Controlling

In the Controlling (CO) module, the cost accounting is carried out within a controlling area. This isn't necessarily the same as FI, which presents accounts at a company code level. Figure C.3 shows a business setup for CO.
Plain English
Controlling Area
A grouping that can be used to aggregate the control of several distinct companies.
Figure C.3. One way a company structure could be set up in CO.
The following statements will help you better understand CO:
A controlling area can contain one or more company codes.
A company code represents a legal entity. A business area is a lower division and is used only for internal accounting.
CO does Cost Center Accounting (CCA) and Profit Center Accounting (PCA). Costs are allocated to the appropriate accounts.
TIP
Controlling Help
For help on Controlling, choose Help, Help Library, Controlling.
To illustrate a typical flow in CO, Figure C.4 shows how an organization could manage its telephone cost center to allocate telephone costs across cost centers.
Figure C.4. A typical flow in Controlling.
CO also performs the following functions in SAP R/3:
Tracks product costing and process costing
Provides Profitability Analysis and Executive Information System
Plain English
Executive Information System
A system used to monitor key indicators that executives use to "take the pulse" of their businesses. The indicators chosen vary from business to business. Facilities in which to look at the detailed data are usually also provided.
Makes available periodic and on-demand reports
Offers Business Planning and Control, Internal Orders, and Open Item Management
CO creates very little original documentation—it collects, groups, and charges source documents originating in other modules. The major documentation concepts used in CO are Cost Centers, Profit Centers, and Cost Elements. CO interfaces to General Ledger and the Asset Management module. Input is also drawn from FI and MM.