Below we have listed all the Top SAP CCA Interview Questions and answers for freshers and experienced. All the best for your interview preparation.
A Cost center is defined as a component in an organization that adds to the cost and indirectly adds to profit if the organization. Examples include Marketing and Customer Service. A company can classify business unit as profit center, cost center or an investment center. The simple and straight forward division in an organization can be classified as cost center as cost is easy to measure. Following are the key uses to create cost centers and performing cost center accounting in an organization − Cost center is used to align overhead costs to activities performed in an organization. It is possible to assign different activity type to a cost center. You perform cost centre accounting to manage cost in the organization and to check profitability of each functional area and decision-making data. You can manage and analyse the overhead cost in an organization and to verify if they are incurred in the organization activities. When you plan costs at cost centre, this allows you to check the cost efficiency at the point when cost is incurred in the organization. You can directly assign the cost to cost centers for products, services and market segments which are involved in performing these activities. In cost center hierarchy, at the top you have organization which is further divided as per the functional areas. Each Functional area are further divided into sub areas and can be further divided as per activities performed. Cost element is known as cost relevant item in Chart of Accounts. Cost element category is used to define if you can post to cost element directly or not. When you post a fixed amount to a cost element by mentioning account number, it is called direct posting. In direct posting, you can post directly to all primary cost elements by specifying the account number. When you can’t enter account number with posting transaction and system determines account at the time of posting automatically, this is known as indirect posting. Key figures can be defined as fixed values and total values. All the key figures that you define as fixed values they are available for positing in full fiscal year. Key figures defined as total values are available only for posting in the defined period. Key figures can be defined manually or you can also transfer it automatically from the information system of SAP system application. Resources are used to perform quantity-based cost planning for cost centers, orders and WBS element. In SAP system as per the available data, you can select from the following resource type − The structure of resource master data contains the following fields − To create Cost center, you can use T-code: KS01 You can divide cost center in cost center groups. In system, it should have at least one group that contains all cost centers and represents the entire business organization. This cost center group is described as the standard hierarchy. You can assign more cost center groups to the standard hierarchy. You can create an internal order to monitor the costs of a time-restricted job or the costs for the production of activities. Internal orders can also be used for the long-term monitoring of costs. You can create an internal order to monitor the costs of a time-restricted job or the costs for the production of activities. Internal orders can also be used for the long-term monitoring of costs. Investment cost related to fixed assets are monitored using Investment orders. Period-related accrual calculation between expenses in FI and the costing-based costs debited in Cost Accounting are monitored using Accrual orders. SAP CO-Profit center is used for managing internal controlling. When you dividing your company into profit centers, it allows you to delegate responsibility to decentralized units and allows you to treat as separate companies in a company. It also allows you to calculate key figures in cost accounting like- ROI, Cash flow, etc. The main aim of creating a Profit Center in Controlling is to analyze the cost of a product line or a business unit. You can also generate profit and loss accounts according to Profit Center and also generate balance sheets however Profit center should only be used for internal reporting purposes. The key components of a profit center includes- name of the profit center, the controlling area under which it is assigned, time period, person responsible for the profit center, standard hierarchy, etc. Cost Center Profit Center Internal Order Period end closing is work carried out at period end as part of cost controlling. To perform period end closing, it is required to transfer the data from other SAP components. You should perform all the posting in Finance Accounting. As part of period closing, following activities are performed − You allocate operating expenses differently in cost accounting as compared to Finance accounting. You can distribute irregular occurring expenses as per cost origin, on the months in which they are incurred. And hence you can avoid all irregularities within cost accounting. Cost allocated in this way is known as Accrual cost. When actual cost on cost center is different from target cost or planning was over/under, you can see a variance in controlling component. Using Variance calculation, you can analyze the actual balance and to find variance of actual cost from target cost with different activity types. To perform variance calculation, navigate to Accounting → Controlling → Product Cost Controlling → Cost Object Controlling → Product Cost by Period or Product Cost by Order → Period-End Closing → Single Functions: Product Cost Collector → Single Functions: Cost Object Hierarchy → Variances → Individual Processing or Collective Processing In year-end closing, you can transfer carry forward to first period of next fiscal year and this is performed for each Controlling under SAP system. Value fields are number or value related fields in profitability analysis such as quantity, sales revenue, discount value etc. A Cost center is defined as a component in an organization that adds to the cost and indirectly adds to profit if the organization. Examples include Marketing and Customer Service. A company can classify business unit as profit center, cost center or an investment center. The simple and straight forward division in an organization can be classified as cost center as cost is easy to measure. SAP CO-Profit center is used for managing internal controlling. When you dividing your company into profit centers, it allows you to delegate responsibility to decentralized units and allows you to treat as separate companies in a company. Under GL accounting, you can have a maximum of 16 posting periods (12 regular plus 4 Special Periods). If you have already posted into the new fiscal year, you do not need to carry-forward the balances manually. But you can use the various ‘carry-forward’ programs supplied by SAP for this task. Using 3-character Currency Code SAP offers a variety of tools to maintain exchange rates on an on-going basis. The tools include − Line Items contain information relating to account number, amount, debit/ credit, tax code, amount, etc. SAP allows a maximum of 999-line items in a single document. It is used to group the costs and revenues as per the value fields. It is used to ensure that you access at all times to a complete, short-term profitability report. It is used to provide you with a profitability report that is permanently reconciled with financial accounting. It is mainly used for getting information related to sales, marketing, product management and corporate planning departments to support internal accounting and decision-making. A Posting Key in SAP is a 2-digit alphanumeric key that controls the entry of line items. SAP comes with many posting keys for meeting the different business transaction requirements. To change some of the accounting information relating to an already posted document, you can only achieve this by Reversing option the original document and posting a new one with the correct information. Number Range is defined as a number interval defined in the system so that when documents are posted, the system assigns a number from this range. There are various standard reports that exists in system for Cost Center Accounting. 1VK Library − This contains report related to cost accounting and is based on full costs. 1GK Library − This contains reports for cost accounting systems based on marginal costs. 1AB library − This is used to maintain the reports for variance analyses. 1 RU library − This is used to maintain summary reports related to overall cost center accounting process. Price reports in Cost Center accounting are available for activity types and for activity-based costing. Under Activity-Based Costing, price report are used to provide an overview of the process prices for each business process. To execute price report online, navigate to Information Systems → Accounting → Controlling → Reports for Cost Center Accounting → Prices You can use following line item reports − This report is used to perform a comparison of the figures in internal and external accounting, display the costs incurred for each object class, and see the cost flows between company codes. Navigate to Information Systems → Accounting → Controlling → Reports for Cost and Element Accounting What are the components in Financial Statement version?”] A Financial Statement Version helps to define the Financial Statements both the Balance Sheet and Profit & Loss statements. What do you understand by SAP Cost Center? Explain with the example?
What are the benefits of using Cost Center Accounting?
What is Cost Center Hierarchy?
What is Cost element?
What is direct and In-direct posting?
What is Key figure?
How do you define Key figures in SAP system?
What do you understand by Resources? What are the different resource type?
What is the structure of Resource master data type?
What is the Transaction Code to create a Cost Center?
What is Cost Center Group?
Why do we create an Internal Order?
What is difference between Investment Order, Internal Order and Accrual Orders?
What do you understand by Profit Center?
Why do we create Profit Centers? What are the key components of Profit Center?
What are the key differences between Cost Center, Profit Center and Internal Order?
What is the use of period End Closing? What activities are performed as part of Period End Closing?
What is the meaning of Accrual Calculation?
What do you understand by Variance calculation in Period end closing?
How do perform variance calculation in Period End closing?
What is Year End Closing? How do you perform a carry forward commitment?
What is the use of Value Field in the CO-PA module?
What is the use of account group of the vendor/customer master records?
What do you understand by cost center, profit center in Controlling?
What are the segments of the customer master record?
What is the Maximum Number of Posting Periods in SAP?
How do you 'Carry-Forward' Account Balances?
How Currencies are maintained in SAP system?
How do you maintain exchange rates in SAP?
What do you understand by a Line Item?
What is Cost based Profitability Analysis?
What is Account based Profitability Analysis?
What do you understand by Posting Key?
What is the use of document reversal in SAP system?
What is Number Range interval?
What are the different Standard reports in SAP CO system?
What are Price Reports? Where do you find them in SAP system?
What are the different line Item reports?
What is the use of Cost Elements report? How do you access Cost Element reports in SAP system?
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