Credit group specifies the transactions that are to be blocked for processing when the credit limit exceeds. Credit group created for each variation in the document type.
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Variances in the Controlling component (CO) at period-end closing can be due to planning was overshot/undershot, the actual costs on the cost center or business process differ from the target costs and over-/under-absorption occurs on the cost center or the business process.
Once the credit group is created, the sales documents and delivery types need to be assigned to credit group for checking customer limits. The link between the sales documents and delivery types can be established through assignment. Without assignment the system can’t able to verify the customer limits while creating sales documents.
During the year-end closing, you can transfer carry forward open commitment values, purchase orders and funds commitments to the first period of the next fiscal year.
Every customer has a limit to purchases the products from the company in case of credit purchases. Customer can’t buy any products beyond the credit limit. If the customer needs to buy more products and is approved, then the customer credit limit needs to be increased.
Product Costing is used to value the internal cost of materials and also used for production for management accounting and profitability. Due to costing’s high integration with other modules and complexity, the product costing is avoided.
In SAP system, Cost Center used to determine the given application component structure. Cost center remains constant over extended periods. Cost center planning should execute to reflect the cost center structure and generate periodic cost center reports.
Some important standard reports available for Cost Center Accounting (CO-OM-CCA) supplied in the SAP system. Standard reports are organized into four different libraries.
Cost Center known as a component in an organization where costs are incurred that adds value to the cost and adds profit of the organization. Cost Center is a simple and straightforward division in an organization.
Step-1: go to transaction FB50 to post the cost center.