SAP Controlling
Cost Center Splitting Concept
Version: 1.0
Cost Center Splitting Concepts
Modified: 3/1/2013 7:55 PM .
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Last modified by: Malati Bhatt
SAP Controlling
Cost Center Splitting Concept
Version: 1.0
Table of Contents
1.Purpose / Use................................... Use.......................................................... .............................................. .............................................. ..........................................8 ...................8 2.Features........................... 2.Features.................................................. .............................................. .............................................. .............................................. ...................................8 ............8 3.Pre-requisites........................ 3.Pre-requisites............................................... .............................................. .............................................. .............................................. ............................10 .....10 3.1.Master Data Requirements......................................................................................................10 3.2.Configuration Requirements....................................................................................................10
4.Overview of Scenario and Pre-requisite Settings....................................................... Settings................................................................12 .........12 4.1.Scenario.....................................................................................................................................12 4.2.Master Data Setup....................................................................................................................12 4.3.Configuration Requirements....................................................................................................14 4.3.1.Configuration of Splitting Structure......................................................................................................14 4.3.2.Assigment of Splitting Structure to the Cost Center.............................................................................18
5.Planning Activity Costs on Cost Center................................................... Center........................................................................... ............................22 ....22 5.1.Checking Plan costs on Cost Center Reports (S_ALR_87013611)........................................22 5.2.Plan Activity Quantity..............................................................................................................24 5.3.Plan - Splitting.............................. Splitting..................................................... ....................... ....................... ....................... .......................26 .................... ...26 5.4.Plan - Price Calculation..................................... ....................... ....................... ..................... ............... .........28 ...28 5.5.Testing Results..........................................................................................................................30 5.5.1.Checking Plan Price per Activity Unit (KP27)......................................................................................30 5.5.2.Checking Plan Activity Costs on Cost Center reports (S_ALR_87013611).........................................32
6.Posting Actual Costs.................................. Costs......................................................... .............................................. ............................................ .............................34 ........34 6.1.Posting Cost Center via monthly Payroll cycle and checking its impact..............................34 6.2.Case1 : 180 hours (plan hours) AllocATED............................................................................36 6.2.1.Cost Center Report – Comparison Actual v/s Plan (S_ALR_87013611)..............................................36 6.2.2.Cost Center Report – Comparison Actual v/s Target (S_ALR_87013625)..........................................38 6.2.3.Period End Closing – Actual Splitting...................................................................................................40 6.2.4.Period End Closing – Price Calculation................................................................................................44 6.2.5.Testing Results – Actual Price (KBK6).................................................................................................46 6.2.6.Testing Results – Actual Cost Document (KSB5)................................................................................48 6.2.7.Testing Results – Cost Center Report – Actual v/s Plan (S_ALR_87013611).....................................48 6.2.8.Testing Results - Cost Center Report – Actual v/s Target (S_ALR_87013625)...................................50 6.2.9.Important Notes.....................................................................................................................................50
6.3.Case2 : 130 hours (LESS than plan hours) ALLOCATED...................................................52 6.3.1.Cost Center Report – Comparison Actual v/s Plan (S_ALR_87013611)..............................................52 6.3.2.Cost Center Report – Comparison Actual v/s Target (S_ALR_87013625)..........................................54 6.3.3.Period End Closing – Actual Splitting...................................................................................................56 6.3.4.Period End Closing – Price Calculation................................................................................................56 6.3.5.Testing Results – Actual Price (KBK6).................................................................................................58 6.3.6.Testing Results – Actual Cost Document (KSB5)................................................................................58 6.3.7.Testing Results – Cost Center Report – Actual v/s Plan (S_ALR_87013611).....................................60 6.3.8.Testing Results - Cost Center Report – Actual v/s Target (S_ALR_87013625)...................................62 6.3.9.Important Notes.....................................................................................................................................62
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Last modified by: Malati Bhatt
SAP Controlling
Cost Center Splitting Concept
Version: 1.0
Table of Contents
1.Purpose / Use................................... Use.......................................................... .............................................. .............................................. ..........................................8 ...................8 2.Features........................... 2.Features.................................................. .............................................. .............................................. .............................................. ...................................8 ............8 3.Pre-requisites........................ 3.Pre-requisites............................................... .............................................. .............................................. .............................................. ............................10 .....10 3.1.Master Data Requirements......................................................................................................10 3.2.Configuration Requirements....................................................................................................10
4.Overview of Scenario and Pre-requisite Settings....................................................... Settings................................................................12 .........12 4.1.Scenario.....................................................................................................................................12 4.2.Master Data Setup....................................................................................................................12 4.3.Configuration Requirements....................................................................................................14 4.3.1.Configuration of Splitting Structure......................................................................................................14 4.3.2.Assigment of Splitting Structure to the Cost Center.............................................................................18
5.Planning Activity Costs on Cost Center................................................... Center........................................................................... ............................22 ....22 5.1.Checking Plan costs on Cost Center Reports (S_ALR_87013611)........................................22 5.2.Plan Activity Quantity..............................................................................................................24 5.3.Plan - Splitting.............................. Splitting..................................................... ....................... ....................... ....................... .......................26 .................... ...26 5.4.Plan - Price Calculation..................................... ....................... ....................... ..................... ............... .........28 ...28 5.5.Testing Results..........................................................................................................................30 5.5.1.Checking Plan Price per Activity Unit (KP27)......................................................................................30 5.5.2.Checking Plan Activity Costs on Cost Center reports (S_ALR_87013611).........................................32
6.Posting Actual Costs.................................. Costs......................................................... .............................................. ............................................ .............................34 ........34 6.1.Posting Cost Center via monthly Payroll cycle and checking its impact..............................34 6.2.Case1 : 180 hours (plan hours) AllocATED............................................................................36 6.2.1.Cost Center Report – Comparison Actual v/s Plan (S_ALR_87013611)..............................................36 6.2.2.Cost Center Report – Comparison Actual v/s Target (S_ALR_87013625)..........................................38 6.2.3.Period End Closing – Actual Splitting...................................................................................................40 6.2.4.Period End Closing – Price Calculation................................................................................................44 6.2.5.Testing Results – Actual Price (KBK6).................................................................................................46 6.2.6.Testing Results – Actual Cost Document (KSB5)................................................................................48 6.2.7.Testing Results – Cost Center Report – Actual v/s Plan (S_ALR_87013611).....................................48 6.2.8.Testing Results - Cost Center Report – Actual v/s Target (S_ALR_87013625)...................................50 6.2.9.Important Notes.....................................................................................................................................50
6.3.Case2 : 130 hours (LESS than plan hours) ALLOCATED...................................................52 6.3.1.Cost Center Report – Comparison Actual v/s Plan (S_ALR_87013611)..............................................52 6.3.2.Cost Center Report – Comparison Actual v/s Target (S_ALR_87013625)..........................................54 6.3.3.Period End Closing – Actual Splitting...................................................................................................56 6.3.4.Period End Closing – Price Calculation................................................................................................56 6.3.5.Testing Results – Actual Price (KBK6).................................................................................................58 6.3.6.Testing Results – Actual Cost Document (KSB5)................................................................................58 6.3.7.Testing Results – Cost Center Report – Actual v/s Plan (S_ALR_87013611).....................................60 6.3.8.Testing Results - Cost Center Report – Actual v/s Target (S_ALR_87013625)...................................62 6.3.9.Important Notes.....................................................................................................................................62
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SAP Controlling
Modified: 3/1/2013 7:55 PM .
Cost Center Splitting Concept
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Version: 1.0
Last modified by: Malati Bhatt
SAP Controlling
Cost Center Splitting Concept
Version: 1.0
Revision History Date 31.01.2013
Version 1.0
Description Original Document
Modified: 3/1/2013 7:55 PM .
Author Malati Bhatt
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1.
Cost Center Splitting Concept
Version: 1.0
Purpose / Use
Costs are of 2 types - Activity Dependant or Activity Independent Activity Dependant costs - These are the costs that are tagged to a specific activity type. It can happen in 2 ways •
•
By way of FI postings - You can specify Cost Center / Activity Type while doing postings from FI By way of Cost Center Splitting
Activity Dependant costs are not split any further. They are simply divided by the activity quantity to which they are attached to. Activity Independent costs - These are the costs not attached to any activity type. These are split between all other activities as per commonly used methods as shown below •
•
Activity Qty. This means such costs to be divided between all activity types based on plan / actual quantity of those activity types. Equivalence nos. In KP26, by default the equivalence no is 1. If no other method is found, it would use Equivalence number for the purpose of splitting.
During plan cost splitting, the system splits the activity-independent plan costs of a cost center among the activity types of this cost center. You must split plan costs before executing: •
Price calculation: Plan costs are split automatically during price calculation. The SAP System determines the plan prices from the ratio of plan costs and plan activity. Splitting activity-independent plan costs on the cost center activity types helps to calculate the fixed price portion of the overall price. Plan cost splitting therefore ensures that all planned costs are considered during price calculation.
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Plan/Target/Actual Comparison To view all costs at the cost center/activity type level and make plan/target/actual comparisons, you must split activity-independent actual and plan costs among the activity types. You use the same methods for actual and plan costs. In the actual there is an additional splitting step in which the actual data is adjusted to the plan data. Actual data is distributed to the activity types on the basis of target costs or target quantities and by cost element.
2.
Features The activity-independent costs planned on a cost center are split on the activity types according to the splitting structure that you defined during Customizing and assigned to this cost center. A splitting structure contains one or more assignments in which you store splitting rules for the corresponding cost element(s) or cost element groups. You can restrict the selection of cost elements or cost element groups, as well the activity types on which the costs are split.
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SAP Controlling
Cost Center Splitting Concept
Version: 1.0
Splitting methods are assigned to the splitting rules. These methods specify how the costs are split. Based on the splitting methods, which are fixed in the R/3 System, you can split plan costs according to the following criteria: •
Activity quantity
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Equivalence number
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Capacity
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Output
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Scheduled activity
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Statistical key figure (quantity)
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Statistical key figure (maximum quantity)
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No splitting is executed
You can also use weighting indicators to control whether tracing factors are to be weighted for the cost splitting. Set the indicator if the individual tracing factor values use different units of measure. If the Conversion indicator is active, the values are multiplied with the equivalence numbers of the activity types. This enables you to compare the different units of measure of the tracing factor values.
3.
Pre-requisites
3.1. Master Data Requirements
Cost Elements (Cost Element Category - 43) Cost Centers Activity Types (Activity Type Category – 1, Price Indicator – 1, Act. Price indicator
– 5)
3.2. Configuration Requirements
Splitting Structure Setup Assignment of Splitting Structure to applicable Cost Centers
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4.
Cost Center Splitting Concept
Version: 1.0
Overview of Scenario and Pre-requisite Settings
4.1. Scenario For the purpose of easy understanding, we will take a simple scenario to understand and be clear on the concept of Cost Center Splitting. In our Example, Two individuals of Level Senior Executive and Senior Software Engineer are on Project MUS01. All emoluments paid to these individuals are been posted to only one Cost Center – ‘Proj-Mus01’. During September 2010, they both work on Job Jar Activity for which now costs has to be allocated to Cost Center ‘Jobjar01’
4.2. Master Data Setup ITP Cost Center Job Jar Cost Center Activity Types
: : :
Cost Elements (Cat – 43)
:
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Proj-Mus01 Jobjar01 SSE SE 943003 – Pay – SSE (Linked to AT – SSE) 943004 – Pay – SE (Linked to AT – SE)
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Cost Center Splitting Concept
Version: 1.0
4.3. Configuration Requirements
4.3.1. Configuration of Splitting Structure •
Access Splitting Structure through Transaction Code – OKES Navigation Path – SPRO -> Controlling -> Cost Center Accounting -> Planning -> Allocations -> Activity Allocations -> Splitting -> Define Splitting Structure
Before Creating Splitting Strcuture, we would be required to Create Splitting Rule. Click on Splitting Rules and then Click on New Entries. Maintain Values as shown below •
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Cost Center Splitting Concept
Version: 1.0
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Select ‘CS1’ and click on ‘Selection of Rules’ and maintain values as shown below
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Repeat above step for ‘CS2’
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Click on Splitting Structure. Click on New Entries and maintain values as shown
below
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Select ‘CS’ line and Click on Assignments and maintain values as shown below
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•
•
Cost Center Splitting Concept
Version: 1.0
Select ‘CS1’ and Click on ’Selection for assignment’. Maintain Values as shown below
Go one step back and Select ‘CS2’ and Click on ’Selection for assignment’. Maintain Values as shown below
Save the configurations for ‘Splitting Structure’
4.3.2. Assigment of Splitting Structure to the Cost Center •
Access Assignment through Transaction Code – OKEW Navigation Path – SPRO -> Controlling -> Cost Center Accounting -> Planning -> Allocations -> Activity Allocations -> Splitting -> Assign Splitting Structure to Cost Centers
Maintain Values as shown above and click ‘Change’ (Pencil icon) Modified: 3/1/2013 7:55 PM .
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•
Cost Center Splitting Concept
Version: 1.0
Assign Cost Center ‘Proj-Mus01’ to Splitting Structure ‘CS1’ as shown below. Save on exit
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5.
Cost Center Splitting Concept
Version: 1.0
Planning Activity Costs on Cost Center
5.1. Checking Plan costs on Cost Center Reports (S_ALR_87013611)
Their Emoluments are as follows: Particulars
GL # 490001 490002 490003 490004
Basic Others Conveyance LTA Total
SSE 10000 29000 800 25000
SE 25000 72500 800 25000
64800
123300
Total Relationship 35000 1.0:2.5 101500 1.0:2.5 1600 1.0:1.0 50000 1.0:1.0 188100
These Individuals work for 20 days a month. Considering 9 hours per day, the hour rate is as follows: Particulars Total Hours work
SSE 64800 180
SE 123300 180
360
685
Hourly Rate
These Hourly rates calculated above are done manually. Lets now derive these values using SAP Configurations.
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SAP Controlling
Cost Center Splitting Concept
Version: 1.0
5.2. Plan Activity Quantity Transaction Code – KP26 Navigation Path – SAP Easy Access Menu -> Accounting -> Controlling -> Cost Center Accounting -> Planning -> Activity Output/Prices -> Change Maintain Values as shown below and Save
Save on Exit
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Cost Center Splitting Concept
Version: 1.0
5.3. Plan - Splitting Transaction Code – KSS4 Navigation Path – SAP Easy Access Menu -> Accounting -> Controlling -> Cost Center Accounting -> Planning -> Allocations -> Splitting Maintain Values as shown below and Save
Cost Element wise – Breakup
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Cost Center Splitting Concept
Version: 1.0
Basis for Calculation
After verifying the results in Test run, Go back to initial screen and remove tick on ‘Test Run’
5.4. Plan - Price Calculation Transaction Code – KSPI Navigation Path – SAP Easy Access Menu -> Accounting -> Controlling -> Cost Center Accounting -> Planning -> Allocations -> Price Calculation Maintain Values as shown below and Save
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Cost Center Splitting Concept
Version: 1.0
After verifying the results in Test run, Go back to initial screen and remove tick on ‘Test Run’
5.5. Testing Results 5.5.1.
Checking Plan Price per Activity Unit (KP27)
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Cost Center Splitting Concept
Version: 1.0
Checking Plan Activity Costs on Cost Center reports (S_ALR_87013611)
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6.
Cost Center Splitting Concept
Version: 1.0
Posting Actual Costs
6.1. Posting Cost Center via monthly Payroll cycle and checking its impact Particulars Basic Others Conveyance LTA Total
SSE (P) 10000 29000 800 25000
SSE (A) 10000 26000 800 13600
SE (P) 25000 72500 800 25000
SE (A) 25000 69500 800 12700
Total (P) 35000 101500 1600 50000
Total (A) 35000 95500 1600 26300
64800
50400
123300
108000
188100
158400
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Cost Center Splitting Concept
Version: 1.0
6.2. CASE1 : 180 HOURS (PLAN HOURS) ALLOCATED Overview : Both SE & SSE work for full month on Jobjar Activity i.e. book 180 hours on Jobjar for each level. Before Actual Price Calculation 6.2.1.
Cost Center Report – Comparison Actual v/s Plan (S_ALR_87013611)
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Cost Center Splitting Concept
Version: 1.0
Cost Center Report – Comparison Actual v/s Target (S_ALR_87013625)
As you can see from above, as 180 hours were utilised during the period, Actual costs are derived based on Actual hours worked multiplied with the Plan Rate. Further since 100% operation has been completed, Target and Actual values would be the same. Hence at period end it becomes critical where values are significant to bring the ‘Over/Under absorption’ to minimal. This is done as detailed below
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6.2.3.
Cost Center Splitting Concept
Version: 1.0
Period End Closing – Actual Splitting
Transaction Code – KSS2 Navigation Path – SAP Easy Access Menu -> Accounting -> Controlling -> Cost Center Accounting -> Period-End Closing -> Single Functions -> Splitting Maintain Values as shown below
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Cost Center Splitting Concept
Version: 1.0
After verifying the results in Test run, Go back to initial screen and remove tick on ‘Test Run’
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6.2.4.
Cost Center Splitting Concept
Version: 1.0
Period End Closing – Price Calculation
Transaction Code – KSII Navigation Path – SAP Easy Access Menu -> Accounting -> Controlling -> Cost Center Accounting -> Period-End Closing -> Single Functions -> Price Calculation Maintain Values as shown below
After verifying the results in Test run, Go back to initial screen and remove tick on ‘Test Run’
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Cost Center Splitting Concept
Version: 1.0
After Actual Price Calculation 6.2.5.
Testing Results – Actual Price (KBK6)
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Cost Center Splitting Concept
Version: 1.0
6.2.6.
Testing Results – Actual Cost Document (KSB5)
6.2.7.
Testing Results – Cost Center Report – Actual v/s Plan (S_ALR_87013611)
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Cost Center – PROJ-MUS01
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Cost Center Splitting Concept
Version: 1.0
Cost Center – JOBJAR01
6.2.8.
Testing Results - Cost Center Report – Actual v/s Target (S_ALR_87013625)
6.2.9.
Important Notes
The moment the price is calculated and adjusted using above processes, any further activity allocation will be done at the Actual Rate that is fixed using this process. It will not use the Plan rate per activity. In this case, you will have to run Actual Splitting and Actual Price calculation again to recalculate the actual price (rate) for the period.
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Cost Center Splitting Concept
Version: 1.0
6.3. CASE2 : 130 HOURS (LESS THAN PLAN HOURS) ALLOCATED Overview : Both SE & SSE work for most hours but not all on Jobjar Activity i.e. book 130 hours on Jobjar for SSE & 100 hours for SE level. Before Actual Price Calculation 6.3.1.
Cost Center Report – Comparison Actual v/s Plan (S_ALR_87013611)
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SAP Controlling 6.3.2.
Cost Center Splitting Concept
Version: 1.0
Cost Center Report – Comparison Actual v/s Target (S_ALR_87013625)
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6.3.3.
Cost Center Splitting Concept
Version: 1.0
Period End Closing – Actual Splitting
Transaction Code – KSS2 Navigation Path – SAP Easy Access Menu -> Accounting -> Controlling -> Cost Center Accounting -> Period-End Closing -> Single Functions -> Splitting Results
6.3.4.
Period End Closing – Price Calculation
Transaction Code – KSII Navigation Path – SAP Easy Access Menu -> Accounting -> Controlling -> Cost Center Accounting -> Period-End Closing -> Single Functions -> Price Calculation Results
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Cost Center Splitting Concept
Version: 1.0
After Actual Price Calculation 6.3.5.
Testing Results – Actual Price (KBK6)
6.3.6.
Testing Results – Actual Cost Document (KSB5)
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6.3.7.
Cost Center Splitting Concept
Version: 1.0
Testing Results – Cost Center Report – Actual v/s Plan (S_ALR_87013611)
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Cost Center – PROJ-MUS01
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Cost Center – JOBJAR01
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