OKB9 is used for making default settings to the GL accounts. You can assign either a cost center, order or profit center to the cost elements. Whenever the system is not able to find a cost center entered for this expense account it will default from this OKB9 settings.
Cost elements classify an organization's valued consumption of production factors within a controlling area. They provide information concerning the value flow and value consumption within the organization. A cost element corresponds to a cost-relevant item in the chart of accounts.
CO object is the cost element(GL account defined as a cost element). U need to assign cost element with cost centre in tcode OKP9.
First identify GL account which you have assigned in OBYC . then go to FS00 and enter your account no. and press on Edit Cost Element in that there is 3rd tab page Default account assignment there give cost center and save it. Now try once again.
Account assignment is used in Sap Fico if you frequently use the same broad account assignments, such as a distribution of amounts to several company codes, accounts, or cost centers, you can use the account assignment model method to save input time and avoid input errors.
SAP activity type is the classification of activities that are produced in cost centers in a controlling area. It is an organization unit within a controlling area. SAP activity types are used to allocate internal activities cost which are incurred by specific cost center.
Costs are debited to products when they use the activities of the Cost Center. In Cost Center Accounting, to plan and allocate the activities, the system records quantities that are measured in activity units. Each activity in a Cost Center contains activity types and the costs can be allocated to these activity types.
Activity Type Rates are used to value internal activities to produce products. If you manually entered activity rates based on last year's actual values instead of planning total dollars and units.
Step 1: – Enter transaction code SPRO in the command field and enter.
- Step 2: – In customizing execute project screen select SAP Reference IMG.
- Step 3: – In next screen, follow the path and double click on create activity types.
- On the choose activity screen, select create activity type.
- Enter your controlling key.
Profit Center: A unit of an organization that generates both revenue and expenses. The difference between a Cost Center and a Profit Center is that the Cost Center represents individual costs incurred during a given period and Profit Centers contain the balances of costs and revenues.
How to create a new COST CENTER: SAP KS01
- Step 1) To create a Cost Center , Enter KS01 into SAP transaction code box.
- Step 3) Click Master Data Button.
- Step 6) On the Control tab select the appropriate indicators.
- Step 1) Enter Transaction Code KSH1 in the SAP Command Field.
- Step 2) In the next screen , Enter the Cost Center Group ID to be created.
You can make the following assignments to profit centers:
- Assigning Sales Orders.
- Assigning Manufacturing Orders (including production orders, CO production orders and process orders)
- Assignment of Cost Objects.
- Assignment of Cost Centers.
- Assignment of Internal Orders.
- Assignment of Business Processes.
To find a cost center balance, use the departmental reporting tree by entering transaction code FMRA in the menu box and selecting the RECONCILIATION (DETAIL), COST CENTER: ACTUAL LINE ITEMS (see screen view below). You can also use the SAP shortcut of KSB1 to get to Display Actual Cost Line Items for Cost Center.
Cost center in SAP is a location where the costs are occurred inside the organization. In SAP cost center is the lowest organizational unit in controlling enterprise structure. Cost centers are responsibility areas for costs within organization and used to capture actual costs of an organization.
Cost center has an assignment of Company code and hence you can't have 1 cost center for more than 1 company code though both are under same controlling area.
Go to SPRO → SAP Reference IMG → Controlling → Profit Center Accounting → Assignments of Account Assignment objects to Profit Center → Assign Cost Centers → Execute. Enter the Cost center to be assigned to the Profit center.
1 Answer. Dear Srina, In every cost object profit center is not mandatory, profit center is itself a cost object but not real in nature. For profit center wise reporting only in other cost objects profit center needs to update, this is business decision.
5 Answers
- First create a Cost centre using T code KS01.
- Create Activity Type using T code KL01.
- Assigning Rate's to Activity Types to Cost centre using T. code KP26.In the input screen assign the periods properly for.
- Once all this settings are done,then assign the cost centre.
Activity types are objects that classify the activities performed at cost centers, such as machine hours, consulting hours, or units produced. To enable activities to be planned and allocated, quantities of output are measured in defined activity units.
The Maintenance Activity Types allow you to define the level of detail of your maintenance tasks. The maintenance activity types are stored in the header of each maintenance order. The maintenance activity types are used in the PM Information System as a grouping element for maintenance orders.
Five Steps to Understand Product Costing in SAP FICO
- Step #1: Cost Center Planning. Cost center planning is the elementary step in understanding product costing.
- Prerequisites: Company codes and plants in organizational structure are planned.
- Step #2: Activity Rate Calculation.
- Pre-requisites:
- Pre-requisites:
- Step #4: Costing Run.
- Pre-requisites:
- Step #5: Actual Cost.
Because there are two different costs for the same activity, this would not be a function. The activity type would be the input and the cost would be the output. Because there are two different costs for the same activity, this would not be a function.
Step 1 : – Enter SAP transaction code “KA06” in the SAP command field and enter. Step 2 : – Now update the controlling area key for which you like to create secondary cost elements in SAP. Step 3 : – On create cost element initial screen, update the following details.
