Management Accounting in SAP S/4 Hana Controlling

CO is used for managing and recording of prices and offering data to the administration for inner evaluation and efficiency.

· Value Ingredient Accounting:

Income and expenditure GL accounts are known as as value components.

Two Varieties of value factor are used in CO:

a) Main Value Ingredient:

It’s used to hold the fee from FI to CO module.

b) Secondary Value Ingredient:

It’s used to hold the fee inside CO module from one value object to a different.

· Value Heart Accounting:

It’s used to redistribute the fee between the departments. We accumulate the division sensible value and redistribute it to different departments utilizing allocation strategies and at last allocate the fee to merchandise primarily based on how a lot assets of every division product is utilizing.

Planning and precise value will be posted to the fee facilities, and we are able to do variance evaluation. In new model of SAP S4 HANA we are able to additionally assign the management to limit the precise value as much as plan values.

Value heart accounting is used for the calculation of exercise value calculation. How a lot is the worth of every exercise. Exercise value is then used to calculate the direct value of producing the merchandise.

· Product Costing

Product costing is used to calculate the worth of merchandise in element with their value elements like value of fabric, labor, and overheads individually.

Three various kinds of product value are going to be calculated:

· Normal Value.

It’s estimated value to supply one single unit.

· Plan Value.

It’s estimated value for the entire manufacturing order.

· Precise Value.

It’s precise value consumed to product items in a manufacturing order.

Profitability Evaluation (COPA):

It’s used to evaluation the profitability utilizing totally different dimensions like area, product, buyer and many others.

Inner Order:

It’s used to investigate the fee on the decrease stage like how a lot is the fee for one undertaking.

Revenue Heart Accounting:

It’s used for each income and value evaluation like we wish to analyze the revenue for one materials.

Materials Ledger Precise Value:

It’s used to actualize the usual value of supplies. It’s obligatory for S4 Hana.

IAS-2 valuate the supplies on the decrease value and NRV.

Controlling Space:

It’s for inner reporting function which data and analyze overhead associated actions like:

i) Value Ingredient Accounting

ii) Value Heart Accounting

iii) Inner Orders

Manufacturing associated actions like:

i) Product Costing.

Analysis of inner unit evaluation and analysis like:

i. Revenue Heart Accounting.

Task of firm code to controlling space:

A number of firm codes will be assigned to 1 controlling space however beneath situations ought to be met:

a. Chart of account for firm code and controlling space ought to be the identical.

b. Fiscal 12 months variant ought to be the identical. (Begin and finish of fiscal 12 months & no of posting durations).

Controlling Space Elements:

Fiscal Yr:

It’s used to validate the historic information as properly. We have to specify the fiscal 12 months from which we have to analyze the historic information.

CO Quantity Ranges:

Like FI doc sorts in CO, we keep totally different quantity ranges for various transaction sorts of CO however not like FI doc kind quantity ranges CO quantity ranges are 12 months unbiased.