Controlling Configuration Document

SAP Controlling Simplified

By
Mohammed Rashid
SAP Consultant

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 Controlling Configuration Document

Controlling Module:

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 Controlling Configuration Document

Organizational Structure:

Operating Concern: it is the highest node in Controlling Module. It collects the sales and
marketing information. Example Sales Contribution Report at Market Segment level i.e
Product, Customer. This is required only when COPA is implemented otherwise not
required.

Controlling Area: It records and analyses the overhead related activities, product costing
and Profit Center related activities.

We can assign “n” number of controlling areas to Operating Concern subject to following
Condition in Controlling.
 Fiscal Year Variant Should be identical between Controlling Area and Operating
Concern.
Company Code: it is a legal entity responsible for preparing financial statements i.e
Balance Sheet, Income Statement and Cash Flow statement and to maintain book keeping

We can assign “n” of company codes to Controlling area subject to following conditions.
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 Controlling Configuration Document

 Chart of accounts should be same between company code and controlling area.
 Fiscal Year Variant should be same between means.
1. Number of normal periods should be same
2. Starting period and ending period should be same
3. Starting date and ending date should be same.

Benefits of using “Cross Company Code Controlling Area”

 Cross Company Code Transactions for reallocation of costs across the company
codes within controlling area
 Partner product costing for group costing
 Transfer Price

Cost Centers: This is used to activate Cost Center Accounting.

AA: Activity Type

This allows you to enter an activity type when creating a posting in Financial Accounting
with a cost center assignment.

Order Management: if want to use internal orders then activate it.

Commit. Management

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 Controlling Configuration Document

This is used to activate commitments on controlling objects. When someone creates a

purchase order and assigns this purchase order to a cost center or internal order, you can
see the value of the purchase order as a commitment on the controlling object.

Profit. Analysis
This can be activated only when the controlling area is assigned to an operating concern.

Acty-Based Costing
This is used to activate activity-based costing, which is based on identified activities within
a company and assigns all costs to those
activities.

Profit Center Acctg. (Classical)

This is used to activate the classic Profit Center Accounting. With the introduction of New
General, profit center accounting become part of FI. If you want to use New GL Profit
center Accounting, you should not select this indicator.

Projects: Activate if you want use Project Systems.

Sales Orders: This should be activated if you work with sales order stock. i.e MTO
Scenario

W. Commit. Mgt. (with Commitments Management)

If this is activated, the system creates a commitment when someone creates a sales order
with an assignment to a cost object. The commitment is shown on the cost object until the
sales order is billed.

Cost Objects
This is used to activate Cost Object Controlling means
 Product Cost by Order
 Product Cost by Period
 Process Order…

All Currencies: If it’s activated, the system will update CO values in the transaction
currency and the object currency. If it’s inactive, only the controlling area currency is used
to update CO values. Be very careful with this indicator.

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 Controlling Configuration Document

Company Code Validation: if select this system will post the entries in both the company
codes.

Example:

Company Code Cost Center

1000 1000-1
2000 2000-1

Company Code 1000 issued the goods to Cost Center 2000-1 of Company Code 2000

If this indicator is active, System will post the entries like below
1000 Company Code books 2000 Company Code Books
Inter Company 2000 Clearing A/c Dr Material Consumption A/c Dr
To Inventory A/c Cr To Inter Company 2000 Clearing A/c Dr

If not selected, system will post the entries like below.

1000 Company Code books 2000 Company Code Books
Material Consumption A/c Dr No Entry
To Inventory A/c Cr

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 Controlling Configuration Document

Cost Element Categories

Primary Cost Element Categories:

01-Primary Cost Element: All Expenditure GL Accounts are created as Primary

Cost Element other than
1. Work in Progress
2. Production Variances
3. Sales Expenditure (covered in 12)
Example:
 Salary A/c
 Rent A/c
 Travelling Expenses A/c
 Staff Welfare Expenses A/c

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 Controlling Configuration Document

12 -Sales Deduction: Used for Sales Expenditure GL Accounts.

Example:
 Sales Discount
 Rebate
 Sales Commission
 Special Discount etc

If you don’t select Category -12 for Sales Expenditure you can’t be able to transfer this
expenditure to COPA

22- External Settlement: it is used for transferring cost from CO To FI

Example: Construction of Asset:

FI INTERNAL ORDER
Asset Posting to Asset Purchased Cost
AUC/ ASSET IN FI
Internal Order loading unloading,
Transportation etc

11- Revenue Element: it is used for all income / sales related GL Account

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 Controlling Configuration Document

Secondary Cost Element Categories:

21-Internal Settlement: it is used for settlement of Order to other Cost Objects

within Controlling

31-Result Analysis Cost Element: it is required for calculation of

 Work in Progress or
 Cost of Sales or
 Calculated Revenue or the Result

41-Overhead Cost Element: it is used in Product Costing for charging indirect

overhead to product through Costing Sheet.

42-Assessment Cost Element: it is used for transferring cost from

 One Cost Center to another Cost Center
 Cost Center to Profitability Segment

Example:
Canteen Cost Center Expenses at the month end transferred to other Cost Center based on
service provided.

Selling and Marketing Expenses at the month end will be transferred to Profitability
Segment since it not charged to product

43- Internal Activity Cost Element: it is used for charging Production Cost
Center Direct Cost to Production Order based on activity Consumption i.e. Confirmation of
activities like labor, direct overheads etc.

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 Controlling Configuration Document

Maintain Number Ranges for Controlling Documents - TC - KANK

IMG-->Controlling-->General Controlling-->Organization-->Maintain Number Ranges for
Controlling Documents

Primary 200000 299999

Secondary 300000 399999

Planning 400000 499999

CO area =
Click on "(Maintain) Groups",
From Menu, Group, Insert
Text = Primary
From Number =
To = Press Enter & Save

From Menu, Group, Insert

Text = Secondary
From Number =
To = Press Enter & Save

From Menu, Group, Insert

Text = Planning
From Number =
To = Press Enter & Save

Move Below to New Groups :

COIN”, --- Primary
“RKIU” --- Secondary
“RKP1" ---Planning
"RKU1” ---- Secondary
“RKU3”----- Secondary
Click on Save

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 Controlling Configuration Document

Versions

Version ‘O’:
 Version ‘O’ is given by SAP for storing Actual as well as Planned Data.
 Version is always year dependent.
 Version ‘O’ always represent legal valuation.
 We can create ‘n’ number of versions for planning purpose.
 Actual Value always stored in Version O only not possible to store other than this
version.
 We Can settle Version O Values to Financial Accounting i.e WIP, Variance from
Product Costing

Versions

Planning Price Calculation

Plan Method Actual Method Revaluation

Periodic Average Periodic Average Cumulative Do not Own Original

Revaluate Business Business
Transaction Transaction

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 Controlling Configuration Document

Price Calculation:

Activity Periodic Price

Period Cost [Link] [Link]
in Hours Per Hour
Cumulative
Price

Period 1 10000 100 100.00 10000 100 100.00

Period 2 10500 150 70.00 20500 250 82.00

Period 3 11000 200 55.00 31500 450 70.00

Period 4 11500 250 46.00 43000 700 61.43

Period 5 12000 300 40.00 55000 1000 55.00

Period 6 12500 350 35.71 67500 1350 50.00

Period 7 13000 400 32.50 80500 1750 46.00

Period 8 13500 450 30.00 94000 2200 42.73

Period 9 14000 500 28.00 108000 2700 40.00

Period 10 14500 550 26.36 122500 3250 37.69

Period 11 15000 600 25.00 137500 3850 35.71

Period 12 15500 650 23.85 153000 4500 34.00

153000 4500

A B

Average Price A/B 34.00

11.3 Maintain versions -TC - OKEQ

IMG-->Controlling-->General Controlling-->Organization-->Maintain Versions
Select Version “O”,
Ensure Plan, Actual, WIP/RA and Variance are selected.

Double Click "Settings for each Fiscal Year"

CO Area = Press Enter and Save

Click on “Details Button”

Select ‘Integrated Planning’ Check Box
Select ‘Copying Allowed’ Check Box
Exchange Rate Type =
Value Date =

Click on “Price Calculations”

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 Controlling Configuration Document

Plant -Method =
Actual Methods =
Revaluation = Click on Save

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Faculty: Mohammed Rashid Email: [Link]@[Link]