IO/ and Cost Center

Question

Hi Everyone,
Would there be anyone willing to help m with IO, and CC. i have read some books, and still im not very clear.
let me know if you could, i will compensate for your services.
Thanks

Answer 1

Actual Assessment Cycle:
Assessment was created to transfer primary and secondary costs from a sender cost center to
receiving controlling objects. During assessment, cost centers or business processes can be used as
senders
Stat Key Figures: You can use statistical key figures as the tracing factor for periodic transactions such as distribution or assessment, and for key figure analysis.
<b>Commitments</b>: Commitments are payment obligations that are not entered into the accounts, but at a future date lead
to actual costs. They are incurred in the purchasing function, in the "Materials Managment"
component:
- The internal communication for a purchasing request is known as a purchase requisition (from the
ordering party to the purchaser). A purchase requisition is a provisional obligation, that can be
changed at any time. You do not need to assign a CO object to a purchase requisition row. If you do
not do so, then the commitment is not displayed in CO.
- A purchase order is a contractual agreement specifying that goods or services from a vendor
will be taken under certain, agreed conditions Therefore, a purchase order is a binding obligation, as
it is based on a contractually fixed agreement. For a purchase row that is assigned to a cost element,
you need to specify a CO object, so the commitment is also displayed in CO.
n If you create a purchase order with reference to a purchase requisition, the commitment is
reclassified (as a purchase order commitment) in CO.
n The commitment is reduced by processing goods receipts against the purchase order. Actual costs
are posted to the CO object. This business transaction is continued until the purchase order is
processed, and the commitment amount is zero.
n You need to activate commitments management in the controlling area in CO. Additionally, the
cost center may not be locked for commitments (locking indicator).
n Commitments are not reduced when you create an outline agreement. These are only incurred when
you create the contract release order (contact), or goods release order (scheduling agreements).