In today's competitive business environment, cost management is crucial for maintaining profitability and ensuring efficient operations. SAP, the global leader in enterprise resource planning (ERP), offers powerful tools to manage and control overhead costs within an organization. One such tool is SAP Overhead Cost Controlling (CO-OM), a critical component of the SAP Controlling (CO) module.
Whether you're a business professional or an aspiring SAP consultant, understanding how overhead cost controlling works in SAP is vital. This guide will walk you through the essential steps involved in managing overhead costs using SAP and why enrolling in the right SAP training in Pune can enhance your skills in this domain.
What is overhead cost controlling in SAP?
Overhead cost controlling (CO-OM) in SAP is the process of planning, recording, allocating, and analyzing indirect costs that cannot be directly assigned to a product or service.
SAP enables businesses to control and distribute these costs effectively using various organizational elements such as
Cost Centers
Internal Orders
Activity Types
Statistical Key Figures
Key Components of Overhead Cost Controlling
Internal Orders:
Temporary cost collectors used to monitor specific jobs, tasks, or initiatives.
Activity-Based Costing (ABC):
Helps allocate overhead costs more precisely based on actual consumption.
Statistical Key Figures (SKF):
Quantitative data used for cost allocation (e.g., number of employees, square footage).
To master these components, it’s highly recommended to enroll in a structured SAP course in Pune, which provides real-world examples and hands-on training.
Steps to Perform Overhead Cost Controlling in SAP
1. Organizational Structure Configuration
The first step is setting up the controlling area, cost centers, cost center groups, and activity types. This structure defines how data will flow and be reported.
2. Cost Planning
Plan for future costs by forecasting expenditures for each cost center. SAP supports several planning methods:
Manual entry
Excel integration
Top-down planning
3. Cost Recording
Actual overhead costs are recorded through integration with other SAP modules like FI (Financial Accounting), MM (Materials Management), and HR (Human Resources).
4. Cost Allocation
Common allocation methods include:
Distribution
Assessment
Periodic reposting
Each method has specific use cases and impacts reporting differently.
5. Monitoring and Reporting
You can use tools like SAP Fiori and SAP Analytics Cloud for enhanced visualization.
6. Period-End Closing
During month-end, execute processes like
Allocations
Accruals
Settlements
Reconciliations
Why Learn Overhead Cost Controlling with SAP?
Understanding overhead cost control helps businesses:
Improve budget accuracy
Identify cost drivers
Make informed decisions
Enhance transparency across departments
Professionals with knowledge of CO-OM are in high demand across industries, making it a valuable skill set for accountants, controllers, and SAP consultants.
If you’re located in or near Maharashtra, taking SAP classes in Pune is an excellent way to gain these skills locally.
Best Place to Learn SAP in Pune—Why Choose SevenMentor?
When it comes to finding the best institute for SAP classes in Pune, SevenMentor stands out for several compelling reasons:
Experienced Trainers
SevenMentor boasts a team of certified SAP professionals with years of industry experience. Trainers use real-life business scenarios to ensure learners understand how overhead cost control is applied in actual work environments.
Hands-On Training
The curriculum is designed with a focus on practical implementation. Students get access to SAP servers, allowing them to practice configuring cost centers, internal orders, and allocations in a real-time system.
Comprehensive Course Structure
Whether you're a beginner or looking to upskill, SevenMentor offers the most inclusive SAP course in Pune, covering SAP CO along with FI, MM, and SD modules.
Placement Assistance
SevenMentor provides placement support to help students secure jobs in top MNCs. The institute has a strong network of hiring partners across Pune and India.
Flexible Learning Modes
Choose from classroom-based SAP training in Pune, online sessions, or weekend batches—tailored for working professionals and students alike.
Student Success Stories
Hundreds of students have launched successful careers after completing their SAP course in Pune at SevenMentor. Alumni now work in leading companies like Infosys, Wipro, Capgemini, and Accenture.
Their testimonials often highlight how SevenMentor’s practical approach and personalized mentoring made a real difference in their learning journey.
Final Thoughts
Overhead cost controlling in SAP is a vital process that helps businesses manage indirect expenses efficiently. From planning and recording to allocation and reporting, SAP’s CO module offers comprehensive functionalities that streamline cost management.
If you’re looking to gain expertise in this domain, consider enrolling in a professional SAP training in Pune. Among the many options, SevenMentor is widely regarded as the best institute for SAP classes in Pune, thanks to its expert faculty, hands-on approach, and stellar placement track record.
So whether you're a finance professional or a fresh graduate aiming to enter the ERP world, mastering overhead cost controlling through a structured SAP course in Pune can open doors to exciting career opportunities.