sap controlling

SAP Controlling Module (CO)

controlling
SAP (CO) Controlling Module

SAP Controlling (CO) is another significant SAP module delivered by an organization. It supports the coordination, tracking and optimization of all processes within an organisation. SAP CO is the process of recording both input consumption and services provided by an organization.
SAP CO Module includes the management and configuration of baseline data covering cost and profit centers, internal orders, and other cost elements and functional areas.
The main goal of the SAP controlling module is foreseen. It allows you to determine variances by comparing actual data with plan data, allowing you to monitor business flows within your organization. The SAP CO module is another important SAP module for organizations.

The controlling module supports the work of planning, reporting and monitoring the operations of companies.. These are methods to view and organize the costs necessary for financial reporting. The controlling module allows the planning, tracking, carrying out and reporting of costs. Controlling involves the management and configuration of baseline data that covers cost elements, cost centers, profit centers, internal orders and functional area, and so on.

Integration of SAP Controlling Module CO with finance accounting.

The SAP CO and SAP FI modules are separate components of a SAP system. The data flow between these components is carried out regularly.

Data flow from cost streams to controlling from financial accounting. At the same time, the system allocates costs and revenues to different CO account allocation objects, such as cost centers, business processes, projects or orders.

The key sub-modules of the SAP controlling (CO) Module system are listed below −

  • Cost Element Accounting − Cost and revenue accounting gives you an overview of the costs and revenues that happen in an organization. Most value automatically switches between financial accounting and control. The accounting for cost and revenue items calculates only those costs which have no other expense or only one expense in the financial accounting.
  • Cost Center Accounting − Cost center accounting serves control purposes within your organization.
  • Internal Orders − Internal orders in SAP CO are used to collect and monitor orders based on the work done. You can assign budgets to these tasks that are monitored by the system to ensure they are within established budgets.
  • Product Cost Controlling − It calculates the cost of making a product or performing a service. It allows you to calculate the price at which you can sell it on a cost-effective basis.
  • Profitability Analysis − It is used to analyze the profit or loss of an organization based on individual market segments. Profitability Analysis provides a basis for decision making. For example, it is used to determine price, packaging, customer, delivery channel and market segment.
  • Profitability Analysis − It is used to analyze the profit or loss of an organization based on individual market segments. Profitability Analysis provides a basis for decision making. For example, it is used to determine price, packaging, customer, delivery channel and market segment.
  • Profit Center Accounting − It is used to assess the profits or losses of individual and self-employed sectors within an organization. Those sectors are accountable for their costs and revenues.
  • Activity-Based-Accounting −It is used to analyze interdepartmental operational processes.

SAP Controlling (CO) – Internal Orders

The internal order of SAP CO monitors the cost portions and in some cases also monitors organizational revenues. You can create an internal order to monitor the costs of time-bound work or the costs of producing activities. Internal commands may also be used for long-term cost monitoring.

Capital costs for capital assets are monitored via investment orders.The accrual accounting calculation related to the period between expenses in the FI and costs based on costs charged in the cost accounting is monitored through accrual accounting orders.

SAP Controlling (CO) Configuration Video

SAP Controlling Configuration Video

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