SAP Controlling FAQs – Actual Posting and Allocations

1.    [True] or False? Posting actual cost in Controlling involves the transferring of primary costs from other modules to Controlling, as well as moving costs within Controlling.

2.    List the two main types of actual posting to CO.
There are two types of actual postings to CO, Transaction Based Postings and Periodic Allocations.

Transaction Based Postings (also known as Transaction based allocations) are posted on a real-time basis from other modules or within CO.  This enables up-to-the-minute reporting of costs incurred on the cost centers at any time during the period.  There are four transaction-based postings to CO:

From other modules:
•    Direct postings to cost centers from other modules, such as FI, AM, and MM.

Within CO:
•    Reposting
•    Activity Allocation
•    Posting of Statistical Key Figures.

Periodic Allocations exist entirely within CO.  They occur at the end of the period after all primary postings have been completed.  Periodic allocations require cycles and segments to be executed.  There are five main types of periodic allocations:

•    Periodic repostings (periodic transfers)
•    Distribution
•    Assessment,
•    Imputed Cost Calculation
•    Indirect Activity Allocation.

3.    [True] or False Transaction based posting within CO may be accomplished through the use of any of the following: Reposting, Activity Allocation and posting of Statistical key figures.

4.    How many documents are created when primary costs are posted to CO from another module?
Two documents are created when primary costs are posted to CO from another module:
•    The original document in FI, AM or MM
•    A parallel document in CO which displays the data from a cost accounting viewpoint.  The CO document is summarized according to cost element and cost object.

5.    True or False?  Repostings are used to reallocate costs that were incorrectly posted to a cost center.
True.  Repostings are used to reallocate costs that were incorrectly posted to a cost center. There are two types of internal repostings, Full-Transaction Reposting (i.e. Reposting of the entire transaction) and Line Item Reposting (i.e. Reposting of a portion of the original transaction).

In a Transaction Based Reposting, the entire original cost center posting is reversed and reposted to a different, corrected, cost center.  The FI document number does not need to be referenced for the reposting.  A new CO document number is created for the reposting.  The original FI document remains unchanged (references old cost center).

A Line Item Reposting is used when only certain line items in the original posting are incorrect.  The FI document number must referenced for the reposting.  A new CO document number is created and the old cost center is referenced on the FI document.

6.    List and define the two types of internal Reposting.
See answer to question 5 above.

7.    Describe Manual Cost Allocation.
Manual Cost Allocation can be used to post primary cost as well as secondary costs to avoid the creation of a cycle for simple allocations, to transfer external data or to correct false secondary postings. Manual cost allocation applies to actual data only. You cannot copy this data into planning.

8.    Define Direct Internal Activity Allocation.
Direct Internal Activity Allocation is the process of recording activities performed by a cost center and simultaneously allocating those activities to receiving cost centers based on consumption. In the case of direct activity allocation, the sender (output),  and the receiver (consumption) activity volumes are known.

9.    [True] or False? In direct activity allocation, the sender (output), and the receiver (consumption) activity volumes are known.

See answer to question 7 above.

10.    True or False?  Periodic allocations of cost exist in both FI and CO.
False, Periodic Allocations exist entirely within CO.  They generally occur at the end of the period after all primary postings have been completed and they require cycles and segments to be executed. There are five main types of periodic allocations: Periodic repostings (periodic transfers), Distribution, Assessment, Imputed Cost Calculation and Indirect Activity Allocation.

11.    [True] or False? Periodic allocations require cycles and segments to be executed.
See answer to question 9 above.

12.    List three types of periodic allocations.
See Question 9

13.    ___________enables the correction of multiple posting made to cost centers during the period, therefore producing the same results as several transaction-based repostings.
Periodic reposting enables the correction of multiple postings made to cost centers during the period, therefore producing the same results as several transaction-based repostings.  This reposting functionality can also be utilized at the end of a period to transfer costs from a clearing cost center to appropriate receiving cost centers. When used in this fashion, periodic reposting is very similar to distribution.
The main difference between periodic repostings and distribution is the purpose for usage envisioned by SAP when the methods were created.  Periodic reposting functionality, similar to transaction-based repostings, was designed for error correction, whereas distribution was designed as a primary cost allocation method.  However, other than their intended purposes, the two methods are practically identical and either method may be used whenever desired.

14.    Explain both the iterative and cumulative form of cycle processing.
Iterative processing: iterative sender/receiver relationships (sender is also amongst the receivers) are considered when this cycle is processed. The iteration is repeated until each sender is fully relieved of costs provided. Cycles may be set to iterative processing for both plan and actual data.
Cumulative processing: all posted sender amounts since the first period are accumulated and allocated based on the tracing factors accumulated since this period. The difference between the accumulated amount and the posted amounts in previous periods is posted in the current period. The postings in previous periods remain unchanged. Cycles may be set to cumulative processing for actual data only.

15.    Describe imputed cost calculation in CO.
Imputed cost calculations are used to smooth the effect on cost centers for large, one-time charges, such as insurance premiums or employee bonuses.  By smoothing one-time expenses in CO, price fluctuations from period to period can be avoided.  There are two methods for calculating imputed costs in the R/3 system Cost Element Percent Method and Target = Actuals Method.

16.    List and define the two main types of indirect activity allocations.
Indirect activity allocation is the process of allocating activities from a sender to a receiver cost object.  The activities allocated to the receiver are multiplied by the planned activity price to determine the total amount.

There are two types of indirect activity allocations:
•    Sender activities known
The activity type is allocated from the sender to the receiver based on receiver tracing factors (i.e. actual receiver statistical key figures, planned receiver activity types, etc.)
This type of indirect activity allocation must be set up with an activity type of  Category 3.  This category is defined for manual entry (of known sender values),  using indirect allocation (tracing factors).

•    Sender activities unknown
Activities are inversely allocated from the sender cost center using receiver tracing factors or fixed amounts/percentages.
This type of indirect activity allocation must be set up with an activity type of category 2.  This category is defined for inverse determination (of sender values based on receiver consumption) using automatic allocation (to receivers).

17.    Describe the use of the reconciliation ledger.
The reconciliation ledger keeps track of transactions between company codes within one controlling area, since such cross company allocations result in an imbalance between CO totals and FI totals. Because legal reporting is based in FI, all transactions that cross company codes in CO must be reflected in FI.

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