Controlling Cost Centers1. 2 Course Overview Objectives Provide an overview of the CO module Identify CO master data terminology and concepts Understand

Controlling Cost CentersControlling Cost Centers 11

Controlling Cost CentersControlling Cost Centers


Course Overview ObjectivesCourse Overview Objectives Provide an overview of the CO moduleProvide an overview of the CO module

Identify CO master data terminology and conceptsIdentify CO master data terminology and concepts

Understand the cost center processUnderstand the cost center process

List the triggers for changes to the cost center hierarchyList the triggers for changes to the cost center hierarchy

Describe the various tools for creating, changing, Describe the various tools for creating, changing, deleting, and displaying cost centers/cost center groupsdeleting, and displaying cost centers/cost center groups

Explain the various CO master data rolesExplain the various CO master data roles


Overview of Controlling (CO)Overview of Controlling (CO)Definition

Controlling (CO) represents the County’s flow of cost and revenue. It is also a management instrument for organizational decisions.

Controlling facilitates coordination, monitoring and optimization of all processes in an organization.

Controlling (CO) and Financial Accounting (FI) are independent components in the SAP R/3 system. However, the two components are tightly integrated and the data flow between the two components takes place on a regular basis.


SAP Financial and Purchasing SAP Financial and Purchasing ComponentsComponents

Manages vendor invoices

Manages responsibility accounting

The “Top” book of financial records

Manages customer billing

Manages fixed assets and depreciation

Accounts Receivable

FIFI

Controlling

Accounts Payable

Asset Accounting

FIFI

COCO

FIFI

General Ledger

FIFI

Manages purchasing/inventory

management

Materials Management

MMMM


FI ModuleOther

Financial Modules

HR/MaterialsManagement

Modules

ACCOUNTSRECEIVABL

E

ACCOUNTS

PAYABLE

ASSETS FUNDS MANAGEMEN

T

CONTROLLING

GRANTSMANAGEMEN

T

What Goes WhereWhat Goes Where

PAYROLL

PURCHASING

INVENTORYMANAGEMEN

T


Cost CenterCost Center

Cost Center GroupCost Center Group

Key CO Terminology:Key CO Terminology:


Cost CenterCost Center

Areas of responsibility in the County that incur costs.

Examples: Tax Assessor Administration Tax Motor Vehicle Tax Automation Human Resources Administration Human Resources Benefits etc.


Cost Center Cost Center (continued)(continued)

As cost centers are created, the following attributes are defined:

Cost Center ID Number (10 digits) Validity Period Name (up to 20 characters) Description (up to 40 characters) Person Responsible (department head) Department Cost Center Category (ex: Admin) Hierarchy Area (ex: Human Resources) [name of cost center group (dept)] Business Area (use 1000*)

* For CSCD State, use 2000.


Cost Center GroupCost Center Group

A hierarchical group of cost centers.

Examples: Elections Tax Human Resources etc.

After a cost center group is created, cost centers are assigned to that group.


Cost Center Group Cost Center Group (continued)(continued)

As cost center groups are created, the following attributes are defined:

Cost Center Group Name (10 characters, no spaces)

Description (up to 40 characters)


Cost Center Group Cost Center Group (continued)(continued)

Examples:

= cost center group; = cost center;


Create/Change Cost Centers Create/Change Cost Centers Business ProcessBusiness Process

1. Create Cost Center Group

Within Hierarchy

2.Create/Change

Cost Centers

3. Assign Cost

CenterTo

Hierarchy(Cost

CenterGroup)

4. Assign Cost Center

ToFunds

Management*

5. Make Changes To

Cost Centers/Groups

* Performed in Funds Management module


Process Triggers and OutputsProcess Triggers and Outputs (cost center groups) (cost center groups)

Process:

Trigger: Output:

Create a new cost center group (OKEON)

Business need for a new cost center group.

Updated cost center hierarchy.

Change a cost center group (OKEON)

Business need to change an existing cost center group.


Move a cost center group (OKEON)

Business need to move an existing cost center group to a new location in cost center hierarchy.


Delete a cost center group (KSH2)

Unneeded cost center group.



Process Triggers and OutputsProcess Triggers and Outputs (cost center) (cost center)

Process:

Trigger: Output:

Create a new cost center (OKEON)

Business need for a new cost center.


Change a cost center (OKEON)

Business need to change an existing cost center.


Move a cost center (OKEON)

Business need to move an existing cost center to a new cost center group.


Delete a cost center (KS04)

Unneeded cost center.



1. Creating Cost Center 1. Creating Cost Center GroupsGroups

TWO OPTIONS:

A. Manual Method (KSH1)

B. Standard Hierarchy Tool* (OKEON)

*Note: The Standard Hierarchy Tool allows the user to view the existing cost center hierarchy as they are creating their new cost center group.


1. Creating Cost Center 1. Creating Cost Center Groups (continued)Groups (continued)

A. Manual Method (KSH1)


1. Creating Cost Center 1. Creating Cost Center Groups (continued)Groups (continued)

B. Standard Hierarchy Tool (OKEON)

- used to specify timeframe for changes/updates. Must be checked before using the Standard Hierarchy tool.


2. 2. Creating/Changing/DeletinCreating/Changing/Deletin

ggCost CentersCost CentersOPTIONS:

A. Create A Cost Center (KS01)

B. Change A Cost Center (KS02)

C. Delete A Cost Center (KS04)

D. Collective Processing of Cost Centers Change (KS12) Delete (KS14) Standard Hierarchy Tool* (OKEON)

*Note: The Standard Hierarchy Tool allows the user to view the existing cost center hierarchy as they are creating, changing, or moving cost centers.


2. Creating A Cost 2. Creating A Cost CenterCenter

A. Create A Cost Center (KS01)


2. Changing A Cost 2. Changing A Cost CenterCenter

B. Change A Cost Center (KS02)


2. Deleting A Cost 2. Deleting A Cost CenterCenter

C. Delete A Cost Center (KS04)


2. Collective Processing 2. Collective Processing of Cost Centersof Cost Centers

D. Collective Processing – Change (KS12)

- used to “drill down” and change a cost center;



D. Collective Processing – Delete (KS14)

Note: Reexecute with “Test Run” indicator removed after successful test.



D. Standard Hierarchy Tool (OKEON)

= copy;= create;


3. Assign Cost Center 3. Assign Cost Center to Hierarchyto Hierarchy

OPTIONS:

A. Individual Processing of A Cost Center Create (KS01) Change (KS02)

B. Collective Processing of Cost Centers Change (KS12) Standard Hierarchy Tool* (OKEON)

* Can be used to “drag and drop” a cost center to a new cost center group.


4. Assign Cost Center to Funds 4. Assign Cost Center to Funds Management Management (done in Funds (done in Funds

Mgmt)Mgmt)

Funds center #1 Fund ABC

Commitment Actual Budget Salaries $60,000 $70,000Operating 15,000 25,000

Total 75,000 95,000Budget control is at the combination of the fund/funds center/ commitment item/functional area

Cost center #7

Cost element Actual Plan Wages $10,000 $11,000Overtime 3,000 4,000Travel 6,000 6,000Utilities 4,000 3,000

Total 23,000 24,000

Cost center #6

Controlling(Managerial Reporting)

Funds Management(Budget Control)

Note: There is a one to one relationship of cost centers to funds centers.

Funds center #2 Fund DEF


Total 55,000 85,000

Cost Objects Funds center #1 Fund ABC


Total 75,000 95,000


5. Make Changes To Cost 5. Make Changes To Cost Centers/Cost Center GroupsCenters/Cost Center Groups

OPTIONS:

A. Cost Center Group Changes Change A Cost Center Group (KSH1) Collective Processing of Cost Center Groups

Standard Hierarchy Tool (OKEON)

B. Cost Center Changes Change A Cost Center (KS02) Delete A Cost Center (KS04) Collective Processing of Cost Centers

Change (KS12) Standard Hierarchy Tool (OKEON)


Display Transaction Codes for Display Transaction Codes for Centers/Cost Center GroupsCenters/Cost Center Groups

DISPLAY OPTIONS:

A. Cost Centers Display A Cost Center (KS03) Display Standard Hierarchy Tool (OKENN)

B. Cost Center Groups Display A Cost Center (KSH3) Display Standard Hierarchy Tool (OKENN)


CO Roles/CO Roles/Authorized TransactionsAuthorized Transactions

A. CO – Display Role - Display A Cost Center (KS03) Display Standard Hierarchy Tool (OKENN)

B. CO – Master Data Role - Create A Cost Center (KS01) Change A Cost Center (KS02) Delete A Cost Center (KS04) Collectively Change Cost Centers (KS12) Collectively Delete Cost Centers (KS14) Standard Hierarchy Tool (OKEON) Create Cost Center Group (KSH1) Change Cost Center Group (KSH2)


Course Overview SummaryCourse Overview SummaryYou should now be able to:You should now be able to:

Provide an overview of the CO moduleProvide an overview of the CO module

Identify CO master data terminology and conceptsIdentify CO master data terminology and concepts

Understand the cost center processUnderstand the cost center process

List the triggers for changes to the cost center List the triggers for changes to the cost center hierarchyhierarchy

Describe the various tools for creating, changing, Describe the various tools for creating, changing, deleting, and displaying cost centers/cost center deleting, and displaying cost centers/cost center groupsgroups

Explain the various CO master data roles Explain the various CO master data roles


Accessing Training MaterialsAccessing Training Materials All TITAN training materials for Phase II are stored on the Tarrant All TITAN training materials for Phase II are stored on the Tarrant

County websiteCounty website This website is accessed through your Internet Explorer from any This website is accessed through your Internet Explorer from any

computer that has internet access; you do not have to be on the computer that has internet access; you do not have to be on the Tarrant County network. The URL for direct link to the Training Tarrant County network. The URL for direct link to the Training Materials website is:Materials website is:

http://www.tarrantcounty.com/titan/lib/titan/training/index.asphttp://www.tarrantcounty.com/titan/lib/titan/training/index.asp Set up this website as a favorite in your web browser for quick future Set up this website as a favorite in your web browser for quick future

accessaccess

Enter the URL above in the addressEnter the URL above in the address field in your browserfield in your browser When you reach the website, go toWhen you reach the website, go to Favorites > Add to FavoritesFavorites > Add to Favorites in the in the Browser menuBrowser menu A pop-up window will be displayed withA pop-up window will be displayed with a default name for the site. Click OK.a default name for the site. Click OK. To access this site in the future, justTo access this site in the future, just click on the Favorites item in the menuclick on the Favorites item in the menu and highlight the name for the website.and highlight the name for the website. You will go directly to the website. You will go directly to the website.

http://www.tarrantcounty.com/titan/lib/titan/training/index.asp


Accessing Training Materials Accessing Training Materials (cont’d)(cont’d)

Review the instruction page to see how to use the websiteReview the instruction page to see how to use the website

Click on the Click on the CoursewareCourseware link at the top of the Instruction page link at the top of the Instruction page

A A Listing of CoursesListing of Courses will be displayed will be displayed

Click on the Click on the Course TitleCourse Title to see a general description of the to see a general description of the content of the coursecontent of the course

oror

Click on one of the buttons beside the Course Title to go Click on one of the buttons beside the Course Title to go directly to either the directly to either the Overview, Quick Reference Cards, or Overview, Quick Reference Cards, or TutorialsTutorials

These training materials will be available for your use and These training materials will be available for your use and reference at any timereference at any time


Running TutorialsRunning Tutorials An additional learning tool is being provided with the Phase II SAP An additional learning tool is being provided with the Phase II SAP

implementation -- implementation -- TutorialsTutorials Tutorials are simulations of the SAP system that take you through a Tutorials are simulations of the SAP system that take you through a

transaction step-by-step in a mock SAP environment. transaction step-by-step in a mock SAP environment. These can be viewed in two ways:These can be viewed in two ways:

► As a movie that takes you through the transaction in a demonstration, As a movie that takes you through the transaction in a demonstration, oror

► As an interactive, hands-on practice session that stops on each screen As an interactive, hands-on practice session that stops on each screen and directs you to make entries in fields or take actions per instructions and directs you to make entries in fields or take actions per instructions provided by the provided by the wizardwizard and in the and in the bubblesbubbles

Tutorials are provided with each course in the Finance and Tutorials are provided with each course in the Finance and Purchasing trainingPurchasing training

A list of the tutorials is provided at the end of each course.A list of the tutorials is provided at the end of each course. Go to the Training Materials website to access and run these Go to the Training Materials website to access and run these

tutorials. Detailed instructions are provided on the websitetutorials. Detailed instructions are provided on the website

Happy Tutoring!!


Training SandboxTraining Sandbox

An SAP environment An SAP environment (Training Sandbox)(Training Sandbox) where you can practice your where you can practice your skills in a real instance of SAP will be available after June 18skills in a real instance of SAP will be available after June 18

The sandbox can be accessed through the standard logon process The sandbox can be accessed through the standard logon process discussed in Lesson 2 of the SAP Basic Navigation coursediscussed in Lesson 2 of the SAP Basic Navigation course

The only differences are:The only differences are:

Highlight the Training environment on the Logon padHighlight the Training environment on the Logon pad Click logonClick logon Enter Enter 520520 in the Client field in the Client field Enter the same User Id and Password you are assigned for Enter the same User Id and Password you are assigned for

ProductionProduction

Feel free to practice any of the tasks in the basic navigation course and Feel free to practice any of the tasks in the basic navigation course and any of the transactions included in other courses you take. Use the any of the transactions included in other courses you take. Use the Quick Reference CardsQuick Reference Cards to walk you through the transactions. to walk you through the transactions.


Getting HelpGetting Help

1

2

3

Review the on-line help in SAP

Ask your peers or super user for assistance.

Review your training materials and notes.


Tarrant County HelpTarrant County Help

Problems with running tutorials?Problems with running tutorials? Training Mailbox –Training Mailbox – [email protected]@tarrantcounty.com

After utilizing the various methods of help on After utilizing the various methods of help on the previous page, if you still have questions or the previous page, if you still have questions or problems problems

oror

If you have problems at any time with If you have problems at any time with accessing SAP, printing, computer or network accessing SAP, printing, computer or network problems, etc.problems, etc.

Contact the Tarrant County IT Help Desk at Contact the Tarrant County IT Help Desk at 817-884-3507 817-884-3507

mailto:[email protected]

Documents

Controlling Cost Centers1. 2 Course Overview Objectives Provide an overview of the CO module Identify CO master data terminology and concepts Understand