Post on 27-Oct-2014
SAP Business One 8.81Expert Empowerment Session
SAP Business One 8.81Business Logic 3 AdditionCost Accounting Reconciliation Report
Dipan ShahRoll-Out Services, Small Business GTM SalesSAP (UK) Ltd
December 2010
SAP Business One 8.81 ► Expert Empowerment Session© SAP 2010 / Page 2
In this session you will learn about the Cost Accounting Reconciliation Report that forms part of the enhancements in the business logic of SAP Business One 8.81 compared to SAP Business One 8.8.
Objectives
SAP Business One 8.81 ► Expert Empowerment Session© SAP 2010 / Page 3
Agenda
1.Overview
2.Legal vs. Management view
3.Example Business Scenario
4.Detailed Analysis of Cost Accounting Reconciliation Report
5.Upgrading from prior versions
6.Demo
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Basic Cost Accounting1.1) Overview
Enhancements:
Introduced Multi-dimensions concept
Assign up to 5 dimensions
General Setting
View multi-dimensions in a single column
or individual columns
Block posting where distribution rule or
project code is missing
G/L Accounts master data extension
checkbox
Enter default value or use above
assignment
Benefits:
Multidimensional assignment
Enforces completion of data
Greater cost and revenue analysis
Motivation: Enable Cost and Revenue Analysis
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Basic Cost Accounting 1.2) Overview
Enhancements:
Cost center and Distribution rule master
data extension
Assignment to Dimensions
Active setting to speed up selection
Transactions attached to multiple Cost
centers via Dimensions
Data presented in different views using
Dimensions
Benefits:
Speed up entry of data
Better grouping of cost centers
Multiple views can be generated of the
same data
Motivation: Data capture in a single location
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Basic Cost Accounting 1.3) Overview
Enhancements:
Cost Accounting Summary report
Include Journal vouchers
Use of hierarchies for desired report
structure
Budget versus Cost Center report
Reporting per dimension
Cost Accounting Reconciliation report
Cost accounting correction JE
transparent
All new reports are presented in Crystal
Report layouts
Benefits:
Managers see their own data
Supports management decisions
Budget management
Motivation: Management Decisions Backed up by Real Data
SAP Business One 8.81 ► Expert Empowerment Session© SAP 2010 / Page 7
Legal vs. Management view
Considering the different accounting points of view of financial accounting and cost accounting, the purpose of this report is to provide a means of reconciling financial accounting and cost accounting figures.
Selection Criteria
Dimension (single selection)
G/L Account (Multi selection) Only P/L Accounts (Account type = “Sales” or “Expenditure”) can be selected.
Date Type (Posting date/Document Date/ Due Date)
Date range (From...To)
SAP Business One 8.81 ► Expert Empowerment Session© SAP 2010 / Page 8
Example Business ScenarioGeneral Description
For user to ensure that expenses and revenue are posted to the correct period, accrual objects are defined to reflect the difference between financial accounting and cost accounting.
Use case of difference existing between financial accounting and cost accounting: Use Case I: Get an invoice for 240USD for insurance midway through the year. This
reflects a full year’s insurance which needs to be reflected over 12 months of which some fall in the next financial year.
Note: For ease of explanation there are no tax implications in this example. User defines an accrual object for insurance and then records the cost accounting insurance expense amounts by using 2 additional GL accounts. The posting difference is displayed in the Cost Accounting Reconciliation Report.
SAP Business One 8.81 ► Expert Empowerment Session© SAP 2010 / Page 9
Example Business ScenarioPosting process
Example
Insurance invoice comes midway through the year for 12 months
Payment to be made immediately
For Cost Accounting we need to ensure the cost of the insurance is divided over the 12 months of cover
240 (1a)
Current Posting
Supplier
240
20
(1a)
Additional Postings needed
Insurance Calculated
(2) (2)
Insurance Exp
Interim insurance account
20 (3)20 (4)20 (5)20 (6)
(3)(4)(5)(6)
20202020
20
(1b) 240
Postings1a – Invoice for insurance1b – Payment of insurance2-6 – Monthly cost divided over 12 months
For 2-6 we need to define an accrual object and new GL accounts to associate with the insurance expense account
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Example Business ScenarioSteps (1/4)
Step 1: Define Additional G/L Account
Step 2: Define Accrual Objects and maintain account assignment
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Example Business ScenarioSteps (2/4)
Step 3: Create Recurring Postings
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Example Business ScenarioSteps (3/4)
Step 4: Post recurring postings – Monthly based
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Example Business ScenarioSteps (4/4)
Step 5: View Cost Accounting Reconciliation Report
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Detailed analysis of the Cost Accounting Reconciliation Report (1/4)
Financial Accounting All selected P/L accounts are listed with total
posted amounts from all JE postings in the selected period
For G/L accounts with type “Sales”, the amount displayed is calculated as sum(Credit – Debit) of all postings in the selected date range under the column Revenue
For G/L accounts with type = “Expenditure”, the amount displayed is calculated as sum(Debit – Credit ) of all postings in the selected date range under the column Expense
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Detailed analysis of the Cost Accounting Reconciliation Report (2/4)
Cost Accounting Company Related
o Consider in the selected dimension;o JE postings without DR assignment are
included into this part. o Accounts that have no related Accrual
objects are included here.
o For G/L accounts with type “Sales”, the amount displayed is calculated as sum(Credit – Debit) of all postings in the selected date range under the column Revenue
o For G/L accounts with type = “Expenditure”, the amount displayed is calculated as sum(Debit – Credit ) of all postings in the selected date range under the column Expense
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Cost Accounting Cost Accounting Correction
o CA correction mostly used for Accruals and Deferrals
o Consider in the selected dimensiono Two kinds of accounts are included in this
part: Accounts set as “Posting Acct.” in
Accrual Object Setup Accounts set as “Interim Calculated
Acct.” in Accrual Object Setup
o Display sum(Credit– Debit) of the JE posting of “Posting Acct.” as “Revenue”, if account type is “Sales”
o Display sum(Debit – Credit) of the JE posting of “Posting Acct.” as “Expense”, if account type is “Expenditure”
o Display sum(Credit– Debit) of the JE posting of “Interim Calculated Acct.” as “Revenue”, if account type is “Sales”
o Display sum(Debit – Credit) of the JE posting of “Interim Calculated Acct.” as “Expense”, if account type is “Expenditure”
Detailed analysis of the Cost Accounting Reconciliation Report (3/4)
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Detailed analysis of the Cost Accounting Reconciliation Report (4/4)
Cost Accounting Cost Accounting P/L
o Consider in the selected dimensiono JE postings with DR assignment are included in
this parto Two kinds of accounts are included in this part:
Accounts set as “Calculated Acct.” in Accrual Object Setup
Accounts that have no relationship with Accrual objects
o Display sum(Credit– Debit) of the JE posting of “Calculated Acct.” as “Revenue”, if account type is “Sales”
o Display sum(Debit – Credit) of the JE posting of “Calculated Acct.” as “Expense”, if account type is “Expenditure”
o Display sum(Credit– Debit) of the JE posting of other accounts (not related to Accrual objects) as “Revenue”, if account type is “Sales”
o Display sum(Debit – Credit) of the JE posting of other accounts (not related to Accrual objects) as “Expense”, if account type is “Expenditure”
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Upgrading from prior versions
Where a customer using the cost accounting functionality prior to the 8.81 version wants to upgrade, the following issues need to be considered:
1.You can upgrade and decide not to use Dimensions -> in this case you carry on working as normal
2.You can upgrade and start using Dimensions:a- you first need to switch on this functionality in Administration – System Initialization
– General Settings – Cost Accounting tabb- you have to define dimensions (up to 5)c- the first Dimension in the list is automatically applied to the existing cost centers
d- this assignment cannot be changed if the cost center has been used in any transactions
NOTE: Customers use the cost accounting functionality in various ways. Depending on the usage, you must carefully analyze the requirements and decide on how best to use the new functionality.
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Demo
Demo
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Example Business ScenarioGeneral Description
For user to ensure that expenses and revenue are posted to the correct period, accrual objects are defined to reflect the difference between financial accounting and cost accounting.
Use case of difference existing between financial accounting and cost accounting: Use Case I: Get an invoice for 240USD for insurance midway through the year. This
reflects a full year’s insurance which needs to be reflected over 12 months of which some fall in the next financial year.
Note: For ease of explanation there are no tax implications in this example. User defines an accrual object for insurance and then records the cost accounting insurance expense amounts by using 2 additional GL accounts. The posting difference is displayed in the Cost Accounting Reconciliation Report.
SAP Business One 8.81 ► Expert Empowerment Session© SAP 2010 / Page 21
Thank you!
Dipan ShahRoll-Out Services, Small Business GTM SalesSAP (UK) Ltd
December 2010
SAP Business One 8.81Expert Empowerment Session
SAP Business One 8.81 ► Expert Empowerment Session© SAP 2010 / Page 22
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