SAP - CO : Period End Closing Process

Period end closing process is a monthly activity in CO and it refers to the following areas:

1. Execution of allocation cycles to apportion cost from common or shared cost centers to final cost centers
2. Generation of monthly reports

The following tasks have to be executed at every period end closing:

• Ensure postings are completed from sub modules and sub modules have closed
• Execute all the active allocation cycles
• Check key figures to sub modules (i.e. total Cost Center Accounting figures to agree to total G/L expense accounts etc)
• Generate monthly reports
• Lock current posting period for controlling
  

SAP - CO : Statistical Key Figures

Statistical key figures serve as a basis for internal allocations and as references in the key figure analysis framework. Statistical key figures can be used for internal cost allocations, and can be defined as either fixed values or totals values.  There are two major types of allocation in SAP:

1. Distribution
2. Assessment

Distribution is the process of cost allocation used to allocate primary costs of cost center using the original primary cost elements.  In this method, the costs being allocated will be retained into the original cost elements.  On the other hand allocation by assessment could be applied to both primary and secondary costs using a secondary assessment cost element which is different from the original cost elements.  In this case, the costs being allocated will be posted to a secondary assessment cost element.

Statistical key figures are defined for assessment purpose:

The statistical key figures used are:

• Employees
• Man-hours
• Floor space
• Quantity by Finish Goods

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

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.