The 123s of ABC in SAP: Using SAP R/3 to Support Activity-Based Costing / Edition 1by Dawn J. Sedgley, Christopher F. Jackiw
Pub. Date: 08/09/2001
Activity-Based Costing (ABC), a method that measures the cost and performance of activities, resources, and cost objects, is becoming increasingly adopted in today's market as more and more companies realize that the current generation of systems can efficiently support it. As companies continue to make a huge investment of both money and effort in their SAP system… See more details below
Activity-Based Costing (ABC), a method that measures the cost and performance of activities, resources, and cost objects, is becoming increasingly adopted in today's market as more and more companies realize that the current generation of systems can efficiently support it. As companies continue to make a huge investment of both money and effort in their SAP system, they seek ways to incorporate the benefits of Activity-Based Costing into their current SAP system.
The 123s of ABC in SAP shows corporations exactly how the ABC approach can be effectively incorporated into today's SAP systems. While SAP training teaches what buttons in the system to push and ABC courses and workshops teach the philosophy, consultants Dawn Sedgley and Christopher Jackiw provide the first documentation on how to apply the ABC philosophy to the SAP costing engine-in short, how to use the tool to support the ideas.
The book is designed for readers with advanced knowledge of the ABC framework but does not assume the reader has any familiarity with the SAP R/3 application. In clear, nontechnical language, the authors provide a basic explanation of SAP R/3, specifically, the Controlling Module (CO) including the CO-ABC component. The SAP-CO module, which is the costing engine of the system, is based on the German costing philosophy, which is being augmented and repackaged under the name Resource Consumption Accounting for the U.S. market. You will learn the difference between the American and German philosophies, the benefits of using them together, and what management decision information they can provide.
To assist you in grasping the concepts, the book takes a pictorial approach. Illustrations are also completely linked and built upon, effectively generating a large-scale case study whose lessons you can apply to your needs.
As large companies shift to enhancement-type projects once their SAP implementations have been completed, effective implementation of SAP ABC will become ever more critical to the success of your company. A must for CFOs, controllers, cost managers, SAP project managers, SAP-C level leaders, and SAP-CO team members, The 123s of ABC in SAP will provide valuable answers to the critical question, "How can I maximize my investment in my SAP R/3 system?"
Table of Contents
LAYING THE FOUNDATION.
Cost Management: A Brief History and the Convergence of Philosophies.
Systems Support of the Activity-Based Costing Philosophy: Stand-alone Analytical ABC versus Integrated ABC.
Overview of SAP and Integrated Activity-Based Costing.
Evolution of SAP's Integrated Activity-Based Costing.
SAP R/3 INTEGRATED ACTIVITY-BASED COSTING.
Integrated Activity-Based Costing with Responsibility Accounting.
Integrated Activity-Based Costing with Overhead Order Accounting.
Integrated Activity-Based Costing with Product Costing and Production Control.
Integrated Activity-Based Costing with Market Segment Analysis.
Integrated Activity-Based Costing.
BEYOND SAP R/3 INTEGRATED ACTIVITY-BASED COSTING.
SAP Integrated Activity-Based Costing Combined with Oros Modeling Capabilities.
Activity-Based Costing/Management with Strategic Enterprise Management.
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