Part of SAP Controlling module is Cost Element Accounting. It is under this area where you maintain directly master data of cost elements. Just to refresh your mind about cost element. There are two types of cost elements in Controlling, namely; primary and secondary cost element. Primary cost elements are use to transfer P&L account [...]

The Product Cost Controling (CO-PC) application component of SAP generally divided into 4 components (for learning purposes only) namely: Product Cost Planning (CO-PC-PCP) Cost Object Controlling (CO-PC-OBJ) Actual Costing/Material Ledger (CO-PC-ACT) Product Cost Controlling Information System (CO-PC-IS) ♦♦♦ Product Cost Planning (CO-PC-PCP) – this is an area of Product Cost Controlling which you can use to: analyze the [...]

When you create a Controlling Area, Profitability Analysis is not automatically activated. If you want to use Profitability Analysis function of SAP, then it should be activated. Note that Profitability Analysis still not active upon creation of the Controlling Area, as shown in this screen shot: To activate the Profitability Analysis, follow this helpful and [...]

You might be asking, what’s the difference between a cost center and an internal order? A cost center is use to monitor and trace who incurred a specific cost from your organization. It is use for fixed reporting for a long time period as part of your organization structure. The definition of a cost center [...]

An internal order is use to accumulate costs for a specific project or task in a specific time-duration. Therefore, an internal order is use for a short period with a specific deadline. Purpose: It can be used to group all the costs/expenses that could be incurred to plan and hold a marketing event, say over [...]