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Controlling Area

An organizational unit within a company, used to represent a closed system for cost accounting purposes. The University will utilize one controlling area (UK00) that will include a single company code (UK00).


Cost Center

An organizational unit within a controlling area that represents a clearly delimited location where revenue and costs occur. Organizational divisions can be based on functional requirements, allocation criteria, physical location and/or responsibility for costs. Cost centers will be used for certain current SL accounts. They will replace FRS ledgers 1, 2, 3 (except 3-5XXXX, 3-6XXXX), 5, 8 and 9.

Cost Center Group

A hierarchical group of cost centers defined and organized according to selected criteria. (also see Funds Center Group). It can be any group of cost centers used for reporting aggregated data.

Cost Element

A cost element classifies the organization’s expenses within a cost object (Examples: cost center, internal order, WBS). A cost element corresponds to a commitment item in FM and the GL account in FI.

Cost Object

A generic term referring to both cost centers and internal orders.

Cost Sharing

An agreement by the University to support the costs of certain sponsored projects through University funds, third party sponsors or volunteer time. Cost sharing is normally broken into three categories:
1) Reportable/Mandatory 2) Committed, and 3) Non-Reportable/Voluntary. SAP will allow cost sharing to be budgeted and recorded along with the grant in Grants Management (GM) by identifying the funding sources in the grant master data.

Cost Sharing (Committed)

Cost sharing that was included in the proposal document that resulted in an award to the institution. This cost sharing was not required by the sponsor, but was offered and therefore becomes a commitment of the award.

Cost Sharing (Non-reportable/Voluntary)

Cost sharing that was neither required by the sponsor, nor included in the proposal. These are costs that were unanticipated by either party. For example, an investigator may have recorded that the planned effort would be 10 percent of the academic year effort. In reality, the investigator spent 12 percent of the academic year effort working on the grant. The extra 2 percent would be considered non-reportable/voluntary cost sharing. Currently, this type of cost sharing is only reflected in FES.

Cost Sharing (Reportable/Mandatory)

Costs required to be reported to the sponsor as detailed in the request for proposal, sponsor guidelines or award document.

Customer Aging

An aging schedule of accounts receivable invoices is used to review customer accounts for delayed payments. (Also see Dunning)

Customer (A/R and S/D)

A business partner from whom receivables are due for, among other things, goods delivered, services performed and rights transferred, and/or a business relationship exists, involving the issue of goods or services. Used for grant sponsors, employees for direct benefit billing and county appropriations.