Unit 6

Integration Aspects of the Accounting Logic

Business Example
When actual cost/revenue are entered, the primary cost/revenue entered in
Financial Accounting are transferred to Management Accounting. In Management
Accounting, this transfer takes place in real time from Financial Accounting, Material
Management, Sales Order Management, and Asset Accounting, where a cost
accounting object is recorded during account assignment. You want to see how this
affects other areas.
In Management Accounting, you can display commitments for future costs in
additional to the actual costs.
Posting Data to Management Accounting
When a Financial Accounting document is created that posts to an expense account
using a corresponding cost element, a controlling document us also created. This
Management Accounting document has a unique number and contains the following
details :

Management Accounting object that was posted to

Cost element used
Posted amount

When a primary cost is initially posted to Management Accounting, it is treated as a

one-sided journal entry, unlike a conventional, balanced financial accounting journal
entry. Posting costs and revenues to Management Accounting in true and statistical
posting. You can settle true posting with other Management Accounting objects.
Statistical postings are for information purposes only.
True Objects can act as sending or receiving objects during cost allocation.
Statistical objects cannot allocate cost to other objects. You can make a statistical
account assignment to any number of cost accounting objects. Statistical controlling
objects include statistical orders, statistical projects, and profit center.
Posting from Financial Accounting and Human Capital Management
When a journal entry is created in Financial Accounting that includes an expenses
line item, that expense can be posted to Management Accounting as a cost if the
following conditional are met :

A primary cost element that corresponds to the expense account used in the
jpurnal entry is Financial Accounting has been created in Management
Accounting

A valid cost center is referenced in the Financial Accounting line item

As a result, two separate documents are created : a Financial Accounting document

and a management accounting document. Each document has a unique document
number, and it is possible to drill down in either document to link to the other.
Posting from Materials Management to a Cost Center
Good issue transactions posted in the Material Management component can be
assigned to a cost center. An example could be parts issued to an R&D cost center
for constructing a product prototype. A good issue to a cost center creates a
Financial Accounting transaction that debits a material consumption expense
account and credits a material stock account. The cost center is debited with the
value of the goods issued using primary cost element.
Commitments
Once posted, the purchase order record creates a commitment line item for the cost
center entered in the purchase order item. The information system can be reported
on outstanding commitments for a given cost center. Commitments for future costs
are created in the Purchasing function of the Materials Management components :

A purchase requisition represents the commitments in Management

Accounting, you must assign a Management Accounting object to a purchase
requisition item
A purchase order is a contractual agreement to purchase goods or services
from a vendor according to agreed conditions

When you create a purchase order with reference to a purchase requisition, the
commitments is reclassified in Management Accounting.
Lesson : Statistical and Real Postings
Business Example
In most cases, costs are posted directly to the cost objects that cause them. In
certain cases, however, it is advisable to post the costs to two objects at the same
time. For example, a marketing manager might want to post costs from different
marketing campaigns to two different object. This allows the campaign costs to be
managed by the marketing cost center, but allows them to be motored separately.
Posting to Statistical and Real Orders
Statistical orders are typically used to evaluate costs that cannot be itemized in
detail in Cost Center Accounting. Unlike real internal costs, you can neither settle
statistical orders nor apply overhead to them

In the example in the figure, the financial accounting document assigns the cost
posting to both a cost center and statistical internal order. The costs will appear
under the original cost element both on the cost center and on the order.
Example : Statistical orders could be created for individual trucks motored in a
vehicle pool cost center, Cost postings could be assigned to both the relevant order
and the cost center. The real cost postings are accumulated on the cost center for
the entire vehicle pool, whereas the individual orders retain the detail cost
information for each vehicle