Functional Area Determination: What is "Sales Object" and "Nonsales Object"?

[petermeid]

Dear all,

I have big issues in configuring the functional area determination since I'm not sure how the restriction to a cost accounting object (sales object / nonsales object) effects on the functional area determination  since those terms are not defined in any documentation (please see appendix file).

I think that a sales order is a sales object, but what more can be a sales object?

Same question concerning nonsales objects. Is there a list of nonsales objects available? E.g. I'm quite sure, that a direct cost project is a nonsales object, but what more? What about a cost centers - are they nonsales objects too?

Can anyone give me a definition of the terms cost-accounting object, sales object and nonsales object?

Thank you very much!!

Best Regards

Peter

[parveen_kumar6 · Accepted solution]

Hello Peter

The Functional Area Determination setup was changed with the new posting logic for sales. The objective was to increase flexibility and detailing options in structuring a company's income statement. At the same time this change allows customers issuing an income statement by nature of expense more easily.

The major change refers to the G/L account determined for any kind of cost. Till then any cost of sales document was recorded as a cost of goods sold on the respective account. With new posting logic, the G/L account used for the expenses will be the operational expense account previously recorded as G/L account (origin) only. Thus costs now are treated identically irrespective of the cost object to which they are charged and will be posted to the same G/L Account.

Here, the 'Restricted to' column has been introduced allowing for assigning costs of sales documents to a functional area distinct from the costs of other cost objects even if having the same G/L account.

For e.g. If you have an expense G/L Account which can be used in both sales and other cost objects, then you can determine the Cost of Goods Sold Functional area for the sales process and some other functional area for other cost objects to distinguish between the types of expense in the Income Statement.

In general, the Sales Object would refer to Sales Order/Customer Projects and the Non-sales object would be assignment to internal project/cost center or free cost object.

I hope this answers your queries related to functional area determination setup.

Thanks

Parveen Kumar

[petermeid · Accepted solution]

Hello Parveen,

thanks a lot for your quick and detailed answer!

Cost Center = Nonsales Object .... This explains the behaviour of the system, namely that the same functional area is assigned when posting to G/L-Account 123456 and the functional area determination ist configured as follows:

  1. Entry: G/L-Account 123456 / Restriction on nonsales object => functional area 1000

  2. Entry: G/L-Account 123456 without restriction => funtional area 3000

Since I was told that cost centers would not be nonsales objects I expected the system to assign 1000 when posting to direct cost object and to 3000 when posting to cost center. But it didn't, it assigned both postings to 1000. OK, that's done!

So, may I please ask for my concrete problem?

• Our Customer doesn't use sales orders oder any other sales objects. We import the revenues via Web Service Journal Entry => For revenues we assign the functional area by G/L-Account without restriction (as in standard configuration)
• cost postings can be posted either to direct cost object or to cost centers, but with the same G/L-Account:
  • If posted to direct cost object it must be assigned to functional area 1000
  • If posted to cost center it must be assigned to another functional area, e.g. 3000

Is there a chance to configure the functional area determination as needed?

Thanks a lot & best Regards

Peter

[parveen_kumar6 · Accepted solution]

Hello Peter,

As I understand, the first point is resolved as you use different G/L Accounts here. The real issue is in the second point where you want to determine two different functional areas for the Non-Sales Object(Direct Cost and Cost center) and using the same G/L Account.

Can you please elaborate how you perform the postings to the cost center in this case? Is is not possible to use different G/L Accounts here?

Thanks

Parveen Kumar

[petermeid · Accepted solution]

Yes, indeed, that's the problem!

In standard configuration I see the only solution in creating 2 different G/L-Account, e.g. "Marketing für direct cost projects" and "General Marketing".

But that's exactly what I want to avoid since our customer has about 150 G/L-Account which would be effected. So this would lead us to 150 additional G/L-Accounts.

Any other ingenious idea?

Thanks a lot

Peter

[parveen_kumar6 · Accepted solution]

Hello Peter

Can you try the following.

Don't maintain any functional area determination for these G/L Accounts. Then system will go to the 3rd rule in the Priority sequence for the functional area determination.

1. Functional area derived automatically from cost center or free cost object

For postings to cost centers, the functional area is derived from the settings for the cost center type as defined on the Determination Using Cost Center Types tab.The same applies to projects, for which functional area derivation is based on the type of the responsible cost center.For free cost objects, the functional area defined in their master data is used.

Maintain the functional area determination using Cost Center Types to determine the appropriate functional area.

Hope this helps.

Thanks

Parveen Kumar

[petermeid · Accepted solution]

Hello Parveen,

thanks for answering. Indeed this is a possibility to post postings to direct cost projects into another functional area than postings to cost center if posted to the same G/L-Account. I was not aware of this.

But unfortunately this solution proposal doesn't meet our requirements. Example:

• Cost center 1100. For fixed costs posted to this cost center (e.g. salaries, office costs, depreciations) the functional area Z20 must be derived.
• In case of cost center 1100 being responsible for a direct cost project (what is in fact a use case of our customer) all costs posted to the project must be derived to functional area Z01. And unfortunately I cannot create a Dummy-Cost-Center which could be the responsible cost center for all direct cost projects since I need the correct responsible cost center for profit center determination.

I'm afraid that the only solution is a solution enhancement of the functional area determination.

Best Regards

Peter

[thomas_meder · Accepted solution]

Hello Peter,

in your specific case, I would recommend to go for an Enhancement Implementation,

namespace ,

Enhancement option .

Over the day, I will try to come with more information.

Best regards,

Thomas

[thomas_meder · Accepted solution]

Example implementation (will always overwrite functional area with 1000):

     import ABSL;

     import AP.FinancialAccounting.Global;

     var result : ExpenseClassificationFunctionalAreaCode;

     result.content = "1000";

     return result;