| The SAP FI (Financial Accounting) Module has | | | | Legal, Shipping/Receiving, or even Quality. |
| the competence of meeting all the accounting | | | | |
| and financial needs of an organization. Along | | | | Some of the benefits of Cost Center |
| with other managers, Financial Managers | | | | Accounting: |
| within your business and same module can | | | | |
| review the financial position of the company | | | | (1) Managers can set Budget/Cost Center |
| in real time as contrasted to legacy systems | | | | targets |
| which necessitate overnight updates before | | | | |
| financial statements frequently and can be | | | | (2) Cost Center visibility of functional |
| generated for management review. The | | | | areas of your business |
| real-time functionality of the SAP modules | | | | |
| allows for better decision making and | | | | (3) Planning |
| strategic planning. The FI Module | | | | |
| incorporates with other SAP Modules such as | | | | (4) Availability of Cost allocation methods |
| MM (Materials Management), PP (Production | | | | and |
| Planning), SD (Sales and Distribution), PM | | | | |
| (Plant Maintenance), and PS (Project | | | | (5) Assessments of costs to other cost |
| Systems). The FI Module also assimilates with | | | | objects. |
| HR (Human Resources) that includes PM | | | | |
| (Personnel Management), Time Management, | | | | Internal Orders provide a means of tracking |
| Travel Management, Payroll. Document | | | | costs of a specific job, service, or task. |
| transactions occurring within the precise | | | | Internal Orders are used as a method of |
| modules generate account postings by means of | | | | gathering those costs and business |
| account determination tables. | | | | transactions that are linked to the task. |
| | | | This level of monitoring can be very detailed |
| The SAP CO (Controlling) Module endow with | | | | but allows management the ability to review |
| supporting information to Management for the | | | | Internal Order activity. Activity-Based |
| purpose of planning, reporting, as well as | | | | Costing authorize a better definition of the |
| monitoring the operations of their business. | | | | source of costs to the process driving the |
| Management decision-making can be achieved | | | | cost and it also enhances Cost Center |
| with the level of information provided by | | | | Accounting that allows for a process-oriented |
| this module. The Cost Element Accounting | | | | and cross-functional view of your cost |
| component provides information which includes | | | | centers. Product Cost Controlling allows |
| both the costs and revenue for an | | | | management the capability to examine their |
| organization. These postings are updated | | | | product costs and to make decisions on the |
| automatically from FI to CO. The cost | | | | optimal price to market their products. The |
| elements are the foundation for cost | | | | methods which can be utilized for EC-PCA |
| accounting and facilitate the User the | | | | (Profit Center Accounting) are period |
| ability to display costs for each of the | | | | accounting or by the cost-of-sales approach. |
| accounts that have been assigned to the cost | | | | Profit Centers can be set-up to identify |
| element. Cost Center Accounting provides | | | | product lines, divisions, geographical |
| information on the costs incurred by your | | | | regions, offices, production sites or by |
| business. You have the ability to assign Cost | | | | functions. Profit Centers are used for |
| Centers to departments and managers | | | | Internal Control purposes enabling management |
| responsible for certain areas of the business | | | | the ability to review areas of responsibility |
| as well as functional areas within the SAP. | | | | within their organization. |
| Cost Centers can be created for such | | | | |
| functional areas as Marketing, Purchasing, | | | | Ron Victor is a SEO copywriter for He |
| Human Resources, Finance, Facilities, | | | | written many articles in various topics. |
| Information Systems, Administrative Support, | | | | |