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Now, the new SAP GL – integrates many streamlined processes to be unified more closely to further alleviate any duplication of live-time tasks.

This New General Ledger Accounting in mySAP ERP has some dynamic advantages in comparison to the classic General Ledger Accounting (as used in SAP R/3 Enterprise Version) – such as the ability to run real-time reconciliation between Management Accounting (CO) and Financial Accounting (FI) – i.e. – there is a real-time integration with Controlling.

Previously time-consuming reconciliations are hence now rendered obsolete. The new SAP GL further allows the management of multiple ledgers within the General Ledger Accounting Module itself.

This creates the scope for portraying parallel accounting scenarios within the SAP System.
Controlling (CO) is the term by which SAP refers to “Managerial Accounting”.

The Organizational Elements in CO are Operating Concern, Controlling Area, and Cost Centers. Hence, the SAP CO Module helps management by providing reports on cost centers, profit centers, contribution margins, profitability, etc.
It focuses on internal users, in contrast to FI – which focuses on data drawn for
external reporting.

The transactions posted in FI are transferred to CO for cost accounting processing, analytical reporting, and audit-controlling spectrums.
There can be either a one-to-one relationship or there can be one-to-many relationship between
Controlling Areas Verses Company Codes. Hence, CO becomes the governing module that oversees the consolidation of costing data whereby management can derive their perspectives for analysis.

The SAP Controlling (CO) Module’s Components are:
Cost Element Accounting
Cost Controlling
Cost Center Accounting
Internal Orders
Activity-Based Costing
Product Cost Controlling
Profitability Analysis
Profit Center Accounting
Some methodologies that are unique in their structural concepts are – for example – CO PA & PCA. PA refers to Profitability Analysis that derives from how profitable your market-segments are on their external sides. EC-PCA refers to Profit Center Accounting that produces the analysis that portrays how your internal ‘profit centers’ are functioning in terms of their profitability. To further expand the
potential, we also have CO-PC in SAP – which streamlines Product Cost Controlling.

Confused? Feel free to ask

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Alexander said...

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