Profitability Management

Profitability Analysis (CO-PA) provides you with an external view of your profitability. Profitability analysis allows you to monitor and analyze  the contribution of your market segments and units, structured according to products, customers, orders and summarizations.

Profit Center Accounting (EC-PCA)

Enterpise Controlling’s Profit Center Accounting (EC-PCA) provides you with an internal view of your profitability. EC-PCA makes it possible to evaluate the operating profit of different areas or unit within your enterprise.

Posting In Controlling

When an FI document is created that posts to an expense (or revenue) account for which a responding primary cost element was created in CO, and a valid controlling object (such as a cost center or internal order) is identified for the expense/revenue line item, a controlling document is also created.

This CO document with its own unique number contains the following details:

-          controlling object post to

-          the cost elemet used

-          the amount

-          the date

When primary cost is initially posted into CO, it is treated as a one-sided journal entry, unlike a traditional balanced financial accounting journal entry

Integration

In the integrated SAP R/3 system, you can tranfer data to Cost Center Accounting from the following aplicatin components:

-          Financial Accounting (FI)

-          Assets Accounting (FI-AA)

-          Materials Managemet (MM)

-          Material Consumption

-          Production Planning (PP)

-          Personnel Administration and Payroll (PA)