Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / hannah
Hi,
A cost center as you will know is for fixed reporting for a
long time span as part of your company structure (cost
center usually = department or work center).
An internal order is used to accumulate cost for a specific
project or task for a specific time period. An internal
order is therefore used for a short period with a specific
deadline.
Your internal order will usually settle to cost centers (and
not visa versa) according to the settlement rule in the
order setup.
An internal order can therefore be used to group all the
expenses incurred to plan and hold a conference over a 3
month period. The order can be settled on a monthly basis to
cost centers.
When the conference is finished the order can be settled
finally. The cost of the conference will then be spread over
2 or more cost centers, but can be viewed in total on the
internal order when needed.
It is important to understand the difference between a
settlement and an assessment cycle. An assessment cycle
distributes costs from one cost center to various other cost
centers. You cannot assess from a cost center to an internal
order nor visa versa. Assessment cycles are only between
cost centers.
Settlements are used for orders. In the setup of each order
is a "settlement rule". In this settlement rule you tell the
system to which cost centers the cost in the order must be
settled.
Typically, you will execute the following procedure at
month-ends:
1. Settle all orders - this will settle all costs on orders
to cost centers.
2. Run assessment cycles - Now that you have al costs
against cost centers from your orders, you can start
distributing costs between cost centers with assessments.
Costs are posted to an order. When you process a purchase
order you post to the internal order and not to a cost
center. The same applies to journals in FI. You will post
the costs to the order and not to a cost center. You will
then settle the order on month-ends to post to the relevant
cost centers. It is very important to settle these orders
otherwise FI and CO will not
balance on your system.
Internal orders can also be used as "statistical" orders.
This is also specified in the setup of the order. You do not
have to settle statistical orders. When posting costs, you
will post to the cost center and the order simultaneously.
Both have to be specified when posting journals or purchase
orders against statistical orders.
Thank you.
| Is This Answer Correct ? | 26 Yes | 1 No |
Post New Answer View All Answers
What are user exits and name an example where one could be used in the fi/co modules?
name three distinct characteristics of fi-gl? : fi- general ledger
What do you mean by component scrap?
how can I bank payment (standard/partial/residual) against purchasing document and WBS Element. how data will be flow in fbl3n
What is the legacy system migration workbench (lsmw) and when would you use it in your sap fi/co rollout?
What is the meaning of Retained earning account ? why it is mandatory area in SAP FI
What is an internal calculation key? : fi- asset accounting
What are validations and substitutions?
View / tahle v_anka_08 can only be displayed and maintained with restrions
Define the term "field status varient"?
I'm facing a problem while posting a transaction, the errors showing "withholding tax amount exceed the total line item." I know the anmount calculated is more than the Base amount itself. But as i'm not a FI candidate, I want to know from where I have to change so that I can do the transaction, condition is that I cannot change any rate and code of ewt tax. Pls. help me out, it's urgent.
what is cmm level 5 company? like that cmm level 4, 3....
What are the options available while performing revaluation in an actual costing run?
How is it possible to apply 2 different overhead rates for 2 different finished goods?
After entering a document can you delete the entry? Can you change the document?
