INTRODUCTION TO CONTROLLING MODULE(CO)

Controlling Module is one of the core module of SAP. The FI module deals with external reporting whereas CO module deals with internal reporting. CO module is all about managing money like which department is spending much? How the resources are used? controls unnecessary expenses etc.

CO MODULE INTEGRATION

CO module has integration with many other module as CO does not work alone.

In FI when an expense or revenue is posted it updates CO

In MM when material movement happens it updates CO

In PP when production order happens it updates CO

In SD when sales happens it updates CO

Key Components of SAP CO

• Cost Centers

  It represents departments or units where the cost occurs(e.g. finance,hr etc.)

  
  

• Cost Elements

  It is the type of cost (e.g. salary, rent etc.)

  
  

• Internal Orders

  It track the cost of project or activities of company

  
  

• Profit Centers

  It measures the performance area wise or segment wise

  
  

• Product Costing

  It shows how much it cost to make a product which in turn helps in budgeting and pricing

  
  

• COPA(Profitability Analysis)

  It gives the business an exact result of to which customer, region and product the company makes profit

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