What is period accounting in SAP CO - Controlling?

SAP Term: period accounting

• Component: CO

• Component Name: Controlling

• Description: A type of presentation that shows all the costs of a period. Whereas cost of sales accounting includes only the costs incurred for the revenue received an increase in the finished goods inventory cannot be reported as revenue, period accounting includes all the costs of the period, regardless of whether the corresponding revenue was earned in that period.

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• Key Concepts: 
  Period accounting is a feature of SAP Controlling (CO) that allows users to record and analyze financial data in a period-based format. This feature enables users to view and analyze financial data in a more organized and efficient manner. It also allows users to compare financial data from different periods, which can be useful for budgeting and forecasting. 
  
  How to use it: 
  To use period accounting, users must first set up the period structure in the SAP system. This involves defining the start and end dates of each period, as well as the number of periods in the fiscal year. Once the period structure is set up, users can enter financial data into the system for each period. This data can then be used to generate reports and analyze trends over time. 
  
  Tips & Tricks: 
  When setting up the period structure, it is important to ensure that all periods are correctly defined and that there are no gaps between them. Additionally, it is important to ensure that all financial data is entered accurately and consistently for each period. This will help ensure that reports and analyses are accurate and reliable. 
  
  Related Information: 
  For more information on period accounting in SAP Controlling (CO), please refer to the official SAP documentation or contact your local SAP support team.