Contrlloing Settings 1

User Manual SAP R/3 Enterprise Implementation Project
CONFIGURATION MANUAL
(SAP R/3 Version ECC6.0)
CONTROLLING
Prepared By Approved By
P.Ravishankar K.Viswanathan
SAP FICO Consultants. Project Manager
Info vista Technology Info vista Technology
Confidential User manual Page 1 of 27

INDEX
1. Define Controlling area..........................................................................................................3

Maintain controlling area.......................................................................................................3
1.2 Activate components........................................................................................................5
1.3 Assignment of company code to controlling area............................................................6
1.4 Define number ranges for controlling documents............................................................7
1.5 Maintain versions.............................................................................................................8
1.6 Defining operating concern .............................................................................................8
2. Cost element group ..............................................................................................................10
3. Costing sheet configuration..................................................................................................12
3.1 Define cost component structure....................................................................................12
3.2 Define cost sheet............................................................................................................21
4. Costing run...........................................................................................................................26
4.1 Define a costing run.......................................................................................................26

1. Define Controlling area

SAP calls managerial accounting as controlling. The module is commonly known as CO.
The controlling area is the central organization in controlling , structuring the internal
accounting operations. In CHOICE we have defined controlling area as CTC
Maintain controlling area

The controlling area is the central organizational structure in Controlling and is used in cost
accounting. The controlling area just like a company code is a self contained cost accounting
entity for internal reporting purpose. The controlling area is assigned to one or more
company codes so as to ensure that the necessary transactions posted to FI , are transferred to
controlling for cost accounting purpose.
This is the initial screen for controlling.
Transaction
Code
Menu Accounting > Financial Accounting > Controlling
In order to maintain controlling area, we have to follow the menu path

Transaction
Code
Menu Accounting > Financial Accounting > controlling >
Organization > Maintain controlling area

1.2 Activate components
On entering the controlling area, click on the activate components , wherein you will get the
following screen.
It should be configured as per the above.

On clicking the assignment of company code the following screen is displayed. Here you
assign the company code
1.3 Assignment of company code to controlling area

1.4 Define number ranges for controlling documents

Transaction
Code
General controlling > Organization > Maintain
number ranges for controlling documents
Then we maintain document number ranges for the controlling documents

1.5 Maintain versions

Transaction
Code
General controlling > Organization > Maintain
versions
We have to maintain plan version for the controlling area.
1.6 Defining operating concern
The menu path

Transaction
Code
Profitability analysis > Structure > Define operating
concern > Maintain operating concern
The operating concern is the top most reporting level for profitability analysis and sales &
marketing controlling. We have defined the operating concern as CISS for CHOICE.
The main screen will be displayed as follows;

2. Cost element group

The grouping of cost elements of the same type so as to help in reporting or processing more
than one cost element in a single business transactions.
We have to define cost element group
The screen is as follows
The menu path is
Transaction
Code
Cost element accounting > Master data > Cost
elements > cost element groups
This is the groups created for CHOICE.
This is the cost element group structure


3. Costing sheet configuration
3.1 Define cost component structure

The cost component structure groups the various cost elements into cost components to show
the activity price of an activity type, to arrive at the cost of process and to calculate the
planned cost of a product.
Transaction OKTZ
Code
Menu Accounting > controlling > Product cost planning >
Basic settings for material costing > Define cost
component structure
We have defined Z8 as SFD cost component & Z9 for PFD cost component for
CHOICE.

When you select the structure SFD cost component & then click Assignment cost
component – cost element interval., you will find the list of all GL accounts set up for the
preparation of cost sheet.

In the screen mentioned below we define cost component structure with attributes. This is
done by clicking the cost component structure with attributes icon with the name specified .
We have defined Z8 as SFD cost component & Z9 for PFD cost component.
The following screen is displayed as below. You will find the structure displaying all the cost
components for costing.

When you select Z8 ( Raw material & Semi – finished goods ) & then click Assignment cost
component – Cost element interval , you will find the GL accounts related to raw material
assigned to the cost component structure.

When you select Z8 ( Packing material ) & then click Assignment cost component – Cost
element interval , you will find the GL accounts related to packing material assigned to the
cost component structure.

When you select Z8 ( Material overhead ) & then click Assignment cost component – Cost
element interval , you will find the GL accounts related to material overhead assigned to the
cost component structure. Here you will be assigning a Secondary cost element as 800001
to 800013.

When you select Z8 ( Production overhead ) & then click Assignment cost component –
Cost element interval , you will find the GL accounts related to production overhead
assigned to the cost component structure. We have defined the production overhead as
404004.

When you select Z8 ( Other costs ) & then click Assignment cost component – Cost
element interval , you will find the GL accounts related to other costs assigned to the cost
component structure. We have defined the production overhead as 498011.

Cost component groups.

Z8 & Z9 has been defined as cost component groups.
This can be viewed by clicking Z8 & the cost component groups.

3.2 Define cost sheet
Here we now define the costing sheet. Menu path
Transaction
Code
Basic settings for material costing > Overhead >
Define costing sheets
This is the initial screen of the costing sheet. We have defined as ZPFD & ZSFD as costing
sheet for PFD & SFD respectively.

Costing sheet rows
In order to view the costing sheet rows you have to select the costing sheet & then click
costing sheet rows. The costing sheet is built on these 3 fields.
Base – Z912 , Z911
Overhead- Z913 , Z915
Credit – Z01,Z02

Here the base is defined by giving the basic raw materials GL head involved in the relevant
cost elements column. Here we have defined Z912.

The over head rate is defined as a percentage on the basic cost of raw material @ 6%to
arrive at the material overhead.
We have defined the material overhead as Z913.

Credit ; You have defined a percentage of 6% for material overhead of basic raw material &
wages which has to credited back to production overhead & this is defined in Credit .

4. Costing run
4.1 Define a costing run
Transaction Ck40n
Code
Material costing > Costing run > CK40n edit costing
run
The costing run is mainly done to arrive at the planned cost of a finished product. You have
to create a costing run with a run date preferably on a month end date to update the planned
cost in the material master which can be viewed in MM03.(Costing View).
The following are steps involved in the costing run.
1. Selection
2. Structural explosion
3. Costing
4. Analysis
5. Marking
6. Release

Details of the steps involved in the costing run.
1. Selection - You are given the option of selecting the material to be costed & in this
step you will decide which or all the materials required for a planned cost.
2. Structural explosion – In this step the system checks for all the materials which is in
Bill of Material (BOM), for the purpose of costing.
3. Costing – The system does the costing based on the sequence of the costing sheet
configured.
4. Analysis – An analysis is made available to view the planned cost of the finished
goods selected along with the details of the cost structure.
5. Marking – The system will mark the planned cost of the material required to be costed
based on your selection.
6. Release – The system will release the planned cost of the material to be costed & gets
updated in the material master costing view.

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User Manual SAP R/3 Enterprise Implementation Project

(SAP R/3 Version ECC6.0)

Confidential User manual Page 1 of 27

1. Define Controlling area..........................................................................................................3

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1. Define Controlling area

Maintain controlling area

In order to maintain controlling area, we have to follow the menu path

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1.2 Activate components

It should be configured as per the above.

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1.3 Assignment of company code to controlling area

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1.4 Define number ranges for controlling documents

Then we maintain document number ranges for the controlling documents

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1.5 Maintain versions

We have to maintain plan version for the controlling area.

1.6 Defining operating concern

The menu path

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The main screen will be displayed as follows;

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2. Cost element group

This is the groups created for CHOICE.

This is the cost element group structure

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3. Costing sheet configuration

3.1 Define cost component structure

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Cost component groups.

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3.2 Define cost sheet

Here we now define the costing sheet. Menu path

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Costing sheet rows

Base – Z912 , Z911

Overhead- Z913 , Z915

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4.1 Define a costing run

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Details of the steps involved in the costing run.

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