Professional Documents
Culture Documents
Course Outline
TOPICS
I. Cost Accounting Overview
II. SAP Controlling Overview
III. Product Costing Overview
A.
B.
C.
D.
E.
Cost Diagram
A products cost is the combination of the direct and indirect costs
incurred to produce the product.
United
States
China
Estonia
Finland
India
Malaysia
Norway
Full
Absorption
Costing
76%
68%
55%
31%
48%
46%
29%
Variable
Costing
24%
32%
39%
42%
50%
23%
55%
Both
Systems
__
6%
28%
2%
31%
16%
__
Course Outline
TOPICS
I.
II.
III.
SAP Controlling
What is it?
Controlling (CO) is module with in SAP.
Enables business management to make
internal (Managerial and Cost) accounting
decisions.
Highly integrated with the Financial
Accounting (FI) module.
What does it do?
The CO module is used by management to
answer such questions as:
Where in the business are costs incurred?
Where does the business generate revenues?
How profitable is the business and its
components?
FI
SD
MM
PP
CO
SAP
ECC
QM
PM
HR
TR
PS
EC
IM
SAP Controlling
SAP Controlling consists of the following components:
Cost Center Accounting:
Identifies where costs are incurred in the business.
Internal Order:
Tool used to capture costs and revenues.
Product Costing:
Derives standard costs for products/services and collects actuals.
Note: This sub module will be the focus of future courses.
Profitability Analysis:
Analyzes profits and contribution margin for various market segments.
Course Outline
TOPICS
I.
II.
III.
Reporting
Reporting enables users to perform detailed analysis of product costing
data.
Period
Closing
Reporting
& Analysis
Control
Cost
Objects
Collect
Actual
Costs
Plan
Standard
Product
Costs
Course Outline
TOPICS
I. Cost Accounting Overview
II. SAP Controlling Overview
III. Product Cost Controlling Overview
A.
B.
C.
D.
E.
Organizational Data
Key Terms
Cost Center: Organizational unit that represents a defined location
where costs can be planned/incurred.
Cost Center Hierarchy: Grouping of cost centers based on specified
criteria (i.e. location, cost center type, etc.)
Cost Element: Account, equivalent to a P/L account, that exists in SAP
CO to enable internal cost accounting.
Profit Center: Organizational unit that represents a managementoriented structure for ones business. Contains cost/revenue balances.
BOM
Manufacturing
Cost Center 2
Work
Center 1
Work
Center 2
Work
Center 3
Activity Types
Activity Types
Activity Types
Routing
Finished
Good
Course Outline
TOPICS
I. Cost Accounting Overview
II. SAP Controlling Overview
III. Product Cost Controlling Overview
A.
B.
C.
D.
E.
Conversion Costs:
Preliminary Costing
What is it?
Performed after standard cost for material is calculated.
Determines the planned cost for production orders at the beginning of
the year.
Can be updated due to input price changes.
What does it do?
Used to identify planned costs for the material being produced.
Used as the baseline in the calculation of production variances.
Course Outline
TOPICS
I. Cost Accounting Overview
II. SAP Cost Center Accounting Introduction
III. Product Cost Controlling Overview
A.
B.
C.
D.
E.
Course Outline
TOPICS
I. Cost Accounting Overview
II. SAP Cost Center Accounting Introduction
III. Product Cost Controlling Overview
A.
B.
C.
D.
E.
Material Ledger
What is it?
Tool used to keep track of inventory level, value and usage.
Relevant Information Includes:
Actual price of purchased materials.
Price of raw materials.
Actual cost of production of semi-finished goods.
Course Outline
TOPICS
I. Cost Accounting Overview
II. SAP Cost Center Accounting Introduction
III. Product Cost Controlling Overview
A.
B.
C.
D.
E.
Detail:
Displays detailed line items posted at selected cost objects.
Drill Down:
Low-level information capable of displaying specific data for a given
line-item.
Contact Information
For any questions please contact:
Daniel Izzo:
daniel.c.izzo@accenture.com
Samrat Sengupta:
samrat.sengupta@accenture.com