PS and FICO integration issues

[Former Member]

Hello, excuse me if am asking a really dum Question.

Can anyone advise on how does the information flow between a PS module and FICO, I understand that PS uses the org structure of CO.

The question is

1. When we create PD and WBS in PS and actual costs are posted to those WBS how are the costs reflected in FICO

- What are the objects we need to create create this information flow

[virendra_pal · Accepted solution]

when costs are posted against a project object say WBS or network activities, these are debits are against a cost element assigned to project objects. The cost element is created as part of FI chart of accounts. For a P/L account a cost element is created for debits to project objects like WBS, networks. As the costs are posted on cost elements the FICO reports can pick these up. If a WBS has a profit centre assigned and PCA is switched on then a statistical posting is alo passed on to the profit centre.

[Former Member · Accepted solution]

Virendra, thanks for your input. You have covered the part where the costs are seen. Can you please advise how the cost element is related to the FI accounting. And whats the concept of primary and secondary cost element?

[Former Member · Accepted solution]

When GL Account is brought into Controlling, they are called Primary Cost Element. They are of category 1, Primary costs/Costs reducing revenueCategory 11, Revenues, Category 12, Sales deductions and so on. Whereas, Secondary Cost elements are created within Controlling and shall be used for allocating costs from one cost object to other cost objects. They are of category 21, Settlement cost element, category,31 WIP/Result Analysis, Category 41, Overhead rates, 42, Assessment and Category 43, Internal Activity Allocation.

[Former Member]

Dear,

secondry G/L is the cost element which flows parallel to the G/L in some case.

As intermal activilty,general cost activity is lincked with cost element can see in network profile .

But the material and external activity is lincked with G/L directly .

We can see in the n/w profile .

But in the case of material calution class is lincked with G/L .

as we do any t code related to cost G/L or Cost element is hit.

regards.

[Former Member]

Dear Pradeep, The Project System has no organizational structure on its own. The Project Structure has to be assigned to the organizational units of Logistics and Accounting. By this way, we could able to get different information in different ways. Hence, we need to create Orgnisational Elements in Accounting, say, Company, Controlling area, Profit Center, Business area, etc., in Logistics, Plant, Sales Organization, Purchasing Organization, etc. If you need any clarification, let us know. Trust this helps much! Cheers, Ashok SINGH

[Former Member]

For revenue recognition, it can be settled to FICO by result analysis (KKA2).

For asset capitalization, the AUC can be capitalised through settlement rule by investment profile.

Regards