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