account assignment objects are defined for different business areas

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• Message Class KI

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The account assignment objects are defined for different business areas

Message type: E = Error

Message class: KI -

Message number: 196

Message text: The account assignment objects are defined for different business areas

What causes this issue?

You entered several account assignment objects assigned to different business areas. In a posting row all account assignment objects must be assigned to the same business area.

How to fix this error?

Error message extract from SAP system. Copyright SAP SE.

Related Error Messages

KI195 The number range for CO must be enlarged

KI194 Increase the number range for CO

KI197 Acct assignment objects are different in CO and FI

KI198 You cannot change documents in CO for acct assignment objects of type &

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3130898 - KI 305 - Please assign account assignment object XXX to a profit center message raised in Settlement Management in SAP S/4HANA Cloud

During the creation of a settlement document -which is relevant for Accounting- or releasing it to Accounting, the error message KI 305 -Please assign account assignment object XXX to a profit center- occurs.

***Please consider that this document is only relevant for SAP S/4HANA Cloud! ***

Environment

Settlement Management in SAP S/4HANA Cloud

  Relevant Scope items:

Sales Rebate Processing (1B6)

Purchasing Rebate Processing (2R7)

Sales Commissions - External Sales Representative (2TT)

Royalties Settlement for Sales (55I)

In SAP S/4HANA Cloud environment an account assignment object is a mandatory for the Accounting, such information can be determined based on several cost element information (one can be e.g. profit center or cost center). In case no account assignment object is determined in Accounting, the KI 305 error will be correctly raised during the settlement or the release of the document. In Settlement Management the most common reason is that there is no profit center which could be used to determine a mandatory account assignment object.   T he profit center is determined based on the business volume documents with the help of the split criteria.

Regardless which process is used, by default the program tries to take over the profit center from the relevant business volume documents, only in case these contain a profit center, it can be passed to the Accounting.

The profit center is a split criterion on item level, this means that in case one such line exists, where no profit center information is attended the relevant settlement document as whole will reflect the KI 305 error.

Here you can find some suggestions, how you can verify which business volume documents are effected:

• You can check the relevant business volume in the  Display Business Volume - Condition Contracts App  
• In this App you can dynamically check the relevant business volume for the effected condition contract and settlement date. 
• You can use the "Output Level Business Volume" option to select the results in different variations. You can for example use the "Settlement Date and Split Criteria" option to see general how the splits will happen for the relevant settlement date and settlement date type.
• In case you are interested which exact business volume document is effected, you can select the "Single Record" option and check each document in detail.

Please consider that the Display Business Volume - Condition Contracts App  is dynamically using the data which is available in the system at the time of the execution. In case you have an already existing document, which was not released to Accounting, but in the meantime further business volume documents were created, those of course were not relevant at the time of the document creation yet and will be considered by the next date.

From Settlement Management side the profit center information can only be passed from the business volume document, however there are other options to avoid this error.

You can refer to the below respective KBA/Notes, which describes the possibilities what can be done in case such documents were already created, where no profit center is attended:

3009065 - Please assign account assignment object &1 &2 to a profit center.

2985253 - S/4HANA Cloud: Message KI 305 prevents posting of journal entries

In case you would like to investigate or prevent in the future such documents to be created, depending on your process(es) you may consider discussing it with your Sales or Procurement consultant, how in each case the profit center determination happens in the corresponding area. Also please consider that changing any existing documents or master data, should be carefully discussed and performed, because it can lead to reporting and data inconsistencies or mismatch.

Any changes will only have an effect on new documents, however the old documents can be still used as business volume documents.

Best Practice Explorer

Settlement Management Help Portal for SAP S/4HANA Cloud

KI 305, Profit Center, 1B6, 2TT, 2R7, 55I, Condition Contract Settlement , KBA , LO-GT-CCS , Condition Contract Settlement , LO-AB , Settlement Management , LO-GT-CHB , Condition Contract Maintenance , How To

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• SAP Error Message ›
• Message Class KI ›

KI196 - The account assignment objects are defined for different business areas

Sap error message - details.

Message type: E = Error

Message class: KI -

Message number: 196

Message text: The account assignment objects are defined for different business areas

• Show details Hide details

What causes this issue?

How to fix this error.

Error message extract from SAP system. Copyright SAP SE.

• What is the cause and solution for SAP error message KI196 - The account assignment objects are defined for different business areas ? Get Answer
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Related sap error messages.

KI195 The number range for CO must be enlarged What causes this issue? The number range for documents for posting to CO has be...

KI194 Increase the number range for CO What causes this issue? The number range for document numbers for posting to CO...

KI197 Acct assignment objects are different in CO and FI What causes this issue? Account assignment object &V1& is specified wit...

KI198 You cannot change documents in CO for acct assignment objects of type & What causes this issue? FI document &V3& in company code &V2& u...

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An error message will prevent you from continuing your work - it is a hard stop and you need to fix the error before you can proceed. A warning message will stop your work, however, you can then bypass the warning by pressing the Enter key on your keyboard. That said, it is still good practice to investigate the cause of the warning message and address it. An information message will not stop your work and is truly just for informational purposes.

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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.

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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

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Explaining Management Accounting (CO)

After completing this lesson, you will be able to:

• Explain Management Accounting (CO)

Management Accounting Components

CO contains all of the functions necessary for controlling cost and revenue effectively. It covers all aspects of management controlling and includes many tools for compiling information for company management.

CO consists of several components, as shown in the figure, Components of Management Accounting .

Data that the system creates in other SAP S/4HANA applications can have a direct influence on CO. For example, if you purchase a non-stock item, the system posts an expense to the general ledger (G/L). The system also posts this expense as costs to the cost center for which the item was purchased. This cost center can then pass these costs as overhead to a production cost center.

FI, in the SAP S/4HANA application, is a primary source of data for CO. In fact, most expense postings in the G/L result in a cost posting in CO. These expense postings to the G/L can be journal postings, vendor invoices, or depreciation postings from Asset Management.

Management Accounting provides information that management can use to make decisions. It facilitates the coordination, supervision and optimization of all processes within a company. This involves recording both the consumption of production factors and the services provided by an organization.

In SAP S/4HANA, all relevant cost information from Financial Accounting and Management Accounting is available in real-time on line item level in the central table ACDOCA. Costs and revenues are assigned to different CO account assignment objects such as cost centers, projects, or orders. These Financial Accounting accounts are managed in Management Accounting as cost or revenue elements.

Product Cost Controlling calculates the costs incurred when a service is provided or a product is manufactured. It enables you to calculate the minimum price at which a product can be profitably marketed. The manufacturing area of Logistics also works closely with CO. Bills of material (BOMs) and routings can be used in CO-PC.

Profitability Analysis analyzes the profit or loss of an organization according to individual market segments. In Profitability Analysis, costs are assigned to the revenues of each market segment. This gives you a basis for calculating prices, targeting customers, determining conditions, and choosing sales channels, for example. Sales order management is a primary source for revenue postings from billing documents to revenue postings in CO-PA and PCA. In addition to direct postings from FI, Profitability Analysis (CO-PA) can receive cost assessments from cost centers and ABC processes, settlements of costs from internal orders, and settlements of production variances from cost objects.

Within the Overhead Cost Controlling (CO-OM) area, you can post costs to cost centers, internal orders, and processes from other SAP S/4HANA applications (external costs). Cost centers can then allocate these costs to other cost centers, internal orders, and processes in Activity-Based Costing (ABC). ABC, in turn, can pass costs to cost centers and internal orders. Internal orders can settle costs to cost centers, processes in ABC, and other internal orders.

You use Cost Center Accounting for controlling purposes in your organization. Cost center accounting takes the costs incurred in a company and allocates them to the actual subareas that caused them.

Cost centers are separate areas within a controlling area at which costs are incurred. You can create cost centers according to various criteria including functional considerations, allocation criteria, activities provided, or according to their physical location and/or management area.

An activity type defines the type of activity that can be provided by a cost center. Activity outputs supplied by one cost center (the sending cost center) to other cost centers, orders, or processes, represent the utilization of resources for this sending cost center. You valuate activities using a price calculated on the basis of certain business or management information.

Internal orders are used to plan, collect, and analyze the costs arising from internal activities.

SAP Human Capital Management (HCM) can generate cost postings in CO. SAP HCM allows you to allocate labor costs to various controlling objects. In addition, you can transfer and use planned personnel costs for planning in CO.

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Business Area in SAP – A Detailed Overview & Set of Questions

Published by pradeep on october 22, 2022 october 22, 2022, business area in sap.

The Business Area in SAP is the highest organizational cost structure unit. You can specify it either as per Functional lines, Product lines or as per responsibilities assigned region-wise.

Below are some quick questions that may help you understand this term better. you can also read them to prepare for your SAP FICO job interviews .

A Business Area in SAP corresponds to specific business segments of a company and may cut across different Company Codes (Product Lines). They can further represent various responsibility areas, such as Branch Units, plant engineering, automotive, etc. Also, its configuration is optional (not mandatory).

‘0001- Plant engineering

‘0002- Automotive

Use of Business Area in SAP

Business areas we primarily use to facilitate external segment reporting across company codes , covering the company’s main areas of operation (product lines, subsidiaries).

Assign Balance Sheet Items

You can assign all balance sheet items, such as fixed assets, receivables , payables, material stock, and the entire P/L statement directly to business areas. You should assign banks’ capital and taxes only manually (indirectly) to business areas, not directly for this reason. Although, it is impossible to create legally-required financial statements, tax, and tax reports at the business areas level. Balance sheets and P/L statements at the business area level only are suitable for use in internal reporting.

Create a Balance sheet and P & L

To be able to create a balance sheet and P/L statement, we need to update the data for each business area in the transaction figures in the general ledger. Therefore, we have two different procedures to do this.

Procedure 1

When posting the original document, the system supplies the business area with the proper information.

You create a customer invoice. The system can allocate the sales revenue to exactly one business area. The receivables inherit this business area.

When we make an adjustment posting in the general ledger in a second step, the system changes the business area used in the original posting to the correct value. Particularly when we didn’t enter the initial value. This may sometimes distribute the posting to several business areas.

Procedure 2

You create a customer invoice. The system must allocate the sales revenue to several business areas. We post the receivables without a business area and make a transfer posting for the receivable in a second step.

After splitting

Business area in sap general ledger accounting, automatic/manual assignment.

You cannot directly assign G/L account master data to a business area. You must enter the business area either manually or derive from that entered in the CO account assignment object.

Though we have certain business transactions for which automatic procedures exist. These analyze documents/ transaction figures in the system and use them to create new documents (Foreign Currency valuation). Subsequently, they assign the line items generated to the business areas entered in the documents/transaction figures that were read.

Business Area in SAP Asset Accounting

This section describes the role played by the “business area” organizational unit within Asset Accounting .

Automatic/Manual Account Assignment

The system allocates Assets to a single business area in its master record. Further, it automatically posts every posting to an asset balances sheet account in that business area. Consequently, the business area for an asset is passed on to all line items connected with the asset. Therefore, you do not need to make a manual assignment to a business area at any point.

Asset Dr -UN1- 5000

Vendor Cr- UN1-5000

Depreciation

The asset balance is reduced by the depreciation amount in the value adjustment (accumulated depreciation) account with the business area of the asset. Also, the expense line items receive the business area of that asset.

Asset Retirement (Scrapping)

Here the system clears the asset amount and any existing depreciation with the business area of the asset. It assigns the asset’s business area to the expenses line item.

Business Area in Accounts Receivable and Accounts Payable

This segment describes the role played by the “Business area “organizational unit within the Accounts Payable and Accounts Receivable systems.

You cannot allocate customer or vendor master records to a business area. Thus, you usually determine the business area from the business area allocated to the related G/L account posting and do not need to enter it manually.

The business area for G/L account items has to be either manually entered or derived from the SAP CO allocation object that you enter.

How Business Area in SAP works for an invoice?

In an invoice, the customer/vendor item takes the business area of the expenses or revenue postings. If the business area has been entered in the document, it is copied into the line item automatically.

However, if there is more than one business area in the document, the customer/vendor items remain unallocated. Also, a transfer posting is made at a later date to the receivables or payable account.

Furthermore, the system checks that any business area entered in the customer/vendor item is the same as that in the offsetting G/L account item and issues an error message if this is not the case.

In customizing, you can set the status of this message or even suppress it from display entirely.

Noteworthy, the taxes are always posted without a business area. Subsequently, at a later date, the system makes a transfer posting from the tax account to the business areas allocated to the revenue or expenses account.

Business Area in SAP for Payment

For customer/vendor items in payment documents, the procedure is the same as it is for the items in the invoice that they clear. Therefore, these items take the business area from the invoice.

Cash discount and exchange rate difference postings take their business area from the customer/vendor item they originated from. If this item was posted without a business area and then later has one specified via a transfer posting in the general ledger. You must make this allocation yourself retroactively for both the cash discount and exchange rate difference posting.

Bank items are currently posted without a business area (unless one is entered manually). There is also no standard function that allocates the bank items to the business area of the cleared customer/vendor items.

Business Area for Down payment

The system cannot automatically derive the business area of the underlying item with down payments since the invoice that belongs to the down payment is not entered until later.

The business area in the customer/vendor item from the invoice is therefore not entered automatically and has to be entered manually.

The bank item is currently posted without a business area. There is no standard function that allocates the bank item to the business areas of the customer/vendor items.

Business Area in SAP Cost Accounting

Automatic/ manual account assignment.

Account assignment objects in Cost Accounting are allocated to a single business area in the master record. When you post to an account assignment object in Cost Accounting, the system automatically determines the business area. You do not have to assign the posting to the business area manually.

Assessment, Distribution, Activity Allocation

Costs that have initially been allocated to an allocation object in Cost Accounting (default cost center) and therefore also to a default business area are later broken down by certain distribution keys to final recipients (such as cost centers). The allocation object is then relieved of the costs.

Business Area in SAP Material Management

Materials are assigned to a business area based on the combination of division and plant. Every time a material is posted, the relevant material stock account is automatically assigned to the business area belonging to that account.

The business area from the other line items is either (depending on the business transaction in question) derived from the account assignment object posted in Cost Accounting or from the material involved. You do not need to manually assign a business area.

Initial Entry of Stock Balances Goods/Invoices Received

The notable thing about the business transactions being examined here is that they generate a posting record that makes a posting to the material stock account (or the account representing this account) and whose offsetting posting has no business area in it. In this case, the offsetting item takes the business area from the material.

Additional, automatically-generated items that are directly linked to a certain material (price differences, exchange rate differences, freight charges) are also assigned to the same business area as the material.

The payable (vendor) is only allocated to a business area if there is one specified for the material. If more than one is specified in the invoice, the payable is posted without a business area.

Goods Receipt

Invoice receipt

Some Important Questions related to Business Area in SAP

How to draw financial statements in a business area in sap.

We draw Financial statements per business area for internal reporting purposes. It will help if you put a “tick mark in the check box in the configuration against the company for which you want to enable business area financial statements.

When we post transactions in SAP FI we can assign the same to a Business Area so that the system captures the values per business area for internal financial statements.

Can we attach “Business Area” to a Transaction by not assigning the same in a posting?

Yes, you can derive the business area from other account assignments, for example, cost center and Asset Master. We need to define the business area in the master record of Cost Center & Asset Master.

How to post Cross-Company Code Business Area posting?

Using a Cross Company code transaction, one should be able to post to different Business Areas cutting across various Company Codes. Also, any number of Business Area-Company code combinations are possible.

Why do you need to know this?

Though the Business Area in SAP is an optional setting in FICO or S/4HANA Finance , it is essential for a consultant to have good knowledge. This is because a company may demand it in their plant or business to configure. Secondly, it is part of the Cost Structure which is a must-have skill for SAP Functional-consultants. Hence, this is when you must possess relevant skills to work on it.

Additionally, you may have questions on business areas in SAP Finance Interviews . You should have a good configuration knowledge of the business area in SAP in order to perform the task that your client delegated.

Visit Course Page: SAP S4 HANA FICO Training

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Message SAP KI196 - The account assignment objects are defined for different business areas

• DOCUMENTATION

• Implementation Reference

Overview of Account Assignment

An account represents a company or person you sell to. If your business sells to a contact or household, an account represents the contact and household you sell to.

Assignment manager lets you assign territories related to your sales accounts, including customers, prospective customers, individual contacts, and households. You can use assignment rules defined for accounts only to filter the territories that are assigned to accounts.

Predefined business events, such as Organization Created or Organization Updated, may impact the performance of account assignment processes if the profile option that controls those business events is enabled. For more information, see the topic How You Monitor Your Import Activities, in the Oracle CX Understanding Import and Export Management for CX Sales and Fusion Service guide.