Submodules in Controlling

SAP Controlling submodule contains several submodules built within the SAP CO module. Following are some of the important submodules,

Controlling-Sub Modules

Overhead Cost Controlling – Overhead Cost Controlling will enable the user to plan, allocate, control, and monitor overhead costs. Tracks and examines the causes of costs in the functional areas of an enterprise   e.g. Cost center, Order etc

Product cost controlling – Product cost controlling can be used for calculating and evaluating the cost of goods manufactured for a product.

Profit Center Accounting – Profit Center Accounting can be used to calculate the profit of an area of responsibility within the organization (e.g. branch). It calculates the cost for manufacture a product, or to provide a service. It allows you to calculate the price at which you can profitably market it.

Cost center Accounting – Cost Center Accounting can be used for controlling purposes within the organization. The costs incurred by the organization should be transparent. It is used to evaluate profit or loss of individual, independent areas within an organization. These areas are responsible for their costs and revenues and enable the user to check the profitability of individual functional areas and provide decision-making data for management. This requires that all costs be assigned according to their source. However, the source-related assignment is especially difficult for overhead costs. Cost Center Accounting lets you analyze the overhead costs according to where they were incurred within the organization.

Cost Element Accounting − Cost and Revenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. Most of the values are moved automatically from Financial Accounting to Controlling. Cost and Revenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting.

Activity-Based-Accounting − It is used to analyze cross-departmental business processes.

Internal Orders − Internal orders in SAP CO are used to collect and control according to the job that incurred them. You can assign budgets for these jobs that are system monitored to ensure that they are not exceeded from the set budgets.

Profitability Analysis − It is used to analyze the profit or loss of an organization by individual market segments. Profitability Analysis provides a basis for decision making. For example, it is used to determine price, conditioning, customer, distribution channel, and market segment.