Components provide excellent functionality for a wide range of control purposes.
Manage and Configure
SAP Controlling (CO) facilitates the coordination, monitoring, and optimization of all activities inside an organisation. SAP CO entails tracking both the consumption of production elements and the services offered by a company.
SAP CO comprises master data management and configuration for cost and profit centers, internal orders, and other cost aspects and functional areas.
The SAP managing module’s primary function is planning. It allows you to regulate business flows in your company by determining variations by comparing actual data to plan data.
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Frequently Asked Questions
1. In Sap, what does 'controlling (co)' mean?
SAP refers to management accounting as ‘Controlling,’ and the module is abbreviated as ‘CO.’ As a result, the CO module is largely focused on controlling and reporting cost/revenue, and it is mostly utilized in ‘internal’ decision-making. This module, like any other, has configuration setup and application functionality.
2. What Are the Crucial 'Organizational Elements Of Co'?
Operating Problem (the top-most reporting level for profitability analysis and sales and marketing controlling).
Controlling Area (the main structure for “controlling,” which organises internal accounting activities).
Price Points (lower-most organisational units where costs are incurred and transferred).
3. What Does "Controlling Area" Mean? What is its connection to a company code?
The primary organizational structure in “controlling” (CO), which is employed in cost accounting, is referred to as a “controlling area.” Similar to a Company Code, the controlling area functions as a standalone cost accounting entity for the purposes of internal reporting. To make sure that the relevant transactions, posted in FI, are moved to controlling for cost accounting processing, the controlling area is allocated to one or more Company Codes.
4. Why Is "Cost Element Accounting" Necessary?
You can categorize expenses and revenues posted to CO with the aid of Cost Element Accounting (CO-OM-CEL). You may also use it to compare and contrast the expenses of FI and CO. The structure for assigning CO data in the form of cost/revenue carriers, also known as cost elements or revenue elements, is provided by CO-OM-CEL.