Innowera - RDM: Management Accounting

Innowera - RDM: Management Accounting

RDM | Financials | Management Accounting

Management accounting provides valuation and recording of financial data as the basis for all cost- and revenue-related reporting.

Profit Center Accounting Assigns costs, revenues and balance sheet items to internal areas of responsibility to provide the basis for external segment reporting and internal reporting by profit center. Supports both the period accounting and the cost-of-sales approach. Can be implemented either as an extension of the general ledger to include the dimensions segment and profit center (new general ledger) or as a separate ledger specifically for Profit Center Accounting (classic general ledger).
 
Cost Center and Internal Order Accounting Records costs incurred during the company operations by assigning them to cost centers (assigned to managers or organizational units). Plans, records, and then analyzes costs against the plan. Uses internal orders to plan, collect, and settle the costs of internal jobs and tasks. Monitors internal orders throughout their entire lifecycle using the SAP system, from initial creation, through the planning and posting of all the actual costs, to the final settlement and archiving.
 
Project Accounting Monitors precise planning of the detailed activities involved in both large scale projects, such as building a factory, and small scale projects, such as organizing a trade fair. Helps the project manager ensure that the project is executed efficiently, on time, and within budget - which he or she achieves by ensuring that the required resources and funds are available as and when needed.
 
Investment Management Manages investments as fixed assets, research and development, or projects normally maintained under overheads. Does not limit the term investment only to investments capitalized for bookkeeping or tax purposes. Defines an investment in this context as any measure that initially causes costs, and that may only generate revenue or provide other benefits after a certain time period has elapsed (for example, plant maintenance projects).
 
Product Cost Accounting Helps a company know the costs incurred by its products in order to successfully manage the product portfolio. Calculates cost of goods manufactured (COGM) or cost of goods sold (COGS) broken down by each step of the production process. Uses cost information gathered about the product automatically in other SAP applications. Period close activities include the calculation of work in progress, variances and scrap and the settlement of product costs.
 
Profitability Accounting Records costs and revenues by market segment, which can be products and product groups, customers and customer groups, orders, or any combination of these or strategic business units, such as sales organizations or business areas, to calculate the contribution margin for each market segment.
 
Transfer Pricing Manages transfer prices, which support organizations that divide tasks among different organizational units by valuating the goods and services exchanged between these units. Aids particularly large corporations that are often divided into a number of independently operating divisions or companies that exchange large quantities of goods and services with one another. Lets transfer prices be used for controlling corporate units as the division of labor between internationally operating units increases, value-added chains become more complex and responsibilities become more decentralized. Valuates the exchange of goods and services using transfer prices, to significantly influence the actual success of corporate divisions or profit centers. Helps today's accounting systems provide decision support that represents operational results from different points of views and using different currencies. Also supports a corporate view that eliminates intercompany profit for sales of goods and services between companies.