In this exercise, you build a mini cost accounting system and work through it step by step. After each step, you compare the balances in the system with the target values. This way you get to know the mechanics before you set it up in your real tenant, and you see the most important principle in action: the cost centre view and the cost object view always show the same true result.
Period: The exercise takes place in the previous month (referred to below as “month M”) and in the current month (M+1). If you do the exercise in October, M is September. This makes the allocation work, because it always distributes the previous month.
Preparation: the master data
| What | Settings |
|---|---|
| Cost categories | 4100 Posting revenue (Revenue), 5200 Licences for projects, 6100 Internal personnel costs, 6500 Salaries, 7100 Premises costs, 7200 Travel costs (all Costs), 9200 Reposting, 9310 Allocation administration, 9390 Allocation personnel remainder (all Secondary) |
| KLR-KS1 | cost centre, type service cost centre (is allocated) |
| KLR-KS2 | cost centre, type final cost centre (keeps its costs) |
| KLR-GKS1 | cost centre, type salary cost centre, not under KS1 or KS2 in the tree |
| KLR-KT1, KLR-KT2 | cost objects, type final cost object, status active |
| Switch | Cross-posting (cost centre/cost object) is off |
How to create the objects is described in Set up cost accounting.
Tip: Record the primary postings as general postings under Finance → Postings. There you set cost centre and cost object freely without a rule adding anything. The exercise also works with real documents and expenses, but then check whether the pre-filling fills in additional fields.
Step 1: four primary postings
| No. | Date | Transaction | Cost category | Cost centre | Cost object | Amount |
|---|---|---|---|---|---|---|
| B2 | 15th of M | Travel | 7200 | KLR-KS1 | KLR-KT2 | −€400 |
| B1 | 26th of M | Licence | 5200 | KLR-KS1 | KLR-KT1 | −€1,000 |
| B3 | 1st of M+1 | Rent | 7100 | KLR-KS2 | KLR-KT2 | −€2,000 |
| B4 | 1st of M+1 | Revenue | 4100 | KLR-KS2 | KLR-KT1 | +€2,000 |
Target after step 1:
| KLR-KS1 | KLR-KS2 | KLR-KT1 | KLR-KT2 | Σ cost centres | Σ cost objects |
|---|---|---|---|---|---|
| −1,400 | 0 | +1,000 | −2,400 | −1,400 | −1,400 |
KS2 is at 0 because rent and revenue cancel each other out exactly. Every posting carries a cost centre and a cost object, so both views contain the same €1,400.
Step 2: two repostings
Both on the last day of M, cost category 9200. How to do it is described in Repost an amount.
| No. | Where | Source → target | Amount | Route |
|---|---|---|---|---|
| U1 | detail manager KLR-KS1 → Reposting | KLR-KS1 → KLR-KS2 | €300 | cost centre → cost centre |
| U2 | detail manager KLR-KT2 → Reposting | KLR-KT2 → KLR-KT1 | €200 | cost object → cost object |
Target after step 2:
| Status | KLR-KS1 | KLR-KS2 | KLR-KT1 | KLR-KT2 | Σ CC | Σ CO |
|---|---|---|---|---|---|---|
| after U1 | −1,100 | −300 | +1,000 | −2,400 | −1,400 | −1,400 |
| after U2 | −1,100 | −300 | +800 | −2,200 | −1,400 | −1,400 |
The source is relieved (balance rises), the target is charged (balance falls). Both totals stay at −€1,400.
Counter-check: Try a reposting from KLR-KS2 to KLR-KT2. The system does not allow a cost object as the target, because the “Cross-posting” switch is off. That is exactly how it should be: this posting would count €200 twice in the cost object view (see Two views, one result).
Step 3: salary via the salary cost centre
All postings in M. How the salary cost centre works is described in Allocate personnel costs via a salary cost centre.
| No. | Transaction | Cost category | Cost centre | Cost object | Amount |
|---|---|---|---|---|---|
| Z1 | project time 4 h × €50 | 6100 | KLR-GKS1 | KLR-KT1 | −€200 |
| Z2 | project time 2 h × €50 | 6100 | KLR-GKS1 | KLR-KT2 | −€100 |
| G1 | salary to the department (general posting) | 6500 | KLR-KS1 | – | −€400 |
| G2 | salary to the salary cost centre (general posting) | 6500 | KLR-GKS1 | – | −€400 |
For Z1 and Z2, set the cost centre KLR-GKS1 in the Cost accounting section if the rule does not already supply it.
Target after step 3:
| KLR-KS1 | KLR-KS2 | KLR-GKS1 | KLR-KT1 | KLR-KT2 | Σ CC excl. salary CC | Σ CO |
|---|---|---|---|---|---|---|
| −1,500 | −300 | −100 | +600 | −2,300 | −1,800 | −1,700 |
The time bookings charge the cost objects and relieve the salary cost centre: −400 + 300 = −100. The cost object view is still €100 below the true result, because the remainder on the salary cost centre has not yet been allocated. The salary cost centre does not count in any total.
Step 4: two allocations for month M
Create the rules as described in Set up an allocation rule and run them in the current month. What is allocated is the CM2 of the previous month M; postings B3 and B4 from M+1 are therefore not included.
| Rule | on | Target | Key | Cost category | Pre-filled amount |
|---|---|---|---|---|---|
| R1 | KLR-KS1 | KLR-KS2 (cost centre) | Evenly distributed | 9310 | €1,500 |
| R2 | KLR-GKS1 | KLR-KT1, KLR-KT2 (cost objects) | Evenly distributed | 9390 | €100 |
Calculation R1: B1 + B2 + U1 + G1 = −1,000 − 400 + 300 − 400 = −€1,500. Calculation R2: G2 + Z1 + Z2 = −400 + 200 + 100 = −€100.
Target after step 4 (final status):
| KLR-KS1 | KLR-KS2 | KLR-GKS1 | KLR-KT1 | KLR-KT2 | Σ CC excl. salary CC | Σ CO |
|---|---|---|---|---|---|---|
| 0 | −1,800 | 0 | +550 | −2,350 | −1,800 ✓ | −1,800 ✓ |
Both views show the true result of −€1,800: the four postings (−€1,400) plus the salary (−€400). The service cost centre and the salary cost centre are at zero, the department bears the real salary, and the cost objects bear the hours plus their share of the remainder.
Check log
Enter the actual values from the system next to the target values:
| Status | KLR-KS1 | KLR-KS2 | KLR-GKS1 | KLR-KT1 | KLR-KT2 |
|---|---|---|---|---|---|
| after step 1 | −1,400 | 0 | – | +1,000 | −2,400 |
| after U1 | −1,100 | −300 | – | +1,000 | −2,400 |
| after U2 | −1,100 | −300 | – | +800 | −2,200 |
| after step 3 | −1,500 | −300 | −100 | +600 | −2,300 |
| after R1 | 0 | −1,800 | −100 | +600 | −2,300 |
| after R2 | 0 | −1,800 | 0 | +550 | −2,350 |
What you have learned
- Every posting carries a cost centre and a cost object; both views show the same result.
- Repostings stay within their view; the source is relieved, the target charged.
- The salary cost centre is the only bridge from the cost centre view to the cost object view.
- An allocation distributes the CM2 of the previous month and empties the source.
Common problems
A balance arrives with the opposite sign. Source and target of the reposting are swapped. Create a reversing entry and post again in the right direction.
R1 proposes an amount other than €1,500. Check the dates: B1, B2, U1 and G1 must be in M. If one of them is in the current month, it does not count towards the previous period. Note down the pre-filled amount; it is an important test result.
KLR-GKS1 is not relieved by Z1 and Z2. The time bookings do not carry KLR-GKS1 as their cost centre, or KLR-GKS1 does not have the type salary cost centre.
The cost centre total includes KLR-GKS1. The salary cost centre sits in the tree under a node that adds it up. Place it outside.
Related topics
- Two views, one result: the core principle of cost accounting Cost accounting Concept
- Repost an amount Cost accounting How-to
- Set up an allocation rule Cost accounting Configuration
- Allocate personnel costs via a salary cost centre Cost accounting Configuration
- Topic: Cost accounting Cost accounting