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16 Cards in this Set
- Front
- Back
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Goal of controlling |
- Managerial Accounting = controlling - Designed to collect transactional data that provides foundation for preparing internal reports that support decision-making within the enterprise - Reports used exclusively within the enterprise - Include: Cost centre performance Profit centre performance Budget analyses |
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CO Target Audience |
- Executives - Senior Management - Department Managers- - Controllers - Cost Accountants |
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Operating Concern |
- Represents part of an organization for which the sales market is structured in a uniform manner - Operating profit for individual market segments can be calculated - Multiple controlling areas can be assigned to one operating concern |
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GBI Structure |
Slide 7 Diagram |
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CO Master Data - Profit Center |
- Responsible for revenue generation and cost containment - Evaluated on profit or ROI - Enterprises commonly divided into profit centres based on region, function, product |
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CO Master Data - Cost Center |
- Responsible for cost containment, not responsible for revenue generation - One or more value-added activities performed within - Unit distinguished by area of responsibility, location, or type of activity (copy centre, security department, maintenance department) |
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CO Master Data - Internal Order |
- Temporary cost centre responsible for cost containment, not revenue generation - Used to plan, collect, monitor costs associated with distinct short-term event, activity, project - E.G. Company picnic, trade show/fair, recruiting campaign |
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CO Master Data - Revenue Element |
- One-to-one linkage (mapping) between G/L revenue accounts and CO revenue elements; established to permit transfer of FI revenue information to CO - Posting in FI that impact revenue accounts lead to a posting in CO to a revenue element |
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CO Master Data - Cost Element |
- One-to-one linkage (mapping) between G/L cost accounts and CO cost elements; established to permit transfer of FI expense information to CO- Posting in FI that impact cost accounts lead to a posting in CO to a cost element - Expense account = cost element, depending on whether FI or CO object |
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CO Master Data: Primary and Secondary Cost Element |
- Primary cost element: originate in G/L within FI, automatically transferred to CO when an FI transaction is recorded in the G/L - Secondary cost element: used exclusively in CO for allocations and settlements between and amongst cost centres Diagram Slide 12 |
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CO Master Data - Statistical Key Figures |
- Provide foundation for accurate and effective cost allocations between cost objects - Utilized to support internal cost allocations involving allocations, assessments, and distributions - E.G. # employees, square footage, minutes of computer usage |
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CO Processes |
See slides diagrams |
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Two types of allocation |
Distribution Assessment |
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Distribution |
- Method for periodically allocating primary cost elements - Primary cost elements maintain identities in both sending and receiving objects - Sender and receiver cost centres fully documented in a unique controlling (CO) document |
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Assessment |
- Method of allocating both primary and secondary cost elements - Prim/Secon cost elements grouped together and transferred to receiver cost centres through use of secondary cost element - Sender and receiver cost centres fully documented in unique controlling (CO) document - Diagram slides |
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SAP CO module integrated with |
FI MM SD PP and more |
