Professional Documents
Culture Documents
Chapter 7
Internal Orders
the organization u Overhead cost orders Overhead cost orders are used to monitor overhead costs independently of the cost center structure and process view.
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You could use overhead cost orders for long-term monitoring, for example, to collect the costs of minor repairs for a specified production machine and to distribute them according to their origin. You use the Overhead Orders (CO-OM-PA) component to process overhead cost orders in the SAP R/3 System. Together with Cost Center Accounting (CO-OMCCA) you can perform comprehensive overhead controlling. Figure 7-1 illustrates the integration of two cost centers from the cost center hierarchy. Within Cost Center Accounting, the cost centers exchange activities through the activity network. Additionally, cost center A posts a share of its costs to an overhead cost order, which collects across cost centers all costs for a particular job. The order settles the collected costs to cost center B and other cost centers (at the latest) after the job has been closed.
Fig. 7-1: Interaction Between Orders and Cost Centers in Overhead Controlling
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One of the functions of order types is to determine attributes for orders: u The order layout determines how the order master data is displayed on the screen. u You can specify which master data fields are to be considered when printing the order. u The integrated planning of orders with cost center planning allows you to update allocations directly on the cost centers. u Commitments management can be activated. u You can specify whether revenue postings are permitted. u For evaluation purposes, orders can be classified according to specified characteristics. u You can use the settlement profile to determine to which Target objects orders can be settled. u Deadlines can be defined for archiving orders.
Status Management
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Fig. 7-2: Example - Statistical Overhead Cost Orders for Vehicle Costs
Commitments Management
Purchase orders or purchase requisitions lead to financial obligations with varying degrees of commitment. Such obligations are described as commitments. A commitment ties up funds that are later to become costs. Therefore, commitments must be taken into account during funds monitoring. Commitments management ensures that you can consider expected future costs in Controlling at an early stage. A commitment is always identified with the value, and if necessary, the quantity of the cost element, the fiscal year, and the period when the costs are expected to be incurred. The system records each commitment in the currency of the triggering business transaction, for example, in the purchase order currency. Additionally, a conversion takes place in the house and object currency.
Currencies
Commitments from purchase requisitions are reduced automatically through assigned purchase orders and replaced with the corresponding purchase commitments. For partial purchase orders, the reduction occurs proportionally to the requested/ordered quantity.
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A commitment from a goods order is reduced through the corresponding goods receipts (=actual costs). For partial deliveries, the commitment is reduced in line with the quantity delivered. If an invoice is posted before the goods receipt, the commitment value is recalculated with the price from the invoice. Figure 7-3 shows how a purchase requisition in Materials Management is automatically identified as a commitment from purchase requisitions on an overhead cost order. When the purchasing department undertakes the corresponding goods order, this commitment is replaced with a purchase commitment. If the goods are delivered, the commitment is reduced by the corresponding actual costs or (for partial deliveries) partially reduced. After the invoice has been received, any price differences are posted. If the invoice is received before the goods, the purchase commitment is capitalized in accordance with the invoice (1a). This capitalized purchase commitment is reduced only after the goods receipt (1b).
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A commitment from the ordering of an external activity is normally reduced through the invoice receipt (= actual costs). For partial invoices, the commitment value is reduced by the invoice value. Along with the purchase value (goods/activity value), the procurement costs are also managed as purchase order commitments. They are displayed separately according to their origin, for example, freight, customs duty, packaging, and, if applicable, currency.
The reduction occurs manually by selecting the reservation document in a list or by directly entering the reduction amount (partial reduction). During the reduction of the funds reservation you can enter an assignment in the system for the triggering business transaction (such as an order or a purchase order). This assignment is used later for the audit trail.
Orders themselves cannot produce any activities as no resources are assigned to them.
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Periodic Allocations
If no other activity allocation is carried out, you can allocate costs using simple methods. To achieve this, you can use the functions for periodic allocations, which allow you to allocate costs easily between cost centers and orders. The definition of sender and receiver relationships occurs just as in cost center accounting.
Overhead Costing
You can also allocate overhead costs using overhead rates. Overhead costing can take place in the Overhead Orders component for each order using freely definable costing sheets. You can calculate overhead on planned and actual costs as well as on commitments. For the purposes of overhead calculation, you can assign a costing sheet to each order. The costing sheet determines: u The calculation base contains the cost elements on which overhead is to be calculated. Origin groups can be used to further differentiate within the cost elements. u There are percentage- and quantity- based overhead rates. After overhead calculation, the system displays the amount of overhead u The credit entry determines under which cost element the overhead is allocated, and which controlling object is to be credited. For each cost element or origin group to which you want to apply overhead, you must enter the required overhead and credit keys. You can simulate the overhead costing before final execution. The actual allocation of the overhead determined triggers a credit to the affected cost centers or orders and a debit to the orders receiving the overhead. This is recorded in a document.
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ments are then used to pass on the costs to stock- or results affecting target objects. The reconciliation ledger ensures that the affected Financial Accounting ledgers are reconciled with one another. Controlling therefore triggers the necessary FI postings. Settlement to external accounting can occur to: u Asset Management (FI-AA) u A G/L account in Financial Accounting (FI)
Processing a Settlement
The timing of the order settlement depends on the practical requirements of the order or the order type. Usually, orders to be settled to cost centers are settled periodically. However, orders can also be settled after final completion.
Simulating Settlement
Before the actual settlement, settlement can be simulated to check the completeness and accuracy of the orders to be settled. The settled documents and the current order balance are displayed in the information system for orders. This allows continuous control of the open order balance.
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