SAP Controlling overview
Transcription
SAP Controlling overview
SAP CONTROLLING FUNCTIONALITY AND IMPLEMENTATION Muhammad Hani Agenda The role of SAP-CO in the business environment. Main components of SAP-CO. Controlling integration with other SAP modules. Implementing SAP-CO. Overview of the organizational structure. Cost center and profit center accounting. Internal Orders. Product Costing Profitability analysis. Conclusion, Questions, and discussion. The rule of SAP-CO in the business environment Controlling (CO) is the term by which SAP refers to “Managerial Accounting”. Managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. Managerial VS Financial accounting Components of SAP-CO Cost Center Accounting Profit Center Accounting Internal Orders Product Costing Profitability Analysis Implementation Consideration Controlling implementation depends on how well is the implementation of the other components: FI-MM-SD-PP-HR SAP recommends Controlling implementation to be carried out in 3 phases: Foundation. Stabilization. Enhancement and Optimization. Controlling Integration Financial module plays the role of a “Feeder system”. All Financial transactions relevant to profit and loss accounts are updated in the controlling in “real time”. This happens in real time through the component “Cost Element Accounting”. Any transaction in non-financial modules like MM-SD that have a financial impact on profit and loss are updated in controlling instantly. Integration in event- based posting Organizational Structure Cost Center Accounting Used for internal controlling purposes and make the costs more transparent in an organization. If you have overhead costs, they need to be allocated to the actual department that owns that cost. Focus is on managing cost per plan. Performance is managed by comparing planned and actual costs. Cost Center Accounting-Cont’d The structure of cost centers is heavily dependent on each organization. Before creating a cost center, you should outline the standard hierarchy of the cost centers. Standard hierarchy allows you to visualize the organization from the controlling perspective. Activity types and planning Used to measure the output or the contribution of cost centers to the organization. Ex: Quality control cost center ,the output which is “Inspection Hours” is an activity type. Activity inputs -which are primary cost elements- and activity output quantities and prices are planned and compared to actual values so that any variance can be measured and analyzed. Activity flow and allocation Cost center: Budget Planning Cost center accounting also allows you to set up a monthly budget by cost center. You can compare the actual values against the budgeted values and establish timely availability checks in case the budget is exceeded. Profit Center Accounting Primarily used for management-related reporting for internal purposes. Defining an organizational element as a profit center entails that the unit is being managed independently by a person who is responsible for the profit(revenues and costs). Difference between profit center accounting and profitability analysis. Internal Orders Used for managing small projects that need to be budgeted and managed independently . Ex: setting up a marketing kiosk in a cultural event. Internal orders accounting allows you to plan, budget, collect ,and settle the costs of a mini project in a process oriented fashion. Real and statistical orders. Settlement process and receivers (Fixed Assets-Cost Centers-Profitability Segment-WBS). Internal orders Product Costing The basic question that CO-PC aims to answer is this: what is the material cost of a product? Measuring the value added by each process and organizational unit. Supports make or buy decisions. Determine true inventory and COGS values. Come up with price floor for unit cost. Product costing integration CO-PC is heavily integrated with PP and is effective only in conjunction with PP and MM. All of the master data of CO-PC depends on PP for BOM, routing, work centers, and relies on cost center accounting for activity types prices. Product cost planning and standard cost estimate. Planning with or without Quantity structure. Costing Variant Profitability Analysis (CO-PA) The key difference between CO-PA and profit center accounting (EC-PCA) is that PA is the external view of the organization while PCA is the internal view of the organization for management reporting. CO-PA is a market oriented perspective, you can report profitability by customer, customer group, division, product, product group, distribution channel, and so on. Reporting features, an example CO-PA Integration Conclusion Controlling can help your organization: Improve productivity and insight. Reduce costs through increased flexibility. Support changing industry requirements. Provide immediate access to enterprise information. Questions/Discussions Thank You