Category Archives: Controlling

SAP User Guide for CO Module.

Cost Center for Controlling the Overhead Cost

Business Organizations are modeled for incurring costs, thus creating value addition to produce products or services or both.

Types of Costs

Costs are of two types

  • Direct costs, Direct Material & Direct Labour
  • Overheads, all the remaining costs

Controlling overheads is often a challenge. Cost Center is one of the tools designed to plan and control the overheads.

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SAP Cost Element Basics, You Should Know!

Talking about SAP Controlling one of the basics that you should know is Cost Element (CE).

Accounting seeks to record, classify and present business transactions that satisfy external reporting such as Government and internal reporting for management decision making.

External Reporting and Internal Reporting

SAP Financial Accounting (FI) is for external financial reporting and Controlling (CO) for internal management reporting. Organizations’ transactions are captured in Financial Accounting , Asset Accounting, Materials Management, Payroll Accounting and Sales and Distribution and the same cost and revenue information flows to Controlling through Cost and Revenue Elements. Thus Cost and Revenue Elements act as cost and revenue classification and provide information on cost flows within the internal reporting SAP Controlling component.

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Time Saving Tip, SAP Controlling Reports

Time Saving Tip – Report Parameters by Default

An interesting feature that can automate and reduce your data entry otherwise called Parameter selections is possible. You need to tell the system only once what your choices are. These choices will be entered as default values whenever you run the report. No worries, in case you need a different selection. You can always change these values as and when you need a different report.

Cost Element Accounting

Type rpa0 in Command Field and press ‘Enter’.

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