Assigning Internal Order to Purchase Requisition without Account Assignment Order

How to assign an internal order to purchase requisition?

I just learned today that there were 2 solutions for this :

1. Assigning the IO directly to PR using account assignment F (order)
2. Assigning the Asset to PR, if the IO already assigned to the Asset beforehand, IO number shall appear automatically.

However i learned that to make option 2 applicable, a statistical cost element needed to be assigned to asset gl account. Why statistical? Because Asset GL Account is a Balance Sheet account, thus actually not to be assigned to a cost element. Note the basic thing in CO module that a cost element is needed for P/L account and not B/S account.

I look over this problems for 3 days already and cannot resolve it. A friend of mine solved it in less than 6 hours :D Lol. I need to study more :) Go Choco Go!

Tcodes to be use to solve this (with the assumption that all customizing has already done for FI, CO and MM) :

FS00 - Edit GL account, check wether the GL account already assigned to a cost element or not

KA01 - Create Primary Cost Element, noted that cost element category should be a statistical one. If there's none, create a new cost element category first.

K001 - Create Internal Order, if the internal order is only for budgeting purpose thus no need to be settled, choose the Statistical option when creating the IO on tab Control Data. If Commitment Updated was chosen, the IO can still be settled and may lead to a double posting on the asset and cost.

KO22 - Change budget. Use this tcode to maintain the budget in the IO.

ME21 or ME21N - Creating PR.

Assessment Allocation in Cost Center

Allocation is a way to divide cost occured in a cost center or a group of cost centers to another cost centers based on an estimation. The estimated value can come from production units such as labor or machine hours. To divide an overhead cost , the estimated value can come from the smallest measurement such as KiloWatt for electricity or M3 for water.

There are 3 ways of allocations in cost center :

1. Direct or manual allocation
2. Distribution
3. Assessment

This time we will focus only on assessment. Assessment allocation can be use to allocate values from one cost element without changing the posted original value it self. It is possible to do so by using secondary cost element instead of primary ones.

For example :

You want to allocate expense which occurs on the cost element Salary Expenses, without changing the original value posted in the cost element. To do so, you will have to create a secondary cost element, say Allocated Salary Expenses.

The posting will be as shown below :

Dr. Allocated Salary Expenses (Cost Center Receiver)

Cr. Allocated Salary Expenses (Cost Center Sender)

While the amount in Salary Expenses remains the same.

List of tcodes to be used :

• KSU1 - Create Cycle
• KSU2 - Change Cycle
• KSU3 - Display Cycle
• KSU5 - Run Cycle

In creating a cycle of allocation, we need to define :

• Secondary Cost Element
• Primary Cost Element as the source of value to be allocated. Note that allocation can be done from one or more cost element. We can combine some cost elements based on the characteristic and summarized it with one secondary cost element.
• Sender Cost Centers
• Receiver Cost Centers
• Value to be allocated by sender. It can be maintained at the sender rule. There are 3 options available : Posted amount, Fixed Amount, Fixed Rates.
• Value to be received by receiver. It can be maintained at the receiver rule. There are 3 options available : Variable Portions, Fixed Percentage, Fixed Amount and Fixed Portions. If we choose Variable Portions, we need also to define the variable. There are several options,

SAP

What's SAP? I should say that this is a worldwide ERP system which is widely used by most of the industries these days. Most of them are big industries, name it Coca Cola, Sony, Nike or even L'oreal runs SAP.

Currently i'm learning SAP focusing on SAP R/3. I'm just a newbie indeed, and a fast forgetting stuff also :D That is why i'm going to write all about things i learned here and sharing it with everyone. Hopefully it will help me and of course , you who read ;)