can only repost primary costs. During this process, the original cost element remains the same. Line items are posted for the sender as well as for the receiver, enabling the allocation to be recorded exactly. The system does not save the information from the clearing cost center in totals records during a periodic reposting. This enables it to save memory when storing the data records.Periodic repostings can be reversed and repeated as often as required.
Distribution
Distribution was created to transfer primary costs from a sender cost center to receiving controlling objects. During distribution, only cost centers or business processes can be used as senders.A distribution receiver can be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the number of receiver categories in customizing.Primary postings (such as, energy costs) are collected on a cost center, and allocated at the end of the period by means of the user-defined key.You can only distribute primary costs. During this process, the original cost element remains the same.Line items are posted for the sender as well as for the receiver, enabling the allocation to be recorded exactly.You can reverse distributions as often as required.You use the Cycle -Segment method to define sender-receiver relationships.
Comparison: Periodic Reposting and Distribution
Differences between periodic reposting and distribution are due to information content and performance.For periodic reposting, no separate credit record is written on the sender for the cost element in the summary report. Instead, the totals record for the cost element is reduced on the debit side, which means that the original debit amount can no longer be checked there ("unclean credit"). However,during distribution, the system writes a totals record for the credit ("clean credit"). The information on the receiver is the same for periodic reposting and distribution ("clean debit"). Compared with periodic reposting, during distribution, the system also updates the partner in the totals record for the sender. This means that the partner can be displayed in the information system on the totals record level.As fewer totals records are written during periodic reposting, performance is better than during distribution. See customizing for an example with figures that illustrates this aspect. Under utilities, make settings for the SAPscript text display, then call up the text by choosing Periodic reposting, Distribution, or Assessment from the menu.
Assesment
Assessment was created to transfer primary and secondary costs from a sender cost center to receiving controlling objects. During assessment, cost centers or business processes can be used as senders .The receivers for an assessment can be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the number of receiver categories in customizing. Primary and secondary postings are allocated at the end of the period by means of the user-defined key.
During assessment, the original cost elements are summarized into assessment cost elements (secondary cost element category = 42). As the system writes fewer totals records, the assessment has a better performance than periodic reposting and distribution.Line items are posted for the sender as well as for the receiver, enabling the allocation to be recorded exactly. The system does not display the original cost elements in the receivers. Therefore, assessment is useful if the cost drilldown for the receiver is not important, for example, as in the case of the allocation for the "cafeteria" cost center. Similar to distribution, the partner is updated in the totals record during distribution. You can reverse assessments as often as required. n You use the Cycle -Segment method to define sender-receiver relationships.
Overview: Periodic Reposting, Distribution, and Assessment
You can only use periodic reposting and distribution for primary cost elements. The costs are transferred to the receivers using the original cost element, so they are transferred to the primary cost
elements of the receiver. Secondary cost elements remain on the sender.The assessment allocates primary as well as secondary costs. The information on the original primary cost elements for the sender is lost because the costs are allocated using an assessment cost element (category 42). You can use more than one assessment cost element for differentiation purposes.For performance reasons , periodic reposting of the distribution is recommended, as the system does not write any sender/receiver relationships on the totals records level for this. Assessment has the best performance as costs from different primary and secondary cost elements can be totaled in one posting to the assessment cost element.
elements of the receiver. Secondary cost elements remain on the sender.The assessment allocates primary as well as secondary costs. The information on the original primary cost elements for the sender is lost because the costs are allocated using an assessment cost element (category 42). You can use more than one assessment cost element for differentiation purposes.For performance reasons , periodic reposting of the distribution is recommended, as the system does not write any sender/receiver relationships on the totals records level for this. Assessment has the best performance as costs from different primary and secondary cost elements can be totaled in one posting to the assessment cost element.
Assessment: Allocation Structure
For a clear picture of the costs that are to be assessed, you can summarize individual cost elements or
cost element intervals into different assessment cost elements. Before release 4.5A, it was only possible to assign one assessment cost element to each segment. You now decide in each segment whether to assign a single assessment cost element, or an allocation structure.In the allocation structure you can define which cost elements are to be allocated under which assessment cost elements. Therefore, you do not need to create more than one segment to obtain information on the source of the costs to be assigned.In the allocation structure, you can assign single cost elements, cost element areas, or cost element groups to an assessment cost element. If required, you can go to the maintenance for allocation structures from the segment maintenance , to display, change, or create an allocation structure.
cost element intervals into different assessment cost elements. Before release 4.5A, it was only possible to assign one assessment cost element to each segment. You now decide in each segment whether to assign a single assessment cost element, or an allocation structure.In the allocation structure you can define which cost elements are to be allocated under which assessment cost elements. Therefore, you do not need to create more than one segment to obtain information on the source of the costs to be assigned.In the allocation structure, you can assign single cost elements, cost element areas, or cost element groups to an assessment cost element. If required, you can go to the maintenance for allocation structures from the segment maintenance , to display, change, or create an allocation structure.
Assessment: Allocation Structure
For a clear picture of the costs that are to be assessed, you can summarize individual cost elements or
cost element intervals into different assessment cost elements.Before release 4.5A, it was only possible to assign one assessment cost element to each segment.You now decide in each segment whether to assign a single assessment cost element, or an allocation structure.In the allocation structure you can define which cost elements are to be allocated under which assessment cost elements. Therefore, you do not need to create more than one segment to obtain information on the source of the costs to be assigned.In the allocation structure, you can assign single cost elements, cost element areas, or cost element groups to an assessment cost element.If required, you can go to the maintenance for allocation structures from the segment maintenance , to display, change, or create an allocation structure.
cost element intervals into different assessment cost elements.Before release 4.5A, it was only possible to assign one assessment cost element to each segment.You now decide in each segment whether to assign a single assessment cost element, or an allocation structure.In the allocation structure you can define which cost elements are to be allocated under which assessment cost elements. Therefore, you do not need to create more than one segment to obtain information on the source of the costs to be assigned.In the allocation structure, you can assign single cost elements, cost element areas, or cost element groups to an assessment cost element.If required, you can go to the maintenance for allocation structures from the segment maintenance , to display, change, or create an allocation structure.
Cycle-Segment Method
The cycle -segment method described below is used for defining periodic reposting and also for defining distribution and assessment.To display the allocation relationships between the senders and receivers in the system, you need to make the following entries:
- Which object(s) were the costs allocated from?
- Which object(s) were the costs allocated to?
- Which costs should be allocated?
- How are the costs distributed among the receivers?
In a segment, cost centers, with allocation values based on the same rules, are combined with receiver objects that have tracing factors based on the same rules. The "Telephone" cost center allocates the telephone costs based on telephone units for example. If another rule is to be used for an allocation, you need to create a separate segment. The "Energy" cost center allocates the energy costs based on heated office space (square meters) to the administration and consulting cost centers for example. Several segments are grouped into a cycle.. You can define a cycle for the entire controlling area. Due to system performance and the allocation logic, it is recommended that you create more than one cycle and process them sequentially. Likewise, you create separate cycles for plan and actual allocations.
- Which object(s) were the costs allocated from?
- Which object(s) were the costs allocated to?
- Which costs should be allocated?
- How are the costs distributed among the receivers?
In a segment, cost centers, with allocation values based on the same rules, are combined with receiver objects that have tracing factors based on the same rules. The "Telephone" cost center allocates the telephone costs based on telephone units for example. If another rule is to be used for an allocation, you need to create a separate segment. The "Energy" cost center allocates the energy costs based on heated office space (square meters) to the administration and consulting cost centers for example. Several segments are grouped into a cycle.. You can define a cycle for the entire controlling area. Due to system performance and the allocation logic, it is recommended that you create more than one cycle and process them sequentially. Likewise, you create separate cycles for plan and actual allocations.
Cycle Header
The formal check function enables you to test an individual cycle prior to an update run. You can use the error log to help you correct faulty segments and iterative relationships (Customizing). The system checks for example whether the total of percentage rates adds up to 100%, or whether the fixed value rules are the same for both senders and receivers.The system uses the object search to display the cycle using the field values you selected (cost center, activity type and so on) and to display the segment in which the values searched for arise. If you wish, you can call up the corresponding segment using the field value.
You use the Segment overview function to display all the segments used in a cycle. If you want to display a particular segment, you can use the search function to search for this segment within the cycle. You can use maintenance functions to move segments in the segment overview list; this alters the sequence of the segments when carrying out the allocation run.You can sort and add segments in a cycle in line with your requirements. You can display the change documents for cycle maintenance. The system logs cycle and segment information or settings including:End date of the cycle, date the cycle was last changed, name of the last person to make a change,segment name, sender rule, receiver rule, sender percentage rate, assessment cost element, and so on.
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