SAP Controlling (CO) is another important SAP module offered to an organization. It supports coordination, monitoring, and optimization of all the processes in an organization. SAP CO involves recording both the consumption of production factors and the services provided by an organization.

SAP CO includes managing and configuring master data that covers cost and profit centers, internal orders, and other cost elements and functional areas.

The main purpose of SAP controlling module is planning. It enables you to determine variances by comparing actual data with plan data and thus enables you to control business flows in your organization.

SAP CO Integration with Financial Accounting

Both SAP CO and SAP FI modules are independent components in a SAP system. The data flow between these components takes place on a regular basis.

Data flows relevant to cost flows to Controlling from Financial Accounting. At the same time, the system assigns the costs and revenues to different CO account assignment objects, such as cost centers, business processes, projects or orders.


Below are the main areas of SAP CO module (Can be called “sub-modules” of SAP CO):

Cost Element Accounting (CEL)

Here you are going to deal with cost and revenues of a company.

Cost Center Accounting (CCA)

Assigns an allocation to every overhead cost within a company.

Activity-Based-Accounting (ABC)

Activity-Based Costing analyses the business processes between departments. The objectives of the company and the improvement of business flows are prioritised.

Internal Orders (OPA)

Used to control budgets for some extra small projects expenses carried out inside a company.

Product Cost Controlling (PC)

Used to calculate the cost of goods manufactured within a company.

Profitability Analysis (PA)

Analyses the loss or profit within a company through market segments.

Profit Center Accounting (PCA)

Analyses the behaviour of loss and profit of every area of the company.


SAP CO Books

Suggested books

  • TERP01 SAP ERP Business Process and Basic Navigation
  • TERP20 SAP ERP Financial and Management Accounting Basics
  • SM001E Introduction to SAP Solution Manager
  • TFIN20 Management Accounting (CO) I
  • TFIN22 Management Accounting II
  • AC410 Cost Center Accounting
  • AC612 Profit Center Accounting in New General legder Accounting
  • ACO40E Business Processes in Management  Accounting
  • AC415 Internal Orders
  • AC605 Profitability Analysis
  • AC410E Cost Center Accounting
  • AC506 Basics of Product Cost Planning
  • CA705 Report Painter
  • AC522 Cost Object Controlling for Make – to – Order Production Industries.
  • AC405 AC405_95 Cost Center & Internal Order Accounting
  • AC505 AC505_95 Product Cost Planning
  • AC520 AC520_95 Cost Object Controlling
  • CA705 Report Painter
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