Reflecting Your Business in CO
R
 SAP AG
© SAP AG
TACO11
14-1
Exercises
Note:
There may not be sufficient time to work
through all the exercises during the course.
The exercises marked Optional should be seen
as supplementary examples that can be used,
time permitting, during the course. Attendees
can also use these exercises after the course,
to consolidate what they have learned.
R
 SAP AG
© SAP AG
TACO11
14-2
Unit: Reflecting your business in CO
Topic: Organizational units and structures

Identify the basic organizational structures used in CO and understand
the relationship between them.
Each company has a given organizational structure, which must be
reflected in the system. Using the organizational units available in R/3,
you want to define a possible configuration for your company.
1-1
© SAP AG
Think about how your company might best be reflected in the system by using the
organization units explained in this unit. Draw the structure.
TACO11
14-3
Unit: Reflecting your business in CO
Topic: Master Data

Create CO master data.

Use master data groups.
Depending on your interests, you use different application components to
provide certain data. In these components you use master data, to which
you can post, allocate, and plan revenues and costs. You will create
several Overhead Cost Controlling master records for management of
overhead costs.
To show the responsibility for costs, you split your company into different
cost responsibility areas, which are represented by cost centers. If you
also use profit centers, which are profit responsibility areas, you should
assign the cost center to the appropriate profit center.
To determine a quantifiable output of a cost center, you can use activity
types. Only cost centers can produce an activity type. In the planning
menu you will assign the activity types to the appropriate cost center(s).
The activity type master records cannot be used in actual postings until the
assignment step is completed.
To support analysis, you would like to provide some additional
information that is not cost or revenue. To do this, you will use statistical
key figures, which are measurable quantities that can be planned or posted
as actual data on cost centers and internal orders.
In addition to managing costs by organizational units (cost centers), you
also want to manage costs for specific jobs or tasks that are undertaken
internally within your company. You will set up overhead orders to
collect these costs. Like cost centers, you should assign your order to the
appropriate profit center if you use profit centers. The order costs will be
transferred (settled) at the end of the accounting period to the cost center
responsible for the costs.
The first time that you access a Controlling function after logging on
the system, the Set Controlling Area screen is displayed. If this
appears, enter 1000 in the Controlling area field.
© SAP AG
TACO11
14-4
2-1
Create a new cost element.
2-1-1 Create a secondary cost element 6200## in the CO Europe controlling area
(1000). Make sure that the cost element is valid for the entire fiscal year.
Name the cost element DAA Check Assets and assign the cost element
category 43. Save the new cost element.
2-1-2 How can you use this cost element in the system?
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2-2
Create two cost centers in the CO Europe controlling area (1000) and the German
subsidiary company code (1000): an internal service cost center and a production
cost center. Make sure that the cost centers are valid the entire fiscal year and are
assigned to the HAC040 node on the standard hierarchy.
2-2-1 Cost center SERV-##, Group ## Services, is a service cost center
category (H), which will be assigned to the Corporate other business area
(9900) and the Internal Services profit center (1400). Save your cost
center master data.
2-2-2 Cost center PROD-##, Group ## Production, is a production cost center
category (F), which will be assigned to the Mechanical engineering
business area (1000) and the High Speed Pumps profit center (1010).
Save your cost center master data.
2-3
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Create a cost center group to work with your two new cost centers
collectively. Name your cost center group CENTERS-##, with the
description Group ## Cost Centers, and assign your production and
service cost centers (PROD-## and SERV-##). Do not assign your cost
center group to the standard hierarchy.
TACO11
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2-4
Create activity types to describe the productive output of your new service cost
center.
2-4-1 Display activity type 1421 in the system and review the master data
information.
2-4-2 Create activity type REP-##. You may copy from activity type 1421.
Make sure that the activity type is valid for the entire year. This activity
type is for the repairing of your group’s assets, therefore its name and
description is Repair Group ##. The activity type category is manual
entry, manual allocation (1) and the allocation cost element is DAA Repair
Hours (615000).
2-4-3 Create activity type CHK-##. You may copy from activity type 1421.
Make sure that the activity type is valid for the entire year. This activity
type is for checking your group’s assets, therefore its name and description
is Check Assets Gr ##. The activity type category is manual entry,
manual allocation (1) and the allocation cost element is your new cost
element DAA Check Assets (6200##).
2-5
Create a fixed value statistical key figure EMPL##, Number of Employees to
record the number of employees in your cost centers. Use the unit of measure for
pieces (PC).
2-6
Create an overhead order for detailed controlling of all costs related to a trade fair
in which the service cost center participates. The costs will be settled each
accounting period to this cost center.
2-6-1 Enter the master data information for the trade fair order. Use the Int.
Order – Marketing order type (0400). Name your order Trade Fair
Group ## and assign it to the Corporate other business area (9900) and
Internal Services profit center (1400). Identify your services cost center
(SERV-##) as the responsible cost center. Do NOT save your order yet.
2-6-2 Create a periodic settlement rule to settle 100% of the actual costs to your
services cost center (SERV-##). Save the order. Record the order number
and copy it to your Data sheet.
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© SAP AG
TACO11
14-6
Solutions
R
 SAP AG
© SAP AG
TACO11
14-7
Unit: Reflecting your business in CO
Topic: Organizational units and structures

Identify the basic organizational structures used in CO and understand
the relationship between them.
Each company has a given organizational structure, which must be
reflected in the system. Using the organizational units available in R/3,
you want to define a possible configuration for your company.
1-1
Think about how your company might best be reflected in the system by using the
organization units explained in this unit. Draw the structure.
Responses will vary.
© SAP AG
TACO11
14-8
Unit: Reflecting your business in CO
Topic: Master Data

Create CO master data.

Use master data groups.
Depending on your interests, you use different application components to
provide certain data. In these components you use master data, to which
you can post, allocate, and plan revenues and costs. You will create
several Overhead Cost Controlling master records for management of
overhead costs.
To show the responsibility for costs, you split your company into different
cost responsibility areas, which are represented by cost centers. If you
also use profit centers, which are profit responsibility areas, you should
assign the cost center to the appropriate profit center.
To determine a quantifiable output of a cost center, you can use activity
types. Only cost centers can produce an activity type. In the planning
menu you will assign the activity types to the appropriate cost center(s).
The activity type master records cannot be used in actual postings until the
assignment step is completed.
To support analysis, you would like to provide some additional
information that is not cost or revenue. To do this, you will use statistical
key figures, which are measurable quantities that can be planned or posted
as actual data on cost centers and internal orders.
In addition to managing costs by organizational units (cost centers), you
also want to manage costs for specific jobs or tasks that are undertaken
internally within your company. You will set up overhead orders to
collect these costs. Like cost centers, you should assign your order to the
appropriate profit center if you use profit centers. The order costs will be
transferred (settled) at the end of the accounting period to the cost center
responsible for the costs.
The first time that you access a Controlling function after logging on
the system, the Set Controlling Area screen is displayed. If this
appears, enter 1000 in the Controlling area field.
© SAP AG
TACO11
14-9
2-1
Create a new cost element.
2-1-1 Create a secondary cost element 6200## in the CO Europe controlling area
(1000). Make sure that the cost element is valid for the entire fiscal year.
Name the cost element DAA Check Assets and assign the cost element
category 43. Save the new cost element.
Menu path:
AccountingControllingCost CentersMaster dataCost
elementIndividual processingCreate secondary
Enter 6200## in the Cost element field.
Enter the first day of the current fiscal year in the Valid from field.
Enter the last day of the current fiscal year in the To field.
Select Basic screen.
Enter DAA Check Assets in the Name field.
Enter 43 in the CElem category field.
Select Save.
2-1-2 How can you use this cost element in the system?
By defining the cost element as a cost element category 43, you determined that
it will be used for internal activity allocations. Internal activity allocations
result in the flow of costs from a cost center to other controlling objects (cost
centers, overhead orders, production orders, and so on) based on the number of
units of activity provided by the sender to the receiver. The allocated costs are
posted using this type of cost element.
2-2
Create two cost centers in the CO Europe controlling area (1000) and the German
subsidiary company code (1000): an internal service cost center and a production
cost center. Make sure that the cost centers are valid the entire fiscal year and are
assigned to the HAC040 node on the standard hierarchy.
2-2-1 Cost center SERV-##, Group ## Services, is a service cost center
category (H), which will be assigned to the Corporate other business area
(9900) and the Internal Services profit center (1400). Save your cost
center master data.
Menu path:
AccountingControllingCost centersMaster dataCost
centerIndividual processingCreate
Enter SERV-## in the Cost center field.
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TACO11
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Enter the first day of the current fiscal year in the Valid from field.
Enter the last day of the current fiscal year in the To field.
Select Basic screen.
Enter Group ## Services in the Name field.
Enter any name in the Person responsible field.
Enter H in the Cost center category field.
Enter HAC040 in the Hierarchy area field.
Enter 1000 in the Company code field.
Enter 9900 in the Business area field.
Enter 1400 in the Profit center field.
Select Save.
Remain in the Create Cost Center: Initial screen for the next exercise.
2-2-2 Cost center PROD-##, Group ## Production, is a production cost center
category (F), which will be assigned to the Mechanical engineering
business area (1000) and the High Speed Pumps profit center (1010).
Save your cost center master data.
Enter PROD-## in the Cost center field.
Select Basic screen. (Validity periods should remain from the first cost center.)
Enter Group ## Production in the Name field.
Enter any name in the Person responsible field.
Enter F in the Cost center category field.
Enter HAC040 in the Hierarchy area field.
Enter 1000 in the Company code field.
Enter 1000 in the Business area field.
Enter 1010 in the Profit center field.
Select Save.
© SAP AG
TACO11
14-11
2-3
Create a cost center group to work with your two new cost centers collectively.
Name your cost center group CENTERS-##, with the description Group ## Cost
Centers, and assign your production and service cost centers (PROD-## and
SERV-##). Do not assign your cost center group to the standard hierarchy.
Menu path:
AccountingControllingCost centersMaster dataCost center groupCreate
Enter CENTERS-## in the Cost center group field.
Select Enter.
Enter Group ## Cost Centers in the description field.
Select Insert values.
Enter both PROD-## and SERV-## in the left column.
Select Save.
2-4
Create activity types to describe the productive output of your new service cost
center.
2-4-1 Display activity type 1421 in the system and review the master data
information.
Menu path:
AccountingControllingCost centersMaster dataActivity
typeIndividual processingDisplay
Enter 1421 in the Activity type field.
Select Basic Screen.
Review the master data information.
2-4-2 Create activity type REP-##. You may copy from activity type 1421.
Make sure that the activity type is valid for the entire year. This activity
type is for the repairing of your group’s assets, therefore its name and
description is Repair Group ##. The activity type category is manual
entry, manual allocation (1) and the allocation cost element is DAA Repair
Hours (615000).
Menu path:
AccountingControllingCost centersMaster dataActivity
typeIndividual processingCreate
Enter REP-## in the Activity type field.
© SAP AG
TACO11
14-12
Enter the first day of the current fiscal year in the Valid from field.
Enter the last day of the current fiscal year in the To field.
Enter 1421 in the Copy from Activity type field.
Select Basic Screen.
Enter Repair Group ## in the Name and Description fields.
Verify that the ATyp category is 1.
Enter 615000 in the Alloc. cost element.
Select Save.
Remain in the Create Activity Type: Initial screen for the next exercise.
2-4-3 Create activity type CHK-##. You may copy from activity type 1421.
Make sure that the activity type is valid for the entire year. This activity
type is for checking your group’s assets, therefore its name and description
is Check Assets Gr ##. The activity type category is manual entry,
manual allocation (1) and the allocation cost element is your new cost
element DAA Check Assets (6200##).
Enter CHK-## in the Activity type field.
Enter the first day of the current fiscal year in the Valid from field.
Enter the last day of the current fiscal year in the To field.
Enter 1421 in the Copy from Activity type field.
Select Basic Screen.
Enter Check Assets Gr ## in the Name and Description fields.
Verify that the ATyp category is 1.
Enter 6200## in the Alloc. cost element.
Select Save.
© SAP AG
TACO11
14-13
2-5
Create a fixed value statistical key figure EMPL##, Number of Employees to
record the number of employees in your cost centers. Use the unit of measure for
pieces (PC).
Menu path:
AccountingControllingCost centersMaster dataStatistical key
figuresIndividual processingCreate
Enter EMPL## in the Stat. key figure field.
Select Master data.
Enter Number of Employees in the Name field.
Enter PC in the Stat. key fig. UnM. field.
(The setting should default to fixed value.)
Select Save.
2-6
Create an overhead order for detailed controlling of all costs related to a trade fair
in which the service cost center participates. The costs will be settled each
accounting period to this cost center.
2-6-1 Enter the master data information for the trade fair order. Use the Int.
Order – Marketing order type (0400). Name your order Trade Fair
Group ## and assign it to the Corporate other business area (9900) and
Internal Services profit center (1400). Identify your services cost center
(SERV-##) as the responsible cost center. Do NOT save your order yet.
Menu path:
AccountingControllingOrdersMaster dataOrderCreate
Enter 0400 in the Order type field.
Select Master data.
Enter Trade Fair Group ## in the Short text field.
Enter 9900 in the Business area field.
Enter 1400 in the Profit center field.
Enter SERV-## in the Responsible CCtr field.
Do NOT Save the order master record.
© SAP AG
TACO11
14-14
2-6-2 Create a periodic settlement rule to settle 100% of the actual costs to your
services cost center (SERV-##). Save the order. Record the order number
and copy it to your Data sheet.
Select Settlement rule.
Enter CTR in the Cat. field.
Enter SERV-## in the Receiver field.
Enter 100 in the Percent field.
Enter PER in the Settle (Settlement type) field.
Select Save.
Record the order number.
© SAP AG
TACO11
14-15