What is the difference between SAP Financials and SAP Controlling?

Major difference between SAP Financials and SAP Controlling

Deactivation & Retirement of Asset

When asset is sold or scrapped with retirement posting, the asset value date is updated as deactivation date. You can also plan deactivation of asset by entering future date in deactivation date field asset master data.

ABGF and AB08

AB08 is used to Reverse the amount posted to an asset – reverses the asset document. ABGF is for passing a credit memo using an adjustment account(offsetting account) in the next year.

KO88 and KO8G

KO88 is used for settling single order (more like day to day work) used settlement to final asset KO8G is used periodical to select a group of internal orders used periodical posting for AUC

Asset History and Asset History Sheet

The Asset History is a report which shows the complete history of an asset. All information such as master data, depreciation area definition, development over the years of useful life. Further more this report uses SAP Script. The Asset History Sheet is a report which shows the value flow (= value history) for one year in the asset useful life.

Manual depreciation and Unplanned depreciation

Manual depreciation is when you use in the asset a manual depreciation key. Unplanned depreciation you use aditional on a Manual or an other depreciation rule.

GL Planning & Cost element planning

GL Planning would be carried out in FI and can be done for all P&L and B/S GL accounts. In case controlling is active then you can try for Cost element planning for P&L accounts. The Cost element planning will also be made use of for activity type plan price calculation in product costing.

BADI and USER-EXIT

i) BADI’s can be used any number of times, where as USER-EXITS can be used only one time. Ex:- if your assigning a USER-EXIT to a project in (CMOD), then you can not assign the same to other project. ii) BADI’s are oops based.

LIV and Normal Invoice document

LIV is useful for verifying goods which related to MM. When goods purchased or when received verifying the invoice details like quantity, rate, invoice number etc.,PO with the invoice. LIV is linked to FI and MM. But FI inovice is creating only in FI, it no where linked to any module. Entries are different in both cases.

Consolidated Business Area and Cost Center Grouping

Business consolidation is for more of consolidation purpose and cost center grouping is more for management reporting purpose for cost control purposes.Both the organizational units serve for different purposes. Consolidatied business will not have much meaning unless you go with EC-CS.Cost Center Groups are much for control purpose and help in managerial reporting.Business Units are part of FI Organizational Structure and Cost Centers are part of CO organizational structures.

COPA & PCA

In Profit Center Accounting Costs and Revenue are matched to find the profitability of the Investment Center. The shared services expenses are allocated equitably in between the profit centers to find our the accurate ROI of the Investment Centers. Here you will get the Segmental Profit and loss account. Whereas in the case of COPA, we get Product profitability upto Net income before Corporate tax. The Cost of Sales is matched with the revenue to get the gross margin per each product as well as marketing segment.

Then selling overhead and Corporate expenses are allocated to the products on the basis of revenue and we get EBITDA(Earnings before Interest, Debenture interest and tax. The Longterm Interest and debenture interest shall also be allocated to the products equitably. Consequently, it is able to know the profitability of the products before payment of tax.

TAXINJ & TAXINN

The only difference between TAXINJ & TAXINN is that TAXINJ is formula based tax procedure which is dependant to a large extent on routines to calculate taxes at each level. TAXINN on the other hand is condition based tax procedure which is very similar to the standard pricing procedure & is not dependant on routines and other programs to fetch taxes.

It is simply dependant on condition records maintained for each of the tax conditions. Prior to R/3 Enterprise we had only formula-based and from R/3 Enterprise version you will have the option of Formula-based or Condition-based. If you select TAXINN, it will support only condition- based excise determination.

And if select TAXINJ, you will have the option of Formula-based and Condition-based (in SD not MM). If you have future plans for extending your organisation to our new dimension product such as CRM….then using TAXINJ would mean that the formulas would need to be copied/rewritten to the CRM IPC. Where as you would not be required to do that in TAXINN….  So if you do not have any plans for extending SAP solutions in your organisation then you can use TAXINJ, else it is recommended that you use TAXINN only.

Controlling and enterprise contrilling

In controlling module you define the cost centres and in enterprise controlling you define the profit centres. SAP cannot generate the profit and loss acoount and balance sheet for every cost centre but can generate P&L and balance sheet for each and every profit centre. Enterprise Controlling is a separate module altogrther and consists of Consolidation and PCA as well. Whereas Controlling is a module which consists ofCCA,PA,Product Costing ,IO etc

Activity Types & SKFs

Stat key figures are just that they have no financial impact in Controlling but may be used for reporting and allocation purposes etc.Activity type are associated with a sender (usually cost centre with a specific rate). Activity type wil always carry rate against it where as SKF wont have any rate.. It means activity type is used for both allocation and absorption where as SKF can only be used for allocation.

Example – Activity types in production cost centers are machine hours or finished units.  Stat key figures are just that they have no financial impact in Controlling but may be used for reporting and allocation purposes etc. Activity type are associated with a sender (usually cost centre with a specific rate). When an activity posting is made with either CATS or KB21 a transfer posting is made for the quantity * rate .

This creats a CO posting between 2 different objects (sender and receiver) SKF is not a real cost object , it carries statistical posting only =so it solely for reporting and analysis. Hoewev activity type is use for cost allocation from one cost object to another. Activity type for example No of Employee, Production hr whcih we can use to charge production over head to production order.

CK91 and CK86

CK91 is creating a Procurement Alternative where you define that source of procurement for a said material / plant whether it would be stock transfer / production etc.. Where CK86 costing a material based on a Procurement alternative.

Production Order and Product Cost

Transaction for product cost collector is KKF6n. the product cost collector for that particular material,plant for repetetive manufacturing, production version it is used. As cost is collect and settle on period base. While the production order costing done on order bsae and settelment also carried for order. In REM settlement is against a period. Because production is not dependent by order. So to settle the cost for all the orders in certain period ex. for a month product cost collector is required.

In this product cost collector, cost will store for all the orders. In Production order or process order, settlement against each order. So no need to create product cost collector. In production orders can can be used as a Cost object. Since production order is a cost object the costs can be settled to the cost centers or Sales orders using the process order as a cost carrying object. When an activity posting is made with either CATS or KB21 a transfer posting is made for the quantity * rate .

This creats a CO posting between 2 different objects (sender and receiver) SKF is not a real cost object , it carries statistical posting only =so it solely for reporting and analysis. Hoewev activity type is use for cost allocation from one cost object to another. Activity type for example No of Employee, Production hr whcih we can use to charge production over head to production order.

CK91 and CK86

CK91 is creating a Procurement Alternative where you define that source of procurement for a said material / plant whether it would be stock transfer / production etc.. Where CK86 costing a material based on a Procurement alternative.

Production Order and Product Cost

Transaction for product cost collector is KKF6n. the product cost collector for that particular material,plant for repetetive manufacturing, production version it is used. As cost is collect and settle on period base. While the production order costing done on order bsae and settelment also carried for order. In REM settlement is against a period.

Because production is not dependent by order. So to settle the cost for all the orders in certain period ex. for a month product cost collector is required. In this product cost collector, cost will store for all the orders. In Production order or process order, settlement against each order. So no need to create product cost collector.

In production orders can can be used as a Cost object. Since production order is a cost object the costs can be settled to the cost centers or Sales orders using the process order as a cost carrying object.

Also See: An Introduction about Controlling