assignment means in sap

Blog about all things SAP

ERProof » SAP CO » SAP CO Training » SAP CO Account Assignment

SAP CO Account Assignment

Normally, when a financial document is entered in SAP FI module , user has the option of entering the cost center in the financial document. However, when documents are entered from different modules or a cross-module financial transaction occurs, such as from MM or SD , there is no option of entering the cost center in the document. In this situation, the SAP system will derive the cost center through automatic SAP CO account assignment, substitutions, or through default settings made in the primary cost element.

Automatic SAP CO Account Assignment

The automatic account assignment has to be configured in the transaction code OKB9 . For posting made in external accounting, such as for price differences, exchange rate differences, etc., the SAP system automatically checks entries in the OKB9 settings and derives the cost center.

If you do not enter a CO object (order, cost center, or project) in external accounting postings made in FI, MM or SD modules and the posting is cost relevant, then the automatic account assignment checks the relevant cost center and makes the posting.

Here are examples of automatic account assignments:

• Banking fees, exchange rate differences and discounts in FI
• Minor differences and price differences in MM

The account assignment objects that can be maintained in the transaction OKB9 are:

• Cost center
• Profit center (profitability segment)

Normally, the automatic account assignment runs on the company code level along with the CO object. However, if the user wants to make the posting on the business area level, valuation area level or profit center level, it is also available in OKB9 settings. So basically it includes the following levels:

• Company code level
• Business area level
• Valuation area level
• Profit center level

The above 3 excluding the company code level are used in cases when the account assignment is needed below the company code level.

Prerequisites

Here are the prerequisites of activating automatic SAP CO account assignment:

• Activation of the cost center accounting
• Creation of cost centers
• Maintenance of cost elements

Additionally, you can also create orders and profit centers as per the business requirements.

Settings in Transaction OKB9

Let’s discuss settings that are possible for automatic SAP CO account assignment in OKB9 transaction.

Start SPRO transaction and navigate to the following path:

Controlling – Cost Center Accounting – Actual Postings – Manual Actual Postings – Edit Automatic Account Assignment (OKB9)

Alternatively, you can start OKB9 transaction directly from the command bar.

• If you want to have the setting on the company code level only, then enter the company code and the cost element along with the corresponding CO object, i.e. a cost center, an order or a profit center.
• If you want to have the settings on the valuation area level, then enter the company code and the cost element and chose the ‘valuation area’ option in the account assignment detail as ‘1’.
• Similarly, if you want to have the settings on the business area or profit center level, then choose the option ‘2’ or ‘3’ respectively.

If you have chosen account assignment detail ‘1’ or ‘2’, then click on ‘Detail per business area/valuation area’ on the left sidebar.

Default SAP CO Account Assignment

In order to determine the correct CO account assignment, the SAP system performs several checks in the following sequence. First it checks the document which a user is posting. If the cost center is empty in the document, then the system checks if any substitutions are maintained for the particular G/L account . Next, if the substitution is also missing, then the system moves on to the OKB9 settings for automatic SAP CO account assignments. Finally, if these settings are also missing, the SAP system checks master data of the primary cost element (G/L Account) under the tab of Default Account Assignment . You can display this master data using the transaction KA03 .

You can maintain the cost center and the order in the master data of the primary cost element.

So, basically the order of checks the system makes is:

• Financial document – Cost center
• Substitutions – transaction OKC9
• Automatic account assignments – transaction OKB9
• Default account assignments – transaction KA03 / KA02

Lastly, if any of the above is not maintained, then the SAP system throws an error ‘Account X requires an assignment to a CO Object’ and doesn’t allow posting of a document.

SAP CO Account Assignment using Substitution

In cases where you don’t need OKB9 or default account assignment, the user can go for user exits where a specific G/L account is mentioned under the company and the value in the cost center is substituted by the cost center given in the substitution.

The transaction for maintaining the substitution is GGB1 .

Usage of substitutions for SAP CO account assignment is justified by the business requirement and usually SAP CO account assignment requirements are fulfilled by OKB9 or default account assignments.

Did you like this tutorial? Have any questions or comments? We would love to hear your feedback in the comments section below. It’d be a big help for us, and hopefully it’s something we can address for you in improvement of our free SAP CO tutorials.

Navigation Links

Go to next lesson:  SAP Adjustment Postings

Go to previous lesson:  SAP Profit Center

Go to overview of the course: Free SAP CO Training

4 thoughts on “SAP CO Account Assignment”

it is helpful material i ask for more clear details for using substitution method for Account Assignment. thanks in advance

Sir, I am not receiving the training mails from yesterday 7/1/2019. I have completed my training till here(SAP CO Account Assignment) please do send the rest of the training emails for SAP CO. Hope you will do the needful.

I am getting the same error “Account 500911 requires an assignment to a CO object”. In OKB9, we have given company code, Cost element and ticked the check box ‘Indicator: Find profitability segment using substitution’ (V_TKA3A-BSSUBST) and not filled anything like cost center, order and profit center. in OKC9 we have created substitution. All the process happening through Idoc Message Type SINGLESETTRQS_CREATE and inside BAPI BAPI_SINGLESETTREQS_CREATEMULT triggering and raising this error. Cost center is not maintained in 1. Financial document – Cost center 2. Automatic account assignments – transaction OKB9 and 3. Default account assignments – transaction KA03/KA02 But we have substitution in transaction OKC9 to determine cost centre.

Where woulbe be the issue?

good explanation

Leave a Reply Cancel reply

Do you have a question and want it to be answered ASAP? Post it on our FORUM here --> SAP FORUM !

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Defining Default Account Assignments

After completing this lesson, you will be able to:

• Introduce posting controls
• Describe the account assignment settings
• Create a default account assignment
• Analyze the impact of the assignment during journal entry

Posting Controls

Meet Chris, an experienced management accounting employee at Bike Company SE. He's skilled at using SAP S/4HANA, having extensive knowledge of his department's processes and a comprehensive understanding of the company's operations. Apart from maintaining crucial applications that streamline work for others, Chris also acts as an administrator and business process configuration expert. He is the contact person for establishing and managing Overhead Cost Accounting processes within the company.

Chris loves discovering and utilizing new features and helping other users. Recently, Sarah, a colleague from the financial accounting department, sought his expertise for support and assistance. This is what they talked about:

Let’s now take a closer look at the tools that help streamline accounting data.

You'll learn how to define default values for cost assignment. In the next lessons, you will also delve into more sophisticated features like validation and substitution rules that can identify inconsistencies in account assignment objects and ensure precise postings.

We'll start with an in-depth exploration of the default account assignment.

Default Account Assignment

Application area.

The default account assignment is a tool that automatically proposes specific cost assignment objects, such as cost centers or profit centers during journal entry. You can determine which management accounting object is defaulted for each line item based on the combination of primary cost and revenue G/L account and company code.

As an example, consider recurring utility expenses, which should be charged to the Utilities cost center. For this purpose, a default account assignment can be established as shown in the figure below.

First, the cost element for Utilities for the relevant Company Code is connected to the respective cost center in the default account assignment configuration.

Now whenever you enter a utility expense in Financial Accounting, the system automatically proposes the Utilities cost center. You still have the option to manually overwrite the cost center if necessary.

This leads to a more efficient accounting workflow, as the account assignment object is entered automatically during the posting process, minimizing the need for manual input.

Default account assignments are especially useful when line items are automatically posted, such as when posting exchange rate differences and discounts in Financial Accounting, or price differences in Material Management.

In addition to cost centers, you can also indicate profit centers or profitability segments for allocating costs and revenues to.

In summary, the default account assignment establishes a default value for the controlling objects when posting costs or revenues, ensuring that these are automatically charged to the right entities.

Configuration

To configure a default account assignment, you perform the following steps:

• For each cost assignment, enter the company code and the cost element that should be included in the account assignment.
• Enter the corresponding account assignment object (cost center or profit center). If you want the system to determine a profitability segment instead, you can use the PrfSeg checkbox. This is used when transferring data, such as price differences, to Margin Analysis.
• You have the option to specify detailed account assignments, which can be differentiated by valuation area or profit center. To do this, enter the following values in the "Acct assignmt detail" column: 1 for valuation area or 3 for profit center. Then select the corresponding entry in the Dialog structure on the left and enter the relevant cost assignment.

Define a Default Account Assignment

Overall benefits.

The default account assignment feature suggests default values for specific accounts, improving the accuracy of financial data and streamlining the process through automatic assignment. This reduces the likelihood of errors in manual data entry and saves a considerable amount of time that would otherwise be spent repeatedly assigning these costs.

Log in to track your progress & complete quizzes

• What is SAP FICO?
• SAP FICO Training Tutorials for Beginners
• SAP FICO Define Account Group
• SAP FICO Reverse Clearing Document
• Foreign Currency Valuation Configuration
• SAP FICO User Exit for Vendor Master
• FICO Vendor Account Group Table
• SAP FICO Withholding Tax
• SAP FICO Dunning Area
• SAP FICO Cash Management Group
• Assessment Cycle vs Profit Center
• SAP FICO Asset Accounting
• SAP FICO Posting Key for Bank
• SAP FICO Document Type
• SAP FICO Document Number Ranges
• SAP FICO Parked Workflow Configuration
• SAP FICO Classic GL vs New GL
• SAP FICO GL Account for Cash Journal
• SAP FICO Accounts Receivable Process Cycle
• SAP FICO Accounts Receivable Configuration
• GR/IR Accounting Entries and Journal Entries
• SAP FICO Chart of Accounts
• SAP FICO Transaction Codes
• SAP AS11 Create Asset Sub-Number
• SAP Business Area and Profit Center
• SAP Inconsistent Withholding Tax Info
• SAP Active vs Passive Document Splitting
• Reverse MIRO Document in SAP
• SAP FICO Scope and Opportunity
• FICO Certification Cost in India
• SAP FICO Interview Questions
• SAP FICO Tree Menu

What is Account assignment in SAP FICO ?

Updated Apr 01, 2023

Account assignment is a critical aspect of financial accounting and management in any organization. It refers to the process of allocating financial transactions to specific cost or profit centers, projects, or business processes. By properly assigning financial transactions to the appropriate account, organizations can accurately track their expenses, revenues, and profitability. This information can then be used to make informed decisions about resource allocation, cost control, and overall financial management. 

In SAP FICO, account assignment is a core module that offers various types of account assignment options, including cost center accounting, profit-center accounting, internal order accounting, and WBS element accounting. These options provide organizations with greater visibility into their financial performance, enabling them to optimize their operations and drive greater value for their stakeholders.

Types of  Account Assignment 

There are several types of account assignments in SAP FICO, including:

• Cost center accounting 
• Profit center accounting
• Internal order accounting
• WBS element accounting

i) Cost center accounting 

Cost center accounting is the process of tracking and analyzing costs associated with each department, function, or unit of an organization. SAP FICO provides a module that allows organizations to create and manage cost centers, allocate expenses, and generate reports to track performance.

By tracking expenses at a granular level, organizations can make informed decisions about resource allocation, identify areas of inefficiency, and make changes to improve overall performance, reducing costs and increasing efficiency.

ii) Profit center accounting

Profit center accounting is a process that allows organizations to track revenues and expenses at a granular level, providing insights into the profitability of individual business units, product lines, or geographic regions. By allocating revenues and expenses to specific profit centers, organizations can generate reports that help identify areas of high profitability or inefficiency.

SAP FICO provides a comprehensive profit center accounting module that enables organizations to create and manage profit centers, allocate revenues and expenses, and generate reports to analyze profitability. This information can be used to make informed decisions about product lines, investments, and resource allocation, enabling organizations to optimize their profitability and drive growth.

iii) Internal order accounting 

Internal order accounting is a process that allows organizations to track and control expenses associated with a specific project, event, or business process. By assigning costs to a specific internal order, organizations can monitor actual expenses versus budgeted expenses, and ensure that resources are allocated efficiently.

iv) WBS element accounting

WBS (Work Breakdown Structure) element accounting is a process that allows organizations to track and control expenses associated with a specific project or work breakdown structure. It involves breaking down large projects into smaller, manageable tasks or work packages, each of which is assigned a WBS element.

Expenses are then allocated to each WBS element to track actual versus planned expenses and ensure that resources are allocated efficiently.

Advantages of  Account Assignment 

The advantages of account assignment in SAP FICO include:

Better visibility: Account assignment allows organizations to track expenses and revenues at a granular level, providing better visibility into financial performance.

Resource allocation: By tracking expenses and revenues, organizations can make informed decisions about resource allocation, ensuring that resources are allocated efficiently.

Cost control: By identifying areas of inefficiency or waste, organizations can make changes to control costs and improve profitability.

Accurate reporting: Account assignment provides accurate reporting and analytics, enabling organizations to make informed decisions about their financial performance.

Compliance: Account assignment helps organizations comply with regulatory requirements and accounting standards.

How to Define Account Assignment?

Please follow the steps below to define the account assignment:

Execute t-code OKB9 in the SAP command field as shown in the image below.

On Change View "Default account assignment": Overview you will see the list of default account assignments.

Next, click the  New Entries button to create a new account assignment.

In the next window, enter the following fields:

• Cost Ctr 

Now click on the Save button to save the new account assignment.

Now in order to post a test document to check that the account assignment works, execute t-code FB50 in the SAP command field.

On the next popup enter Company Code as shown below.

Now on the next window, click Tree On button.

Next, select the Screen Variant in the next window and click Tree Off button.

In the next window, enter the following fields according to your requirements:

To make the document assignment, click the Post button.

The account assignment is now defined and can be used for tracking expenses and revenues at a granular level in SAP FICO.

• 04 Dec 2013 7:51 am rekha Account assignment is used in Sap Fico if you frequently use the same broad account assignments, such as a distribution of amounts to several company codes, accounts, or cost centers, you can use the account assignment model method to save input time and avoid input errors. The use of account assignment models is limited to G/L account items. T-code OK17 is used in the account assignment. If you have CO-FI real-time integration active you need this account assignment.

SAPHANATUTOR.COM

SAP ECC | SAP S/4 Hana Tutorials

Understanding a Plant in SAP: Definition, Role, and Setup Guide

What is a plant in sap.

A plant in SAP is typically a manufacturing facility, a warehouse, or a distribution center. It plays a crucial role in various SAP modules like Material Management (MM), Sales and Distribution ( SD ), Production Planning (PP), and Plant Maintenance (PM).  A plant is uniquely linked to a single company code only, although a company code can have multiple plants. This setup forms the backbone of the company’s operational structure, ensuring efficient management and organization.

Table of Contents

Organizational Structure of a Plant?

Each plant is intricately connected to a business area and a division within the company. It’s common for a plant to be associated with various sales organizations and distribution channels , reflecting its versatile role in the company’s operations. Moreover, a plant often houses multiple shipping points, each capable of serving several plants, thereby enhancing the logistical efficiency of the company.

Key Attributes of a Plant

• A plant in SAP is distinguished by its unique address, language preference, and country association.
• One of its critical functions is maintaining its own material master data, which is vital for a range of activities including Material Requirements Planning (MRP), Purchasing, Storage, Work Scheduling, Production Resources/Tools, Forecasting, Quality Management, Sales, and Costing.

Significant Roles of a Plant

• Material Valuation : In SAP, material stocks within a plant are valued at the plant level if the valuation level is set accordingly. This allows for the definition of plant-specific material prices and account determination.
• Inventory Management : Effective management of material stocks is a key function of a plant, ensuring operational efficiency and resource optimization.
• MRP (Material Requirements Planning) : Each plant conducts its own MRP, tailoring material requirements planning to its specific needs. This capability also extends to cross-plant analyses for materials planning.
• Production and Costing : Within a plant, valuation prices for costing purposes are set, reflecting the plant’s role in the company’s financial framework.
• Plant Maintenance : Plants designated as maintenance planning units play a crucial role in planning and executing maintenance tasks, sometimes even for other plants.

Creating a plant in SAP enterprise structure

Creating a plant within the enterprise structure in SAP is a fundamental step in setting up your organization’s logistics framework. A plant in SAP is typically a manufacturing facility, a warehouse, or a distribution center. It plays a crucial role in various SAP modules like Material Management (MM), Sales and Distribution (SD), Production Planning (PP), and Plant Maintenance (PM). Here’s a step-by-step guide to defining and assigning a plant in SAP:

Step 1: Access the SAP Menu

• Login to SAP: Use your credentials to log in to the SAP system.
• Navigate to SPRO: Go to the SAP Easy Access menu, and click on `SPRO` (SAP Project Reference Object) to access the SAP Reference IMG (Implementation Guide).

Step 2: Define a Plant –  OX10

A plant can be created using the transaction code OX10

  and also created using the SPRO IMG Path:

In the SAP Reference IMG, follow the path: Enterprise Structure → Definition → Logistics-General → Define, copy, delete, check plant.

• Define Plant: Click on `Define Plant`. This will open a list of existing plants.

•  New Entries: Select `New Entries` to create a new plant.

Enter Details: Fill in the required fields:

• Plant: Assign a unique code to identify the plant.
• Name: Provide the name of the plant.
• Location: Enter the location details like city, country, etc.
• Language: Choose the default language for the plant.
• Address: Fill in the address details.

Save: After entering all details, click `Save`. Assign your changes to a Customizing Request.

Step 3: Assigning Plant to a Company Code in SAP

To assign a plant to a company code in SAP enterprise structure, follow the SPRO IMG Path for Assignment.

In the SAP Reference IMG, navigate to: Enterprise Structure → Assignment → Logistics-General → Assign plant to company code.

Click on new entries to add your Company code to the plant. Here our company code is ZSAH and Plant is ZS.

• Assign Plant: Here, you will see a list of plants. Find your newly created plant.
• Company Code: Assign your plant to an existing company code. This links your plant to the company code, which is essential for financial transactions.
• Save: Save your changes and assign them to a Customizing Request.

Save all the settings.

Once these steps are completed, your plant is successfully defined and integrated into your SAP enterprise structure. This setup is crucial for material management, production planning, and other logistics-related processes in SAP. Remember, the plant is a central element in the SAP logistics chain, and its proper configuration is key to efficient operations.

Related posts:

• Assigning Shipping point to Plant – Saphanatutor.com
• Business Partner in SAP
• Understanding Shipping Point in SAP: A Comprehensive Guide
• How to Create Your Company Codes in SAP Like a Pro
• Enterprise Structure in SAP: A Comprehensive Guide