SAP CO Profitability Analysis Module

SAP Profitability Analysis:

Profitability analysis is useful for management decisions making and reporting purpose to know profitability as per product wise, sales organization wise and other key criteria. Profitability analysis gives ability to analyze your profitability on many different segments and characteristics.

Operating concern:

It is highest hierarchy in COPA. All controlling areas can be assigned to operating concern. The operating concern may be used with multiple controlling areas and chart of accounts.

Costing based profitability analysis:

This type of profitability analysis is primarily designed to let you analyze profit quickly for the purpose of sales management. Its main feature is the use of value fields, which represent cost and revenue element groups, and automatic valuation of data using costing methods. The advantage of this method is that data is always current and therefore provides an effective instrument for controlling sales.

Account based profitability analysis:

This type of profitability analysis enables you to reconcile cost and financial accounting at any time using accounts. In contrast to costing based profitability analysis, this type used cost and revenue elements, which gives you a unified structure for all of accounting. The system posts all revenues and costs to both financial accounting and profitability analysis at the same time and using the same value approach.

Key Components in SAP CO-PA

The key components in SAP CO-PA are as follows −

Actual Posting 

 It allows you to transfer sales orders and billing documents from the Sales and Distribution application component to CO-PA in real time. You can also transfer costs from cost centers, orders and projects, as well as costs and revenues from direct postings or settle costs from CO to profitability segment.

Information System 

It allows you to analyze existing data from a profitability standpoint using drill down function in the reporting tool. It allows you to navigate through a multidimensional data cube using different functions like drill down or switching hierarchies. The system displays data in either value fields or accounts, depending on the currently active type of Profitability Analysis and the type to which the report structure is assigned.

Planning 

 This allows you to create a sales and profit plan. Whereas both types of Profitability Analysis can receive actual data in parallel, there is no common source of planning data. Consequently, you always plan either in accounts (account-based CO-PA) or in value fields (costing-based CO-PA). The manual planning function allows you to define planning screens for your organization. With this you can display reference data in planning, calculate formulas, create forecasts, and more. You can perform planning at any level of detail.

Example

You can plan at a higher level, and have this data distributed top-down automatically. In automatic planning, you can copy and reevaluate actual or planning data for a large number of profitability segments at once.
For SAP ERP Training or SAP Profitability Analysis Module Training please visit the links.  

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SAP CO Organizational Structure

SAP CO  Organizational Structure

One of many essential business functions in an organization that are often divided to maximize efficiency. The division of labor creates separate units for marketing, sales, accounting, information technology, and so on. The method for dividing tasks up within a company may be distributed between project teams, groups, or departments.

These organizational units are associated with each other to form the foundation of the SAP CO organizational structure. Let’s see how each of these units contribute to the optimization of internal reporting and managerial accounting:

Client: 

A client is a self-contained instance which comprises its own set of programs, tables, master data and transaction records.

Operating Concern:

 The operating concern is the highest organizational unit eligible for profitability analysis (COPA). The prime aim of COPA is to provide profit and loss information to support decision making, planning and controlling operations within an organization. The segments are usually made up of a combination of characteristics regarding the customer, product or sales channels of the organization which can be analyzed in a multi-dimensional information cube. The operating concern is required to facilitate additional reporting dimensions including customer group, product and country.

Controlling Area: 

The controlling area refers to the highest level of an organization at which costs and revenues are recorded. Each controlling area can have one or more company codes assigned to it.

Company Code:

 A company code represents a legal entity in SAP. A company code is set up for every legal entity which records transactions and maintains its financial books (i.e. sub-ledgers and GL) in SAP. These financial books enable the generation a complete set of financial statements, including profit and loss, balance sheet and cash flow.

Plant: 

This is one of the indispensable units in the organizational structure for a company. It represents a facility where goods and services are produced according to production, maintenance, procurement and material planning areas of the business. A company code can posses the assignment of one or more plant. Generally, plants are defined within the enterprise structure in the Materials Management module.

Purchase Organization: 

This organizational unit coordinates the purchasing process for the business. Each company code can have one or more purchase organizations assigned.

Sales Organization:

A sales organization is defined within the Sales & Distribution module. Multiple sales organizations can be assigned to one company code depending on the business requirement.   

                                                                                                                                                              For SAP ERP Training or SAP CO  Organizational Structure  Module Training please visit the links.

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SAP CO-CCA

Cost Center Accounting / Profit Center Accounting

Sap cost center accounting is the important component of controling module as it controls the costs that are incurred inside an oranization.cost center means the place where the costs are occurred.sap cca is used to track the costs as per organization departments wise.During creation of cost elements you need to specify cost center cateory whether it is a production department or service department or sales department.

The main objective of cost center accounting is to plan,analysis costs and prepare the variance analysis report.

When you create sap cost center accounting ,you need to specify cost center standard hierarchy and each cost center is assigned to a cost center hierarchy and profit center.

To view cost centers data in sap sstem at a time you need to create cost center group and assign a respective cost centers .

During month end activities we allocate service department  coasts to production departments.

Important Component of CO

SAP cost center accounting configuration.

Cost center accounintg can be divided in to three kaster records

• Cost center configuration
• Activity type configuration
• Statistical key figure configuration 

For SAP ERP Training or SAP CO-CCA Module Training please visit the links.

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Sap Co course Outline

Sap Co Course Outline 

Introduction

SAP CO module is another important SAP modules offered to enterprises. The controlling module supports in the process works of planning, reporting and monitoring operations of businesses. It involves methods to view and organize costs that are required for financial reporting. Controlling module enables one to plan, track, perform and report about costs. Controlling includes managing and configuring master data that covers cost elements, cost centres, profit centres, internal orders, and functional area and so on.

SAP Overview

• SAP Navigation
• Management empowered by mySAP ERP
• Management empowered by my SAP ERP Financials

Cost Center Accounting / Profit Center Accounting

• Organizational units
• Master data cost elements, cost centers, activity types and statistical key figures
• Cross-mater data functions
• Recording primary postings
• Account assignment help
• Adjustment postings
• Direct activity allocation
• Accrual calculation
• Periodic reposting
• Distribution
• Assessment
• Reconciliation ledger
• Introduction to planning in Management Accounting
• Planning methods in cost center planning
• Integrated plan allocation cycle
• Profit center master data
• Profit center assignment

Overhead Cost Order

• Real and statistical orders
• Master data maintenance
• Status management for overhead cost orders
• Transaction-based posting within and outside Management Accounting
• Commitments management
• Overhead rates on overhead cost orders
• Billing for overhead cost orders
• Budgeting and availability control

Material Cost Estimate Without Quantity Structure

• Material master– fields relevant to costing
• Single-step unit costing
• Multiple-step unit costing
• Base object costing and simulation costing

Material Cost Estimate With Quantity Structure

• Costing variant
• Cost component split
• Overhead costing sheet
• BOM
• Task list
• BOM and task list determination
• Price update
• Create costing run
• Analyses and error handling

Refined Costing Functions

• Transfer control
• Additive costs

Cost Object Accounting: Make-to-Stock Production with Periodic Controlling

• Product cost collector
• Decoupling scenarios
• Preliminary costing on cost object
• Simultaneous costing on cost object
• Period-end closing for periodic Controlling
• Cost Object Controlling: Make-to-Stock Production with Order Controlling
• Cost objects with order view
• Preliminary costing of cost objects
• Simultaneous costing
• Period-end closing with order Controlling

Cost Object Controlling: Sales-Order-Related Production

• Sales order as cost object
• Preliminary costing of sales order
• Simultaneous costing of sales order
• Delivery and billing documents
• Period-end closed with product cost by sales order

Profitability Analysis

• Structures of Profitability Analysis
• Characteristics and value fields
• Transaction data tables
• Characteristic derivation
• Valuation
• Transfer billing data
• Assessment of cost center costs
• Billing for orders

For SAP ERP Training or SAP CO Module Training please visit the links.

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SAP Controlling (CO)

SAP Controlling (CO) 

SAP CO module is another important SAP modules offered to enterprises. The controlling module supports in the process works of planning, reporting and monitoring operations of businesses. It involves methods to view and organize costs that are required for financial reporting. Controlling module enables one to plan, track, perform and report about costs. Controllingincludes managing and configuring master data that covers cost elements, cost centers, profit centers, internal orders, and functional area and so on.

SAP CO – Overview

SAP Controlling (CO) is another important SAP module offered to an organization. It supports coordination, monitoring, and optimization of all the processes in an organization. SAP CO involves recording both the consumption of production factors and the services provided by an organization.

SAP CO includes managing and configuring master data that covers cost and profit canters, internal orders, and other cost elements and functional areas.

The main purpose of SAP controlling module is planning. It enables you to determine variances by comparing actual data with plan data and thus enables you to control business flows in your organization.

SAP CO Tutorial – Controlling Functional Module

SAP CO (Controlling) is on the functional module and it provides you with information for management decision-making. It facilitates coordination, monitoring and optimization of all processes in an organization. This involves recording both the consumption of production factors and the services provided by an organization.

Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. The data flow between the two components takes place on a regular basis. Some of the main components of SAP CO module are

•           Cost Element Accounting

•           Cost Centre Accounting

•           Internal Orders

•           Activity-Based Costing (ABC)

•           Product Cost Controlling

•           Profitability Analysis

•           Profit Center Accounting.

Cost Element Accounting: 

Cost elements are used to update the SAP CO module records. Different types of cost elements are primary cost elements and secondary cost elements.

Cost Center Accounting:

It is used to define where the costs are incurred within the organization as per department wise. For e.g. Product departments, service departments, etc.

Product cost accounting:

It is used to calculate the cost of goods manufactured for a product. For e.g. work in process and finished goods.

Internal Orders:

It is used to view cost for specific tasks, for e.g. vehicle expenses, production order costs, etc. orders are two types i.e. real orders and statically orders.

Profitability analysis:

It is used to view analysis profitability of an organization, for e. by customer wise, sales organization wise, by plant wise, etc.

 Organizational Structure

SAP controlling sub modules Overview 

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