Creation of Revenue Elements (11/12 Categories)

[former_member218048]

Dear Friends

We do not have Profitability Analysis activated.

We need to create certain Sales related GL accounts.

Do we need to create these GLs are 'revenue elements' in Controlling ?6

If we create them as revenue elements (11/12 categories), should we do automatic account assignment in OKB9 ?

Please guide me.

[ajaycwa1981 · Accepted solution]

Hi Niki

How would you like to report the profitability?

Even without a cost element, you can take the P&L account into PCA.. So, decide on your profitability reporting need 1st and drive back from there

If you are able to get the required reporting from PCA even without a cost element, then dont create it.. Else, do create it..

br, Ajay M

[former_member218048 · Accepted solution]

Dears

As of now, we dont have Profitability Analysis. It may come in future.

Hence, taking this into anticipation, I can create them as Revenue elements. We have profit centre data already in the system.

But we dont have the requirement to post the same to Cost centres (statustical) or Internal orders or WBS elements. 

In this case, will be system ask for CO assignment for the Revenue elements i.e. should we have to maintain OKB9 entries mandatorily ?

[ajaycwa1981 · Accepted solution]

Hi Nikki

when you post to catg 11 cost element without any IO or PSG, system may give a Warning msg

Incase it is error msg, you can change it in OBA5...

OKB9 is not mandatory

Ajay M

[former_member218048 · Accepted solution]

Thanks Rajaneesh/Srinivas/Ajay.

[rajneesh_saxena]

Dear Nikki

Yes, you should create Revenue Cost elements under category 11 for Sales related Gls and Category 12 for Sales deduction related Gls (Which are used in Condition types in SD). There is no harm in it, rather it will be better looking at the future.

If required you may do settings in OKB9 for automatic account assignment.

Regards

Rajneesh Saxena

[former_member218048]

Dear Rajneesh

Thanks for the input.

Could you please tell me :

1. Why we should maintain them as Cost elements ?

2. What CO assignment should be given in OKB9 settings ?

[Former Member]

Hi Nikki,

Revenue cost elements you may use in Internal orders. If that is the case, need to create GL account as cost element.

Also, CO account assignment is based on your requirement with respect to cost element. You may give an order, cost center. If you dont want to mention just leave it.

BR, Srinivas Salpala

[rajneesh_saxena]

Dear Nikki

As I said keeping in view the future requirement you may create them as Cost element. But remember that revenues can only be posted statistically to cost centers. If your revenue account is defined as cost element, then some assignment to cost object is required (it could be cost centre, I/O, WBS), but there should be also an assignment to true object, e.g. profit centre or' true' CO object (I/O, WBS)

With OKB9 you can propose which cost center should be used by default when a particular GL account is posted. This is the functionality of OKB9 settings. Normally for internal posting by the system like for consumption etc, account assignments are defined here.

Regards

Rajneesh  Saxena