Defining a cost center for purchase account

This page allows you to define a cost center for an expense or a WIP account. Tell me more.

Select the “Maintain Purchase Definition” link under “Cost Center Rule Definition” business component.

The “Maintain Purchase Cost Center Rule Definition” page appears.

Enter the following field:

Company Code

Use the drop-down list box to select the code identifying the company over which the business unit has been defined. Mandatory. If the business unit spans across companies, then all the company codes that are mapped to the business unit to which the login organization unit belongs, will be available for selection in ascending order, along with blank. The system displays blank by default on launch of the page.

Enter the following fields in the “Cost Center Definition Details” multiline:

Event	Use the drop-down list box to select the event or the business process based on which the cost center mapping is done. You can select from “Normal”, “Subcontract Conversion”, “Subcontract Service” “Subcontract Activity” or “All”.
	Normal – indicates that items are purchased based on a purchase order.
	Subcontract Conversion – indicates that the items are issued to a vendor for conversion.
	Subcontract Service – indicates that the items are issued to a vendor to receive some service in return.
	Subcontract Activity – indicates that the items are issued to a vendor to carry out certain steps of production.
	The system displays “All” by default on launch of the page.
Finance Book	Use the drop-down list box to select the code identifying the finance book that has been mapped to the company – business unit combination. All the finance books that has been mapped to the selected company – business unit will be available for selection in ascending order along with “All”. The system displays “All” by default on launch of the page.
Account Code	The code identifying the expense or the WIP account (Alphanumeric, 32). If the account code entered here is an expense account then it should have been defined in the “Accounting Setup” business component. If the account code entered here is a WIP account then it should have been defined in the “Accounting Setup” business component as an asset account and this account should have been defined as a WIP account in the “Account Rule Definition” business component.
	Press the <Enter> key.
	The system retrieves and displays the account description in the “Account Desc.” field.
	Help facility available

Note: This field should not be left blank if the “Cost Center” and the “Effective From Date” fields are not left blank.

Cost Center	The code identifying the cost center that has to be mapped to the company code + finance book + WIP or expense account combination (Alphanumeric, 10). The code entered here should have been defined in the “Cost Setup” business component mapped to the business unit of the login organization unit.
	Press the <Enter> key.
	The system retrieves and displays the cost center description in the “Cost Center Desc.” field.
	Help facility available

Note: This field should not be left blank if “No” has been selected in the “Additional Parameters” field and should be necessarily left blank if “Yes” has been selected in the “Additional Parameters” field.

Effective From

The date from which the cost center derived for the company code + finance book + WIP or expense account combination is valid (Date Format).

If an expense account is used in the definition then the date entered in this field should be greater than or equal to the “Effective From Date” and should be less than or equal to the “Expiry Date” of the expense account, that has been defined in the “Accounting Setup” business component.

If a WIP account is used in the definition then the date entered in this field should also be greater than or equal to the “Effective From Date” and should be less than or equal to the “Expiry Date” of the WIP account, that has been defined in the “Account Rule Definition” business component.

Also, the date entered in this field should also be greater than or equal to the “Effective From Date” and should be less than or equal to the “Expiry Date” of the cost center, that has been defined in the “Cost Setup” business component.

The date entered here is also checked against the “Effective From Date” and the “Expiry Date” of the cost element that has been mapped to the account code and the company code.

The system displays the following:

Valid Upto Date

The date till which the cost center definition is valid.

Note: For the same company code + finance book + expense or WIP account combination, if two different cost center mapping are done, then the system updates the “Valid Upto Date” of the first definition to one day less than the new definition’s “Effective From Date”.

This field is updated on creation of another for the same combination of company code + Event + Finance Book + Expense or WIP Account

Enter the following field in the “Cost Center Definition Details” multiline:

Additional Parameters

Use the drop-down list box to specify whether additional parameters have to be specified for the cost center derived for the company code + event + finance book + expense or WIP account combination. You can select from “Yes” or “No”. The system displays “No” by default on launch of the page.

The system displays the following:

Account Desc.	A brief description of the purchase account defined. The system retrieves and displays the account description from the “Accounting Setup” business component.
Cost Center Desc.	A brief description of the cost center that has been mapped to the expense or the WIP account. The system retrieves and displays the account description from the “Cost Setup” business component.

Check the box in the select column of the multiline to mark a definition for specifying additional parameters.

Click the “Save Details” pushbutton to save the cost center definition.

Cost center definition

If the purchase cost center rule is defined without additional parameters, then the system saves the details and updates the login ID of the currently logged in user and the system date along.

If the purchase cost center is defined with additional parameters, then the system saves the input data for further processing.

To proceed, carry out the following

Select the “Maintain Purchase Cost Center Rule Definition” link from the bottom of the page to specify additional parameters for the cost center definition for purchase account.

Select the “Maintain TCD Cost Center Rule ” link from the bottom of the page to map define a cost center rule for a purchase TCD Account

Select the “View Purchase Cost Center Rule Definition” link from the bottom of the page to view the cost center definition that has been mapped to a purchase account.

Defining a cost center for purchase account – An overview

In this page, you can specify the mandatory parameters for the cost center mapping like the:

Code identifying the company involved in the mapping
Event or the business process based on which the cost center is mapped
Finance book to which the purchase transactions are posted
Code identifying the expense or the WIP account to which the cost center rule is defined (to be specified only when additional parameters is specified as “No”)
Effective date from which this purchase cost center definition is valid (to be specified only when additional parameters is specified as “No”).

This page also allows you to specify one or all finance books that are mapped to the company for the purchase cost center definition. But, if all finance books are used for the cost center definition (for a purchase account) then individual finance books (for the same purchase account) cannot be mapped to another cost center till the previous definition is closed.

You can also specify whether additional parameters are involved in the purchase cost center definition. If additional parameters are involved then the system saves the basic parameters and takes you to the additional parameters page where the cost center rule can be defined. If not, then the system saves the sale cost center definition along with the login ID of the user and the system date.

Prerequisites

Mandatory

“Company Code” must have been defined in the “Organization Setup” business component.
“Finance Book” must have been defined in the “Organization Setup” business component.
“Finance Book” must have been mapped to the “Company Code”.
If the account code specified for the definition is an expense account then, “Account Code” must have been defined in the “Accounting Setup” business component.
If the account code specified for the definition is a WIP account then, “Account Code” must have been defined in the “Accounting Setup” component as an Asset Account . This account should also have been defined as a WIP Account in the “Account Rule Definition” business component.
“Cost Center” must have been defined in the “Cost Setup” business component.
Account Code must have been mapped to a normal cost element, which in turn must have been mapped to a cost center in the “Cost Setup” business component.

What you can do in this page

Set the event involved in the cost center definition

Set additional parameters applicability

Define purchase cost center

Set the event involved in the cost center definition

You can specify the event or the business process based on which the purchase cost center is defined.

Set the “Event” field to “Normal” if items are purchased based on a purchase order.

Set the “Event” field to “Subcontract Conversion” if items are issued to a vendor for conversion.

Set the “Event” field to “Subcontract Service” if items are issued to a vendor to receive some service in return.

Set the “Event” field to “Subcontract Activity” if items are issued to a vendor to carry out certain steps of production.

Set additional parameters applicability

You can specify whether additional parameters are used for the purchase cost center definition.

Set the “Additional Parameters” field to “Yes” if additional parameters are specified in the purchase cost center definition.

Set the “Additional Parameters” field to “No” if additional parameters are not specified in the purchase cost center definition.

Define purchase cost center

You can define a purchase cost center by specifying the mandatory parameters.

Specify the company code, the finance book, the expense or the WIP account code and the cost center to be mapped. “Cost Center” and “Effective From Date” will be specified only when additional parameters is set as “No”.

Click the “Save” pushbutton to define a purchase cost center.