Functional area and cost of sales accounting (company code 2000) active

Hi There!
I hope someone can help.
In our sandbox system, whenever I try to convert a Purchase requistion into a Purchase Order I get the following error message : "Functional area and cost of sales accounting (company code 2000) active".
Anyone know how I can resolve this issue?
Kind regards,
Karl

Hi,
Double click on the error message & check the message Number..
Then go to
Spro>MM>Pur
Attributes of system messages & change the Message from Error to Warning..
Thx
Raju

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Segment Reporting and Cost of Sales Accounting

Hi Experts,
Will there be an impact if we won't activate cost of sales accounting but we activated document online splitting and segment?
Thanks.

Hi,
They are different. Cost of Sales Accounting requires the functional area to be assigned or a subsitution rule activated.
Hope this helps.
Cheers,
Gimmo

Disntinguish between functional area and cost center

Hello,
what's the real pupose of defining func. areas and assigning to cost centers.
ok, we can capture all the costs of all cost centers , fine, but even the cost center will do that and we can report at cost center grp level or at any grp level, but still not clear abt the true significance of it as compared to cost cneter which does the same. Also how should we go about defining functioanl areas
please advice.
points will be awarded.
thnaks very much.

Hi,
Double click on the error message & check the message Number..
Then go to
Spro>MM>Pur
Attributes of system messages & change the Message from Error to Warning..
Thx
Raju

Re-route sales and cost of sales for shipments to vendors.

We are increasing a process where we will ship raw materials to a vendor, they will use this material in production for a finished good that the vendor will sell back to us. It is not sub-contracting, since we would sell these raw materials in bulk. This is also not our normal course of business, so we can not have these shipments mixed in with our regular sales and cost of sales accounts.
We would like to ship these materials out on a delivery and set up a receivable from our vendor, but do not want to record the billing / pgi transaction in regular sales / cost of sales. We have a method to re-route the sales, but from the cost of sales side the possibilities I see are only valuation class.
Does anyone else have a good process for re-routing sales and cost of sales where the process will consistantly re-route cost of sales whenever the sales account is re-reouted?
Thank you!

Hi Elex,
I Appriciate your interest in giving clarity while posting a thread.
Since you are already using REFX and SD is not implemeted, the best option is go a head with REFX module only.
Try to create a saparate Contract type as "Real Estate RES. Sales" and create various conditions related to "Sales" based on your business requirement, (Because we dont have any special pricing procedure to adopt in this ).
As per my understanding you can use the below conditions as an example :
RE Sale Price
RE Sales Installment
RE Sales Discount
RE Sales Commission...etc. based on your pricing you can add the conditions.
All the above charges you can make as one time charges based on your business requirement except Sales installment.
Even though rental objectis sold but the propery is located in your premises you mught have provideing some services to the sold property as well, so you can add one more condition type as
RE Common maintenence / Annual maintenence charges( which is recurring ).
Adopting this process in REFX module will be one best advise for RE SALES.
Based on your requirmeent you can integrate the REFX with PS ( for new devolopments / constructions / porjects ) & Pm modules for services.
Since you are already using REFX leasing process its like entention of the existing process.Hope it may helps you.
Regards,
Subbarao.Narne

Period accounting vs Cost of Sales accounting

Hello all,
Could someone explain to me the difference between Period accounting and Cost of Sales accounting? Where is period accounting configured in ECC 6.0?
I am trying configure PCA. The client wants the Profit centers to be setup product-wise. They have 3 products: a) a handheld GPS device, b) the accessories for the GPS device, c) and the subscription. I have setup 3 profit centers according to the 3 products.
Does either cost of sales accounting or period accounting come into the picture in my scenario? What I mean is, do either of the two methods have to be configured? And if so, why?
I have read in some places ("Configuring FICO" by Hurst & Nowak) that preparing PCA to accept actual postings can be very simple or complex. On the simple side, all that is required is to activate the fiscal year control parameters, create the proper document types, and define the necessary number ranges. For more complex solutions, additional account assignment may be maintained, and internal goods movement can be defined.
My client is just looking for a plain vanilla implementation of PCA at this time. Does that affect whether we use period or COS accounting?
Thanks in advance! Points available.

Hi,
Do check out the following documentation :
http://help.sap.com/bp_bblibrary/600/html/N74_EN_GCC.htm
Cost of Sales Accounting
http://help.sap.com/saphelp_erp2005vp/helpdata/en/b3/c3e040852f712ae10000000a155106/content.htm
Period Accounting
In period accounting, the performance of a particular business unit (profit center) - that is, its revenues, changes in inventory and capitalized services - is set off against the total costs of the period. This occurs at the G/L account level and adheres to the formal structure of Financial Accounting. This gives you a uniform structure of report data and lets you reconcile the data of cost and financial accounting on the basis of cost elements.
Hope this helps.
cheers,
Gimmo

Cost-of-sales accounting / DUMMY-substitution for CO posting w/o func. area

Dear experts,
we activated Cost-of-sales accounting (special ledger - no use of NewGL functionalities).
We use the SAP "Standard substitition" in FI to make sure that all postings on P&L accounts go to special ledger. If no functional area can be derived, posting is assigend to Dummy functional area.
So far so good.
My question is: Is it possible to set up a "similar" substituition in case of CO postings with secondary cost element (e.g. Internal activity allocation, Overhead Rates) on other CO-object without functional area.
e.g. Internal activity allocation from Cost center to production order. No functional area assigned to production order.
I hope you unterstand my question for this issue.
Thanks in advance for your reply.
regards,
Butch

thanks for your answer.
I added the filed FKBER in table VWTYGB01.
Now I can select field "functional area" for CO Substitution.
nevertheless substitution does not work and set functional area on Dummy FB 9990 for CO postings to CO-object without Functional area.
Thats curious because I maintained exactly the same Substitution on an other SAP System (IDES Test System) and here it works.
Any ideas?
Are there further settigs required after maintenance of table VWTYGB01??
Thanks in advance

Functional areas vs. cost center groups for cost of goods sales

What are the benefits of using functional areas over cost center groups when building your p&l for cost absorbtion or visa versa? Which of the two is recommended?

Hi,
1: a P&L statement does not only contain cost-center related postings, you can have different CO-objects (Internal order, WBS-Element,...)but all of them contain the functional area in its master record.
The P&L reporting structure (created via report painter) can use account groups but restricted to one functional area for porper P&L structure creation.
Best regards, Christian

What is the impact of business area and cost center in the sales document

Hi all
I have small doubt regarding what is the impact of bussiness area and cost center in the sales document... what is the uses of these (bussiness area, cost center) is help full for sd module
can any one reply plz....
Thanking you

Hi,
Business Area determines where the revenue should be allocated when you sell a material or a service.
For eg: If your customer is in say Mumbai and he is ordering for a service in Delhi (say DIAL - Delhi International Airport Limited) then based on the terminology.
Your customer would belong to B Basis Business Area - WHERE THE REVENUE IS COMING FROM or WHERE YOUR CUSTOMER BELONGS TO (SALES OFFICE).
Whereas your DIAL sales will belong to A Basis Business Area - WHERE THE REVENUE IS GOING TO.
Cost Center would determine where your allocate your cost to.
Say Rounding Off can be used as a cost element, because some sort of revenue is lost when figures are roudned off..
Hope it clarifies your doubt.
Reward points if satisfactory
Regards
Ravi.D.Mansharamani

GRC-AC 5.3 CUP Functional Area and Company - How does it works?

Hello experts,
Can someone give a clue on how do Roles Attributes -> "Functional Area and Company" works?
I was imagining that it could be used a stage with Approver Determinator by "Role" , but had no success, is that the right way to use it?

Hello Chinmaya,
Thanks for your reply.
In fact, I already use Company and also Functional Area in the role for filtering purposes. I do not need different initiators for different Companies.
What I really tried to do was make GRC-CUP determine the role approvers of a stage to those I informed in Configuration -> Roles -> Attributes -> "Functional Area and Company".
Consider this example: if someone ask for a role that have Functional Areas F1 and F2 and Companies C1 and C2, and I configured Funcional Area and Company F1C1 to approver A, F1C2 to approver B, F2C1 to approver C, F2C2 to approver D. Then the request would go to approvers A, B, C and D. This is sort of what I was expecting, but could not make it work.
Regards,
Vaner

Cost of Sales Accounting

Functional Area "0100" assigned in one General ledger Which one the requirement of 2 company, But Functiona Area should be derived from respective object ( Cost center/ Order etc) for one company which is located in another country.
How it can be achived?

1) activate cost of sales accounting (FI/global settings/company codes/cost of sales accounting ...
-> interesting is you can choose between in preparation en production. The first one means the' functional area' field becomes active for master data assignments but is not posted yet in produciton. Ideally if you need some time to make all the master data assignments.
2) define functional area (under enterprise organisation / Structures ...
3) assign functional area's to CO objects (cost centers / production order types / internal orders , ... and optionally to P&L accounts
4) as of version 47, allow functional area as CO object when working with fixed assets (in fixed assets customizing).
5) define reports in report painter
that is.
-> most of the work is thinking about and setting up the master data assignments (of the functional area). Configuration part is very little.
regards
D

Functional area and Credit Control area

HI
Dear Guru's
Kindly explain me the ,the differenec between Functional area and credit control
area, with examples.
with regards
Arun Kumar

Hi Arun Kumar,
Functional Area :
It organize your business for cost of sales accounting. It allow you to segregate and classify different types of costs within one expense account. For e.g. a single labour account to determine what amount of labour is spent directly on production as compare to sales or hr.
OKBD - Maintain Functional Area
Credit control area:
An organisational unit that represents an area responsible for granting and monitoring credit.
outstanding recievables can spoil the business process. to
control credit limits in sap system we can configure credit
control area.
one company code can hav one credit control area only
but one credit control area can hav many company codes
i.e. u can assign one credit control area to many company
codes.
the relationship is one to many.
Regards,
Haribabu

Subsequent / re-activation of Cost of Sales Accounting

We are currently engaged at a new SAP customer (ECC6) that does not currently require COS Accounting to be activated /functional area functionality, but might require it at a later stage / subsequent to the initial go-live.
Based on the contents of SAP Note 740519, it appears that when COS Accounting is subsequently activated, the functional area cannot be repopulated for historic data when using ECC6.
QUESTION:
Should the customer decide to subsequently activate COS Accounting at the start of a new fiscal year (i.e. post go-live), all the P&L data will be populated with the functional area from the start of the new fiscal year. However, what about the carry forward balances for the Balance Sheet accounts? Is there a way to repopulate the "carried forward" balances in the Balance Sheet with a functional area, else the balance sheet will always contain incomplete functional area data for the carried forward balances.
Also, please advise if there is a program available to repopulate functional areas subsequently in the event of a subsequent activation of COS Accounting. If not, if the customer activate COS Accounting even though they don't require it at present, because it appears that you cannot change the functional area assignments once updated with transactional data?
As such, what is the recommended course of action:
1. Only activate COS Accounting when required, but resulting issues with updating historic data with functional area.... OR
2. Activate and configure pre go-live, but then cannot change functional area assignments once populated with transactional data.
I look forward to hearing from you.
Kind regards,
Dolf

Hi Dolf
   I have exactly the same requirement now with respect to cost of sales accounting. My client went live a couple of months back and now wants to activate Cost of Sales Accouting. I have the same question of how to populate the existing historic data with the functional areas.
   What did you do when you had this issue? Did you find out any way or work around to update the historic data with functional area? What approach did you take during your implementation?
    Your response would be highly appreciated and rewarded.
Vamsi

Substitution for "Cost of sales Accounting" not working with cycle-trx KSC5

Hello togehter,
I have a problem that it seems that a created Substitution for "Cost of sales Accounting" is not executed in our System when running a cycle for Indirect Activity Allocation (Trx. KSC5).
Now I want to debug the Indirect Activity Allocation but I don't know how those Substitution Steps are generated as code that I can set a breakpoint when executing the cycle with Trx KSC5.
I want to try a trace when activating the substitution with transaction OBBZ but I'm not able to analyze in which Forms/Functions the Code is generated.
I also saw some OSS Notes that there are problems with "Cost of Sales Accounting" but I don't know concretely what to do to solve that special problem.
Kind regards
Udo

thanks for your answer.
I added the filed FKBER in table VWTYGB01.
Now I can select field "functional area" for CO Substitution.
nevertheless substitution does not work and set functional area on Dummy FB 9990 for CO postings to CO-object without Functional area.
Thats curious because I maintained exactly the same Substitution on an other SAP System (IDES Test System) and here it works.
Any ideas?
Are there further settigs required after maintenance of table VWTYGB01??
Thanks in advance

Cost of sales accounting & period accounting

Hi folks,
I want to know the difference between cost of sales accounting & period accounting. where do we use them and which is preferable. thanks in advance.
Regards,
Vijay

Two accounting methods used for generating profitability statements are the cost-of-sales method and the period accounting method. Applying either method to a given set of business transactions under a given set of laws yields the same bottom-line result (profit) in concept. The difference is in how the overall profit and loss picture is presented.
 Companies must choose to use one of these methods for generating their legal financial statements. The choice is often determined by country-specific legal requirements.
 Cost-of-sales accounting
 With this method, the emphasis is on matching the revenues for goods and/or services provided (the value that a company gains as a result of sales) against the related expenses for those items (the value that is lost when products are transferred out of the company). Therefore, this accounting method displays profit and loss information in a manner optimized for conducting margin analyses, and as such it is optimal for the sales, marketing, and product management areas.
 Period accounting
 With this method, the emphasis is on summarizing the activity and situational change over a period of time, for a given organizational unit. Therefore, this accounting method presents the revenues and primary expenses that have been incurred during a given period of time and the changes in stock value levels, work-in-process, and capitalized activities. As such, it is optimal for the production and profit center areas.

Cost of sales accounting inactive

hello Guru,
         My client implementing ECC 6.0 . we have activated the cost of sales accounting Global Parameters. we r trying to deactive the COS , system is not allowing to deactive throwing error message
When cost of sales accounting is active, the functional area characteristic is derived and saved in documents and totals records.
Deactivating cost of sales accounting has the following consequences:
     No functional areas are derived for costs posted after cost of accounting has been deactivated.
If you reactivate cost of sales accounting, these same costs remain without a functional area. It is not possible to derive functional areas for these costs at a later stage. Costs that are posted after cost of sales accounting has been reactivated have functional areas derived for them once again.
     The cost of sales accounting ledger, 0F, continues to be updated even after cost of sales accounting has been deactivated, but without the functional area characteristic.
To prevent this happening, SAP recommends that you also deactivate the cost of sales accounting ledger 0F.
Effects on Customizing
You can define when this system message is to be issued in accordance with your requirements.
You do this in Customizing as follows: Controlling -> Controlling: General -> Change Message Control.
The application area and message number can be taken from the technical documentation

Hello
Once Cost of Sales Accounting is active the Ledger 0F will be updated
for all costs posted with functional area.
When you deactivate "Cost of Sale Accounting", this Ledger will still be
updated but without functional area.
To prevent this data inconsistency, the message is set as "Error Message",
that is why you receive this error, and why it recommends that you
change the message to a warning message instead of an error.
Please check your settings in GCL2 to deactivate 0F.
It is recommended that you then set this message back to 'Error' after
deactivation to prevent any other ledger being deactivated by
accident.
Regards
Javier Reviriego

Functional area and cost of sales accounting (company code 2000) active

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