Blake's SAP FICO 67-83 Document

**SAP PM Prerequisite Modules** - Navigational Tutorial and Resources Links
Module	Module Name	Links	Links	Blake's Links
PM	Plant Mantenance	tutorials point		Blake
MM	Material Management	tutorials point Overview	Guru99	Blake: 1-10 \| 11-20 \| 21-25
SD	Sales and Distribution	tutorials point Tutorial	Guru99	Blake
PP	Production Planning	tutorials point Tutorial	Guru99	Blake \| 1-7
External Links
Google	NewLanguage.html	FICO Module: Blake's 1-28 29-56 57-66 67-83 : Tutorials Point
	Download Info	ABAP Module: Blake's 1-18 19-36 37-52 : Tutorials Point

**SAP FICO Financial Accounting** - FICO Tutorial and FICO Resources
1	Home	FICO_Doc Tutorials Point	29	Block a Customer	FICO_Doc Tutorials Point	57	Month End Closing	FICO_Doc Tutorials Point
2	Overview	FICO_Doc Tutorials Point	30	Delete a Customer	FICO_Doc Tutorials Point	58	Dunning	FICO_Doc Tutorials Point
3	Submodules	FICO_Doc Tutorials Point	31	Customer Account Group	FICO_Doc Tutorials Point	59	Exchange Rates	FICO_Doc Tutorials Point
4	Company Basics	FICO_Doc Tutorials Point	32	One-Time Customer Master	FICO_Doc Tutorials Point	60	Tables in Module	FICO_Doc Tutorials Point
5	Define Business Area	FICO_Doc Tutorials Point	33	Post a Sales Invoice	FICO_Doc Tutorials Point	61	AR Invoice Processes	FICO_Doc Tutorials Point
6	Define Functional Area	FICO_Doc Tutorials Point	34	Document Reversal	FICO_Doc Tutorials Point	62	AR Account Analysis	FICO_Doc Tutorials Point
7	Define Credit Control	FICO_Doc Tutorials Point	35	Sales Returns	FICO_Doc Tutorials Point	63	AR Reporting	FICO_Doc Tutorials Point
8	General Ledger	FICO_Doc Tutorials Point	36	Post Incoming Payment	FICO_Doc Tutorials Point	64	AA Overview	FICO_Doc Tutorials Point
9	COA Group (Chart of Accts)	FICO_Doc Tutorials Point	37	Foreign Currency Invoice	FICO_Doc Tutorials Point	65	AA Asset Explorer	FICO_Doc Tutorials Point
10	Retained Earnings Account	FICO_Doc Tutorials Point	38	Incoming Partial Payments	FICO_Doc Tutorials Point	66	Cash Management	FICO_Doc Tutorials Point
11	G/L Account	FICO_Doc Tutorials Point	39	Reset AR Cleared Items	FICO_Doc Tutorials Point
12	Block G/L Account	FICO_Doc Tutorials Point	40	Credit Control	FICO_Doc Tutorials Point	67	CO Overview	FICO_Doc Tutorials Point
13	Deleting G/L Accounts	FICO_Doc Tutorials Point	41	Accounts Payable	FICO_Doc Tutorials Point	68	CO Submodules	FICO_Doc Tutorials Point
14	Financial Statement Version	FICO_Doc Tutorials Point	42	Create a Vendor	FICO_Doc Tutorials Point	69	CO Cost Center	FICO_Doc Tutorials Point
15	Journal Entry Posting	FICO_Doc Tutorials Point	43	Create Vendor Account Group	FICO_Doc Tutorials Point	70	CO Create Cost Center	FICO_Doc Tutorials Point
16	Fiscal Year Variant	FICO_Doc Tutorials Point	44	Display Changed Fields	FICO_Doc Tutorials Point	71	CO Post to a Cost Center	FICO_Doc Tutorials Point
17	Posting Period Variant	FICO_Doc Tutorials Point	45	Block a Vendor	FICO_Doc Tutorials Point	72	CO Internal Orders	FICO_Doc Tutorials Point
18	Field Status Variant	FICO_Doc Tutorials Point	46	Delete a Vendor	FICO_Doc Tutorials Point	73	CO Settlement of IO	FICO_Doc Tutorials Point
19	Field Status Group	FICO_Doc Tutorials Point	47	One-Time Vendor	FICO_Doc Tutorials Point	74	CO Profit Center	FICO_Doc Tutorials Point
20	Define Posting Keys	FICO_Doc Tutorials Point	48	Post Purchase Invoice	FICO_Doc Tutorials Point	75	CO Posting to Profit Center	FICO_Doc Tutorials Point
21	Define Document Type	FICO_Doc Tutorials Point	49	Purchase Returns	FICO_Doc Tutorials Point	76	CO Profit Center Standard Heirarchy	FICO_Doc Tutorials Point
22	Document Number Ranges	FICO_Doc Tutorials Point	50	Post Outgoing Vendor Payment	FICO_Doc Tutorials Point	77	CO Assigning Cost to Profit Centers	FICO_Doc Tutorials Point
23	Post with Reference	FICO_Doc Tutorials Point	51	Foreign Currency Invoice	FICO_Doc Tutorials Point	78	CO Assigning Materials to Profit Centers	FICO_Doc Tutorials Point
24	Hold a G/L Document Posting	FICO_Doc Tutorials Point	52	Withholding Tax in vendor invoice	FICO_Doc Tutorials Point	79	CO Tables in Module	FICO_Doc Tutorials Point
25	Park a G/L Document Posting	FICO_Doc Tutorials Point	53	Outgoing Partial Payments	FICO_Doc Tutorials Point	80	CO Product Costing	FICO_Doc Tutorials Point
26	G/L Reporting	FICO_Doc Tutorials Point	54	Reset AP Cleared Items	FICO_Doc Tutorials Point	81	CO Profitability Analysis	FICO_Doc Tutorials Point
27	Accounts Receivable	FICO_Doc Tutorials Point	55	Automatic Payment Run	FICO_Doc Tutorials Point	82	CO Planning Methods	FICO_Doc Tutorials Point
28	Customer Master Data	FICO_Doc Tutorials Point	56	Posting Rounding Differences	FICO_Doc Tutorials Point	83	FI - Integration	FICO_Doc Tutorials Point

(FI - 01 Thru 66) and (CO - 67 Thru 83)

Top
FI stands for Financial Accounting
- to store the financial data of an organization
- FI has a collection of submodules
  - General Ledger contains all the transaction details of a company
  - Accounts Receivable and Payable (AR / AP), AP includes all the vendor transactions and AR includes all the customer transactions
  - Asset Accounting deals with all the fixed asset of the company
  - Bank Accounting - create and process any type of bank transactions
  - Travel Management is used to manage all the travel expenses of a company
  - Fund Management is used to manage funds in a company
  - Legal Consolidation helps an organization to treat its multiple units as a single company,
    - hence it enables to view all the details as a single financial statement for all the companies under that group.
    - An organization can get a clear idea of its financial conditions as a single entity.
    - Note: − FI-Legal Consolidation module was supported in older versions of SAP ERP implementation.
      - This work is performed by SAP Business Process Consolidation BPC and SEM-BCS now.

CO stands for Controlling
- It supports coordination, monitoring, and optimization of all the processes in an organization.
- involves recording both the consumption of production factors and the services provided by an organization
- SAP CO includes managing and configuring master data that covers cost and profit centers, internal orders, and other cost elements and functional areas.
- The main purpose of SAP controlling module is planning.
  - It enables you to determine variances by comparing actual data with plan data and thus enables you to control business flows in your organization.
- Data flows relevant to cost flows to Controlling from Financial Accounting.
- At the same time, the system assigns the costs and revenues to different CO account assignment objects, such as cost centers, business processes, projects or orders.
- The key submodules of SAP controlling system are:
  - Cost Element Accounting − Cost and Revenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization.
    - Most of the values are moved automatically from Financial Accounting to Controlling.
    - Cost and Revenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting.
  - Cost Center Accounting − Cost Center Accounting is used for controlling purposes within your organization.
  - Activity-Based-Accounting − It is used to analyze cross-departmental business processes.
  - Internal Orders − Internal orders in SAP CO are used to collect and control according to the job that incurred them.
    - You can assign budgets for these jobs that is system monitored to ensure that they are not exceeded from the set budgets.
  - Product Cost Controlling − It calculates the cost for manufacture a product, or to provide a service.
    - It allows you to calculate the price at which you can profitably marketed it.
  - Profitability Analysis − It is used to analyze the profit or loss of an organization by individual market segments.
    - Profitability Analysis provides a basis for decisionmaking.
    - For example, it is used to determine price, conditioning, customer, distribution channel, and market segment.
  - Profit Center Accounting − It is used to evaluate profit or loss of individual, independent areas within an organization.
    - These areas are responsible for their costs and revenues.

(67) CO Overview

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SAP Controlling (CO) is another important SAP module offered to an organization.
It supports coordination, monitoring, and optimization of all the processes in an organization.
SAP CO involves recording both the consumption of production factors and the services provided by an organization.

SAP CO includes managing and configuring master data that covers cost and profit centers, internal orders, and other cost elements and functional areas.

The main purpose of SAP controlling module is planning. It enables you to determine variances by comparing actual data with plan data and thus enables you to control business flows in your organization.

SAP CO Integration with Financial Accounting

Both SAP CO and SAP FI modules are independent components in a SAP system. The data flow between these components takes place on a regular basis.

Data flows relevant to cost flows to Controlling from Financial Accounting.
At the same time, the system assigns the costs and revenues to different CO account assignment objects, such as cost centers, business processes, projects or orders.

(68) CO Submodules

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The key submodules of SAP controlling system are listed below −

Cost Element Accounting − Cost and Revenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization.
Most of the values are moved automatically from Financial Accounting to Controlling.
Cost and Revenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting.
Cost Center Accounting − Cost Center Accounting is used for controlling purposes within your organization.
Activity-Based-Accounting − It is used to analyze cross-departmental business processes.
Internal Orders − Internal orders in SAP CO are used to collect and control according to the job that incurred them.
You can assign budgets for these jobs that is system monitored to ensure that they are not exceeded from the set budgets.
Product Cost Controlling − It calculates the cost for manufacture a product, or to provide a service. It allows you to calculate the price at which you can profitably marketed it.
Profitability Analysis − It is used to analyze the profit or loss of an organization by individual market segments.
Profitability Analysis provides a basis for decisionmaking.
For example, it is used to determine price, conditioning, customer, distribution channel, and market segment.
Profit Center Accounting − It is used to evaluate profit or loss of individual, independent areas within an organization. These areas are responsible for their costs and revenues.

(69) SAP CO - Cost Center

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A Cost Center is defined as a component in an organization that adds to the cost and indirectly adds to the profit of the organization. Examples include Marketing and Customer Service.

A company can classify a business unit in three ways −

Profit center,
Cost center, or
Investment center.

The simple and straightforward division in an organization can be classified as cost center because cost is easy to measure.

Cost Center Hierarchy

The hierarchy of a cost center looks as follows −

(70) CO - Create Cost Center

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To create a cost center, use the T-code KS01.
It will open the following window.

In the next window, enter the following details and click the Master Data.

New cost center number.
Validity dates of the new cost center.

You can also create a new cost center with a reference.

Once you click Master Data, a new window will open. Enter the following details in the basic data tab −

Enter the name of the new cost center.
Enter a description for the new cost center.
Enter the User and Person Responsible.
Cost Center Category.
Hierarchy area.
Company Code.
Profit Center.

Next, click the Control tab and select the correct indicator.

At the end, click the save icon at the top.

(71) SAP CO - Post to a Cost Center

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To post to a cost center, use the T-code FB50. It will take you to the following window.

In this window, you need to enter the following details −

Document date
Company code
G/L Account for the Debit Entry which is to be posted to the Cost Center
Debit Amount
Cost Center in which the Amount is to be posted
G/L Account for Credit Entry
Credit Amount

Click the Save button at the top to post to this cost center.

(72) SAP CO - Internal Orders

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SAP CO internal order monitors the parts of the costs and in a few cases, it also monitors the revenues of the organization.

You can create an internal order to monitor the costs of a time-restricted job or the costs for the production of activities. Internal orders can also be used for the long-term monitoring of costs.

Investment cost related to fixed assets are monitored using Investment orders.

Period-related accrual calculation between expenses in FI and the costing-based costs debited in Cost Accounting are monitored using Accrual orders.

Costs and revenues incurred for activities for external partners or for internal activities that do not form a part of the core business for your organization are monitored using order with revenues.

How to create an Internal Order in SAP CO?

Use the T-code KO04 or go to Accounting → Controlling → Internal Orders → Master Data → Order Manager.

In the next screen, input the controlling area as shown below −

Click the Create button at the top to create a new internal order and enter the order type.

In the next window, enter the following details −

Company Code
Business area
Object Class of the Order
Profit Center
Cost Center responsible for the internal order

After entering the above details, click the Save button at the top to create the internal order.

(73) SAP CO - Settlement of IO

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An internal order is used as an interim collector of costs and is used for planning, monitoring, and controlling the processes.
When the job has been completed, you settle the costs to one or more receivers like cost centers, fixed assets, etc.

How to perform settlement of IO to Cost Centers?

Use the T-code − KO02 or Go to Accounting → Controlling → Internal Orders → Master Data → Special Functions → Change.

A new window will open.
Enter the Order number for which settlement is to be done.

Click the Settlement rule button at the top −

Enter the following details −

In Category column, enter 'CTR' for the cost center.
In Settlement receiver Column, enter the Cost Center in which the Order is to be settled.
Enter the percentage amount which is to be settled.
In Settlement type, enter 'PER' for periodic settlement.

Click the save button at the top to save the settlement rule and come back to the main screen.

Enter the T-code KO88 and input the following details −

Order for which the settlement rule is maintained.
Period for settlement.
Fiscal Year.
Uncheck the Test Run.
Click on the Execute Button to run the settlement.

A new window will open with a Settlement display message.
Click the Continue button to complete the processing.

(74) SAP CO - Profit Center

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SAP CO Profit Center is used for managing internal controlling.
When you divide your company into profit centers, it allows you to delegate responsibility to decentralized units and treat them as separate companies in a company.
It also allows you to calculate key figures in cost accounting like ROI, Cash flow, etc.

Profit Center is a part of Enterprise Controlling module and is integrated with a new General Ledger Accounting.

Key Features of SAP CO Profit Center

Profit Center Accounting is used to determine profit for internal areas of responsibility. It lets you determine profits and losses using either period accounting or the cost-of-sales approach.

It allows you to analyze fixed assets by profit center, thus using them as investment centers. It allows to expand profit centers to investment centers.

Why Do We Create Profit Center?

The main aim of creating a Profit Center in SAP CO is to analyze the cost of a product line or a business unit.

You can also generate P&L accounts according to a Profit Center and also generate balance sheets, however a Profit Center should only be used for internal reporting purpose.

The key components of a profit center include – name of the profit center, the controlling area under which it is assigned, time period, person responsible for the profit center, standard hierarchy, etc.

How to Create a Profit Center?

Use the T-code KE51 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center → Individual Processing → Create.

In the next screen, enter the controlling area in which the profit center is to be created and click the tick mark.

In the next screen, enter the unique profit center ID and click Master Data.

A new window will open where you need to input the following details −

Profit center name and a short description of the profit center.
Person responsible for the profit center.
Profit center group for which the profit center belongs to.

Click the Save icon at the top to create the profit center in inactive mode.
To activate the profit center, click the icon as shown in the following screenshot.

How to Create a Profit Center Group?

Use the T-code KCH1 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center Group → Create.

Enter the Controlling Area in which the Profit Center is to be created.

Enter the Unique Profit Center Group Id as shown below and press Enter.

Enter the short description for the profit center group and click the Save icon at the top.

(75) SAP CO - Posting to Profit Center

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To post to a Profit Center, use the T-code FB50.
It will take you to the following window.

Enter the Document date and the Company code.
Thereafter, provide input data in the fields as shown in the following screenshot.

After entering the line items, select the debit line item and click the button Detail Item button.
Refer the following screenshot.

A new window will open.
Enter the Profit Center and click the Save icon at the top.

(76) SAP CO - Profit Center Standard Heirarchy

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SAP CO Profit Center standard hierarchy, known as tree structure, that contains all the profit centers in a controlling area.

If you want to create/change the structure of a standard hierarchy, it can be done at two places −

In the Profit Center Accounting
In Customizing for Profit Center Accounting

How to Create Profit Center Standard Hierarchy?

Use the T-code KCH1 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Standard Hierarchy → Create.

In the next screen, enter the Controlling Area for which you want to create a Standard hierarchy.

Enter the Profit Center Group and click Hierarchy at the top and enter the sub-nodes of the Profit Center Standard Hierarchy.

Click the Lower level button to create a hierarchy.
Click the Profit center to assign a Profit Center group.

Click the Save button at the top and you will get a confirmation message.

(77) SAP CO - Assigning Cost to Profit Centers

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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.

In the next screen, enter the profit center to which the cost center is assigned and click the Save icon at the top.

(78) SAP CO - Assigning Materials to Profit Centers

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Go to SPRO → SAP Reference IMG → Controlling → Profit Center Accounting → Assignments of Account Assignment objects to Profit Center → Material → Assign Material Masters → Execute.

A new window will open. Enter the material Id for which the profit center is to be assigned and press Enter.

Select the view of the material master.

In the next window, enter the following details −

In the next window, enter the Profit Center and click the Save icon at the top.

(79) SAP CO - Tables in Module

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Important Tables in SAP CO
AUSP	Characteristic Values	MANDT / OBJEK / ATINN / ATZHL / MAFID / KLART / ADZHL
CO-KBAS	Overhead Cost Controlling
A132	Price per Cost Center	MANDT / KAPPL / KSCHL / KOKRS / VERSN / RESRC / KOSTL / DATBI
A136	Price per Controlling Area	MANDT / KAPPL / KSCHL / KOKRS / VERSN / RESRC / DATBI
A137	Price per Country / Region	MANDT / KAPPL / KSCHL / KOKRS / VERSN / RESRC / LAND1 / REGIO / DATBI
COSC	CO Objects: Assignment of Original Costing Sheets	MANDT / OBJNR / SCTYP / VERSN / GJAHR
CSSK	Cost Center / Cost Element	MANDT / VERSN / KOKRS / GJAHR / KOSTL / KSTAR
CSSL	Cost Center / Activity Type	MANDT / KOKRS / KOSTL / LSTAR / GJAHR
KAPS	CO Period Locks	MANDT / KOKRS / GJAHR / VERSN / VRGNG / PERBL
COKBASCORE	Overhead Cost Controlling: General Services
CSKA	Cost Elements (Data Dependent on Chart of Accounts)	MANDT / KTOPL / KSTAR
CSKB	Cost Elements (Data Dependent on Controlling Area)	MANDT / KOKRS / KSTAR / DATBI
CSKS	Cost Center Master Data	MANDT / KOKRS / KOSTL / DATBI
CSLA	Activity Master	MANDT / KOKRS / LSTAR / DATBI
CO-OM (KACC)	Overhead Cost Controlling
COBK	CO Object: Document Header	MANDT / KOKRS / BELNR
COEJ	CO Object: Line Items (by Fiscal Year)	MANDT / KOKRS / BELNR / BUZEI / PERBL
COEJL	CO Object: Line Items for Activity Types (by Fiscal Yr)	MANDT / KOKRS / BELNR / BUZEI / PERBL
COEJR	CO Object: Line Items for SKF (by Fiscal Year)	MANDT / KOKRS / BELNR / BUZEI / PERBL
COEJT	CO Object: Line Items for Prices (by Fiscal Year)	MANDT / KOKRS / BELNR / BUZEI / PERBL
COEP	CO Object: Line Items (by Period)	MANDT / KOKRS / BELNR / BUZEI
COEPL	CO Object: Line Items for Activity Types (by Period)	MANDT / KOKRS / BELNR / BUZEI
COEPR	CO Object: Line Items for SKF (by Period)	MANDT / KOKRS / BELNR / BUZEI
COEPT	CO Object: Line Items for Prices (by Period)	MANDT / KOKRS / BELNR / BUZEI
COKA	CO Object: Control Data for Cost Elements	MANDT / OBJNR / GJAHR / KSTAR / HRKFT
COKL	CO Object: Control Data for Activity Types	MANDT / LEDNR / OBJNR / GJAHR / VERSN
COKP	CO Object: Control Data for Primary Planning	MANDT / LEDNR / OBJNR / GJAHR / WRTTP / VERSN / KSTAR / HRKFT / VRGNG / VBUND / PARGB / BEKNZ / TWAER
COKR	CO Object: Control Data for Statistical Key Figures	MANDT / LEDNR / OBJNR / GJAHR / WRTTP / VERSN / STAGR / HRKFT / VRGNG
COKS	CO Object: Control Data for Secondary Planning	MANDT / LEDNR / OBJNR / GJAHR / WRTTP / VERSN / KSTAR / HRKFT / VRGNG / PAROB / USPOB / BEKNZ / TWAER
CO-OM-CEL (KKAL)	Cost Element Accounting (Reconciliation Ledger)
COFI01	Object Table for Reconciliation Ledger COFIT	MANDT / OBJNR
COFI02	Transaction Dependent Fields for Reconciliation Ledger	MANDT / OBJNR
COFIP	Single Plan Items for Reconciliation Ledger	RCLNT / GL_SIRID
COFIS	Actual Line Items for Reconciliation Ledger	RCLNT / GL_SIRID
CO-OM-CCA	Cost Center Accounting (Cost Accounting Planning)
A138	Price per Company Code	MANDT / KAPPL / KSCHL / KOKRS / VERSN / RESRC / BUKRS / GSBER / DATBI
A139	Price per Profit Center	MANDT / KAPPL / KSCHL / KOKRS / VERSN / RESRC / PRCTR / DATBI
CO-OMOPA(KABR)	Overhead Orders: Application Development R/3 Cost Accounting Settlement
AUAA	Settlement Document: Receiver Segment	MANDT / BELNR / LFDNR
AUAB	Settlement Document: Distribution Rules	MANDT / BELNR / BUREG / LFDNR
AUAI	Settlement Rules per Depreciation Area	MANDT / BELNR / LFDNR / AFABE
AUAK	Document Header for Settlement	MANDT / BELNR
AUAO	Document Segment: CO Objects to be Settled	MANDT / BELNR / LFDNR
AUAV	Document Segment: Transactions	MANDT / BELNR / LFDNR
COBRA	Settlement Rule for Order Settlement	MANDT / OBJNR
COBRB	Distribution Rules Settlement Rule Order Settlement	MANDT / OBJNR / BUREG / LFDNR
CO-OM-OPA (KAUF)	Overhead Orders: Cost Accounting Orders
AUFK	Order Master Data	MANDT / AUFNR
AUFLAY0	Entity Table: Order Layouts	MANDT / LAYOUT
EC-PCA (KE1)	Profit Center Accounting
CEPC	Profit Center Master Data Table	MANDT / PRCTR / DATBI / KOKRS
CEPCT	Texts for Profit Center Master Data	MANDT / SPRAS / PRCTR / DATBI / KOKRS
CEPC_BUKRS	Assignment of Profit Center to a Company Code	MANDT / KOKRS / PRCTR / BUKRS
GLPCA	EC-PCA: Actual Line Items	RCLNT / GL_SIRID
GLPCC	EC-PCA: Transaction Attributes	MANDT / OBJNR
GLPCO	EC-PCA: Object Table for Account Assignment Element	MANDT / OBJNR
GLPCP	EC-PCA: Plan Line Items	RCLNT / GL_SIRID
EC-PCA BS (KE1C)	PCA Basic Settings: Customizing for Profit Center Accounting
A141	Dependent on Material and Receiver Profit Center	MANDT / KAPPL / KSCHL / KOKRS / WERKS / MATNR / PPRCTR / DATBI
A142	Dependent on Material	MANDT / KAPPL / KSCHL / WERKS / MATNR / DATBI
A143	Dependent on Material Group	MANDT / KAPPL / KSCHL / WERKS / MATKL / DATBI

(80) SAP CO - Product Costing

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SAP CO Product Costing module is used to find the value of internal cost of products.
It is also used for profitability and management accounting for production.

While configuring Product Costing, it involves two areas for setting −

Product Cost Planning
Cost Object Controlling

The basics of Product Costing is Cost Center Planning.
The goal of cost center planning is to plan total dollars and quantities in each Cost Center in a Plant.

Product Costing - Overview

Use the T-code KP06 and enter the controlling area.

Cost Center dollars are planned by activity Type and cost element. You can also enter the variable and fixed dollar amounts.

You can plan all costs in production cost centers where they will end up through allocations, or you can plan costs where they are incurred and use plan assessments and distributions to allocate.

To define cost center activity quantities, use the T-code KP26.
You can also manually enter an activity rate based on last year's actual values.
Note that if you enter an activity rate instead of using the system to calculate a rate, you lose the opportunity to review actual vs. plan and see dollar and unit variances.
It is a best practice to plan activity quantities based on practical installed capacity which accounts for downtime.
If you plan at full capacity, plan activity rates will be underestimated.

Example

Let's say we are using Product Costing to value our inventory in a cookie baking shop.
This will help us value our cookies (finished good), frosting (semi-finished good), and baking items like eggs, milk, and sugar (raw materials).
In order to calculate costs, we need to come up with rates for each activity, such as mixing baking items, oven baking, and cookie cooling.
Since a rate is a dollar per unit, we can either come up with a rate based on previous year's actual rates, or enter our total costs and total units.

(81) SAP CO - Profitability Analysis

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SAP CO Profitability Analysis is used to analyze the market segments classified as products, customers, sales area, business area, etc.

SAP CO Profitability Analysis (CO-PA) is used for the evaluation of Market segments which is classified according to products, customers, and orders −

or any combination of these.
or Strategic business units such as sales organizations.
or business areas, with reference to company's profit.
or contribution margin.

There are two types of Profitability Analysis are supported −

Costing-based Profitability Analysis − It is used to group the costs and revenues as per the value fields. It is used to ensure that you access at all times to a complete, short-term profitability report.
Account-based Profitability Analysis − It is used to provide you with a profitability report that is permanently reconciled with financial accounting. It is mainly used for getting information related to sales, marketing, product management and corporate planning departments to support internal accounting and decision-making.

Key Components in SAP CO-PA

The key components in SAP CO-PA are as follows −

Actual Posting − It allows you to transfer sales orders and billing documents from the Sales and Distribution application component to CO-PA in real time. You can also transfer costs from cost centers, orders and projects, as well as costs and revenues from direct postings or settle costs from CO to profitability segment.
Information System − It allows you to analyze existing data from a profitability standpoint using drilldown function in the reporting tool. It allows you to navigate through a multidimensional data cube using different functions like drilldown or switching hierarchies. The system displays data in either value fields or accounts, depending on the currently active type of Profitability Analysis and the type to which the report structure is assigned.
Planning − This allows you to create a sales and profit plan. Whereas both types of Profitability Analysis can receive actual data in parallel, there is no common source of planning data. Consequently, you always plan either in accounts (account-based CO-PA) or in value fields (costing-based CO-PA). The manual planning function allows you to define planning screens for your organization. With this you can display reference data in planning, calculate formulas, create forecasts, and more. You can perform planning at any level of detail.

Example

You can plan at a higher level, and have this data distributed top-down automatically. In automatic planning, you can copy and revaluate actual or planning data for a large number of profitability segments at once.

(82) SAP CO - Planning Methods

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SAP CO Planning Method allows you to plan the profitability segments as mentioned in the Planning packages.

To execute a planning method, you need to define it in a parameter set. Each planning method is executed via parameter set. To create a parameter set, you need to first define the Planning level. For parameter set to execute, there should be at least one planning package exists at that level.

There are two different types of planning methods and they differ in the way they allow you to enter and edit planning data for the profitability segments.

Manual Type

Manual planning methods allows you to enter planning data and display planning data in the profitability segments specified in the planning package are listed individually for editing or display.

In parameter set, you mention how the profitability segments are to be listed. When planning method is executed, processing of parameter set occurs and you can directly check the results of your processing.

Automatic Type

With automatic planning methods like copy, top-down distribution and delete, all profitability segments that are specified in the planning package are processed.

You need to mention in the parameter set like- how these segments are to be processed, when you execute the method, the system automatically processes the segments without any need of manual action.

Results of the processing can be checked using a report in the information system or by manual planning method display planning data.

(83) SAP FI - Integration

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SAP FI is commonly integrated with MM and SD component.
SAP FI Integration with other modules means how the system maps with different modules and how the effect of those is passed into FI Module.

FI Integration with SD and MM

For SAP FI-MM, use the T-code OBYC

Whenever there is a delivery created with reference to a sales order, goods movement takes place in the system.

Example

In case of standard sales order, you create an outbound goods delivery to the customer.
Here movement 601 takes place. This movement is configured in MM and movement of goods hit some G/L account in FI.

Every such movement of goods hits General Ledger account in FI.

The accounts posting in FI is done with reference to the billing documents like credit and debit note, invoice etc. created in SD and hence this is link between SD and FI.

Tax determination: In case of a tax determination, there is a direct link between SD and MM.

Movement Types

Material movements in MM is done with respect to a Movement Type.

Goods receipt – movement type 101
Goods issue to production order – movement type 261
Scrapping of goods – movement type 551
Goods delivered to the customer – movement type 601
Initial upload of stock – movement type 561

SAP allows us to use different G/L accounts for the various movements for the same material by linking this movement type to a transaction key and hence we can set G/L accounts as per movement type.

Reserve

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reserve