Controlling (CO) offers information to decision makers for planning, measuring and monitoring enterprise’s operations and performance. It represents the internal accounting view of an organization.
All data relevant to cost and revenue flows are created from various sources such as Financial Accounting (FI), Materials Management (MM), and Sales and Distribution (SD). The cost and revenue flows will update FI and simultaneously create equivalent postings into CO.
As part of this process, the system assigns the costs and revenues to different CO account assignment objects like cost centers, orders, or profitability segments. The relevant accounts in FI are managed in CO as cost elements or revenue elements.