SAP ERP Financials and FICO Handbook

80 CHAPTER 1 INTERVIEW QUESTIONS AND ANSWERS
184. Describe how cost and revenue flow to PCA.
Depending upon business requirements, profit centers are mapped to various
business objects in the following ways:
■ Through material master—In this case, any transaction affecting material will
update the profit center.
■ Through cost center—Assignment of profit center to cost center master.
■ Through IOs—Like Cost center, you can assign profit center to internal order
master.
■ Through transaction code OKB9—In this case, you are mapping the profit center
with a combination of company code, cost element, and profit center.
1.12 CO-IO
185. What is IO?
IO is a cost object that collects costs for the management information system and,
in some instances, revenues for an organization. IOs can be used to:
■ Monitor the costs of short-term measures
■ Monitor the costs and revenues related to a specific service
■ Monitor ongoing costs
IOs are divided according to function into the following categories:
■ Overhead Orders— Overhead orders monitor subareas of indirect costs arising
from short-term measures. They can also be used for detailed monitoring of
ongoing plans and actual costs independent of organizational cost center structures
and business processes.
■ Capital Investment Orders— Capital investment orders monitor investment costs,
which can be capitalized and settled to fixed assets.
■ Accrual Orders— Accrual orders monitor period-based accrual between expenses
posted in FI and accrual costs in CO.
■ Orders with Revenues —Orders with revenues monitor the costs and revenues
arising from activities for partners outside the organizational boundaries, or
from activities not belonging to the core business of the organization.