AC612 Profit Center Accounting in New General Ledger Accounting

Transcription

1 AC612 Profit Center Accounting in New General Ledger Accounting SAP ERP - Financials Date Training Center Instructors Education Website Participant Handbook Course Version: 95 Course Duration: 2 Day(s) Material Number: An SAP course - use it to learn, reference it for work

2 Copyright Copyright 2011 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Trademarks Microsoft, WINDOWS, NT, EXCEL, Word, PowerPoint and SQL Server are registered trademarks of Microsoft Corporation. IBM, DB2, OS/2, DB2/6000, Parallel Sysplex, MVS/ESA, RS/6000, AIX, S/390, AS/400, OS/390, and OS/400 are registered trademarks of IBM Corporation. ORACLE is a registered trademark of ORACLE Corporation. INFORMIX -OnLine for SAP and INFORMIX Dynamic ServerTM are registered trademarks of Informix Software Incorporated. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, the Citrix logo, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, MultiWin and other Citrix product names referenced herein are trademarks of Citrix Systems, Inc. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. JAVA is a registered trademark of Sun Microsystems, Inc. JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, SAP Logo, R/2, RIVA, R/3, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mysap.com Logo and mysap.com are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies. Disclaimer THESE MATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR APPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE SERVICE, INFORMATION, TEXT, GRAPHICS, LINKS, OR ANY OTHER MATERIALS AND PRODUCTS CONTAINED HEREIN. IN NO EVENT SHALL SAP BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS, WHICH MAY RESULT FROM THE USE OF THESE MATERIALS OR INCLUDED SOFTWARE COMPONENTS. g

3 About This Handbook This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study. Typographic Conventions American English is the standard used in this handbook. The following typographic conventions are also used. Type Style Example text Example text EXAMPLE TEXT Example text Example text <Example text> Description Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths, and options. Also used for cross-references to other documentation both internal and external. Emphasized words or phrases in body text, titles of graphics, and tables Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example SELECT and INCLUDE. Screen output. This includes file and directory names and their paths, messages, names of variables and parameters, and passages of the source text of a program. Exact user entry. These are words and characters that you enter in the system exactly as they appear in the documentation. Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries SAP AG. All rights reserved. iii

4 About This Handbook AC612 Icons in Body Text The following icons are used in this handbook. Icon Meaning For more information, tips, or background Note or further explanation of previous point Exception or caution Procedures Indicates that the item is displayed in the instructor's presentation. iv 2011 SAP AG. All rights reserved. 2011

5 Contents Course Overview... vii Course Goals...vii Course Objectives... viii Unit 1: General Ledger Accounting (New)... 1 New General Ledger Accounting - Basic Information...2 Global Settings in New General Ledger Accounting for Profit Centers...9 Unit 2: Profit Center Master Data in New General Ledger Accounting Profit Center Master Data Profit Center Assignments Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting Profit Center Update: Overview Integration with Asset Accounting Data Flow from Materials Management Data Flow from Cost Object Controlling Transfer from Sales and Distribution Allocations in Profit Center Accounting Unit 4: Profit Center Reorganization Profit Center Reorganization Unit 5: Profit Center Planning in New General Ledger Accounting Planning Configuration and Manual Planning Integrated Planning Unit 6: Information System Short Overview of Standard Delivered Drilldown Reports Appendix 1: Special Cases for Profit Center Derivation SAP AG. All rights reserved. v

6 Contents AC612 vi 2011 SAP AG. All rights reserved. 2011

7 Course Overview Course AC612 teaches the knowledge and skills you need to set up Profit Center Accounting in an SAP ERP Financials system with the new General Ledger Accounting activated. In addition to the basics of new General Ledger Accounting, the course gives you a detailed overview of the value flows in an SAP system. The course concentrates on flexible drilldown reporting for the analysis of planned and actual data. Target Audience This course is intended for the following audiences: Project team members responsible for implementing Profit Center Accounting People responsible for Financial Accounting Course Prerequisites Required Knowledge Basic knowledge or experience with Profit Center Accounting AC010 (Business Processes in Financial Accounting), or AC040 (Business Processes in Management Accounting) Recommended Knowledge Knowledge of Financial Accounting and Controlling SAP AG. All rights reserved. vii

8 Course Overview AC612 Course Goals This course will prepare you to: Set up Profit Center Accounting in an SAP ERP Financials system where the new General Ledger Accounting has been activated Describe and maintain global Profit Center Accounting settings, including master data Understand the transaction data that is generated as a result of actual postings in Profit Center Accounting Understand the transaction data that is generated as a result of plan postings in Profit Center Accounting Understand the operating mode of the EHP5 functionality Profit Center Reorganization Gain an overview of the standard delivered drilldown reports to analyze Profit Center Accounting data Course Objectives After completing this course, you will be able to: Name the benefits of using the new General Ledger Accounting for Profit Center Accounting Set up Profit Center Accounting in SAP ERP Financials with the new General Ledger Accounting activated Describe, how a reorganization of profit centers works Use profit center drilldown reports in the new General Ledger Accounting SAP Software Component Information The information in this course pertains to the following SAP Software Components and releases: ERP 6.05 viii 2011 SAP AG. All rights reserved. 2011

9 Unit 1 General Ledger Accounting (New) Unit Overview With SAP ERP, the SAP system offers an interesting alternative in General Ledger Accounting: The new General Ledger Accounting (new G/L) Unit Objectives After completing this unit, you will be able to: Describe how new General Ledger Accounting works in conjunction with Profit Center Accounting Understand the settings for defining ledgers Understand the settings for document splitting Understand the settings for real-time CO FI integration Unit Contents Lesson: New General Ledger Accounting - Basic Information...2 Lesson: Global Settings in New General Ledger Accounting for Profit Centers...9 Exercise 1: Global Settings in General Ledger Accounting (new) SAP AG. All rights reserved. 1

10 Unit 1: General Ledger Accounting (New) AC612 Lesson: New General Ledger Accounting - Basic Information Lesson Overview With SAP ERP, SAP offers an interesting alternative in General Ledger Accounting: General Ledger Accounting (new) - or new G/L. Lesson Objectives After completing this lesson, you will be able to: Describe how new General Ledger Accounting works in conjunction with Profit Center Accounting Business Example Your company management is considering using Profit Center Accounting in new General Ledger Accounting for an implementation of SAP ERP Financials. They would like to know what advantages this has in terms of Profit Center Accounting. Advantages of New General Ledger Accounting Figure 1: New General Ledger Accounting (New G/L) SAP AG. All rights reserved. 2011

11 AC612 Lesson: New General Ledger Accounting - Basic Information * Info for existing customers: If you think the advantages of new G/L are useful, you can convert to new General Ledger Accounting in a migration project. The migration to new G/L is only possible after the upgrade to SAP ERP. For more information, see Hint: Information for new customers: To obtain more information about the new G/L system settings in case of a new installation, see SAP Note New G/L advantages - Overview: The new G/L uses an extended data structure as standard. You can also add customer fields to the totals table in the new General Ledger, for inclusion in financial statements. Using document splitting, you can create financial statements for entities such as segments and profit centers, entities below the company code level. Reconciliation between CO and FI can be carried out in real time real-time integration between CO and FI making time-consuming reconciliation activities a thing of the past. The ledger solution (within new G/L) is a new approach to picture parallel accounting in an SAP system. Figure 2: Options in New General Ledger Accounting SAP AG. All rights reserved. 3

12 Unit 1: General Ledger Accounting (New) AC612 Figure 3: General Ledger Accounting (New): One Component - Many Functions Prior to SAP ERP, SAP customers had to have a variety of components installed and in use to optimally fulfill the international or industry-specific requirements and standards. The situation may be even more critical in cases where service enterprises (for example, in the areas public sector, insurance companies, media) increasingly require financial statements that fulfill other criteria, such as grant, fund, or industry sectors. The increasing importance of IFRS as an accounting principle is giving rise to increased demands for the improved quality and capability of modeling segment reporting. A standardized solution is also relevant to areas such as fast closing and Sarbanes-Oxley. Overview of the totals tables in the conventional components: Classic FI: Table GLT0 COS ledger: Table GLFUNCT Reconciliation ledger: Table COFIT EC-PCA / classic Profit Center Accounting: Table GLPCT SAP AG. All rights reserved. 2011

13 AC612 Lesson: New General Ledger Accounting - Basic Information Figure 4: Advantages of new General Ledger Accounting Overview The new General Ledger Accounting and new general ledger are both abbreviated as "new G/L". Basic architecture of the new G/L in SAP ERP: SAP Note The user interfaces for entering data and postings are nearly identical to the UIs in the previous release, despite all the new features. Cost-of-Sales Accounting and Profit Centers Figure 5: Assignment of Functional Areas in the P&L Statement When you use the period accounting approach, the system breaks down the operating results by revenue and cost element. This makes it possible to recognize which factors of production cause the costs that are incurred. The total costs for the SAP AG. All rights reserved. 5

14 Unit 1: General Ledger Accounting (New) AC612 period can then be compared to the total revenues earned during the same period. These costs include the costs of all the goods and services that were produced in the period but have not yet been sold (increases in stock) plus the goods and services produced in previous periods and sold in this period (reductions in stock). This sum, together with the capitalized internal activities and the changes to work in process, yields the total result for the period. The more sales-oriented cost-of-sales approach compares the costs to the corresponding quantity structure of the revenues. Revenues are only compared to the costs incurred for the quantity of goods or services sold. When products are sold from stock, it may be that the costs were incurred during a previous period. In this approach, no distinction is made between different cost elements. Instead, resource usage is divided according to the functions R&D, production, sales, and administration. To calculate profits according to the cost-of-sales approach, you need to use the derived functional area characteristic. You can use period accounting and/or cost-of-sales accounting in Profit Center Accounting. If you want to use cost-of-sales accounting, you have to activate the COS accounting scenario and configure the corresponding settings. Figure 6: Cost-of-Sales Accounting: Overview SAP AG. All rights reserved. 2011

15 AC612 Lesson: New General Ledger Accounting - Basic Information This slide shows the following example postings: Sales revenues from SD (1) Cost of goods sold from MM goods issue (2) Production variances from the settlement of the production order (3) All debits and credits of all the production cost centers (overabsorption/underabsorption) (3a) All postings to cost centers affecting the functional areas Sales, Administration and Research & Development (3b) Adjustment postings resulting from real-time integration back to new G/L in the case of secondary, cross-functional area postings (3c) Postings to profitability segments (4) Other expenses (5) SAP AG. All rights reserved. 7

16 Unit 1: General Ledger Accounting (New) AC612 Lesson Summary You should now be able to: Describe how new General Ledger Accounting works in conjunction with Profit Center Accounting SAP AG. All rights reserved. 2011

17 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers Lesson: Global Settings in New General Ledger Accounting for Profit Centers Lesson Overview This lesson shows the basic settings needed in new General Ledger Accounting to assign profit center accounts. The settings apply not only to profit centers, but also to all additional account assignments in Financial Accounting for which you want to map complete financial statements. Lesson Objectives After completing this lesson, you will be able to: Understand the settings for defining ledgers Understand the settings for document splitting Understand the settings for real-time CO FI integration Business Example Your company activated the new general ledger to capture the benefits of a single, uniform data structure, document splitting, and real-time CO FI integration. After migration from the conventional general ledger to General Ledger Accounting (new), you want to map organizational divisions as profit centers to report full financial statements and profitability analysis. You are a member of the project team that has been asked to verify whether the necessary settings have been made in the test system SAP AG. All rights reserved. 9

18 Unit 1: General Ledger Accounting (New) AC612 Ledger Definition and Profit Centers Figure 7: Activating New General Ledger Accounting The new general ledger is always active in new installations (SAP ERP). If existing customers decide that they want to use the new general ledger, it must be activated using a Customizing transaction (=> FAGL_ACTIVATION). In practice, setting the activation switch (for existing customers) is one of the final activities of a migration project. The activation switch is set for each client. The activation causes system-wide changes that affect the application and Customizing paths SAP AG. All rights reserved. 2011

19 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers Figure 8: Benefits in Detail - Extended Data Structure More entities are updated in the totals table of the new general ledger (FAGLFLEXT) than possible in the classic totals table (GLT0). The new standard fields include profit center, segment, functional area, and cost center. You can expand the totals table FAGLFLEXT with additional fields in addition to the SAP fields that are already present; these can be new, customer-specific fields. Figure 9: Scenarios - Definition and Assignment SAP AG. All rights reserved. 11

20 Unit 1: General Ledger Accounting (New) AC612 The fields updated using these scenarios can then be used to construct business situations - for example, Profit Center Accounting with segment reporting and/or cost-of-sales accounting. To see the available scenarios, choose the following Customizing path: Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Fields Display Scenarios for General Ledger Accounting. You cannot define customer-specific scenarios. The delivered scenarios are assigned to the ledgers in Customizing: Financial Accounting (New) Financial Accounting Global Settings (New), Ledgers Ledger Assign Scenarios and Customer Fields to Ledgers. You can assign one, several, or even all six scenarios to a ledger. The decision as to how many scenarios you should assign depends solely on the question: Which situations or business aspects do you want to model in the general ledger? Figure 10: Entry and General Ledger View The posting screens and document views look the same from the end user perspective. However, the general ledger view provides the additional internal view of the document SAP AG. All rights reserved. 2011

21 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers Figure 11: Scenarios - Assignment and Functions (1) The Purchased Services account (417000) is defined as a primary cost element in CO, and therefore requires a CO-relevant account assignment at entry. The profit center characteristic and functional area are then derived from the CO object (such as cost center). You can now derive the segment characteristic from the profit center characteristic. If you do not assign any scenarios, none of the entities will be inherited to the general ledger. Impact of a missing scenario assignment: If you now call up a balance sheet (and profit & loss statement), the system displays the amount of on the Activities Purchased account. However, it is impossible to assign the accounting transaction to a business area, a functional area, a profit center, or any other entity. Therefore, it is also impossible to call up segment financial statements if you have not assigned any scenarios to a ledger. Subsequent changes of scenario assignments to a ledger in General Ledger Accounting can result in serious inconsistencies in document processing. Deleting scenario assignments can also result in inconsistencies. An appropriate warning message appears when you try to make these changes in Customizing. Excerpt from SAP Note New GL/Document splitting: Risks w/subsequent changes: In contrast with the special ledger or the EC-PCA, subsequent changes are not considered in the general ledger (new) since the ledgers of the general ledger (new) are not comparable with a special ledger or the EC-PCA. In fact, the general ledger (new) is a general ledger from a business point of view and is therefore legally comparable with the classic General Ledger, the GLT0 ledger 00. Thus, there is an auditing requirement SAP AG. All rights reserved. 13

22 Unit 1: General Ledger Accounting (New) AC612 Figure 12: Scenarios - Assignment and Functions (2) Since the profit center update and segment reporting scenarios are assigned to the leading ledger, 0L, these two entities are both updated in the general ledger and displayed in the corresponding general ledger view. The Functional Area field, for example, is not updated or displayed in the general ledger view, since this scenario was not previously assigned to the leading ledger. However, scenario assignment cannot manage a "zero balance setting" for any given entity. In more detail, using a profit center (PC) as an example: It would not (yet) be possible to create complete profit center financial statements, because the profit center has not (yet) been enriched in posting lines 2 and 3. To do this, you also have to configure and activate document splitting SAP AG. All rights reserved. 2011

23 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers Figure 13: Using the Segment Entity Segments can be used to fulfill the requirements of international accounting regulations (IFRS or US-GAAP) after you use segment reporting. Excerpt from IFRS 8: Operating Segments 5. An operating segment is a component of an entity: a) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity); b) whose operating results are reviewed regularly by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and c) for which discrete financial information is available. Otherwise, you can also use the objects business area or profit center. The segment is also available, since the business area and/or profit center were often used for other purposes in the past, and, therefore, fulfill other requirements SAP AG. All rights reserved. 15

24 Unit 1: General Ledger Accounting (New) AC612 Document Splitting and Profit Centers Figure 14: Document Splitting Reasons The system requirements could be even simpler - it is not necessary for the expense lines to contain different profit center assignments. The root of the requirement is that, for example, the payable items line (of the general ledger view) must have a "profit center account assignment" if proper profit center financial statements are to be created at all SAP AG. All rights reserved. 2011

25 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers Figure 15: Document Splitting Characteristics To define the splitting characteristics, choose the following menu path in Customizing: Financial Accounting (New) General Ledger Accounting (New) Business Transactions Document Splitting Define Document Splitting Characteristics for General Ledger Accounting. The system uses the assigned scenarios to propose useful document splitting characteristics. If you decide to use more splitting characteristics, make sure that they are contained in at least one ledger. Set the Zero Balance indicator, if you want to create a balance sheet for the characteristic. This ensures that the balance of these entities is set to 0 in each posting, which makes an "entity balance sheet" possible. The required field indicator has two meanings: Firstly, it extends the field status for accounts whose characteristics are not ready for input during document entry, or for accounts that cannot be controlled using field status. Example: The vendor line should always contain a profit center or segment. Secondly, it checks whether a business transaction variant that is equivalent to a business-process is used (and thus, a splitting rule can be found) SAP AG. All rights reserved. 17

26 Unit 1: General Ledger Accounting (New) AC612 Figure 16: Activating Document Splitting To activate document splitting, go to Customizing for the new general ledger: Financial Accounting (New) General Ledger Accounting (New) Business Transactions Document Splitting Activate Document Splitting. The standard splitting procedure delivered by SAP is splitting procedure If you activate document splitting, there is no reason why you should not activate inheritance as well. Activating the inheritance when document splitting is active allows you to post documents without having to make any other changes in Customizing. Inheritance is carried out online at the document line level. If you want to use a default account assignment, you must first create a new constant in Customizing: Financial Accounting (New) General Ledger Accounting (New) Business Transactions Document Splitting Edit Constants for Nonassigned Processes SAP AG. All rights reserved. 2011

27 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers Figure 17: Document Splitting - Active Split The entities that you defined as document splitting characteristics are inherited by the posting lines without account assignment. As you can see clearly on the slide, the selected characteristics balance to zero. In this rule-based split, the vendor and tax lines (items 1 and 4) are split in the same way as the expense lines/the expense basic item category (items 2 and 3; expense accounts and ) in the general ledger view SAP AG. All rights reserved. 19

28 Unit 1: General Ledger Accounting (New) AC612 Figure 18: Document Splitting - The Splitting Logic of an Active Split Figure 19: Document Splitting Zero Balance Formation Briefly, a splitting process is the total of all the splitting rules of all business transactions. The splitting process defines the way in which a document split should be carried out. Specifically, this means that each splitting procedure contains a definition that describes how the individual item categories are to be SAP AG. All rights reserved. 2011

29 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers treated in the individual business transactions; for example, whether or not the system should copy the account assignment of a customer item from the revenue item in a customer invoice. The business transaction is a general subgroup of actual business processes, which is delivered by SAP and to which extensive item categories are assigned. The business transaction variant is a specific version of the business transaction provided by SAP, and is a (technical) representation of a real business process for document splitting. An item category is a (technical) representation of the posted document lines. It describes the items that can be found within a document (a business transaction). They are derived from the balance types of the G/L accounts, among others. In other words, the item category is the semantic description used for document splitting. The individual splitting rules define which item categories can/should be split (item categories to be edited), and at the same time, determines the basis on which the split can take place (base item categories). Figure 20: Simulating the General Ledger View In Release SAP ERP 6.0 and later, you can simulate the general ledger view as well as the entry view before posting. This allows you to analyze, earlier and more effectively, errors that would cause a termination during posting. You can display the detail data of the document split using the expert mode SAP AG. All rights reserved. 21

30 Unit 1: General Ledger Accounting (New) AC612 Figure 21: Document Simulation Expert Mode (1) Figure 22: Document Simulation Expert Mode (2) SAP AG. All rights reserved. 2011

31 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers Real-Time CO-FI Integration and Profit Centers Real-time integration is used to copy internal Controlling postings to Financial Accounting and its account assignments, including Profit Center Accounting. Figure 23: Real-Time CO-FI Integration SAP has had real-time integration from financial accounting (FI) to management accounting (=> CO) for a long time. The other way around, from CO to FI was previously not possible in real time. This affects changes to characteristics for the following processing/transactions such as: Periodic clearings (assessment, distribution, reposting). Manual repostings in CO [transaction codekb11(n)]. Activity allocations [transaction code KB21(N)]. Settling orders or projects [transaction codes KO88 and CJ88]. The reconciliation ledger that was to be maintained in the cost element invoice is always used to reconcile CO with financial accounting. Summary standardizing entries and reconciliation postings were made with periodic program runs for each cost element/expense account: Transaction code KALC. The transaction KALCis no longer usable after activating the new general ledger by default you will be notified of the real-time integration between CO and FI SAP AG. All rights reserved. 23

32 Unit 1: General Ledger Accounting (New) AC612 Figure 24: Variants for Real-Time Integration To define the variants for real-time CO FI integration, choose the following Customizing path: Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Define Variants for Real-Time Integration In a subsequent step, assign the variant to your company code(s). To determine the characteristic changes for which real-time FI document lines need to be created, you can also define Boolean rules in addition to the checkboxes, or implement your own logic by programming a BAdI. It is impractical to select characteristics that were not originally assigned to at least one ledger using the scenarios. The key date activation date determines the time (or date of the CO document posting) after which the reconciliation between CO and FI using the real-time integration can be executed. You can also generate FI documents for CO documents that were entered before activation of the new general ledger. You must define an account determination to be able to transfer secondary cost elements from CO into FI. To maintain account determination choose: Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Define Account Determination for Real-Time Integration You can also transfer primary costs into FI using an account determination, which normally works with the original cost elements SAP AG. All rights reserved. 2011

33 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers Figure 25: Real-Time Integration: Example This slide illustrates real-time CO FI integration based on the profit center characteristic. The functional area, segment, and business area characteristics are not considered in the example for simplicity's sake. The Financial Accounting document (2b.) is posted in real time (for each CO document) - a (periodic) reconciliation using the reconciliation ledger in transaction code KALC is not involved. The above diagram omits the clearing accounts for each profit center for simplicity's sake. These clearing accounts are needed if the profit center represents an independent accounting unit. You define them in account determination for real-time integration SAP AG. All rights reserved. 25

34 Unit 1: General Ledger Accounting (New) AC SAP AG. All rights reserved. 2011

35 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers Exercise 1: Global Settings in General Ledger Accounting (new) Exercise Objectives After completing this exercise, you will be able to: Understand the settings of new General Ledger Accounting that are relevant for Profit Center Accounting Business Example Your company wants to report full profit center financial statements at the product level. You need to check whether the settings for the new general ledger in the test system allow this. Task: You need to check the settings in the test system for ledger definition, document splitting, and real-time integration. 1. Does the test system allow you to carry out Profit Center Accounting with profit and loss statements based on cost-of-sales accounting? Can you evaluate the segments? 2. Can you report a zero balance at the profit center level? 3. Can secondary cost postings from CO be transferred to the new general ledger? SAP AG. All rights reserved. 27

36 Unit 1: General Ledger Accounting (New) AC612 Solution 1: Global Settings in General Ledger Accounting (new) Task: You need to check the settings in the test system for ledger definition, document splitting, and real-time integration. 1. Does the test system allow you to carry out Profit Center Accounting with profit and loss statements based on cost-of-sales accounting? Can you evaluate the segments? a) Implementation Guide: Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Ledger Assign Scenarios and Customer Fields to Ledgers The following scenarios are active in ledger 0L: profit center update, segment reporting, and cost-of-sales accounting. 2. Can you report a zero balance at the profit center level? a) Implementation Guide: Financial Accounting (New) General Ledger Accounting (New) Business Transactions Document Splitting Define Document Splitting Characteristics for General Ledger Accounting The Profit Center and Segment characteristics are set to balance 0 as required characteristics. This ensures that both profit center and segment are always assigned accounts. b) Implementation Guide: Financial Accounting (New) General Ledger Accounting (New) Business Transactions Document Splitting Activate Document Splitting Document splitting is active and the inheritance indicator is set. As a result, the document splitting characteristics are inherited in every document line. Continued on next page SAP AG. All rights reserved. 2011

37 AC612 Lesson: Global Settings in New General Ledger Accounting for Profit Centers 3. Can secondary cost postings from CO be transferred to the new general ledger? a) Implementation Guide: Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Assign Variants for Real-Time Integration to Company Codes Company code 1000 has assigned variant EZI. b) Implementation Guide: Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Define Variants for Real-Time Integration Cross-profit center and cross-segment real-time integration is active in variant EZI SAP AG. All rights reserved. 29

38 Unit 1: General Ledger Accounting (New) AC612 Lesson Summary You should now be able to: Understand the settings for defining ledgers Understand the settings for document splitting Understand the settings for real-time CO FI integration SAP AG. All rights reserved. 2011

39 AC612 Unit Summary Unit Summary You should now be able to: Describe how new General Ledger Accounting works in conjunction with Profit Center Accounting Understand the settings for defining ledgers Understand the settings for document splitting Understand the settings for real-time CO FI integration SAP AG. All rights reserved. 31

40 Unit Summary AC SAP AG. All rights reserved. 2011

41 AC612 Test Your Knowledge Test Your Knowledge 1. Profit Center Accounting allows zero balance formation in general. Determine whether this statement is true or false. True False SAP AG. All rights reserved. 33

42 Test Your Knowledge AC612 Answers 1. Profit Center Accounting allows zero balance formation in general. Answer: False In addition to activating the profit center update scenario, you also need document splitting for the profit center characteristic with inheritance indicator SAP AG. All rights reserved. 2011

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45 Unit 2 Profit Center Master Data in New General Ledger Accounting Unit Overview This unit how to define the master data of profit centers and assign them to account assignment objects in an SAP ERP system. Unit Objectives After completing this unit, you will be able to: Create the standard hierarchy Maintain profit center master data Assign profit center master data to the account assignment objects in SAP ERP Unit Contents Lesson: Profit Center Master Data Exercise 2: Master Data Lesson: Profit Center Assignments Exercise 3: Profit Center Assignments SAP AG. All rights reserved. 35

46 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 Lesson: Profit Center Master Data Lesson Overview You define profit centers and other master data in Financials. Lesson Objectives After completing this lesson, you will be able to: Create the standard hierarchy Maintain profit center master data Business Example Your project team wants to find out about the master data definition of profit centers in the new general ledger. You want to find out about the technical settings to present them at a project meeting. Profit Center Structure Regional profit center structure (sales-oriented) Functional profit center structure Product-related profit center structure Business unit profit center planning Profit Center Accounting supports a division of the enterprise into areas of responsibility for profits. You can divide your enterprise according to the following aspects: Geographical structure of profit centers (locations, regions, and so on) Product-related structure of profit centers (divisions, product lines, and so on) Functional structure of profit centers (production, sales, research, and so on) Mixed forms of these structures are also possible. You can, for example, opt for a regional structure based on business locations and then subdivide each location by the products made there. You create the profit center master data accordingly to define this organizational structure. For evaluations at a higher level of aggregation, you can combine profit center groups. The standard hierarchy is a special profit center group. In addition to this, you can define alternative groups SAP AG. All rights reserved. 2011

47 AC612 Lesson: Profit Center Master Data Figure 26: The Profit Center Standard Hierarchy To create a profit center, you first have to define a hierarchical profit center structure with the following menu paths: Customizing: Financial Accounting (New) General Ledger Accounting (New) Master Data Profit Center Define Profit Center Standard Hierarchy in Controlling Area Application: Financial Accounting General Ledger Master Records Profit Center Standard Hierarchy Create This structure is called the standard hierarchy. The standard hierarchy is a tree structure that contains all the profit centers in a controlling area. When you create a profit center, you have to assign it to a hierarchy area (hierarchy node) in the standard hierarchy. This ensures that all profit centers in the controlling area end at the same node. The first step is to establish the name of the standard hierarchy for the profit centers. The system creates the top node or group of the standard hierarchy automatically when you save your settings. You can then maintain it to create the lower level nodes required to complete your hierarchy. You can maintain the standard hierarchy in Customizing or from the application menu. In addition to the standard hierarchy, you can also define profit center groups (alternative hierarchies), which you can use in reporting, planning, and allocation SAP AG. All rights reserved. 37

48 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 Figure 27: Profit Center Master Data A profit center is defined at controlling area level. When creating a profit center, you enter the name of the profit center and the period of validity. Profit center master data is time-dependent, which means that you can create different data for different periods. You can copy master data information from an existing profit center. You maintain the important master data - such as the profit center name and description, the person in charge, and the department - on the basic screen. The Hierarchy Area field defines the assignment to a node in the standard hierarchy. By selecting the lock indicator, you can lock the profit center against postings for the specified time interval. If an account assignment object is assigned to a locked profit center and you attempt to post to it, the system will display an error message and does not post the data. You can enter more information for the profit center on additional screens, such as address and communication data and long text. By default, a profit center is assigned to all the company codes within the controlling area. You can exclude certain company codes for a profit center by not selecting them. If you attempt to post data to profit centers in company codes that are not assigned to the profit center in question, the system will not carry out such postings. To create profit centers, use the following menu paths: In the application menu: Accounting Financial Accounting General Ledger Master Records Profit Center Individual Processing Create SAP AG. All rights reserved. 2011

49 AC612 Lesson: Profit Center Master Data In Customizing: Financial Accounting (New) General Ledger Accounting (New) Master Data Profit Center Define Profit Centers Figure 28: Profit Center - The Dummy Profit Center The dummy profit center is the primary default value for postings to an account assignment object in an accounting area if no other profit center is assigned. You can find out which objects are not assigned to profit centers by analyzing the postings assigned to the dummy profit center. You can also assess or distribute data from the dummy profit center to the desired profit centers. In the new general ledger - in contrast to classic Profit Center Accounting - you do not have to define or use a dummy profit center. Postings to account assignment objects that do not have assigned profit centers are simply made without profit centers - that is, the profit center field remains blank in the corresponding document items. Postings without profit centers can be assessed or distributed to the desired profit centers (similar to postings to a dummy profit center). If you define a dummy profit center, make sure you do not use it as a default profit center by mistake. Define separate profit centers for this case instead. If you use document splitting, using the dummy profit center may have the following effect: Payables can be allocated to the dummy profit center as a result of document splitting if no profit centers are assigned to the account assignments of the corresponding expense lines. You cannot repost the payables manually in this case. If you activate document splitting for document centers, we do not recommend using a dummy profit center. If you want to make sure that a profit center account is assigned in all document lines, you can use set the profit center as a required-entry field in Customizing for document splitting. Note, however, that if you do so, and there are postings to account assignment objects that do not have profit center assignments, a termination will occur with the error message SAP AG. All rights reserved. 39

50 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 Accounting field segment is not filled in document line. If you still use classic Profit Center Accounting in parallel to the new general ledger, you have to define a dummy profit center. A special Customizing transaction is available to create the dummy profit center. Financial Accounting (New) General Ledger Accounting (New) Master Data Profit Center Create Dummy Profit Center This procedure is almost the same as that for creating normal profit centers - the only differences being: You do not specify a validity period. The dummy profit center is automatically valid for the maximum validity period. You cannot copy the dummy profit center from an existing profit center. A flag identifying the profit center as the dummy profit center is set automatically (in the indicator folder). You change and display the dummy profit center using the normal maintenance transactions for profit centers. Figure 29: Assigning Default Profit Center Accounts Default profit centers are profit centers that do not reflect an organizational area of responsibility, but instead are used to collect costs, revenues, and postings to balance sheet accounts within a posting period. At the end of the period, you can assess or distribute the posted data from the default profit center to the desired profit centers. Clearing profit centers are often referred to as default profit centers. In contrast to the dummy profit center, however, default profit centers can be derived specifically based on other information SAP AG. All rights reserved. 2011

51 AC612 Lesson: Profit Center Master Data The procedure for creating master data for default profit centers is like that for creating master data for your true profit centers. Default profit centers have the same structure as all other profit centers. In contrast to the dummy profit centers, default profit centers can be derived specifically from other information, such as the company code or account. You can define default profit centers for each company code and account interval under the following menu path in Customizing: Financial Accounting (New) General Ledger Accounting (New) Master Data Profit Center Assign Default Profit Center to Accounts The default profit center is derived under the following circumstances: If no profit center is specified in the posting If a profit center cannot be derived from the cost element, for example, using the cost center, the order, or the like This means derivation is only helpful for P&L and balance sheet account for which the profit centers are not derived or specified. Derivation takes place when the posting is made. You should only define default profit centers for accounts for which document splitting is not active. Select an account interval and assign the profit center to be derived. If you leave the Account to field blank, it is set to the same value as the Account from field. If you use document splitting in the new general ledger, there is a similar function, the default account assignment (in Customizing under Financial Accounting (New) General Ledger Accounting (New) Business Transactions Document Splitting Edit Constants for Nonassigned Processes). You can assign a default account assignment (such as a profit center or segment) here that is used whenever this object is missing in the item. If a default value (constant) is used, the quality of the dataset is poorer. You have to distribute these values at the end of the month, through either manual postings or allocation. If you use a default value, you should at least carry out the test phase of an implementation project without a default value, to ensure you detect potential errors in document splitting SAP AG. All rights reserved. 41

52 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 Figure 30: Collective Master Data Processing Collective processing is particularly useful when you need to adapt existing data to a change in circumstances, for example, if certain master data fields (such as the department, person responsible) or company code assignments have to be changed. You can call collective processing in the following areas: Accounting Financial Accounting General Ledger Master Records Profit Center Collective Processing Master Data Accounting Financial Accounting General Ledger Master Records Profit Center Collective Processing Company Code Assignment Figure 31: Accounts in Profit Center Accounting SAP AG. All rights reserved. 2011

53 AC612 Lesson: Profit Center Master Data Profit Center Accounting is based on the chart of accounts that is assigned to Financial Accounting. These accounts include: Stock accounts: The system uses these accounts to display the liability and equity sides of the balance sheet. These accounts are not used in controlling. For example, there are no material stocks for cost centers in the standard system. P&L accounts: The system uses these accounts to generate the profit and loss statement. If you want to use these P&L accounts in controlling as well, you create primary cost elements in controlling, for example, for material consumption by cost objects or cost centers. Secondary cost elements: These costs are generated through allocations within controlling (allocation of machine hourly rates in production or assessment of overhead costs). While these costs are not offset by external consumption in the profit and loss statement from a business perspective, they can be transferred using real-time CO FI integration to the new general ledger and therefore to Profit Center Accounting. Figure 32: Derivation of a Segment The US-GAAP and IFRS accounting principles require segment reporting. You can define segments in your SAP system for this purpose. The corresponding IMG activity is located in Customizing under Enterprise Structure Definition Financial Accounting Define Segment. You can enter a segment in the master record of a profit center. The segment characteristic is only derived together with the profit center characteristic. If no segment is entered manually during posting (only possible in Financial Accounting transactions), the segment is determined from the master record of the profit center. In turn, this profit center can have a manual account assignment or can be derived itself. If you want to use different rules to derive the segment during posting, you can define your own SAP AG. All rights reserved. 43

54 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 These settings are located in Customizing under Financial Accounting (New) Financial Accounting Global Settings (New) Tools Customer Enhancements Business Add-Ins (BAdIs) Segment Derivation. The document splitting procedure is a prerequisite, and is also useful for creating financial statements and profit and loss statements for the segment dimension at any time. To enable this, you have to allow zero balances for the segment characteristic. US-GAAP requires nearly complete financial statements at segment level for reporting (basically everything but equity capital). In this approach, the segment is defined as an area of a company whose activities result in expenses and revenues. Its operating result is reviewed regularly by company and group management to assess its success and allocate resources, and is made available for the separate financial information. The IFRS segmentation requirements are nearly identical. The segment dimension is provided to map the segment level. You can use an ERP system to create a segment in the master data of a profit center. When you make a posting on the profit center, the segment is also posted. There is no dummy segment posting, unlike the profit center logic - if the profit center has no segments, then no segment assignment takes place. Deriving the segment from the profit center is the standard method. You can also use a BAdI called FAGL_DERIVE_SEGMENT to derive the segment. Figure 33: Derivation of a Segment (2) The segment is derived from the profit center characteristic because this characteristic already exists in various SAP objects, which means the segment characteristic can be derived from it automatically SAP AG. All rights reserved. 2011

55 AC612 Lesson: Profit Center Master Data For more information, see SAP Note : Officially, SAP only authorizes the use of segments if profit centers are used at the same time. The automatic derivation of segments is only possible with profit centers. Many business transactions, particularly in logistics, do not have an option for entering the segment manually. Moreover, several standard interfaces do not support the segment. For these reasons, the use of segments is only approved if you also use profit centers. If it is not possible to derive the segment characteristic from a profit center master record, you have to find a different way of assigning the segment accounts. Options include manual entry, BAdI implementation (BAdI: FAGL_DERIVE_SEGMENT), defining substitution rules, and a standard account assignment (which usually involves document splitting). In addition to BAdI FAGL_DERIVE_SEGMENT, BAdI FAGL_DERIVE_PSEGMENT is available for deriving the partner segment. Figure 34: Statistical Key Figures Statistical key figures are values or quantities (for example, number of phone calls, sq. m. area, number of employees) that give further details on the setup, the consumption or performance output of cost centers, internal orders, processes or profit centers. You can post statistical key figures both in the plan and in the actual. You can use statistical key figures both as an allocation base for periodic distributions or assessments and to create key figures (ratios such as personnel costs per employee) SAP AG. All rights reserved. 45

56 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 You can define statistical key figures as either fixed values or totals (transaction code KK01), which means they are also available in the new general ledger. The fixed value is carried over from the period in which it is posted to all subsequent periods of the same fiscal year. You only have to enter a new posting when the value changes. Fixed values are defined when key figures remain constant over a significant period of time (such as the number of employees in a cost center). The totals value is not transferred to the following period but must be entered for each individual period and is preferable for statistical key figures whose values fluctuate in individual periods (such as power consumption in kwh). Statistical key figures can be transferred from the Logistics Information System by linking a key figure from LIS (such as order receipts) to a statistical key figure (such as in Cost Center Accounting). Figure 35: Master Data Groups Profit center groups are alternative hierarchies to the standard hierarchy. You can use them in reporting, distribution and assessment, or various planning functions. In contrast to the standard hierarchy, these profit center groups do not have to contain all the profit centers in the controlling area. On the contrary, profit center groups let you select only certain profit centers and structure them hierarchically to allow you more flexibility. You can use the financial statement/profit and loss statement structure in the info system to display the report structures from Financial Accounting in profit center reports. You can create profit center groups in the following areas in the system: In the application menu: Accounting Financial Accounting General Ledger Master Records Profit Center Profit Center Group Create In Customizing: Financial Accounting (New), General Ledger Accounting (New), Master Data, Profit Center, Define Profit Center Groups SAP AG. All rights reserved. 2011

57 AC612 Lesson: Profit Center Master Data The transactions used for maintaining the cost element groups (such as KAH1) used in controlling are located under the following Customizing menu path: Financial Accounting (New) General Ledger Accounting (New) Master Data G/L Accounts Create Cost Element Groups SAP AG. All rights reserved. 47

58 Unit 2: Profit Center Master Data in New General Ledger Accounting AC SAP AG. All rights reserved. 2011

59 AC612 Lesson: Profit Center Master Data Exercise 2: Master Data Exercise Objectives After completing this exercise, you will be able to: Create profit center master data Explain the difference between a dummy profit center and a default profit center Business Example Your company wants to set up product-oriented profit center accounting, to allocate revenue responsibility to the respective company units. To do so, they set up one profit center for production and one for the product division area. The first test is to be performed with a new division for high-capacity pumps. Task 1: Create the following profit center master data in the standard hierarchy, H1. Navigate to the following node: H1 HE H9500 AC Create the following profit center master data: Analysis Period Name Long text Person Respons. Profit Center Segment 611## 01/01/cur. FY to 12/31/9999 Pumps Pump division Andy Admin MANF 612## 01/01/cur. FY to 12/31/9999 Pump Production Pump Production Division Paul Pump MANF Continued on next page SAP AG. All rights reserved. 49

60 Unit 2: Profit Center Master Data in New General Ledger Accounting AC Which activation status do these profit centers currently have and what are the consequences? 3. Activate the profit centers you created. 4. On the Company Codes tab, check whether your profit centers are assigned to company code Why does the test system have a dummy profit center? Task 2: You also need profit center groups for the information system. 1. Create the profit center group GROUP## with the description Group ## Profit Center outside the standard hierarchy. Assign the following profit centers: Profit Center Group GROUP## Group ## Profit Centers Assigned Profit Centers 611## Pump Division 612## Pump Production SAP AG. All rights reserved. 2011

61 AC612 Lesson: Profit Center Master Data Solution 2: Master Data Task 1: Create the following profit center master data in the standard hierarchy, H1. Navigate to the following node: H1 HE H9500 AC Create the following profit center master data: Analysis Period 611## 01/01/cur. FY to 12/31/ ## 01/01/cur. FY to 12/31/9999 Name Long text Person Respons. Pumps Pump Production Pump division Pump Production Division Andy Admin Paul Pump Profit Center Segment MANF MANF a) On the SAP Easy Access screen, choose: Accounting Financial Accounting General Ledger Master Records Profit Center Standard Hierarchy Change Navigate to the following node in the standard hierarchy: H1 HE H9500 AC612 Double-click node AC612 and then choose Edit Create Profit Center Enter the data for the new profit center in the profit center table. If necessary enter CO Area Which activation status do these profit centers currently have and what are the consequences? Answer: The profit centers are inactive. They can neither be assigned to account assignment objects nor be posted to. 3. Activate the profit centers you created. Answer: Choose Edit Activate. The Standard Hierarchy for Profit Centers: Change screen appears. Set the flag next to profit centers 611## and 612## and activate them. Then save the changes you made to the standard hierarchy. Continued on next page SAP AG. All rights reserved. 51

62 Unit 2: Profit Center Master Data in New General Ledger Accounting AC On the Company Codes tab, check whether your profit centers are assigned to company code Answer: Choose the Company Codes tab. Make sure that the indicator is set for company code 1000 in the Assigned column. 5. Why does the test system have a dummy profit center? Answer: The classic Profit Center Accounting (EC-PCA) is still active for testing purposes in the test system. All nonassigned postings in the profit and loss statement are posted to this profit center in EC-PCA. In the new general ledger, the profit center is inherited as a result of the document split for nonassigned document lines. Task 2: You also need profit center groups for the information system. 1. Create the profit center group GROUP## with the description Group ## Profit Center outside the standard hierarchy. Assign the following profit centers: Profit Center Group GROUP## Group ## Profit Centers Assigned Profit Centers 611## Pump Division 612## Pump Production a) On the SAP Easy Access screen, choose: Accounting Financial Accounting General Ledger Master Records Profit Center Profit Center Group Create Name the profit center group GROUP##. Enter Group ## Profit Centers as the name. Click the top node, GROUP##. Choose Edit Profit Center Insert Profit Center. On the input screen that appears, enter profit centers 611## and 612## on separate lines. Then save the profit center group GROUP## SAP AG. All rights reserved. 2011

63 AC612 Lesson: Profit Center Master Data Lesson Summary You should now be able to: Create the standard hierarchy Maintain profit center master data SAP AG. All rights reserved. 53

64 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 Lesson: Profit Center Assignments Lesson Overview You assign profit centers to the account assignment objects in the SAP system to ensure that all the data is transferred. Lesson Objectives After completing this lesson, you will be able to: Assign profit center master data to the account assignment objects in SAP ERP Business Example Your project team wants to understand how the profit center account assignments are derived for various account assignment objects in SAP ERP. You need to find out this information to prepare the project meeting. Figure 36: Profit Center Assignments You assign profit centers to all account assignment objects to which costs and revenues have been posted. These assignments also determine the transfer of balance sheet items to the individual profit centers. As a result of the assignment logic, the profit center is normally not posted to explicitly. Instead, data is derived from primary account assignment objects (cost centers, internal orders) SAP AG. All rights reserved. 2011

65 AC612 Lesson: Profit Center Assignments Generally, postings of costs and revenues to Profit Center Accounting are based on the assignment of sales orders/production orders and cost objects. Overhead costs are based on the assignment of the account assignment objects in Overhead Management (cost centers, internal orders, and so on) to profit centers. To maintain profit center assignments, use the following menu paths: On the SAP Easy Access screen, choose: Accounting Financial Accounting General Ledger Master Records Profit Center Current Settings In Customizing: Financial Accounting (New) General Ledger Accounting (New) Master Data Profit Center Assignments of Account Assignment Objects to Profit Centers Figure 37: Assignment of Controlling Objects You assign Overhead Cost Controlling objects (cost centers, internal orders, projects, business processes) to profit centers to observe the value flow between Financial Accounting and Overhead Cost Controlling from a profit center point of view. When you assign a controlling object to a profit center, the system makes sure that the controlling area is the same for the object and the profit center. Cost centers and business processes are assigned to a profit center in the Master Record Basic Data screen. The validity period of the profit center must completely contain the dates of the cost center or business process. Additionally, the assignment of a cost center or internal order to a profit center also implicitly assigns all assets assigned to this cost center or internal order to the profit center as well SAP AG. All rights reserved. 55

66 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 You link internal orders to a profit center in the Order Master Data Assignments screen. Maintenance orders from the Plant Maintenance component are assigned to a profit center in the same way as internal orders. Cost objects are used in Product Cost Accounting to collect and store costs that cannot be assigned to objects at a lower level (orders, projects, or cost centers). However, in certain circumstances, you may need to assign a cost object to a profit center. The assignment logic used here is the same as that used for assigning cost centers. Unlike other assignment objects, profitability segments do not have master records. A profitability segment is a combination of characteristics, such as a customer, product, plant, distribution channel, and so on. The profit center is always one of the characteristics. Figure 38: Assigning Projects Projects are generally used to carry out complex, long-term tasks. This makes it possible for several profit centers to be involved in a single project, for example, constructing a ship. One profit center might be responsible for producing the engine, while another would be responsible for the internal fittings. Profit centers are therefore assigned to the various data-bearing structures in the project rather than to the project definition itself. These structures are: Work breakdown structure element (WBS element) Network header Network operation SAP AG. All rights reserved. 2011

67 AC612 Lesson: Profit Center Assignments In the project definition or the project profile, you can enter a profit center that is to be used as the default for the individual WBS elements. You can overwrite this value in the individual structures. If a WBS element is not assigned to a profit center, the system posts to the dummy profit center. If a network header is not assigned to a profit center, the profit center is derived from the corresponding WBS element. If a network activity is not assigned to a profit center, the profit center is derived from the corresponding WBS element, provided that the activity is linked to a WBS element. Otherwise the profit center is taken from the network header. The assignment of these structures to a profit center makes it possible for you transfer work in process from projects to Profit Center Accounting, as well as seeing all costs and revenues in the derived profit centers. Figure 39: Assigning Materials The assignment of the material masters to profit centers is the basis for the assignment of sales and production orders. Furthermore, it forms the foundation for internal goods movement transactions and for the transfer of material stocks to Profit Center Accounting SAP AG. All rights reserved. 57

68 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 Materials are always assigned to a profit center at plant level. The example illustrates some of the options this approach provides: A profit center that represents a material in all plants (Profit Center I) A profit center that represents a plant, including all materials for the plant (Profit Center II) A profit center that represents a specific material for a specific plant (Profit Center III) The plant is assigned to a company code, which is in turn assigned to a controlling area. This controlling area must be the same as the controlling area to which the profit center belongs. You can assign materials directly in the material master or use the fast assignment function. Material maintenance is divided into several views. If you have selected the Sales: General/Plant Data view, you enter the profit center in the General plant parameters in this view. If this view is not relevant for this material (for example, with raw materials), you maintain the profit center in the Storage 2 view, also in the General plant parameters. However, the same profit center is always shown in the different views. Figure 40: Assigning Production and Sales Orders A production order contains an assignment to a profit center in the order master record. For PP production orders or process orders, you can find the Profit Center field under Header Assignment. For CO production orders, it is located on the initial screen SAP AG. All rights reserved. 2011

69 AC612 Lesson: Profit Center Assignments When you create a production order, the default profit center is taken from the master record (general plant parameters) of the material being produced. For process orders, the system proposes the profit center for the main product in the order. Consequently, you do not normally have to enter the profit center manually. All the primary and secondary costs posted to the production order are passed on to the assigned profit center, along with the credit posted when the production order is delivered or settled. This assignment is also used for transferring work in process to Profit Center Accounting. Production orders are carried out in a plant. Each plant is assigned to a company code, which in turn belongs to a controlling area. This controlling area and the controlling area of the profit center must be the same. Every order item in a sales order is assigned to a profit center. To find the profit center field, choose menu path Edit Item Account Assignment. The profit center for the material to be sold is proposed by default. Therefore, you do not normally have to enter the profit center manually. Figure 41: Assignment By Means of Substitution In the sales order, the profit center from the material master for the item to be sold is proposed by default. This default proposal allows a product-oriented division by profit centers (via the material) and a location-oriented division (via the plant), or a combination of both. If you wish to structure your company from a sales-oriented rather than a production-oriented view, you can also determine a profit center from the available fields in the sales order header or item with the help of substitution rules SAP AG. All rights reserved. 59

70 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 The following is a partial list of the fields from the sales order and related information that can be used to derive the profit center assignment: Business area Customer Customer group Customer groups 1-5 Distribution channel Category Material Material group Material groups 1-5 Material price group Order reason Plant Product hierarchy Sales district Sales group Sales office Sales organization Storage location If the system finds a valid substitution for a sales order, it uses this instead of the default found using the assignment on the material master record SAP AG. All rights reserved. 2011

71 AC612 Lesson: Profit Center Assignments Figure 42: Assignment Monitor (1) To use the new functionality of the assignment monitor business function FIN_GL_CI_2 has to be active. This business function is available with Enhancement Package 4. You can display and change assignments at the following places in the system: In SAP Easy Access: Accounting Financial Accounting General Ledger Master Records Profit Center Current Settings Assignment Overview In Customizing: Financial Accounting (New) General Ledger Accounting (New) Master Data Profit Center Assignments of Account Assignment Objects to Profit Centers Check Assignments SAP AG. All rights reserved. 61

72 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 Figure 43: Assignment Monitor (2) The assignment monitor provides you with an overview of all the assignments you have made to profit centers and supports you when you make or change assignments. For example, you can call up a list of all cost centers that have not been assigned to a profit center or profit center group, or a list of cost centers that are assigned to a particular profit center or profit center group. From here, you can jump directly to the transaction for changing the object. The fast entry screen in the Material menu enables you to assign a large number of material numbers to a profit center quickly. The Orders menu lets you analyze the following types of order: internal orders (CO), imputed cost orders (CO), CO production orders, PP production orders, process orders, network headers, and maintenance orders. The Cost Objects menu contains the general cost objects as well as the cost objects for process manufacturing. Hint: Incorrect assignments lead to incorrect transaction data in Profit Center Accounting, which is normally quite difficult to correct. You should therefore check your assignments very carefully SAP AG. All rights reserved. 2011

73 AC612 Lesson: Profit Center Assignments You can display and change assignments at the following places in the system: In SAP Easy Access: Accounting Financial Accounting General Ledger Master Records Profit Center Current Settings Assignment Overview In Customizing: Financial Accounting (New) General Ledger Accounting (New) Master Data Profit Center Assignments of Account Assignment Objects to Profit Centers Check Assignments SAP AG. All rights reserved. 63

74 Unit 2: Profit Center Master Data in New General Ledger Accounting AC SAP AG. All rights reserved. 2011

75 AC612 Lesson: Profit Center Assignments Exercise 3: Profit Center Assignments Exercise Objectives After completing this exercise, you will be able to: Use the assignment monitor to analyze profit center assignments Distinguish between and use the different assignment options Business Example You plan to use the pump division as a test case for product-oriented profit center accounting. Task 1: You assign the finished products, semi-finished products, and raw materials of the pumps to the profit centers. You want to include both asset accounting and cost center accounting in your calculations. 1. Create the following cost center in cost center accounting from January 1st of the current fiscal year: Cost Center Name Description Responsible Cost Center Category 4 Hierarchy Area T611## Pump Division Pump Division Cost Center Andy Admin H-AC612 Company Code 1000 Business Area 1000 Profit Center 611## Continued on next page SAP AG. All rights reserved. 65

76 Unit 2: Profit Center Master Data in New General Ledger Accounting AC Which profit center would currently be determined by the system if a posting was made to cost center T611##? Task 2: The company uses an asset to assemble the pumps in the production process. You want the value of this asset to be visible in Profit Center Accounting (in new G/L). 1. Create the asset for pump assembly in asset accounting. Asset Class Company Code On the General tab, enter the description Pump Assembly Group ##. Then go to the Time-dependent tab and enter the following data. Business Area Cost Center 1000 T611## Write down the order number: 2. Which profit center would currently be determined if a posting was made to the asset? Task 3: You want to use pump R-F1## as a test case in profit center accounting. Production profit center 612## is to be used in the master record of this material. 1. Change the profit center assignment for R-F1## specified in the table. The profit center for the test case is only valid in plant Material Profit Center R-F1## 612## SAP AG. All rights reserved. 2011

77 AC612 Lesson: Profit Center Assignments Solution 3: Profit Center Assignments Task 1: You assign the finished products, semi-finished products, and raw materials of the pumps to the profit centers. You want to include both asset accounting and cost center accounting in your calculations. 1. Create the following cost center in cost center accounting from January 1st of the current fiscal year: Cost Center Name Description Responsible Cost Center Category 4 Hierarchy Area T611## Pump Division Pump Division Cost Center Andy Admin H-AC612 Company Code 1000 Business Area 1000 Profit Center 611## a) Accounting Controlling Cost Center Accounting Master Data Cost Center Individual Processing Create 2. Which profit center would currently be determined by the system if a posting was made to cost center T611##? Answer: When you post to this cost center, the system determines profit center 611##. Task 2: The company uses an asset to assemble the pumps in the production process. You want the value of this asset to be visible in Profit Center Accounting (in new G/L). 1. Create the asset for pump assembly in asset accounting. Asset Class Company Code On the General tab, enter the description Pump Assembly Group ##. Then go to the Time-dependent tab and enter the following data. Continued on next page SAP AG. All rights reserved. 67

78 Unit 2: Profit Center Master Data in New General Ledger Accounting AC612 Business Area Cost Center 1000 T611## Write down the order number: a) Accounting Financial Accounting Fixed Assets Asset Create Asset Choose the Master Data pushbutton. Save the asset. 2. Which profit center would currently be determined if a posting was made to the asset? Answer: Cost center T611## is assigned to the asset in the asset master record. Profit center 611## is entered in the master record for this cost center. The system determines this profit center. Task 3: You want to use pump R-F1## as a test case in profit center accounting. Production profit center 612## is to be used in the master record of this material. 1. Change the profit center assignment for R-F1## specified in the table. The profit center for the test case is only valid in plant Material Profit Center R-F1## 612## a) Logistics Materials Management Material Master Material Change Immediately or Accounting Financial Accounting General Ledger Master Records Profit Center Current Settings. Then choose Assignment: Materials/Master. Enter material R-F## and select Enter. Select either the General Plant Data /Storage 2 view or the Costing 1 view. Select Enter. In the Organizational Levels dialog box enter Plant SAP AG. All rights reserved. 2011

79 AC612 Lesson: Profit Center Assignments Lesson Summary You should now be able to: Assign profit center master data to the account assignment objects in SAP ERP SAP AG. All rights reserved. 69

80 Unit Summary AC612 Unit Summary You should now be able to: Create the standard hierarchy Maintain profit center master data Assign profit center master data to the account assignment objects in SAP ERP SAP AG. All rights reserved. 2011

81 AC612 Test Your Knowledge Test Your Knowledge 1. What options does Profit Center Accounting in the SAP system offer for structuring profit centers? 2. How can you assign a profit center to a sales order item? Choose the correct answer(s). A The profit center for the material is set automatically. B The profit center can be entered manually. C The profit center can be set with a substitution. D The profit center is taken from the customer master record SAP AG. All rights reserved. 71

82 Test Your Knowledge AC612 Answers 1. What options does Profit Center Accounting in the SAP system offer for structuring profit centers? Answer: You can use master data assignments to distinguish between geographical, functional, and product-related profit center divisions. 2. How can you assign a profit center to a sales order item? Answer: A, B, C You cannot enter a profit center in customer master records SAP AG. All rights reserved. 2011

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85 Unit 3 Actual Postings for Profit Center Accounting in New General Ledger Accounting Unit Overview This unit describes the actual value flows in the SAP system, focusing on profit center integration. Profit centers are determined and posted to in Logistics and Financial Accounting. Unit Objectives After completing this unit, you will be able to: Describe the basic concept of the profit center update. Transfer and analyze asset movements to profit center accounting Understand and customize the process for transferring data from Materials Management Understand the secondary cost postings to the assigned profit centers Understand the profit center postings within the sales from stock process. Define a profit center allocation Unit Contents Lesson: Profit Center Update: Overview Lesson: Integration with Asset Accounting Exercise 4: Integration with Financial Accounting Lesson: Data Flow from Materials Management Exercise 5: Data Flow from Materials Management Lesson: Data Flow from Cost Object Controlling Exercise 6: Data Flow from Cost Object Controlling Lesson: Transfer from Sales and Distribution Exercise 7: Transfer from Sales and Distribution Lesson: Allocations in Profit Center Accounting Exercise 8: Optional Exercise: Allocations in Profit Center Accounting SAP AG. All rights reserved. 73

86 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Lesson: Profit Center Update: Overview Lesson Overview This lesson provides a basic overview of the profit center update in the new general ledger. Lesson Objectives After completing this lesson, you will be able to: Describe the basic concept of the profit center update. Business Example You want to find out the basics of the profit center update, to prepare yourself for analyzing and setting up the integrative processes in the next step. Figure 44: Profitability by Area of Responsibility You select the profit center update scenario if you want to model profit center accounting within the framework of the new general ledger. A profit center is a management-oriented organizational unit for which you can calculate separate profits for the period. Dividing a company into profit centers enables you to delegate entrepreneurial responsibility to these decentralized organizational units, as well as steer and control them. You could say that a profit center is a company within a company. The profit center differs from a cost center in that cost centers merely represent the units in which capacity costs arise, whereas the person in SAP AG. All rights reserved. 2011

87 AC612 Lesson: Profit Center Update: Overview charge of the profit center is responsible for its balance of costs and revenues. Profit center accounting lets you calculate the internal operating result for a profit center according to period accounting and/or cost of sales accounting. You can also create financial statement and report financial indicators (such as return on investment, cash flow, sales per employee) for profit centers; in this case, you enhance the profit center to become an investment center. Using profit accounting in the new general ledger has the following benefits: You can use document splitting. Document splitting lets you identify payables and receivables according to their origin at profit center level and - if desired - create financial statements at the profit center level. No reconciliation is needed between the general ledger and profit center accounting. Data from feeder applications (such as logistics) usually already contains the assignment of the object (such as a material or sales order) to a profit center or partner profit center. In some business transactions, the profit center or partner profit center is determined through document splitting for selected document items (such as receivables or payables). If you want to identify receivables and payables according to origin at profit center level, you have to use document splitting. If you want to use the segment reporting scenario with the segment characteristic, you also have to activate the profit center update scenario. You can use period accounting and/or cost of sales accounting in Profit Center Accounting. If you want to use cost of sales accounting, you have to activate the COS accounting scenario and configure the corresponding settings. This also makes it possible for you to analyze a number of financial indicators for profit centers, including return on investment, working capital and cash flow. This means profit center accounting can be used by companies in any industry sector (mechanical engineering, chemicals, service industries, and so on) and with any form of production (repetitive manufacturing, make to order manufacturing, or process manufacturing) SAP AG. All rights reserved. 75

88 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Figure 45: Organizational Units and Master Data The assignments of all profit relevant objects to profit centers play an important role. They determine how your business is divided up into areas of responsibility. You make these assignments in the master data of the original objects (materials, cost centers, orders, projects, sales orders, assets, cost objects, profitability segments). Every profit center is assigned to the controlling area organizational unit. All profit centers of a controlling area are assigned to a profit center standard hierarchy that reflects the organizational structure in profit center accounting at your company. When you make manual G/L account postings in the general ledger, you can specify the profit center or partner profit center. For primary cost elements, the profit center or partner profit center is derived automatically from the cost-relevant account assignment. You cannot enter the profit center manually for receivables, payables, or automatically generated line items. If you use document splitting, the system can supply these items with a profit center. If an allocation in Controlling results in a change of characteristics that are relevant for the general ledger (such as profit center or functional area), this leads to a shift between the affected items in the P&L statement. Therefore, the system has to forward this information to Financial Accounting. Real-time integration enables the immediate transfer of all Controlling documents to Financial Accounting, together with the detail information required for the general ledger. As a result, Financial Accounting and Controlling are always reconciled SAP AG. All rights reserved. 2011

89 AC612 Lesson: Profit Center Update: Overview Figure 46: Classic or New General Ledger Accounting? You want to integrate profit center accounting with the general ledger, not the classic, Controlling-based Profit Center Accounting module in parallel to General Ledger Accounting. Therefore, you activated the profit center update scenario (FIN_PCA) in Customizing under: Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Ledger Assign Scenarios and Customer Fields to Ledgers. It does not make sense to activate classic Profit Center Accounting in parallel to the profit center update scenario, particularly since this would increase the data volume unnecessarily. If you already used classic Profit Center Accounting and now want to use profit center accounting in the new general ledger, you can use the two in parallel for a transition period. We do not recommend this in the long term, however, due to the increased volume and additional reconciliation effort required. (For more information, see SAP Note and the restrictions it describes.) SAP AG. All rights reserved. 77

90 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 If you already use the classic Profit Center Accounting live and plan to migrate from classic to the new general ledger, you should carefully investigate ahead of time whether it makes more sense to continue using the classic Profit Center Accounting or use the new, integrated profit center accounting instead. The following questions should help you make your decision: Is your profit center accounting closer to FI or CO? Consider this: Which department at your company is currently responsible for profit center accounting - Controlling or Financial Accounting? If your Financial Accounting department is already responsible for profit center accounting, then integrating profit center accounting with the new general ledger will probably be very advantageous. What are your company's report requirements for profit centers? Do you report mainly on costs and revenues in profit and loss statements, or do you also report on balance sheet accounts - perhaps even using selected key figures for each profit center? If you also report key figures at the profit center level, you should check whether the document splitting functions in the new general ledger would be beneficial - for example, improving the quality of your data by enabling splitting to profit centers based on origin. When you report on receivables and payables, another advantage of the new general ledger with document splitting is that splitting to profit centers is available immediately, eliminating the need for period-end transfers. In turn, this simplifies the period-end closing. Do you need segment reporting in future? If so, do you want to use the new segment entity for this? In which form do you use secondary cost elements in Controlling? Does your company need flexible reporting of secondary cost elements for profit centers or profit center groups? Do you run regular reconciliations between classic Profit Center Accounting and the new general ledger? If so, how much effort is required? Integration of profit center accounting with the new general ledger eliminates the need for reconciliation. For more information, see SAP Note SAP AG. All rights reserved. 2011

91 AC612 Lesson: Profit Center Update: Overview Lesson Summary You should now be able to: Describe the basic concept of the profit center update SAP AG. All rights reserved. 79

92 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Lesson: Integration with Asset Accounting Lesson Overview You learn how asset movements are modeled in Profit Center Accounting Lesson Objectives After completing this lesson, you will be able to: Transfer and analyze asset movements to profit center accounting Business Example You want to model asset balances and their changes in the profit center financial statements, as well as depreciation in the profit center P&L statement. Figure 47: Asset Accounting and Profit Centers Business integration: Your objective is to model the profit center financial statements, including asset movements. Area 01: Posts balances to the general ledger in real time. Area 20: Posts only the depreciation. The segment and profit center cannot be defined directly in the asset master record. The system normally derives these two objects from a cost center or an order information that is saved in the asset master data. The account assignment types are defined in Customizing for Asset Accounting: Financial Accounting (New) Asset Accounting SAP AG. All rights reserved. 2011

93 AC612 Lesson: Integration with Asset Accounting Integration with the General Ledger Additional Account Assignment Objects Specify Account Assignment Types for Account Assignment Objects. You can only maintain the account assignment types for activated account assignment objects. Figure 48: Asset Movements and Profit Centers Document splitting also works for acquisition postings with multiple assets (and different account assignments). The asset reconciliation accounts (stock adjustment and value adjustment accounts) are already classified internally as asset item categories. The new FI drilldown reports let you create financial statements for a segment or profit center immediately (transaction code FGI0). Therefore, you no longer have to transfer assets to Profit Center Accounting (transaction code 1KEI) to generate the profit center financial statements, in contrast to classic profit center accounting SAP AG. All rights reserved. 81

94 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Figure 49: Depreciation and Profit Centers Program RAPOST2000 posts depreciation items to Asset Accounting in Release 4.7 and later. An interesting question is how and whether the FI entities (such as the segment) are passed on in the depreciation posting documents. About the account assignment types: Depreciation area 20 must have account assignment type "Depreciation Run" if area 20 is the area you want to use to post the cost-accounting values (depreciation/interest) to Controlling. In this case, the "costing-based depreciation" account is defined as a cost element and requires a CO-relevant account assignment for the depreciation posting run. But this account assignment is only selected if the corresponding CO object (such as cost center, order, or WBS element) has depreciation run as its account assignment type. Furthermore, the segment is derived (indirectly) from the CO object in this case. Depreciation area 01 records book depreciation. Even if the depreciation expense account is not defined as a cost element (that is, these values are only posted in FI), the system still demands depreciation run as the account assignment type for area 01. Otherwise there is no way to derive the asset master record, the profit center, and (possibly) the segment from the CO object in the book depreciation document. Only the amount that is posted to an account that is defined as a (primary) cost element is transferred to Controlling but both depreciation amounts appear in the leading ledger. As soon as you activate document splitting, the depreciation documents also have to meet the document splitting criteria, which means the corresponding accounts must be defined as item categories. However, the FI-AA component already performs the split at segment level for depreciation documents SAP AG. All rights reserved. 2011

95 AC612 Lesson: Integration with Asset Accounting Exercise 4: Integration with Financial Accounting Exercise Objectives After completing this exercise, you will be able to: Explain how asset movements and other postings in Financial Accounting are transferred to Profit Center Accounting Business Example You want to model asset balances and their changes in the profit center financial statements, as well as depreciation in the profit center P&L statement. Task 1: You want to transfer balance sheet account postings for assets to Profit Center Accounting. 1. Post the acquisition of the asset in company code 1000 in Asset Accounting under Financial Accounting by executing the acquisition posting with automatic offsetting entry. Field Name Values Existing Asset Assembly Pump ## Posting Amount 100, Document Date Posting Date Current Date Current Date Save the document. 2. Analyze the transferred data in a standard profit center report in Financial Accounting called Profit Center Group: Plan/Actual/Variance (delivered with Enhancement Package 3). Start the report and enter the following data: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 INT Continued on next page SAP AG. All rights reserved. 83

96 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Task 2: Fiscal Year Period from 1 Period to 12 Profit Center Group What do you notice? Current fiscal year GROUP## The consumables costs for assembly in the group's entire pump division are posted to a cost center. Enter this invoice as a debit for the pump cost center, T611##. 1. Enter an incoming invoice in Financial Accounting (transaction code FB60) with the following data: Vendor Invoice date Amount 2200 Tax amount 200 Tax Code T-K500A## Today s date 1I G/L Account D/C Debit Amount in Doc. Curr Cost Center Save the document. T611## 2. Analyze the document in the financial statements and P&L statement of profit center 611##. To do so, use the Profit Center Group: Plan/Actual/Variance report with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year INT Current fiscal year Continued on next page SAP AG. All rights reserved. 2011

97 AC612 Lesson: Integration with Asset Accounting Period from 1 Period to 12 Profit Center Group GROUP## SAP AG. All rights reserved. 85

98 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Solution 4: Integration with Financial Accounting Task 1: You want to transfer balance sheet account postings for assets to Profit Center Accounting. 1. Post the acquisition of the asset in company code 1000 in Asset Accounting under Financial Accounting by executing the acquisition posting with automatic offsetting entry. Field Name Values Existing Asset Assembly Pump ## Posting Amount 100, Document Date Posting Date Save the document. Current Date Current Date a) Accounting Financial Accounting Fixed Assets Posting Acquisition External Acquisition Acquis. w/autom. Offsetting Entry. Enter the data as specified in the exercise and save the document. 2. Analyze the transferred data in a standard profit center report in Financial Accounting called Profit Center Group: Plan/Actual/Variance (delivered with Enhancement Package 3). Start the report and enter the following data: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year Period from 1 INT Period to 12 Profit Center Group Current fiscal year GROUP## Continued on next page SAP AG. All rights reserved. 2011

99 AC612 Lesson: Integration with Asset Accounting Task 2: What do you notice? a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. Start the report as specified in the exercise and examine the financial statements. The asset acquisition appears in the financial statements. The consumables costs for assembly in the group's entire pump division are posted to a cost center. Enter this invoice as a debit for the pump cost center, T611##. 1. Enter an incoming invoice in Financial Accounting (transaction code FB60) with the following data: Vendor Invoice date Amount 2200 Tax amount 200 Tax Code T-K500A## Today s date 1I G/L Account D/C Debit Amount in Doc. Curr Cost Center Save the document. T611## a) Accounting Financial Accounting Accounts Payable Document Entry Invoice Enter the data as specified in the table and save. 2. Analyze the document in the financial statements and P&L statement of profit center 611##. To do so, use the Profit Center Group: Plan/Actual/Variance report with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc INT Continued on next page SAP AG. All rights reserved. 87

100 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Plan Version 0 Fiscal Year Period from 1 Period to 12 Profit Center Group Current fiscal year GROUP## a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. The expense and payables are posted to profit center 611## SAP AG. All rights reserved. 2011

101 AC612 Lesson: Integration with Asset Accounting Lesson Summary You should now be able to: Transfer and analyze asset movements to profit center accounting SAP AG. All rights reserved. 89

102 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Lesson: Data Flow from Materials Management Lesson Overview You transfer postings from Materials Management to Profit Center Accounting. Lesson Objectives After completing this lesson, you will be able to: Understand and customize the process for transferring data from Materials Management Business Example Outline what effects Materials Management/logistics-related processes have in Profit Center Accounting Figure 50: Purchase Order The profit center to which the data should be posted depends on which materials and which CO objects are involved. In the case of a purchase order to warehouse, the profit center is taken from the material master per purchase order item. The profit center that is determined is forwarded to the goods receipt for purchase order SAP AG. All rights reserved. 2011

103 AC612 Lesson: Data Flow from Materials Management Figure 51: Goods Receipt for Purchase Order When you post a purchase order, the system posts the goods usage immediately upon goods receipt if the purchase order has an account assignment. The GR/IR account is the clearing account for goods received and invoices received. This gives you the costs of the material consumption in the corresponding profit centers. The segments are derived from the profit center in the material master for logistics processes as well. The profit center characteristic is saved in the material master in the Costing 1 and (General) Plant Data / Storage 2 tabs. To achieve a zero balance setting, the system creates various clearing lines as a result of document splitting. These clearing lines generally also contain the partner objects of the accounting characteristics. When an FI document that originated in Materials Management is split, the partner information is also included in the expense and material stocks line SAP AG. All rights reserved. 91

104 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Figure 52: Invoice Receipt for Purchase Order When a goods receipt posting is made, the profit center is always determined indirectly via the preceding document. If the amount on the invoice is different from the standard price of the material purchased, price differences arise when you post the invoice receipt. These price differences are assigned to the profit center of the material purchased, provided that it is a non assigned purchase order. If your price difference account is defined as a cost element, the amount is posted to the profit center of the corresponding CO object SAP AG. All rights reserved. 2011

105 AC612 Lesson: Data Flow from Materials Management Exercise 5: Data Flow from Materials Management Exercise Objectives After completing this exercise, you will be able to: Understand how profit centers are determined for purchase orders and the corresponding goods receipts and invoice receipts Business Example You want to model the purchasing process in the profit center financial statements. Purchase orders are posted to the respective CO account assignment objects, provided they are not raw materials orders that increase stock. The head of Financial Accounting is interested in how profit centers are determined for goods receipt postings and invoice receipts for the respective purchase orders, since payables should also be displayed at the profit center level. Task 1: Order raw material R-T0## for the pending production of pump R-F1##. The goods receipt is to increase the stock of the raw material. You also order a monitor (material M-01 in plant 1000) charged to the production cost center (T611##) as a replacement for an obsolete model. 1. Which profit center is assigned to material M-01 in plant 1000? Continued on next page SAP AG. All rights reserved. 93

106 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC Create a purchase order in logistics in purchasing for Materials Management. The vendor is known. Enter the following header data: Field Name Org Data tab Values Vendor 1000 Purchasing Org Purchasing Group 001 Company Code 1000 Enter the following purchase order item: Field Name Values Acc.Assgmnt Cat. Cost Center Material M-01 PO Quantity 1 Net Price 200 Plant 1000 Storage Location 0001 Go to the Account Assignment tab in the item. Enter cost center T611## as the account assignment object. Confirm by pressing Enter and check the entry in the Profit Center field. Which profit center was assigned? 3. Enter another PO item. You want to order a slug that is needed to manufacture the pump. You want the PO to increase the stock of slugs. Therefore, you do not need to enter an account assignment category in the PO item. Field Name Acc.Assgmnt Cat. Material Values No entry R-T0## Continued on next page SAP AG. All rights reserved. 2011

107 AC612 Lesson: Data Flow from Materials Management Field Name Values PO Quantity 100 Net Price 52 Plant 1000 Storage Location 0001 Task 2: Save your purchase order and write down the document number. Enter a goods receipt for the purchase order you just entered. 1. Enter a goods receipt for the purchase order: Enter the PO number and flag both PO items as OK. Use the PO number from the previous step. Check the Account Assignment tab. Which profit center did the system determine? Post the goods receipt and write down the number of the material document. 2. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Current fiscal year Profit Center Group or Profit Center GROUP## or 1010 Analyze the goods receipt postings in the financial statements and P&L statement of the involved profit centers. Continued on next page SAP AG. All rights reserved. 95

108 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Task 3: Enter an MM invoice receipt for the previous purchase order. 1. Enter an incoming invoice in Logistics Invoice Verification. Enter the following basic data: Field Name Invoice Date Posting Date Values Amount 5940 Tax amount 540 Current date Current date Tax Code 1I (Input tax 10%) Enter the purchase order number from the previous task and confirm. Change the tax code to 1I in the item. Enter the amount from the invoice item in the basic data. Save and write down the document number. 2. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Current fiscal year Profit Center Group or Profit Center GROUP## or 1010 Analyze the invoice receipts in the financial statements of the involved profit centers SAP AG. All rights reserved. 2011

109 AC612 Lesson: Data Flow from Materials Management Solution 5: Data Flow from Materials Management Task 1: Order raw material R-T0## for the pending production of pump R-F1##. The goods receipt is to increase the stock of the raw material. You also order a monitor (material M-01 in plant 1000) charged to the production cost center (T611##) as a replacement for an obsolete model. 1. Which profit center is assigned to material M-01 in plant 1000? a) Logistics Materials Management Material Master Material Display Display Current Material M-01 Choose the Select View(s) pushbutton. Choose the Costing 1 view. Enter plant M-01 is assigned profit center Continued on next page SAP AG. All rights reserved. 97

110 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC Create a purchase order in logistics in purchasing for Materials Management. The vendor is known. Enter the following header data: Field Name Org Data tab Values Vendor 1000 Purchasing Org Purchasing Group 001 Company Code 1000 Enter the following purchase order item: Field Name Values Acc.Assgmnt Cat. Cost Center Material M-01 PO Quantity 1 Net Price 200 Plant 1000 Storage Location 0001 Go to the Account Assignment tab in the item. Enter cost center T611## as the account assignment object. Confirm by pressing Enter and check the entry in the Profit Center field. Which profit center was assigned? Answer: Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known Enter the header data for the purchase order. Profit center 611## from the master record of cost center T611## was assigned. 3. Enter another PO item. You want to order a slug that is needed to manufacture the pump. You want the PO to increase the stock of slugs. Therefore, you do not need to enter an account assignment category in the PO item. Field Name Acc.Assgmnt Cat. Material Values No entry R-T0## Continued on next page SAP AG. All rights reserved. 2011

111 AC612 Lesson: Data Flow from Materials Management Field Name Values PO Quantity 100 Net Price 52 Plant 1000 Storage Location 0001 Save your purchase order and write down the document number. a) Task 2: Enter a goods receipt for the purchase order you just entered. 1. Enter a goods receipt for the purchase order: Enter the PO number and flag both PO items as OK. Use the PO number from the previous step. Check the Account Assignment tab. Which profit center did the system determine? Post the goods receipt and write down the number of the material document. Answer: Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order PO Number Known Enter the purchase order number from the previous task and confirm. Select the Account Assignment tab in the Detail Data section. Cost center T611## and profit center 611## are transferred from the purchase order. Choose the Next Item icon, which is located at the bottom left of the screen, to view the Profit center for line 2. Profit center 1010 is derived from the material master for R-T0## Set the indicator for both items to OK. 2. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year INT Current fiscal year Continued on next page SAP AG. All rights reserved. 99

112 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 From Period 1 To Period 12 Profit Center Group or Profit Center GROUP## or 1010 Analyze the goods receipt postings in the financial statements and P&L statement of the involved profit centers. Task 3: a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. The P&L statement for profit center 611# shows the material expense for monitor M-01 (EUR 200 when you select by PC group GROUP##). When you are in the report for profit center 1010, expand Assets Current Assets Stocks Raw Materials and Supplies. The raw materials stock of profit center 1010 shows the stock of the ordered slugs (EUR 5200 when you select by profit center 1010 and select the Raw Materials 1 report line. Select the line and then select Goto Call up report. In the Select Report dialog box, double click G/L Account Line Item Display. Sort the report in descending order by document date. Select the box, in front of the line, for the document whose amount in local currency equals 5,200. Choose the display document icon. Within the document select the Call Up Document Overview icon. The offsetting posting for both items was made to the GR/IR account. The offsetting posting for both items was made to the GR/IR account (offsetting item in the document). Enter an MM invoice receipt for the previous purchase order. 1. Enter an incoming invoice in Logistics Invoice Verification. Enter the following basic data: Field Name Invoice Date Posting Date Values Current date Current date Continued on next page SAP AG. All rights reserved. 2011

113 AC612 Lesson: Data Flow from Materials Management Field Name Values Amount 5940 Tax amount 540 Tax Code 1I (Input tax 10%) Enter the purchase order number from the previous task and confirm. Change the tax code to 1I in the item. Enter the amount from the invoice item in the basic data. Save and write down the document number. a) Logistics Materials Management Logistics Invoice Verification Document Entry Enter Invoice Enter the invoice date, EUR 5,940 as the invoice amount and EUR 540 as the tax amount. Go to the PO Reference tab. Use the PO number from the previous step. Confirm with Enter. In the invoice item, scroll to the right to the Tax Codes column. Change the tax code to 1I. Post the incoming invoice. 2. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Current fiscal year Profit Center Group or Profit Center GROUP## or 1010 Continued on next page SAP AG. All rights reserved. 101

114 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Analyze the invoice receipts in the financial statements of the involved profit centers. a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. The payables are reported in profit centers 611## and The input tax is reported in profit centers 611## and The GR/IR account is cleared as the offsetting posting SAP AG. All rights reserved. 2011

115 AC612 Lesson: Data Flow from Materials Management Lesson Summary You should now be able to: Understand and customize the process for transferring data from Materials Management SAP AG. All rights reserved. 103

116 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Lesson: Data Flow from Cost Object Controlling Lesson Overview You transfer primary and secondary costs postings from Cost Object Controlling to Profit Center Accounting. Lesson Objectives After completing this lesson, you will be able to: Understand the secondary cost postings to the assigned profit centers Business Example Explain how postings in internal accounting are updated in Profit Center Accounting. Figure 53: Secondary Costs Since this case involves general ledger accounting, and not a parallel accounting system like the classic Profit Center Accounting, each document item must contain a general ledger account in the Account field. For this reason, account determination takes place when the documents are transferred from CO the new general ledger within the real-time integration framework. In contrast, in classic Profit Center Accounting, the secondary cost element is updated directly in the Account field. As a result, you can display both secondary cost elements SAP AG. All rights reserved. 2011

117 AC612 Lesson: Data Flow from Cost Object Controlling and P&L/balance sheet accounts in the Account field in a Report Painter report or drilldown report in classic Profit Center Accounting. The new general ledger makes it possible to create a report exclusively using cost elements, as well as display the cost element as additional information in a report. The profit center of the sender account assignment object is credited and the corresponding profit center of the receiver account assignment object is specified as the partner profit center. In addition, the receiver's profit center is charged and the sender's profit center is recorded as the partner profit center. All secondary allocations between CO objects are mapped to the assigned profit centers through real-time integration (for example, utilization of cost center activities for a production order). Figure 54: Cost Object Controlling Goods Issue The above example shows the withdrawal of a material from the warehouse for a production order. The profit center of the production order is determined based on the materials produced. In this example, the material master record for the raw materials belongs to the same profit center as the production order from the perspective of Profit Center Accounting. The raw material stores withdrawal for the production order maps the stock and consumption postings to the same profit center. The profit center and partner profit center are identical in this case SAP AG. All rights reserved. 105

118 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Figure 55: Cost Object Controlling Confirmation / Settlement The above example shows the delivery of the material to make-to-stock inventory. The goods receipt posting credits the production order in the amount of 450. This amount corresponds to the standard price of the produced material. The inventory value in finished goods inventory increases by the same amount. The differences between debit and credit ( = 50) which result on the production order are posted to a price difference account upon settlement of the production order. The settlement process writes off the remaining order balance of 50. This amount corresponds to the variances in the production order between total manufacturing expense and the goods receipt value. This value is posted to a price difference account SAP AG. All rights reserved. 2011

119 AC612 Lesson: Data Flow from Cost Object Controlling Exercise 6: Data Flow from Cost Object Controlling Exercise Objectives After completing this exercise, you will be able to: Report on postings resulting from the production process in FI. Business Example Your company wants to analyze the production costs of the pump in a suitable report in FI. To enable this, the secondary costs from production are to be transferred to FI. Task 1: Create a production order in PP. 1. Create a production order (transaction codeco01) with the following data: Material R-F1## Production Plant 1000 Order Type PP01 Enter the following data in the order: Total Quantity 50 Start Scheduling Type Current date Forwards Choose Functions Release. Go to the Assignment tab and check the profit center assignment. If profit center 612## is assigned, save the order. Task 2: Post the goods issue for the production of pump R-F1##. 1. Enter the goods issue, charged to the production order, with the following data: Continued on next page SAP AG. All rights reserved. 107

120 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Movement Type 261 Plant 1000 Storage Location Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT Period to 12 Profit Center 612## Current fiscal year Analyze the goods issue from production in the P&L statement for profit center 612##. Task 3: Enter the confirmation of the complete order. 1. For test purposes, enter the confirmation for the individual order, not for the individual operations from the routing (transaction codeco15). Enter a quantity of 50 pieces. No scrap or other quantities are generated. Save the confirmation. 2. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc INT Continued on next page SAP AG. All rights reserved. 2011

121 AC612 Lesson: Data Flow from Cost Object Controlling Plan Version 0 Fiscal Year From Period 1 To Period 12 Profit Center 612## Current fiscal year Analyze the posting in the P&L statement for profit center 612## that results from the confirmation. Normally, this involves secondary costs from CO. Why can we see these costs in the new general ledger? Task 4: To perform the period-end closing for the order, determine any variances and settle the order. 1. During the period-end closing in Cost Object Controlling, you determine the variances in the order that correspond to the current balance of the production order. In the settlement, you post the balance as production differences in FI, and therefore at the profit center level. Execute the variance calculation as an update run. Use the current period and deselect the Test Run indicator. Execute settlement as an update run. Use the current period and deselect the Test Run indicator. 2. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center 612## Current fiscal year Analyze the posting in the settlement (production variances) for profit center 612## that results from the confirmation SAP AG. All rights reserved. 109

122 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Solution 6: Data Flow from Cost Object Controlling Task 1: Create a production order in PP. 1. Create a production order (transaction codeco01) with the following data: Material R-F1## Production Plant 1000 Order Type Enter the following data in the order: Total Quantity 50 Start Scheduling Type Choose Functions Release. PP01 Current date Forwards Go to the Assignment tab and check the profit center assignment. If profit center 612## is assigned, save the order. Task 2: a) Logistics Production Shop Floor Control Order Create With Material Enter the data as shown in the table, release the order, and save. Write down the order number. Post the goods issue for the production of pump R-F1##. 1. Enter the goods issue, charged to the production order, with the following data: Continued on next page SAP AG. All rights reserved. 2011

123 AC612 Lesson: Data Flow from Cost Object Controlling Movement Type 261 Plant 1000 Storage Location 0001 a) Logistics Production Shop Floor Control Goods Movements Goods Issue (MB1A). a) Enter the data as shown in the table. b) Select Goods Issue Create with Reference To Order. In the dialog box, the production order number from the previous task. Select Continue. You see the assemblies that comprise the pump, together with the quantities from the production order. c) Save the goods issue. 2. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT Period to 12 Profit Center 612## Current fiscal year Analyze the goods issue from production in the P&L statement for profit center 612##. a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. The consumption of semifinished products is reported in the P&L statement of profit center 612##. Continued on next page SAP AG. All rights reserved. 111

124 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Task 3: Enter the confirmation of the complete order. 1. For test purposes, enter the confirmation for the individual order, not for the individual operations from the routing (transaction codeco15). Enter a quantity of 50 pieces. No scrap or other quantities are generated. Save the confirmation. a) Logistics Production Shop Floor Control Confirmation Enter For Order 2. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center 612## Current fiscal year Analyze the posting in the P&L statement for profit center 612## that results from the confirmation. Normally, this involves secondary costs from CO. Why can we see these costs in the new general ledger? a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. The secondary costs for the confirmation are transferred to the new general ledger through the real-time integration. Continued on next page SAP AG. All rights reserved. 2011

125 AC612 Lesson: Data Flow from Cost Object Controlling Task 4: To perform the period-end closing for the order, determine any variances and settle the order. 1. During the period-end closing in Cost Object Controlling, you determine the variances in the order that correspond to the current balance of the production order. In the settlement, you post the balance as production differences in FI, and therefore at the profit center level. Execute the variance calculation as an update run. Use the current period and deselect the Test Run indicator. Execute settlement as an update run. Use the current period and deselect the Test Run indicator. a) Menu path for variances: Logistics Production Shop-Floor Control Period-End Closing Variances Individual Processing Menu path for settlement: Logistics Production Shop Floor Control Period-End Closing Settlement Individual Processing 2. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center 612## Current fiscal year Analyze the posting in the settlement (production variances) for profit center 612## that results from the confirmation. a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. The variances are reported as plant activity and production differences SAP AG. All rights reserved. 113

126 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Lesson Summary You should now be able to: Understand the secondary cost postings to the assigned profit centers SAP AG. All rights reserved. 2011

127 AC612 Lesson: Transfer from Sales and Distribution Lesson: Transfer from Sales and Distribution Lesson Overview You post the goods issue and billing document in Profit Center Accounting. Lesson Objectives After completing this lesson, you will be able to: Understand the profit center postings within the sales from stock process. Business Example Explain the value flow from Sales and Distribution to the project team. Figure 56: Transfer from Sales and Distribution (1) The assignment of a profit center for a sales order is passed from the sales order to the delivery note and then on to the billing document. The change in stock is posted to the profit center upon goods issue. If account-based Profitability Analysis is active in your system, the G/L account for changes in stock must be defined as a cost element. If account-based CO-PA is not active, you must define this account as a profit and loss account. The profit center is assigned at the item level of the sales order SAP AG. All rights reserved. 115

128 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Figure 57: Transfer from Sales and Distribution (2) The following data is transferred from billing documents, debit and credit memos to Profit Center Accounting: A simplified example of a logistical SD process with the generated profit center postings. Revenues Sales deductions (shipping, rebates, and so on) Accruals (for example, from rebate agreements) SAP AG. All rights reserved. 2011

129 AC612 Lesson: Transfer from Sales and Distribution Exercise 7: Transfer from Sales and Distribution Exercise Objectives After completing this exercise, you will be able to: Create a standard sales order and process the entire order Business Example The pumps you manufacture, R-F1##, are currently in stock. You want to reduce warehouse stocks through the sales process. Task 1: Create a sales order. 1. Enter a sales order with the following parameters: Field Name Order Type Value Sales Organization 1000 Distribution Channel 10 Category 00 Use order type OR if you logged in with language EN. If you logged in with language DE, use order type TA. Sold-to T-CSD## Ship-to Party T-CSD## PO Number PUMP ## Material Order Quantity 30 R-F1## Check the account assignment of this order item in the item details. Which profit center was assigned? Post the document and write down the document number. Continued on next page SAP AG. All rights reserved. 117

130 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Task 2: Create the outbound delivery for the sales order, pick the delivery, and post the goods issue. 1. Create an outbound delivery for the sales order. Use the following parameters: Field Name Value Shipping Point 1000 Selection Date Order Current date + 1 month Sales order number Save the outbound delivery and write down the document number. 2. Create a transfer order to pick the order. Enter the following data. Field Name Value Warehouse Number 010 Delivery Plant 1000 Activate Item Foreground/Backgrnd Document number of delivery Set indicator System-Guided Press Enter and save the transfer order. No entries are necessary, since picking is carried out automatically. 3. Post the goods issue by changing the outbound delivery you created in the previous step. Task 3: Bill the outbound delivery. 1. Enter the outbound delivery number to bill it. Press Enter to display the billing document data. Do not enter anything else. Save the billing document. Continued on next page SAP AG. All rights reserved. 2011

131 AC612 Lesson: Transfer from Sales and Distribution Task 4: Analyze the sales process in a standard profit center report. 1. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center 612## Current fiscal year Analyze the postings to the financial statements and P&L statement for profit center 612## that result from the delivery and billing SAP AG. All rights reserved. 119

132 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Solution 7: Transfer from Sales and Distribution Task 1: Create a sales order. 1. Enter a sales order with the following parameters: Field Name Order Type Value Sales Organization 1000 Distribution Channel 10 Category 00 Use order type OR if you logged in with language EN. If you logged in with language DE, use order type TA. Sold-to T-CSD## Ship-to Party T-CSD## PO Number PUMP ## Material Order Quantity 30 R-F1## Check the account assignment of this order item in the item details. Which profit center was assigned? Post the document and write down the document number. a) Logistics Sales and Distribution Sales Order Create Enter the data from the above table. Double click on line item 10. Select the Account Assignment tab to see the profit center. Profit center 612## was automatically determined by the system because it is entered in the master record of material R-F1##. Continued on next page SAP AG. All rights reserved. 2011

133 AC612 Lesson: Transfer from Sales and Distribution Task 2: Create the outbound delivery for the sales order, pick the delivery, and post the goods issue. 1. Create an outbound delivery for the sales order. Use the following parameters: Field Name Value Shipping Point 1000 Selection Date Order Current date + 1 month Sales order number Save the outbound delivery and write down the document number. a) Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Single Document With Reference to Sales Order (transaction code VL01N) 2. Create a transfer order to pick the order. Enter the following data. Field Name Value Warehouse Number 010 Delivery Plant 1000 Activate Item Foreground/Backgrnd Document number of delivery Set indicator System-Guided Press Enter and save the transfer order. No entries are necessary, since picking is carried out automatically. a) Logistics Sales and Distribution Shipping and Transportation Picking Create Transfer Order Single Document 3. Post the goods issue by changing the outbound delivery you created in the previous step. a) Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document Choose the Post Goods Issue pushbutton. Continued on next page SAP AG. All rights reserved. 121

134 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Task 3: Bill the outbound delivery. 1. Enter the outbound delivery number to bill it. Press Enter to display the billing document data. Do not enter anything else. Save the billing document. Task 4: a) Logistics Sales and Distribution Billing Billing Document Create Analyze the sales process in a standard profit center report. 1. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center 612## Current fiscal year Analyze the postings to the financial statements and P&L statement for profit center 612## that result from the delivery and billing. a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. The goods issue associated with the outbound delivery reduced stocks. The manufacturing costs of the sales (stock change) were posted. Domestic receivables and sales revenues were posted to during billing SAP AG. All rights reserved. 2011

135 AC612 Lesson: Transfer from Sales and Distribution Lesson Summary You should now be able to: Understand the profit center postings within the sales from stock process SAP AG. All rights reserved. 123

136 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Lesson: Allocations in Profit Center Accounting Lesson Overview Learn about the use of allocations in Profit Center Accounting Lesson Objectives After completing this lesson, you will be able to: Define a profit center allocation Business Example You are preparing a project meeting regarding allocations for profit centers. Statistical Key Figures Figure 58: Statistical Key Figures in the New General Ledger SAP AG. All rights reserved. 2011

137 AC612 Lesson: Allocations in Profit Center Accounting You use the IMG activity Financial Accounting (New) General Ledger Accounting (New) Statistical Key Figures Transfer Opening Balance from CO to transfer the data from Overhead Cost Controlling (CO-IM) that were recorded based on the statistical key figures. A transfer can be needed for the following reasons: The dataset in CO-OM is an opening balance. You want to rebuild the dataset in general ledger accounting. You have created a new ledger in general ledger accounting and want to rebuild the statistical key figures in general ledger accounting as a result. When you transfer the statistical key figures from CO (either online or with this program), only those characteristics that are managed as a scenario in at least one ledger in G/L accounting are updated. This means if you only have ledgers that use cost-of-sales accounting, business area, and profit center update scenarios, the segment characteristic is not updated. If you want to create a new ledger with the profit center update scenario, you do not have to do anything. The data can be used by this new ledger automatically. If the ledger contains the segment reporting scenario, however, you have to rebuild the data because the segment has not been updated to date. You can transfer both actual and planning data for each controlling area, fiscal year, and object type (such as cost center). You can use transaction FAGLSKF to enter actual values for statistical key figures directly in Financial Accounting. However, we recommend transferring the values for the statistical key figures from Controlling first and then adjusting them in Financial Accounting. You can enter plan values for statistical key figures directly in Financial Accounting with transaction FAGLSKF1. The transactions are located under the following menu path in the application: Accounting Financial Accounting General Ledger Statistical Key Figures A period evaluation is also available. You can use statistical key figures as the allocation base in the new general ledger SAP AG. All rights reserved. 125

138 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Allocation Figure 59: Distribution/Assessment Allocation (assessment and distribution) of overhead costs is usually performed at period closing. Allocation is normally performed directly at cost center level; the postings are transferred to the profit centers in the new general ledger through real-time integration. If postings were made to the dummy or default profit centers, you allocate them to the production profit centers as assessments during the period-end closing. The system uses an assessment account to consolidate the individual accounts in the sender profit center for assessment. This means the head of the receiver profit center now only sees the assessment account, and no longer the individual accounts that were posted to the default profit center. In many cases, you have to allocate certain balance sheet items (raw materials, real estate, and so on), which you initially posted to a single profit center, to several receiver profit centers. We recommend using distribution, as it allocates specifically to the cost element. This means a material stock account remains with the receiver. Assessing or distributing data in Profit Center Accounting only makes sense after you have completed all the period closing activities in all the feeder applications (FI, CO, SD, MM, and so on). You should also post any additional profit center data - such as PCA Statistical Key Figures - manually or transfer it from Controlling before allocating SAP AG. All rights reserved. 2011

139 AC612 Lesson: Allocations in Profit Center Accounting Caution: Profit center distribution and assessment in new General Ledger Accounting work the same way as in Overhead Management, but affect FI postings only. Hint: The (actual) allocations from the different components in the SAP system with active new General Ledger Accounting are integrated with FI, as described: Actual allocations in Overhead Cost Controlling: Profit center changes are also updated in new G/L if real-time CO FI integration is active. Actual allocations from classic Profit Center Accounting (EC-PCA): No update in FI a strict EC-PCA document is generated. Actual allocations in new G/L: No integration with other components a strict FI document is generated Figure 60: Create Distribution/Assessment SAP AG. All rights reserved. 127

140 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 The cycle segment method described here defines both distributions and assessments. Periodic reposting is not used in the new general ledger. To display the allocation relationships between the senders and receivers in the system, you need to make the following entries for each (allocation) segment: Sender values: Which costs do you want to assess and from which objects will the costs be assessed? Sender values can be posted values, fixed amounts, or fixed prices. If you use posted amounts, you can work with plan and actual values. You can specify a percentage under 100%, which leaves a corresponding amount on the sending profit center. Receiver values: To which objects are the costs allocated? On the receiver side, you can store fixed amounts, fixed percentages, fixed portions, and variable portions as rules. Tracing factor: On what basis are the costs split among the receivers? The tracing factor of the variable portion identifies a posted value on the profit center as an allocation base (statistical key figures, for example). In an (allocation) segment, sender profit centers are combined with receiver profit centers according to the allocation relationships described above. Multiple segments are combined in a cycle. A cycle must always be assigned to a version - use version 1 in FI. Figure 61: Distribution The distribution is used to distribute values from one profit center to another profit center. The allocation in FI does not change the debit to the Energy cost center at all. The values arrive in the receiving profit centers with the same account (which SAP AG. All rights reserved. 2011

141 AC612 Lesson: Allocations in Profit Center Accounting is usually, but not necessarily, also defined as a cost element in CO) in which they were originally posted on the sender profit center - processing uses the original account. In our example, the accounts are and Hint: The distribution only creates an FI document. The FI document number is displayed in the basic list of the allocation. You can reverse distributions as often as required. You use the Cycle-Segment method to define sender-receiver relationships. Practical example: Distribution is used, for example, to distribute material stocks to different profit centers. This is necessary, for example, when several profit centers at a plant are responsible for a material. Since only one profit center can be defined in the material master, you allocate the stock values (using the stock account) from the defined profit center to the others. Figure 62: Assessment You want an individual assessment account to be defined in each case for the assessment in the new general ledger. This is account in the example on the slide. Hint: The assessment account must not correspond to any secondary cost element in CO - this means that you cannot simply use the assessment cost elements (cost element type 42) from CO SAP AG. All rights reserved. 129

142 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 The receiving objects do not display the account with which the original invoices were entered. You use the assessment when the original accounts cannot or must not be identified on the receiver side. In practice, assessment is often used to clear a dummy profit center. Distribution creates a financial accounting document, which is output in the basic list. You can reverse and repeat assessments as often as required. You use the Cycle-Segment method to define sender-receiver relationships SAP AG. All rights reserved. 2011

143 AC612 Lesson: Allocations in Profit Center Accounting Exercise 8: Optional Exercise: Allocations in Profit Center Accounting Exercise Objectives After completing this exercise, you will be able to: Create an assessment cycle in the new general ledger that allocates at the profit center level. Business Example The costs of the administration profit center, 611##, should be visible on profit center 612## with a separate assessment account after assessment. Task 1: Define an assessment account, 4990##, for profit centers. Use account as a template. 1. Enter the central assessment account 4990## and company code Select the Create with Template button. Enter account and company code Use account with the data from company code 1000 as a copy template. Name the account Allocation PC ## (short text) and Allocation Profit Center ## (G/L account long text). Go to the Control Data tab and delete the Alternative Account Number. Go to the Key Word/Translation tab and name the account Umlage PC ## (short text) and Umlage Profitcenter ## (G/L account long text) in German. Assign financial statement version INT to the new account. Select the Edit financial statement version button. Enter INT in the financial statement version field. Select Choose. Expand Item Nodes Put your cursor on and choose Assign Accounts button. In the dialog box, select the Next Page icon to scroll to an available line. Enter account 4990## and then Continue. Select Save then Exit. Task 2: You want to define an assessment in new G/L to allocate the administration costs to the pump division's profit center. 1. Create an assessment in the new general ledger. Use the following parameters: Continued on next page SAP AG. All rights reserved. 131

144 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Field Name Ledger Cycle Name Start Date Value 0L ADMIN## 01/01 current fiscal year Select Enter Enter the following data in the header data of the cycle: Field Name Text Value Company Code 1000 Version: 1 Administrative Costs Pumps ## Select the Attach segment button to add a segment named ADMIN## (administrative costs, pump division) and enter the following segment data. Enter the following values in the Segment Header tab. Assessment Account 4990## Sender Rule Share in % 100% Actual value origin Receiver rule Posted Amount Activate Fixed percentages Go to the Senders/Receivers tab and enter the following data. Account Number Set Sender Profit Center 611## Receiver Profit Center 612## ALLOC## (You will create this set. See directions below). Hint: If account intervals and single values are not sufficient to define the sender values, you can enter the name of a set in the Set column and choose Extras/Create Set to create a new one. You have Continued on next page SAP AG. All rights reserved. 2011

145 AC612 Lesson: Allocations in Profit Center Accounting been asked to group the master data together. You define the relevant accounts within the intervals and to allocate the P&L statement. Position the cursor on ALLOC## and choose Extras/Create Set. Enter the following values. Field for set name P&L-relevant accounts Fields for 1st interval Fields for 2nd interval Save the set and exit transaction GS01. Go to the Receiver Tracing Factor tab and enter 100%. Now create a cycle run group called GR## (parallel assessments) and assign it to the cycle. To do this, select Goto Cycle Run Group. In the Create Cycle Run Group dialog box, select the Create group icon (white piece of paper). Enter the cycle run group name and description. Select Confirm, twice. Task 3: Save the cycle and exit. Run the actual assessment cycle in the current period. 1. Start cycle ADMIN## in ledger 0L in the current period of the current fiscal year and analyze the log. Use document type SA. Task 4: Analyze the effects of the assessment in reporting. 1. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 1 Fiscal Year INT Current fiscal year Continued on next page SAP AG. All rights reserved. 133

146 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 From Period 1 To Period 12 Profit Center 612## Analyze the values posted to the P&L statement from profit centers 611## and 612## as a result of the assessment SAP AG. All rights reserved. 2011

147 AC612 Lesson: Allocations in Profit Center Accounting Solution 8: Optional Exercise: Allocations in Profit Center Accounting Task 1: Define an assessment account, 4990##, for profit centers. Use account as a template. 1. Enter the central assessment account 4990## and company code Select the Create with Template button. Enter account and company code Use account with the data from company code 1000 as a copy template. Name the account Allocation PC ## (short text) and Allocation Profit Center ## (G/L account long text). Go to the Control Data tab and delete the Alternative Account Number. Go to the Key Word/Translation tab and name the account Umlage PC ## (short text) and Umlage Profitcenter ## (G/L account long text) in German. Assign financial statement version INT to the new account. Select the Edit financial statement version button. Enter INT in the financial statement version field. Select Choose. Expand Item Nodes Put your cursor on and choose Assign Accounts button. In the dialog box, select the Next Page icon to scroll to an available line. Enter account 4990## and then Continue. Select Save then Exit. Task 2: a) Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally You want to define an assessment in new G/L to allocate the administration costs to the pump division's profit center. 1. Create an assessment in the new general ledger. Use the following parameters: Field Name Ledger Cycle Name Start Date Value 0L ADMIN## 01/01 current fiscal year Select Enter Continued on next page SAP AG. All rights reserved. 135

148 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 Enter the following data in the header data of the cycle: Field Name Text Value Company Code 1000 Version: 1 Administrative Costs Pumps ## Select the Attach segment button to add a segment named ADMIN## (administrative costs, pump division) and enter the following segment data. Enter the following values in the Segment Header tab. Assessment Account 4990## Sender Rule Share in % 100% Actual value origin Receiver rule Posted Amount Activate Fixed percentages Go to the Senders/Receivers tab and enter the following data. Account Number Set Sender Profit Center 611## Receiver Profit Center 612## ALLOC## (You will create this set. See directions below). Hint: If account intervals and single values are not sufficient to define the sender values, you can enter the name of a set in the Set column and choose Extras/Create Set to create a new one. You have been asked to group the master data together. You define the relevant accounts within the intervals and to allocate the P&L statement. Position the cursor on ALLOC## and choose Extras/Create Set. Enter the following values. Continued on next page SAP AG. All rights reserved. 2011

149 AC612 Lesson: Allocations in Profit Center Accounting Field for set name P&L-relevant accounts Fields for 1st interval Fields for 2nd interval Save the set and exit transaction GS01. Go to the Receiver Tracing Factor tab and enter 100%. Now create a cycle run group called GR## (parallel assessments) and assign it to the cycle. To do this, select Goto Cycle Run Group. In the Create Cycle Run Group dialog box, select the Create group icon (white piece of paper). Enter the cycle run group name and description. Select Confirm, twice. Task 3: Save the cycle and exit. a) Accounting Financial Accounting General Ledger Periodic Processing Closing Allocation Actual Assessment Create Run the actual assessment cycle in the current period. 1. Start cycle ADMIN## in ledger 0L in the current period of the current fiscal year and analyze the log. Use document type SA. Task 4: a) Accounting Financial Accounting General Ledger Periodic Processing Closing Allocation Actual Assessment Execute Analyze the effects of the assessment in reporting. 1. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 1 Fiscal Year INT Current fiscal year Continued on next page SAP AG. All rights reserved. 137

150 Unit 3: Actual Postings for Profit Center Accounting in New General Ledger Accounting AC612 From Period 1 To Period 12 Profit Center 612## Analyze the values posted to the P&L statement from profit centers 611## and 612## as a result of the assessment. a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. The costs are posted under the assessment account SAP AG. All rights reserved. 2011

151 AC612 Lesson: Allocations in Profit Center Accounting Lesson Summary You should now be able to: Define a profit center allocation SAP AG. All rights reserved. 139

152 Unit Summary AC612 Unit Summary You should now be able to: Describe the basic concept of the profit center update. Transfer and analyze asset movements to profit center accounting Understand and customize the process for transferring data from Materials Management Understand the secondary cost postings to the assigned profit centers Understand the profit center postings within the sales from stock process. Define a profit center allocation SAP AG. All rights reserved. 2011

153 AC612 Test Your Knowledge Test Your Knowledge 1. Material stocks are transferred to Profit Center Accounting at plant level. Determine whether this statement is true or false. True False 2. By default, the profit center assignment for cost objects is made on a sales-related basis. Determine whether this statement is true or false. True False 3. Statistically, costs and revenues are posted to the profit center of the sales order item when the sales order is received. Determine whether this statement is true or false. True False 4. Allocations within profit centers are reflected in the assigned cost center (parallel accounting system). Determine whether this statement is true or false. True False SAP AG. All rights reserved. 141

154 Test Your Knowledge AC612 Answers 1. Material stocks are transferred to Profit Center Accounting at plant level. Answer: True The profit center is assigned to the material at plant level. 2. By default, the profit center assignment for cost objects is made on a sales-related basis. Answer: False The profit center assignment is made on a product-related basis. By default, the production order contains the profit center of the production material. 3. Statistically, costs and revenues are posted to the profit center of the sales order item when the sales order is received. Answer: False Costs are posted when the goods issue for the delivery is made, and revenues are posted when the billing document is issued. 4. Allocations within profit centers are reflected in the assigned cost center (parallel accounting system). Answer: False Profit center allocations do not generate cost center postings SAP AG. All rights reserved. 2011

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157 Unit 4 Profit Center Reorganization Unit Overview This unit explains the reorganization of profit centers. The single point of entry for defining, triggering, monitoring and reporting a reorganization of profit centers is described in detail. Unit Objectives After completing this unit, you will be able to: Explain the meaning and the content of a reorganization of profit centers Understand the way a reorganization of profit centers works Unit Contents Lesson: Profit Center Reorganization SAP AG. All rights reserved. 143

158 Unit 4: Profit Center Reorganization AC612 Lesson: Profit Center Reorganization Lesson Overview This lesson helps you to understand the concept and the process of a reorganization of profit centers. A profit center reorganization is the single point of entry for defining, triggering, monitoring, and reporting the change of a profit center assignment to other SAP objects. Lesson Objectives After completing this lesson, you will be able to: Explain the meaning and the content of a reorganization of profit centers Understand the way a reorganization of profit centers works Business Example It is important to be able to break down a management decision for a reorganization aim into a well defined reorganization plan. This involves an aligning of all related parties, identifying their special responsibilities, initiating, and monitoring of all necessary activities. At the end the reorganization of profit centers also provides a database for audit trail. Profit Center Reorganization Figure 63: Change of a Profit Center in an other SAP Object (1) SAP AG. All rights reserved. 2011

159 AC612 Lesson: Profit Center Reorganization The long text of the message, displayed without activated business function FIN_GL_REORG_1 looks like that: Changing profit center from 1402 to 1000 is not permitted (Message no. FAGL_ORG_UNITS011) Diagnosis: You want to change the profit center from 1402 to However, this is not permitted because transaction data already exists for the account assignment object. Changing the profit center in this instance can lead to inconsistencies in FI. Example: There are costs on a cost center to which profit center A is assigned. If the profit center in the cost center master record is now changed to B and the costs then distributed to other cost centers, the currently assigned profit center - that is, profit center B - would be credited. Profit center A, however, would still have a debit posting. System Response: The action is terminated. Hint: The error message can be changed in Customizing, for example to a warning message, and a change is possible but there is no automatic correction posting. Note: If new G/L is not activated or if you do not use new G/L scenario FIN_PCA (Profit Center Update) the change of the profit center in the cost center master record is possible see also SAP notes and Figure 64: Change of a Profit Center in an other SAP Object (2) SAP AG. All rights reserved. 145

160 Unit 4: Profit Center Reorganization AC612 The business functions can be displayed and activated in transaction code SFW5. The description of business function FIN_GL_REORG_1 is FI-GL (New), Profit Center Reorganization and Segment Reports. Hint: Business function FIN_GL_REORG_1 is available with Enhancement Package (EHP) 5. Figure 65: Starting Point SAP AG. All rights reserved. 2011

161 AC612 Lesson: Profit Center Reorganization General Aspects of Profit Center Reorganization: Profit Center Reorganization considers only new General Ledger Accounting: Not classic G/L, Not classic Profit Center Accounting (EC-PCA), Not special purpose ledgers (FI-SL). In new G/L the Profit Center Update scenario (FIN_PCA) needs to be assigned to a ledger. Reorganization postings are performed cumulative on general ledger level. Exception: Only in Asset Accounting the reorganization postings of profit centers are posted on the level of a single asset. Hint: Definition of a profit center: An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control. With the new General Ledger Accounting the management reporting entity profit center is included in the totals table of FI (FAGLFLEXT) and can be a characteristic on which to report balance sheets. Figure 66: SAP Object Types * As the above figure displays, it is not enough to change the profit center hierarchy. A profit center reorganization typically affects various SAP object types, as the profit center can be assigned to many of them. The combination, composition, and dependences of all the SAP object types in the context of the SAP AG. All rights reserved. 147

162 Unit 4: Profit Center Reorganization AC612 reorganization of profit centers is summarized in the derivation hierarchy. The assignment of the profit center in all objects of the derivation hierarchy has to be changed. Hint: The functionality Profit Center Reorganization enables and assists you in the execution of those changes. Figure 67: Derivation Hierarchy The derivation hierarchy is an overview of all SAP object types that can be involved in a profit center reorganization. It contains objects, which carry a profit center directly in the master data: See the top line of the hierarchy. It also contains objects for which the profit center is derived: See the levels below the top line. Objects of object types of the top line are referred to as 1st level objects. Caution: The displayed derivation hierarchy explains the standard ways to derive profit centers in the SAP system. The derivation can also work in other ways in an SAP customer system. SAP definition of the derivation hierarchy: A hierarchy of object types that need to be reorganized entirely. This hierarchy shows the dependencies of these object types in terms of their content: It describes how the profit center is determined when an object of an object type is created SAP AG. All rights reserved. 2011

163 AC612 Lesson: Profit Center Reorganization Based on the object types, transactions in General Ledger Accounting are posted to the profit centers that need to be corrected by the reorganization. Note: Object types in the top line of the hierarchy: Material/Plant Payable -> Invoice (AR) Receivable -> Invoice (AP) Network Network Activity Cost Object Production Order Process Order Product Cost Collector Accrual Calculation Order QM Order Maintenance Order Internal Order Cost Center WBS Element Sales Order Fixed Asset SAP AG. All rights reserved. 149

164 Unit 4: Profit Center Reorganization AC612 Figure 68: Reorganization - Possibilities Hint: A complete close out of a profit center is not supported: You must verify by organizational means that old profit centers are not posted anymore. A process model for expiring profit centers has to be established to cover these cases. Note: Another way to split a profit center is to divide profit center A, into two: Profit center A and B. Before SAP ERP 6.0 EHP5: There are limitations in organizational flexibility for management reporting: Changes in profit center structure cannot be thoroughly reflected by change of profit center assignments in relevant objects from a certain key date. Management reporting entities are included in general ledger. This, for example, includes restrictions regarding rebuilding of ledgers based on changed settings. Since SAP ERP 6.0 EHP5: There is more flexibility in the area of management reporting. There is now a provision of functionality for Profit Center Reorganization: Business function FIN_GL_REORG_1 (FI-GL (New), Profit Center Reorganization and Segment Reports) SAP AG. All rights reserved. 2011

165 AC612 Lesson: Profit Center Reorganization Business challenges: Break down a management decision for a reorganization aim into a well defined reorganization plan. Align all related parties, identify their specific responsibilities, initiate, and monitor all necessary activities. Maintain consistency during organizational changes. Continuation of processes across changed organizational assignments. Provide a database for audit trail. Business Value: Single point of entry for defining, triggering, monitoring, and reporting on a reorganization plan. Defined timeline and responsibilities: The Reorganization Manager and Object List Owner role. Transparency of profit center derivation in ERP. Consistency in balance sheet reporting. Audit trail. Figure 69: Simplified System Example SAP AG. All rights reserved. 151

166 Unit 4: Profit Center Reorganization AC612 Currently out of scope of the reorganization of profit centers, are: Reposting of P/L accounts Reposting of balance sheet accounts without open item management, except balance sheet accounts for fixed assets and material management accounts. Open items of receivables and payables are reposted in case document splitting is activated. G/L accounts with open item management, except the GR/IR account in case the document split is activated Restatement (historical reporting under the new entity assignment) Commitments Real Estate objects Accrual objects of the accrual engine Contract Accounting (FI-CA, profit center for receivables) Plan data (planning integration, manual entries) Sales documents with revenue recognition ALE scenarios. Note: Supplier Relationship Management (SRM) orders and Customer Relationship Management (CRM) contracts are not subject to reorganization since they do not carry the profit center. HR does not carry the profit center as well. Figure 70: Framework for Simplified System Example SAP AG. All rights reserved. 2011

167 AC612 Lesson: Profit Center Reorganization * Further recommended posting. That makes things easier to understand: Asset acquisition to an asset with cost center DFI65 and internal order Use same asset class, company code, posting dates, and vendor. Figure 71: Assumptions A cost center is just one of several SAP object types to which a profit center can be assigned. Hint: In the course, we start with the cost center object type because a change of the profit center has to be performed manually by creating a new time slice. In comparison, objects of other object types, affected by a profit center reorganization are selected automatically by the system. The reassignment is also completed with a program. Caution: It is not mandatory to start with the cost center object type in a reorganization of profit centers. Note: As shown in the above screenshot, the profit center reorganization processes are delivered via Web Dynpro-based applications SAP AG. All rights reserved. 153

168 Unit 4: Profit Center Reorganization AC612 Figure 72: User Interface for Reorganization of Profit Centers SAP NetWeaver Business Client (NWBC) is an SAP User Interface (UI) which offers a unified environment to work with classic SAP GUI-based transactions and newer Web Dynpro-based applications. NWBC improves user experience. In 2010, SAP released Version 3.0 of NWBC. Standard roles: SAP_FI_GL_REORG_MANAGER: Reorganization Manager (FI-GL (New)) SAP_FI_GL_REORG_OBJLIST_OWNER: Object Owner for the Reorganization (FI-GL (New)) The roles can be displayed in transaction code PFCG. Hint: The assignment of the roles gives the user the permission to execute all required reorganization steps. No new authorization objects are needed SAP AG. All rights reserved. 2011

169 AC612 Lesson: Profit Center Reorganization Figure 73: NetWeaver Business Client (NWBC) The NWBC exists in two variants: NWBC for Desktop, is a rich desktop client, which can be downloaded and then installed from the SAP Support Portal ( -> Login on SAP Support Portal). NWBC for HTML, which can be started via a URL, which means that no client installed is required. Or, since EHP5, you can enter transaction code NWBC from the SAP ERP system SAP AG. All rights reserved. 155

170 Unit 4: Profit Center Reorganization AC612 Figure 74: Role Model The SAP PFCG-roles which reflect the underlying role model are: Reorganization Manager/Central Controller: SAP_FI_GL_REORG_MAN- AGER Object Owner/plant manager or sales manager or cost accountant: SAP_FI_GL_REORG_OBJLIST_OWNER SAP AG. All rights reserved. 2011

171 AC612 Lesson: Profit Center Reorganization Figure 75: Create Reorganization Plan (1) By assuming that the actual date is January, the first possible reorganization date is the first of February, as the company code works with fiscal year variant K4. Variant K4 indicates that the posting periods match the months of the calendar year. Of course a reorganization date further into the future is also possible. If, according to your fiscal year variant, the periods do not match the months of the calendar year, the first day of a period can also be the 15th of the month for example. You cannot use special periods. Caution: Only one reorganization plan per controlling area can be active SAP AG. All rights reserved. 157

172 Unit 4: Profit Center Reorganization AC612 Figure 76: Create Reorganization Plan (2) You are able to maintain the message control with transaction code OBA5. Or choose in Customizing, for example, Financial Accounting (New) Financial Accounting Global Settings (New) Tools Change Message Control. Figure 77: Create Reorganization Plan (3) SAP AG. All rights reserved. 2011

173 AC612 Lesson: Profit Center Reorganization Definition of the Derivation Hierarchy: Hierarchy of object types that need to be reorganized entirely. This hierarchy shows the dependencies of these object types in terms of their content: It describes how the profit center is determined when an object of an object type is created. Based on the object types, transactions in General Ledger Accounting are posted to the profit centers that need to be corrected by the reorganization. The composition and activation of own derivation hierarchies is possible in Customizing: SAP Customizing Implementation Guide Financial Accounting (New) General Ledger Accounting (New) Reorganization Basic Settings Remove Object Types from Derivation Hierarchy. It is also possible to add object types to own hierarchy versions: SAP Customizing Implementation Guide Financial Accounting (New) General Ledger Accounting (New) Reorganization Basic Settings Settings for Experts Define Own Version of Derivation Hierarchy. Note: SAP delivers hierarchy version 001 with more or less all available objects. This version cannot be changed. Hint: To work with customer defined hierarchy versions makes sense as the system performance will be better, the less SAP objects have to be considered. Of course you have to collect all SAP objects you are using. Figure 78: Create Reorganization Plan (4) SAP AG. All rights reserved. 159

174 Unit 4: Profit Center Reorganization AC612 Mandatory Requirements: The old and the new profit centers have to belong to the same controlling area. The new and the old profit center also needs to be valid in the same company code. Customize further restrictions: SAP Customizing Implementation Guide Financial Accounting (New) General Ledger Accounting (New) Reorganization Basic Settings Restriction Characteristics Specify Restriction Characteristics for Reorganization Plan Type. Note: After saving, all object types of the derivation hierarchy can be seen in the Object Lists tab (third tab). But of course no objects are assigned yet. Figure 79: Phase Model: Phase A * Be aware that generating the object list is a repetitive task, because during the time new objects might be created which have to be integrated into the reorganization subsequently. Thus the list can be changing due to the effect that it has been regenerated. ** Assign new profit centers to Controlling objects and release objects for further processing: For example, if an internal order is included in an object list but not yet assigned to a new profit center and not yet released for further processing, postings concerning this internal order in the reorganization period will not be performed SAP AG. All rights reserved. 2011

175 AC612 Lesson: Profit Center Reorganization Postings in the prior period can be performed. Note: The reorganization ensures that CO-relevant postings in the reorganization period receive the new profit center. Figure 80: Change Cost Center Create a new analysis period for cost centers: In transaction code KS02 select from the menu Edit Analysis Period -> Choose Other analysis period. Caution: If within course AC612 no posting to the cost center DFI65 was made, the CO periods need not to be closed in transaction OKP1 as the cost center is not debited SAP AG. All rights reserved. 161

176 Unit 4: Profit Center Reorganization AC612 Figure 81: Edit Reorganization Plan The changed cost center appears (without generating object lists) in the reorganization plan. Hint: Since the cost center object type offers the possibility to maintain time slices, it is differently treated than other CO objects SAP AG. All rights reserved. 2011

177 AC612 Lesson: Profit Center Reorganization Figure 82: Generate Object Lists (1) * Typical first level objects are internal orders, materials, WBS elements, and sales documents. Typical second level objects are fixed assets, receivables, and payables. Hint: The same object can be first and second level object, depending on the way the SAP customer uses them. For example, if an SAP customer posts a customer invoice with transaction FB70 and assigns a profit center manually, the receivables are first level objects. If the same customer also works with Sales Distribution (SD) and creates billing documents for sales orders, the receivables are second level objects as the profit center of the receivables is derived from the sales order. Note: The object lists can be generated as often as required to include all relevant objects. Once generated, the object list is not automatically updated when new objects are created. Run the generation again to update the object list SAP AG. All rights reserved. 163

178 Unit 4: Profit Center Reorganization AC612 Figure 83: Generate Object Lists (2) In the above example, no material and no sales document, and so on, carry the old profit center DF165_1. No objects are selected. Only the three internal orders are listed. When the objects are not yet fully processed, this is indicated with the yellow icon SAP AG. All rights reserved. 2011

179 AC612 Lesson: Profit Center Reorganization Figure 84: Derivation Hierarchy and Object Types of the System Example First level objects are shown in the top line of the hierarchy: Material/Plant Payable -> Invoice (AR) Receivable -> Invoice (AP) Network Network Activity Cost Object Production Order Process Order Product Cost Collector Accrual Calculation Order QM Order Maintenance Order Internal Order Cost Center WBS Element Sales Order Fixed Asset SAP AG. All rights reserved. 165

180 Unit 4: Profit Center Reorganization AC612 Based on the first level objects many second level objects exist. First Example: Create a purchase order for an asset in which the profit center is derived from a cost center. The purchase order and the asset are second level objects as they both carry the profit center of the cost center. Second Example: Post a goods receipt for a purchase order of material. The GR/IR account and the purchase order are second level objects as they carry the profit center of the material. To display the objects of the figure, choose SAP Customizing Implementation Guide Financial Accounting (New) General Ledger Accounting (New) Reorganization Basic Settings Remove Object Types from Derivation Hierarchy and display hierarchy version 001. Figure 85: Assign Responsible Person The object owner is selected based on the User Responsible field in the old profit center master. A BAdI (FAGL_R_GENERATE) is available that allows you to change the logic to select, for example, based on the project manager or the responsible user in the cost center master data. The change of the object owner can be performed for several objects in one step: Mark the orders of one object owner Click Change Owner SAP AG. All rights reserved. 2011

181 AC612 Lesson: Profit Center Reorganization Figure 86: Assign Responsible Person and Set Status The change of the object owner can be performed for several objects in one step: Mark the orders of one object owner Click Change Owner. The change of the status can also be performed for several objects in one step. Figure 87: Edit Worklist SAP AG. All rights reserved. 167

182 Unit 4: Profit Center Reorganization AC612 In the displayed screenshot, the user has also been assigned the SAP_FI_GL_REORG_MANGER role. This allows you to see both roles: The Overview: Object List and the Overview: Reorganization Plan as the Manager role. Figure 88: Operations of the Object Owner After saving the changes for all objects, the object list will disappear from the object list overview of the object owner (see figure before). If the object list remains visible, click Refresh. Note: In the New Profit Center column, it is only possible to choose profit centers, which are defined in the general restrictions of the reorganization plan. Hint: If you start the report, Consistency Check for Fixed Assets After Reorganization, before the assignment of the new profit centers and the status change is saved you will have inconsistent assets in case the asset master data has been assigned to a cost center and, for example, to an internal order. Reason: The system already knows that the cost center of the asset will be changed within the reorganization but the change of the internal order is not yet assigned and saved SAP AG. All rights reserved. 2011

183 AC612 Lesson: Profit Center Reorganization If the report, Consistency Check for Fixed Assets After Reorganization, still displays inconsistent assets after saving the status changes, you have to do manual changes this in the asset master data. You can execute the report, Consistency Check for Fixed Assets After Reorganization, in two ways: With a Web Dynpro Application: The role of the Reorganization Manager contains a link to some check reports. The link is called Further services per Plan Type. One of the available reports there is the POWERList Consistency Check for Fixed Assets. With the ABAB program FAGL_R_ASSETS_CONSISTENZ_CHECK. The program can be started in Customizing: Financial Accounting (New) General Ledger Accounting (New) Reorganization Specific Settings for Profit Center Reorganizations Reorganization of Fixed Assets Check Profit Center Assignments in Asset Master Records. Figure 89: Check Reorganization Plan So far, all described activities have to be started in reorganization phase A SAP AG. All rights reserved. 169

184 Unit 4: Profit Center Reorganization AC612 Figure 90: Phase Model: Phase B1 Note: * In the AC612 course example, only depreciation area 01 is posting to G/L. That means, we do not need to run the periodic posting run RAPERP2000. ** For new CO objects (still) relevant for postings to prior period: Create new master data and assign old PC in master data. As the reorganization manager, regenerate object list. As the object owner, assign new profit center in object list. For new CO objects relevant for postings only as of the reorganization period: Create new master data and assign new profit center. Those CO objects need not be included in reorganization SAP AG. All rights reserved. 2011

185 AC612 Lesson: Profit Center Reorganization Caution: Without closing the prior period, you cannot proceed the reorganization process. Hint: Explanation of the general declaration in Phase B1: For example, if you look up the internal order in the master data in Phase B1, you will still see the old profit center. But, if an FI document, such as a vendor invoice is posted in Phase B1 with that internal order, the system will automatically post to the new profit center. Therefore, the Profit & Loss line of the document, in data entry view, is already assigned to the new profit center. In the G/L view of the cause, all lines carry the new profit center. Alternatively, postings to that internal order with a posting date in the prior period will still be assigned to the old profit center. This behavior is referred to as Quasi Time Dependency in Phase B1. But, postings without CO objects, such as a customer invoice without a sales order, but with a manually maintained profit center, cannot be redirected. So, if you accidentally assign the old profit center in Phase B1, the revenue line will not be changed by the reorganization. Manually maintained Profit & Loss lines are not in scope. Attention: If document splitting is activated, a regeneration of the object list for the Receivables object type will select the customer line. The object list owner will have to decide which one is the correct profit center. If the customer invoice has not been incorrectly assigned, the old profit center will remain SAP AG. All rights reserved. 171

186 Unit 4: Profit Center Reorganization AC612 Figure 91: Phase Model: Phase B2 In phase B2: Redirection of P&L postings to new profit centers based on object lists. Balance sheet postings can still contain incorrect postings, but will be reorganized during the later Transfer Posting step. Figure 92: Reassignment SAP AG. All rights reserved. 2011

187 AC612 Lesson: Profit Center Reorganization * A new browser window opens. To see the document number, choose in the new window the Transfer posting tab and press the Apply button. In the displayed table scroll to the right Hint: Specific characteristics of the fixed asset transfer posting: Reorganization documents are posted for every single asset and not cumulative per balance sheet account. In the document header of the asset transfer posting you will see header text REORG [Name of REORG plan] / FA. Additional information - Not relevant for AC612: In case of working with the ledger solution (within new G/L), also a delta document, which posts only in the non leading ledger is automatically posted to correct the ADP account values, if needed. Such a document is essential if the parallel depreciation area has different depreciation parameters than depreciation area 01. The document number of the delta document is also displayed in the reorganization tool. Caution: The explained reorganization of fixed assets works only if the following conditions exist: Segment Reporting for assets is activated: SAP Customizing Implementation Guide Financial Accounting (New) Asset Accounting Integration with General Ledger Accounting Segment Reporting Activate Segment Reporting. The reorganization of fixed assets is activated: SAP Customizing Implementation Guide Financial Accounting (New) General Ledger Accounting (New) Reorganization Specific Settings for Profit Center Reorganizations Reorganization of Fixed Assets Activate Reorganization of Fixed Assets SAP AG. All rights reserved. 173

188 Unit 4: Profit Center Reorganization AC612 Figure 93: Check Reassignment Hint: Accounts receivables, accounts payables (and the GR/IR-account) are only in the scope of reorganization if document splitting is activated. If document splitting is not activated payables and receivables are not assigned to a profit center (in the general ledger view of an FI document). Therefore, it makes sense to delete them in the derivation hierarchy. The system will not be able to select them anyway. Only receivables and payables posted via customers and vendors, the FI subledgers Accounts Payable and Accounts Receivable, are considered. From a business perspective, postings that are characterized as receivables or payable, but posted to general ledger accounts (not reconciliation accounts), are not taken into account. Only open items on customer and vendor accounts are considered in reorganization SAP AG. All rights reserved. 2011

189 AC612 Lesson: Profit Center Reorganization Open special G/L indicator items of type A (Down Payments, Down Payment Requests) are considered as well. Note: In the profit center derivation hierarchy, receivables and payables appear as objects on the first and on lower levels. First level examples: During business transactions, receivables and payables receive their assignment to profit centers based on account assignments of offsetting postings, by direct assignments or by default settings. Lower level examples: Dependent on the business process scenarios, the profit center information is passed through to receivables/payables via the assignment in, for example, sales orders, fixed assets, or controlling objects. The following postings, regarding payables and receivables are not considered by the profit center reorganization: Cleared items Recurring entry documents Transactional data resulting from specific closing activities. These postings affect balance sheet items only and the profit center balances to zero after the automatically created reversal posting, for example, transfer postings for doubtful receivables or reclassification of receivables and payables. The following postings are out of scope Manual reorganization posting is eventually required: Interest calculation documents Special G/L indicator transactions, except down payments and down payment requests SAP AG. All rights reserved. 175

190 Unit 4: Profit Center Reorganization AC612 Figure 94: Transfer Postings (1) Caution: If an internal order is not settled completely in the prior period and is still debited with costs no transfer posting is executed. P/L accounts are not in scope of the reorganization. If the settlement will be executed in the future the new profit center is assigned SAP AG. All rights reserved. 2011

191 AC612 Lesson: Profit Center Reorganization Figure 95: Transfer Postings (2) In the History column (not displayed above), click Open and information about the posting run is displayed. Note: In Log column, you see a message for the Internal Order object type: No balance will be transferred. The message is a result of the fact that no balance sheet account is posted to internal orders. Previously mentioned, costs (or P/L accounts) debited to the internal order will not be transferred anyway SAP AG. All rights reserved. 177

192 Unit 4: Profit Center Reorganization AC612 Figure 96: Display Transfer Document in Reorganization Tool Document header text: REORG [Name of REORG plan] / AP Transaction displayed in the document header: FAGL_R_INFO The document is posted in all ledgers SAP AG. All rights reserved. 2011

193 AC612 Lesson: Profit Center Reorganization Figure 97: Display Transfer Document in ERP System Hint: If Single Sign-On is not activated, you will be requested to log on to NWBC. Figure 98: Level of Completion SAP AG. All rights reserved. 179

194 Unit 4: Profit Center Reorganization AC612 The Delete button is available. But, a deletion of a reorganization plan is only possible as long as no objects have set the status Approved for Further Processing by the object owner. If for objects this status is set and you attempt to delete the reorganization plan, the following error message appears: FAGL_REORGANIZATION031 Diagnosis: Reorganization plan XX cannot be deleted because objects already exist with at least the status Approved for Further Processing. System Response: The reorganization plan is not deleted. Figure 99: Phase Model: Phase C SAP AG. All rights reserved. 2011

195 AC612 Lesson: Profit Center Reorganization Figure 100: Customizing Not all steps of the new Customizing branch are mandatory. But, to execute the reorganization example of this course, the following steps have been executed: Activate the reorganization plan type SAP delivers plan type 001 (Profit Center) Activate at least one hierarchy version SAP delivers version 001. Perform that in step, Remove Object Types from Derivation Hierarchy. Define a reorganization document type It makes sense to create a new document type, for example, document type RG. If document splitting is activated do not forget to classify the new document type for document splitting: Business transaction 0000 and business transaction variant 0001 is ok. Define (consolidation) transaction types for the reorganization postings: For acquisition use consolidation transaction type 120 and for retirement consolidation transaction type 140. If fixed assets are also part of the reorganization, you have to activate the following: Segment Reporting for fixed assets: Customizing Asset Accounting Integration with General Ledger Accounting Segment Reporting Activate Segment Reporting. Activated Segment Reporting is mandatory if you want to activate the Reorganization for Fixed Assets step. Reorganization for fixed assets in the above displayed branch Specific Settings for Profit Center Reorganizations SAP AG. All rights reserved. 181

196 Unit 4: Profit Center Reorganization AC612 Figure 101: Further Information SAP AG. All rights reserved. 2011

197 AC612 Lesson: Profit Center Reorganization Lesson Summary You should now be able to: Explain the meaning and the content of a reorganization of profit centers Understand the way a reorganization of profit centers works SAP AG. All rights reserved. 183

198 Unit Summary AC612 Unit Summary You should now be able to: Explain the meaning and the content of a reorganization of profit centers Understand the way a reorganization of profit centers works SAP AG. All rights reserved. 2011

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201 Unit 5 Profit Center Planning in New General Ledger Accounting Unit Overview Plan data can be transferred to Profit Center Accounting or entered directly in Profit Center Accounting. Unit Objectives After completing this unit, you will be able to: Set up profit center planning Use integrated FI CO planning for profit center planning Unit Contents Lesson: Planning Configuration and Manual Planning Exercise 9: Planning Configuration and Manual Planning Lesson: Integrated Planning Exercise 10: Integrated Planning SAP AG. All rights reserved. 185

202 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Lesson: Planning Configuration and Manual Planning Lesson Overview You define the version and planner profile for Profit Center Accounting. Lesson Objectives After completing this lesson, you will be able to: Set up profit center planning Business Example Profit planning and financial statement planning should also be possible at profit center level. Figure 102: Planning in Financial Accounting SAP AG. All rights reserved. 2011

203 AC612 Lesson: Planning Configuration and Manual Planning Settings that are needed to activate planning in new General Ledger Accounting: Activate summary table: Customizing Financial Accounting (New) General Ledger Accounting (New) Planning Technical Help Install Summary Table Import planning layouts: Customizing Financial Accounting (New) General Ledger Accounting (New) Planning Technical Help Import Planning Layouts Define plan periods: Customizing Financial Accounting (New) General Ledger Accounting (New) Planning Define Plan Periods Set planner profile: Application General Ledger Periodic Processing Planning Set Planner Profile Create planning document types: Customizing Financial Accounting (New) General Ledger Accounting (New) Planning Define Document Types for Planning Define plan version: Customizing Financial Accounting (New) General Ledger Accounting (New) Planning Plan Versions Define Plan Versions Assign plan version to a fiscal year: Customizing Financial Accounting (New) General Ledger Accounting (New) Planning Plan Versions Fiscal-Year-Dependent Version Parameters Assign Plan Version to Fiscal Year and Activate Activate plan line items: Customizing Financial Accounting (New) General Ledger Accounting (New) Planning Plan Versions Fiscal-Year-Dependent Version Parameters Activate Line Items for Planning The transaction code for planning in the new general ledger is GP12N SAP AG. All rights reserved. 187

204 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Figure 103: Planning Layouts for Planning in Financial Accounting (Direct) planning in FI is always saved together with an account. This means it is easy to plan primary processes. However, it is not possible to plan secondary processes (such as activities) directly from FI. This is only possible through integrated planning with Overhead Cost Controlling (in standard with EHP3 or SAP Note ). There are standard drilldown reports that enable you to evaluate the plan data for accounts in FI: Choose the following menu path in the application: Accounting Financial Accounting Information System General Ledger Reports Financial Statement / Cash Flow General Plan/Actual Comparisons Financial Statement: Plan/Actual Comparison. When you start the drilldown report without specifying a financial statement structure in the selection screen, the plan and actual values for the accounts are compared directly. If you do not specify a financial statement structure, the period values are summarized up to the chosen selection period. If you only want to evaluate the plan values for a month (only for the month of March, for example), you cannot leave out entering a financial statement structure. EHP3 includes additional drilldown reports for profit centers and segment plans. These drill-down reports even offer selection by cost element (and not only by account). Note: If a segment is defined in a profit center master record, the plan data for that profit center are saved automatically for the corresponding segment SAP AG. All rights reserved. 2011

205 AC612 Lesson: Planning Configuration and Manual Planning Figure 104: More Detailed Information on Planning in Financial Accounting Activating cumulative plan data entry for balance sheet accounts (menu path in Customizing): Financial Accounting (New) General Ledger Accounting (New) Planning Activate Cumulative Plan Data Entry for Balance Sheet Accounts What does this do? In the default settings, the period screen for planning in the new G/L (transaction code GP12N) shows the stock change values by period. If you activate cumulative plan data entry for balance sheet accounts, in contrast, the planned balance sheet values are displayed for balance sheet accounts (and only for balance sheet accounts) instead of the balance sheet change values. Example: You have activated cumulative plan data entry. You use transaction code GP12N to enter EUR 12,000 for balance sheet account with distribution key 2. You then go to the period screen. The period screen shows EUR 12,000 each for periods 1 through 12. This means you have planned a balance of EUR 12,000 on the account in every period. There are no balance sheet changes in periods 2 through 12. If cumulative plan data entry is not active for balance sheet accounts and you enter the same values as above, the period screen shows EUR 1,000 each for periods 1 through 12. This means the account balance increases by EUR 1,000 in every period. If (and only if) cumulative plan data entry is active for balance sheet accounts, a balance carryforward is possible for planning data in FI: Transaction code FAGL_PLAN_VT. Path to BAPI and BAdI: Customizing: Financial Accounting (New) General Ledger Accounting (New) Planning External Plan Data Transfer SAP AG. All rights reserved. 189

206 Unit 5: Profit Center Planning in New General Ledger Accounting AC SAP AG. All rights reserved. 2011

207 AC612 Lesson: Planning Configuration and Manual Planning Exercise 9: Planning Configuration and Manual Planning Exercise Objectives After completing this exercise, you will be able to: Analyze the version settings for the Profit Center Accounting component Define planning layouts and planner profiles Business Example Your company management wants to enable plan/actual comparisons in Profit Center Accounting. As a result, planning on a profit center basis is activated in FI SAP AG. All rights reserved. 191

208 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Task 1: Check the version settings for planning in Profit Center Accounting. 1. Can you plan in the current fiscal year? 2. Is manual planning possible in version 0 (ledger 0L)? Can plan data be transferred from Overhead Cost Controlling? 3. Is planning with line items possible in the current fiscal year in company code 1000? Task 2: You enter manual plan data for administrative expenses. 1. Set planner profile SAPFAGL for summary table FAGLFLEXT. Task 3: You enter manual plan values for the expected sales and production processes for profit center 612##. 1. Plan the following expenses in the P&L statement for the expected postings from the production and sales area of profit center 612##, using layout 0FAGL-01. Enter the following values in the initial screen: Continued on next page SAP AG. All rights reserved. 2011

209 AC612 Lesson: Planning Configuration and Manual Planning From Period 1 To Period 12 Profit Center 612## Company Code 1000 Ledger 0L Version 0 Fiscal Year Current fiscal year Currency EUR Account Number to Entry Free Choose the Overview Screen button or press F5. Hint: You can also maintain the plan values behind the accounts in the interval if you use Form-Based entry. This would display too many accounts for the purpose of this exercise, however, which is why you use Free entry. Enter the following data for profit center 612##: Account Number Trans. Currency Can you also plan secondary costs of production (such as production overhead) at this point? Task 4: You enter manual plan values for balance sheet depreciation in the P&L statement, as well as the corresponding value adjustments in the balance sheet. You also enter the asset portfolio for profit center 611##. 1. Plan the following values in the P&L statement for the expected postings from the asset area of profit center 611##, using layout 0FAGL-01. Enter the following values in the initial screen: Continued on next page SAP AG. All rights reserved. 193

210 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 From Period 1 To Period 12 Profit Center 611## Company Code 1000 Ledger Version 0 Fiscal Year Currency 0L Current fiscal year EUR Account Number 1000 to Entry Free Choose the Overview Screen button or press F5. Enter the following data for profit center 611##: Account Number Trans. Currency Examine the periodic values from balance sheet account Why is the annual value updated in every monthly period? Task 5: You plan cost-accounting depreciation in Asset Accounting. 1. Run the report for primary cost planning: depreciation/interest. Enter the following parameters: Company Code 1000 Plan Version 0 Cost Center Depreciation Area 20 Fiscal Year T611## Current fiscal year Continued on next page SAP AG. All rights reserved. 2011

211 AC612 Lesson: Planning Configuration and Manual Planning Task 6: From Period 1 To Period 12 No test run Analyze the effects of the planning in reporting. 1. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center Current fiscal year GROUP## Analyze the planned values the P&L statement from profit centers 611## and 612## SAP AG. All rights reserved. 195

212 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Solution 9: Planning Configuration and Manual Planning Task 1: Check the version settings for planning in Profit Center Accounting. 1. Can you plan in the current fiscal year? Answer: Implementation Guide: Financial Accounting (New) General Ledger Accounting (New) Planning Define Plan Periods The posting periods of the current fiscal year are defined in variant Is manual planning possible in version 0 (ledger 0L)? Can plan data be transferred from Overhead Cost Controlling? Answer: Implementation Guide: Financial Accounting (New) General Ledger Accounting (New) Planning Plan Versions Define Plan Versions 3. Is planning with line items possible in the current fiscal year in company code 1000? Answer: Implementation Guide: Financial Accounting (New) General Ledger Accounting (New) Planning Plan Versions Fiscal-Year-Dependent Version Parameters Assign Plan Version to Fiscal Year and Activate. Task 2: Planning with line items is possible in the current fiscal year. You enter manual plan data for administrative expenses. 1. Set planner profile SAPFAGL for summary table FAGLFLEXT. Task 3: a) Accounting Financial Accounting General Ledger Periodic Processing Planning Set Planner Profile You enter manual plan values for the expected sales and production processes for profit center 612##. 1. Plan the following expenses in the P&L statement for the expected postings from the production and sales area of profit center 612##, using layout 0FAGL-01. Enter the following values in the initial screen: Continued on next page SAP AG. All rights reserved. 2011

213 AC612 Lesson: Planning Configuration and Manual Planning From Period 1 To Period 12 Profit Center 612## Company Code 1000 Ledger 0L Version 0 Fiscal Year Current fiscal year Currency EUR Account Number to Entry Free Choose the Overview Screen button or press F5. Hint: You can also maintain the plan values behind the accounts in the interval if you use Form-Based entry. This would display too many accounts for the purpose of this exercise, however, which is why you use Free entry. Enter the following data for profit center 612##: Account Number Trans. Currency Can you also plan secondary costs of production (such as production overhead) at this point? a) Accounting Financial Accounting General Ledger Periodic Processing Planning Plan Values Enter (New) Enter the plan values as described in the table. You cannot enter any secondary costs from CO in manual planning. Continued on next page SAP AG. All rights reserved. 197

214 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Task 4: You enter manual plan values for balance sheet depreciation in the P&L statement, as well as the corresponding value adjustments in the balance sheet. You also enter the asset portfolio for profit center 611##. 1. Plan the following values in the P&L statement for the expected postings from the asset area of profit center 611##, using layout 0FAGL-01. Enter the following values in the initial screen: From Period 1 To Period 12 Profit Center 611## Company Code 1000 Ledger Version 0 Fiscal Year Currency 0L Current fiscal year EUR Account Number 1000 to Entry Free Choose the Overview Screen button or press F5. Enter the following data for profit center 611##: Account Number Trans. Currency Continued on next page SAP AG. All rights reserved. 2011

215 AC612 Lesson: Planning Configuration and Manual Planning Examine the periodic values from balance sheet account Why is the annual value updated in every monthly period? Task 5: a) Accounting Financial Accounting General Ledger Periodic Processing Planning Plan Values Enter (New) Enter the values as shown in the table. b) Implementation Guide: Financial Accounting (New) General Ledger Accounting (New) Planning Activate Cumulative Plan Data Entry for Balance Sheet Accounts The entered value is updated as an asset value in every period because cumulative plan data entry is active for balance sheet accounts. You plan cost-accounting depreciation in Asset Accounting. 1. Run the report for primary cost planning: depreciation/interest. Enter the following parameters: Task 6: Company Code 1000 Plan Version 0 Cost Center Depreciation Area 20 Fiscal Year From Period 1 To Period 12 No test run T611## Current fiscal year a) Accounting Financial Accounting Fixed Assets Periodic Processing Primary Cost Planning: Depreciation/Interest Start the depreciation run with the specified parameters. Analyze the effects of the planning in reporting. 1. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Continued on next page SAP AG. All rights reserved. 199

216 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center Current fiscal year GROUP## Analyze the planned values the P&L statement from profit centers 611## and 612##. a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance SAP AG. All rights reserved. 2011

217 AC612 Lesson: Planning Configuration and Manual Planning Lesson Summary You should now be able to: Set up profit center planning SAP AG. All rights reserved. 201

218 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Lesson: Integrated Planning Lesson Overview You transfer planning data from Overhead Cost Controlling. Lesson Objectives After completing this lesson, you will be able to: Use integrated FI CO planning for profit center planning Business Example Sales and cost plans are transferred from Profitability Analysis and Cost Center Accounting to Profit Center Accounting. Figure 105: Integrated Planning from Overhead Cost Controlling to Financial Accounting Integrated planning from CO-OM to the new general ledger only works if the plan versions in FI and CO have the same names. Example: CO plan values from CO plan version 0 are only transferred to FI plan version 0. If you use plan SAP AG. All rights reserved. 2011

219 AC612 Lesson: Integrated Planning version 1 to plan in CO, you also have to define and assign a plan version 1 in FI. You continue using the previous CO planner profile (such as SAPALL) to enter the plan values in CO. It is also possible to transfer plan data from the CO-PA component (Profitability Analysis) to the new general ledger however, this is not performed online, but instead using a (periodic) program run. Integrated planning of secondary costs is available in ECC6.0 with EHP3 and later (or in earlier systems with SAP Note ). Figure 106: Data Flow from Integrated Planning to Financial Accounting The above example only works on the new general ledger end if the corresponding scenarios are assigned to the ledgers (ledger 0L in the above example). Therefore, you need scenario assignments to write plan data to the new G/L as well. If you do not assign the scenarios, only the account and the plan amount are saved, without any other characteristics (specifically, without a profit center). Another planning option (in the standard system): You can also write plan line items in the new general ledger. This means plan values (for an account) are not only saved in summary table FAGLFLEXT; a plan line item (with plan document number) is also saved for each plan movement in table FAGLFLEXP. It was not possible to write plan line items in planning in classic General Ledger Accounting. Activating plan line item updates in Customizing: Financial Accounting (New) General Ledger Accounting (New) Planning Plan Versions Fiscal-Year-Dependent Version Parameters Activate Line Items for Planning SAP AG. All rights reserved. 203

220 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 You can see whether the action was successful in the fiscal year-dependent version parameters. Advantages of plan line items: Go from plan drilldown reporting to plan line item: new report for plan line items (with EHP3): transaction code FAGLP03. The output is the same list that is called when you navigate from plan drilldown reporting. When you navigate from drilldown reporting, the list contains aggregated periods. When you call the report directly, you can deselect period aggregation in the selection screen. The period field is then filled in the output as well. You can check whether the plan document has been transferred to FI already: Transaction code FAGL_CO_PLAN. Figure 107: Integrated Planning in Financial Accounting for Secondary Costs Transaction code and program for activating integrated planning for secondary cost elements: FAGL_PLAN_ACT_SEC. You can also use program FAGL_PLAN_ACT_SEC (and therefore integrated planning for secondary cost elements) with SAP ERP 2004 or an SAP ERP 6.0 release without enhancement packages. See SAP Note for more information. Hint: The activation of integrated planning for secondary cost elements is valid system-wide SAP AG. All rights reserved. 2011

221 AC612 Lesson: Integrated Planning Customizing path for account determination for real-time CO FI integration: Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Account Determination for Real-Time Integration Define Account Determination for Real-Time Integration. Once you activate integrated planning for secondary cost elements, secondary plan transactions are also available for selection in account determination for real-time CO FI integration. Examples: RKP1 Primary cost planning => This transaction is always available RKP2 Activities planning RKP3 Secondary cost planning RKPU Plan overhead cost assessment If the assignment of reconciliation accounts to CO transactions is too general for your purposes, you can use substitution rules to define a more detailed assignment (for example, assignment of reconciliation account for each secondary cost element [and not only for each CO transaction]). Figure 108: Integrated Planning in Financial Accounting for Secondary Costs - Data Flow (1) To start CO plan assessment, choose the following menu path on the SAP Easy Access screen: Accounting Controlling Cost Center Accounting Planning Allocations Assessment SAP AG. All rights reserved. 205

222 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Transaction code to create a new CO plan assessment: KSU7 Transaction code to execute a CO plan assessment: KSUB Figure 109: Integrated Planning in Financial Accounting for Secondary Costs - Data Flow (2) The corresponding FI plan line item for the master data constellation described above appears as follows: Account Amount Profit Center Partner Profit Center In the depicted drilldown report (available in EHP3 and later), you can also navigate to the cost element characteristic (630000) SAP AG. All rights reserved. 2011

223 AC612 Lesson: Integrated Planning Figure 110: Transfer of Plan Data Classic and New General Ledger You can transfer plan data from the following Controlling (CO) components for planning in the new general ledger: Overhead Cost Controlling (CO-OM): Primary and secondary cost elements Profitability Analysis (CO-PA): Primary cost elements Planning for primary and secondary cost elements is saved directly in the new general ledger. As a result, you no longer have to plan in Profit Center Accounting (EC-PCA) or in the special ledgers (FI-SL) SAP AG. All rights reserved. 207

224 Unit 5: Profit Center Planning in New General Ledger Accounting AC SAP AG. All rights reserved. 2011

225 AC612 Lesson: Integrated Planning Exercise 10: Integrated Planning Exercise Objectives After completing this exercise, you will be able to: Transfer plan data from Overhead Cost Controlling online Business Example Task 1: You want to use primary cost planning for the administrative cost center for P&L planning in Financial Accounting. 1. Set planner profile SAPALL for cost center planning in Controlling. 2. Plan the following primary costs for the expected administrative expenses in cost center T611##, using layout Enter the following values in the initial screen: Version 0 From period 1 To period 12 Fiscal Year Cost Center Current fiscal year T611## Account Number to Entry Free Choose the Overview Screen button or press F5. Enter the following data for cost center T611##: Account Number Plan Fixed Costs Continued on next page SAP AG. All rights reserved. 209

226 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Task 2: You want to analyze the effects of cost center planning in reporting of the new general ledger. 1. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger Task 3: 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center 611## Current fiscal year Analyze the planned values the P&L statement from profit centers 611##. You transfer secondary costs from cost center planning. 1. The administrative cost center uses repair services from the Technical Service cost center. Enter the corresponding activity input for cost center T611##. Use layout in cost center planning to enter the activity input. Enter the following data: Version 0 From period 1 To period 12 Fiscal Year 2009 Cost Center T611## Sender cost center 4100 SAtyTyp (Sender Activity Type) 1410 Entry: Form-Based Continued on next page SAP AG. All rights reserved. 2011

227 AC612 Lesson: Integrated Planning Choose the Overview Screen symbol or press F5. Enter Plan Fixed Consumption 60 hours, which cost center 611## purchases from cost center 4100 in the form of activity type Task 4: You want to analyze the effects of cost center planning in reporting of the new general ledger. 1. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 1 Fiscal Year From Period 1 INT To Period 12 Profit Center 611## Current fiscal year Analyze the planned values of the P&L statement of profit centers 611## SAP AG. All rights reserved. 211

228 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Solution 10: Integrated Planning Task 1: You want to use primary cost planning for the administrative cost center for P&L planning in Financial Accounting. 1. Set planner profile SAPALL for cost center planning in Controlling. a) Accounting Controlling Cost Center Accounting Planning Set Planner Profile 2. Plan the following primary costs for the expected administrative expenses in cost center T611##, using layout Enter the following values in the initial screen: Version 0 From period 1 To period 12 Fiscal Year Cost Center Current fiscal year T611## Account Number to Entry Free Choose the Overview Screen button or press F5. Enter the following data for cost center T611##: Task 2: Account Number Plan Fixed Costs a) Accounting Controlling Cost Center Accounting Planning Cost and Activity Inputs Change Enter the plan values as described in the table. You want to analyze the effects of cost center planning in reporting of the new general ledger. 1. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Continued on next page SAP AG. All rights reserved. 2011

229 AC612 Lesson: Integrated Planning Currency Type 10 Company Code 1000 Ledger Task 3: 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center 611## Current fiscal year Analyze the planned values the P&L statement from profit centers 611##. a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. The primary costs appear as expenses in the P&L statement of profit center 611##. You transfer secondary costs from cost center planning. 1. The administrative cost center uses repair services from the Technical Service cost center. Enter the corresponding activity input for cost center T611##. Use layout in cost center planning to enter the activity input. Enter the following data: Version 0 From period 1 To period 12 Fiscal Year 2009 Cost Center T611## Sender cost center 4100 SAtyTyp (Sender Activity Type) 1410 Entry: Form-Based Continued on next page SAP AG. All rights reserved. 213

230 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Choose the Overview Screen symbol or press F5. Enter Plan Fixed Consumption 60 hours, which cost center 611## purchases from cost center 4100 in the form of activity type Task 4: a) Accounting Controlling Cost Center Accounting Planning Cost and Activity Inputs Change Use layout to enter the specified hours. You want to analyze the effects of cost center planning in reporting of the new general ledger. 1. Go to the information system for the new general ledger and call the report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 1 Fiscal Year From Period 1 INT To Period 12 Profit Center 611## Current fiscal year Continued on next page SAP AG. All rights reserved. 2011

231 AC612 Lesson: Integrated Planning Analyze the planned values of the P&L statement of profit centers 611##. a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. The secondary costs appear on a reconciliation account from profit center 611##. The secondary costs are transferred to the new general ledger because integrated planning of secondary cost elements is active. You can see this in the Implementation Guide under: Financial Accounting (New) General Ledger Accounting (New) Planning Activate Plan Integration for Secondary Cost Elements. The reconciliation account was configured in account determination for real-time integration. You can check this in the Implementation Guide under the following menu path: Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Account Determination for Real-Time Integration Define Account Determination of Real-Time Integration SAP AG. All rights reserved. 215

232 Unit 5: Profit Center Planning in New General Ledger Accounting AC612 Lesson Summary You should now be able to: Use integrated FI CO planning for profit center planning SAP AG. All rights reserved. 2011

233 AC612 Unit Summary Unit Summary You should now be able to: Set up profit center planning Use integrated FI CO planning for profit center planning SAP AG. All rights reserved. 217

234 Unit Summary AC SAP AG. All rights reserved. 2011

235 AC612 Test Your Knowledge Test Your Knowledge 1. Profit centers and segments are managed. When you plan profit centers, you do not have to enter the plan values for segments separately. Determine whether this statement is true or false. True False 2. Planning data cannot be transferred from costing based profitability analysis to Profit Center Accounting because there are no value fields in Profit Center Accounting. Determine whether this statement is true or false. True False SAP AG. All rights reserved. 219

236 Test Your Knowledge AC612 Answers 1. Profit centers and segments are managed. When you plan profit centers, you do not have to enter the plan values for segments separately. Answer: True A segment is always uniquely assigned to a profit center. The plan values of the profit center are transferred to these segments. 2. Planning data cannot be transferred from costing based profitability analysis to Profit Center Accounting because there are no value fields in Profit Center Accounting. Answer: False Planning data can be transferred from profitability analysis to Profit Center Accounting SAP AG. All rights reserved. 2011

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239 Unit 6 Information System Unit Overview Standard drilldown reports are available to analyze profit center values, stored in the summery table of the new General Ledger Accounting. This unit demonstrates how to use Unit Objectives After completing this unit, you will be able to: Use standard drilldown reports Unit Contents Lesson: Short Overview of Standard Delivered Drilldown Reports Exercise 11: Use Standard Drilldown Reports SAP AG. All rights reserved. 221

240 Unit 6: Information System AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports Lesson Overview You are testing the reporting tools in Profit Center Accounting. Lesson Objectives After completing this lesson, you will be able to: Use standard drilldown reports Business Example Your project team now has a clear understanding of the actual and plan data flows in Profit Center Accounting. You now outline the options available for reporting profit center data. You know that a number of standard drilldown reports are shipped with the SAP system. Your team members are especially interested in analyzing plan/actual comparisons of the profit centers they are responsible for. In addition, they would like to drill down to the originating documents. You explain the options that are available with the standard reports, based on summery table FAGLFLEXT SAP AG. All rights reserved. 2011

241 AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports Standard Drilldown Reports based on Table FAGLFLEXT Figure 111: Financial Statements In the drilldown reports, as well, you can simplify the entry work significantly by creating suitable program variants SAP AG. All rights reserved. 223

242 Unit 6: Information System AC612 Figure 112: Financial Statement: Actual/Actual Comparison (Classic) You can choose whether to call the drilldown report in the classic or graphical layout in the selection screen for the report. Figure 113: Financial Statement: Actual/Actual Comparison (Graphical) Of course, if the selection is identical, the results are also identical SAP AG. All rights reserved. 2011

243 AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports Figure 114: Navigating in Drill-Down Reporting The drilldown reports are so flexible that they allow you to drill down to individual Financial Accounting documents: Use the report/report interface in the results screen. Then choose Line Items. Double-click one of the displayed document numbers to retrieve the corresponding FI document SAP AG. All rights reserved. 225

244 Unit 6: Information System AC612 Figure 115: New Drilldown Reports Transaction code FGI0 lists the defined program variants that you can execute. Note: But drilldown reporting is not a new feature in SAP ERP. To have an overview of the FI drilldown reports that you can use with the classic general ledger, start transaction code FSI0. Figure 116: New Drilldown Reports for Profit Centers and Segments SAP AG. All rights reserved. 2011

245 AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports If you only see 5 drilldown reports in report type 002 (reporting for table FAGLFLEXT) after installing Enhancement Package 3, you have to import the new drilldown reports from client 000 first. Transaction code FGI0 Choose menu path Environment Import Reports Execute. On the screen that appears, select Reporting for Table FAGLFLEXT. The new objects now appear. Select them all and execute (in the background). Once you activate business function FIN_GL_CI_1, the new drilldown reports in EHP3 are also available in on the SAP Easy Access screen, in the information system for the general ledger, in the General Ledger Reports (New) folder. This includes a new report/program (FAGL_PLAN_ITEMS_GL) for reading plan line items: Accounting Financial Accounting General Ledger General Ledger Reports (New) Line Items Display Plan Line Items (transaction code FAGLP03). EHP3 also features a migration tool for transferring Report Writer and/or Report Painter reports you used based on table GLPCT (summary table from classic Profit Center Accounting) to the new general ledger, to run these reports based on table FAGLFLEXT. Customizing: Financial Accounting (New) General Ledger Accounting (New) Information System Report Writer/Report Painter Reports Transfer of Reports from Profit Center Accounting Transfer Reports Transaction code: FAGL_RMIGR Figure 117: Payables and Receivables The G/L account assignments of the standard drilldown reports are profit center and segment. You select the ledger in the selection screen for the report. The requirement for this drilldown report comes from (classic) profit center accounting, SAP AG. All rights reserved. 227

246 Unit 6: Information System AC612 which make it possible to break down to payables or receivables accounts by profit center using report groups 8A98 (Profit Center: Receivables) and 8A99 (Profit Center: Payables), after you transfer the values to Profit Center Accounting. You find these drilldown reports on the SAP Easy Access screen under: Accounting Financial Accounting - > General Ledger Information System General Ledger Reports (New) Line Items Open Items. Figure 118: Drilldown Examples Of course, you can also select a single vendor and break it down by profit center. Note: The screen shots display the classic output type SAP AG. All rights reserved. 2011

247 AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports Optional Section: Type of Origin Object Figure 119: Navigation Characteristic: Origin Object To use the origin object characteristic, you first have to extend the summary table FAGLFLEXT with the standard field Type of origin object (EC-PCA), (field name ZZHOART) and then assign the field to (at least) one ledger. Hint: This enhancement is available in Enhancement Package 3, business function FIN_GL_CI_1. Furthermore, if you want to evaluate the origin object characteristic in the provided standard drilldown reports, you have to make it available as a characteristic for selection. To enable the navigation to CO Reports of the origin objects, via a report-report interface (RRI), you furthermore have to assign the ABAP program FAGL_RRI_RECON_CO in the drilldown report definition. That is, for example, possible, using transaction code FGI0 Select a report and switch to the change mode Choose Options tab Choose Report Assignment button. Hint: Note that the mentioned program, FAGL_RRI_RECON_CO, is only available in EHP4, business function FIN_GL_CI_ SAP AG. All rights reserved. 229

248 Unit 6: Information System AC612 Figure 120: Report-Report Interface for CO Reconciliation The displayed receiver reports are the linked standard reports for overhead orders. To call these receiver reports for the overhead order object (and for the other standard CO objects available) from the RRI, you have to load/activate them. To do so, call the following Customizing activity: Financial Accounting (New) General Ledger Accounting (New) Information System Drilldown Reports (G/L Accounts) Report-Report Interface for CO Reconciliation Change Report-Report Interface for Reconciliation with Controlling. Hint: This path is available in EHP4, business function FIN_GL_CI_ SAP AG. All rights reserved. 2011

249 AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports Exercise 11: Use Standard Drilldown Reports Exercise Objectives After completing this exercise, you will be able to: Use standard reports and check the information they contain Business Example You are examining the ease of use and analysis options available in the profit center reports in General Ledger Accounting (new). Task 1: You want to analyze accounts receivable postings at the profit center level: 1. Call the Receivables: Profit Center drilldown report with the following data: Customer Account Company Code 1000 Open on Key Date ControllArea 1000 Hier. Profit Center: Output Type T-CSD00 to T-CSD25 Today s date AC612 Classic Drilldown Report You see all the receivables on the screen. 2. Drill down this amount with the Profit Center characteristic. 3. Display the customer for profit center 612##. 4. Display the document numbers for customer T-CSD##. Task 2: You want to analyze accounts payable postings at the profit center level: 1. Call the Payables: Profit Center report with the following data: Vendor Account Company Code 1000 Open on Key Date T-K500A00 to T-K500A25 and 1000 Today s date Continued on next page SAP AG. All rights reserved. 231

250 Unit 6: Information System AC612 ControllArea 1000 Hier. Profit Center: Output Type You see all the payables on the screen. AC612 Classic Drilldown Report 2. Drill down this amount with the Profit Center characteristic. 3. Display the vendors for profit center 611##. 4. Display the document numbers for vendor T-K500A##. 5. From this view, display the document numbers for vendor Task 3: Optional Exercise: You want to examine the functions of standard drilldown reports with the Classic drilldown report output type: 1. Go to the information system of General Ledger Accounting and call the drilldown report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center Group Output Type Current fiscal year GROUP## Classic drilldown report You see the FIS annual reporting structure INT for profit center group GROUP##. 2. Navigate in the profit and loss statement down to account Sales revenues - domestic - finished goods. You want to see both the names and the keys of the accounts. Display the keys and names for the hierarchy. Continued on next page SAP AG. All rights reserved. 2011

251 AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports 3. You find it too complicated to navigate within the hierarchy of the financial statements. You want to see a flat list of account numbers instead of the hierarchy. 4. Display the hierarchy again. 5. You want to change the sequence of the navigation characteristics. You want the following characteristics to appear at the top of the list: FS Item/Account, Profit Center, and Partner Profit Center. You can arrange the other characteristics in any order you wish. 6. You want to switch the view of the financial statement structure with the view of profit center group GROUP##. 7. You want to see the balance sheet and P&L structure for profit center 612##. 8. Analyze sales on account You then want to display the corresponding line items in Financial Accounting and navigate down to the source document. Then return to the original report. 9. You only want to see the Inventory Changes ( ) as part of the hierarchy. Restrict the hierarchy view accordingly. 10. You want to analyze the account for Semi-Finished products consumed (890000) in more detail - it was posted to during the goods issue charged to the production order. Which is the partner profit center? Task 4: Optional Exercise: You want to examine the functions of standard drilldown reports with the Graphical report output output type: 1. Go to the information system of General Ledger Accounting and call the drilldown report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 1 Fiscal Year From Period 1 INT Current fiscal year Continued on next page SAP AG. All rights reserved. 233

252 Unit 6: Information System AC612 To Period 12 Profit Center Output Type GROUP## Graphical Report Output You see the FIS annual reporting structure INT for profit center group GROUP Navigate in the profit and loss statement down to account Sales revenues - domestic - finished goods. You want to see both the names and the keys of the accounts. Display the keys and names for the hierarchy. 3. You find it too complicated to navigate within the hierarchy of the financial statements. You want to see a flat list of account numbers instead of the hierarchy. 4. Display the hierarchy again. 5. You want to switch the view of the financial statement structure with the view of profit center group GROUP##. 6. You want to see the balance sheet and P&L structure for profit center 612##. 7. Analyze sales on account You then want to display the corresponding line items in Financial Accounting and navigate down to the original document. Then return to the original report. 8. You only want to see the Inventory Changes ( ) as part of the hierarchy. Restrict the hierarchy view accordingly. 9. You want to analyze the account for Semi-Finished products consumed (890000) in more detail - it was posted to during the goods issue charged to the production order. Which is the partner profit center? SAP AG. All rights reserved. 2011

253 AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports Solution 11: Use Standard Drilldown Reports Task 1: You want to analyze accounts receivable postings at the profit center level: 1. Call the Receivables: Profit Center drilldown report with the following data: Customer Account Company Code 1000 Open on Key Date ControllArea 1000 Hier. Profit Center: Output Type You see all the receivables on the screen. T-CSD00 to T-CSD25 Today s date AC612 Classic Drilldown Report a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Line Items Open Items Receivables: Profit Center 2. Drill down this amount with the Profit Center characteristic. a) Choose the Profit Center characteristic and then select the line with account Display the customer for profit center 612##. a) Choose the Customer characteristic and then select the line with profit center 612##. 4. Display the document numbers for customer T-CSD##. Task 2: a) Choose the Document Number characteristic and then select the line with customer T-CSD##. You want to analyze accounts payable postings at the profit center level: 1. Call the Payables: Profit Center report with the following data: Continued on next page SAP AG. All rights reserved. 235

254 Unit 6: Information System AC612 Vendor Account Company Code 1000 Open on Key Date ControllArea 1000 Hier. Profit Center: Output Type You see all the payables on the screen. T-K500A00 to T-K500A25 and 1000 Today s date AC612 Classic Drilldown Report a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Line Items Open Items Payables: Profit Center 2. Drill down this amount with the Profit Center characteristic. a) Choose the Profit Center characteristic and then select the line with account Display the vendors for profit center 611##. a) Choose the Vendor characteristic and then select the line with profit center 611##. Vendors 1000 and T-K500A## have been posted to. 4. Display the document numbers for vendor T-K500A##. a) Choose the Document Number characteristic and then select the line with customer T-K500A##. 5. From this view, display the document numbers for vendor Task 3: a) Click the icon and choose vendor 1000 from the selection list. Optional Exercise: You want to examine the functions of standard drilldown reports with the Classic drilldown report output type: 1. Go to the information system of General Ledger Accounting and call the drilldown report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Continued on next page SAP AG. All rights reserved. 2011

255 AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports Controlling Area 1000 FIS Annual Rep.Struc Plan Version 0 Fiscal Year From Period 1 INT To Period 12 Profit Center Group Output Type Current fiscal year GROUP## Classic drilldown report You see the FIS annual reporting structure INT for profit center group GROUP##. a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. 2. Navigate in the profit and loss statement down to account Sales revenues - domestic - finished goods. You want to see both the names and the keys of the accounts. Display the keys and names for the hierarchy. a) Choose Settings Characteristic Display and set the keys and names. You now also see account number You find it too complicated to navigate within the hierarchy of the financial statements. You want to see a flat list of account numbers instead of the hierarchy. a) Choose Edit Hierarchy Selection. Choose No Hierarchy and then Confirm. You now see a list of account numbers, without a hierarchy. 4. Display the hierarchy again. a) Choose Edit Hierarchy Select and choose the INT hierarchy. The hierarchy appears again. Choose Edit Hierarchy Select. Choose Financial Statement Version and enter INT. Select Confirm. 5. You want to change the sequence of the navigation characteristics. You want the following characteristics to appear at the top of the list: FS Item/Account, Profit Center, and Partner Profit Center. You can arrange the other characteristics in any order you wish. a) Choose Navigate Sort characteristics. Enter the sequence of numbers accordingly. Continued on next page SAP AG. All rights reserved. 237

256 Unit 6: Information System AC You want to switch the view of the financial statement structure with the view of profit center group GROUP##. a) Single-click the Profit Center field and then the FS Item/Account line field. You see the administration and production profit centers in GROUP##. 7. You want to see the balance sheet and P&L structure for profit center 612##. a) Single-click the FS Item/Account (you may have to scroll down to see it) and select the line with profit center 612##. You see the financial statement for profit center 612##. 8. Analyze sales on account You then want to display the corresponding line items in Financial Accounting and navigate down to the source document. Then return to the original report. a) Drill down the hierarchy to account Position the cursor on actual sales and choose Goto Call up report... Double click on the G/L Account Line Item Display report. From the line item list, choose Environment Display Document. Choose Goto Document Overview to display the full document. From here, choose Environment Document Environment Original Document to display the billing document from R-F1##. Then return to the original report. 9. You only want to see the Inventory Changes ( ) as part of the hierarchy. Restrict the hierarchy view accordingly. a) Click the node for Inventory Changes ( ). Choose Navigate Hierarchy Set Focus. 10. You want to analyze the account for Semi-Finished products consumed (890000) in more detail - it was posted to during the goods issue charged to the production order. Which is the partner profit center? a) Single-click the Partner Profit Center navigation characteristic. Select the line with the account Semi-Finished products consumed (890000). The partner profit center is Hint: The partner profit center comes from the material master of semifinished goods for pump R-F1##. The material numbers are R-B1##, R-B2##, R-B3##, and R-B4##. Continued on next page SAP AG. All rights reserved. 2011

257 AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports Task 4: Optional Exercise: You want to examine the functions of standard drilldown reports with the Graphical report output output type: 1. Go to the information system of General Ledger Accounting and call the drilldown report Profit Center Group: Plan/Actual/Variance with the following parameters: Currency Type 10 Company Code 1000 Ledger 0L Controlling Area 1000 FIS Annual Rep.Struc Plan Version 1 Fiscal Year From Period 1 INT To Period 12 Profit Center Output Type Current fiscal year GROUP## Graphical Report Output You see the FIS annual reporting structure INT for profit center group GROUP00. a) Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Reports for Profit Center Accounting Profit Center Group: Plan/Actual/Variance. 2. Navigate in the profit and loss statement down to account Sales revenues - domestic - finished goods. You want to see both the names and the keys of the accounts. Display the keys and names for the hierarchy. a) Choose Settings Characteristic Display and set the keys and names. You now also see account number You find it too complicated to navigate within the hierarchy of the financial statements. You want to see a flat list of account numbers instead of the hierarchy. a) Choose Edit Hierarchy Selection. Choose No Hierarchy and then Confirm. You now see a list of account numbers, without a hierarchy. Continued on next page SAP AG. All rights reserved. 239

258 Unit 6: Information System AC Display the hierarchy again. a) Choose Edit Hierarchy Select. Choose Financial Statement Version and enter INT. Select Confirm. 5. You want to switch the view of the financial statement structure with the view of profit center group GROUP##. a) Double-click the Profit Center field. You see the administration and production profit center in GROUP##. Expand Group## 6. You want to see the balance sheet and P&L structure for profit center 612##. a) Drag profit center 612## to the FS Item/Account navigation characteristic. You see the financial statement for profit center 612##. 7. Analyze sales on account You then want to display the corresponding line items in Financial Accounting and navigate down to the original document. Then return to the original report. a) Drill down the hierarchy to account Position the cursor on actual sales and choose Goto Call up report... Double click on the G/L Account Line Item Display report. From the line item list, choose Environment Display Document. Choose Goto Document Overview to display the full document. From here, choose Environment Document Environment Original Document to display the billing document from R-F1##. Then return to the original report. 8. You only want to see the Inventory Changes ( ) as part of the hierarchy. Restrict the hierarchy view accordingly. a) Click the node for Inventory Changes ( ). Click the Hierarchy... icon and then the Set Focus button. You now only see the Inventory Changes. 9. You want to analyze the account for Semi-Finished products consumed (890000) in more detail - it was posted to during the goods issue charged to the production order. Which is the partner profit center? a) Drag the Semi-Finished products consumed (890000) to the Partner Profit Center navigation characteristic. The partner profit center is Hint: The partner profit center comes from the material master of semifinished goods for pump R-F1##. The material numbers are R-B1##, R-B2##, R-B3##, and R-B4## SAP AG. All rights reserved. 2011

259 AC612 Lesson: Short Overview of Standard Delivered Drilldown Reports Lesson Summary You should now be able to: Use standard drilldown reports SAP AG. All rights reserved. 241

260 Unit Summary AC612 Unit Summary You should now be able to: Use standard drilldown reports SAP AG. All rights reserved. 2011

261 AC612 Test Your Knowledge Test Your Knowledge 1. The new general ledger only has account-based and profit center-based standard reports. Determine whether this statement is true or false. True False SAP AG. All rights reserved. 243

262 Test Your Knowledge AC612 Answers 1. The new general ledger only has account-based and profit center-based standard reports. Answer: False You can also use segment-based reports SAP AG. All rights reserved. 2011

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265 AC612 Course Summary Course Summary You should now be able to: Name the benefits of using the new General Ledger Accounting for Profit Center Accounting Set up Profit Center Accounting in SAP ERP Financials with the new General Ledger Accounting activated Describe, how a reorganization of profit centers works Use profit center drilldown reports in the new General Ledger Accounting Related Information Recommended Follow-Up Activities Go through the exercises using IDES data or your own data Read the online documentation. Read the Implementation Guide (IMG). Read the Release Notes SAP AG. All rights reserved. 245

266 Course Summary AC SAP AG. All rights reserved. 2011

267 Appendix 1 Special Cases for Profit Center Derivation Figure 121: MM Goods Movement The graphic illustrates how the system determines the profit center for an MM goods movement. The data in the MM document is posted in Profit Center Accounting to the profit center determined by the system. As you can see from the graphic, the profit center for an MM goods movement can be determined either dynamically or indirectly via the preceding document SAP AG. All rights reserved. 247

268 Appendix 1: Special Cases for Profit Center Derivation AC612 Figure 122: Invoice Receipt The graphic illustrates how the system determines the profit center for an MM invoice receipt. The data in the MM document is posted in Profit Center Accounting to the profit center determined by the system. When a goods receipt posting is made, the profit center is always determined indirectly via the preceding document. Figure 123: SD Billing Document The graphic illustrates how the system determines the profit center for a billing document. The data in the billing document is posted in Profit Center Accounting to the profit center determined by the system. For a billing document, the profit center is - with one exception - always determined indirectly via the preceding document SAP AG. All rights reserved. 2011