What is plan reconciliation in SAP (CO - Controlling)?

SAP Term: plan reconciliation

• Component: CO

• Component Name: Controlling

• Description: A tool used to check and reconcile the exchange of activities between cost centers. This is necessary to ensure that the receiver cost centers do not use more activities than were planned at the sender cost centers.

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• Key Concepts: 
  Plan reconciliation is a process in SAP Controlling (CO) that compares actual costs to planned costs. It is used to identify and analyze variances between the two, and to ensure that the budget is being followed. The process involves comparing the actual costs to the planned costs for a given period of time, and then analyzing any differences between the two. 
  
  How to use it: 
  Plan reconciliation can be done manually or automatically in SAP Controlling. To do it manually, users must first enter the actual costs into the system, and then compare them to the planned costs. Once the comparison is complete, users can analyze any differences between the two and take corrective action if necessary. To do it automatically, users must set up a plan reconciliation job in SAP Controlling. This job will run on a regular basis and compare the actual costs to the planned costs, and then alert users of any discrepancies. 
  
  Tips & Tricks: 
  When setting up a plan reconciliation job in SAP Controlling, it is important to ensure that all of the necessary data is included in the job. This includes both actual and planned costs, as well as any other relevant information such as cost centers or cost elements. Additionally, it is important to ensure that the job is set up to run on a regular basis so that discrepancies can be identified and addressed quickly. 
  
  Related Information: 
  Plan reconciliation is closely related to cost center accounting in SAP Controlling (CO). Cost center accounting involves tracking and analyzing costs at a more granular level than plan reconciliation does. Additionally, plan reconciliation can be used in conjunction with other processes such as budgeting or forecasting to ensure that budgets are being followed and that future plans are realistic.