Hi kathikeyan,
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.
Reward if helpful.
Thank you,
Regards.
Bluesky
