SAP CO is a significant functional module of SAP that manages cost calculation, cost analysis, cost planning, and overhead management of the business. The primary function of this module is to coordinate, monitor, and optimize all processes in an organization. It creates the accounting data into an integrated pattern that helps in managing profit-loss statements and balance sheets. To further know about it, one can visit SAP CO Online Course.
Modules of SAP CO
SAP CO consists of various sub-modules useful for handling the company’s internal reporting. The controlling modules are also responsible for posting the financial transactions from different modules. Given below are some of the significant SAP CO modules.
- Cost Center Accounting- It manages the cost of internal divisions like the production of materials, sales, marketing, or human resources. It focuses on expenses rather than revenue and performs controlling activities in an Organization.
- Cost Element Accounting- This sub-module includes analyzing the company’s costs and profits as per profit and loss statements. Furthermore, it defines the costs’ origin and the cost components of the company.
- Profit Center Accounting- It deals with all the profits related to different business lines of a company. Unlike cost center accounting, this module manages both the costs and revenues of an organization.
- Internal Orders- This module manages the expenses that the company has incurred for internal projects. It records the project expenses until it’s time to close the project and settle the costs with a cost receiver.
- Profitability Analysis- It provides insights and information about the company’s profitability. It is a significant module useful for making decisions about product pricing, distribution networks, and target consumer segments.
- Product Cost Controlling- It manages the cost-related data useful for generating the products and services of the company. It conducts a detailed analysis of the product and helps in maintaining the production costs.
- Activity-Based Costing- This module assigns the cost to the activities that are part of the overhead costs. After that, it assigns those activities to the products and gives a true picture of the cost estimate.
Benefits of Using SAP CO
Using SAP CO allows managers to set Budget or Cost Center targets. It facilitates cost center visibility of functional departments or areas of your business and ensures the availability of Cost allocation methods. In addition, it ensures assessments and distribution of costs to other cost objects. SAP CO allows users to track the costs of a specific job, service, or task. It ensures a better definition of the source of costs to the process driving the cost. Implementing this module allows a business to analyze product costs and make decisions on the optimal price. Above all, it provides the ability to review information concerning the company’s profit or contribution margin. Many institutes provide SAP CO Course in Noida and one can enroll in them to start a career in it. Apart from these, given below are some of the benefits of using SAP CO.
- It backs up the works of reporting, planning, and tracking the operations of organizations.
- Provides various methods to organize and analyze expenses that are required for financial reporting.
- Helps in preparing, performing, monitoring, and reporting on the costs.
- Facilitates handling and configuring the master data that includes the price elements, cost centers Etc.
Benefits Of Getting SAP CO Certification
SAP CO certification is beneficial for examining those candidates who wish to build a career as SAP CO consultant. It provides you with multiple career opportunities in many leading companies. To start a career in this field, one can enroll in SAP Controlling Training in Noida. Apart from these, given below are some of the benefits of SAP CO certification.
- Attracts More Employers- Having SAP Controlling certification ensures that you stand out of line from other candidates without certifications. In addition, it attracts more employers and makes you more employable.
- Provides High Package- SAP certifications are seen as a symbol of your expertise, skills, and dedication. Therefore, individuals with SAP Controlling certification are paid higher than the ones without certifications.
- Gain Recognition- It makes you an idol figure for your colleagues and juniors. In addition, they will seek guidance from you about how to crack these certifications.
Conclusion
SAP Controlling (CO) is a functional module of SAP that manages cost calculation, cost analysis, cost planning, and overhead management of the business. It comes with various sub-modules useful for handling the company’s internal reporting. Some of its popular modules are Cost Center Accounting, Cost Element Accounting, Profit Center Accounting, Internal Orders, Profitability Analysis, Product Cost Controlling, and Activity Based Costing.