Management accounting is the support system for the organization management in its decision-making, be it in terms of planning, monitoring, or reporting of the business processes.
Management accounting is designed to assign data from business transactions to CO objects in order to make clear who is responsible for operational expenses and revenues. To do this, you need to assign direct productions costs as well as auxiliary costs and revenues into organizational cost objects.
1. Organizational Units #
Organizational objects of management accounting are:
- Conrolling area.
- Profitability segments.
- Cost centers.
- Projects.
- Internal Orders.
Most of them are considered cost objects:
| Cost element/object | Question | Assign Revenues | Assign Costs | CO Posting Type |
| Profitability segment | How profitable | Real/statistical | ||
| Sales order | For what | X | X | Real/statistical |
| Project / WBS element | For what | X | X | Real/statistical |
| Internal order | For what | X | X | Real/statistical |
| Production order | For what | X | ||
| Cost center | Where | X | Real/statistical | |
| Profit center | In which area | Only statistical | ||
| (Bus.) segment | Only statistical |
2. Controlling data of a G/L account #
In the General Ledger Account, set the cost element category field to determine which cost elements of controlling (CO) can be used for which business transaction.
3. Modules #
3.1. Cost Element Accounting #
Cost Element Accounting deals with the collection of costs and it is used to summaize costs, providing an overview of the costs and revenues of an organization (Overhead Cost Controlling). Most of the values are moved automatically from FI Accounting
The costs are separated according to a functional criteria (material costs, personnel costs, depreciation costs, and so on) and managed on cost elements.
3.2. Overhead Cost Controlling #
Overhead costs are costs that are not unique to a specific product. These costs are assigned to cost objects such as cost centers or projects (which are cross-cost center). The aim of overhead cost controlling is the planning and actual calculation of overhead costs.
3.3. Product Cost Controlling #
Product Cost Controlling is used to calculate the costs during the manufacture of a product or provision of a service.
Product Cost Controlling enables you to calculate the minimum price to market the product profitably.
3.4. Cost Object Controlling #
3.5. Margin Analysis #
3.6. Profit Center Accounting #
X. Related objects #
Text for related objects.
X. Practical examples #
Text for examples.
X. Related transactions and apps #
Text for related transactions.
trans x
transaction detail
trans x
transaction detail
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