cost center assignment to plant

Explaining the Purpose of Cost Center Accounting

After completing this lesson, you will be able to:

• Define the purpose of cost center accounting

Purpose of Cost Centers

Lesson overview.

In this lesson, you will learn about the reason for using a cost center as an assignment object to collect overhead costs and get to know the role of a cost center hierarchy.

Your company consists of different departments like Accounting, Manufacturing, Marketing, and so on. All of these departments are accountable for the costs that are incurred in their area of responsibility. The manager of the marketing department, for example, must make sure that all the expenses which are caused by his department – like consuming office supplies, electricity, or IT support – are tracked accordingly.

From a management accounting perspective, the departments are represented by cost centers. Each cost center is assigned to the person responsible – the manager. This person is accountable for all costs incurred in their area of responsibility.

Costs can also be planned so that you can compare the actual expenses with the planned values for each cost center. This enables you to analyze where your cost center has caused less (or more) costs than expected.

By charging the cost center with costs and monitoring them closely, you can clarify the following questions:

Tracking costs using Cost Center Accounting helps to identify cost drivers in the company and to understand why costs are developing in a certain way.

Cost Center Standard Hierarchy

Cost centers are not only cost objects but also used to represent the whole company from a management accounting perspective. In SAP S/4HANA, the organization chart is constructed through the cost center standard hierarchy.

Let’s have a look at how this hierarchy comes into play. Imagine the following scenario:

The following graphic provides you with another example of how cost centers can be arranged within a cost center hierarchy.

The top node is always connected with the controlling area. Apart from that, you are free to build up the structure depending on your organizational chart. In this example, there are further nodes created for each company code, department, and sub-department. All cost centers are assigned on the lowest node within a branch of the hierarchy.

Select the different nodes of the standard hierarchy to see more details.

Now, you can explain that a cost center tracks the cost and revenue assignment for areas of responsibility and you understand that a cost center is part of a standard hierarchy that represents the overall enterprise organization.

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• Production planning

Cost & work center interaction in SAP PP

• Linnart Felkl

What is a cost center?

• A cost center is an organizational sub-unit that incurs costs
• Its purpose is to enable a transparent overview of costs by organizational and functional criteria
• A cost center is defined having either responsibilities, spatial areas or other more accounting-technical aspects in mind
• E.g. in many companies a cost center can be viewed as an area of responsibility where costs are incurred
• A cost center is assigned to a controlling area
• Mapping costs to cost centers lets managers see where costs are incurred in the organization
• Cost centers are created with TC KS01

Cost center and work center relationship

• Work centers from more than one plant can be assigned to the same cost center
• Within a given period of time a work center can only be assigned to a single cost center
• All work centers have to be assigned to a cost center
• Operations conducted at work centers contribute to the costs incurred by an organization

Activity types evaluated in a cost center

• A cost center evaluates activities
• A cost center evaluates only those activity types that are defined for the cost center’s controlling area
• Activity types are defined in the controlling area and they are used for deriving the internal cost/price for activities performed internally
• A work center can only use those activities that have been defined in the work center’s cost center

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SAP Controlling: Assigning and Checking Cost Component Structures

In SAP Controlling, a company code determines which cost component structure the standard cost estimate uses, which ensures that the same cost component structure is used for all plants and costing variants in a company code.

If you use different cost component structures in different plants, the standard cost estimate in one plant cannot access the results of standard cost estimates in another plant. You cannot transfer costing data for materials transferred from one plant to another.

For other cost estimates, the cost component structure is determined through the combination of company code , plant, and costing variant.

To access assignment of organizational units, double-click Assignment: Organiz. Units shown in the first figure below. Once selected, you should see the second figure display.

In this screen, you can assign cost component structures to organizational units such as Company Code , Plant , and Costing Variant . Some entries in this example employ masking. In the Plant column, both rows have the entry ++++ , which is a shorthand method of assigning cost component structures to all plants. You can employ the same technique of masking in many other screens throughout the system.

Specific entries always take priority over masked entries. Here’s an example:

In the Costing Variant column shown above, the row with the specific IPC5 entry takes priority over rows with masked entries in the same column. When you create a cost estimate for any company code with costing variant IPC5, the system will use main cost component structure 07 and auxiliary cost component structure 02. All other cost estimates for these plants will use main cost component structure 01 and auxiliary cost component structure 02.

Now that we’ve discussed assigning organizational structures in general, let’s look first at assigning the cost component structure and then checking this assignment.

Assigning Organizational Units with Cost Component Structures in SAP

The main cost component split is the principal cost component split used by a standard cost estimate to update a standard price. The main cost component split can be for COGM or for a primary cost component split. You assign the main cost component structure in the above figure. You’ll need to widen the columns so you can see the entire text in the column headings as shown below.

You assign the main cost component structure in the first column and the auxiliary cost component structure in the last column. You don’t have to assign an auxiliary cost component structure, but you do need to assign a main cost component structure to each row you define in this screen.

You can use the auxiliary cost component structure in parallel to the main cost component structure to allow comparisons and analysis. You can use the auxiliary cost component structure to analyze costs in cost estimates and CO-PA. When viewing a cost estimate with an activated auxiliary cost component structure, you can switch between the main and auxiliary cost component structures.

You assign an auxiliary cost component structure to an organizational unit in the last column in the figure above. Follow these additional steps needed to activate the auxiliary cost component structure:

1. Create an auxiliary cost component structure.

2. Create a transfer structure mapping the auxiliary cost components to the main cost components as shown below:

3. Assign the auxiliary cost component structure to the plan version per fiscal year in the Price calculation tab shown below.

4. Assign the auxiliary cost component structure to organizational units. See below.

5. Automatically calculate the plan activity price.

You don’t have to enter an auxiliary cost component structure. In most cases, the COGM cost component structure alone provides sufficient cost component reporting. The auxiliary cost component structure is available if you need additional reporting on primary costs, especially in some European implementations.

Next, we’ll look at a quick way to check assignment to organizational units.

Checking the Assignment to Organizational Units

You can check the assignment of cost component structures to organizational units by inspecting the costing variant. Take costing variant PPC1 as an example. Display costing variant PPC1 with Transaction OKKN or double-click the costing variant in the Costing Data tab of a cost estimate.

Select the Assignments tab and click the Cost Component Structure button to display the screen shown below.

The main cost component structure assigned to company codes 0001 and 0005 is 01, and the auxiliary cost component structure assigned is 02.

You can also assign a cost component structure to a plant. To add “Plant” as a column in the previous figure, click the down-pointing arrow to the right of the grid icon and select Change Layout to display this screen:

Double-click Plant to move it across to Displayed Columns and press (Enter) to display the screen shown below.

TIP : Click the Save icon before pressing (Enter) to save this layout.

You can now see the Plant column in the cost component structure assignments for the costing variant.

Notice the SBO Explorer (circle) icon available with Enhancement Package (EHP) 5. This icon allows you direct access to SAP BusinessObjects Explorer.

This blog post summarized the process for assigning organizational units to cost component structures in SAP Controlling. After assigning these units, you learned how to check them. You also read a discussion of both the main cost component structure and the auxiliary cost component structure.

Editor’s note: This post has been adapted from a section of the book Product Cost Controlling with SAP by John Jordan.

Recommendation

Looking for a comprehensive guide to product costing in SAP (SAP CO-PC)? With this best-seller, you’ll begin with a breakdown of how to manage master data and configure settings in SAP CO. Next, you’ll learn the nitty-gritty details of integrated planning, from creating cost estimates to handling planned costs, actual costs, and final settlements. Contains coverage of SAP HANA, current trends in product cost controlling, and other new functionalities!

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• WSRS_DB_PLNT_CC - SAP Retail Store: Assignment of Cost Centers to Plants

SAP Table WSRS_DB_PLNT_CC

Sap retail store: assignment of cost centers to plants.

WSRS_DB_PLNT_CC (SAP Retail Store: Assignment of Cost Centers to Plants) is a standard table in SAP R\3 ERP systems. Below you can find the technical details of the fields that make up this table. Key fields are marked in blue.

Additionally we provide an overview of foreign key relationships, if any, that link WSRS_DB_PLNT_CC to other SAP tables.

WSRS_DB_PLNT_CC table fields

Wsrs_db_plnt_cc foreign key relationships.

Cost center plant assignment Table in SAP

• A061 Table for Controlling Area/Cost Center Type/Cost Center Table Type : POOL Package : VKON Module : AP-PRC-PR
• CRCO Table for Assignment of Work Center to Cost Center Table Type : TRANSP Package : CR Module : CRM
• IDCN_ZJFPRCTR Table for Assignment of Cost Center to Profit Center Table Type : TRANSP Package : ID-FI-CN Module : FI-LOC
• SMOWRKCNT Table for Work Center to Cost Center Allocation Table Type : TRANSP Package : SMO3 Module : CRM-MSA
• CSSK Table for Cost center /cost element Table Type : TRANSP Package : KBAS Module : CRM
• T024W_CCP Table for Plant/Supplying Plant Assignment for Extended Source Determ. Table Type : TRANSP Package : ME Module : SRM-EBP
• WRF_RPR_WAPG Table for Assignment of Plant Grouping to Local Plant Group No. Table Type : TRANSP Package : WRF_RPR_IPGRP Module : LO-MD-PR
• TCKH2 Table for Assignment: Cost Element Interval - Cost Component Structure Table Type : TRANSP Package : CKJ1 Module : CO-PC-PCP
• TKV11 Table for Target Cost Versions: Cost Element Group Assignment Table Type : TRANSP Package : KKS Module : CO-PC-OBJ-PER
• CRMC_UI_WC_A Table for Assign Work Center Link Groups To Work Center Table Type : TRANSP Package : CRM_BSP_UI_FRAME_CORE Module : CA-WUI-APF
• ALM_NO_PL_WC_SD Table for Plant and Work Center maintenance Server Driven Notification Table Type : TRANSP Package : ALM_ME Module : PM-WOC
• DIWPS_HEAD Table for Reallocation: Conversion Plant/Work center Table Type : TRANSP Package : DI_WPS9 Module : IS-AD
• DIWPS_OPER Table for Reallocation: Conversion Plant/Work center Table Type : TRANSP Package : DI_WPS9 Module : IS-AD
• DIWPS_WORK Table for Reallocation: Conversion Plant/Work center Table Type : TRANSP Package : DI_WPS9 Module : IS-AD
• /CUM/CUNITWERK Table for CU: TL selection: group center for plant, virtual CUI deter. Table Type : TRANSP Package : /CUM/BASE Module : PM-WOC-MO
• A008 Table for Plant/Additional selling plant Table Type : TRANSP Package : VKON Module : AP-PRC-PR
• T5B9P Table for Plant/Plant Section (B) Table Type : TRANSP Package : PB12 Module : PA-PA-BE
• T5M1P Table for Client/Plant/Plant Section (Denmark) Table Type : POOL Package : PB09 Module : PA-PA-DK
• TMS_C_STOHOL Table for STO: Handover Loc depending on supply. plant & receiv. plant Table Type : TRANSP Package : INT_TM_ERP_BASICS Module : LO-INT-TM
• A026 Table for Controlling Area/Cost Center Table Type : POOL Package : VKON Module : AP-PRC-PR
• A058 Table for Controlling Area/Cost Center Type Table Type : POOL Package : VKON Module : AP-PRC-PR
• A062 Table for Controlling Area/Company Code/Cost Center Table Type : POOL Package : VKON Module : AP-PRC-PR
• A063 Table for Controlling Area/Business Area/Cost Center Table Type : POOL Package : VKON Module : AP-PRC-PR
• A123 Table for Discount Type/Resp. Cost Center Table Type : TRANSP Package : VKON Module : AP-PRC-PR
• A132 Table for Price per Cost Center Table Type : TRANSP Package : KBAS Module : CRM
• B066 Table for Cost center Table Type : POOL Package : VKON Module : AP-PRC-PR
• CFICR0C Table for FIN Objects for Cost Center/Resource Pool Table Type : TRANSP Package : CON_ACC Module : FIN-BAC-INV
• CMDT_CC Table for Generic Master Data: Cost Center Enhancements Table Type : TRANSP Package : KBAS Module : CRM
• CRMC_TOOL_CO Table for CRM Service: Cost Center / Activity Type for Tool Table Type : TRANSP Package : IAOM_CRMSERVICE_EXEC Module : CO
• CRMD_AC_ASSF4_05 Table for Search Help Values for Cost Center AC_ASSIGN Table Type : TRANSP Package : CRM_AC_ASSIGN Module : CRM-BTX-COI-SRV
• CSKS Table for Cost Center Master Data Table Type : TRANSP Package : KBAS Module : CRM
• CSKT Table for Cost Center Texts Table Type : TRANSP Package : KBASCORE Module : CO
• CSSL Table for Cost Center/Activity Type Table Type : TRANSP Package : KBAS Module : CRM
• FMDERIVE002 Table for Derivation rule:Cost Center/CE to Commitment Item/Funds Ctr/ Table Type : TRANSP Package : FMFS_E Module : PSM-FM
• FMDERIVE003 Table for Derivation rule:Cost Center to Commitment Item/Funds Ctr/Fun Table Type : TRANSP Package : FMFS_E Module : PSM-FM
• KBEROBJ Table for Settings for authorization objects in Cost Center Accounting Table Type : TRANSP Package : KBAS Module : CRM
• KCR_T_CCAT Table for Data Model for Cost Center/Activity Type Table Type : TRANSP Package : DI_KCR Module : CO-OM
• KCR_T_CCAT_TD Table for Data Model for Cost Center/Activity Type - Time-Dependent Table Type : TRANSP Package : DI_KCR Module : CO-OM
• MPO_CCMON_RULES Table for Cost Center Monitor: Rule Definition for Exception Reporting Table Type : TRANSP Package : MPO_COST_CENTER_MONITOR Module : CA
• NO2K Table for IS-H: Assign OU to Cost Center for Revenue Acct Asgmt Table Type : TRANSP Package : NBAS Module : CRM
• NOEK Table for IS-H: Assign Org. Unit to Cost Center Table Type : TRANSP Package : NBAS Module : CRM
• OFIC_COSTCTR_SRV Table for Orgfinder Customizing: Assign Cost Center to Service Org. Table Type : TRANSP Package : CRM_OFI_APPLICATION Module : CRM-BF-OFI
• OIFOCSKS Table for Object links - CO cost center (IS-Oil MRN) Table Type : TRANSP Package : OIF Module : CRM
• OIRBOCSKS Table for Object links - CO cost center (IS-Oil SSR) Table Type : TRANSP Package : OIR_B Module : IS-OIL-DS-SSR
• OIUH_RV_GLCC Table for Cross Reference GL to Cost Center Table Type : TRANSP Package : OIU_H Module : IS-OIL-PRA-REV
• ONRKL Table for Object Number Index, Cost Center/Activity Type Table Type : TRANSP Package : DONR Module : CRM-CIC
• ONRKS Table for Object Number Index, Cost Center Table Type : TRANSP Package : DONR Module : CRM-CIC
• SETHANAHIER0101 Table for Hierarchy table for Cost Center Groups Table Type : TRANSP Package : GBSE_HANA Module : FI-SL-SL-MD-SE
• SMOACTTYP Table for Cost Center to Activity Type Allocation Table Type : TRANSP Package : SMO3 Module : CRM-MSA
• T8J5E Table for JV cost center type for supplemental detail Table Type : TRANSP Package : GJV2 Module : CA-JVA
• T8J_SUS_CC Table for JV Cost Center in Suspense Table Type : TRANSP Package : GJVA Module : CRM
• ASS_TO Table Data element for To-date for assignment of a plant to a reference plant
• ASS_FROM Table Data element for From-date for assignment of a plant to a reference plant
• RPM_TV_PS_GROUP Table Data element for Group (Cost Center/Activity Type/Cost Element Group)
• CO_KAKST Table Data element for Account Assignment Type: Cost Center
• COWAY Table Data element for Evaluation path: cost center assignment
• PK_KNTTP Table Data element for Cost Center Account Assignment Category
• PMAIPP_KOSTL Table Data element for Cost Center for Automatic Derivation for IM Assignment
• /BEV2/EDKKOST Table Data element for Indicator: Assignment by Cost Center
• /SPE/COST_CTR_ACC Table Data element for Indicator: Cost Center as Account Assignment
• MMNGU Table Data element for Minimum Quantity of Plant in Plant Group
• FILKL Table Data element for Plant group (technical plant class)
• UMWRK Table Data element for Receiving plant/issuing plant

Cost center plant assignment related terms

Definitions.

SAP is the short form of Systems, Applications & Products in Data Processing. It is one of the largest business process related software. This software focused on business processes on ERP & CRM.

Like most other software, SAP also using database tables to store the data. In SAP thousands of tables are there to store different data. A table contains several fields and some of the fields will be key fields.

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