resume bab 5 part 4

Management Accounting

FI and CO : Standards Versus Flexbility

The mySAP Financials applicatons compnets Conroling (CO) contains all accounting functions necessary for effective conrolling. If an organizations divides accounting into enternal and external viewpoints, CO represent the internal accounting perspective because it provides information for managers –those who are inside an organization and are charged with controlling its operations. CO includes cot and revenue accounting.

Components of Management Accounting

The mySAP Financials key functional area : Management Accounting is comprised of application components in the Controlling (CO) and Enterprise Controlling (EC) areas. This involves recording oth the cumsumption of productio factors of production factors ang the services provied by an organization.

Master Data

The Controlling Area forms a framework within which CO processes cot and revenus elements transactions an all CO documents. The assigment of multiple company codes to a controlling area can be uesed to support centralized cost accounting for an entire organization.

Cost and revenue element accounting records and groups the cost incurred during a particular settlement period.

Overhead Cost Controlling

Overhead in planning, monitoring, control and coordination in such areas as research and development, procurement, work scheduling and maintenace is gaining more impotance.

The mySAP Financials Overhead Cost Controlling (CO-OM) component helps you plan, allocated, control, and monitor overheadin your organization. You can assign overhead to tehe cost centers where it accurred or to the activities that generated the overhead.

Cost Center Accounting

The Cost Center Accounting component determinies where cost appear in the organization. You should structure cost centers so that they represent areas of responbility, meaning that given person manages the cost with in that subarea. In the SAP R/3, cost accouting takes place within a defined controlling area. You must assign each center o a single controlling area.

Internal Order

The SAP R/3 anables you to monitor your internal orders throughout their entire life cycle; from initial creation, through the planning and posting of all the actual cost, to the final settlement and archving.

Activity Based Costing (ABC)

ABC is relatively new cost accounting method used by some companies to monitor cost by business process rather than cost centers. Costs that were previously hidden in various ovehead expanses can now be clearly identified and addressed.

Product Cost Controlling

Product Cost Controlling includes the following tools :

1. Product Cost Planning
2. Cost Object Controlling
3. Actual Costing
4. Information System

Product Cost Controlling can help you :

1. Paln your product costs accurately
2. Compare alternative cost estimares to optimze your business decisions
3. Monitor your product costs in every stage of the manufacturing process
4. Carry out detailed variance analysis on each order, product and product group
5. Calculate actual costs by period
6. Put alternative values on your inventory for balance sheet purposes
7. Answer recurring question on the cost of goods manufactured by plant product group, product or order
8. Answer one-of questions about the cost of goods manufactured

Profitability Management

mySAP Financial provides you with two tools for evaluating profitability in such a decentalized environment :

1. Profitability Analysis (CO-PA)
2. Profitabilty Center Accounting (EC-PCA)

Posting in Controling

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

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

1. Controlling object posted to
2. The cost element used
3. The amount
4. The date