Controlling Cost Centers

1. Controlling Cost Centers Controlling Cost Centers

2. Course Overview Objectives • Provide an overview of the CO module • Identify CO master data terminology and concepts • Understand the cost center process • List the triggers for changes to the cost center hierarchy • Describe the various tools for creating, changing, deleting, and displaying cost centers/cost center groups • Explain the various CO master data roles Controlling Cost Centers

3. Definition Overview of Controlling (CO) Controlling (CO) represents the County’s flow of cost and revenue. It is also a management instrument for organizational decisions. Controlling facilitates coordination, monitoring and optimization of all processes in an organization. Controlling (CO) and Financial Accounting (FI) are independent components in the SAP R/3 system. However, the two components are tightly integrated and the data flow between the two components takes place on a regular basis. Controlling Cost Centers

4. General Ledger The “Top” book of financial records MM FI FI FI CO FI Accounts Payable Manages vendor invoices Accounts Receivable Manages customer billing Asset Accounting Manages fixed assets and depreciation Manages responsibility accounting Controlling Materials Management Manages purchasing/inventory management SAP Financial and Purchasing Components Controlling Cost Centers

5. ASSETS ACCOUNTS RECEIVABLE FUNDS MANAGEMENT GRANTS MANAGEMENT ACCOUNTS PAYABLE What Goes Where HR/Materials Management Modules Other Financial Modules FI Module PAYROLL CONTROLLING PURCHASING INVENTORY MANAGEMENT Controlling Cost Centers

6. Key CO Terminology: • Cost Center • Cost Center Group Controlling Cost Centers

7. Cost Center • Areas of responsibility in the County that incur costs. • Examples: • Tax Assessor Administration • Tax Motor Vehicle • Tax Automation • Human Resources Administration • Human Resources Benefits • etc. Controlling Cost Centers

8. Cost Center (continued) • As cost centers are created, the following attributes are defined: • Cost Center ID Number (10 digits) • Validity Period • Name (up to 20 characters) • Description (up to 40 characters) • Person Responsible (department head) • Department • Cost Center Category (ex: Admin) • Hierarchy Area (ex: Human Resources) [name of cost center group (dept)] • Business Area (use 1000*) * For CSCD State, use 2000. Controlling Cost Centers

9. Cost Center Group • A hierarchical group of cost centers. • Examples: • Elections • Tax • Human Resources • etc. • After a cost center group is created, cost centers are assigned to that group. Controlling Cost Centers

10. Cost Center Group (continued) • As cost center groups are created, the following attributes are defined: • Cost Center Group Name (10 characters, no spaces) • Description (up to 40 characters) Controlling Cost Centers

11. Cost Center Group (continued) Examples: = cost center; = cost center group; Controlling Cost Centers

12. Create/Change Cost Centers Business Process 1. Create Cost Center Group Within Hierarchy 2.Create/Change Cost Centers 5. Make Changes To Cost Centers/Groups 3. Assign Cost Center To Hierarchy (Cost Center Group) 4. Assign Cost Center To Funds Management* * Performed in Funds Management module Controlling Cost Centers

13. Process: Trigger: Output: Create a new cost center group (OKEON) Business need for a new cost center group. Updated cost center hierarchy. Change a cost center group (OKEON) Business need to change an existing cost center group. Updated cost center hierarchy. Move a cost center group (OKEON) Business need to move an existing cost center group to a new location in cost center hierarchy. Updated cost center hierarchy. Delete a cost center group (KSH2) Unneeded cost center group. Updated cost center hierarchy. Process Triggers and Outputs (cost center groups) Controlling Cost Centers

14. Process: Trigger: Output: Create a new cost center (OKEON) Business need for a new cost center. Updated cost center hierarchy. Change a cost center (OKEON) Business need to change an existing cost center. Updated cost center hierarchy. Move a cost center (OKEON) Business need to move an existing cost center to a new cost center group. Updated cost center hierarchy. Delete a cost center (KS04) Unneeded cost center. Updated cost center hierarchy. Process Triggers and Outputs (cost center) Controlling Cost Centers

15. 1. Creating Cost Center Groups TWO OPTIONS: A. Manual Method (KSH1) B. Standard Hierarchy Tool* (OKEON) *Note: The Standard Hierarchy Tool allows the user to view the existing cost center hierarchy as they are creating their new cost center group. Controlling Cost Centers

16. 1. Creating Cost Center Groups (continued) A. Manual Method (KSH1) Controlling Cost Centers

17. 1. Creating Cost Center Groups (continued) B. Standard Hierarchy Tool (OKEON) • used to specify timeframe for changes/updates. Must be checked before using the Standard Hierarchy tool. Controlling Cost Centers

18. 2. Creating/Changing/Deleting Cost Centers OPTIONS: A. Create A Cost Center (KS01) B. Change A Cost Center (KS02) C. Delete A Cost Center (KS04) D. Collective Processing of Cost Centers • Change (KS12) • Delete (KS14) • Standard Hierarchy Tool* (OKEON) *Note: The Standard Hierarchy Tool allows the user to view the existing cost center hierarchy as they are creating, changing, or moving cost centers. Controlling Cost Centers

19. 2. Creating A Cost Center A. Create A Cost Center (KS01) Controlling Cost Centers

20. 2. Changing A Cost Center B. Change A Cost Center (KS02) Controlling Cost Centers

21. 2. Deleting A Cost Center C. Delete A Cost Center (KS04) Controlling Cost Centers

22. 2. Collective Processing of Cost Centers D. Collective Processing – Change (KS12) - used to “drill down” and change a cost center; Controlling Cost Centers

23. 2. Collective Processing of Cost Centers D. Collective Processing – Delete (KS14) Note: Reexecute with “Test Run” indicator removed after successful test. Controlling Cost Centers

24. 2. Collective Processing of Cost Centers D. Standard Hierarchy Tool (OKEON) = copy; = create; Controlling Cost Centers

25. 3. Assign Cost Center to Hierarchy OPTIONS: A. Individual Processing of A Cost Center • Create (KS01) • Change (KS02) B. Collective Processing of Cost Centers • Change (KS12) • Standard Hierarchy Tool* (OKEON) * Can be used to “drag and drop” a cost center to a new cost center group. Controlling Cost Centers

26. 4. Assign Cost Center to Funds Management (done in Funds Mgmt) Funds Management (Budget Control) Controlling (Managerial Reporting) Funds center #1 Fund ABC Commitment Actual Budget Salaries $60,000 $70,000 Operating 15,000 25,000 Total 75,000 95,000 Funds center #1 Fund ABC Commitment Actual Budget Salaries $60,000 $70,000 Operating 15,000 25,000 Total 75,000 95,000 Cost Objects Cost center #6 Budget control is at the combination of the fund/funds center/ commitment item/functional area Cost center #7 Cost element Actual Plan Wages $10,000 $11,000 Overtime 3,000 4,000 Travel 6,000 6,000 Utilities 4,000 3,000 Total 23,000 24,000 Funds center #2 Fund DEF Commitment Actual Budget Salaries $40,000 $50,000 Operating 15,000 35,000 Total 55,000 85,000 Note: There is a one to one relationship of cost centers to funds centers. Controlling Cost Centers

27. 5. Make Changes To Cost Centers/Cost Center Groups OPTIONS: A. Cost CenterGroup Changes • Change A Cost Center Group (KSH1) • Collective Processing of Cost Center Groups • Standard Hierarchy Tool (OKEON) B. Cost Center Changes • Change A Cost Center (KS02) • Delete A Cost Center (KS04) • Collective Processing of Cost Centers • Change (KS12) • Standard Hierarchy Tool (OKEON) Controlling Cost Centers

28. Display Transaction Codes for Centers/Cost Center Groups DISPLAY OPTIONS: A. Cost Centers • Display A Cost Center (KS03) • Display Standard Hierarchy Tool (OKENN) B. Cost Center Groups • Display A Cost Center (KSH3) • Display Standard Hierarchy Tool (OKENN) Controlling Cost Centers

29. CO Roles/ Authorized Transactions A. CO – Display Role - • Display A Cost Center (KS03) • Display Standard Hierarchy Tool (OKENN) B. CO – Master Data Role - • Create A Cost Center (KS01) • Change A Cost Center (KS02) • Delete A Cost Center (KS04) • Collectively Change Cost Centers (KS12) • Collectively Delete Cost Centers (KS14) • Standard Hierarchy Tool (OKEON) • Create Cost Center Group (KSH1) • Change Cost Center Group (KSH2) Controlling Cost Centers

30. Course Overview Summary You should now be able to: • Provide an overview of the CO module • Identify CO master data terminology and concepts • Understand the cost center process • List the triggers for changes to the cost center hierarchy • Describe the various tools for creating, changing, deleting, and displaying cost centers/cost center groups • Explain the various CO master data roles Controlling Cost Centers

31. Accessing Training Materials • All TITAN training materials for Phase II are stored on the Tarrant County website • This website is accessed through your Internet Explorer from any computer that has internet access; you do not have to be on the Tarrant County network. The URL for direct link to the Training Materials website is: http://www.tarrantcounty.com/titan/lib/titan/training/index.asp • Set up this website as a favorite in your web browser for quick future access • Enter the URL above in the address field in your browser • When you reach the website, go to Favorites > Add to Favorites in the Browser menu • A pop-up window will be displayed with a default name for the site. Click OK. • To access this site in the future, just click on the Favorites item in the menu and highlight the name for the website. You will go directly to the website. Controlling Cost Centers

32. Accessing Training Materials (cont’d) • Review the instruction page to see how to use the website • Click on the Courseware link at the top of the Instruction page • A Listing of Courses will be displayed • Click on the Course Title to see a general description of the content of the course or • Click on one of the buttons beside the Course Title to go directly to either the Overview, Quick Reference Cards, or Tutorials • These training materials will be available for your use and reference at any time Controlling Cost Centers

33. Running Tutorials • An additional learning tool is being provided with the Phase II SAP implementation -- Tutorials • Tutorials are simulations of the SAP system that take you through a transaction step-by-step in a mock SAP environment. • These can be viewed in two ways: • As a movie that takes you through the transaction in a demonstration, or • As an interactive, hands-on practice session that stops on each screen and directs you to make entries in fields or take actions per instructions provided by the wizard and in the bubbles • Tutorials are provided with each course in the Finance and Purchasing training • A list of the tutorials is provided at the end of each course. • Go to the Training Materials website to access and run these tutorials. Detailed instructions are provided on the website Happy Tutoring!! Controlling Cost Centers

34. Training Sandbox • An SAP environment (Training Sandbox) where you can practice your skills in a real instance of SAP will be available after June 18 • The sandbox can be accessed through the standard logon process discussed in Lesson 2 of the SAP Basic Navigation course • The only differences are: • Highlight the Training environment on the Logon pad • Click logon • Enter 520 in the Client field • Enter the same User Id and Password you are assigned for Production Feel free to practice any of the tasks in the basic navigation course and any of the transactions included in other courses you take. Use the Quick Reference Cards to walk you through the transactions. Controlling Cost Centers

35. Getting Help 1 Review the on-line help in SAP Review your training materials and notes. 2 Ask your peers or super user for assistance. 3 Controlling Cost Centers

36. Tarrant County Help • Problems with running tutorials? • Training Mailbox – titansaptraining@tarrantcounty.com • After utilizing the various methods of help on the previous page, if you still have questions or problems or • If you have problems at any time with accessing SAP, printing, computer or network problems, etc. Contact the Tarrant County IT Help Desk at 817-884-3507 Controlling Cost Centers