The Case for a Center of Expertise

Discover how having detailed activity types map to each work center level can provide you with detailed variance analysis at the cost centers. Key Concept Activity types specify the manufacturing activities produced in plant-related cost centers. Multiplying activity types used in the production process through the assigned production cost centers creates more transparency and provides…...…

The indirect activity allocation cycle can be useful for allocating activity costs from one cost center to another. When it is difficult to determine how much activity to post from one cost center to another, you can use a method that involves the automatic calculation of activity quantities. Understanding how to set up the master…...…

Inaccurate profit center accounting (PCA) reports can result from using profit centers incorrectly for triangular sales orders. The author demonstrates how to avoid this situation by pointing out some common mistakes and providing tips on setting up profit centers correctly. Recently I was working for a company that wanted to use profit center accounting (PCA)…...…

Many reports that monitor cost center performance are incomplete because they account for the planned output rather than the actual output of the cost center. The author demonstrates how to use adjusted costs called target costs. Calculating target costs will provide you with a report that more accurately reflects the performance of your cost centers…....…

Learn a way of using a standard business transaction event (BTE) to reduce the number of postings to the dummy profit center and the consequent need to reclass these (incorrect) postings. Organizations that have implemented the classic general ledger and have activated Profit Center Accounting (EC-PCA) are advised to implement this BTE to significantly curtail…...…

When your organizational structure changes, are you sure your profit centers are accurate? See how features in the forthcoming enhancement package 5 allow you to reorganize your profit centers in SAP General Ledger without the cost or headache. Key Concept Reorganization in SAP ERP Financials is the process of determining which master data and transactional…...…

A strong cost center hierarchy is necessary for analyzing your company’s performance. If your structure is not meeting your needs, try this 11-step process to develop a new, more effective cost center hierarchy. This process is best suited for small- to medium-sized companies. Key Concept A company must have a logical grouping of costs to…...…

When a product is manufactured, an accounting entry is automatically made each time that a posting is made in the production process. Some of these postings take place in FI, while others are posted only in CO. Follow the flow of these accounting entries and understand the reconciliation process between FI and CO. Key Concept…...…

Learn how to activate an alternative set of Web applications to maintain the master data in SAP Managerial Accounting (CO). Configure them to meet your organization’s needs, showing only the fields you actually use and positioning the various screen parts so that users can focus on what’s important. Key Concept The technology behind the new…...…

ManagerLearn a step-by-step procedure for defining and transferring test requirements from SAP Solution Manager to SAP Quality Center by HP. Create test components in SAP Test Acceleration and Optimization and execute the test cases in SAP Quality Center. Key Concept The business process testing model supports the workflow of the user interface design that allows…...…