Cost element in FRL in obyc

hi all
we have created external service account as cost element and that is mentioned iin transaction key FRL in obyc
so whenever i am doing the GR for subcontracting posting system will debit the FRL account and will credit the GR/IR account
so at the time of Gr system is asking for the co object now thing is that i cant mention the Cost center there as there is no option in migo for that
my query is do we have to create a new account for FRL and that we should not make up as a cost element but then how we are going to pass the expense entry to controlling module from FI
i

Hi,
There is always an alternative way of defaulting Cost Center for one cost element.You can put default cost center at Cost Element master data. But still I believe , you can solve this problem thru OKB9. Try accessing the tab Default Account Assignment per business area/Valuation area. This tab allows you within one company code and for specific Cost element , to put accross different cost center for different plan/valuation area provided you are working with plant as valuation area concept.
Pls check and let me know
Cheers
Rahul

Similar Messages

OBYC VNG, INV, COC as cost elements

Hi,
I have doubts about accounts assigned in OBYC to VNG (scrapping), INV (Inventarization), COC (material ledger - other consumption variances). Should these accounts be normally created as cost elements in controlling?
Regards,
Karol

Hi,
In OBYC the Transaction event Keys VNG, INV, COC Shoulg be created as cost element. As this keys are related to costing of raw material and inventory Valuation.
Regards,
Sreekanth

Creating Cost Elements for OBYC Accounts

Hi
We are implementing COPA and we have manufacturing scenario (MTS) also. Now i have created cost elements (with category as 1). Now its giving me error for CO object when i post any SD entry (at the time of PGI and releasing billing document to accounting) or MM entry (MIGO / MIRO). So please help me cost elements needs to be created for following accounts:
Price difference A/c
Rounding off A/c
Small difference A/c
If i do not create it as cost element, will it effect my COPA / Product costing / Cost center planning.
Please help

We are implementing COPA and we have manufacturing scenario (MTS) also. Now i have created cost elements (with category as 1). Now its giving me error for CO object when i post any SD entry (at the time of PGI and releasing billing document to accounting) or MM entry (MIGO / MIRO). So please help me cost elements needs to be created for following accounts:
Price difference A/c
Rounding off A/c
Small difference A/c
If i do not create it as cost element, will it effect my COPA / Product costing / Cost center planning.
When your postings hit CO (COPA) from Billing the system is expecting the Real CO Object (e.g. Cost Centre, Internal Order, WBS, Profitabilit Segment etc) to be Profitability Segment.
The RWIN interface (program group that posts to FICO - includes COPA) is checking and finding that there are Cost Elements created for the 'account determination' (accounts determined in Billing) that have a Cost Element category of 1 and I assume that you have determined these postings should go to COPA. Thus the error.
For CE Cat 1 (Primary costs/cost-reducing revenues) the system expects a Cost Object that is not a Profitability Segment.
The solution is to not create them or to use CE Cat 11 or 12 which allows Prof Segment.
Take into account the fact that if you are using the Reconciliation Ledger then CE Cat 11 or 12 should be used (i.e. adding the REAL (not statistical) postings in COPA + Cost Centre Accounting + WBS + Internal Orders = FI P&L).
Please test the use of CE Cat 11 or 12. The problem is that if you have already posted to the old CE's you will need to create new ones as you can't change CE cat once posted to.
The Business Analyst Question would be: Where does the Business want to see the REAL postings of Price Difference, Rounding Off and Small Difference? In COPA (then see above explanation - I would assume the Business want it here) or in Cost Centres (adjust your config and use CE cat 1).
Hope this helps.

G/L accounts or cost elements for maintenance order

Hi,
Can anybody explain the following.
1- What are the applications of inventory and consumption cost element / GL accounts, while posting goods issuance, good receipt and maintain service entry sheet with reference of maintenance orders' reservations and purchase requisitions? I want to know which cost element or GL account is debit and credit during every posting. And What are their impacts on maintenance order?
2- What is the purpose of "source" (cost element group) and "settlement cost element assignment" in allocation structure when we want settle maintenance order on cost center?
3- On which accounting term, the maintenance order should be settled, cost center or GL account? what is the best practices?
Regards,

Goods Issue & Goods Receipt:
In OBYC, G/L account for Inventory posting & Offset account for that Inventory posting will be maintained. Inventory posting will be BSX & Offset will be GBB.
In Material Master, valuation class will be assigned. Based on this valuation class, this entry will be taken.
Service Entry Sheet:
Problem with Service Entry Sheet creation through ML81N
service entry sheet

Sales Order - order reason - cost element error in PO creation

Good day Friends,
We have a third party order scenario in our group among different company codes (FI-SD). This scenario is working fine among the existing companies.
Now there is a requirement from finance department to capture the revenues at different cost centers based on the order reason selected in the sales order.
When order reason is mentioned in the sales order the system is giving error at the time of purchase order creation as u201CCreate account 123456 for 16.05.2010 as a cost element in controlling area INTu201D
Where as if the sales order is created without order reason there is no problem in purchase order creation.
Here the account 123456 cannot be created as cost element because it will stop the other existing processes in this controlling area.
Thanks

I can tell you why it's occurring and maybe give you a few suggestions on what to do. The G/L account assignment for the third party sales process is determined based on the account key/modifier assigned to the transaction and the valuation class assigned to the material. In this case, the account key/modifier is determined based on the account assignment category assigned to the purchased order (in the standard system the account assignment category is X for third party processing and the account modifier is VAX). You would find the G/L account based on the combination of the account key = GBB, account modifier and valuation class using t-code (OBYC).
Saying all that, currently that combination is finding a G/L account that is not setup as a cost element (probably your cost of goods sold account) and that's normal for these types of posting. You can only make postings to cost centers for accounts that are setup as cost elements, so currently the system will not let make a posting to a cost center.
So if you want this transaction to post to a cost center, but don't want to create a cost element for this account, then you must use a different G/L account for these postings. The simplest options would be to either change the account modifier assigned to the account assignment category or assign a different valuation class to these materials. Once you've change one of those you can now assign a different G/L account to that combination in OBYC and create that account as a cost element.
thanks,

Cost component structure - cost elements for FERT and HALB (TC:OKTZ)?

Hi all,
our cost component structure has the following structure (TC: OKTZ):
1 Raw materials
2 Human ressources
3 Production
4 Material Overhead
5 Production overhead
6 external activity
(this settings are conform with SAP standard - copy from cost comp. structure 01)
To cost comp 1 "raw material" we assigend the relevant (primary) cost elements (consumption raw mat, e,g, steel, wood...).
My question is: In case we insert/post e.g. a semi-finished product to the production order from stock (accor. bill of material), where (in which cost comp.) do I have to assign the relevant cost element? I guess this should be the account "inventory change unfinished product? (maintain in TC: OBYC for transaction BSV according val. class)
Is it correct to assign this cost element to cost comp structure "raw material", because actually it is a semi finished product which is picked up from stock to convert /process further? To problem is, if this cost element is not assigned I get an error in CK11N/CK40N
I hope my wording is not to abstract...
Thanks in advance...
best Regards

Hi..
You don’t need to consider the cost element of production order settlement and production notification.
Cost component structure need the cost element of production order’s debit.

Taking wrong cost element in Preventive maintenance.

Hi Pm Gurus,
I am running Preventive maintenance scenario. I have created T/L with External service as control key (PM03) and given description of external service (no service no), entered material group, cost element, price, Purchase group etc. when the call object is generated from the mainteance plan which is assigned with the above task list, i am not able to see the cost element in Maintenance Order external services view, the purchase Requestion is getting generated automatically in the maint order, when opening the PR the account assignment differs from what i given in the T/L. so at the time of settelment it causing error.
Kindly let me know what settings i have to check.
I have already created default profiles for external services, material procurement and assigned to the order type.
Thanks in advance
R. Loganathan

As mentioned in above threads, you can check for cost element in OBYC.
Cost element for External Service will be derived in following ways.
1. Create Default Value profiles for External Procurement
2. If you have maintained material group & valuation class in service master, it will check in OBYC for GBB. Double click that. In the next screen, search for VBR with the valuation class mentioned in service master. Cost element should have been maintained, that will be filled up.
3. If you have not maintained any valuation class in service master & you maintained material group in service master, it will check for valuation class in IMG => Material Management => Purchasing => Material Master => Entry aids for Items without Material Master. In that screen, search for material group which has been in service master. Take that valuation class. Do the same step as in step 2.
4. Neither Material group nor valuation class in service master, do the same as step 2 & for the VBR without valuation class would have been maintained. Cost element will be taken from there.
5. If no data is maintained in above settings, then the cost element will be picked up from task list.

Cost Elements and Cost Centers in a service order

Hello Finance Friends....
I am inquiring about something that has been happening and I can not find the answer as to how. I spoke with the finance consultant and he seems to think it is the valuation class being changed but the valuation class has not been changed at all....so here is my problem as I am at a lost...it is an intermittent problem....
I have a service order for material to be repaired by the customer...lets say coming in for Ansi Calibration with repair.
The technician will issue material to the service order for repair....if the technician does not end up using the material for repair he will reverse the goods issue and then the material goes back to stock...
in my scenerio ....when the material is issued it is under GL account (cost elelment) 5XXXXXXX. When the reversal was done it went to 6XXXXXXXX. So when the DP90 transaction is done (billing request) it gives the error for cost center XXXX cost elelment 6XXXXXXX and can not complete the transaction DP90. The error is the Material combination for DP90....this works in others....these are just one offs that it is happening to and there seems to be no rhyme or reason to why it happens... I have tried reverse the transaction to put the material back to the service order and then manually reverse myself using the original GL account number it was issued on (5XXXXXX)...however when doing the DP90 it still reads the 6XXXXXXX cost element and cost center XXX. Keep in mind that the valuation class or material type has not been changed.
Where is the GL account and Cost center being derived from in the service order? What can I check?
Thanks in advance....

Hi,
Check in T030 table for OBYC assignments and TKA3A table for OKB9 settings.
Also check account assignment tab of PO.
Best Regards,
Madhu

Default Cost element in PR

Dear Experts ,
How can i default the cost element for a service PR based on .
1. with using service master .
2. Without using service master .
Reagards
Anis

Anis,
We can not default the Cost element for a service PR without using service master.
Yes we can default the Cost element on to Service PR, if the PR is cretaed with service master.
For this u have to create service master and in service master mainatin the Valuation class and this vaualtion class will be maintained for any GL account in OBYC
Regards,
Manish

Cost Elements not to be created

< MODERATOR: Message locked. Please post this message in the [Controlling forum|SAP ERP Financials - Controlling;. >
Hi All,
Can you please let us know, which type of P&L accounts should not be created as Cost Elements in Controlling . . .
We have list of such accounts which are not to be created as Cost Elements. Pl let us if the list is correct or not.
Cost Elements should not be created for the following.
1 Change in work in process WIP
2. Cost element for cost of goods sold transactions. (P&L Accounts maintained in OBYC > GBB > General Modification VAX)
3. Production order variances. (P&L Accounts maintained in OBYC > PRD > General Modification PRF)
4. Do not create any cost elements for financial and tax expenses if you want your CO-PA structure to stop at earnings before interest and taxes
5. Price Difference account should not be made as cost element.
Please explain for situation where COPA is implemented and where COPA is not implemented . . .
Any guidence in this regard will be of grate help . . .
Regards,
Ravi Kumar

Hi,
Your list is not viable.
See, cost element only can be made for P&L item.
U can't make cost element for B/S item.
For P/L item also , u need to understand company's policy and requirement.
In your list
change in WIP is a B/s item so it is not a cost element item.
O ther Gl like cost of goods sold , generaly no company follow this GL as such head is a part of costing sheet reporting .
U need to asssigne GL which is related with that head in costing sheet.
Any way your gl like price difference, Prod order diff etc must have cost element . other wise U will get fake report on Controling.
Regards,
Pari

Cost element for materials in network profile

Dear All,
Want to use material planning field in internal activity under assignment tab. But I have the following queries
What is the cost element that I have to mention in network profile under internal activity?
If I mention the cost element in network profile and plan my internal activity in initial stage and later on if I assign material to internal activity will the Plan cost of that internal activity increases by the material added to that activity.
3. under OBYC materials have different cost elements based upon valuation class. so how the planned vs actuals will be show in the report.
Regards
Avinash

Hi Avinash,
See my replies below.
1 a & B: You are planning Qty on NWA and capturing costs - labor & Equipment on NWA elements.
When you are having elaborated to NWA-Element level, split your total work on each NWA-element and post labor cost. Thus you will have planned Vs actual costs at one place.
coming to equipment cost - are you capturing using PO through GR?.
2.a : Option1- create a separate WBS elements for materials and plan cost at WBS level. That value would be your total planned cost of material procurement as estimated. Under this WBS elements create NWAs and assign the materials. With this set up you can assign material and procure so that will have actual costs coming from GR.
Option 2: Create a one General Cost activity and assign the total planned cost of material on this NWA.
When you assign the material components, diligently you have to reduce the equivalent amount from the general costs activity. Also note that on component screen, you have to check box "Cost relevant" so that material cost will add to Cost NWA. Let the different materials have their own valuation class and have default CEs accordingly. that would not be big issue.
Please discuss with your MM team to get more information. Also my suggestion is to leave blank CE field in configuration.
The option2 is very cumbersome and high risk but one have to be very cautious to reduce the value from Cost NWA in order to sustain the planned material costs whenever they added.
3. I have answered the relevance of Cost relevance check box in above.
Hope above makes sense.
Thanks,
Sudhakar

Meaning of cost element

please explain about cost element. In OBYC we use this concept.
since i am not a FI consultant neither I have FI background.
I have gone through the defination but could not understand the concept.
Please donot provide that definations as it won't serve the purpose.

Dear Geetika,
Cost element is nothing but your Profit and Loss GL accounts you create in Finance.
For ex. If you got various expenses like Administration exp, Sales Expense, Stationery Expenses etc... all these will be created as a GL account.
All these GL will be created as a Cost element in the Controlling module in order for reporting purpose.
So when ever you post the FI entry for any expenses for which a cost element is created, a corresponding entry will be posted to Controlling modules for reporting purpose.
Cost elements cannot be posted individually , it has to be collected in a Cost object . Cost Centers, Internal Order, WBS elements
are some Cost objects against which cost elements can be used.
Cost Elements has two types
Primary and Secondary cost elements.
Primary cost element is the one which we create with reference of GL and it will be identical to your GL account.
Secondary cost element can be created as per your desire.
OBYC setting is used for MM integration and there is no link between cost element and OBYC settings.
Thanks and regards
Praveen.J

Material Groups and assocaited valuation class and cost element.

Hi Gurus
Please help
I can see in the config the material group and associated valuation class is for Items without a materisl master, however where is the cost element derived, as I cannot see this data anywhere.
Regards

Hi
For some POs on cost center, (account assignment category K for example), you should have to enter a material group.
In configuration, you will assign a valuation class to these material groups (in spro, tcode OMQW). SAP will derive the cost element by reading table T030 (tcode OBYC) for the given valuation class.

Material and cost element

Hi All,
Can someone clarify this?
Do we assign a material to a cost element? If so why do we do that.
All i know is every material is assigned a valuation class which is used in account determination OBYC.
Regards,
Reddy

Hi,
The Cost elements are created from Costing point of view. Generally the valuation class have the assignement to GL Accounts in OBYC Account assignment.
Sometimes it happens that some of the material are directly consumed to the cost center, in such case we have to assign the cost elements (GL Account) to cost center in OBK9. if the user wants to have the effect in directly to COPA, you should check the profitability segment in OKB9.
So understanding indirectly, Materials are to be assigned to Cost element to be effected in Controlling.
I hope you understood.
Regards,
Jigar

Expense Cost Elements

Hi
When creating cost elements for expense accounts, do I need to create the cost elements for all the expense accounts OR eleminate cost of sales accounts and create the cost elements for the balance of the expense accounts. If so please let me know the reason
Thanks
Moderator: Don't double post and search SDN before posting

Hi
Usually COGS (OBYC - GBB-VAX) and Prod Variuance accounts (OBYC-PRD - PRF) are not created as cost elements
COGS is created as a cost ele if you are in MTO scenario with sales order as a cost object or where sales order is tagged to a WBS element or where you have account based COPA.. The COGS account in this case is assigned in OBYC - GBB-VAY and not GBB-VAX...
Barring these (GBB_VAX and PRD_PRF), all P&L accounts can be created as cost ele at a technical level... you may not create some GLs as cost ele based on your business requirement... But, Ideal is to create them as cost ele barring GBB-VAX and PRD-PRF...
Reason why you exclude them is that COGS is updated via VPRS cond type AND/OR by Cost Component Split in COPA using Costing Key
PRD-PRF is not created as cost ele because variance is updated to costing based COPA using PA transfer structure separately..
Regards
Ajay M

Cost element in FRL in obyc

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