Controlling Case Study
Cost Center Accounting (CO-CCA)
This case study explains an integrated cost center accounting process in detail and thus fosters a thorough understanding of each process step and underlying SAP functionality.
Step 1: Create Cost Center
Task Create three cost centers.
Short Description Create cost centers for cafeteria and maintenance and assembly departments.
Name (Position) Jamie Shamblin (Cost Accountant)
A cost center represents an organizational unit within a controlling area and specifies a uniquely definable instance where costs are incurred. A cost center can be based on functions, settlement specific, geography or cost responsibility.
To create a new cost center, use the transaction: KS01.
Note If the system prompts you to enter the relevant controlling area, enter
NA00. Press Enter to confirm.
On the following screen enter CC-CA### (replace ### with your number, e.g., 012) as Cost Center number. The cost center should be valid from 01/01 of the current fiscal year.
Now, press Enter to confirm.
Enter Cafeteria ### as the cost center Name and Cafeteria for the description. Also enter your name for the person responsible. Select cost center category Service cost center H and assign the cost center to hierarchy area Internal services N1200. In addition, choose business area Bikes via the F4-Help and currency USD.
Compare your entries with the screen shown below.
Click to save your cost center. You can acknowledge the yellow warning message about profit center accounting being active by pressing Enter.
Repeat the above process to create a cost center for the production maintenance department. Use the following data:
Cost Center: CC-MA###
Valid from: 01/01 of the current fiscal year
Name: Maintenance ###
Description: Production Maintenance Department
Person responsible: Your name
Cost center category: H
Hierarchy area: NA4300
Business area: BI00
Currency: USD
Click to save your cost center.
Repeat the above process to create cost center for assembly. Use the following data.
Cost Center: CC-AS###
Valid from: 01/01 of the current fiscal year
Name: Assembly ###
Description: Production Assembly Department
Person responsible: Your name
Cost center category: F
Hierarchy area: N4200
Business area: BI00
Currency: USD
Click to save your cost center.
Click on the exit icon to return to the SAP Easy Access Menu.
Task Create a new statistical key figure.
Short Description Create a new statistical key figure to allocate cafeteria costs.
Name (Position) Jamie Shamblin (Cost Accountant)
Because the cafeteria costs will be allocated to three cost centers (including itself), the number of employees in the cost centers is the allocation base for cost assessment. To allocate costs in CO, you will have to create a statistical key figure.
To create a new statistical key figure, follow the menu path:
Accounting ► Controlling ► Cost Center Accounting ► Master Data
► Statistical Key Figures ► Individual Processing ► Create
Enter EMP### (replace ### with your number) as the Stat. key figure number and press Enter.
On the following screen, enter Number of employees as name and choose Number of Persons (PRS) as the unit. Make sure the category Fxd val. is selected. Then, click .
Task Create secondary cost elements.
Short Description Create secondary cost elements to assess the cost of the cafeteria to the three departments within CO module.
Name (Position) Jamie Shamblin (Cost Accountant)
Internal cost flows are allocated in S/4HANA using secondary cost elements. In contrast to primary cost elements, secondary cost elements do not have any corresponding G/L expense accounts in the chart of accounts but instead are used to allocate costs within CO to responsibility centers (e.g., other cost centers
Note Because of performance issues, SAP S/4HANA stores cost elements together with G/L Accounts, but they are not G/L accounts. Following the path to create secondary costs will take you to the Edit G/L Account Centrally screen.
To create a new secondary cost element, follow the menu path:
Accounting ► Controlling ► Cost Center Accounting ► Master Data
► Cost Element ► Individual Processing ► Edit Cost Element
Enter 8000### as G/L Account and Company Code US00. Now, click Create
In the pull-down menu G/L Account Type and Account Group choose Secondary Cost(s). Type in the name Plan Asm. CC-CA### for Short Text and Planned Assessment CC-CA### for G/L Acct Long Text.
Note Secondary costs are costs incurred through in-house exchange of services, for example Repair costs that the company carries out itself. The opposite is primary costs, which are not self-produced, but sourced externally.
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