In SAP Controlling, a company code determines which cost component structure the standard cost estimate uses, which ensures that the same cost component structure is used for all plants and costing variants in a company code.
Since SAP launched SAP R/3 in 1992, it has tried to provide a technical solution to support financial consolidations. Technology has evolved since then, and SAP’s underlying architecture has taken advantage of those technology innovations.
With the bringing together of the controlling and management accounting applications in the Universal Journal, the functionalities of general ledger accounting are available in controlling (and vice versa).
In the SAP ERP system with classic general ledger accounting, profit centers were purely controlling objects and in a separate submodule. This is not the case in SAP S/4HANA.
Let’s discuss how period-end close has been heavily simplified by SAP S/4HANA Finance. First we’ll look at how a period-end schedule could look in SAP ERP to calculate current project margin reporting.