Controlling - more than just control

SAP Business One has a number of tools to support companies in controlling. This does not only mean cost centre accounting, which is a module of the Financial management in SAP Business One. After all, controlling that is only based on posted accounts is no longer sufficient to depict the various facets of this important business area.

But what is that actually? Controlling?

The word is - for those who know English - simple at first. Because ?to control? stands for check, control and monitor. However, the internal accounting often referred to as 'controlling' ? or also management accounting. But let's stay with controlling.

Basically, there is a whole range of definitions. Controlling is also defined as the system for the total Planning, Management and control to increase economic efficiency within a company. Cost and performance accounting forms an important basis for this. The results are predominantly relevant for internal accounting. All measures of controlling thus become a good decision-making basis for the management: in the determination of goals, the implementation and improvement of all processes.

The planning, management and control of corporate strategies are thus the tasks of controlling. By means of target-performance comparisons - so-called deviation analyses - the reasons for deviations can be determined and new measures can be defined. In reality, this procedure often fails because the 'controller' himself has no decision-making power and is dependent on approval from management. This is a problem that does not necessarily arise with a system solution, since the management itself has access.

It should be self-explanatory that the constant access to analyses from cost and performance accounting is advantageous for decision-makers. The various sub-areas of controlling are also worth mentioning, as they explain the field of activity well.

For personnel decisions

Personnel costs, control, deployment, development and optimisation. As an often large part of operational costs, this part requires much... Controlling!

For purchasing

As in-house production in manufacturing companies has shrunk, purchasing costs (procurement costs) have taken on a new significance. materials management is therefore also emphasised in controlling with a corresponding reporting system.

For projects

That Project controlling is an important part of project management. Today, especially in large projects, it is necessary to track the progress and constantly optimise the planning. Personnel resources and tasks can be managed efficiently by means of controlling. Project reporting always shows the current status in terms of costs, time and the various milestones.

For IT

The enormous IT infrastructure used in most companies should ensure improved management of IT costs through IT controlling (calculate IT projects well).

For the green image

A fairly new field - yet relevant for more and more companies that would like to hang the eco-sign in front of their doors. "Eco-controlling" of measures and units of measurement such as CO2 is helpful here.

SAP B1 blog