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There are three major submodules in CO and each of these submodules has many components as detailed below:

• Cost ELEMENT Accounting
• Cost CONTROLLING
• Cost Center Accounting
• Internal ORDERS
• Activity-Based Costing
• PRODUCT Cost Controlling
• Profitability Analysis
• PROFIT Center Accounting

There are three major submodules in CO and each of these submodules has many components as detailed below:

There are TWO types of assignments POSSIBLE between the Company Code and a controlling AREA:

• One-to-one: Here, one Company Code corresponds to one controlling area.
• Many-to-one: More than one Company Code is ASSIGNED to a single controlling area.

There are two types of assignments possible between the Company Code and a controlling area:

A ‘Controlling Area’ is the CENTRAL organizational structure in ‘controlling’ (CO) and is used in cost accounting. The controlling area, as in the case of a Company Code, is a self-contained cost accounting entity for internal reporting purposes. The controlling area is assigned to one or more Company Codes to ENSURE that the necessary transactions, posted in FI, are transferred to controlling for cost accounting PROCESSING.

• One controlling area can be assigned one or more Company Codes.
• One chart of accounts can be assigned to one or more controlling areas.
• One or more controlling areas can be assigned to an operating CONCERN.
• One Client can have one or more controlling areas.

A ‘Controlling Area’ is the central organizational structure in ‘controlling’ (CO) and is used in cost accounting. The controlling area, as in the case of a Company Code, is a self-contained cost accounting entity for internal reporting purposes. The controlling area is assigned to one or more Company Codes to ensure that the necessary transactions, posted in FI, are transferred to controlling for cost accounting processing.

The important organizational structure of controlling includes:

• Operating Concern (the top-most reporting LEVEL for profitability analysis and sales and marketing controlling).
• Controlling Area (central organization in ‘controlling,’ structuring internal ACCOUNTING operations).
• Cost Centers (lower-most organizational units where COSTS are incurred and TRANSFERRED).

The important organizational structure of controlling includes:

SAP calls managerial accounting ‘Controlling’ and the module is commonly KNOWN as ‘CO.’ The CO module is, thus, primarily oriented towards managing and REPORTING cost/revenue and is mainly used in ‘internal’ decision-making. As with any other module, this module ALSO has configuration set-up and application functionality.

The controlling module focuses on internal users and helps MANAGEMENT by providing reports on cost centers, profit centers, contribution margins and profitability, etc.

SAP calls managerial accounting ‘Controlling’ and the module is commonly known as ‘CO.’ The CO module is, thus, primarily oriented towards managing and reporting cost/revenue and is mainly used in ‘internal’ decision-making. As with any other module, this module also has configuration set-up and application functionality.

The controlling module focuses on internal users and helps management by providing reports on cost centers, profit centers, contribution margins and profitability, etc.