Profitability Management

with

© SAP AG 2000 filename (author) / 1

Overview
1 2 3 4 5 Imagine you are a Sales Business Analyst Introduction into Profitability Management Transferring Actual Data to Profitability Analysis Profitability Planning Profitability Reporting in mySAP.com

© SAP AG 2000 filename (author) / 2

Portal for a Sales Business Analyst / Tasks
Analyze Market Development • Market growth / Market share • Trends in demand and prices • Trends in technology Workpla ce of a Sales Business Analyst Analyze Sales Figures • Sales by office / regions and customers • Sales by products Analyze Profitability and Margins • Gross margins by customer • Evaluate the efficiency of field service and promotional activities • Contribution margins by products Early Warning Indicators Sales Budgets • Coordinate sales activities by setting goals
© SAP AG 2000 filename (author) / 3

eb browser access

• Analyze the current sales pipeline

Portal for a Sales Business Analyst / Screens

Workpla ce of a Sales Business Analyst

eb browser access

© SAP AG 2000 filename (author) / 4

The Workplace with MiniApps © SAP AG 2000 filename (author) / 5 .

com © SAP AG 2000 filename (author) / 6 .Overview 1 2 3 4 5 Imagine you are a Sales Business Analyst Introduction into Profitability Management Transferring Actual Data to Profitability Analysis Profitability Planning Profitability Reporting in mySAP.

Variances .Overhead costs Transfer of Operating profit overhead Plan Customizing © SAP AG 2000 filename (author) / 7 . costs Contrib.Fixed prod.Direct costs using cost.Rebates sti nNet revenue gs Valuation . margin II FI .Integrated Business Model to Collect Revenue and Costs Documents Value flows SD Planning FI COPC COPC COOM Act. Transfer of Sales quantity billing docs Sales revenue Direct po .Var. costs estimates Contrib. prod. margin I .

..Views of Profitability Management Responsibility Accounting Profitability Analysis by Market Segments Revenue Discounts COGS Contr..Margin Marketing .. Profit ROI . 2000 468 230 1000 12 Profit Centers Procurement Production Distribution Sales © SAP AG 2000 filename (author) / 8 . 2000 100 460 1440 230 Profitability Segments Revenue Salaries Material ...

Profitability Analysis by Market Segments Region Business Unit Product Customer Sales office Reporting Dimensions Sales Quantity Sales Revenue Customer discount Sales commission Direct sales costs Net revenue Direct material costs Variable production costs Contribution margin I Material overhead Fixed production costs Contribution margin II Variances Contribution margin III Overhead costs Operating profit © SAP AG 2000 filename (author) / 9 Determine and analyze the profitability of market segments Revenue t rofi P Cost oss L .

balance Answers and financial ratios by Profit Center Profit ROI Equity Turnover Return on Sales Economic Profit Invested Capital © SAP AG 2000 filename (author) / 10 .Responsibility Accounting by Profit Center Accounts Profit Centers Reporting Dimensions Sales Revenue Sales Deductions Cost of Goods Sold Operating Profit Liabilities Accounts Receivables Invested Capital in Assets Inventory Cost of Capital Return on Investment Determine and analyze profit.

Integrated Business Model V A L U E F L O W COOM Manufacturing Administration Marketing Sales COPC Standard costs Variances COPA FI Business Process Procurement Production Goods movement Sales/Billing MM © SAP AG 2000 filename (author) / 11 PP MM SD .

Organizational Units Operating Concern ProfitabilitySegment ProfitabilitySegment Controlling Area Controlling Area Company Codes Company Codes Company Codes Sales Organization Plant Distribution Channel Customer Customer © SAP AG 2000 filename (author) / 12 .

PROD. S U C P. GROUP Profitability segment Value Fields Revenues Discounts COGS 800 100 650 Revenue Discounts COGS © SAP AG 2000 filename (author) / 13 .Basic Concepts of CO-PA Characteristics Sales Region Product Product Group Customer Customer Grp State Sales Rep Values North Prod1 Electronics Cust1 Wholesale Illinois Miller REGION R G T.

Product Cust.grp State District Sls rep.grp Cust.grp Cust.BU Sls reg.grp State District Sls rep.Characteristics Derivation Concept Customer group Input Strat. SB SR PZ G1 S1 D1 R1 P1 C1 C1 D1 Product Product group S1 Strategic business unit P1 R1 P1 C1 PZ Sales region Sales rep. SB R1 SR SD DERIVATION COPA © SAP AG 2000 filename (author) / 14 .BU Sls reg. Product Cust. Prod. Prod. Customer G1 District State Output Strat.

Valuation Concept Input Billing Document Customer 1000 Product P-100 Quantity 10 Revenue 10. costs Special handling Revenue Sales commision 10 5.800 200 10. prod. costs Fixed prod.200 1. costs Sales commision Special handling COPA 5200 1800 500 200 SD Valuation © SAP AG 2000 filename (author) / 15 . Var.000 Discounts 1.000 … … Quantity Var.000 500 Quantity Output 10 10000 1000 Revenue Customer Disc. prod. costs Fixed prod.

Ergebnisbereich-Templates © SAP AG 2000 filename (author) / 16 .

com © SAP AG 2000 filename (author) / 17 .Overview 1 2 3 4 5 Imagine you are a Sales Business Analyst Introduction into Profitability Management Transferring Actual Data to Profitability Analysis Profitability Planning Profitability Reporting in mySAP.

Sources of Value Fields SD Billing Document CO-PC Quantity Sales Revenues Sales Deductions Cost of Goods Sold Variable Cost of Goods Mfd Fixed Cost of Goods Mfd Cost Estimate FI Bonuses General Ledger Posting Freight Costs CO-OM Cost Center Order Process WBS Element Network Operation Production Order Additional Costs Sales and Administration Costs Marketing Costs Variances Research & Development Costs Production Variances Estimated Discounts Estimated Bonuses PS CO-PC-OBJ CO-PA © SAP AG 2000 filename (author) / 18 .

COGS ..... Disc.Transfer Billings Document to CO-PA: In Detail FI-Document FI SD Billingdocument Header : Customer 47 SD Item 10: Product A Item 20: Product B SAVE Info missing ? NO CO PA Release to Accounting YES Derivation error Error in accountdetermination Cost estimate not found © SAP AG 2000 filename (author) / 19 Line-item 1 Line-item 2 Customer 47 Product A Revenue .. .. .

Reconciliation Report FI / SD and CO-PA Rel.5 © SAP AG 2000 filename (author) / 20 . 4.

/./. prod. overhead costs sales dept.Source Related Allocation of Overhead Costs Kunde/Artikel Kunde/Artikel Customer A/ Kunde/Artikel Product 1 revenue rebates ./. Company revenue : : : CM1 : CM2 : : CM3 : : : CM4 . var./. costs CM2 . costs CM1 . overhead Cost Centers cost center “production“ cost centers “sales dept.“ cost center “administration“ CM4 Operation Profit © SAP AG 2000 filename (author) / 21 ././. Product Group 1 revenue : : : CM1 : CM2 production variances CM3 Customer Group 1 revenue : : : CM1 : CM2 : : CM3 . fix prod. net revenue .

Direct Posting of Sales Costs © SAP AG 2000 filename (author) / 22 .

Overview 1 2 3 4 5 Imagine you are a Sales Business Analyst Introduction into Profitability Management Transferring Actual Data to Profitability Analysis Profitability Planning Profitability Reporting in mySAP.com © SAP AG 2000 filename (author) / 23 .

Planning on Different Levels Sales Organization Marketing Expenses Customer Group Distribution Expenses Customer Product group Sales Volumes Revenues Product Cost of Goods Sold © SAP AG 2000 filename (author) / 24 .

12.00 .00 Record Type: F Planning Method Parameter Set © SAP AG 2000 filename (author) / 25 Change Planning Data Planning Layout Currency Distribution Key Number Format .Elements in Planning Characteristics Planning Level Sales Organization: South Division Customer Group Product Characteristic Values Plan Package Division: Pumps Customer Group: Industrial Product: * Period/Year: 01.

Overview of Planning Framework Planning level Planning package Planning package Planning package Definition Screen Planning method Parameter set Parameter set © SAP AG 2000 filename (author) / 26 .

New Planning Framework Status of the planning package All automatic planning functions included © SAP AG 2000 filename (author) / 27 .

process costs  Forecast  Settlement of order planning data and project planning data Sales and Promotions Budget  Transfer of quantities to/from SOP  Event planning  Monitoring of sales deals © SAP AG 2000 filename (author) / 28  Transfer of planning data to/from LIS  Transfer of planning data to PCA  Transfer of planning data to F/GL  Retraction of BW-Data .The CO-PA Planning Functions: Overview Manual Planning  Customizable planning layout  Integrated Excel  Planning @Web Planning Aids  Revaluations  Valuations Planning in CO-PA Integrated Planning Automatic Planning Functions  Copying/deleting/adapting plans  Top-down distribution  Transfer of cost center costs/  Period dist.

Co olate rap ext Plan proposal Are objectives attained ? Rew ork te Initia ons ecti corr Reference data Ag re e Objectives by ... Bottom-up planning ct lle Co Va lu at e © SAP AG 2000 filename (author) / 29 Valuated plan In te of tra gr co ns ate st fer d pl s an s Br do eak w n Co m pa re Complete contribution margin plan Valuate Annual goals .New Planning Functions in a Process View py.

Two Different Roles Planning Coordinator Planning Coordinator  Coordinates and  Coordinates and organizes the planning organizes the planning process process  Configurates the planning  Configurates the planning process in the system process in the system  Decides what should be  Decides what should be planned planned  Decides who should plan  Decides who should plan what what Operative Planner Operative Planner  Contributes his  Contributes his business knowledge as business knowledge as an end user an end user  Receives a personalized  Receives a personalized view of his planning view of his planning  Does not need any  Does not need any knowledge of the knowledge of the planning process and planning process and technical aspects technical aspects © SAP AG 2000 filename (author) / 30 .

.New Planning Functions in a Process View py.. Bottom-up Planning ct lle Co Va lu at e Valuated plan © SAP AG 2000 filename (author) / 31 In te of tra gr co ns ate st fer d pl s an s Br do eak w n Co m pa re Complete contribution margin plan Valuate Annual Goals . Co olate rap ext Plan proposal Are objectives attained ? Rew ork te Initia ons ecti corr Reference data Ag re e Objectives by .

Manual Planning of Annual Goals Full Excel Macro functionality available © SAP AG 2000 filename (author) / 32 Fix SAP Sheet and flexible Customer Sheet .

000 250.000 120.000 10. (Plan) Revenue (Qty * M1) Record type F Year 2000 Reference version: Actual data Customer Group Price (Ratio M1) 01 02 03 25.000 150.000 10.Planning with a Ratio Scheme Ratio Scheme A: Record type F Year 2001 Version 1. plan version Customer Group Sales Qty.00 15.00 12.00 Ratio M1 = Revenue Quantity © SAP AG 2000 filename (author) / 33 .000 01 02 03 10.

Method: Distributing Entire Values Plan Values Prod. group Pumps Nonassigned Total Credit Revenues 2000 1000 3000 -3000 Value to be distributed Reference Data Product Prod. group Pumps Pumps Revenues 1/3*3000 = 1000 2/3*3000 = 2000 Result © SAP AG 2000 filename (author) / 34 . group Quantity in '99 P1 100 Pumps P2 200 Pumps Result: Distributed Values Product P1 P2 Prod.

.New Planning Functions from a Process View py. Bottom-up Planning ct lle Co Va lu at e Valuated plan © SAP AG 2000 filename (author) / 35 In te of tra gr co ns ate st fer d pl s an s Br do eak w n Co m pa re Complete contribution margin plan Valuate Annual goals . Co olate rap ext Plan proposal Are objectives attained ? Rew ork te Initia ons ecti corr Reference data Ag re e Objectives by ..

Classic Layout © SAP AG 2000 filename (author) / 36 .

Profitability Planning @ Web © SAP AG 2000 filename (author) / 37 .

Integrated Excel © SAP AG 2000 filename (author) / 38 .

New Planning Functions in a Process View py. Co olate rap ext Plan Proposal Are Objectives Attained ? rew ork te Initia ons ecti corr Reference data ag gr ee Objectives by ... Bottom-up Planning ct lle co va lu at e © SAP AG 2000 filename (author) / 39 Valuated Plan In te of tra gr co ns ate st fer d pl s an s Br do eak w n co m pa re Complete Contribution Margin plan valuate Annual Goals .

Integration of Planning COOM Cost center Internal orders COPA ECPCA Projects PS ABC Business Process © SAP AG 2000 filename (author) / 40 .

com © SAP AG 2000 filename (author) / 41 .Overview 1 2 3 4 5 Imagine you are a Sales Business Analyst Introduction into Profitability Management Transferring Actual Data to Profitability Analysis Profitability Planning Profitability Reporting in mySAP.

Checking Your Planning Results in Reporting © SAP AG 2000 filename (author) / 42 .

0 BW 2.0 BW InfoSource (InfoObjects) Mapping DataSource (Characteristics / Value fields) Flow of Metadata OLTP R/3 © SAP AG 2000 filename (author) / 43 CO-PA Metadata Flow of Transaction Data CO-PA .Extraction of Data from CO-PA to SAP BW SAP BW Server InfoCubes BW 2.

Web-Enabled Drilldown Reporting With the help of MiniApps. report data is placed right at your fingertips You can draw report data by executing reports from your personal user's role menu © SAP AG 2000 filename (author) / 44 .

The Workplace with MiniApps © SAP AG 2000 filename (author) / 45 .

 .

$4:7.94341 ./4898 :3/0.90/4.0#0.070..

790 :3/0.

790 :894207.

:3/0.

9 70.790 !74/:.03:0 .

908 30970.03:0 .  70-.

4898  . ..7 574/ .

1574/ .4898  .

03:0          .974:5  70.08  :89420774:5  70.943 .7.03:0       574/:.  !74/:..3.

03:0              .4898 8.  4./.070.08/059 425.3 70.

489.03907 574/:.489.489.:947 .039078 8.20 .943!7419 489039078 .03907 .  4.943  $! 103.070.943 ./23897.08/059 ./ 507.

 .

084898 $! 103.20 .:947 .70.9!489341$.

 .

02039 %7..-9.9:.42 $! 103.-9!.20 .-9#05479332$! .304:.3810773..:947 .89 3974/:.07.0      2.70.3.94!7419.943394!7419.$.08:830883.9.88 !7419.333 !7419.-93.

 .

03:08 4894144/8$4/ $! 103.:947 .20 .08'4:208 #0.!.08 .7093 503808 897-:943 503808 $.3334311070390.

 .

 !74/:.0203983!.90789.9 .7.3 !.0 $.943$4:9 .90789.'.0 .8 !.:08 !.3..843!:258 :89420774:53/:897.843 :89420774:5 !74/:..333 .08 7..7..9 !074/.3330.

7    #0.333. 897-:9430 :2-07472.9.9 $! 103.20 .:947 .4:9 :7703.7.333094/ !.20907$09 !.30!. !.0.47/%50 .333.

 .

3335.:947 .0 013943$.7003 !.3330.3332094/ !.20 .041!.0 !..3335.20907809 !.3337..3335.0 !..0 !..2047 !.7.7..07...20907809 $! 103.

 .

:947 .:/0/ $! 103.2047 $9.94383.3335.9:841905.5..333 1:3.0!.9.3337.20 .0 ..:942.

 .

!.-0 5.333:3.:.333/8  #0..9.0  !.3:.:.9438  !074//89  470.333.9438  '.333:3.89 !.90/.9438 .9438  453.3330!.333  :8942.4:9  3907.!.0 .07.%0 !!.333 3  ! :942..

/0093.

38  %45 /43/897-:943 3907.4898.03907..333  %7.3810741.5935.489./.90/!.

3/5740. 574.3990894. .9.333/.38107416:.4898  $099020394147/075.9.088.  %7.333/.95.

9.38107415.94.1742$ !  %7.333/.

333/.94.94!  %7.1742$  %7.9.333/.38107415.38107415.9.

$.333  43947341 8.:947 .3/!74249438:/09  .8 $! 103.0395.08/0.  #097.9..94341 .08.20 .

 .

333:3.08 .!74.99.4397-:943 2. -0.0!.30/ 33:.:.90/ 5.9.3 '.0 /.8 #010703.333 425090 .735.9.088'0 !.3 574548.:947 . 4. 70 4-0.9.08 - 49942 :5 5.20 .3 $! 103.94383.

 .

.507843.3 .08 .04185../084 84:/5.08839088902  0.3/ 47.850.0!.3/ 90.333447/3.333 574.308905.8 .303/:807  #0./08.908 905.9 84:/-0 5.9.3307  4397-:908 8 -:83088340/0.3.333  408349300/.3 340/04190 5.908 .088.088  431:7.20 .333574.%41107039#408 !.330/  0.947  447/3.333 574.0.98 $! 103.9 507.0/ .:947 .

 .

-0.20 .333 425090 . 4.088'0 !.3 '.3 574548.333:3.8 #010703.9.!74.90/ 5.9.0!.9.3 $! 103. 70 4-0.08 .:.30/ 33:.4397-:943 2.735.0 /.:947 .08 - 49942 :5 !.99.94383.

 .

.!..9.8 :..:947 .943.20 .74 1:3..-0 $! 103.3334133:.3:.4..0.

3/ 10-0:894207$009 . $!$009.

020 #.#.08"9 !.7  '07843  5.07843 :894207 74:5 $.!.9:.3.94 #0.0.:947 .020 #0.03:0 "9  #0. :894207 74:5 !7.94$.3 #0.47/950 0.7 #010703.3339.399 $! 103.94$.07843.9.0 #./.20 .47/950 0.03:0 ":.94                #.

 .

:08 !.9 ! ! !74/ 74:5 !:258 !:258 #0.:08 !74/:.0.9 !74/ 74:5 ":.03:08 .3'.:08 !74/ 74:5 !:258 43.3993  !  !:258 !  !:258 #08:9897-:90/'.:094-0 /897-:90/ #010703. 70/9 #0.094/897-:933970'.9.8830/ %49.03:08     '. !74/:.

   .

:947 .20 .   #08:9 $! 103.

 .

3 $! 103.94381742.!74.333 425090 .9.08 .90/ 5.:947 .9.30/ 33:.99.20 .3 574548.4397-:943 2. -0. 70 4-0.0!.:.3 '.9.333:3.088'0 !. 4.8 #010703.0 /.08 - 49942 :5 !.735.

 .

4:9 $! 103.:947 .20 ...88.

 .

20 .333 0$! 103.-9!.:947 .!7419.

 .

:947 .90/.0 $! 103.20 .3907.

 .

9. -0. 4.333:3.735.30/ 33:.08 - 49942 :5 !.8 #010703.3 '.08 99.90/ !.088'0 !.94383. 70 -0.9.9.:947 .0!.20 .!74.333 425090 4397-:943 .3 !74548.:.0 /.3 $! 103.

 .

20 .088 $! 103.94341!.333   489.47/078  !   ! !740.:947 .3907.98 !$ :83088 !74.03907 39073.

 .

$.08:830883.-9!.:947 .304:.9:.3.3810773.-9.-93.333 !7419.20 .-9#05479332$! .07.9.89 3974/:.02039 %7.94!7419.88 !7419.943394!7419.0      2.42 $! 103.70...

 .

333#08:983#054793 $! 103.:947 .34:7!.20 .0.

 .

553 ..9.0 ..8.7.94341.$4:7.0 314 -0.97.07  314:-08 314$4:7.98 .90789.1742 !94$! $!$07.9.

'./.:010/8  ! 09.38.9..  ! %!#. 441 %7.9.943 .

20 . $! 103.:947 .

 .

.-00.705479 /.94:71307958 4:.:947 .9. :807 8740203: $! 103..9.0/79 .3/7.20 .0- 3.-0/7/43#054793 9900541 3558 705479 /.:937054798 17424:7507843.85.

 .

093558 $! 103.20 .:947 ..%0475.

 .

Sign up to vote on this title
UsefulNot useful