Cost centre accounting

[Former Member]

Dear All,

I have made a WBS statistical and a cost centre is assigned to that. i have created internal activities and i am procuring services through that. cost is getting booked on WBS ( WBS account assignment is ticked as well as it is statistical) and i am getting actuals in PS reports, but when i am seeing cost center reports there is no cost posted in cost center.

Request all to help me in getting this thing right.

Scenario is- i have cost which is a cost centre based but i want to do a scheduling to the activities and also procure those services through the structure and the cost should move to WBS and in turn move to Cost center..

[Former Member · Accepted solution]

The problem I see is the costs are not hitting the WBS directly.They are hitting the activities and getting rolled up from Network to WBS. Thats why they are seen as statistical on WBS. But they are not hitting Cctr anywhere. If you make a direct posting to WBS and maintain Cctr then it will show as actual against Cctr.

Try maintaning Resp Cctr at Network level and WBS level, which should be same and then. Not sure that this will work. The other option will be collect actual cost on WBS and then settlement from WBS to Cctr.

Hope this helps

Sarang

[Former Member · Accepted solution]

>

> The problem I see is the costs are not hitting the WBS directly.They are hitting the activities and getting rolled up from Network to WBS. Thats why they are seen as statistical on WBS. But they are not hitting Cctr anywhere. If you make a direct posting to WBS and maintain Cctr then it will show as actual against Cctr.
> 
> Try maintaning Resp Cctr at Network level and WBS level, which should be same and then. Not sure that this will work. The other option will be collect actual cost on WBS and then settlement from WBS to Cctr.
> 
> Hope this helps
> 
> Sarang

Hi,

Yes the problem what you identified is correct - i am able to post the actuals when i am taking WBS directly into the PO.

But i need the PO to be created through requisition from network and then cost should come to network and then move to WBS and which in turn should hit cost center once GR is done.

Please suggest me a way to do this.

Regards,

Farhan

[Former Member · Accepted solution]

Hi,

Yes the costs are hitting Activities during Goods Issue this is the reason why you are not able to see cost center reporting.If you post to WBSE then it will work fine.

1.Maintain Cost Center in Cost element.Then analyses the reports in cost center accounting.

2.Otherwise settle the project to Cost center then you analyze all the costs in cost center accounting.

Regards,

Muzamil

[Former Member · Accepted solution]

If you are keen on using Networks, the only way I see is do the settlement from WBS to CCtr.

or else you can use Network and activities for scheduling and procure the material against WBS with account assignment "P". Make sure that WBS is statistical and mention Cctr along with WBS in PO. You need to make changes to Account assignment config P in MM to allow the user to put Cctr with WBS.

This will solve both ur purpose of scheduling and cost aginst Cctr.

Thanks

Sarang

[Former Member · Accepted solution]

>

> If you are keen on using Networks, the only way I see is do the settlement from WBS to CCtr.
> 
> or else you can use Network and activities for scheduling and procure the material against WBS with account assignment "P". Make sure that WBS is statistical and mention Cctr along with WBS in PO. You need to make changes to Account assignment config P in MM to allow the user to put Cctr with WBS.
> 
> This will solve both ur purpose of scheduling and cost aginst Cctr.
> 
> Thanks
> Sarang

Thanks Sarang

I have got the concept, but tell me how to settle the cost to the Cost center through the WBS.

Do i have to change the allocation structure for the profile and under settlement cost element i need to take Cost center as an option and pull out the correct cost center.

if you can help me out in steps , it would be of great help.

Regards,

Farhan

[Former Member · Accepted solution]

Hi,

Maintain Allocation Structure in which under Settlement Cost element select CTR and tick by cost element.

So you can create settlement rule to CTR either by running CJB2 or you can manually maintain CTR as settlement receiver in cj20n.

Muzamil

[Former Member · Accepted solution]

Yes you need to set up a allocation structure for it. Under Allocation structure

1.Source Structure - This will not be different then other Allocation structure. Just make sure that you include all source CE such as labour, material, secondary cost etc.

2.Settlement Cost element - Maintain the receiver category as Cost Ctr against appropriate assignment i.e. labour,material etc and use a 21 type secondary cost element.

Now you can also configure settlement strategy for auto population of settlement rule.Maintain the startegy against Cost Ctr. Use the Cost ctr in WBS master data and then run CJB2 manually or even a batch job. This will facilitate auto population of settlement rule against respective cctr maintained on WBS.

Hope this helps...

Thanks

Sarang

[Former Member · Accepted solution]

>

> Yes you need to set up a allocation structure for it. Under Allocation structure
> 
> 1.Source Structure - This will not be different then other Allocation structure. Just make sure that you include all source CE such as labour, material, secondary cost etc.
> 2.Settlement Cost element - Maintain the receiver category as Cost Ctr against appropriate assignment i.e. labour,material etc and use a 21 type secondary cost element.
> 
> Now you can also configure settlement strategy for auto population of settlement rule.Maintain the startegy against Cost Ctr. Use the Cost ctr in WBS master data and then run CJB2 manually or even a batch job. This will facilitate auto population of settlement rule against respective cctr maintained on WBS.
> 
> Hope this helps...
> 
> Thanks
> Sarang

Dear Sarang

I have done the settings as given below even then i am getting errors ( error shown at last)

Allocation structures

CS Allocation Cost Cnter

Assignments

010 Material Cost

020 Taxes Expenses

030 Services Cost

040 Marketing cost

050 Land procurement Cost

060 Capitalised Rent

070 Overheads

080 Finance Expenses

090 Depreciation

120 Allocated/Settled Costs

Source

Cost Elem.Group

MATE_SET

( MATE_SET Material Cost Elements for Settlement

40000110 40000299

40000110 Consumption-Steel

40000120 Consumption-Cement

40000130 Consumption - Flooring Materials

40000140 Consumption-Sanitary Fixture

40000150 Consumption-Hardware Items

40000160 Consumption-Flush doors

40000170 Consumption - DGs and Transformers

40000180 Consumption-Electrical Fittings

40000190 Consumption of Boorwell

40000200 Consumption of EPABX

40000210 Consumption of RMC )

Settlement cost elements

FXA 40101000 Expenses Capitalised

CTR 90211100 Internal Aty - settl

WBS 90211010 Material Cost - Sett

G/L 40102000 Expenses Inventorise

In Settlement Profile

to be settled in full

Valid Recievers - Cost center - settlement optional

Valid Recievers - WBS - settlement optional

under default values

allocation structure CS

default object type WBS

Error which is displayed while doing CJ88

Complete allocation structure CS

Message no. KD503

Diagnosis

During settlement, the system puts the sender debits into groups (assignments), which are settled using the same settlement cost element. The settlement assignment is made in the allocation structure, which is stored in the settlement rule for the sender (under settlement parameters).

Cost element 90211010 cannot be assigned to a settlement cost assignment in allocation structure CS, and therefore it cannot be assigned to a settlement cost element.

Procedure

Possible solutions are as follows:

If the posting under cost element 90211010 was made to the sender because of an incorrect entry, and you can reverse the posting, and do not need to update the allocation structure. You only need to reverse the incorrectly assigned posting before repeating the settlement. Exception: For an investment measure with a line item settlement, you need to extend the allocation structure, even after the reversal.

If the posting was made correctly, you can do the following:

a) You can assign a different allocation structure to the sender: In the master data maintenance for the sender, choose "Settlement rule -> Goto -> Settlement parameters" and then enter a different allocation structure.

If necessary, also check whether the correct allocation structure is entered in the settlement profile. The allocation structure is defaulted in the settlement profile when you create sender master data or when you maintain the settlement rule.

You can update allocation structure CS

Request you to suggest me the changes i need to do to get it correct

[Former Member · Accepted solution]

Maintain CE 90211010 in source structure anywhere in assignment. You are hitting a Cost to WBS for which source is CE 90211010 and it is not maintained in source in Allocation structure.

Include CE 90211010 in source and settlement will work

Sarang

[Former Member]

Done Thanks

[anishpv]

Hi,

check whether any lock indicators are active in ks03

regards

pv

[Former Member]

>

> Hi,
> 
> check whether any lock indicators are active in ks03
> regards
> pv

Hi,

There is a commitment update indicator which is locked.

Is it because of this cost are not getting booked as there is not commitment getting generated.

will this solve the problem.

Regards

Farhan