Sub modules in SAP Controlling are used to handle company’s internal reporting. Financial transactions from different modules are posted to the controlling module of SAP and reported in a defined structured way for management’s internal reporting.
Like any other module, SAP Controlling has 5 major sub modules to manage the processes better.
Cost Center Accounting – SAP Sub module to record cost
One of the SAP sub modules in controlling is cost center accounting (CCA).
The management of an organization frequently looks for ways to reduce their overheads. The 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 reports from Cost Center Accounting (CCA) based on management’s requirements.
Expenses are accumulated in Cost Center Accounting (CCA) and sent to different cost centers within the SAP controlling module. Finally, the end result reflects in a product.
Expenses from Cost Center Accounting (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
- primary,
- revenue, and
- secondary.
Expenses are accumulated with the help of these elements.
Product Costing – SAP Sub module to find product cost
Product Costing sub module is used to estimate the cost of a product produced or going to be produced (or a service).
It also compares the target cost with actual and provides extensive tools analysis.
Profitability Analysis – COPA
Management is interested to know the company’s profitability by it’s product, segment, or on the basis of region.
COPA which is also known as profitability analysis of SAP controlling modules can provide all that information a management requires for decision making 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 – SAP 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 statements and balance sheets for internally managed units within a company code.
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