Controlling real time excerpts

Controlling > General Controlling

SAP standard settings copied to HHML and changes made in respective areas, wherever mentioned.

1.1 Organization

Controlling > General Controlling > Organisation

Controlling Area "HHML" is assigned to "HHML" Company Code.
Defaults settings of number ranges are were copied to Controlling Area HHML.


1.1.1 Maintain Controlling Area
Controlling > General Controlling > Organisation > Maintain Controlling Area
The cost accounting system uses controlling area as an organizational unit. Controlling Area delimits the company’s managerial accounting operations. Organization structure is replicated in the controlling system. The company code and controlling area can use independent chart of accounts, currency & business area.

Cost centers, internal orders, product hierarchy and profit centers /profitability segments are used to classify the controlling area. All inter organizational allocations refers to objects within the same controlling area. Multiple Company Codes can get assigned to a Controlling Area.

“HHML” Controlling Area is above company code- HHML and this could enable assigning other associate companies in future to Controlling Area-HHML.

The following settings are made at HHML

Controlling area HHML (HHML Controlling Area)
Fiscal year 2000 to 9999


Modules active: -
Cost centers Component active
Order management Component active
Commitments mgt Component not active
Profitability Analysis Component active for both types of Profitability Analysis
Activity-Based Costing Component not active
Profit center Component not active
Projects Component not active
Sales Orders Component active
S. O. with Commitment mgmt Component not active
Cost objects Component active
Real estate mgmt Component not active

Indicator to activate calculation with variances is ACTIVE

1.1.2 Maintain Number Ranges for Controlling Documents

Controlling > General Controlling > Organisation > Maintain Number Range

Number range object CO Document
Controlling area HHML


Number range interval: -


From number To number
0100000000 0199999999
0200000000 0299999999
0300000000 0399999999
0400000000 0499999999


The following transactions have been to the above number range:


Primary postings 0100000000 0199999999
COIN CO Through-postings from FI
KAZO Down payment
Planning transactions 0200000000 0299999999
CPPP ABC process assessment: plan
FIPA Payment scheduling
KAZP Plan cost center accrual
KOAP Plan settlement
KPIV Actual cost distrib. cost obj.
KPPB Standard cost estimate
KSII Actual price calculation
KSP0 Plan split costs
KSPB Plan assessment to CO-PA
KZPP Plan overhead (periodic)
KZRP Interest calculation (plan)
PAPL Profit Planning
RKP1 Planning primary costs
RKP2 Planning activities
RKP3 Planning secondary costs
RKP4 Planning stat. key figures
RKP5 Plan Revenue Types
RKP6 Planning activity-dep. Costs
RKP7 Planning act.-dep. sec. Costs
RKP8 Planning order costs
RKP9 Plan. act-dep.settlement costs
RKPB Periodic Reposting: Plan Data
RKPL Plan indirect activity alloc.
RKPQ Manual cost planning
RKPS Sec. planning with template
RKPU Plan overhead cost assessment
RKPV Plan overhead cost distrib.
RKPW Secondary order cost planning
RKPX Aty-dep. sec. order cost plan.
RKPZ Planning overhead credits
RKU1 Repost costs
RKU2 Repost revenue
RKU3 Repost CO line items


Actual postings (without primary postings) 0300000000 0399999999
CPPA ABC Actual process assessment
KAMV Manual cost allocation
KAZI Actual cost center accrual
KGPD Distribution acc. to peg
KKKP Control Costs (Primary)
KKKS Control Costs (Secondary)
KOAO Actual settlement
KSI0 Actual cost center split
KSOP Prim. Target Cost Calculation
KZPI Actual overhead (periodic)
KZRI Interest calculation (actual)
RKIB Actual Periodic Repostings
RKIL Actual inverse activity alloc.
RKIU Actual Overhead Assessment
RKIV Actual Overhead Distribution
RKL Actual activity allocation
RKLT Actual template allocation
RKN Actual non-alloc. activities
RRIB Seg. adjust.: Act.per.repost.
RRIU Segment adjust.: Act. Assess.
RRIV Segment adjust.: Act. distrib.


Other transactions 0400000000 0499999999
KABG Automat. WIP/results analysis
KABM Manual WIP/results analysis
KAFM Payment data
KAUS Calculate scrap
KEKB Unit costing
KEKZ Unit costing (overhead)
KFPI Transfer price allocation
KFPP Transfer price agreement
KPPZ Standard costing (overhead)
KSOS Sec. Target Cost Calculation
KSPA Assessment to CO-PA
KSWP Prim. Target Cost Calc. (WIP)
KSWS Sec. Target Cost Calc. (WIP)
KVAR Variance calculation
RXLX Predistribution of fixed costs
RKS Enter statistical key figures
1.1.3 Maintain Versions

Controlling > General Controlling > Organisation > Maintain Versions

Versions help to create independent data groupings in planning and in actual data, in planning, versions display alternative plan scenarios based on different planning assumptions. For example,

• the type of assumption for the forecast (optimistic, pessimistic)
• when the plan was created (original plan, updated forecast),
• how binding the plan is.


The data for the most likely version in planning normally appears in version 000. The plan data you enter here forms the basis for variance analysis.
General version definition: -


0 Plan/actual version Active
1 Plan version: change Active


Assigned Controlling Area: HHML

Assigned Operating Concern: HHML


Attributes: -
Currency type B0 (Operating concern currency)
Exchange rate type M (Standard translation at average rate)
Derivation date 01.01.2000


Assignment to Fiscal Years: -

Fiscal Year From 2000 to 2010
Controlling area HHML (HHML Controlling Area)
Version 0 (Plan/Act - Version)
Planning Copying allowed
Currency translation Ex.rt.type P (Standard translation)
Value date 01.04.2000
Price calculation Plan- 2 (Average Price)
Actual 3 (Cumulative Price)
Fiscal Year From 2000 to 2010
Controlling area HHML (HHML Controlling Area)
Version 1 (Plan version: change 1)
Planning Copying allowed
Currency translation Ex.rt.type P ( Standard translation )
Value date 01.04.2000
Price calculation Plan- 2 ( Average Price )
Actual 3 ( Cumulative Price)


1.2 Account Assignment Logic
Controlling > General Controlling > Account Assignment Logic

In HHML, Validation in CO-Module is used at line item level to validate User-ID and Cost Center maintained in a Z - table (ZQMTNAVALCC)


1.2.1 Define Validation

Controlling > General Controlling > Account Assignment Logic > Define Validation

In validation, the SAP System checks whether particular input values fulfil one or more of your user-defined conditions. These checks take place during the entry of values into the system. If the conditions are fulfilled, the input value is transferred into the system. If the conditions are not fulfilled, the SAP System displays a user-defined message.

Company Code : HHML

Validation : 0_CO_1 Validation for CO


Validation set at Line item to check User ID and Cost Center maintained in Z - table (ZQMTNAVALCC), for all transactions flowing to CO Module, other wise Error Message

" You are not authorised for cost center & "




Cost Element Accounting

Controlling > Cost Element Accounting

SAP standard settings

Various category of Cost Elements are created in the Master Data
Each posting of costs must be assigned to a cost element. The system differentiates between the following cost elements:
• Primary cost elements (equivalent to G/L Codes)
• Secondary cost elements (internal activities and cost allocation within your company).

The cost element type specifies the business transactions for which a cost element can be used.

The following primary cost elements are used in Cost Object Controlling:

• 01: These can be debited with all primary postings (such as FI, SD or MM). Accounting documents are generated for these postings.

• 22: These are required, for example, for settling order or project costs to CO-external objects. Examples of CO-external objects are fixed assets (AM), materials (MM), or G/L accounts (FI). Settlement generates an accounting document.

The primary cost elements are linked to G/L accounts in Financial Accounting.
The following secondary cost elements are used in Cost Object Controlling:

• 21: These are used for settling order or project costs to CO-internal objects. CO-internal objects could be orders, profitability segments, cost centers, and projects.

• 31: These are used for saving the data generated during WIP calculation or results analysis on the order or project.

• 41: These pass overhead costs from cost centers to orders, projects, and so forth.
• 43: These are used by the system in internal activity allocation to allocate costs.
The secondary cost elements are only used within the Controlling component.

Cost element groups

These group together similar cost elements. In Cost Object Controlling, the cost element groups are used to group together costs for settlement as well as for creating reports.

2.1 Master Data

Controlling > Cost Element Accounting > Master Data

Default settings made for cost centres.


2.1.1 Cost Elements

Controlling > Cost Element Accounting > Master Data > Cost Element

Manually activation for automatic creation of cost elements for G/L accounts done at HHML


2.1.1.1 Automatic Creation of Primary and Secondary Cost Elements

Controlling > Cost Element Accounting > Master Data > Cost Element > Automatic creation

Created a batch input session to automatically create primary cost elements, which were created as G/L ( Profit and Loss ) Accounts in Financial Accounting.


2.1.1.1.1 Make Default Settings

Controlling > Cost Element Accounting > Master Data > Cost Element > Automatic creation > Make Default Settings
All expenses G/L accounts were created as Cost elements with Cost Element Category '1'.And all income G/L accounts were created as Cost elements with Cost Element Category '11'.


2.1.1.1.2 Create Batch Input Session

Controlling > Cost Element Accounting > Master Data > Cost Element > Automatic creation > Create Batch Input Session

Batch Session was created for one time master data creation of Primary Cost Elements:
Company Code: HHML

Chart of Accounts: HHML
Controlling Area: HHML

The Validity Period: 1st April 2000to31st Dec 9999

2.1.1.1.3 Execute Batch Input Session

Controlling > Cost Element Accounting > Master Data > Cost Element > Automatic creation > Execute Batch Input Session

Executed the batch input session and thereby generated cost elements.

2.1.1.2 Create Cost Elements

Controlling > Cost Element Accounting > Master Data > Cost Element > Create Cost Element

Primary Cost Elements created through batch input session and Secondary Cost elements created manually as master data

2.1.1.3 Create Cost Element Groups

Controlling > Cost Element Accounting > Master Data > Cost Element > Create Cost Element group

HHMLGROUP: Cost Element Group created: The following is the structure of the same This Cost Element Group was created functional and allocation of costs to various other cost centres
HHMLGROUP HHML Cost Element Group


CONS.IND Consumables (Indirect)
TOOLS Cutting Tools
POWERFUEL Power and Fuel
FACADM.SAL FACTORY & ADMN. SALARY
FACTEXP Factory Expenses
INSURANCE Insurance Expenses
DEPRECIAN Depreciation Cost
EXCH.FLUC Exchange Fluctuation
REP.MAIN REPAIR & MAINTENANCE
MART.EXP Marketing Expense
MKTG.SAL Marketing Salary
MKTG.SELG Marketing Selling Expense
SELLING Sales Promotion
ADVERTISE Advertisement
DIST.EXP Distribution Expenses
ROYALTY Royalty
NONOPERN Expenses not related to Production
PROFITASST Profit on Sale of Asset
LOSSASSET Loss on Sale of Assets
BADDEBT Bad Debt
DONATION Donations
DEFREVENUE Deferred Revenue Expenses
INTGEREST Interest and Financial Charges
TERMLOAN Interest on Term Loan
FINCHARGES Other Financial Charges
OTHERS Others Interest & Financial Charges
OTHERINCOM Other Income

2.2 Reconciliation Ledger

Controlling > Cost Element Accounting > Reconciliation Ledger

Reconciliation Ledger is activated at HHML.

In case of assessment, distribution, order settlement and other CO transactions there can be a mismatch between FI CO business area wise financial results. If the company requires that cost of one business area in FI has to match with cost in the controlling area, the reconciliation ledger is activated. The FI-CO reconciliation transaction is to run every period end under the menu

Accounting Controlling Cost elements.

The G/L account used is OA10100400
with Document Type SU and Number Range 100000-199999

2.2.1 Activate Reconciliation Ledger

Controlling > Cost Element Accounting > Reconciliation Ledger > Activate Reconciliation Ledger

Reconciliation Ledger is activated for HHML


2.2.2 Maintain Adjustment Accounts for Reconciliation Posting

Controlling > Cost Element Accounting > Reconciliation Ledger > Maintain Adjustment account for Reconciliation Ledger

The following G/L account is used for Reconciliation


Chart of accounts HHML Hero Honda Motors Limited: Chart of Ac
Transaction CO1 CO - FI reconciliation posting


Debit Credit
OA10100400 OA10100400
2.2.3 Specify Document Number Range for Reconciliation Posting

Controlling > Cost Element Accounting > Reconciliation Ledger > Specify Document Number Range Reconciliation Ledger

Number range Object Rec. ledger document
CO area HHML

No From number To number Current number Ext
100000-199999
2.3 Information System

Controlling > Cost Element Accounting > Information System

SAP standard reports are being used at HHML

2.3.1 Maintain Cost Element Groups

Controlling > Cost Element Accounting > Information System > Maintain Cost Element Groups

Maintained earlier
2.3.2 Standard Reports

Controlling > Cost Element Accounting > Information System > Standard Reports
Standard Reports imported from source client '000'

2.3.2.1 Import Standard Reports

Controlling > Cost Element Accounting > Information System > Standard Reports > Import Standard Reports
Imported SAP standard reports from client 000, online, to the client '100'.

2.3.2.2 Generate Standard Reports

SAP standard reports that were imported, were also generated on client '100'.
Cost Center Accounting

Controlling > Cost Center Accounting

Default settings were used for HHML and changed wherever required.

Cost Center is an organizational unit within a controlling area that represents a separate location of cost incurrence. The definition can be based on functional requirements, allocation criteria, activities or services provided, physical location, and/or area of responsibility. Cost centers are combined into hierarchical decision, managerial, and responsibility groups. Cost center Accounting captures the overheads of the organisation.

The cost centers are attached to a Company Code, Business Area and a Profit Center. While creating a cost center hierarchy the business areas need to be kept in mind, which will facilitate reporting.


1.2 Activate Cost Center Accounting in Controlling Area

Controlling > Cost Center Accounting > Activate Cost Center Accounting

Cost Center Accounting ACTIVE in Controlling Area HHML


Controlling area HHML
Name HHML Controlling Area


CoCd->CO area 1 (Controlling Area same as Company Code)
Currency type 10 (Company code currency)


Currency INR (Indian Rupee)
Chart of accts HHML (Hero Honda Motors Limited: Chart of Accts)


Fiscal year variant V3 (April- March, 4 special periods)
Cost Center standard hierarchy HHML_CCH (HHML Standard Cost Center Hierarchy)
1.3 Master Data

Controlling > Cost Center Accounting > Master Data

Default settings were done to create master data for

• Cost Center
• Activity Type
• Statistical Key Figure
Through CATT

1.3.1 Cost Centers

Controlling > Cost Center Accounting > Master Data > Cost Center

Default settings were to create Cost Center


1.3.1.1 Maintain Standard Hierarchy

Controlling > Cost Center Accounting > Master Data > Cost Center > Maintain Standard Hierarchy

Cost Center Hierarchy created: HHML_CCH

• Production
• Production Service
• Tool Room
• Civil
• Maintenance
• Utility
• Marketing
• Administration







3.2.1.2 Maintain Cost Center Categories

Controlling > Cost Center Accounting > Master Data > Cost Center > Maintain Categories

SAP default Cost Center Category are used:
E Development
F Production
G Logistics
H Service cost center
L Management
M Material
S Social
V Sales
W Administration


1.3.1.3 Define List Variants for Group Processing

V Controlling > Cost Center Accounting > Master Data > Cost Center > Define List Variant

SAP Standard is being used


1.3.1.4 Create Cost Centers

Controlling > Cost Center Accounting > Master Data > Cost Center > Create Cost Center

Cost Center created with validity period from 1st April 2000 to 31st Dec 9999


1.3.1.5 Maintain Cost Center Groups

Controlling > Cost Center Accounting > Master Data > Cost Center > Maintain Cost Center Groups

HHML_CCH > HHML Standard Cost Center Hierarchy

PRODUCTION Production
ENGINE_PLT Engine Plant
ENG_PLT_D Engine Plant Dharuhera
ENG_PLT_G Engine Plant Gurgaon
FRAME_PLT Frame Plant
FRA_PLT_D Frame Plant Dharuhera
FRA_PLT_G Frame Plant Gurgaon
PRO_SERVIC Production Service
QUALITY_CO Quality Control
QUA_CON_D Quality Control Dharuhera
QUA_CON_G Quality Control Gurgaon
PPC Production Planning and Control
PPC_D Production Planning and Cont. Dharuhera
PPC_G Production Planning and Control Gurgaon
ENGINEERIN Engineering
ENGG_D Engineering Dharuhera
ENGG_G Engineering Gurgaon
MATERIALS Materials
MATR_D Materials Dharuhera
MATR_G Materials Gurgaon
MATR_HO Materials Head Office
STORES Stores
STORES_D Stores Dharuhera
STORES_G Stores Gurgaon
R_AND_D R & D
R_AND_D_D R & D Dharuhera
R_AND_D_G R & D Gurgaon
TOOL_ROOM Tool Room
TOOL_RM_D Tool Room Dharuhera
TOOL_RM_G Tool Room Gurgaon
CIVIL CIVIL
CIVIL_D CIVIL DHARUHERA
CIVIL_G CIVIL GURGAON
MAINT Maintenance
MAIN_D Maintenance Dharuhera
MAIN_G Maintenance Gurgaon
UTILITY Utility
UTILITY_D Utility Dharuhera
UTILITY_G Utility Gurgaon
MARKETING Marketing
CORP_MKTG Corporate Marketing
CORP_MKT_D Corporate Marketing Dharuhera
CORP_MKT_G Corporate Marketing Gurgaon
COR_MKT_HO Corporate Marketing Head Office
COR_MK_SPD Corporate Marketing Spares Dharuhera
COR_MK_SPG Corporate Marketing Gurgaon
ZONE_MKTG Zonal Marketing
NORTH_ZONE North Zone
SOUTH_ZONE South Zone
EAST_ZONE East Zone
WEST_ZONE West Zone
ADMIN Administration
ADMIN_D Administration Dharuhera
ADMIN_G Administration Gurgaon
ADMIN_SPD Administration Spares Dharuhera
ADMIN_SPG Administration Spares Gurgaon
ADMIN_HO Administration Spares Head Office