The functional area shows in journal entry of expense report is incorrect.
Reproducing the Issue
You create an expense report in cost center XYZ. But the journal entry of the expense report does not show the functional area which is linked to the cost center.
We need to ensure that both master data setup and business configuration are maintained correctly before the creation time of the journal entry.
- Master Data Setup
- Go to Organization Management work center.
- Select common task Edit Org Structures.
- Go to tab Definitions, select the cost center type ABC for the cost center XYZ.
- Select Save.
- Business Configuration
- Go to Business Configuration work center and Implementation Projects view.
- Select the implementation projects and select Open Activity List.
- Open activity Settings for Income Statements by Function of Expense and Earned Profit Analysis.
- Select sub activity Edit functional area determination.
- Select the related Accounting Principles.
- In tab Determination Using Cost Center Types, assign cost center type ABC to Functional Area DEF.
- Save your settings.
You can create an expense report with cost assignment to the cost center. In this way, the functional area assigned to the cost center type should show in the journal entry.
All the master data setup and configuration should be done before you post the expense report. Otherwise, the journal entry does not show the correct functional area, this is the root cause in this case.
You need check both the change log of cost center and configuration.
- Change log of cost center can be found in tab Changes of the org unit.
- Change log of configuration can be found in following steps:
- Go to Business Configuration work center and Reports view.
- Select report Configuration Change History.
- Go to tab Fine-Tuning Settings.
- Select the activity Settings for Income Statements by Function of Expense and Earned Profit Analysis and select View Change Details. Change details will be exported to excel file.
Either the assignment of cost center XYZ to cost center type ABC or the configuration setup is later than the creation time of journal entry, functional area in journal entry will not show as DEF.
In order to correct the posted journal entry to the incorrect functional area, please follow the steps below.
- Go to the General Ledger work center, and create a new Journal Entry Voucher.
- In the new Journal Entry Voucher, maintain the necessary information, and add a row.
- If there is debit balance on the concerned account, then in this new row, enter the exact same debit amount for this account, the system automatically derives the latest functional area assignment for this line item.
- Add another row to have a credit posting for the same account and amount.
- For the credit line item, check Change Functional Area, and select the old Functional Area assignment of the account in order to balance the previous debit posting with the old functional area assignment. If there is no functional area assignment before, then you need to leave Functional Area blank here.
- Choose Post.
KBA , cost center , expnse report , functional area , SRD-FIN-COR , Cost & Revenue , How To