settlement

[Former Member]

hi,

1) as cost center also 1 type of co object or cost collector, in the end cost that kept in cost center will eventually need to settle to copa. right?

2) when settle to copa, the cost is still sitting in cost center? i do not think the cost will be moved to copa.

3) but for profit center, cost or revenue that sitting in profit center is considered final and no more further settlement is needed to settle to copa as it is already updated in copa. correct?

thanks

[iklovski · Accepted solution]

Hi,

There are no right or wrong answers to these questions; it depends on business requirements. Anyway, the cost never 'disappears' from cost centre on settlement; a settlement document is created, but the origin of the cost could be always traced.

Regards,

Eli

[Former Member · Accepted solution]

hi sir,

do you mean the cost will still sitting in cost center. when say settle to copa it means to create a linkage only right?

but for other co object like internal order, it needs to be cleared in the end. correct?

[iklovski · Accepted solution]

Hi,

That's right. For internal order it's the same; this 'clearing' means only the internal document between CO objects. The settled costs reflect with zero amount on the source object in the reporting, but this does not mean actual 'movement' of the costs.

I'd suggest you to read SAP CO manual for better understanding of CO processes.

Regards,

Eli

[Former Member · Accepted solution]

hi,

can clarify this.

3) but for profit center, cost or revenue that sitting in profit center is considered final and no more further settlement is needed to settle to copa as it is already updated in copa. correct?

thanks

[iklovski · Accepted solution]

That's again up to business requirements as the revenue could be re-settled.

[Former Member · Accepted solution]

hi,

hope you not angry with my question.

1) why revenue in profit center also need to resettle? settle to where?

2) yesterday you told me revenue in cost center is a statistical. statistical means need to settle.

thanks

[iklovski · Accepted solution]

Hi,

Statistical means 'posting for reporting only'. Revenue could be re-settled due to business requirements. Suppose, a revenue posted on a profit centre A who actually gives services for other profit centres B and C, and the client wants to see the revenue on B and C.

Regards,

Eli

[Former Member · Accepted solution]

hi,

which means whether profit center or cost center,

revenue also can be resettled?

in cost center, revenue is just statistical. when statistical means will not be resettled as it is for reporting only. not real. so how can revenue in cost center resettle?

thanks

[iklovski · Accepted solution]

Who says about cost centre? I was talking about profit centre

[Former Member · Accepted solution]

hi,

sorry, i think now it is cleared to me.

1 revenue in cost center is statistical. means just for reporting and not for settlement. only cost or expense can be resettle to copa.

2 revenue in profit center can be resettled if needed else revenue or cost in profit center can consider as final (copa) and no further settlement needed.

thanks

[iklovski · Accepted solution]

Yes, sort of. Just one thing: do not consider CO-PA as an ultimate (final) step. It's just another view of financial documents and could be, in some cases, considered as parallel and not final.

[Former Member · Accepted solution]

hi,

if you not think it is a final then where u think all the revenue and cost is kept?

are you saying copa is parallel with profit center? only profit center is not a cost collector which not required to do settlement.

sorry for asking this.

thanks

[Former Member · Accepted solution]

hi,

check this links

http://help.sap.com/saphelp_erp2005vp/helpdata/en/7a/4c48c64a0111d1894c0000e829fbbd/frameset.htm

http://help.sap.com/saphelp_erp2005vp/helpdata/en/eb/13811243c411d1896f0000e8322d00/frameset.htm

Thanks,

Rau

[iklovski · Accepted solution]

Revenues and costs are 'kept' in relevant CO/PCA/PA objects. No module can be considered as 'final' in ERP application. When CO document is created on the basis of FI, it does not mean that CO is 'final'; it's just different layer to store the information.

Please, read SAP manual for better understanding of the processes; you won't get any basic knowledge from SDN forum as its purpose is to solve specific problems/issues.

[Former Member · Accepted solution]

One asks different questions in each sub-module.

In CO-CCA, it is "Who is responsible for incurring overheads?"

In CO-PC, it is, "What does it cost to manufacture this lot size of this product in this plant?"

In CO-PA, it is, "What is my profitability for selling this product to this customer?"

In FI it is, "What is my legal profit, bank balance, collectibles, payables, etc?"

In EC-PCA it is, "What is the profit made by this "internal company"?"

Greatly simplified of course...

[Former Member · Accepted solution]

hi,

really appreciate your post despite my subject is closed.

point given.