SAP Controlling

Contents
Introduction .......................................................................................................... 7
Unit 1: Overview of Controlling ......................................................................... 9
Purpose of Controlling ................................................................................... 10
MYTH – Fact or Fiction? ......................................................................... 10
Breakdown of functionality ...................................................................... 11
Introduction to Terminology ........................................................................... 12
What do the Following SAP Terms refer to in "Non-SAP Speak"? ........ 12
Demonstration Overview ........................................................................ 15
Navigating the Controlling Module ................................................................ 30
Navigation Exercise: ............................................................................... 31
Managerial Accounting versus Financial Accounting .................................... 36
What Is Managerial Accounting? ............................................................ 36
How Does It Differ in SAP from Financial Accounting? .......................... 36
Integration ..................................................................................................... 37
Posting in FI versus CO .......................................................................... 37
Impact of CO Requirements on Other Modules ..................................... 38
Determining the Source of a CO Posting ............................................... 46
Reporting ....................................................................................................... 48
Standard Reports versus Report Writer/Report Painter ......................... 48
Determining Which Option Makes Sense ............................................... 49
Unit 2: Organizational Elements ...................................................................... 51
Organizational Structures .............................................................................. 52
Operating Concern ................................................................................. 52
Controlling Area ...................................................................................... 53
Company Code ....................................................................................... 54
Chart of Accounts ................................................................................... 56
Currency ........................................................................................................ 57
Group Currency ...................................................................................... 57
Local Currency ........................................................................................ 57
Transactional Currency........................................................................... 57
Fiscal Year Relationships .............................................................................. 58
Unit 3: Cost Element Accounting .................................................................... 59
Overview........................................................................................................ 60

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SAP Controlling Master.doc
 Introduction Klee Associates, Inc.

Master Data ................................................................................................... 63

Primary Cost Elements............................................................................ 63
Secondary Cost Elements ....................................................................... 68
Cost Element Grouping ........................................................................... 71
Configuration.................................................................................................. 75
G/L Account ............................................................................................. 75
Posting Key Field Status ......................................................................... 76
Demonstration Overview ......................................................................... 76
Posting within CO .......................................................................................... 83
Demonstration Overview: ........................................................................ 83
Transaction Details.................................................................................. 88
Posting Exercise ...................................................................................... 89
Reporting ....................................................................................................... 90
Reporting Exercise .................................................................................. 91
Unit 4: Cost Center Accounting ....................................................................... 93
Overview ........................................................................................................ 94
Integration with FI & MM ................................................................................ 95
Purchase Order Related Postings ........................................................... 95
Integration Exercise:................................................................................ 97
Master Data ................................................................................................... 99
Cost Center ........................................................................................... 100
Cost Center Groups .............................................................................. 103
Standard Hierarchy ............................................................................... 103
Demonstration Overview: ...................................................................... 104
Master Data Exercises .......................................................................... 115
Related Master Data .................................................................................... 119
Activity Types ........................................................................................ 119
Statistical Key Figures ........................................................................... 120
Demonstration Overview: ...................................................................... 121
Related Master Data Exercises: ............................................................ 127
Configuration: Cost Object Default/Validation ............................................ 130
Automatic Account Assignments ........................................................... 131
Validations and Substitutions ................................................................ 133
Demonstration Overview ....................................................................... 135
Postings in Cost Center Accounting ............................................................ 138
Manual Adjustments .............................................................................. 139
Distribution ............................................................................................ 145

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Klee Associates, Inc. Introduction

Assessment .......................................................................................... 163

Reporting ..................................................................................................... 178
Plan/Actual Comparisons ..................................................................... 179
Actual/Actual Comparisons ................................................................... 181
Planning Reports .................................................................................. 185
Prices .................................................................................................... 185
Line Items ............................................................................................. 185
Master Data Indexes ............................................................................. 189
More Reports ........................................................................................ 189
Unit 5: Profit Center Accounting ................................................................... 193
Overview...................................................................................................... 194
Master Data Components ..................................................................... 195
Outward Integration .............................................................................. 195
Integration with FI, MM, & SD ..................................................................... 196
Sales Order Related Postings .............................................................. 196
Financials .............................................................................................. 197
Demonstration Overview: ..................................................................... 198
Integration Exercise: ............................................................................. 203
Master Data ................................................................................................. 204
Profit Center .......................................................................................... 205
Profit Center Groups ............................................................................. 207
Standard Hierarchy ............................................................................... 207
Account Group ...................................................................................... 208
Demonstration Overview: ..................................................................... 209
Master Data Exercises .......................................................................... 220
Configuration ............................................................................................... 224
PCA Settings......................................................................................... 224
Profit Center Default/Validation ............................................................ 224
Demonstration Overview ...................................................................... 225
Configuration Exercise .......................................................................... 227
Postings in Profit Center Accounting ........................................................... 228
Manual Adjustments ............................................................................. 229
Transfer of Payables/Receivables ........................................................ 233
Distribution ............................................................................................ 237
Assessment .......................................................................................... 238
Reporting ..................................................................................................... 239
Interactive Reporting ............................................................................. 239

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 Introduction Klee Associates, Inc.

List Oriented Reports ............................................................................ 242

Line Item Reporting ............................................................................... 248
Special Functions .................................................................................. 253
Unit 6: Internal Order Accounting ................................................................. 259
Overview ...................................................................................................... 260
Integration with FI, MM, & CO ..................................................................... 261
Purchase Order Related Postings ......................................................... 261
Demonstration Overview: ...................................................................... 262
Master Data ................................................................................................. 266
Internal Order ........................................................................................ 267
Internal Order Groups ........................................................................... 270
Demonstration Overview: ...................................................................... 271
Master Data Exercises .......................................................................... 294
Master Data Exercises .......................................................................... 294
Configuration................................................................................................ 301
Settlement Profile .................................................................................. 302
Order Types .......................................................................................... 304
Demonstration Overview ....................................................................... 305
Postings in Internal Order Accounting ......................................................... 309
Manual Adjustments .............................................................................. 310
Settlement ............................................................................................. 311
Settlement Exercises:............................................................................ 316
Reporting ..................................................................................................... 319
Plan/Actual Comparisons ...................................................................... 320
Actual/Actual Comparisons ................................................................... 327
Planning Reports ................................................................................... 331
Line Items .............................................................................................. 331
Master Data Indexes ............................................................................. 335
More Reports ......................................................................................... 336
Unit 7: Profitability Analysis .......................................................................... 343
Overview: ..................................................................................................... 344
Terminology........................................................................................... 346
Valuation Methods................................................................................. 347
Setup ..................................................................................................... 348
Data Flows into CO-PA from SD ........................................................... 349
CO-PA Reconciliation .................................................................................. 350
Demonstration Overview ....................................................................... 350

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Klee Associates, Inc. Introduction

Reporting ..................................................................................................... 353

Demonstration Overview ...................................................................... 353
Unit 8: Product Cost Controlling ................................................................... 359
Overview:..................................................................................................... 360
Demonstration Overview: ..................................................................... 363

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