OKKP - Activating Component/Control Indicators

The controlling areais an organizational unit in Accounting used to subdivide the business organization from a cost accounting standpoint.

Activating Component/Control Indicators

OKKP	IMG  -> Controlling -> Controlling General  -> Organization -> Maintain Controlling Area

Components are activated and defined within the controlling area through a fiscal year assignment.

1	Fiscal Year The fiscal year when the activation settings become valid. Realize that the To field will automatically fill with the year 9999. If you decide that you need to adjust this ending field, the approach is to come back into this screen and using the change process, enter in the ending year in the From field. Once that occurs, the To field will again be filled in with 9999. So you will have created a sequential change in the parameters of your controlling area. This approach is similar to making the changes needed for a cost center or other costing objects.
2	Cost Centers (Activate Components section) Cost Center Accounting (CCA) will be inactive until this field parameter is changed. The possible entries from the drop-down list are as follows: 0  Component not active. 1  Component  active. 2  Component active for validations - CCA is not activated, but you can use cost centers as account assignment objects. The cost center is validated/checked  against the master data table. CO is not updated. Utilize this setting if you do not want CCA active today but may want to activate it with the same cost center master data at some point in the future. You can then subsequently post all the cost center data to the CO files. Cost centers must be created in full. 3  Component active for existence validations - CCA is not activated, but you can use cost centers as account assignment objects. The main difference is that  cost centers do not have to be completed in full.
3	AA: Activity Type If you check this box, the activity types will be available for posting against primary cost elements.
4	Order Management Internal Order Accounting will be unavailable until you change the initial entry in this field. Here are the other options for this field: Internal Order Accounting component is not active. Internal Order Accounting is fully activated. Internal Order Accounting is not activated, but you can use orders as account assignment objects. The order is then validated/checked against the master data, including whether the order has been released for postings. CO is not updated. Utilize this setting if you do not want internal orders active today but may want to activate them at some point in the future. You can then subsequently post all the internal order data to the CO files.  Internal Order Accounting is not activated, but you can use internal orders as account assignment objects. The system doesn’t check internal orders to see whether postings can occur; it only checks to see if they exist
5	ProfitAnalysis Use this field to define whether and how Profitability Analysis (CO-PA) is activated. SAP provides two types of CO-PA: account-based and costing-based. Of the two, costing-based is more flexible and therefore more popular. Originally, only costing-based CO-PA existed. However, many accountants thought that it is important to easily tie to the G/L, so SAP developed account-based CO-PA. Leave this field as the default for CO-PA will validate that CO-PA should not be activated. The options from the drop-down list are as follows: 0  Component is not active. 1  Component for only costing-based CO-PA is activated. 2  Component for only account-based CO-PA is activated. 3  Components for both account- and costing-based CO-PA is activated
6	Acty-Based Costing (ABC) With this field, you can choose whether activity based costing should be activated within your system. There are two other options for this field: Component Active for Parallel Calculations. ABC is activated with restrictions. Allocations are posted as statistical entries on the cost object. The real posting would go to another CO object, like a cost center. Component Active for Parallel and Integrated Calculations. ABC is activated without restrictions. All postings to ABC Accounting are posted as real postings to the appropriate ABC object. Other costing objects received the statistical postings.
7	Profit Center Accounting (PCA) Select this field if you want PCA to be activated
8	Projects If you are utilizing Project System, this setting becomes important. Project System integrates with CO through work breakdown structure (WBS) elements and networks. If you activate Projects in the controlling area, you can use WBS elements and networks as real account assignment objects and CO data is recorded. If this field is not activated, project data within CO is not updated. Note that even though you don’t select this parameter, master data for additional account assignments to a WBS element will be validated within the system.
9	Sales Orders If you are utilizing make-to-order production, this setting becomes important. If you are not, leave this blank. If it’s activated, all revenues and costs will post to the sales order item. Therefore the system will create a costing object for the sales order and CO will be able to track the revenue and costs assigned to the sales order number. Also, production orders, networks, and other objects settle to a sales order item. In this case the account assignment category plays a very important role.
10	Sales Orders (and W. Commit. Mgt) This controls whether commitments are updated to the sales orders.
11	Real Estate Mgmt This will define if Real Estate Mgmt is another cost object that can be posted to for actual data. This will allow postings such as financial accounting, cost center assessments, CO transfer postings, and other account assignments to a real estate object in CO.
12	All Currencies (Other Indicators section) This setting will often default from your controlling area definition. If it’s activated, the system will update CO values in the transaction currency and the object currency. If it’s inactive, only the controlling area currency is used to update CO values. Be very careful with this indicator. If you decide to deactivate it, you can’t reactivate it until the next fiscal year and in the current year all of the CO postings will not be available in multiple currencies. Also, if you do change this indicator, please check any additional information and requirements with SAP information.
13	Variances Activate this if you want SAP to calculate and post as a line item variances from each primary cost posting. Variances occur when the actual costs are less than or greater than planned costs. Actual and planned cost variances result when the actual price of the resource is less than or greater than the planned price
14	CoCd Validation This setting will automatically activate if cross-company-code cost accounting is activated in the controlling area definition. If active, the setting will ensure that both sides of an accounting or purchasing transaction generate from a cost center in the same company code. And, using the same criteria, it ensures that all inventory activities are posted properly in both company codes. There are additional settings on this screen, and we will discuss these a bit later in the chapter. For now, these are the settings that are critical for the completion of the configuration of the controlling area.

When you’re finished configuring the control indicators, save your settings. You will notice that SAP has filled 9999 in the “To” field of the fiscal year range. The settings are valid until year 9999 or until you make an entry for a new fiscal year. If you want to make a change to any of the settings for the next fiscal year, create a new entry in the Control Indicators table. By entering a new fiscal year in the table, you ensure that the validity date for the prior entry becomes the last fiscal year before the new entry.