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1. Overview of the CO ModuleSAP2School End User Course

SAP2School.com© 2008

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Overview of ControllingUnit Objectives

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

E!"lain the difference between #nternal and

E!ternal Accountin$

%ist the com"onents of C& and e!"lain their "ur"ose

E!"lain the basic inte$ration "oints between the com"onents of C&

E!"lain the basic inte$ration "oints between C& and other SAP modules

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P

rofitC

enterAcco

untin

g

P

rofitCenterAc

co

untin

g

External vs. Internal Accounting:

tandards !ersus "lexibilit#

CO

FI

Internal AccountingCost Accounting

Managerial AccountingManagement Accounting

Different ValuationsFlexibility

Tax 

audit 

External AccountingFinancial Statements Legal Reuirements

Stan!ar!s

Controlling

EC"PCA

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Co$%onents of the CO $odule

&'erhead Cost Controllin$

Cost and (e'enue Element Accountin$

Cost Center Accountin$

&'erhead &rder Accountin$

 Acti'ity)*ased Costin$

Product Cost Controllin$ Product Cost Plannin$

Cost &b+ect Controllin$

 Actual Costin$-aterial %ed$er 

Profitability Analysis

Profit Center Accountin$

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&ur%ose of Controlling Co$%onents

O#er$ea! Cost ControllingO#er$ea! Cost Controlling

Pro!uct Cost ControllingPro!uct Cost Controlling

Profitability AnalysisProfitability Analysis

Profit CenterProfit CenterAccountingAccounting

Or!er an!Pro%ect

Acc&

Acti#ity'ase!

Costing

CostCenter 

Acc&

CostOb%ect

ProfitabilitySegment

Profit

Center 

  'usiness  Process

 

'usiness

  Process

PROFI(PROFI(

CE)(ERCE)(ER

**

PROFI(CE)(ER

+

PROFI(CE)(ER

,

PROFI(PROFI(

CE)(ERCE)(ER

--

PROFI(CE)(ER

.

Cost Center 

Cost Center Internal Or!er/

Pro%ect

Internal Or!er/Pro%ect

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O#er$ea! Cost ControllingO#er$ea! Cost Controlling

Profitability AnalysisProfitability Analysis

Overhead Cost Controlling

ProfitC

enterAc

coun

ting

ProfitC

enterAccoun

ting

EC"EC"PCAPCA

COCO

CELCEL

COCO

OMOM

COCO

PAPACOCO

PCPC

Pro!uctPro!uct

CostCost

ControllingControllingO#er$ea!

Or!er 

  ProcessProcess 

ProcessProcess

CostCenter 

Acti#ity

Cost ElementCost Element

AccountingAccountingPrimary Cost

ElementSecon!ary Cost

ElementRe#enueElement

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&roduct Cost Controlling 

R

0or1 in 2rocess

Scra2Variances

Settlement

Planne!costs3

Actualcosts

'OM RoutingOr!er 

-aterial   4

%abor  4&'erhead 4Process 4(otal &&&

Process

Material Le!ger 

Material mo#ementsPrices for MaterialsPrices for Acti#ities

Prices for ProcessesO#er$ea!

Cost estimate5Stan!ar! costs

Material Settlement5Actual Costs

Pro!uct Cost Planning

Value Structure

6uantity Structure5PP Master Data

Final CostingPerio!"En! Closing

Preliminary Costing3Simultaneous Costing

Cost Ob%ect Controlling

Value Structure

Actual Costing /Material Le!ger 

6uantity Structure5Material mo#ements

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&rofitabilit# Accounting

Profitability Analysis 7CO"PA8

Profit Center Accounting 7EC"PCA8

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&rofitabilit# Anal#sis '

An External !iew

Com2any Mar1et

'illing DocumentSD

Profitability AnalysisCO"PA

9ey Sales Figures5Re#enues3 Cost of Sales&&&

Mar1et Segments5Customer3 Pro!uct3Pro!uct :rou23Distribution C$annel

CO"CO"PAPA

SDSD

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

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&rofit Center Accounting '

An Internal !iew

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

areas of responsibility within the organization.areas of responsibility within the organization.

Com2anyCom2any

   ;

   t   i   l   i   t  y   C  o  s   t  s

   ;

   t   i   l   i   t  y   C  o  s   t  s

 D i   r  e

 c t   L  a b  o r 

 D i   r  e

 c t   L  a b  o r 

PrCtr *PrCtr *

PrCtr -PrCtr -

PrCtr +

PrCtr ,PrCtr ,

PrCtr .PrCtr .

  goo!s/ser#icesgoo!s/ser#ices

EC"EC"PCAPCA

'illing DocumentSD

MMMCom"any

MMMCom"any

R      e    

 #     e    

n     u     e    

Re #enue

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O#er$ea! CostO#er$ea! CostControllingControlling

Pro!uct CostPro!uct Cost

ControllingControlling

ProfitCenter

PrCtr PrCtr  **

PrCtr PrCtr  --

PrCtr +

PrCtr PrCtr  ,,

PrCtr PrCtr  ..ProfitabilityProfitability

AnalysisAnalysis

   C  o  s   t   <   R  e  #  e  n  u  e   E   l  e  m  e  n   t

   A  c  c  o  u  n   t   i  n  g

Profitabilitysegments

Cost Center Acc&

Acti#ity'ase!

Costing

CostOb%ect

CO

O#er$ea!

Or!er Acc&

Profit Center Profit Center AccountingAccounting

Integration within the CO $odule

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Integration with other Modules

O#er$ea! Cost Controlling

Pro!uct CostControlling

Cost Center Acc&

O#er$ea!Or!er 

Accounting

CostOb%ect

CO

Profitabilitysegments

Acti#ity'ase!

Costing

ProfitabilityAnalysis

FI AA

FI MM PP

=R

=R

FI SD

SD

SD

MM

PP

PP

ProfitCenter Acc&

ProfitCenter 

PrCtr PrCtr  **

PrCtr PrCtr  --

PrCtr +

PrCtr PrCtr  ,,

PrCtr PrCtr  ..

   C  o  s   t   <   R  e  #

  e  n  u  e   E   l  e  m  e  n   t

   A  c  c  o  u  n   t   i  n  g

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