6.1 Document Processing
Enter the following document types. If necessary add the appropriate
- DR Customer invoice
- DS Customer Credit memo
- DZ Customer payment
- KR Vendor invoice
- KG Vendor credit memo
- KZ Vendor Payments
- SA G/L accounts
6.2 Organization Information
Both of the two company codes will roll up into one corresponding area. Define the controlling area and allocate it to the respective company codes.
Enter the basic data as follows:
- Activate cost center accounting.
- The cost accounting currency in identical with the group currency of the company.
- Activate the charts of accounting.
- The periods correspond to the periods of financial accounting, i.e. 12 accounting periods and four special periods.
- Company code check.
- Maintain the controlling area currency and the two main currencies for the company code.
- Implement number range groups for activity related and period –related activities in and actual.
- Allocate number ranges for those groups within cost center accounting.
- Complete data entry is only required in one company. Partial data entry is necessary in the other company to demonstrate aggregation of data at the corporate level.
- Design a line for AR, AP and GL to display all assigned currencies.
For primary cost entry and primary cost allocation take over the G/L accounts of 4xxxxxFrom financial accounting into cost accounting. Therefore you need to analyze the chart of accounts and determine the appropriate cost element types.
Implement the respective secondary cost elements, statistics ratio and activity types for the internal cost allocation.
The validity period for cost elements and activity elements is from 01.01.2002 till 12.31.9999.
- Statistical figures 91000 (employees in ea.)
- Statistical Key figure 7800 (energy consumption in kWh)
- Activity type 1410 (repair hours)
- Activity type 1440 (assemble brakes )
- Activity type 1450 (assemble motorcycles)
- Cost element for internal allocation 610000
- Cost elements for cafeteria assessment 510000
- Internal Order settlement cost element 650000
| Group | Cost Elements |
| GOAS | All other groups, object analysis sheet |
| Material | 40xxxx, 4150000 |
| Energy | 4161000, 416200, 416300 |
| Personnel | 42xxxx, 43xxxx, 44xxxxx |
| Plant maintenance | 45xxxx |
| Taxes | 46xxxx |
| Rents | 47xxxx |
| Assessment | 510000 |
| Activity allocation | 610000 |
| Settlements | 650000 |
6.4 Cost Center and Internal Order Accounting.
6.4.1 Cost Center Hierarchy
Set up appropriate standard hierarchies for your controlling area:
K00 Standard hierarchy, ABC Motors.
K99 Clearing cost centers
K99X6 Clearing cost center
X16099 Clearing cost center
K00X ABC Motors International,
K00X1 General cost center
X11000 general cost center
X11100 real estate/buildings
X11200 cafeteria
K00X2 Service cost center
X12000 service cost center
X12100 plant maintenance
X12200 internal transportation
K00X3 Production center
X13000 production center
X13100 street motorcycle assembly
X13200 motocross motorcycle assembly
K00X4 Material center
X14000 material center
X14100 material purchase
X14200 operating funds purchase
K00X5 Distribution and Administration
X15000 administration
X15100 management
X15110 sales Laguna
X15210 sales Chicago
X15310 administration Laguna
X15410 administration Chicago
Create the standard hierarchy for the PH (where X=1) and US (where X=2) following the chart above. K001 e.g. would represent the cost centers assigned to the Philippine Company code and K002 would represent all cost centers in the US Company code.
Not all cost centers are relevant for both companies.
Configure cost centers for all primary and secondary costs for actual and planned postings. Service cost centers also have to be managed on a quantity basis.
- The cost center currency corresponds to the company code currency.
- The validity period for the cost centers is from 01.01.2002 until 12.31.9999
- Assign the cost centers to a business area of your choice.
The ABC Motors international has decided to attend a rally held in Clark Field, Pampanga each year to promote their street motorcycle model. In an attempt to prove that there is actual business value to this annual free for all, the marketing manager has requested to see a detailed analysis of the commitments and the actual costs. An internal order will be used to track and report these costs. The costs will be settled to the sales Laguna cost center once all costs have been accounted for. In addition AMI maintains strict budget controls over the actual costs.
Create an internal order type for promotions and marketing events that allows recording commitment items.
6.5 Planning –KP34 create planner profile
The prices for activity types should represent given standards and not calculated values. Generate a plan for the following key figures, activity types and cost elements in the PH Company. Check with production for additional requirements.
6.5.1 Statistical Key Figure Planning 91000 – No. of employees.
To apportion the cost of the cafeteria corresponding to the no. of employees of the single cost center, the ratio for the following cost centers must be planned as a constant.
- General Cost center 15 employees
- Service cost center 45 employees
- Street motorcycle assembly 50 employees
- Motocross motorcycle assembly 60 employees
- Material 25 employees
- Distribution and administration 20 employees
To apportion the cost of energy corresponding to the planned energy consumption rates of the single cost center, the key figure for the following cost centers must be planned as a constant:
- General cost center 1000kwh
- Service cost center 1500kwh
- Production 13000kwh
- Material 1500kwh
- Distribution 3000kwh
The activity type “repair” must be planned on cost center X12100 plant maintenance with the following values:
- Planned activity 2000hr
- Standard rate PhP45.00/hr
The activity type “assemble brakes” must be planned on cost center x13100 street motorcycle assembly with the following values:
- Planned activity 20000 hr.
- Standard time PhP15.00/hr.
- Planned activity 25000hr
- Standard time PhP15.00/hr.
The activity type “assemble motorcycles” must be planned on cost center X13100 street motorcycle assembly with the following values:
- Planned activity 40000hr
- Standard time PhP18.00/hr
- Planned activity 45000hr
- Standard time PhP19.00/hr
Generate a plan for the following cost elements in ABC Motors International:
Cost center X11000- General CC
- 430000 salaries PhP150, 000.00 yr.
- 415000 salaries PhP 80,000.00 yr.
- 415000 cost for external procurement PhP120, 000.00 yr.
- 421000 indirect labor costs PhP60, 0000.00 yr.
- 430000 salaries PhP100, 000.00 yr.
- 415000 cost for external procurement PhP150, 000.00 yr.
- 421000 indirect labor cost PhP80, 000.00 yr.
- 415000 cost of external procurement PhP100, 000.00 yr.
- 430000 salaries PhP100, 000.00 yr.
- 400000 other raw material PhP400, 00.00 yr.
- 420000 direct labor cost PhP480, 000.00 yr.
- 430000 salaries PhP100, 000.00 yr.
- 400000 other raw material PhP500, 000.00 yr.
- 420000 direct labor cost PhP500, 000.00 yr.
- 430000 salaries PhP110, 000.00 yr.
- 415000 cost of external procurement PhP350, 000.00 yr.
- 430000 salaries PhP200, 000.00 yr.
- 476000 office supplies PhP25, 000.00 yr.
- 430000 salaries PhP200, 000.00 yr.
- 476000 office supplies PhP40, 000.00 yr.
- 476500 general management costs PhP100, 000.00 yr.
- 416100 Electricity, fix PhP10, 000.00 yr.
- 416200 Electricity, variable PhP190, 000.00 yr.
6.5.7 Planned Assessment
Costs have been planed and entered into the cafeteria cost center. Within the framework of plan assessment, the costs will be assessed based on the number of employees within the corresponding cost centers. Enter the corresponding sender recipient relationship.
6.5.8 Internal Order Planning
Plan the following costs for the Clark Field Rally & Beer Drinking Exhibition order:
- Travel Expenses 10,000
- Exhibition Booth Rental 1,200
- Promotion Material (including beer) 36,000
- Miscellaneous Expenses 250
6.6.1 Business transactions
Ensure that primary costs from MM and SD have been recorded in the cost centers. Create purchase requisitions for accessories and liquid supply you intent to use on the rally. Process the requisitions forward to partial goods received.
In addition, enter the following FI transactions:
- Customers and vendors invoices, debit and credit memos on cost center
- Energy cost on the collective cost center
- Direct labor costs and salaries on material cost center
- Indirect labor costs on overhead cost center
- Actual costs for the Clark Field Rally
Reproduce the following actual transactions for the internal cost allocation posting of statistical key figure 9100
- General cost center 15 employees
- Service cost center 45 employees
- Material 25 employees
- Distribution and administration 20 employees
Perform an actual assessment similar to the planned assessment.
6.6.4 Actual Order Settlement
Perform a settlement of your Clark Field Rally Order To the Roces Avenue sales cost center.
6.7 Reporting
- Analyze the corresponding transactions in view of cost centers and cost elements.
- Perform a customer account analysis.
- Display vendor or customer’s line items and drill down to originating documents.
A limited month-end closing should be completed in the respective company codes based on the current month. Therefore, it is necessary to close the accounting period by the last day of the month and to open the new period for the next month. Maintain the corresponding tables. Draw up the preparation of balance sheet and a profit and loss statement. Identify the account balance changes from prior month and reconcile the differences to the corresponding transactions.
6.8.1 Financial Statements
In order to prepare balance sheet and profit and loss statement at the subsidiary level, a financial statement version with the corresponding hierarchy levels has been created.
Version Name: MSCA
Each group is totaled and sub-totaled. Each position has its allocated text. G/L accounts have been allocated to the lowest level. Revise if necessary.
