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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