Key points while PCA configuration:

Profit Center Accounting (EC‑PCA) is being used to determine profits and losses by profit center using period accounting approach.

 

 

1. Set Controlling area – OKKS
2. Maintain Controlling area settings - 0KE5

o        In this IMG activity you define the general control parameters for the controlling area.

o        The first step you need to take is to enter the name of the standard hierarchy of profit center master data. The system creates the standard hierarchy automatically when you save.

o        The dummy profit center receives all the postings in your system to objects, which are not assigned to a profit center. This ensures that your data will be complete in Profit Center Accounting. This field is displayed here for informational purposes only. You create the dummy profit center under Master data -> Dummy center.

o        The checkbox Elimination of internal business volume for Profit Center Accounting is ticked for the controlling area OP01

o        Currencies:

o        Profit Center Local Currency Type    = Controlling area currency

o        Profit Center Local Currency = USD (as this is the group reporting currency)

o        Store Transaction currency: Yes

o        Valuation view = Legal valuation

o        ALE Distribution method: No distribution to other systems

o        Currency Type changed to 30. This is as per OSS Note 119428.This note recommends keeping the PCA currency type to 30 if the currency type for the controlling area is 30 since the currency type in Controlling area settings is 30 the PCA Currency type is changed to 30.

3. Activate Average Balance Ledger – 0KE6: The average balance ledger is not being used hence the 8Z ledgers have been kept as deactivated.
4. PCA –Allow balance C/F: In PCA the balances have been configured to allow carry forward. The Pre requisite are that retained earnings accounts have been maintained.
5. Set Control Parameters for Actual Data -1KEF: As soon as Financial Accounting entries are been made the PCA – 8A Ledgers will be updated simultaneously.
6. Maintain Document Types:  GCBX -> Document type maintained is A0. The three check boxes are for:
1. The transaction currency,
2. Local/company code currency and
3. Third currency determines which currencies are stored for this document type has been used.

SL:  Maintain additional document type. This needs to be used when correction documents, (to rectify data posted from Finance and other modules) are posted during the test phases for the period end scenario.  This process will be used only during the test phases and hence this document type will not be transported to Production. 

7.      Maintain Number ranges for local documents - GB02: The number assignment is dependent on the company code

 

8.      Maintain Automatic account assignment – OKB9

 

9.      Choose Accounts:  3KEH: In this activity, you define which accounts or account intervals you want to transfer to Profit Centre Accounting. If no profit center is specified in a posting, the system uses the default profit center for the account or account interval.

1. BS readjustment: The balance readjustment program read all AR, AP and TAX postings (posted without or with profit center DUMMY). It allocates the correct profit center to AR/AP and TAX and creates postings in FI and In the period end-closing schedule we also run the PCA AR/AP update where all open items (AR/AP) are updated in total in PCA per profit center. The offset postings are updated real time. This means we have double counting in PCA in the AR/AP area. To solve this the readjustment accounts are removed from 3KEH.

10.   Derivation Rules for Finding the Profit Center: 3KEI: 3KEH configuration is used for determining default profit centres for all Balance Sheet accounts, other than reconciliation accounts, where the COB cannot be determined. These accounts are therefore, assigned to Corporate or Financing. Certain Balance Sheet accounts are defaulted to DUMMY because the COB cannot be determined at time of posting, and should not be reported against any particular COB from a 'day to day' perspective. They are, however, dealt with during the period end and eventually are allocated to the COB's guidelines.

 

11.   Adding fields to PCA distribution /assessments: Transaction GCA6: View/Table: V_T811I

12.   Assignment of Profit Centres to Co codes: In this activity the profit centres are assigned to company codes. This can be done while changing the Profit center or can be done collectively. Transaction KE52, KE56

13.   Perform Account Control for Valuation Differences: When payables and receivables are transferred to Profit Center Accounting, the system adjusts valuation differences arising from foreign currency revaluation. In this activity, you decide which account these adjustments through foreign currency revaluation are to be posted to. There are two possibilities here:

§         Posting to the General Ledger account for payables/receivables

§          Posting to the balance sheet adjustment account of the general ledger account for payables/receivables

Currency Type for Controlling Area:

The controlling area currency type determines which currency is allowed as controlling area currency and whether the CO area currency can differ from the currency of the assigned company codes. CO area currency is either set by the user or derived from other organizational units.

1. The assignment control indicator, together with the currency type, determines the controlling area currency and whether to activate or deactivate the other company code currency indicator.
2.  You can select currency type 10 only if all company codes assigned to the controlling area use the same currency.
3. If you select 1 as the assignment control, the R/3 System uses the default setting 10 as the currency type.
4. If you select currency type 40 or 50, the company codes must either be in the same country, or the countries must use the same index-based currency or hard currency.
5. If you select currency type 60, the company codes must belong to the same company, or the companies must use the same currency.
6. If you select currency type 20, specify the currency. With currency types 40, 50, and 60, specify the currency only as long as no company codes have been assigned. If company codes have been assigned, the R/3 System defaults the currency automatically

Difference between Unplanned depreciation and Manual depreciation

First of all an asset will have depreciation keys.

These depreciation keys have the control for calculating the automatic depreciation.

If you maintain a normal depreciation key, this will automatically forecast the depreciation for the open FYs.

Apart from the above planned ordinary depreciation, you can post unplanned depreciation also, if any unforeseen conditions happen.

Example:

 

On 31.08.2009 your asset's NBV is 5000$ (after august depreciation run also), but if you feel that (client) this asset's value is further down according to the current market value, you can pass a unplanned depreciation (ABAA) for an amount of 100$. So with this transaction your asset's NBV as on 31.08.2009 will become 4900$.

By passing ABAA, system will not post any accounting doc, since it creates an AA internal document. So you need to do a repeat depreciation run for the august period, then the system will check the asset for any unposted planned/unplanned depreciations to it. So at this point system will pass that amount to accounting.

But where as manual depreciation is concerned...

You cannot post any unplanned depreciation to an asset, which is having depreciation key that does not forecast planned depreciation values for the open FY.

Depreciation key MANU is the standard depreciation key, which will not forecast any planned depreciation to it.

Accounting Entries related to MM transactions...

Initial stock entry:

Movement type - 561(Receipt per initial entry of stock balances into unrestricted-use)

TCODE - MB1C

FI Document Type - WA

89	Raw material	BSX		S
91	Initial Stock entry	GBB	BSA	H

Physical inventory differences:

Movement type – 702 (Goods Issue – Physical Inventory difference) this is triggered because of the movement type 102, which is given while calculating the difference – INV: for expenditure/income from inventory differences

TCODE - MI07 (MI01 & MI04)

FI Document Type - WI

81	Inventory differences – G/L	GBB	INV	S
99	Raw material	BSX		H

Goods Issue to Production Order:

Movement type - 261 (Consumption for order from warehouse) – VBR: for internal goods issues (for example, for cost center)

TCODE - MB1A

FI Document Type - WA: Goods Issue

81	Raw material Consumption	GBB	VBR	S
99	Raw material	BSX		H

In case Movement type given is 201(Consumption for cost center from warehouse), at the time of MB1A system asks for the COST CENTER & GENERAL LEDGER. Here, the account determination happens directly from MB1A and not from the OBYC. Accounting entry will be same as above except the 'Raw material Consumption'; it triggers whatever the GL given.

Goods Issue / Delivery: SD

Movement type - 601 (Customer delivery) – VAX: for goods issues for sales orders without account assignment object (the account is not a cost element)

TCODE - VL02

FI Document Type - WL: Goods Issue/Delivery

81	Mater. consumed/trading goods without cost element COGS	GBB	VAX	S
99	Finished Goods	BSX		H

Goods Receipt: FG PP

Movement type - 101 (Goods Receipt) – GBB-AUF: for goods receipts for orders (without account assignment) and for order settlement if AUA is not maintained

TCODE - MB31 Goods Receipt for Production Order

FI Document Type - WE: Goods Receipt

89	Finished Goods	BSX		S
91	Inventory change – factory output COGP	GBB	AUF	H

Goods Receipt: RM MM

Movement type - 101 (Goods Receipt)

TCODE - MIGO Goods Receipt for Purchase Order

FI Document Type - WE: Goods Receipt

89	Raw Material	BSX		S
96	GR / IR Clearing account	WRX		H

Invoice Receipt: RM MM

Movement type - 101 (Goods Receipt)

TCODE - MIGO Goods Receipt for Purchase Order

FI Document Type - WE: Goods Receipt

86	GR / IR Clearing account	WRX		S
31	Vendor account	KBS		H

KBS – is without any account determination and posting keys are 81 & 91. It triggers when there is no material is assigned in the PO at that time.

WRX – In case of any posting required without material, account determination should be without valuation class.

If price changed at the time of IR, then based on the difference in the material price system posts amounts to particular material account and not to the price difference account (this is related to the materials with price control – V).

Material Valuation: MM

Movement type -

TCODE - MR22 Dr/Cr Material – material valuation (below given calculation) & MR21: Price Change (Difference amount posts to the material account and calculation is ((New price – Old price) * Quantity)

FI Document Type - PR: Price change – Below entry in case of price increase

89	Raw material	BSX		S
93	Material Valuation	UMB		H

Calculation - {Current Stock Value + (Amount given in MR22 / Quantity given in MR22 * Cr. Quantity)}

Billing Document: SD

TCODE - VF01 Billing - VF11 Cancel Billing

FI Document Type - RV: Billing document transfer - RW: Reversal of billing

01	Customer account	BSX		S
50	Sales Revenue account	UMB		H

TCODE: KANK Maintain Number Ranges for Controlling Documents

In this IMG activity you create number ranges for business transactions in Controlling or change existing settings.

 

1. For every posting in CO the SAP System generates a numbered document.
2. The document numbers are unique to each controlling area, since each number is assigned only once.
3. In CO, there are no legal requirements for a continuous assignment of document numbers.
4. To improve performance, after each restart of an application server, a maximum of 100 document numbers for each number range are not assigned.
5. Every transaction that you carry out on the controlling area level has to be assigned to a number range group.
6. A number range group, in turn, includes two document number intervals:
1. An internal interval for all documents to which the user did not explicitly assign a document number;
2. An external interval for all documents where the user assigned the document numbers, or which are brought into the SAP system from a non-SAP system (for example, through batch input) and the original document numbers are to be retained. If no external document number is given during posting, the SAP system uses the next open number from the internal number interval of the transaction it belongs to.
7. Requirements you have system authorization for maintaining number ranges. (Authorization object S_NUMBER).
8. Note you define the document number range in CO independently from the fiscal year.

 

Recommendation

 

1. SAP recommends that you create separate document number ranges for plan and actual cost transactions so that, when reorganization programs run separately for plan and actual data, the number ranges can also be reset separately.
2. For transactions seldom used, such as reposting at period-end closing, you should not create individual number range groups. Otherwise, note that no more than 100 document numbers are assigned for system performance reasons on each day that such a transaction is started.
3. If you work with several controlling areas, which are to use the same number range intervals, it is easiest to carry out the definition for one controlling area only. Choose Copy to transfer your settings to other controlling areas.

 

Activities

 

1. Check whether the standard settings for controlling area satisfy your requirements. If you are not going to work with controlling area, you can transfer the number ranges to your controlling area by choosing Copy.
2. If necessary, create new number range groups.
3. Maintain the respective number intervals for the number range groups you created. Ensure that the number intervals do not overlap with those of other groups.

Assign the business transactions that you wish to use to the respective number range groups. For settlement documents you have different TCODE for number ranges.