Capitalization of an investment order/project - Original cost elements

Hi all,
I do have a question concerning the capitalization of an investment order/investment project onto an asset under construction (AuC).
I have configured the system in a way, using capitalization key and capitalization versions, that I can capitalize 100 % of the costs within the IFRS depreciation area to the AuC and 0 % of the costs within my local gaap depreciation area to the AuC.
Instead of capitalizing the costs within the local gaap depreciation area, the cost are booked to the u201CAccount for capitalization differences/nonoperating expensesu201D.
With the settlement of the investment order/investment project to the AuC the original cost accounts/cost elements (shared between IFRS and local gaap) are credited and the AuC is debited for the IFRS deprecation area and the u201CAccount for capitalization differences/nonoperating expensesu201D is debited for the local gaap depreciation area.
My problem is, that I do not want to have the costs for my local gaap P&L on the u201CAccount for capitalization differences/nonoperating expensesu201D, I do want to have them instead on the corresponding local gaap cost accounts/cost elements to the original shared cost accounts/cost elements within FI and CO.
Is there any possibility to do this within SAP Standard?
(If possible the solution should also work within New GL, using multiple ledgers for parallel accounting instead of different account)
Thank you!
Regards

Hi Prad,
I am on 4.6C/D.
Please check on your settings for Capitalization of AUCs created through Investment Support Measures: -
1. Go to the IMG, Asset Accounting under Special Valuation and determine the Depreciation Areas you would like your Investment Support Measures to post to.
2. Still in Special Valuation, define an Investment Support Key and assign it to the relevant depreciation area
3. Also, define the relevant account determination for such posting under the Special Valuation
4. Proceed in the same area to define the Transaction type for the Investment Support Measure by changing any of the Standard ones in there in line with your requirements
5. Now move back to IMG, Asset Accounting then Master Data. Here you go to the screen layout and pick the relevant asset class for AUCs. Get this logical feild group and pick on the item Investment Support. Proceed to define its feild group rule as optional at the required asset maintenance level (Main Asset and/or Sub Level)
6. Leave the IMG and access the relevant AUC's Master Data from the User Menu. Click the tab Investment Support and insert the Investment Support Key you created in note 2 above
7. Now capitalise the AUC. Should work

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WBS settlement to AUC - use original cost elements?

Hello gurus
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What is the result of using this tick box?
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Hi
- we do not have secondary cost elements posted
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Is this possible?
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Table or Function module to get Internal order planning and Cost element pl

Dear All,
Table or Function module to get Internal order planning and Cost element planning.
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BPEJ, BPEG, BPEP

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Hi,
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Controlling ->Internal Orders ->Actual Postings->Settlement->Maintain Allocation Structures.
& also check the settlement profile.
Regards,
Deepak

Report by Internal Order that includes cost element and order type

Good Morning Gurus'
Is there an SAP Standard Report that shows Internal order, cost element and order type? I find many with order, but not order type.
Thanks a million!!

Hi,
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T030 - Planning Order - association to Cost element

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Thanks in advance for any suggestion!
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Edited by: crazzauti on Jun 3, 2009 1:05 PM

Thanks, but I'm trying to integrate the planning that happens in a PM order with the cost center. I was able to get planned costs from the orders via S_ALR_87012993.
the lack of planned settlement in a PM order is annoying. We do a lot of work on PM orders and settle actual costs to cost centers. It would be nice to use that same functionality (Operations, Components, task lists) to be able to plan costs and settle the planned costs to cost centers. Internal Orders can settle planned costs to cost centers, why not PM orders?
I believe the KSPP transaction helps to link the two objects somehow, but I can't get it to work. If anybody has any insights, that would be great.
Or should I be pursuing something else?
Thanks.
Dan.

What is Investment order in Asset Master

hi,
my client wants to have investment order in Origin Tab of asset master. is it just an internal order which will be settled against this asset, I noticed some settings in plant maintenance for investment orders, does this have any relevance to this investment order field.
Thanking u guys for giving reply to my previous query
urs
sai

Hi,
Good evening and greetings,
Please go through the following OSS Notes
Note 71079 - Investment acct. assignment fields for assets
Please reward points if found useful
Thanking you
With kindest regards
Ramesh Padmanabhan

Internal Order Report - Cost Elements by Order

Dear All,
When I run the report S_ALR_87012997 - List: Cost Elements by Order, the system shows the report like
Cost Element: 500000 - Actual: 8900 Plan : 833.33 Abs. Var: 8066.67 Var (%): 968
Order: 100219 (stat. order): Actual: 8900 Plan: 833.33 Abs. Var: 8066.67 Var(%): 968
how should I understand the report?
Please guide me - urgent.
High points will be awarded...!
Regards,
Ranesh.

When I run the report S_ALR_87012997 - List: Cost Elements by Order, the system shows the report like
Cost Element: 500000 - Actual: 8900 Plan : 833.33 Abs. Var: 8066.67 Var (%): 968
Order: 100219 (stat. order): Actual: 8900 Plan: 833.33 Abs. Var: 8066.67 Var(%): 968
how should I understand the report?
Please guide me - urgent.
Internal Order 100219 is statistical order. Under cost element 500000, actual expenses posted are 8900 against planned values of 833.33. The absolute variance is (8900-833.33) is 8066.67

Sales order value flow to internal order without cost elements.

Dear Sap Friends,
My client have a requirement, when sales people creating a sales order, sales value flow into internal order without a cost elements. normal case when SO, Deleivery, and billing data automatically can flow into CO-PA. Here i want to know how value can flow into I.O. without a cost elements please give me advise.
i created a statistical internal order and that internal order i assigned in sales order account assingment. but i know that there is no value going to flow this I.O. becasue there is no cost elements.(becasue client dont want to create a cost element for internal order)
There is any option when i crate a sales order values can go into internal order without cost elements or i can create a statistical Internal Order and assigned into CO-PA? if i can dothatt what is the steps. kindly explain to me. if some have can explain to me please leave contacts number or send me reply.
Regards
Paul

By standard configuration itr is not possible.
You ought to have user exit in place.
For DC A & B, where you need a redetermination of pricing component, take help of an ABAPer for user exit USEREXIT_XKOMV_FUELLEN (module pool SAPLV61A, program RV61AFZB).
So now, for DC C, you need to change the copying control in VTFL - item, where your pricing type ought to be D-Copy pricing elements unchanged.
Regards
JP
ASSUMPTION: I assume that your all DC uses the same Sales Doc type & Billing Doc type

Restricting Cost Elements in Internal Orders

I am setting up new order types for our Marketing Department. I want to ensure the only costs charged there are Marketing Costs (ie a small range of Cost elements). I've put the range into the allocation structure, but that only seems to control settlement cost Element, and doesn't stop anything I don't want coming in to the order.
Is it possible to restrict postings coming in to a range of Cost elements? Ideally, this would stop the problem at source i.e. you can't raise a Purchase Order assigned to the Internal Order with a cost Element outside the restricted range?
Is this possible? If so, could you kindly point me in the right direction?

Hi gbrandreth,
Allocation Structure, as you correctly understood, is only for Settlement transaction.
Pls try to use "Validations" for your requirement.
Srikanth Munnaluri
Edited by: Srikanth Munnaluri on Mar 18, 2009 2:57 PM

Cost Elements not to br created

Hi Gurus,
Which Cost Elements should not created againts the GL accounts apart from Assets & Laibilties' GL.
Like WIP change A/c should not created as Cost Elements.
regards
Shiv.

Hi,
There are different kind of Cost Elements which depends upon the Cost Element Category...
01: Primary costs / cost-reducing revenues
This cost element category can be debited for all primary postings, for example, in Financial Accounting (FI) or in Materials Management (MM).
Cost-reducing revenues are revenues that are to be handled in CO similarly to overhead costs, and which reduce the prices of an activity type or the costs to be assessed. This is the case, for example, with rent revenues, which reduce the room costs to be assessed. Cash discount amounts and exchange rate amounts are also cost-reducing revenues.
03: Accrual Calculation Using the Percentage Method
You can only use this cost element category during accrual calculation in Cost Center Accounting (component CO-OM-CCA) when you are using the percentage method. You can post directly from FI to take account of the actual costs incurred. The system also uses cost elements of this category to post the accrual amounts within Cost Center Accounting CO-OM-CCA.
If you do take actual costs into account (say, for additional costs), create cost elements of this category in Controlling (CO) only. The account must be defined in the chart of accounts, but you do not need to create the general ledger account in FI.
04: Accrual Calculation Using the Target=Actual Method
Used in Cost Center Accounting (CO-OM-CCA) only for accrual calculation when you are using the target=actual method. You can post costs directly from FI to register actual costs incurred. At the same time, the system uses this category of cost element to post accrual cost amounts within Cost Center Accounting CO-OM-CCA.
If you do take actual costs into account (say, for additional costs), create cost elements of this category in Controlling (CO) only. The account must be defined in the chart of accounts, but you do not need to create the general ledger account in FI.
11: Revenues
Used to post revenues. These revenues are generally posted during make-to-stock-production directly into the operating profit, or with make-to-order-production to the sales order.
In Controlling (CO) revenues are displayed with negative +/- sign. An exception to this is Profitability Accounting (CO-PA, costing-based), in which all values, including revenues, are displayed with a positive +/- sign.
12: Sales Deductions
Used to post deductible items (sales adjustments, sales corrections) such as discounts and rebates. Certain deductible items (freight charged separately in the invoice, surcharges for small quantities, special orders) are not classified as sales deductions, but as revenue elements.
You can use this category in the same manner as revenue elements (category 11). Values on cost centers are displayed as statistical only.
22: External Settlement
Used to settle order costs, project costs, or cost object costs to objects outside of CO. These objects could be assets (Asset Management), materials (Materials Management), or general ledger accounts (Financial Accounting). The R/3 System creates an accounting document when the costs are settled.
Cost elements of this category cannot be used for settlement within CO (cost centers, orders, projects, and so on). Use secondary cost element category 21 for this purpose. The system does not create an accounting document when costs are settled within CO.
U can also create the cost element for Balance Sheet Account for below mentioned purpose
90: Cost Elements for Balance Sheet Accounts in FI
Automatically assigned when you create cost elements in CO whose general ledger accounts in FI are asset reconciliation accounts (special balance sheet accounts), not income statement accounts. You cannot change this category in CO master data maintenance.
FI does not require CO account assignments to cost elements of category 90. However, if you enter an account assignment, it is only recorded statistically for true objects.
Category 90 cost elements enable you to check the budget of an order or project when you acquire fixed assets that can be directly capitalized. To do this, enter the capital investment order or the WBS element in the corresponding field of the asset master data. Asset Management (AM) ensures that the specified order or WBS element is automatically entered in the document during the asset acquisition.
In CO the order or WBS element is debited statistically. This statistical debiting is checked by the system using the budget during availability control.
Hope you Understood....
Reward Points to Help You Better
Regards,
Jigar

Balance sheet acoount as Cost element?

Is it feasible to create cost element for Balance sheet account.
If the creation is possible wouldn't there be any mismatch in the cost flow.

Hi,
Cost Element Category 90
when you create cost elements in CO whose general ledger accounts in FI are asset reconciliation accounts (special balance sheet accounts), not income statement accounts. You cannot change this category in CO master data maintenance.
FI does not require CO account assignments to cost elements of such category 90.
However, if you enter an account assignment, it is only recorded statistically for true objects. Category 90 cost elements enable you to check the budget of an order or project when you acquire fixed assets that can be directly capitalized. To do this, enter the capital investment order or the WBS element in the corresponding field of the asset master data. Asset Management (AM) ensures that the specified order or WBS element is automatically entered in the document during the asset acquisition.
In CO the order or WBS element is debited statistically. This statistical debiting is checked by the system using the budget during availability control
I hope your doubts are cleared.
Regards,
Jigar

Difference between type of Secondary Cost Element Category?

Hi,
I checked the system, and during the secondary cost element (CE) creation, I can select some of the CE category as follows:
21 Internal settlement
31 Order/project results analysis
41 Overheads
42 Assessment
43 Internal activity allocation
50 Project-related incoming orders: Sales
51 Project-related incoming orders: Other
52 Project-related incoming orders: Costs
61 Earned value
My question, what kind of report that I can read entries with these kind of CE?
Reason: I want to check what has been posted to these secondary CE.
Or
Could anyone explain the use of above-mentioned CE category in brief?
Thanks.

Cost element that is used to allocate costs for internal activities.
Most often used categories are
21 Internal settlement
(When ever an order is settled e.g internal order settling to cost center through this type of cost elements)
31 Order/project results analysis
(WIP in production orders are calculated and posted using this category)
41 Overheads
(Used in costing sheet to do an overhead allocation)
42 Assessment
(whenever cost is allocated between cost centers through allocation method - Assessment)
43 Internal activity allocation
(found in production orders when a routing activity is confimed the charge goes to the production order through this cost element)

Secondary cost element in KB11N

Hello.
I'm not allowed to use a secondary cost element in a reposting.
What do I have to modify?
Thank You

Hello,
You cannot use secondary cost element. You need to use primary only.
Please go through the following:
DISTRIBUTION =========== Distribution was created for transfer primary costs from a sender cost center to receiving controlling objects. During distribution, only cost centers or business process can be used as sender. A distribution receiver can be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the number of receiver categories in customizing. Primary Postings (such as, energy costs) are collected on a cost center, and allocated at the end of the period by means of the user-defined key. You can only distribute primary costs. During this process, the original cost element remains the same. Line items are posted for the sender as well as for the receiver, enabling the allocation to be recorded exactly. You can reverse distributions as often as required. You use the Cycle-Segment method to define sender-receiver relationships. PERIODIC REPOSTING ================= Differences between periodic reposting and distribution are due to information content and performance. For periodic reposting, no separate credit record is written on the sender for the cost element in the summary report. Instead, the totals record for the cost element is reduced on the debit side, which means that the original debit amount can no longer be checked there (u201Cunclean creditu201D). However, during distribution, the system writes a totals record for the credit (u201Cclean creditu201D). The information on the receiver is the same for periodic reposting and distribution (u201Cclean debitu201D). Compared with periodic reposting, during distribution, the system also updates the partner in the totals record for the sender. This means that the partner can be displayed in the information system on the totals record level. As fewer totals records are written during periodic reposting, performance is better than during distribution. ASSESSMENT =========== Assessment was created to transfer primary and secondary costs from a sender cost center to receiving controlling objects. During assessment, cost center or business processes can be used as senders. The receivers for an assessment can be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the number of receiver categories in customizing. Primary and secondary posting are allocated at the end of the period by the user-defined key. During assessment, the original cost elements are summarized into assessment cost elements (secondary cost element category = 42). As the system writes fewer total records, the assessment has a better performance than periodic reposting and distribution. The system does not display the original cost elements in the receivers. Therefore, assessment is useful if the cost drilldown for the receiver is not important. Similar to distribution, the partner is updated in the totals record during distribution You can reverse assessments as often as required. You use the Cycle-Segment method to define sender-receiver relationships. Regards, Ravi

Cost center & cost element

Hi Experts,
Can anybody please tell me,
What is difference between cost center and cost element.
what is exact role of both.

Hi,
Cost Center
Definition
External object (object type K) from Controlling which represents a clear origin of costs.
If you implement the Controlling component, you can find more information in SAP Library under Cost Center (Financials u2192 Controlling u2192 Cost Center Accounting u2192 Master Data in Cost Center Accounting (CO-OM-CCA) u2192 Cost Center)
and
Cost Center Accounting (Financials u2192 Controlling u2192 Cost Element Accounting).
Use
By assigning cost centers to organizational objects, you determine where costs incurred by the object are to be charged. The inheritance principle applies: If an organizational object is not assigned a cost center, the cost center assigned to the superior object applies.
An organizational object may also be assigned more than one cost center. For more information, see Cost Distribution (infotype 1018).
Integration
A cost center can be related to the following organizational objects:
·        an organizational unit via relationship A 011 (Cost center assignment)
·        a position via relationship A 011 (Cost center assignment)
·        a work center via relationship A 011 (Cost center assignment)
Cost Elements
Definition
Cost elements classify an organizationu2019s valuated consumption of production factors within a controlling area. A cost element corresponds to a cost-relevant item in the chart of accounts.
Structure
We distinguish between primary cost and revenue elements and secondary cost elements.
Primary Cost/Revenue Elements
A primary cost or revenue element is a cost or revenue-relevant item in the chart of accounts, for which a corresponding general ledger (G/L) account exists in Financial Accounting (FI). You can only create the cost or revenue element if you have first defined it as a G/L account in the chart of accounts and created it as an account in Financial Accounting. The SAP System checks whether a corresponding account exists in Financial Accounting.
Examples of primary cost elements include:
· Material costs
· Personnel costs
· Energy costs
Secondary Cost Elements
Secondary cost elements can only be created and administrated in cost accounting (CO). They portray internal value flows, such as those found in internal activity allocation, overhead calculations and settlement transactions.
When you create a secondary cost element, the SAP System checks whether a corresponding account already exists in Financial Accounting. If one exists, you can not create the secondary cost element in cost accounting.
Examples of secondary cost elements include:
· Assessment cost elements
· Cost elements for Internal Activity Allocation
· Cost elements for Order Settlement
Integration
Cost elements in Controlling (CO) are closely related to the general ledger accounts used in Financial Accounting (FI). This is because the SAP System is structured as an Integrated Accounting System:
Cost elements document which costs (differentiated by category) are incurred within a settlement period, and in which amount. They provide information concerning the value flow and the value consumption within the organization. Cost Element Accounting and Cost Center Accounting/Internal Orders are closely linked in the SAP System. Each posting to an account that is also a cost element, is assigned either to a cost center or order. This ensures that at period-end the data is subdivided by cost elements and cost centers/internal orders for analysis purposes. The following section describes how you can subdivide and characterize cost elements in the SAP System.
Cost element characteristics depend on the controlling area and the allocation methods used in your organization.
Hope this helps clarifying your doubt about cost center & cost element.
Regards,
Tejas

Capitalization of an investment order/project - Original cost elements

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