SAP CO

OVERVIEW
CONTROLLING

Components of Controlling (CO)

Cost / Revenue Element Accounting

Cost Center Accounting

Internal Order and Project Accounting

Product Costing

Profit Center Accounting

Profitability Analysis

Cost / Revenue Element

Accounting

Determines what costs occur in the Organization

Reconciliation Ledger Postings

Cost Planning and comparison with Actual

Functional area wise reporting

Cost / Revenue Element Grouping

Cost Center
Accounting

Determines where costs occur in the Organization

Internal reallocation of cost for the service rendered within the company

Cost planning and comparison with Actual for cost control

Vital steps for other sub categories of Controlling applications (Cost

object controlling)
Cost Center Hierarchy

Internal Order &

Project Accounting

Collection of Cost / Revenue for Sales Order and Internal Orders

Settlement - Allocating to Receiving Cost Objects

Detailed Information System to facilitate Cost Management and

Decision Making.
Planning and Comparison with Actual

Product Costing

Product costing facilitates in calculation of cost of manufacturing for

Finished & Semi Finished Materials.

It used for Decision Making like Make or Buy Decision.

Product costing is a tool for planning costs and establishing prices for
materials. It is used to calculate the costs of goods manufactured and
the costs of goods sold for each product unit

SAP facilitates Product Cost Planning selectively for any product

anytime

Basic Data for Product

Costing
PP / MM Data
------------------Material master
Work centers
BOM
Routing

Master
Data
Transaction
data
Cost estimates
Material Prices
Activity Prices
Overheads

CO Data
------------------Cost centers
Cost elements
Activity types

Product Costing
Process Value
Quantity
Structure

Structure

BOM

Mat. Prices

Routing

Activity Prices
Surcharges

Cost
Estimates

Job Variance

Actual Cost
Collection

Profit Center Accounting

Used to Calculate the Profit of an Area of Responsibility within the

Organization(e.g. Division)

The Areas of Responsibility (Profit Centers) could be Based on Regions,

Functions, or Products.

A Profit Center can also be Viewed as an Investment Center since it is

Possible to Transfer at Period End the Balance Sheet Positions for Assets,
WIP, AR, AP, and Inventory

The Structure of Controlling

Overhead Cost
Controlling

Product
Costing

Profitability
Analysis
PA
Report
Structure

Cost
Centers

Cost
Cost of
of sales
sales

Market
segment,
region,
division ...

PCA
Internal
orders

Controlling

Different Methods
Batch
Mass
Process
Make to order

Controlling

Report
Structure
Profit
center:
GL
accounts

Cost
Cost of
of Period
Period

Data Flow CO
FI
MM

G/L Expenses
Purchase Orders

SD
PP

Billing
Production Cost

AM
HR

Asset Management
Personnel Cost
COControlling
Controlling

CCA
Cost Center
Accounting

PC
Product
Costing

PA
Profitability
Analysis

OPA
Order &
Project A/c

CO Integration
model
FI

CO-CCA

cost
element
COCCA

MM

cost center
HR
FIAA
PM

projects

PP

cost object
FIAA

assets
COPA

SD

COABC

COOPAorders

MM

processes
COPC

stock

market segment

revenue element

CO-PC

CO-PA
CO-PCA

Thank You