posting to copa

[Former Member]

hi,

i have scenarios below that i need to clarify.

1) company A cost center A1 provides expertise to company B cost center B1 within the same group of company. in this case, it would be credit the cost element cost center A1. it is an income for cost center A1.

is this posting also need to reflect in copa?

2) I.T. cost center is a service provider and other cost center in the company are receving cost center. every month, I.T. cost center will charge all other cost center for the I.T, service. in this case, to IT cost center, it is an income whereas to others are expenses.

may i know how the charging taken up in copa? or this kind of inter charges is not part of cogs so not in copa.

3) if it is not part of cogs and sales, will the above also shown in copa?

thanks

[Former Member · Accepted solution]

Hello

Here are the simple answers:

1) All postings - expenses & revenue flows to CO-PA, hence in this case Yes.

2) All inter-company / inter-unit / inter-department / inter-cost centres are still part of cost (either at COGS level or Cost of sales level) hence it flows to CO-PA. In your case Yes, it will flow to CO-PA.

3) I think this question is answered in point 2 above.

I have tried to provide simple answers to complex costing flow.

Ironically cost accounting u2013 CO (which is based on 2 principles u2013 direct & indirect) is more complex than financial accounting u2013 FI (which is based on 3 principles u2013 personal account, real account & nominal account).

Ambadas

[Former Member · Accepted solution]

hi,

which means whatever cost incurred be it inter-co, inter-dept, also considered as expenses and need to settle to copa.

1) but let say IT dept provides service, doesn't it is a revenue to IT dept? it is an expense or cost to receiving cost center but service provider is credited. so which means IT dept may report less cost or even have revenue in copa?

2) if a cost center generating revenue, how does it report in copa?

thanks

[Former Member · Accepted solution]

Hi!

As per your second question. as you want to capture your internal price (as you cost center is generating revenue) for COPA reporting, you can use condition type in COPA and assign it to value field to flow as a part of actual value flow to COPA. I think that condition type is VPRS. You can check the same in your test client.

For your first question, any department can generate revenue or incur an expense. To flow the values to COPA, you make sure that the condition types and linked to the account in FI must be defined as cost element category 11 (revenue element) or 12 (sales deduction).

Hope it will clear you. Pls get back for further query.

Thanks & Regards,

Taral Patel

[Former Member · Accepted solution]

Hi,

May I know where can I see or what transaction code or spro path for condition type VPRS and cost element category 11 (revenue element) or 12 (sales deduction).

thanks

[Former Member · Accepted solution]

Hi!

For cost element category, you may refer t.code KA03 where for defining any cost element, you have to define cost element category for that CElem. All these cost element categories are std. one from SAP and you need to assign it to your CElem as per your business requirement.

The mentioned condition type can be defined from t.code 8KEV and need to assign to costing sheet in COPA. Also this condition type needs to assign to value fields through KE45.

Hope it will clear to you. Pls get back for further query.

Thanks & Regards,

Taral Patel

[Former Member · Accepted solution]

Hi,

point given and thanks for the information.

but i do not see VPRS condition type in 8kev and ke45.

thanks

[Former Member]

Hi,

I understand that you are not using SD process for this business process are is using either CO allocation (assessment / distribution) or activity allocation.

In such a scenario as mentioned by you the allocation would post entries only to Cost centers and CO-PA would not be affected with it.

If you need to see these results in PA do an (allocation) Assessment of this cost center cost to PA with seperate cycles.

Option 2:

If you are interested in online posting to PA for these services, then you need to use SD process of billing for services. With this Revenue/ Cost will flow directly to PA. However, your actual cost may flow only in the period end as you would be having many expenses which are incurred only once in a month for the IT department cost center.

Hope this helps you.

Varadharajan