Answer / akesh agrawal

Controlling Area:
An organizational unit within a company, used to represent
a closed system for cost accounting purposes.
A controlling area may include single or multiple company
codes that may use different currencies. These company
codes must use the same operative chart of accounts.
All internal allocations refer exclusively to objects in
the same controlling area.

Profit center:
rofit center is an organizational unit in accounting that
reflects a management-oriented structure of the
organization for the purpose of internal control.Profit
Center Accounting evaluates the profit or loss of
individual, independent areas within an organization. These
areas are responsible for their costs and revenues.

Cost Center:
Cost Centers are the organizational units within a
controlling area that represents a location where costs
occur. Organizational divisions can be done on the basis
of functional, settlement-related, activity-related,
region/section/department related, and/or responsibility-
related, to monitor actual and plan figure standpoints
where cost is captured.

Cost Element:
All Profit and Loss GL account defined in Finance Chart of
account shall be created, as Cost Element This is in order
to avoid Reconciliation of FI and CO module. As soon as
Cost element is created in controlling module one needs to
give Cost object to it. Cost Object could be Material, Cost
Center, Internal Order, Production Order etc.
Two Types of CE:
Primary CE- Primary cost elements, which are based on GL
accounts.
Secondary CE- Secondary cost elements are used only in CO
booking in case of
transfer/allocation/Distribution/Recovery of cost within
Controlling.

Internal Order:
An internal order is used to accumulate cost for a specific
project or task for a specific time period. An internal
order is therefore used for a short period with a specific
deadline.

Cost center, Profit center, Internal order & Cost element
above all under controlling area they are link each other.
they cost object where cost and revenue collect.

If i wrong please let me know right details..

Answer / madhu

Mr. Murali
I think FI12 is for change House Bank.
How is this related to this Question can u explain me,I
have a doubt.
Plz don't mind da

Answer / sujji

Thank you for ur answer.
but i want brief description of that question.
please any one give me reply.

Answer / chandu

hi,

controling area means, it is individual area which we find
out the actual costs and incomes, based on this information
we can decide whether we hav to control costs and incomes
from the tht area. area means productr services.

cost center indicate of actual cost of the product to
produced r to get. it is part of controling of costs.

internal order means to get the raw meterial from the
godown to the production area, we hav to cofigure steps to
posting data raw meterial like meterial type, cost, etc.

profit center indicate the actual profit of each product r
serves.

these are inter related with each other. these are used to
find the actual cost incured and incomes gained. based on
this we can control the cost of producing products.

this information as of my knowledge, if der is any wrong,
pls ignore, then send me right answer to my id:
dearchandhu@gmail.com

Answer / murali

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