1.

Overview of the CO Module

SAP2School End User Course

SAP2School.com
2008

Overview of Controlling
Unit Objectives

At the conclusion of this unit, you will be able to:

Explain the difference between Internal and

External Accounting

List the components of CO and explain their purpose

Explain the basic integration points between the components of CO

Explain the basic integration points between CO and other SAP modules

External vs. Internal Accounting:

Standards Versus Flexibility

CO

Internal Accounting
Cost Accounting
Managerial Accounting
Management Accounting
Different Valuations
Flexibility

Tax
audit

External Accounting
Financial Statements
Legal Requirements
Standards

Profit Center Accounting

FI

Controlling

ECPCA

Components of the CO module

Overhead Cost Controlling:

Cost and Revenue Element Accounting

Cost Center Accounting

Overhead Order Accounting

Activity-Based Costing

Product Cost Controlling:

Product Cost Planning

Cost Object Controlling

Actual Costing/Material Ledger

Profitability Analysis
Profit Center Accounting

Purpose of Controlling Components

Overhead Cost Controlling
Order and
Project
Acc.

Cost
Center
Acc.

InternalOrder/
Order/
Internal
Project
Project

Activity
Based
Costing

Business
Business
Process
Process

Product Cost Controlling

Cost
Object

Profit Center
Accounting
CostCenter
Center
Cost

PROFIT
CENTER
1

PROFIT
CENTER
4

PROFIT
CENTER
2
PROFIT
CENTER
5

Profit
Center

Profitability Analysis
Profitability
Segment

PROFIT
CENTER
3

Overhead Cost Controlling

CO
PA
CO
OM

Profitability Analysis

Cost Element
Accounting

Primary Cost
Element

Product
Cost
Controlling

Activity

Secondary Cost
Element

Revenue
Element

Profit Center Accounting

Overhead
Order

Process
Process

CO
CEL

CO
PC

Overhead Cost Controlling

Cost
Center

ECPCA

Product Cost Controlling

Product Cost Planning

Cost Object Controlling

Actual Costing /
Material Ledger

Quantity Structure:
PP Master Data

Preliminary Costing,
Simultaneous Costing

Quantity Structure:
Material movements

BOM

Routing

Planned
costs,
Actual
costs
Value Structure
Prices for Materials
Prices for Activities
Prices for Processes
Overhead

Order
Material
$
Labor
$
Overhead $
Process
$
Total
...

Final Costing
Period-End Closing
Work in process
Scrap
Variances

Process

Value Structure
Material movements
Material Ledger

Settlement
Cost estimate:
Standard costs

Material Settlement:
Actual Costs

Profitability Accounting

Profitability Analysis (CO-PA)

Profit Center Accounting (EC-PCA)

Profitability Analysis An External View

The goal of CO-PA is to determine the profitability of market segments:

Company

Market

Key Sales Figures:

Revenues, Cost of Sales...

COPA

SD

Billing Document
SD

Market Segments:
Customer, Product,
Product Group,
Distribution Channel

Profitability Analysis
CO-PA

Profit Center Accounting An Internal View

The goal of EC-PCA is to measure the profitability of

areas of responsibility within the organization.
Direct Labor

goods/services

PrCtr 1
M

ECPCA

Revenue

Company

Billing Document
SD

Company

PrCtr 4

PrCtr 2

Company

Utility Costs

Revenue

PrCtr 3

PrCtr 5

Cost & Revenue Element Accounting

Integration within the CO module

Profit Center
Accounting

Overhead Cost
Controlling
Cost Center Acc.
Activity
Based
Costing

Overhead
Order Acc.

Product Cost
Controlling

Cost
Object
CO
PrCtr 1 PrCtr 4
PrCtr 2

Profitability
Analysis

PrCtr 3

PrCtr 5

Profit
Center
Profitability
segments

Integration with other Modules

FI

AA

HR MM
SD
FI

MM

SD

PP
PP

HR

FI

SD

PP

Cost & Revenue Element Accounting

Overhead Cost Controlling

Overhead
Order
Accounting

Cost Center Acc.

Activity
Based
Costing

Product Cost
Controlling

Profit
Center
Acc.

PrCtr 1 PrCtr 4
PrCtr 2

Cost
Object
CO

Profitability
Analysis
Profitability
segments

PrCtr 3 PrCtr 5

Profit
Center

Task List
Task List

Month End Closing

Doc Owner
Doc Owner

Month M T W Th F
Month M T W Th F
NOV 1999

01 02 03 04

Day -2

07 08 09 10

Trial Balance Report Run

13 14 15 16

Reminder to CSRs, Adjustments

due today

19 20 21 22

SD

MM

Day -1
Run WIP Calculation
Settle Production Orders
Run Internal Order Settlements

Daily overview 11.06.1999

Time
Time

8:00

Day -0
Roll Material Master Ledger

Perform Special Purpose Ledger Roll up

Run SPL Extract for Hyperion Consolidation
Reminder to notify Consolidations Group
Extract performed

FI
AA

9:00

Run CCA Assessments

Day 1

Description
Description

8:30

Trial Balance Report Run

Open new fiscal period in FI

PP

9:30
10:00
10:30

HR

Cost & Revenue Element Accounting

Integration of Month End Closing

Overhead Cost Controlling

Overhead
Order
Accounting

Cost Center Acc.

Activity
Based
Costing

Product Cost
Controlling

Profit
Center
Acc.

PrCtr1PrCtr4
PrCtr2

Cost
Object
CO

Profitability
Analysis
Profitability
Segments

PrCtr3PrCtr5

Profit
Center