CONTROLLING SAP FUNCTIONAL MODULES: [7 eenenn rooms Vv. Bobli | re] fe oR =| [ Ce] 1. GL (Genera Ledger) ii, AP (Accounts Payable) Ji AR (Accounts Receivable) ‘AA (Asset Accounting) i. Overhead Management 1. CE {Cost Element Accounting) 2. €CA(Cost Center Accounting) 3. 10 {Internat Order) ji. Pc (Product Costing) a. _MM {Materials Management) b._ SD {Sales ang Distribution) & C5 (Customer Service) d,_ PP (Production and Plznning) COPA (Controling Profitability Analysis) PCA (Profit Center Accounting) RAMESH CHOWDARY - 91609044113. QM (Quality Management) 1. PM (Plant and Maintenance) 8 PS{Project Systems)” mR BRIEF EXPLANATION ABOUT CONCEPTS IN FICO: os Fis used to extract findncil statements by book keeping and to know the financial position of the organization, Generally we extract the financial statements inorder to submit to the external authorities and internal management. CO is used for managing and recording of Costs and. providing information fo the management for internal assessment regarding, perfoimaiice ofthe units: : The cost elements the main integration point between Fl and CO. GL account is nothing but rature of financial transaction whereas cost element is nothing but nature of expenditure: We can redistribute the costs between the departments using'cost center accounting: We collect the costs department wise, we distribute to other departments and finally we allocate to product costing based on how the product utilized the resources in each ‘department. Any management once they control the overhead costs, they would like to know what wil be the cost of product or service and how to eat down the cost of ‘manufacturing product or service ‘We can do the compare with competitors or standard costs ete and analyze the product cost to know what costs are influencing for more costs ard what type of eostscan be minimized Through product costing we provide cost of the product in detail ens ke each component wise cast (material, labor, overheads ete) and what is the internal and external resource ‘tiation. Here we get3 types of costing: #_ Standard cost: isan estimated cost to produce a product (U7 Plan cost:it is an estimated cost for completion of job + Actual eost: ti the actual cost (material, intesnal and extemal resources) incurred for completion ofthe lob ‘We can compare these three types of costs, analyze the variance among, all and take cortective action. Variance may arse because of + Raw material consumption (input material) + Material price difference” + Internal resources diflerence (labor ete) + Internal price differencesiactivty prices) Voluation of un finished product (related to WIP: Work in Process) means valuation of in- completed job. According to accounting standards, if any produet isin progress, we can’t show the extent of the cost as expenditure item, we need to show it as work in process value in balance sheet. In domain accounting we may not have perfect information about ‘work in process, but through SAP we can get the information clear. We cannot track what isthe cost incurred and what sthe value of i-completed job, each job wise from Fl, but we can do this through CO as because of information available in CO. How the system gets information about the product to calculate product costing and the integration with logistic modules + Material cost is collected from Find MIM (NIM people issue the material to PP who complete the job ~ so with integration from NM and PP) A Direct ovethead: Collec the costs from different departments and how job is completed using activity types in each deportment (so, direct and indirect OH from cost center accounting) + Indirect overhead RAMESH CHOWDARY - 9160008411COPA: It provides information to the management regarding product profitability, does the dimensional analysis (with different dimensions lke region, product etc) and we can see what is the cost of sales and contribution analysis with respect to market seginent wise » The major integration is from. product costing (especially cast of the product), from FI (Ike selling expenses), cost center accounting (especially marketing department), fram SD and | customer service. 2» Profit center accounting: itis used to know the internal units (SBU) profits and how these 'SBUS are performing. integrates with all the modules ORGANIZATIONAL UNITS [At organizational units we record t/ack and analyze the costs. COMPANY. Cover “OPERATING CONCERN ‘company ‘coves CONTROLLING AREA? OPERATING CONCERN: tis the highest organizational unit, in the controlling mortule and at this level it records, tracks and analyzes of marketing efated activities and also we can do the market segment profitability analysis. ‘The operating concern is required only tor Controlling Profitability Analysis (COPA) purpose. UGonTROLING AREA: Wes the CO organizational unit ond at this level it reconds and analyzes the overhead related actites cost element, cost center accounting, and. internal orders)” manufacturing related dctvities (produ coming) and also acts of internal Units analyse Or evAknton ofthe ierol Unit analysis fof center accounting) “FI ORGANIZATIONAL UNIT (COMPANY CODE): At this level, recording and tracking the financial transactions, book keeping and preparing or extracting the financial statements lke balance sheet and P&L. Whssiewment oF company cove 10 controLune anca{ XA We can assign ‘n? nomber of company cades to one controling area subject tothe following conditions: 1 Chart of accounts should be the same between company code and controling area, that reise cig sre Sn he Same er Te compan al 2. The fiscal year should satsy the below conditions between the company cole and toning ae 2. The number of posting periods should be the sane other don tie speci pesos) 3. The san period and end peflod should be the same RAMESH CHOWDARY - 9160000411.