4. CO/EC Overview
COMPONENT
Cost Center Acctg - CO-CCA
Internal Orders CO-OPA
Projects - PS
Product Costing - CO-PC
Activity Based Costing
Profitability Analysis-CO-PA
Profit Center Acctg-EC-PCA
Executive Info. System-EC-EIS
VIEW
Costs
Costs
Costs
Costs
Costs
Profits
Profits
Any data
ROLE
Cost Tracking
Small Projects
Large Projects
Product Costing
Cost Management
Margin by multi-cuts
Profit & Loss Repsons.
Cross-module reports
5. Internal management reporting
Reports by cost centers or other
cost “objects” and cost elements
Cost centers
Orders and Projects
Budget/plan
Actual vs. plan
CO Reporting
Controlling
7. FI and CO comparison
CO
FI
Legal or external reporting
Reports by accounts
Balance Sheet
Income Statement
Internal management
reporting
Reports by cost centers and
cost elements
Cost Center Reports
8. FI/CO Organizational Structures
• Client
• Company
• Chart of Accounts
• Company Code
• Business Area
• Credit Control Area
• Controlling Area
10. Client
• Highest hierarchical level in an SAP
system
• A complete database containing all the
tables necessary for creating a fully
integrated system
• Master records are created at the client
level
12. Company
• Consolidated financial statements are
created at the company level
• A company can include one or more
company codes
– All company codes must use the same
chart of accounts and fiscal year
14. Chart of Accounts
• A listing of the accounts
• A chart of accounts must be assigned to
every company code
• Several company codes can use the same
chart of accounts
– A different chart of accounts can be used if a
different grouping of the chart of accounts is
required
15. Co code
1000
Co code
2000
Co code
3000
Co code
4000
Co code
5000
US CHART OF
ACCOUNTS
GERMAN
CHART OF
ACCOUNTS
CLIENT
17. Company Code
• A required structure
• A legally independent entity
• The smallest organizational unit for which
accounting can be carried out
• The level where business transactions are processed
• The level where accounts are managed
• The level where legal individual financial statements,
such as the balance sheet and the profit and loss
statement, are created
A BALANCED SET OF BOOKS
19. Credit Control Area
• An organizational unit or area of
responsibility created to control customer
credit limits
• A company code is assigned to one and
only one credit control area
• Multiple company codes can be assigned
to one credit control area
21. Controlling Area
• An organizational unit defining the company's
cost/ managerial accounting operations
• A company code is assigned to one and only
one controlling area
• A controlling area can have multiple company
codes assigned to it
– This allows cross company cost allocations and
reporting
22. 1 2 3 4 5 6 7
JANUARY
FEBRUARY
DECEMBER
Fiscal Year Variant
•Determines the fiscal year
•Calendar year or
non-calendar year
•Allows the use of special
periods to aid year-end
closing
•Is assigned to a company
code
