Controlling Configuration (Part 2)

Let’s go ahead and post some vendor invoices. Let’s go in FB60. Let me choose one of my vendors, let me choose Ford. So, you know, we did that before you enter your invoice date, posting date. So, we will post four different, you want to use all the GL accounts. Let’s post two invoices, let’s post it for 5,000. So, let’s choose the first GL account, 505050, amount 1,000.

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And then I will scroll to the right, this is new for us, scroll to the right for cost center. 

So, I will search for my cost center. So, I will choose finance, 50000. And let me do a second entry for the second GL account, 505060. Let’s do it for 1,000, and let’s do it one for each department. Let’s do it that way. Next, we will choose Consulting, 505070. And let’s put the remaining two. Let’s put 2000. 

So now I have a green light. So, I’m just posting some amounts. So, I’m doing one invoice, I can enter everything in one invoice if I want to. I can do that too. I don’t have to put for several invoices, but it’s up to you because what we are looking for, we want to post some data to these GL accounts, to these cost center, that’s what we want. And it’s up to you how you want to do it. So, I am doing one invoice for finance, and I’m using all the GL accounts, I’m using one cost center the first time. So let me go ahead and save this.

 

So let me post a second invoice. Let’s do it for 20,000. Let me choose my first GL account, second GL account, third, fourth. And let me do 5,000 each. Let me do my second cost center. 

So, this is my second cost center. Next, let’s do one for 40,000. So, I’ll use my third cost center in this one.

Let me post another invoice for my fourth cost center. Let’s do it for 80,000. 

So now I have these four cost centers. And we forgot one thing, we didn’t create our internal order. It’s very easy, it will take a minute. It’s transaction KO01, or I can go from here: Internal Order 🡪 Master Data 🡪 Special Function 🡪 Order 🡪 Create, KO01. So the only thing is it’s just a one step process, Z500 is our order type, and then we will just have to enter the project name, Project A, our company code.

And then we have to release it in Control Data tab.

This is the release button. Just release, that’s all we have to do, and then save it. And this is my order number, 200022. And then I can also use that in a document. If I’m entering in an invoice,

so, let’s enter another invoice, let’s do it for 15,000. So let’s use some of the accounts, not all.  Let’s do a three-line entry, 5,000 each. Okay so in this case, we will enter cost center and order. Order is internal order field. So, this will be the real entry that I discussed, and order will be a physical entry. So, let’s charge to one of our cost centers, and let’s do the other one, for the third, let’s do  another one. Here, I can do a search for my order. I can do it in my Controlling Area. And this was the one that I just created, 200022, Project A. And I will do this project and this project. 

So now I’m charging it to a cost center, in addition to a cost center, I’m also charging to an order or a project. And like I said, it will take a minute to create a project, KO01, and create it in your company code, and then you can charge it here. So now we have the postings. 

Now let me show you some of the reports where you can see how the groups are used. So, I will go in Accounting, Controlling, let’s go in Cost Center Accounting, and all the reports are in Information System, Reports for Cost Accounting. You see, it has a long menu, but you have to do that. 

And this is Cost Centers: Actual/Plan/Variance. We have not entered any plan yet, so we will only see actual. We will see 0 in the plan values. Because we have not entered plan, we only have actual amount that we have entered in the invoice. So let me double click on this. And then it will ask me my Controlling Area, my Fiscal Year, Period from and to, Plan Version. 

So, I’m going to use 0, it doesn’t matter because there are no values in my plan. Here is the cost center group, now it will come into play. Either I can enter my individual cost center here, I can enter them individually, like, from 50,000 to 50,030. This is from and to. The other option is I can enter the cost center group, so I don’t have to list them individually. Same thing. So, in the selection parameters, what I have, I have cost center and I have cost element. Basically, the department and the GL accounts, in other words. So, from these two lines, I have to use one of them, and from these two lines, I have to use one of them. In the case of cost element, I can use the cost element group, or I can list them individually or in a range. So, let’s do that. Let’s use the cost element group in this case, and in this case, use the cost center group. So let me use my group, let me use my standard hierarchy, which is 1000_STD. This will include both subgroups and the four cost centers. So let me run the report. I click on execute.

Now I have this report, this is the total. This is the total at my hierarchy level. These are my GL account that I just charged, 505060, and it’s listing it by my subgroup. And the yellow line is listing it that the first subgroup is spending1, and this is the total, 59 plus 41, this is the total, actually. And in my setting, I entered I will show you how to update the plan, that’s why plan is 100 otherwise, it should be 0. And then in the other GL accounts, in spending2, this is the total, and the total for spending2 is 78,000. And the total for both groups spending 1&2 is 178. And if I click on this group (1000_0100 G&A , Expenses), the number will change immediately. Let see now. If I click on the first group, so now the number will change, it’s now only this group now. 

And if I click on this cost center, it will change, now this is representing only cost center, IT. If I click on Finance, it’ll be only finance numbers. If I click on this 1000_0200 Operations), this is only now Operations. And then this is Quality, this is Manufacturing, and this is Research. And if I click on the top, that’s the total for my cost center group. 

So now in this selection parameters, we used the cost center group, which is here, and the cost element group, which is listed here. 

So I’ll show you the order report. It is very similar to this. And also, we can also drill down. If I click on the yellow line, this will let me drill down further. If I want to see, like, where it is coming from, I can just double click on it,

and then I’ll get a new window, then I can click on cost center actual line items. I’ll click on that. This will take me to another report. 

Now it is listing it by line item. Now I can modify the layout to have some more information, but basically, it will give me the line items. And I can go to the document level also, if I double click on it, the line, it will take me to the actual document. 

So, this was the invoice that I just posted. It’ll tell me, this was posted by me, this is what the timing, the date. So, it went back to the FI document, this is FI document, and now the previous screen is the CO document. And, also, one more thing. If I run on this FI document, I can click on Environment 🡪 Document Environment 🡪 Accounting Documents. This will give me both document numbers, the controlling document number, and the accounting document number, which is finance document. And both of these document numbers are linked. So, this is the cost center report.

 

Now if I want to see the project report for my project that I created, I will go in internal order. Internal Order 🡪 Information System 🡪 Report for Internal Orders 🡪 Plan/Actual/Variance, and I’ll go in this report. 

Here, only thing that changed was instead of cost center group, now it’s order groups or order. We didn’t create any order groups. We can just go by the order number. So, our order was 200022. So, I will run a report for this.

This is my report. My total cost 15,000 because I entered the invoice for 15,000 charges to these projects, and these are the GL accounts. And it is listing it by the cost element groups; Spending-1 is 10,000, Spending-2 is 5,000, Total is 15,000. If I double click on it, Orders: Actual Line Items, it will take me to the line item, if I double click on it, it will take me to the FI document. 

This was the invoice. Credit vendor, debit these expenses with this cost center. And see, profit center is automatically updated because this profit center was linked to this cost center, so automatically it’s picking up in the entry. We are not entering it, it’s coming up automatically. We are only entering cost center and order. Profit center is coming up automatically. So, basically, when we run a profitability report, these expenses will be included in this profit center. 

 

So, two things are remaining, I think. Let me go over that. One was the Plan Values. And the way to update plan values is very simple. You go in Controlling, Cost Center Accounting, go in Planning. And then you can go in Cost and Activity Inputs, and basically the transaction code is KP06. 

In KP06, you will enter the version. So, version 0, we are using for planning. So, from period 1 to 12, Fiscal year. So here you can enter your, if you want, your cost center hierarchy so it will put all your cost center. And then you can have your cost element group spending here so it will include all your expense GL accounts. And then you click on that mountain. Before that, click on the form-based checkbox. It will automatically update the cost elements you have in this. So, I have my cost center group, my cost element group. So now I’m entering my plan values.

So now this is for my first cost center, 50010. First cost center and all the GL accounts that are included in it. So let me just do 100,000 for each. I’ll click on save. And then this is updated here. 

Now I’m going to click this next one to go to the next cost center. So, it says 50010 right now. So let me update for others too. So now all my cost centers are updated. So now if I run any report, you will see the difference. If I run any report now, cost center information, if I run this report now, you will see the difference.

See, now plan values here are updated with the plan that I just entered with KP06. And it’s coming because, you know, when I’m running this report, I’m using plan version 0, and this is what I had when I updated it when I entered KP06. 

After updating the plan values and entering the actuals and also, the internal order is also very similar to enter plan for internal order. It’s KPF6.

So, for that if you go in Internal Order, Planning, Cost and Activity Inputs, KPF6, and then enter version 0, period 1 to 12, Fiscal Year, your Order Number, and your Cost Element group. And use form based, and then enter the Plan Values. Now if you run a report for your internal order, now you will get Plan Values for your order also.