SAP Controlling and COST center Accounting (CO-CCA


CO component of SAP system offers a broad selection of functional tools that can be used to provide management accounting information that are useful for management decision making.Overview of SAP Controlling Module The Controlling (CO) component of SAP R/3 system contains all accounting functions necessary for effective controlling for businesses. Every organization normally have an external and internal accounting viewpoints. The external viewpoints is represented by Financial Accounting (FI) component and Controlling (CO) represents the internal accounting viewpoint. . Do remember that Financial Accounting and Controlling are independent components of the SAP system. The data flow from the CO component to FI component takes on a regular basis.

but also provide data for other application components in Controlling. costs are assigned to the sub areas of the organization where they have the most influence. v . v By creating and assigning cost elements to cost centers. you not only make cost controlling possible. v To achieve this aim. such as Cost Object Controlling. v You can also use a variety of allocation methods for allocating the collected costs of the given cost center/s to other controlling objects.Cost Center Accounting determines where costs are incurred in the organization.

SAP Controlling and Cost Center Accounting Concept Concept of Over head cost controlling Over head cost management CO – CCA Master Data Concept of Cost element and GL Cost Center Cost Center Activity Type Statistical Key Figure Internal Order Actual Expense / Revenue Posting Period end closing Reporting .

You can do an evaluation on each profit center. you may treat each of your product group as profit center in the system. Profitability Analysis (CO-PA) The profits and contribution margins for market segment of a company can be analyed using Profitability Analysis application component of SAP. The objective of COPA is to support sales. and corporate wide planning and decision making. profit and loss and balance sheet. . product management. For instance. using an external view from a market oriented perspective.Profit Center Accounting (EC-PCA) A profit center is a management-oriented organizational unit used for internal controlling. This enables you to monitor the revenues and costs attributable to each product group.

Controlling Area: Organization unit that represents a closed system Used for accounting purposes. Activity Based Accounting. It facilitates coordination.Controlling: Controlling provides you with information for management decision-making. . Features of Controlling: Cost Center Accounting. Product Costing. & Profitability Analysis. monitoring and optimization of all process in an organization. Internal Orders.

The system only post reconciliation posting across company codes without taxes. Maintain no. ranges for controlling documents KANK  Maintain versions in . then you need to note the following.OKKP . 2. 4. Consistent Chart of a/c’s (Treat each cost element in all company codes in same way). If you assign more than one company code to one controlling area. The Operative fiscal year variants in the company codes must match the fiscal year variant in controlling area. Maintain controlling area . 1. which means that it cannot automatically create invoice. 7.OKEQ . 3.You can assign one or more company codes to one controlling area. 6. 5. You should execute period end closing in controlling for all company codes at same time.

material and production overheads. These are used in internal cost allocation...are divisions that add to the cost of the organization. to allow costs to flow.Cost centers .. these do not flow to FI. . Primary cost elements are like material costs.. Marketing and Customer service Cost Element .. but only indirectly add to the profit of the company. overhead calculation. Typical examples include Research and Development. energy costs.. they can be created and administered in only CO.Basically. settlement transactions.. personnel costs.. cost element are carriers of costs. Secondary cost elements are like production costs. where a corresponding GL account exists in FI.


Controlling is broken down into the following sub modules: Overhead Cost Controlling vProduct Cost Controlling vSales and Profitability Analysis vActivity Based Costing v .

Controlling in sap consists of: Controlling area Organizational unit for cost accounting Organizational unit for cost control Organizational unit for internal profit analysis Cost center Profit center .

SAP R/3 Organizational Elements for Financial Reporting and Analysis .

It is constructed along the lines set by management and must be flexible .Internal accounting is purely for internal use and serves to control and manage the organization.

to the final report. a document records a business transaction. Documents are accessible in real time and are stored centrally.The Audit Trail Every transaction in the system is represented by a document. The system provides an audit trail of the reporting information through the drill down capabilities. Data resulting from transactions posted to the system can be viewed at every level of detail from the original document. .

are used to control the cost efficiency of individual areas of an organization. At the same time. It facilitates coordination.  Controlling provides you with information for management decisionmaking. as well as the entire organization. contribution margin accounting. the system assigns the costs and revenues to different CO account assignment objects. projects or orders.All data relevant to cost. business processes. . Income statements such as. As well as documenting actual events. These variance calculations enable you to control business flows. monitoring and optimization of all processes in an organization. such as cost centers. flows automatically to Controlling from Financial Accounting. The relevant accounts in Financial Accounting are managed in Controlling as cost elements or revenue elements. You can determine variances by comparing actual data with plan data. This involves recording both the consumption of production factors and the services provided by an organization. the main task of controlling is planning.

ranges for controlling Area                              Creation of Primary cost element for controlling area               Make Default Settings                                               Transaction Codes Used in Sap Controlling OKKP KANK KAO1 OKB2 OKEQ OKE5 KA03 KE51 KS01 KSH1 KAH1 KSB1 KE5Z  Maintain Plan/actual Versions                                     Maintain Controlling Area settings                                 To view the cost elements created                               Creation of Profit Center Creation of cost center                                             Creation of cost center groups                                   Creation of cost element group                                  To view the cost center line item report                       Line item report for Profit Center                                  Table to look up cost centers To view all controlling reports                               CSKS   GR55 .Maintain Controlling Area                                            Maintain No.

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