Purpose

• • SAP CO (Controlling) focuses on internal financial management, tracking costs, profitability, and operational performance. It helps organizations monitor costs, optimize processes, and analyse financial performance across departments.

Key Features:

• Cost Element Accounting (CEA): Tracks expenses for specific activities or cost drivers.
• Cost Center Accounting (CCA): Tracks costs within specific organizational units or departments (e.g., HR, IT, marketing).
• Profit Center Accounting (PCA): Analyses profit performance across different segments or business units.
• Internal Orders: Tracks and manages costs associated with specific internal projects or tasks.
• Activity-Based Costing (ABC): Allocates costs based on activities, providing insights into cost drivers.
• Profitability Analysis (CO-PA): Analyses the profitability of different products, regions, or market segments.

Benefits:

• Helps manage and optimize internal costs and resource allocation.
• Provides detailed profitability and cost analysis to guide business decisions.
• Supports strategic budgeting and forecasting to improve financial planning.