Sub modules in SAP Controlling is used to handle company’s internal reporting. Financial transactions from different SAP modules are posted to controlling and reported in a defined structured way for management’s internal reporting. Like any other SAP module, SAP Controlling has 5 major sub modules to manage the processes better.
Cost Center Accounting – Sub module to record cost
One of the SAP sub module for controlling is cost center accounting or CCA.
The management of an organization frequently looks for ways to reduce their overheads. Cost Center Accounting sub module along with Internal Order provides a solution to this problem by managing expenses of a company in a more structured way than any other ERP package.
We can develop different types of report from CCA based on management’s requirements.
Expenses are accumulated in CCA and sent to different cost centers within SAP controlling module. Finally, end result reflects in a product.
Expenses from CCA are sent to product costing and profitability analysis.
Cost Element Accounting – CEL
Cost element accounting (CEL) describes the expenses that occur within an organization.
It classifies cost by the point of occurrence and according to its criteria further classified it as
- revenue, and
Expenses are accumulated with the help of these elements.
Product Costing – SAP Sub module to find product cost
SAP Product Costing sub module is used to estimate cost of a product produced or going to be produced (or a service).
It also compare the target cost with actual and provides extensive tools analysis.
Profitability Analysis – COPA
Management is interested to know company’s profitability by it’s product, segment, or on the basis of region.
SAP COPA which is also known as profitability analysis of controlling module can provide all those information that a management require in a very structured way.
You can customize COPA based on your requirements and define data collection methods to gather different expenses and revenue reports under various segments.
Profit Center Accounting – Sub module to find profitability of units
Profit Center Accounting in SAP controlling reports profit and loss of the organization on the basis of the responsibility (profit center) defined within an organization and also reports balance sheet.
By using this sub module company’s are generating Profit center wise Profit & loss statement and balance sheet for internally managed units within a company code.