Flya Kite FI CO

To cost objects within co represent activity values

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Unformatted text preview: ity values produced in internal cost allocations 40 Cost Centers and Cost Elements Closely linked in SAP x Each posting to a cost element is assigned either to a cost center or an order x Data is subdivided between both cost centers and cost elements for analysis x Cost Centers = where x Cost Elements = which x 41 Distributions A method of allocating primary costs x Primary cost element is the same in the sender and receiver x Cost element retains its character : same element in receiver as it was in sender x Sender cost centers and receiver cost centers are documented in the CO document x 42 Distributions Identity of the cost in the Sender Cost Center Rent Expense $10,000 Cost center A060 Primary Cost Element Distributed Rent Expense 780000 Identity of the cost is the same in the Receiver Cost Centers Sales & Mktg Rent Exp Mfg $2,500 Rent Expense Adm $5,000 Rent Expense $2,500 Nature of cost (i.e., rent expense) comes across to receiver 43 Assessments A method of allocating both primary and secondary costs x Iterative or hierarchical x Primary costs are grouped together and transferred to receiver cost centers as a single secondary cost element x Sender cost centers and receiver cost centers are documented in the CO document x 44 Assessments Secondary Cost Sender Cost Center Receiver Cost Centers Element Information Systems Costs = $100,000 (wages, paper, depreciation, etc) Cost center A070 Allocated IS costs 800000 Sales & Mktg IS Assessment $25,000 Admin IS Assessment $25,000 Mfg IS Assessment $50,000 Nature of costs is unknown to receiver 45 FI/CO Transactions EXERCISE FI/CO01: CREATE GENERAL LEDGER EXERCISE B/S ACCOUNT B/S – We will create a bank account manually. A bank account is an asset account located in the Balance Sheet EXERCISE FI/CO02: CREATE GENERAL LEDGER EXERCISE GR/IR ACCOUNT GR/IR EXERCISE FI/CO03: CREATE P/L ACCOUNTS – Now that the vendor account has been created, the corresponding rent expense account is to be created in your chart of accounts using a reference account. Also, a utilities expense account is to be create...
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This document was uploaded on 02/06/2014.

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