Apportionment of Common expenses

Hi All,
Can you please tell me if the SAP system has the
ability to apportion common expenses based on criteria like revenue, manpower, area, usage parameters on plan as well as actual.
What is it called.
thanks
Bhavya

Create the manpower, area etc as SKF and then enter the actul values for these using KB31N.
If you want to do the apportionment in CO, then you can create assessment cycles or distribution cycles. Use the above SKF as a distribution parameter in the cycles
Regds
Pooja

Similar Messages

Common expenses - Apportionment

Hi,
Can you please tell me if the SAP system has the
ability to apportion common expenses based on criteria like revenue, manpower, area, usage parameters on plan as well as actual.
What is it called.
thanks

Hi,
Create the manpower, area etc as SKF and then enter the actul values for these using KB31N.
If you want to do the apportionment in CO, then you can create assessment cycles or distribution cycles. Use the above SKF as a distribution parameter in the cycles
Thanks
GB

Distribution of common expenses

Hi,
I have following scenario.-
My client is operating a multistorey mall. There are around 200 tenants in the mall. The common expenses is factored in the rental and if it exceeds than the projected it is recovered at the year end. Now to calculate the exact amount applicable to each tenant I need to divide these expenses, which I dont want to bifurcate at the Gl entry level as it will create many line items may be in thousands per month may be based on cost center wise or re object wise.
How this can be done on monthly basis. I have one option to do it bases on creating cost center for each tenant and running distribution at each month end. Any other option is available to distribute the common expenses on rental through RE and get the report at the end of the year.
Regards
Milind Sonalkar

Milind,
There are couple of ways to do this and I am sure others may suggest many more. If I understand you correctly you want to bill the tenants for their share of the expenses with the settlement to respective Rentals for reporting purpose. About the division of the exp, it depends on do you want to do it based on usage or similar measurement of any kind?
1. You can set up service charge settlement and make all the rentals participate in the settlement. Create an Invoice for the total expense and settle through the settlement Participating Group. Which will distribute the cost to each rental. Month end or whenever you execute the settlement run this can be done.
2. You can also think of Sales based condition and assign a default on every rental participating in this type of expense. You can set up a nominal charge and post during sales based settlement run. If the actual is more than the projected you can always re run the difference. Also, you have sales based reporting tools to update at contract level the actual. Once these have posted, same concept CO settlement and from GL to respective Rentals and you are good for reporting.
Settlement from Contract or Order etc will not be a bigi as you can do settlement for the Rentals, per cost element configure and assign the settlement rules and execute settlement at month end.
Jag

Common Expenses Process

Hi Experts,
I have a issue on common expenses within two company codes, that is
When the new employee joins into the company, company will provide a medical insurance to that new employee, say we have 2 company codes X and Y, for all employees medical insurances for X & Y will take care company X only.
Process as follows:
1.When the new employee joins, company X sends a mail to insurance company for medical Insu.
2.Once Medical Insu. received, this was send to employee department it may be other company u201CYu201D or same company u201CXu201D(department = Cost Center)
3.Insurance Company will send a debit note to the company for Medical Insu. Charges.
4.Once the debit note is received, check the calculated amount and send it to Company X or Y which department it should be charged.
For the above process how to book the entries in Companyu201D Xu201D and Company u201CYu201D.
Please give some idea on the process.
Thanks in advance
Gopi.P

Hi,
In may openion create 2 cost centers for X and Y in Company X only because all the insurance payments will be made by Company X only as you said.
At the time of posting debit notes select respective cost centers then your problem will be solved.
Thanks
Chandra

Common Expenses Allocation Ratiowise

Dear All,
Our clients wants to distribute common expenses (Eg security charges) in the ratio decided by users from one profit center to other profitcenter. Initially expenses will be booked under main profit center & then they wants to allocate at month end ratio wise. Also the accounting entries should get posted in the books of accounts as per profit center.
Eg.
Security Charges (Main Profit Center) Rs. 100000
Division A - 20% (20000)
Division B - 30% (30000)
The system should transfer 20% & 30% in each profit center & balance 50% remains in main profit center.
Awaits your valuable inputs.
Regards,
Nazia

If you profit centers are assigned properly and all postings for P & L item are happening to profit centers or you have profit center scenario activated then you can get the net profit.
With distribution you can increase or reduce the P & L of individual profit centers. Lets say you have 2 profit centers as A and B. After all the postings in FI you will get an P&L for A and B. Now with distribution you distribute some amount in profit center B to profit center A. Let's say telephone expenses for Rs.5000 out of Rs.10,000. Now the P&L of A will be reduced by 5000 and vice versa for B.
So distribution by itself do not give net profit of profit center but it affects the profit/loss.
Sangram

Allocation of Common Expenses- KSV5

Dear All,
I tried to run this T Code KSV5 for distribution of Common expenses.There was no cycle found for allocation.Please suggest me as how to create the cycle and T Code to be used.
Thanks
Nagendra Prasad BS

Hi Nagendra,
In the same t.code.go to extras menu bar,click on cycle and select create from it or you can use shift+F5 button. For creation of cycle refer the link.
Create Actual Distribution 11/12/07 (via KSV5)
Regards,
Mukthar

Problem about creating asset transaction type

I created an asset transaction type with AO76 to deal with the apportionment of asset expenses which was created in the year before yesteryear.But the user demands an account assigned to the transaction type .Then I checked the configuration.It seems t-code AO85 can only realize the relationship between asset classes and accounts.
So what should I do to realize this? Thanks!

or if you still want to achieve it. Go for substitution. make the Gl account the substitutable field and then define a rule saying that, if the transaction type is ' ', then the gl account is ' '
Regards
anantha

Is it possible multiple line items debit & single line item credit and different cost centers and different profit centers in fbcj

Hi all ,
I have a requirement to Post Cash Journal Document using FBCJ tcode.
Is it possible multiple line items debit & single line item credit and different cost centers and different profit centers
for exp:
pk   GL a/c   description       amount   cost center profit center
40 400101 telephone exp   500        1403            P 1000
40 400101 telephone exp    100       1404            P 2000
50 200100 cash in hand      600-
   This is My requirement is it possible in fbcj
    Please suggest me.ASAP.
Regards
   Naresh.

Hi,
This you can do it in two ways:
1. Make three header under top level....one Product A, 2nd Product B ( as Billing element) and third as Common expense ( only cost). Now 1st & 2 nd WBS, you have to have sales order linking with individual lint item, for third you will accumulate all the common expense till the period end then make a reposting of the same in desired proportion to both products WBS hierarchy
(This is if you want to have a track on the common expense as well.......like planning, budgeting & control)
After this reposting, run RA for individual billing element and hence you will all the complement detailing and control over Revenue and expense with respect to Product A and Product B individually.
2. If you don't want to maintain that kind of detailing the common expense and keep track of it through project, then have cost centers accordingly and make an assesment/ distribution with respect to expenses accumulated at those cost centers for the period to the respective WBS under each product. Then execute the period end processes for the project.
Or
You can try with have two more line items in the costing sheet as an overhead against common expenses with respect each product.
I hope this should help you.
Regards
Avisek Bhardwaj

Multiple Line Items - PS/SD/ PP - Scenario

Dear Experts,
Please advise on the following:-
There are two products, like Product A - 2 Nos, and Product B - 3 Nos, will be manufactured for a project order.
Finished product will be attached in the project structure and will be manufactured in house through PP module. Material planning will be done thorugh project MRP.
A sales order will be created with two line items, Product A - 2 Nos, and Product B - 3 Nos.
Root level WBS element will be linked with sales order header level for milestone billing.
Is it possible to see the cost and selling price comparison of product A and product B through this settings, as they are different type of product and their selling price are different.
Can the system apportioned the cost of sales based on the selling price of the product A and Product B.
Looking forward to hearing from you.
Thanking you.
Best Regards,
Abdul.

Hi,
This you can do it in two ways:
1. Make three header under top level....one Product A, 2nd Product B ( as Billing element) and third as Common expense ( only cost). Now 1st & 2 nd WBS, you have to have sales order linking with individual lint item, for third you will accumulate all the common expense till the period end then make a reposting of the same in desired proportion to both products WBS hierarchy
(This is if you want to have a track on the common expense as well.......like planning, budgeting & control)
After this reposting, run RA for individual billing element and hence you will all the complement detailing and control over Revenue and expense with respect to Product A and Product B individually.
2. If you don't want to maintain that kind of detailing the common expense and keep track of it through project, then have cost centers accordingly and make an assesment/ distribution with respect to expenses accumulated at those cost centers for the period to the respective WBS under each product. Then execute the period end processes for the project.
Or
You can try with have two more line items in the costing sheet as an overhead against common expenses with respect each product.
I hope this should help you.
Regards
Avisek Bhardwaj

Automation of Closing Process

Hello
Our Client has a peculiar requirement of closing
To extract Account Balances Profit Centrewise example
Profit Centres                                                         P1                     P2                P3
Expenses in Profit & Loss     Grand Total              Rs.                    Rs.              Rs.
Rent                                         10,000                 2,000                  5,000          3,000
Electricity                                 50,000                10,000               30,000         10,000
Expenses above includes for Capital WIP also e.g. materials for buildings, etc (since business is construction of hotels, schools, etc)
After above process to bifurcate Capital & Revenue expenses & common expenses(eg. salary paid to administrative staff) for both Capital & Revenue projects.
Now the problems are following
1. How can Capital, Revenue & Common expense at Cost Centre or WBS level be bifurcated while at the time of making expense entry.
e.g. if we make rent expense entry, we can select Profit Centre, Cost Centre, WBS element but further require "whether it is for Capital Projects, Revenue Projects or Common Expenses".
which fields can be used for these 3 criteria?
2. Close all General Ledger Accounts at cost centre & wbs level & transfer to 2 accounts i.e. WIP & CWIP.
can we automate this process & transer all the GL account values to WIP or CWIP?
Since closing process takes upto 2-3 weeks. if it can be reduced, it would be commendable in SAP.
Please if someone just gives hint for some latest functions/options not explored yet, it is a very good opportunity to scratch brain.
Thanks & Regards

Hello,
Could you tell me how you created a java program to make the job, I am interested in knowing how it is possible?
Thanks for your help
Regards,
Jérôme

PCA Functional Area Report Problem With Co-Product Settlements

I have built a profit center functional area report for use in a manufacturing client. The reason is because the factory cost centers flow to the product cost (via costing sheets) and the administrative cost centers are expensed monthly. However, SAP seems to have no other approach to handle the issue where common expense elements must be reported in these two separate sections. Anyway, here is my problem:
After creating the functional areas and matching them to each cost center appropriately and then applying a different functional area to orders, I see that settlement of co-products causes my report to zero out the functional area that should match the overhead cost centers. These obviously should not be impacted by settlement and I see that they are not impacted in the transactional data. However, the functional area report shows a different story. I believe it somehow has to do with the unusual way that co-product split up and settle versus other types of orders. I may need some sort of subtitution rule, but like I said, the raw transactional data looks correct and the report should bring in these values.
I used ledger 8A if that helps. I am sure I missed some small thing somewhere.
David

It looks to me like the New G/L may have taken care of some of my issue. The FI reconciliation G/L account (690000 usually) includes the secondary cost center postings as well as the secondary order postings. The cost center side of the secondary transaction reflects the functional area for cost centers (Factory Exp or Admin Exp in my case), whereas the order side of the secondary posting shows the functional area associated with order consumption (Net Consumption in our case).
This appears to mean that the standard report for Functional Areas from FI should work to break up the income statement for manufacturing purposes. This report is S_PLO_86000029. That report looks to me like it will replace my need for a PCA based Functional Area Report.
David

Substitution Rule for Assessment Cycle

Hii All,
Can anybody suggest how do i define substitution rule for Assessment Cycle??
Reg
Umesh

I have created a assessment cycle thru KSU1 where i assigned SKF key , Thru SKF key i have to define allocation numbers with receiver cost centers but before that i have to set substitution rule for cycle.
All the common expenses booked under one common cost center
For eg. Expensed booked in GL series 3 - Common Cost Center
in Cycle - Assesment CEle start with 9
In FI - Common Exp GL start with 8
Above Example , when i run the cycle expenses will be allocated in 8 series with receivers cost center
Can ny1 suggest me how to do the process,how to define the rule
REg
Umesh

Project WBS element cost allocation

Dear All,
In a project we have created 10 WBS elements out of which one is used for common expenses and rest other or individual works carried out in the project. Now i want to allocate the Common cost of one WBS element to other nine WBS elements.
Can anybody explain how this can be done and is there any possibilites of costing gets doubled in the project if the cost transffered to other WBS elements.
Thanks and regards

Thanks for the reply,
I have another query also, i had transferred the WBS element cost to other WBS element cost in the same Project.Whether it will double the Revenue or Cost incurred
For ex, WBS Element A got 100 and i had settled to WBS Elements B and C , now B and C got 50 50 each
now my project will have
a) WBS Elements A-100, B-50 and C-50 or
b) WBS Elements A-0, B-50 and C-50 , for my understanding option (b) will be right. Your views pls
Edited by: aspirefico on Apr 30, 2009 12:59 PM

Cracked lcd screen options and third party information

Before I get flamed, let me just say that up until now, I have been happy with my ipod, bought the extended warranty last year and two of my sons have ipod minis. However, now I am beginning to feel "screwed". My ipod photo now has a cracked lcd screen after being plugged into the wall for recharging. I have treated it well, have a soft cover on it, but no screen protector since it would fall out for me to be able to use the fm transmittor.
So after reading all the "stuff" on these boards and the internet, I am stuck. Since I have had to replace my ibook and updated a new hard drive, a new ipod will bring me over the limit of Itune transfers.
I will be calling apple support, but would like to know if anyone here has used any of the companies out there to replace the lcd screens?
Ipodclinic
nextdaypod
ipodmods
ipodresQ
From what I am reading, this is a pretty common, expensive problem of the ipods, wonder why they can't use a screen like a pda?

http://www.iresq.com
http://www.ifixit.com
Google for other 3rd party repair sites.

Product wise profitability without COPA

Dear Friends
I have a problem with my client.
We are implementing SAP R/3 Ecc 6.0 version. Our client is having only one manufacturing plant, he is making 8 different products in the same plant. There they use common materials and common utilities for 8 products. When we prepare the Org.Structure, we have proposed single Plant and single profit center. Initially he asked us to maintain 8 different plants for each product, some how we could able to convinced him that it is not possible. Since, he wanted to see product wise profitability, he is insisting us to maintain 8 different profit centres or segments. We said it is also not possible, since he has a common expenses and materials, we have suggested to go for COPA or Z report. He does not want to take COPA or Z report for the same.
In such scenario, how can we address his requirement. Experts please throw light at the earliest possible.
Regards
Prabhakar

Hi,
With 8 Products as Cost Centers and Profit Centers, you may have to define the GL A/cs accordingly to capture the costs & revenues. Purchase, Inventory, Consumption, Inventory Change, GR/IR Clg/,
Cost of Goods Sold, Sales etc. You can create Customer Group also Product wise. Make OBYC settings accordingly and define OB40 relatively. Valuation area for SFG & Finished goods will have to different so that it captures the relative accounts assignments according to Products. For each BOM & Routing will be well defined for each product to be manufactured. You will have to define the relative
Work Centers and their activities linked to product wise cost centers with necessary costing sheet and
cost component structure and allocation structure. Create Cost center and Profit Center Heirarchy profit wise.
Regards,
Sadashivan

Apportionment of Common expenses

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