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SAP will display a notice, click on Enter to continue.

A message change have been saved will be displayed in the status bar. Click on the back arrow
to move back to the Order Detail Screen.
On the Order Detail Screen, maintain the fields as shown below. Next Click on Save

A message is displayed in the status bar Data saved.

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Step 12 Create Primary Cost Element Groups
Cost Elements with similar characteristics can be grouped together in Cost Element
Groups.
You can use Cost Element Groups in the Information System, for example, via the Cost
Element Group structure you can define the row structure of your reports. Total operations
take place per node in the report.
You can use Cost Element Groups whenever you want to process several cost elements in one
operation (e.g. in Cost Center Planning or in Distribution and Assessment).
Example 1
You are planning personnel cost and want to display and plan all personnel cost in one operation.
You do so by using the personnel Cost Element Group.
Example 2
You want to allocate operating supply cost using assessment and to process these cost elements
in one operation. You can do so by selecting the group Operating Supplies.
Menu Path:
SAP IMG > Controlling > Cost Element Accounting > Master data > Cost Elements > Create
Cost Elements Group ( click on )

On the pop up window, double click on Create Cost Element Group

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If the Set Controlling Area window pops up, enter your controlling area identifier and press enter
to continue.

On the new screen enter a logical name for your Cost Element Group Structure and click on enter
to move to the next screen. (Note: The name can only be 10 Characters in Length)

Since the Structure Name can only be 10 character long, here you enter a detailed description for
it. Once you have done this click on Lower Level button to create a lower level node. You can
either have your Primary Cost Elements grouped under this node Or you can have more lower
level nodes. The structure depends on how much detail you want to plan your cost.

Once you have named your new node and provided a detail description, click on Cost Element
button to define the range of Primary Cost Elements you want to associate with this node.

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On the first field in the first column enter the beginning number of your Primary Cost Element and
in the first field of the second column enter the ending number of your Primary Cost Element and
then click on enter.

SAP will validate your selected range of Primary Cost Elements by displaying more detail about
them. If everything seems to be in order and if you do not want to create more nodes/range you
can click on SAVE and exit. Otherwise click on the MINUS sign ( - ) to close details of your node
and then click on Same Level button

Click on node to select

it before you click on
Same Level button

Type in a logical name and a detailed description for your new node and repeat the steps from
above until you finish the whole structure.

then click on SAVE.

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SAP will display a message that changes have been saved
Step 13 Create Secondary Cost Element
Primary Cost Elements in the CO Application Component corresponds to the Profit & Loss
accounts in Financial Application Component. Whereas Secondary Cost Elements exist
only in CO and have no equivalent in FI.
Secondary are used strictly for internal CO postings like assessments and settlements.
Menu Path:
SAP IMG > Controlling > Cost Element Accounting > Master data > Cost Elements > Create
Cost Elements ( click on )

On the pop up screen double click on Create Secondary Cost Element

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On the new screen enter a logical name to identify your Secondary Cost Element and the valid
from date and then click on Master Data to continue.

It is better to have the

starting date as the
first day of the year.

Under the Basic Data Tab, on the Names section, fill in the logical name of your Secondary Cost
Elements and its detailed description.
On the Basic data section, it is mandatory to fill in the category for Secondary Cost Element.
Select 21 as your category now. Click on SAVE.

SAP will display a message that Cost elements has been created
Step 14 Maintain Allocation Structure
Definition 1
The Allocation structure defines the What and How of the settlement process. It is the main
component of the settlement profile. And it is purpose is two fold.
To define which cost elements on the order can be settled. This group of cost elements is
called the origin.
To determine which cost elements, called the Settlement Cost Elements will be used to
debit and credit the sending order and the receiving objects.

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Definition 2
Allocation Structure serves to settle cost occurring on a center to various receivers
according to Cost Element Group. The settlement assignment sets the assignment of cost
element to a settlement cost element.
Multiple assignments are combined in allocation structure.
An allocation structure must meet the following criteria.
Completeness - to ensure orderly settlement, all cost elements under which
cost occurs must be represented in a settlement structure
Uniqueness A cost element may appear only once in an allocation
structure.
Menu Path:
SAP IMG > Controlling > Internal Orders > Actual Postings > Settlements > Maintain Allocation
Structures (click on )

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Notice that on the left panel, under dialog structure Allocation Structure is already highlighted.
Click on New Entries

On the next screen enter a two character identifier and a detailed description for the structure and
click on SAVE

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On the customizing request screen, click on enter to continue.

SAP will display a message in the status bar that data was saved.

SAP will bring you back to the Overview Screen. First highlight the Allocation Structure by
clicking in the first narrow column and double clicking on Assignments folder to open.

On the next screen click on New Entries

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For the field Assignment enter a 3 character identifier and for Text enter a detailed description,
then click SAVE

SAP will display a message Data Saved, and automatically bring you back to the overview
screen. First highlight the assignment you just created, then double click on the folder Source

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On the next screen you can either use a range of Primary Cost Elements OR a Primary Cost
Element Group. However, you cannot use both criteria. Maintain the fields and click on SAVE.

Either you can define a

range of Primary Cost
Element

Or use a Primary
Cost Element

SAP will confirm in the status bar that data was saved.

Click on Back Arrow button to go back to the Overview Screen

On the Overview Screen double click on Settlement Cost Elements folder to open.

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A warning will appear in the status bar that no matching entries were found, click on enter to
bypass this warning. Click on New Entries

Maintain the Receiver cat. Field with CTR (Cost Center) and maintain the Settlement Cost
elem. with your secondary cost element. Next click on SAVE

SAP will confirm in the status bar that Data was saved.

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Step 15 Maintain Number ranges for settlement documents
Menu Path:
SAP IMG > Controlling > Internal Orders > Actual Postings > Settlements > Maintain Number
ranges for Settlement documents (click on )

Click on

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On the new screen, at the Not assigned section, double click on your controlling area.
Put a check mark on Standard accounting document and then click on Element Group

Double click
until it turns

SAP will move your controlling area under the Standard accounting document. Next click SAVE.

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Step 16 Creating an Order
Menu Path:
SAP Main screen > Accounting > Controlling > Internal Orders > Master Data > Special Function
> Order > Create (double click)

Select your Order Type from the possible entries push button. Click on Master data

If a pop-up screen asks for your controlling area, enter your Controlling area, then click on enter
to continue. On the new screen, enter a detailed description for the field Short text. Next, click
on Settlement rule.

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Step 17 Post actual cost to Internal Orders
Menu Path:
SAP Main screen > Accounting > Financial Accounting > General Ledger > Document Entry >
Enter G/L Account Document (double click)

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Step 18 Check the balance of the Order
Menu Path:
SAP Main screen > Accounting > Controlling > Internal Orders > Master Data > Special Functions
> Order > Display (double click)

On the new screen, enter your order number, then click on Master data
Screen shot
Go to menu bar, click on Extras, and select Order balance
Screen shot

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Step 19 Settle an Internal Order
Menu Path:
SAP Main screen > Accounting > Controlling > Internal Orders > Period-End-Closing > Single
Functions > Settlement > Individual Processing (double click)

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