Defining cost groups and account assignments

The term Costs does not relate to the same types of transaction in all organizations, or within organizations that contain multiple business units. For example, an organization that has both service and manufacturing business units will use different cost groups in its sales planning for each business unit. Cost groups enable you to differentiate between the different planning requirements of multiple business units. Therefore, you must specify which accounts are cost accounts.

You can copy sales and cost group definitions from a configuration set to a new configuration set.

For each cost group you can activate up to ten cost types. You associate each cost type with the Profit and Loss account to which the cost will be written, and to the Balance Sheet account to which the associated liabilities will be written.

Click the Home icon.
Select Applications > Sub Plan > Sales > Configuration Sales > Define Cost Groups.
Click New Group.
Specify a name for the cost group and click OK.
Click the Configure button of the new cost group.
The Cost Group Overview / Account Assignment page displays.
Click the Edit button of each active cost position and give each a name.
Click Not set in the Cost column of each active cost position and select the P&L account to which costs will be written.
The accounts you can select are those that are assigned to Costs in the sub plan. If no cost accounts are assigned to the sub plan, the Cost column displays No Account. Assign one or more cost accounts.
Click Not set in the Payable column of each active cost position and select the balance sheet account to associate with liabilities which arise from the cost.
The accounts you can select are those that are assigned to Liabilities in the sub plan. If no liabilities are assigned to the sub plan, the Payable column displays No Account. Assign one or more liability accounts.
Optionally, specify that costs of a particular type are displayed as percentages in the data entry pages.
Specify a cash account for the cost group.
Optionally, if the cost plan relates to manufacturing you can select the Production check box in the Global cost group definition table. If you select Production, you must select an inventory account and a finished goods account. A step is added to the Sales Planning data entry page which enables users to specify data about production volumes.
A check mark in the Production column indicates whether the cost group configuration is valid.
In the Active column, select the check boxes to activate as many of the ten cost positions as required.
Define sales groups.