Business area in SAP?

Business Area:
 1.Business area means to specific business segments of a company and may cut across different company codes.
2.They can also represent different responsibility areas

3.based on which we can create financial statements for various internal
reports.






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Cost Component Examples

The following are the cost components examples:

1.Raw Materials
2.Personnel costs
3.Production costs
4.Overhead: Material
5.Overhead: Production
6.Overhead: Administration
7.Overhead: Sales and distribution
8.External activities
9.Other costs

what is 'CO objetcts?

1.An organizational element in SAP controlling application,the object class classifies CO objects according to their business function enabling to analyze costs flows within CO from different business perspectives.

2.in addition to the functional area,the object class determines or explains certain values in the external accounting components.

3.The object classes include:
* Investments
*Overhead
*Production
*Profitability analysis and sales

Commitment in SAP CO?

1.Commitment is a contractual or scheduled commitment (purchase orders,purchase requisitions).
2.these are not yet reflected in FI but it will lead actual expenditure in the future.
3.In simple words,commitments are reserve funds for costs will be incurred in the future

Commitments enter due to following CO objects:
1.CO  production orders
2.Cost centers
3.Internal orders
4.Maintenance orders
5.Network activites
6.sales orders
7.production orders
8. Projects

SEGMENT REPORTING:
1.Segment reporting defined as a separate financial information prepared and evaluated
by operating decision maker with in the organisation.
2.This maker usually has authority to allocate resources and judge performance of the each business unit within the organisation.
3.it is quite important that segment data can be prepared towards to make thoughtful and correct decisions about such particular business unit.

What are the different phases in Controlling?

The following are the different phases in controlling
1.Planning
2.Monitoring
3.Reporting
4.Consulting
2.Informing

What is the meaning of "Organizational units" in SAP FI?

1. The elements or structures representing the functions of business is called "organizational units".
2.These are used for reporting purpose across the organization.
3.Examples as follows:
     * Company
     * Company code
     * Business area
     * Consolidated business area
     * Functional area
     * Credit Control Area
     * Functional Management area
     * Profit Centre
     * Segment