This is used to view costs for a specific task.
Eg. A) Vehicle wise running expenses
Management has to task decision whether to sell the (or) keep the vehicle in company A) petrol expenses for the vehicle B) Repairs to the vehicle
It we take GL accounts in FI –we will not create each vehicle wise petrol expenses and repairs account.
In cost center accounting –vehicles will be under administration cost center and the petrol expenses repairs and administration expenses will be posted to administration cost center.
By creating vehicle as an internal order we can get the costs.
B) Telephone expenses:
If we want to know telephone wise expenses in FI –we will have one account for all telephones.
If we take cost center –It will be entered in administration cost center - We can not get telephone wise expenses directly.
By creating telephone as an order we can get telephone wise expenses.
C) Production order costs
In a month no. of production orders will be executed. Some production orders consume more raw material and same production orders consume less raw material.
If FI we have only GL account raw material consumption – We don’t know order wise consumption.
By crating production order, we can get order wise costs.
D) Exhibition costs
Company is conducting an exhibition
Salesmen salaries One account
Conveyance Different account
Advertisement Different account
Discounts Different account
We don't know the exhibition costs by creating an order we can get exhibition costs
Orders will be of 2 types
1)Real orders 2)Statistical orders
Settlement is possible settlement not possible
We can settle order statistical orders are used for decision making
To Cost Center
When we transfer from cost center –To cost centers allocation by assessment / Distribution periodic reposting / Indirect activity allocation.
When we transfer from Internal order settlement.
Eg. Telephone expenses Dr 50000 Cost center Dept Order Tel no.66110883
To Bank 50000
The cost will be allocation to production orders from CO
In the production order valuation we can’t take.(50000+50000) We have to take only one time 50000
When we are posting to no. of cost objects are will be real and others will be statistical.
At the time of order creation there is a statistical order check box.
A) When we select statistical order is statistical order check box.
Order is statistical (Automatically cost center will be real) B) If we don’t select statistical order check box
Order is real (Automatically cost center will be statistical ) Statistical order :
Telephonewise expenses order we create as statistical order.
Telephone expense Dr 50000 Cost center Dept A
Order Telephone no.66611983 Statistical To Bank 50000
Cost Center Dept A Telephone expenses 50000 Allocation to paid order 50000 Cost center Dept A – Zero
In the month end we allocation costs from Dept A to production orders there by cost center Dept A will be zero.
Order telephone no.66611983 Telephone expenses 50000
Management can see telephone wise expense at any point of time afterwards.
Suppose we create order as real order
Telephone expenses Dr 50000 Cost center Dept A
To Bank 50000 order telephone no.66611983 Real Cost center c data
Telephone Expenses 50000 Order Telephone no.6661987 Telephone expenses 50000 Allocation to production 50000 Order will be zero
In the month end we allocate cost from order telephone no.66611983 to production order there by order will be zero.
Afterwards management can’t see telephone wise expense.
Creation of order types:
Path : SPR O –Controlling –Internal orders – order master data-Define order types (KOT2_OPA)
Select new entries button
Order category :Select 01 Internal order (Controlling) Enter
Order type :BILT
Description :Telephone orders for BIL
Planning profile :select 000001 (General budget /plant profile) Object class :Select Over head cost
Select release immediately check box Save
We get message no.range not processed Ignore the message press enter
Select assign /change interval button beside no.reage interval Double click order type :BILT
Select motor pool A-ZZZZZZZZZZZZ(External) From the menu select Edit Assign element group Save
Ignore the message press enter
Creation of filed status group by making cost center and internal order required entry fields (OBC4)
Select field status variant :BIL Double click on field status group folder
Select field status group G004 cost accounts Select copy as button
Change the filed status group to G002
Change the text to cost accounts (CC & IO required) IO =Internal order Enter
Save CC=Cost Center
Press enter to save in your request Double click on G002
Double click on additional account assignment CO /PP order make it required entry field.
Save
Creation of GL master telephone expense (FS00)
Give the GL account no.400305 Company code :BIL Select with template button GL account 400300 Rent account Company code :BIL Enter
Change short text and GL a/c long text to Telephone expenses Select crate / Bank/Interest tab
Change the filed status group to G002 Save
Select edit cost element button
Valid from date :01.04.2008 Enter
Cost element category :Select 1 Save
Creation of Internal orders:
Path :Accounting –Controlling-Internal orders-Master data-Special functions –Order –Create (Tr code is KO01)
Order type :Select BILT
Enter
Order no. :BIL 66611983 (Telephone no.) Description :Telephone order no.66611983
Company code :BIL
Business area :BILH
Select control data tab
Select statistical order check box Save
One more order
Order type :BILT
Enter
Order :BIL66611984
Description :Telephone order no.66611984
Company code :BIL
Business area :BILH
Select control data tab
Select statistical order check box Save
Creation order group
Up to master data the path is same Order group Create (Tr code is KOH1) Give the order group name :BILHYDTEL
Enter
Description :Hyderabad order group (GRP)for BIL Select insert order button(Select menu bar Edit Order Insert Order)
Select to orders :BIL66611983
:66611984 Save
Posting of transaction in FI (F-02)
Document date :Today’s date
Type :SA
Company code :BIL
Posting key :40
Account no. :400305 Telephone exp
Enter
Give the amount :100000
Cost center :Dept A
Order :BIL66611983
Text :Telephone expenses
Posting key :50
Account no. :200105 (SBI current account ) Enter
Amount :*
Business area :BILH
Text :+
From the menu select –Document –Simulate and save To view internal order wise report
Path :Accounting –Controlling-Internal order-Information system-Reports for Interval orders -Line items –Order -Actual line items-(Tr. Code is KOBI
Give the order no.BIL66611983 Remove the order group Execute
Keep the cursor and telephone expense line item select document button Planning order wise
Path :Accounting –Controlling –Internal orders –Planning –Cost and activity inputs – Change (KPF6)
Version :0
From period :8 (November)
To period :8
Fiscal year :2008
Select next page or page down button Give the order no. :BIL66611983
Cost element :400305 Telephone expense Select from based radio button
Select view screen button
Cost element :400305 Total plan cost :75000 Select save button or Ctrl+S
To view variant report order wise
Path :Accounting Controlling-Internal order –Information system-Reports for internal order-Plant /Actual comparisons-Order :Actual / plan / Variance (S_ALR_87012993)
Controlling area :BIL
Fiscal year :2008
From period :8 (Current month)
To period :8
Pant version :0
Order values :BIL66611983 Execute
Real orders:
They are used for vehiclewise expenses
Petrol expenses Dr 50000 Order no.AP9Z1234 To Bank 50000
In the month end:
Cost center Dept A Order no.AP9Z1234 Settle to Cost center Dept B Cost center Dept C Settlement can be percentage basis / ratio basis /Amount basis
Order No AP9A1234
Petrol expenses 50000 Allocation Dept A 25000 Dept B 15000 Dept C 10000
--- ---
50000 50000
==== ====
Order will be zero
Petrol expense Dr 50000 Cost center:Common
Order No.AP9Z1234 Statistical To Bank 50000
In the month end from cost center common allocate to Dept A, Dept B and Dept C by assessment / Distribution / Periodic posting /Direct activity allocation.
Cost center common
Petrol Expenses 50000 Allocation to Dept A 25000 Dept B 15000 Dept C 10000
--- ---
50000 50000
==== =====
Cost center will be zero Order no.AP9Z1234
Petrol expense 50000
=====
Management can see vehicle wise expenses at any point of item afterwards.
Creation of filed status group by making only internal order required entry filed (OBC4)
Select filed status variant :BIL Double click on filed status group folder Select field status group G002
Select copy as button
Change field status group to G010
Change the text to cost accounts (IO required ) Enter and save
Press enter to save in your request Double click on G010
Double cock additional account assignments Cost center make it optional entry field Save
Creation of GL master petrol expense under administration group (FS00)
Give the GL Account no. :400310
Company code :BIL
Select with template button
Give the GL account no.400300 Rent account
Company code :BIL
Enter
Change short text and long text to petrol expenses Select create/bank /interest tab
Field status group :G010
Save
Select edit cost element button
Valid from date :01.04.2008
Enter
Cost element category :01
Save
Creation of secondary cost element i.e. Statement cost element (KA06):
Give the cost element :1000001 Enter
Name and description settlement cost element
Cost element category :Select 21 internal settlement Save
Maintain allocation structure:
Path :SPRO-Controlling –Internal orders-Actual posting- Settlement-Maintain allocation structures
Select new entries button
Allocation structure :B1
Text :BIL allocation structure
Save
Press enter to save in your request
Select :B1
Double click assignments folders Select new entries button
Assignment :01
Text :Vehicle expenses settlement
Save
Select :01
Double click on source folder
From cost element :400310 Petrol expenses Save
Press enter to save in your request
Double click on settlement cost elements folder Select new entries button
Receiver category :Select CTR cost center Settlement cost element :1000001
Save
Petrol expenses will be settled to cost center by using secondary cost element settlement cost element.
Through orders.
Maintain settlement profiles:
Same path
Double click on maintain settlement profiles Select new entries button
Settlement profiles :BIL1
Description :BIL settlement profile Allocation structure :B1
Select to be settled in full radio button Double click on CTR cost center Select % settlement check box
Select equivalence number check box Select amount settlement check box Under valid receivers
For cost center :Select settlement required Max.no. distribution rules :999
Residence time :12 months Save
Press enter to save in your request
Rule 1:
Order no.AP9Z1234 settle cost center Dept A 30000 Petrol expenses 50000 settle cost center Dept B 15000 Dept C 5000 Rule 2
Order No.AP9Z1234 Settle to cost center Dept A 85%
Petrol expenses 50000 Settle to cost center Dept B 10%
5%
Order no.AP9Z1234 settle to cost center Dept 4:
Petrol exp 50000 Dept 3:
Dept 1:
Maintain number range for settlement documents:
Go through Same path (Tr.code is SNUM) Select maintain groups button
Double click on controlling area BIL
Select Standard accounting document check box From the menu select EditAssign element group
Save
Ignore the message press enter
Creation of order type (KOT2_OPA)
Select new entries button
Order category :Select 01 Internal order (controlling) Enter
Give the order type :BILV Vehicle order type BIL Settlement profile :BIL1
Budget profile :0000001 (General budget profile) Object class select :Overhead costs
Select release immediately check box Save
Ignore the message press enter save in your request
Select assign /Change intervals button beside no.range interval Double click on BILV
Select motor pool A-ZZZZZZZZZZZZZZ external check box From the menu select Edit –Assign element group.
Save
Ignore the message press enter
Define co.no.range interval for the business truncation K0A0-Actual settlement. Use the transactions code (KANK)
Give the controlling area :BIL Select maintain groups button
Double click on KOAO actual settlement Select co.no.range interval for BIL check box Form the menu select Edit –Assign element group.
Save
Ignore the warning message press enter