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Real-time integration of cost accounting with financial accounting

When allocations are made in Controlling, postings are usually generated that have no effect on financial accounting. These postings do not update any G/L account transaction figures, but are purely postings within Controlling. However, if an allocation in Controlling leads to a change in the functional area or another characteristic that is relevant for evaluations in financial accounting, there is a shift between the affected items in the income statement. This information must therefore be transferred to financial accounting. This reconciliation between Controlling and Financial Accounting takes place via real-time integration.

Real-time integration enables the immediate transfer of all controlling documents to financial accounting. This means that financial accounting is reconciled with controlling at all times.

A document is created in Financial Accounting for every posting in Controlling. As a result, all detailed information that is also contained in the CO documents is available at all times in the reports of the new general ledger, structured according to e.g:

  • Functional area
  • Cost center
  • Internal order

Integration

The real-time integration we have implemented replaces the reconciliation postings listed above. Each cost element involved in a transfer posting that is relevant for the P&L is assigned a general ledger account. Each allocation in Controlling then leads to an assigned general ledger item via real-time integration.