BUSIN ESS BL UEPR T FOR SAP ECC 6.

0 IN IMPLEMENTATION AT

GUJARAT GLASS (P) LTD. INDIA (JAMBUSAR, KOSAMBA) SL (RATMANALA, NATTANDIYA) MODULE CO CONTROLLING

Document Information
Project Name:

Gujarat glass private limited

SAP ECC 6.0 Implementation

Project Director: Opportunity Roadmap Phase: Quality Review Method: Prepared By: Reviewed By:

Document Version No:

3.0 27/10/2006

Business Blueprint Preparation Review Method Giri Chandran

Document Version Date:

Preparation Date: Review Date:

15/09/2006 25/10/2006

Distribution List
From Date Phone/Fax

Giri Chandran
To Action*

27/10/2006
Due Date Phone/Fax

Mr A Balaji HP Mr. V. Rajshekar

Acceptance/Signoff

* Action Types: Approve, Review, Inform, File, Action Required, Attend Meeting, Other (please specify) Version History
Ver. No. Ver. Date Revised By Description Filename

Ver. 1.0 Ver. 2.0 Ver. 3.0

14.09.06 15.09.06 28.09.06

Giri Chandran

New Document

Draft Version

GGPL_BBP_CO_Ver1.0.doc GGPL_BBP_CO_Ver2.0.doc GGPL_BBP_CO_Ver3.0.doc

Giri Chandran Giri Chandran

Modified the document to Include flow charts. Modified the document to modify the list of GAPS, to modify the list of reports, to include US & UK Processes.

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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Ver. No.

Ver. Date

Revised By

Description

Filename

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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CONTENTS
1 Executive Summary.............................................................................................................................6 1.1 Background ..............................................................................................................................6 1.2 Enterprise Resource Planning (ERP) Project Objectives.........................................................................7 1.3 Overview of Blueprint Phase .........................................................................................................7 2 CO Module Introduction .....................................................................................................................9 2.1 Introduction ...............................................................................................................................9 2.2 CO Value Flows in SAP...............................................................................................................9 3 4 5 CO Module Integration with Other Modules..........................................................................................11 CO Organization Structure ................................................................................................................13 CO Master Data .............................................................................................................................14 5.1 Controlling Area.......................................................................................................................14 5.2 Cost Center Standard Hierarchy..................................................................................................14 5.3 Cost Elements ..........................................................................................................................14 5.4 Profit Center Standard Hierarchy .................................................................................................15 5.5 Internal Orders.........................................................................................................................15 6 Business Process Mapping to SAP ECC 6.0 ..........................................................................................16 6.1 Cost Element Accounting............................................................................................................16 6.2 Cost Center Maintenance ..........................................................................................................20 6.3 Activity Type Maintenance .........................................................................................................21 6.4 Statistical Key Figure Maintenance ...............................................................................................22 6.5 Cost Allocation ........................................................................................................................23 6.6 Internal Orders.........................................................................................................................26 6.7 Product Cost Controlling ............................................................................................................28 6.7.1Ingredients of Product Cost ...................................................................................................28 6.7.2Creating, Marking and Releasing of Standard Cost Estimate ......................................................28 6.7.3Repetitive Manufacturing Process - Bottles. ...............................................................................29 6.7.4Discrete Manufacturing process - Semifinished Products..............................................................30 6.7.5Period End Closing for both Repetitive Manufacturing and Discrete Manufacturing Processes ............30 6.8 Profit Center Accounting ............................................................................................................32 6.9 Profitability Analysis ..................................................................................................................35 7 8 9 10 11 Mapping Of As-Is Processes in Blueprint Document .................................................................................38 Reports ..........................................................................................................................................40 Identified GAPS..............................................................................................................................43 Annexure A: Summary Of Requirements ................................................................................................44 Annexure B: US and UK Business Process .............................................................................................53 11.1 Background ............................................................................................................................53

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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....................................................................................................................................5...............................................................................5.................................................................................................................................................................................................5.......4 CO Master Data................56 11.............................4.................................................................83 11.........confidential - Page 5 of 86 ................4.................................................6Internal Orders .2.......................60 11.............2CO Value Flows in SAP ...........5 Business Process Mapping to R/3 .............................................8Profit Center Accounting......................1Cost Center Standard Hierarchy ......9Profitability Analysis .......66 11...................61 11......................................................................3Profit Center Standard Hierarchy.............................................4Statistical Key Figure Maintenance ........................................61 11........11.....................................................................................................6 Reports.................................7 GAPS ........................................................86 SAP ECC 6..................4..............................5..............................................................54 11..59 11.......................................................................................73 11....................................................................58 11................................................................................5................................................................1Introduction.............................................................65 11........................................4Internal Orders ...5.....77 11...54 11...............................................................................................2..67 11..5..........7Product Cost Controlling..2........68 11................4.......................................................................................2Cost Center Maintenance.............................................2Cost Elements......................59 11...................................................................................3Activity Type Maintenance............................................1Cost Element Accounting...2 CO Module Introduction ...54 11.............59 11.................71 11.............5....................................3 CO Organization Structure..........................................................................................................3CO Module Integration with Other Modules ...........................................................59 11.......0 Business Blueprint for GGPL Controlling Module Hewlett-Packard ...5Cost Allocation.................80 11..................5.....................

W e have included Nattandiya plant in blueprint document with express understanding that addition efforts required will be suitably addressed via change management.confidential - Page 6 of 86 . SAP ECC 6. produces 7 million glass bottles and vials every day throughout the year for quality conscious customers in the healthcare and cosmetics industry. GGPL has requested to include the same in scope. In all. Nattandiya plant was not part of the scope originally. many of which are electronically controlled state-ofthe-art machines. J ambusar plant is the world's largest pharma amber bottles manufacturing plant at a single location.0 covering J ambusar. The specific solution in the scope of this document comprises of Implementation of SAP ECC 6.1 EXECUTIVE SUMMARY BACKGROUND Gujarat Glass (P) L imited [GGP ] is a leading manufacturer of glass based products for pharmaceutical and L cosmetic industries. the 7 furnaces of the company with 27 automatic production lines.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . USA & UK. Kosamba (in India) & R atmalana (in Sri L anka) plants. The GGPL product profile covers Pharmaceuticals Cosmetics/Toiletries Stationery Liquors Sand Polythene sheets The production capacities at Kosamba Plant are 5 Furnaces and 18 lines The production capacities at Jambusar Plant are 1 Furnaces and 6 lines The production capacities at Ceylon glass Plant are 1 Furnaces and 3 lines The production capacities at Nattandiya Plant are Two sand processing units & one Polythene sheet machine.1 1. The manufacturing facilities are spread out in different parts of the world like India. The scope of implementation is in India & Sri Lanka. Sri Lanka.

from this point forward the dual role of both official project scope as well as system acceptance criteria.0 Modules.0 standard business processes Adhere to business basic's and use SAP as a model for best business practices 1. The Blueprint and its associated appendices present a summarized perspective of all functional business processes that will be implemented. At the conclusion of the blueprint. The information was gathered through interviews conducted at the GGPL plant with the managers. The SAP ECC 6. documentation and relevant reports using Q & A db from Value SAP methodology.confidential Page 7 of 86 . key users and personnel from Information Systems.3 OVERVIEW OF BLUEPRINT PHASE This document summarizes the findings of the Hewlett-Packard (HP) consulting team. GGPL has decided to implement an integrated ER solution and have selected SAP ECC 6.Major expansion plans for capacity increase are already on anvil. After successful commissioning of those projects. as well as through reviews of business processes. The immediate purpose of the analysis is to prepare to move forward rapidly with the implementation of GGPL 's SAP ECC 6. HP is the P Implementation Partner for SAP ECC 6.0. GGPL will further consolidate its position as market leader in Glass Industry. SAP ECC 6. business procedures.0 system. which conducted requirement analysis of GGPL for the SAP ECC 6.0 system. the HP consultants will determine the SAP functionality required to run the GGPL business. Blueprint document will serve .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .2 ENTERPRISE RESOURCE PLANNING (ERP) PROJECT OBJECTIVES Objectives for the implementation project are: Implement SAP ECC 6. which are being implemented in Phase 1.0 implementation. are FI/CO SD PP MM QM WM HR Financial Accounting and Controlling Sales and Distribution Production Planning & Control Materials Management Quality Management Warehouse management Human resources 1.

enterprise area.by both teams .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .0 functionality through routine configuration tasks are not explicitly documented. The project team should discuss this list with agreement on the approach going forward.0 functional process flows to be implemented at GGPL Generally. certain key requirements are explicitly identified and summarized to highlight their importance to GGP and to document the L approach proposed to meet the requirement. One section of the report summarizes identified gaps. The HP team believes that SAP ECC 6.confidential - Page 8 of 86 . The Blueprint reiterates the SAP ECC 6. However. and SAP ECC 6.is required to move the project into the next phase. requirements that can be met using standard SAP ECC .0 organizational structures that have been identified and will serve as the basis for the initial configuration activities. 6.0 environment. Acceptance . it is critical that both the HP and GGPL team agree on the scope of the project as presented in this document. N o significant configuration choices have been identified that will prevent the future implementation of additional capabilities within the SAP ECC 6. The information gathered and documented in the Blueprint is sufficient for the team to go forward into the R ealization phase.The body of this document describes the organizational structure.0 Additional resource commitment The deferral of a feature to a later phase Simply the recognition and acceptance of a limitation. Acceptable approaches may require: Additional programming or technical effort R ecognition and acceptance of procedural changes ("W orkarounds") using standard SAP ECC 6. SAP ECC 6. However.0 can accurately model GGPL's organizational requirements.

and production variances settled from cost objects. settlements of cost from internal orders. SAP ECC 6.0 modules (external costs). by virtue of its basic design. costs from cost centers (as production activities are performed or from overhead allocation).confidential - Page 9 of 86 . CO covers both the operational and the strategic aspects of management. It provides information for managers . In addition to direct postings from FI. CO represents the internal accounting perspective. Profitability Analysis can receive cost assessments from cost centers. 2.2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. receives statistical cost postings from virtually all other CO components. costs can be posted to cost centers and internal orders from other SAP ECC 6. Cost centers can then allocate costs to other cost centers and orders. There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling. Cost objects (such as production orders.those who are inside an organization and are vested with directing and controlling its operations.) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object). If an organization divides accounting into internal and external viewpoints.1 CO MODULE INTRODUCTION INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process. W ithin the Overhead Cost Controlling area. Profit Center accounting.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . etc.2 2. Value flows can occur for many different purposes.

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 10 of 86 .The following graphic illustrates the integration within CO Value Flows: SAP ECC 6.

3 CO MODULE INTEGRATION WITH OTHER MODULES Controlling provides you with information for management decision-making. variances and price differences are settled to CO-PA. the system assigns the costs and revenues to different CO account assignment objects. Typically. an expense is posted to the GL At the same time.0 is a primary source of data for Controlling. SAP ECC 6. as well as the entire organization.g. business processes. The relevant accounts in Financial Accounting are managed in Controlling as cost elements or revenue elements.0 modules generate data that has a direct impact on CO. such as cost centers. monitoring and optimization of all processes in an organization. Other SAP ECC 6. These variance calculations enable you to control business flows. Therefore. if the sales order item is a cost object. the main task of controlling is planning. It facilitates coordination. CO-PCA and FI. The Production Planning (PP) and the Sales and Distribution area of Logistics also works very closely with Controlling. the expense . all data relevant to cost flows automatically to Controlling from Financial Accounting. or depreciation postings from Asset Accounting (FI-AA).0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . At the same time. This enables you to compare and reconcile the values from Controlling and Financial Accounting. overhead surcharges. contribution margin accounting. In addition. projects or orders. is posted as a cost to the cost center (or other object in CO) for which the items have been purchased. This involves recording both the consumption of production factors and the services provided by an organization.g. sales order item) and by doing the period closing data like W IP. Income statements such as. planned personnel costs can be transferred to CO as input to CO planning. cost of goods issues. Consumption of activities. The Financial Accounting application area of SAP ECC 6. PP-production order. These expense postings to the G/ L could be manual journal entries. You can determine variances by comparing actual data with plan data. when nonstock consumable items are purchased. when doing a goods issue to a controlling object or a goods receipt from production).. That cost center's costs may later be passed on as overhead to a production cost center or elsewhere in CO. For example. The data flow between the two components takes place on a regular basis. The Human R esources (HR modules can generate several types of cost postings to Controlling. most expense postings to the General L edger would result in a cost posting to CO. The HR ) system allows you to allocate the cost of work to different Controlling (CO) objects. Integration Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. The L ogistics area of SAP ECC 6. process allocations and direct primary costs can be posted to the cost object (e. As well as documenting actual events. are used to control the cost efficiency of individual areas of an organization. Revenue postings can also be created by a journal entry to the G/ L and would also typically generate postings in CO to CO-PA and Profit Center Accounting.0 also has numerous integration points with Controlling (e. The billing document can incur revenues directly to CO-PA or to the sales order.confidential Page 11 of 86 . accounts payable postings.

confidential - Page 12 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .SAP ECC 6.

. Profit Center Hierarchy would enable GGC to track costs at the origin in a more efficient manner. Controlling Area. Controlling Area GGC would be created for Gujarat Glass Consolidated (GGPL CGCL The finalized .)..4 CO ORGANIZATION STRUCTURE Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes.confidential - Page 13 of 86 . SAP ECC 6. Introduction of Controlling concepts viz.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Profit centers are designed based on the Processes. Controlling Organizational Structure would be as follows: Organizational Units for GGPL Client: 400 Operating Concern Company Controlling Area Cost Centers Profit Centers GGPL PIR UK CGCL GG US GGI HO KOS JAMB BADDI RURKI RTH NTH HO FTR Business Area / Plant WTN MLD Detailed list of Cost Center hierarchy and Profit Center Hierarchy considering GGC are enclosed in the annexure. Cost Center hierarchy.

it is mandatory that the posting be made using both a cost element and a cost object (cost center. and responsibility areas.5 5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 5.3 COST ELEMENTS In SAP. All expense related G/ L accounts in FI are made Primary Cost Elements in CO.confidential Page 14 of 86 . SAP ECC 6.2 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. using a drill-down system. 5. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. The cost center is the main SAP ECC 6. These are not represented by GL accounts in FI. The method works according to the keys defined by the user. some objects are created only in CO termed as Secondary Cost Elements . To the standard hierarchy of cost centers are attached all the cost centers created for a Company code. other cost centers) under a cost element. Each controlling area has a unique standard hierarchy. activities.the root of the hierarchy. without any effect in Finance module. internal order etc. To the highest node .0 structure used to allocate costs in the exact point of their appearance. The difference between FI and CO is that in CO. locations. The Company Code allocated to the Controlling area must use the same operating chart of accounts and the same fiscal year variant. used to measure the internal flows of values between different cost objects. used to assure the instant reconciliation of the postings. Other than this. The criteria used to create them are: function.1 CO MASTER DATA CONTROLLING AREA The Controlling Area is the business unit where Cost Accounting is carried out. the highest node is created when maintaining the Structure.) Secondary cost elements Secondary cost elements are accounts created in controlling only. Secondary cost elements are used for allocations and settlements. No cost center can be created without an allocation to one level in the standard hierarchy. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. to measure the internal flow of costs between Cost objects. there are attached the nodes for each company code.

5. N o profit center can be created without an allocation to one level in the standard hierarchy. To the highest node the root of the hierarchy. the revenues of an organization.0 structure used to allocate costs in the exact point of their appearance. The profit center is the main SAP ECC 6. in some instances. areas of operation. The criteria used to create them are: divisions. these are attached the nodes for each company code.5.5 INTERNAL ORDERS An instrument used to monitor costs and.confidential - Page 15 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . using a drill-down system. SAP ECC 6.4 PROFIT CENTER STANDARD HIERARCHY The Profit Center Standard Hierarchy is similar to that of the Cost Center Standard Hierarchy that collects together all the profit centers created in a Controlling Area. Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control . There can be only one Standard Hierarchy for a company code.

Most of the values are moved automatically from Financial Accounting to Controlling. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. there is no concept of Cost Element. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. SAP ECC 6. 12 Sales Deductions This cost element category can be used to post deductible items. 31 Order / Project Results analysis Used to store result analysis data.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000.Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. 41 Overhead . Cost and Revenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. Business Mapping to SAP ECC 6. internal orders) using an assessment cost element. 11 Revenue Elements This cost element category can be used to post revenues. The cost element category determines which cost elements can be used for which business transactions.1 BUSINESS PROCESS MAPPING TO SAP ECC 6. SAP distinguishes between: Primary Cost Element Categories Secondary Cost Element Categories The Primary Cost Element Categories are: 01 General Primary Cost Element This cost element category can be debited for all primary postings. profitability segments and cost centers. The costs are apportioned according to an allocation base (tracing factor) defined by the user. Assessment can be run for both plan and actual values.0 COST ELEMENT ACCOUNTING Requirements and Expectations At present.6 6. Assessment is a method of internal cost allocation in which costs are apportioned from a sender cost center to receivers (cost centers.confidential - Page 16 of 86 .0 SAP will use the concept of Cost Elements to track the flow of costs between FI / CO and flow of costs internal to CO (which arises due to reposting / distribution / assessment).

g. Depending on the cost elements chosen (for e. Cost element groups can serve various purposes.confidential - Page 17 of 86 . Cost Element Groups is created for Cost Center Assessment Cycle.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Cost element groups Cost elements with similar characteristics can be collected in the form of Cost Element Groups. they can be used to create reports or to process several cost elements in one business transaction. and Cost Component Structures etc. excluding secondary cost elements for drawing up P statement on profit &L centers) reports can be drawn up. Description of Improvement This will provide capability for detailed recording of data that forms the basis for cost accounting. Allocation Structures. Special configuration consideration No Special configuration required. since GGC has the same operative chart of accounts all the P&L GL accounts will be created as cost elements. Cost elements are per controlling area. For example. Settlement Profiles. Description of Functional Deficit No deficits Approaches to covering Functional Deficit Not Applicable Pictorial Overview of Cost Elements (Primary and secondary) SAP ECC 6.

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Process Flow Chart Primary Cost Element Secondary Cost Element SAP ECC 6.confidential - Page 18 of 86 .

confidential - Page 19 of 86 .0 Business Blueprint for GGPL Controlling Module Yes Hewlett-Packard .P&L General Account exists in CAAS Requirement for Secondary Cost Element This account is a Primary Cost Element Whether G/L A/C exists Yes Can-not be made secondary Cost Element Is a new P & L GL Account neccessary No No End Create Secondary Cost Elements Then the new GL Account is first to be created by the competent person in HQ at CAAS level It is then created as a Primary Cost Element at HQ Cost Element Groups Cost Element Group Combination of Cost Elements with Similar Characteristics SAP ECC 6.

confidential - Page 20 of 86 . and/ or responsibility-related standpoints. activities.2 COST CENTER MAINTENANCE Requirements and Expectations In the existing system. Cost Centers for individual company codes under GGC will be created and will be assigned to the respective cost center group. Special Configuration consideration Standard SAP ECC 6.6. Business mapping to SAP ECC 6. Change to cost centers can be made individually or collectively. You can thus determine when the budget is exceeded and carry out timely availability checks. These categories are used to lock the posting of revenue posting into cost centers and also these categories can be used for reports and evaluations. Cost Center Planning and Budgeting Cost center planning involves entering plan figures for costs.0 A standard hierarchy will be created for the Controlling Area (GGC). costs incurred are captured in cost centers. activity-related. You can then determine the variances from these figures when you come to compare these plan values with the costs actually incurred. The actual cost centers are attached to this cost center group. Cost center budgeting provides a further method of planning in addition to primary cost and secondary cost planning.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. settlement-related. spatial. This standard hierarchy has cost center groups attached to it. This tool enables you to carry out a comparison between actual postings and plan budgets. Cost Center Hierarchy Cost Center Hierarchy enclosed in annexure. Organizational unit within a controlling area that represents a clearly delimited location where costs occur. prices or statistical key figures for a particular cost center and a particular planning period. Description of Improvement Efficient monitoring of costs through cost centers. You can make organizational divisions on the basis of functional.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

The variation in cost between one cost center and the other for the same activity type is taken care during the cost planning.0 Activity types describe the activity produced by a cost center and are measured in units of time or quantity. activity type LAB will be common for both C&P glass and Pharma glass manufacturing. A cost center can be assigned one. But the cost will be different because.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. activity planning will be done at the respective production cost centers. multiple. Business mapping to SAP ECC 6. Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and . For example. activity dependent cost elements planning will be carried out individually. they are linked to work centers in PP.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department.6. For example. or no activity types.3 ACTIVITY TYPE MAINTENANCE Requirements and Expectations There is no concept of activity types in the existing system.confidential - Page 21 of 86 . One particular activity type can be assigned to one or more cost centers. Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6. Activity types classify the activities produced in the cost centers within a controlling area.

to allocate costs from a sender to a receiver.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.0 Statistical Key Figure The statistical key figures are used in various distribution cycles.6. based on the requirement of cost allocation. at period-end closing. Business mapping to SAP ECC 6.4 STATISTICAL KEY FIGURE MAINTENANCE Requirements and Expectations There is no concept of Statistical key figures in the existing system. SKF can be used across all the company codes.confidential - Page 22 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6.

Telephone costs are collected on a cost center for each period & then can be allocated using the process of reposting or distribution/ assessment cycles at the end of the period according to the number of telephone units or telephone installations in each cost center. These are indirect allocation methods for which user-defined keys such as percentage rates.confidential - Page 23 of 86 . statistical key figures. enabling the allocation to be recorded exactly. The allocation is done using Distribution Cycles by specifying rules for the settlement of primary costs on a cost center Main features of this process are as below: The original cost element is retained in the receiver cost center Information about the sender and the receiver is documented in the Controlling document. Cost allocations are performed under controlling area (GGC). each company codes can allocate their costs using the Standard allocation tools provided by SAP. SAP ECC 6. During this process. Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers. amounts. Only primary costs can be reposted.5 COST ALLOCATION Requirements and Expectations In the existing system costs are booked only in financial records and the concept of apportionment to respective departments is done for reporting purpose. For example.6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .0 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting. the costs collected on a cost center during the accounting period are allocated to receivers. Business Process Mapping to SAP ECC 6. Under this procedure. L items are posted for the sender as well as ine for the receiver. or posted amounts provide the basis for cost/quantity assignment. Periodic reposting can be reversed and repeated as often as required. These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once. Distribution Distribution is a method of internal cost allocation that allocates primary costs. the original cost element remains the same. Distribution & Assessment.

g. other cost centers.Pictorial depiction of Distribution: Assessment Assessment is a method of internal cost allocation by which the costs of a sender cost center is allocated (transferred) to receiver CO objects (orders.confidential - Page 24 of 86 . The method works according to the keys defined by the user. The concept and procedure would remain the same for profit center Assessment and Distribution cycles. and so on) under an assessment cost element (category 42). E. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Further analysis is available through CCA reporting. It is used when it is unimportant or not possible for the user to know the break down of costs that a cost center will receive in an allocation. allocating general & administrative costs.

0 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6. Special Configuration consideration Standard SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Pictorial depiction of Assessment: Description of improvements A systematic approach to distribute costs and revenues between CO objects.confidential - Page 25 of 86 .

0 An Internal Order is an extremely flexible CO tool that can be used for a wide variety of purposes to track costs within a controlling area. in which company codes under if required can create Internal Orders for capturing costs for shot term simple projects and also for statistical reporting. and settle the costs of internal jobs and tasks. e. Any new order is created under an order type that results in transfer of certain parameters to the order. Internal orders will be used for capturing costs for short term simple projects and also for statistical reporting. Internal Orders are created at controlling area level and at company code level. Internal order once created will be referred in raising a Purchase order in the account assignment category. This information includes a range of default values that are used when a new order is created with this order type.0 Description of Functional Deficit No SAP ECC 6.g. Order Type An order type has a large amount of control information important to order management. Internal orders are normally used to plan. to the final settlement and archiving Business mapping to SAP ECC 6. This is mandatory to capture the costs / expenses on the internal order against a budget. from initial creation. monitoring. collect.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . It is named as per following naming convention: Sitename . Order Type 300 is TLV Maintenance Internal Order.6 INTERNAL ORDERS Requirements and Expectations There is no concept of Internal Orders in the existing system.Purpose Internal Order. and allocation of costs.confidential Page 26 of 86 . Internal orders provide capabilities for planning. Special configuration consideration Standard SAP ECC 6. The SAP system enables you to monitor your internal orders throughout their entire life-cycle.6. through the planning and posting of all the actual costs. Description of Improvement Internal order would help in planning. budgeting and tracking the costs of a particular nature of expense / cost. All the above order for each Co code is defined as a separate order type.

confidential - Page 27 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Approaches to covering Functional Deficit Not Applicable SAP ECC 6.

0 Product costing is a tool for planning costs and establishing prices for materials.7 P RODUCT COST CONTROLLING Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. Labor Cost: The number of Labor hour time would get picked up from R outing master. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export.7. R Materials will be valuated at moving aw average price and Semi Finished Materials will be valuated at standard cost estimate. the Standard Cost Estimate is created. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. on creation of the Standard cost SAP ECC 6. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module.7. The system uses the results of cost estimates to valuate material movements in Logistics. Product costing is carried out at the plant ) level. for material valuation. Batch Cost: In SAP. Thus. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .2 CREATING. at the beginning of the period. The following process will be applicable for all manufacturing companies like GGPL.6. Material valuation is carried out at the Plant level. R materials are maintained at Moving Average Price. packing cost and conversion cost. 6. 6. marked and released for both Finished Products and Semi Finished Products. CGCL and GGI US. when a Standard aw cost estimate is being created the system would take the latest weighted average Price from the material master and the same would be the standard cost of the material for the period.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. Conversion Cost Overhead Cost The Overhead cost would get calculated as per the parameters given in the overhead-costing sheet maintained in the Valuation Variant. Conversion cost includes labor cost and overheads.confidential - Page 28 of 86 . So. It enables you to calculate the minimum price at which a product can be profitably marketed. or provision of a service. All costing data is stored with reference to a plant. the number of units required for completion of a Finished Product would be picked up from Bills of material and the value per unit from Material Master. Business mapping to SAP ECC 6.

confidential - Page 29 of 86 .estimate. In GGC.3 REPETITIVE MANUFACTURING PROCESS . The activity quantities that are to be confirmed are defaulted on the basis of the routing Used for the preliminary cost estimate. Process: Product Cost Collector is created at the time of Production Process. The Inventory will be valuated at Standard price. For normal production of glasses the R epetitive Manufacturing process will be followed. the process involves creation of a preliminary cost estimate for the cost collector.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . the costs per material or per production version are determined via a product cost collector (product cost per period). Repetitive Manufacturing Process is applicable for products that are continuously made in high volumes. Order types are separate for this process. The production version is linked to the Cost Collector through the Production Process number. This apart. Product Cost Collector: In SAP. Packing cost and Conversion cost. with the facility of periodic settlement. Suitable repetitive manufacturing profile is to be updated in the material master record to be able to back flush a material.7. This Production Process number is updated in the manufacturing orders assigned to the Product Cost Collector. The Conversion cost would get picked up from the Planned Activity price maintained and Overhead costing sheet. The material cost would get picked up from the latest weighted average price as on the date of creating the standard cost estimate from the material master. They hold the control mechanism like the planning and settlement profile. the Standard Cost Estimate would include both Batch cost. The Costing Sheet is picked from the valuation variant from the Costing variant. 6. On Marking the new price would be calculated and get reflected in the Future Planned Price of the material master. The system auto creates a settlement rule and the receiver is always a Material. SAP ECC 6. On R eleasing the Future planned price would become the Present Price. The marking and releasing of standard cost estimate would happen at the beginning of a period as described.The costs for a period can be viewed through the Product cost collector. it would be marked and released. a separate Cost Collector is defined for the Production version. In repetitive manufacturing. This would be assigned a unique Costing and Valuation variants.BOTTLES. The Controlling link is established because the system picks the Planned and Actual Costing Variants from the Order Type.

With back flush the materials are issued to production and the finished goods posted to warehouse. Mould Manufacturing.confidential - Page 30 of 86 . Goods receipt against production order. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. Confirm production order. WIP means all debits Minus Credits of a production order. at which location.5 PER IOD EN D CL OSIN G FOR BOTH R EPETITIVE MAN UFACTUR G AN D DISCRETE IN MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1. Sand and Polythene. Production Orders: A Production order defines which material is to be processed. 2.7. Discrete manufacturing will be used for production of Molten Glass.e. 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Issue materials against production order.7. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. at what time and how much work is required.4 DISCRETE MANUFACTURING PROCESS . manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard.SEMIFINISHED PRODUCTS Discrete manufacturing (i. So with all these links the standard costing estimate could be run for the materials. Discrete Manufacturing: WIP gets calculated through a standard transaction. 6. In SAP. Process: Creation of Production Order. WIP would be calculated only for Open Production Orders. It also defines which resources are to be used and how the order costs are to be settled. SAP ECC 6.This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation.

Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. which does not interfere with the normal production process. it cannot be re-processed for the period). This means that whatever costs remaining in the production orders are passed to FI. Settlement is a financial transaction. If the settlement is not run.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . the books are not going to be balanced. R epetitive Manufacturing only P eriodic Settlement is allowed for the R Schedule Header (once a cost collector un has been settled.3. Settlement The purpose of settlement is to pass to the General L edger the results from the calculations done in W ork in Process and Variances in both Order R elated production and R epetitive Manufacturing.confidential - Page 31 of 86 . Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6.

Dummy Profit Center: The dummy profit center is updated in data transfers whenever the object to which the data was originally posted (cost center. This ensures that the data in Profit Center Accounting is complete. The hierarchy is displayed in the annexure. just like independent companies. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. Profit Center Accounting is a statistical accounting component in the SAP system. They are judged by their profit or loss. These areas are responsible for their costs and revenues. A dummy profit center GGC Dummy has been created. You can use a transfer price to valuate goods movements between profit centers.confidential - Page 32 of 86 . For GGC. SAP ECC 6.0 An organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The cost centers are linked to profit centers. Transfer Pricing Concept Profit centers are responsible for their own costs and revenues and are treated as independent units within the legally independent company. Profit Centre Hierarchy To be discussed & finalized with the core team. This is used by the system when there is no profit center assignment even though the field is made mandatory. Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. Business mapping to SAP ECC 6. profit centers are proposed on the basis of Process. PCA integrates with CO through its controlling area / company code relationships. Profit Center Accounting evaluates the profit or loss of individual. and so on) is not assigned to a profit center.6. independent areas within an organization.8 P ROFIT CENTER ACCOUNTING Requirements and Expectations To draw P&L and BS at the level of SBU s (Profit Centers). This means that it takes place on a statistical basis at the same time as true accounting. internal order.

SAP ECC 6. The assignment of a cost center also implicitly assigns all the assets which belong to that cost center to the profit center You need to assign internal orders to profit centers in order to be able to observe the flow of overhead costs from Financial Accounting and their allocation through internal accounting from a profit center point of view. The system proposes the profit center of the product in the sender plant as the default profit center. Consequently. the system needs to summarize all the profit-related postings in profit centers. The assignment of materials also forms the basis for the transfer of material stocks to Profit Center Accounting. Before you can analyze your profits by profit center. the goods usage which corresponds to the revenues is also passed on to the profit center of the sales order. The work in process determined can also be transferred to the relevant profit center. the system proposes the profit center from the master record (plant segment) of the material being produced. All the costs and internal cost allocations posted to the production order are passed on to the assigned profit center. since this is the finer level of detail. Consequently. Value Flows in PCA Assignments of materials to profit centers provide the default values for assignment of sales orders and manufacturing orders. This default supports a productoriented and geographical division of your organization into profit centers. you usually do not need to enter a profit center manually. you usually do not have to enter it manually.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 33 of 86 . along with the credit posted when the production order is delivered or settled. Sales orders are divided into header data and item data. It is necessary to assign SD sales orders to profit centers in order to reflect sales revenues and sales deductions. Each order item is assigned separately to a profit center. This means that the when the goods issue is posted. if no other account assignment has been made. The profit center assignment is also passed on from the sales order through the logical chain sales order -> delivery note -> goods issue -> billing document. W hen you create a production order. W ith internal goods movements also (such as stock transfers or material withdrawals) the profit center is derived from the material master.PCA Planning The principal aim of profit center planning is to provide data and key figures for the purpose of planning for responsibility areas (profit centers). All the costs and allocations posted to the cost object are reflected on the assigned profit center. You need to assign cost centers to profit centers so that you can reflect all the primary costs from Financial Accounting and all secondary allocations from Cost Center Accounting in Profit Center Accounting.

you can analyze it immediately according to the period accounting approach using the Standard Reports in the information system.0 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.Once you have transferred actual data to Profit Center Accounting. Description of improvements Profit Center would help in analyzing the revenue earned by a Profit center against the cost incurred.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 34 of 86 . Providing valuable profitability reports to the management for decision making purposes. Special Configuration consideration Standard SAP ECC 6.

income and expenses are analyzed by profitability segments. Communication.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . etc. Example: Characteristics for Profitability Reporting are Customers and Processes Value Fields: The value fields contain values and quantities that are updated or planned for particular objects. Example: Value fields are Billing Income.6.9 P ROFITABILITY ANALYSIS Requirements and Expectations In the existing system. Furnace wise. Profitability Segments are made up of combinations of characteristics and value fields. SBU wise for Internal wise manually. SAP ECC 6. Profitability Segment: In Profitability Analysis. profitability analysis is done at L wise. The system allocates the corresponding costs to the revenues for each market segment. This is done through: Maintaining forms and drilldown reports Maintaining variables Operating Concern: Operating Concern GGC will be created for GGC.0 Costing based Profitability Analysis will be used.confidential - Page 35 of 86 . Business mapping to SAP ECC 6. IT Expenses. The profitability reports are used to display Profitability Analysis data that is stored at suitably aggregated level (Customers. L ine ocation wise. Characteristics: Characteristics in Profitability Analysis are the criteria according to which we can create and analyze plan and actual data. Profitability Analysis analyzes the profit or loss of an organization by individual market segments. Processes and Sub-Processes) for analysis. Travel Expenses.

these are also recorded in the billing document. If the settlement profile of the order allows settling to profitability segments. a variety of report types can be called and thereby display the data for profitability analysis. which you maintain in Customizing. If sales deductions are known (granted discounts. depending on your business demands. revenue and profitability data for any selected profitability segments. Value Flows in CO-PA Transferring Billing Documents the Sales and Distribution Module (SD) calculates revenues during billing with the help of a pricing mechanism. the stock value of the product (delivered price for wholesale or retail goods. Using SAP list viewer to display line items containing planning or actual data.Executing Reports in Profitability Analysis: By defining profitability reports. For direct postings in FI.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . along with the customer and product numbers. It A also performs characteristic derivation for those fields for which derivation logic has been defined.confidential - Page 36 of 86 . you must create a settlement rule for the settlement object with a profitability segment as a receiver. Settling Orders/ Projects Before you can settle an order or project to a profitability segment. and then enters it in the billing document. planned cash discount). CO-PA Planning Planning in Profitability Analysis allows you to plan sales. or cost of goods manufactured for in-house products) can also be determined. The system transfers all the characteristics defined in Profitability Analysis and contained in the billing document. SAP ECC 6. This is done by: Executing profitability reports. Periodic Overhead Allocation you can assign the costs that arose in the marketing for a certain customer group to that particular customer group in CO-PA. You can display the entire planning process of your company in different ways. all assignments of values and quantities to the value fields in costing-based CO-PA are defined using the PA transfer structure "FI". You do this when you maintain the master data for the order or project. Standard Profitability R eports and line item lists for planning and actual data can be executed. In addition. from the document to the CO-P line item. you can enter an assignment to a profitability segment when you create the settlement rule Direct Postings from FI You can use this function to directly post primary postings to market segments (profitability segments).

Approaches to covering Functional Deficit W orkaround for that may be provided to get profitability reporting at L wise and Furnace wise. Special configuration consideration Profitability reporting at L wise and Furnace wise requires special configuration. This will be discussed further while realization.confidential - Page 37 of 86 . This will be ine discussed while realization.Description of Improvement Online Profitability Analysis would help in analyzing the revenue earned and expenses incurred for a period based on customer.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Description of Functional Deficit No specific functional deficit. (W ill require user exists & ine ABAP developments). Providing valuable profitability analysis reports to the management for decision making purposes. process and sub-process wise. Effort has to be estimated. SAP ECC 6.

00 1.01 3. MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.02 1. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 3 .10 2. Freight Costs Energy Cost Mould Cost HR Cost Stores.06 2.7 Sr.No.00 3.11 2.04 1.03 1.05 2. Packing Costs.09 2.08 2.05 1.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 38 of 86 .12 Budgeting Sales Budget Computation of RM Costs.02 3.01 1.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 2.02 2.01 2.04 2.00 2.03 2.03 Valuation Finished Goods Semi-finished Goods Raw Materials and others Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes SAP ECC 6.07 2.

00 7.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6.03 5.01 7.04 6.03 6.01 6.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.06 6.00 Cost Allocation Hewlett-Packard .08 6.02 6.05 6.12 Budgeting Sales Budget Computation of RM Costs.00 5.07 6. Packing Costs.4.00 6.05 5.02 5.04 5.09 6.11 6.02 7.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 6. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7.10 6. Freight Costs Energy Cost Mould Cost HR Cost Stores.01 5.0 Business Blueprint for GGPL Controlling Module .

Description Cost Center: Selection criteria Output 01 Actual/Plan/Variance (S_ALR_87013611) Cost Center: Controlling Area. period. Fiscal Actual costs. year. cost element element group 02 Actual/Plan/Variance (S_ALR_87013612) Cost Center: 03 Actual/Plan/Variance (S_ALR_87013612) Cost Center: 04 Actual / Actual Controlling area. variance. cost center. Cost center(s) comparison Fiscal year (S_ALR_87013624) Cost Center: Fiscal Fiscal year comparison 06 Variances (S_ALR_87013627) Cost Center: Controlling area. Fiscal Actual costs. absolute year. cost center. variance % cost element Controlling Area. variance % without cost . period. cost center.0 Business Blueprint for GGPL Controlling Module Page 40 of 86 . variance % with cost . variance. variance. items period (KSB1) Cost Center: Cost center. period. Cost Element.8 REPORTS STANDARD REPORTS AVAILABE IN SAP CONTROLLING S. absolute year. plan costs.confidential - L of all actual line items affecting ist the cost center 08 L of all plan line items affecting ist the cost center SAP ECC 6. plan costs. period. plan costs.No. Display actual cost line period items Hewlett-Packard . Cost Element. Cost center(s) comparison Quarterly (S_ALR_87013623) Cost Center: Fiscal Quarterly comparison 05 Actual / Actual Controlling area. year. Fiscal Actual costs. absolute year. Cost center(s) Variance 07 Display actual cost line Cost center. cost element elements Controlling Area.

Display variant Company Code. plan value. Version. total plan value. period. Posting period. order(s) with Controlling area. Profit Center. Customers / Vendors.(KSBP) Internal Order: 09 L ist of variance Orders with Controlling area.confidential - Page 41 of 86 . period. profit center Fiscal year. actual value. Actual values of period 1 to N comparison period. GL Accounts. Company Actual line items posted in the Code. current period value. actual value. Fiscal Plan Actual Comparison with year. Accounting document PCA: 15 Open Items (AR. plan value. order(s) Order. Key date. Controlling Area. period Cost element. variance with cost elements (S_ALR_87012993) Internal Order: 11 L ist of Orders cumulative balance (S_ALR_87012995) Internal Order: Actuals Comparison 12 Yearly / period Quarterly / Controlling area. Period range. cumulative value till the current period R ecord type. Profit centers. period. variance (S_ALR_87012995) Internal Order: 10 L ist of variance Orders with Controlling area. account range SAP ECC 6. AP) (S_ALR_87013343 / 4) PCA: 16 Plan / Actual / Variance AR / AP profit center wise Controlling Area.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . order(s) Order. actual current period / year (S_ALR_87013001/2/3) Cost Elements: 13 List of cost elements (S_ALR_87013599) PCA: 14 Actual Line items (KE5Z) Controlling area. profit variance center. order(s) Order.

(S_ALR_87013340) 17 P rofitability Analysis: Operating Display Actual L ine Item Period/Year List (KE24) P rofitability Analysis: Operating Display Plan L Item L ine ist Period/Year (KE25) Concern. Actual L ine Items posted to the profitability segment Plan L ine Items posted to the profitability segment 18 Concern. 19 Execute Profitability Operating Concern. Processes Reports (KE30) Center.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Controlling Area and Sub-Processes SAP ECC 6. Profit R eports on Customers.confidential - Page 42 of 86 .

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Line wise and Furnace wise profitability. SAP ECC 6. Cost Center Budget .Availability check.9 IDENTIFIED GAP S Production Budgeting Optimizer: The facility of optimizing the production budget is one of the requirements which are identified as GAP.confidential - Page 43 of 86 . Payback period for Projects: Monitoring Payback period for projects (Internal Orders).

Activity planned price determined either by capacity or the activities performed in the prod cctr and price calculated based on that. Mould discussion not yet finalized? Possible through Cost Component Structure Status Close Close Close Close 5 6 Realization Realization 7 Fixed overhead allocation on Normal capacity? Realization 8 9 Resorting inventory . How to capture the cost? How the mould consumption cost absorbed in Product .Valuation at different rate? Stock reserve . Not possible. Addressed through Price control "V" in Material Master .Product transferred to other locations (Plants/ CFAs/ Companies).through Rework Order with working BOM. Will be valuated at the month beginning only. Close SAP ECC 6.10 Sr.confidential - Page 44 of 86 . 1 2 3 4 ANNEXURE A: SUMMARY OF R EQUIREMENTS Discussion Points on Blue Print Product cost (COGM) Cost Allocation . No. Old FG inventory to be valued at Old rate only? HP Response Through Product cost controlling Fixed % with an exception of exceeding 100% Allocation through Assessment to COPA.Variable cost? And Value of remaining life of mould to be part of inventory. Packing Material cost consists of Primary. Stock visibility is std SAP functionality Primary & Secondary through BOM. Repacking . Material Ledger Activation or change the accounting policy or Manual JV for old stock for difference wherein Product wise FG rate will be at current rate only. Through Manual JV only possible. Mould will be included in BOM/ PRT? Consumption will be determined based on the quantities mentioned in Backflush.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .not last month.What is fixed portion? Cost Of Goods Sold .will get YTD (April) Wtd Average Price. Realization Realization 10 Close 11 Realization 12 Restriction on certain cost elements to be part of COGM. secondary & repacking cost.How the SD & Admn overheads allocated? RM Price Moving average price: Is it Wtd Average price OR Last Price? It has to be at the current month YTD wtd avg price .

. For Job work . cost center wise. etc will be done at CO-PA Planning with possible characteristics and value fields. Budgeting of working capital Inventory.Job work / in-house to be incorporated in valuation 1. SBU wise etc. Close 16 17 18 Close Close Close 19 Production budgeting . Six businesses (like Sand.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Possible through CO-PA Planning & Cost center planning Standard PCA Planning Optimization to be done outside the SAP. For In house it is part of Prod Order operations & BOM thereof.13 Decoration . New Product and New Customer Can be worked outside the system & only values can be posted in SAP. new positions. Cullet washing.Cust . Planning at ME . FI & CO modules are recommended. warehousing etc. Trading. Sales. Polythene. employee wise.) Have been identified.confidential - Page 45 of 86 . Profit Center Planning Sales budgeting . Coloring Fore hearth Realization 15 Customer pricing / Target pricinghow to add delivery cost. Manufacturing Parameters fields can be maintained. Optimization to be done outside the SAP. unplanned. Addressed through SD condition type. Export Incentives HR budget.How to optimize product mix in Budgeting? ME? Freight Cost Budgeting. Freight module Freight module SBU wise planned HR cost will be allocated on allocation basis (PCA) Close 14 Sri Lanka . MM. weight and efficiency) and optimize throughput and value. Only SD. Mould budgeting Close 20 21 22 Freight cost budgeting.. trade creditors Close Close Close 23 SBU wise possible through Profit center accounting Close SAP ECC 6. Receivables. etc. Optimizer not available. Variable costs & Overhead Budget. with versions. Also covered in freight module. for budgeting will affect the current master data in PP.2.it is through Sub contractors' BOM. vacancy.how to do line fitting (speed.Prod.Sand & Polythene. Export Incentives. Changing of eff/ speed etc.Head count. increments.

Possible through Internal orders (Project code) & Cost centers. ME wise Qty Value."Trading" will be a Sub Profit center under Main Profit centers like Pharma & C&P. Z development for Production MIS report with Production Value. etc. Possible through available CO-PA Characteristics. Currently the budgeted ex-factory value is taken as production value.CO. Close 25 26 Capex budgets upload into system Projected P&L and BS from the available budget (remaining months) and from actual till date. Trading caps and brushes- Close Close 27 Close 28 For India . Close SAP ECC 6.24 Budgeting for interest. Interest handled through manual working. The objective in the glass manufacturing is maximizing value and contribution.confidential - Page 46 of 86 . depreciation AA module is in place then depreciation possible. market (export/ domestic). Rate per 1000 pcs. should be generated Glass .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Possible with New Plan version for remaining months of the year. Close Close 32 Reports are available from PP . For Sri Lanka "trading" is a separate SBU. region.(SBU & Plant wise) Batch Cost including internal cullet generated & Consumed Close 30 31 Possible through breakup through SD Condition types This is SD report. price/ rate variance. product mix variance. Realization per Ton. type of glass. category.Decoration type Sales qty & value Break up The port wise & type wise (20 / 40 ft) list of containers dispatched during the month should be available at the end of the month. Close 29 Reports showing analyses of Sales from all the aspects like. Volume variance. There is master in system where the rate is updated once in a year and for new products as when they arise.

Primary & Secondary packing cost (rate & usage) variances for each product/ category/ line / furnace should be highlighted. Product wise repacking & resorting costs should be available for accurate product wise costing.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Separate report showing the consumption of non-standard packing material needs to be generated. .SBU wise Budgeted price will be maintained in material master as Planned price1 for all RM for molten glass. Destination mix should also be analyzed. Run SCE with costing variant which don t update the price.confidential - Page 47 of 86 . Standard report available. Port wise no. Also Material wise Price variance against Budget..COPA Repacking will be addressed through rework order. of containers & ocean freight analysis vis-à-vis budgeted rates should be done. 34 35 Material wise Price Variance Analysis vis-à-vis Budgeted prices. THC & Documentation. Duplicate Finished product wise usage of packing material variance addressed in standard. Variance per alternative BOM (Production Version) is possible Standard reports available in SAP showing variance analysis (Production order wise).Rate & Usage variance.33 Actual v/s Budget . Ocean freight. And run variance report with different versions. Freight module Close Close Close 36 Close 37 close 38 Close 39 Close 40 Close 41 Z development Close SAP ECC 6.Variance Packing BOM in case of customer specific is product-customer. Invoice wise accurate (actual or provisions if bills not received) freight costs like Local/ Inland freight. Packing material wise consumption quantity & value . Differentiating packing material alone requires z report Multiple BOM is possible. This amount should flow to books of accounts / MIS.Actual vis-à-vis Budget . CHA & other charges need to be available as soon as the sales register is finalized.

42 Different Activities/ processes need to be identified for the point of consumption of Power. Gas. and Furnace oil in each furnace. And variances be highlighted. Since production order is generated. And variances are highlighted. etc. Duplicate Close Close 49 Close 50 Line wise employee cost allocation. Close 51 Possible Close SAP ECC 6. consumables required to generate the power. Since production order is generated. Furnace wise energy cost (element wise) need to be analyzed. it is possible. power. Activity wise (Energy) it is possible. cold end & further area. hot end. Possible Close 46 Close 47 48 Through Variance after settling the production order (Qty. Energy cost per draw tons can be monitored on daily/ shift basis for each furnace. overhead cost. & Value). Balance life of each mould set should be determined through system on monthly basis. for glass & others through Product Cost Collectors based on draw tons. Close 43 44 Through cost center accounting.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Actual vis-à-vis Budget analysis should be generated through system for all the expense heads (account codes) and cost centers every month. Salaries & Wages Actual vis-à-vis Budget analysis should be generated through system for all the expense heads (account codes) and cost centers every month. The actual cost of the direct labor deployed on line should be captured & allocated to the product / SBU for product profitability purpose. it is possible. Cost of generating Power in CPP should include not only Gas but also labor. break up is not possible. Material Group wise) Input/ Output ratio of casting & mould produced. power.confidential - Page 48 of 86 . Mould production costs should include material. labor. Quantity need to be entered in Text. Close Close 45 For Molten through Production Orders.

For India . Details of decoration expenses should be available. undecorated) Product-Customer wise stock movement statement should be available giving quantitative details like opening stock. bottles dispatched to GGPL (along with dates). Close 57 Invoice wise details of decoration revenue should be available. It should also include item wise."Trading" as a Sub Profit center under Main Profit centers like Pharma & C&P. Direct port stuffing. Details of trading expenses should be available. region wise details. bottle category wise. SD Condition types will be used for breakup of items Close 55 Close 56 Stocks statement of Trading items should also be available. closing st. For Sri Lanka "trading" is a separate SBU. process loss if any. For India . Should get separate Trading P&L For India . customer wise. region wise details.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . region wise details. customer wise. bottle category wise. It should also include item wise. customer wise. It should also include item wise. It should also include item wise. bottle category wise. For Sri Lanka "trading" is a separate SBU."Trading" as a Sub Profit center under Main Profit centers like Pharma & C&P. Product-Customer wise inventory of bottles at Ansa detailing its status (decorated. if any needs to be accounted in the same month of sale. Close 53 Realization 54 For India . Close 59 Visibility of tracking inventory is possible through standard process in MM Visibility of tracking Process loss is possible through standard process in MM Close 60 Close SAP ECC 6."Trading" as a Sub Profit center under Main Profit centers like Pharma & C&P. Close 58 Possible Through COPA report.confidential - Page 49 of 86 . region wise details.Create "Trading" as a Sub Profit center under Main Profit centers like Pharma & C&P. bottle category wise. Current volume of transaction is insignificant. customer wise. For Sri Lanka "trading" is a separate SBU. For this logistics/ marketing to provide the list of direct port stuffing of traded items during the month. For Sri Lanka "trading" is a separate SBU.52 Details of trading revenue should be available. operation carried out on bottle. receipts (along with dates).

61 Should get separate Decoration P&L Computation of Export Incentives Depreciation on GGPL Assets at Ansa.) wise Telephone / Mobile Expenses Telephone number wise & Employee wise Vehicle running & maintenance expenses .Class Wise & Reason wise Stoppage (Daily & Summary) Mould Cost Analysis . will be received from FI will be allocated.COPA z development Considered in report list Covered under PP Module Close 62 Close 63 64 65 Contribution / Pocket Margin for sales & production/ line ISSUE BASED PROFITABILITY RECONCILIATION Machine Utilization Report . Group wise & Lot no wise Melting Cost .Item wise & nature wise expenses Secondary manpower .Activity Wise quantity & Value Monitoring Draw tons per line & furnace on daily basis.Consumption of Energy in Furnace Travel Analysis .manhours & amount Secondary manpower . Stoppage Analysis .Piece Rated payment . Realization Close Close 66 Covered under PP Module Close 67 68 69 Possible Possible Different GL codes needs to be created for capturing detailed data.confidential - Page 50 of 86 . Product wise allocation of Export Incentives possible through SD/ AR .Line wise available & Utilized machine hours & Summarization (Daily & Summary).0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Statistical Internal Orders for Telephone nos Statistical Internal Orders for Telephone nos Reports Possible through MM (Item wise) & CO allocation from Ctr to COPA for the products based on SKF (piece & man days) Statistical Internal Orders. Close Close Close 70 Close 71 Close 72 73 Close Close 74 Close 75 Available in PP Close SAP ECC 6.Time Rated Payment Department wise .Account Code wise & Expense nature (Domestic/ air / hotel etc.Vehicle wise / employee wise Safety Expenses .Item Wise.

Line Wise & Furnace Wise Piece Efficiency .confidential - Page 51 of 86 . Plant MIS Available in PP.Product wise / Line Wise (Daily.Furnace Draw & Pack Tonnage . Within an invoice. MTD & YTD) Reconciliation . Furnace. MTD & YTD) through system (T2) Job Change Report . Line wise / furnace wise profitability is being worked upon. Report format given to PP Available in PP. Product & batch wise profitability is possible. Qnty & Value through system Breakage Analysis .Budget & Actual Product Wise . SBU.Product wise Profitability Furnace . Line.Category Wise number of job changes Customer Complaint Analysis Nature wise number of complaints Product.Product wise Profitability Line . with & w/o down Time Cavity Analysis .Product Wise & Line Wise ( Daily.Line wise Profitability Available in PP. need to incorporate the reports. Available in PP Close Close 79 80 81 82 Close Close Close Close 83 Close 84 Close 85 Report format given to PP Close 86 87 88 Available in PP Is taken care of in SD & QM Line wise / furnace wise profitability is being worked upon.Qnty & Value (FGS w/h. Data is available in PP. Report format given to PP Data is available in QM.76 Pack to Melt .Gob Cuts. need to incorporate the reports. Customer. Category wise & Consolidated Profitability Invoice wise profitability Customer . Standard Line wise / furnace wise profitability is being worked upon. QC & QA separately) through system Job Set up time analysis .Product wise . Close 77 78 Is taken care of by QM Data is available in PP.Product Wise & Line Wise SQC & QA Failure .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Plant MIS. Need to incorporate the reports. Section Cut Analysis & Production Loss due to section cuts Analysis of loss of production due to change in speed & efficiency Daily Production Report . Location. Close Close Close 89 90 91 92 Close Close Realization Realization SAP ECC 6. Line wise. MTD & YTD) through system (T1) Job Stabilization time Analysis Product wise & Line wise ( Daily. Plant MIS & DPR Data is available in QM. Need to incorporate the reports.

These things should be monitored through system. Z development SAP ECC 6.Product profitability Combinations like SBU .Product profitability Combinations like Furnace Customer. Payback period monitoring not possible with internal orders.Category wise Profitability Location .confidential - Page 52 of 86 . Standard Line wise / furnace wise profitability is being worked upon. And at any point of time & interval. Close 102 Close 103 Budgetary control for Project cost is possible through Internal Orders with availability check. Line wise / furnace wise profitability is being worked upon.Furnace wise Profitability Combinations like Location Customer. Budgetary control : Cost center wise budget should restrict the booking of the amount exceeding the budget.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . the actual costs are captured & actual PBIDT is computed & actual payback is monitored. It should not allow to book beyond Budgeted Amount. Close 104 Planning can be done at cost center level. ME should be able to see the collections & amount to be collected against the target committed. Month end actual status report against ME wise collection target should be generated.Furnace/ Line wise Profitability SBU .CategoryCustomer.Product profitability Combinations like SBU . Standard Line wise / furnace wise profitability is being worked upon. Collection target should be done through system. & amount due in next week should be generated. will be through Z dev. This is possible in FI as a Standard report This is possible in FI report with z development. Line wise / furnace wise profitability is being worked upon. Line wise / furnace wise profitability is being worked upon. Availability check on the planned amount on cost center not possible. Extension of Collection Target fields like "Collectible In the current Month" or "Not collectible".93 94 95 96 97 98 99 100 Category . This is possible in FI as a Standard report. After approval of the project. Realization Close Realization Close Close Close Close Z development 101 The report showing invoice no.Furnace profitability There has to be single & correct outstanding status for each customer showing invoice wise outstanding balances and its ageing.

SAP ECC 6. NJ Manufacturing plants in USA (Assumed) 1. The manufacturing facilities are spread out in different parts of the world like India. Recommendations on the Blueprint are based on the Kosamba/Jambusar plant experiences.11 11. Corporate office: Marlton.) No access to SPRO transaction.com/ 3. the number of Furnaces and lines are unknown. the number of Furnaces and lines are unknown. No organization structure provided Source of Understanding: 1. Sri Lanka.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Implementation of the Blueprint is NOT in scope. The objective of the document is to provide comprehensive Blueprint in relation to the information available and operations/manufacturing which is told to be similar to Kosamba / Jambusar glass plants. NJ At present. USA & UK. Mays Landing.confidential - Page 53 of 86 . Very L imited access existing SAP R 3 system which is highly customized with Z* (per assessment and / BPPs. MO Manufacturing: Glass Flint container manufacturing in Missouri and decoration / coated products operations in New Jersey. Flat River.theglassgroup. 2.) and the internet 2. http://www.. Business Process Procedures (Tcode explanations. This Blueprint document is prepared based on the very few information that was extracted from different documents provided and the limited access to the existing SAP system.1 ANNEXURE B: US AND UK BUSINESS PROCESS BACKGROUND Gujarat Glass (P) L imited [GGP ] is a leading manufacturer of glass based products for pharmaceutical and L cosmetic industries. At present.

Profit Center accounting. W ithin the Overhead Cost Controlling area. Cost centers can then allocate costs to other cost / centers and orders. There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components.1 INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .11. CO covers both the operational and the strategic aspects of management. SAP ECC 6. costs from cost centers (as production activities are performed or from overhead allocation). costs can be posted to cost centers and internal orders from other R 3 modules (external costs).confidential - Page 54 of 86 . In addition to direct postings from FI. Cost objects (such as production orders.2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. If an organization divides accounting into internal and external viewpoints. etc.2.2.2 CO MODULE INTRODUCTION (Based on work done for India/Sri Lanka implementations) 11.those who are inside an organization and are vested with directing and controlling its operations. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling.) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object). by virtue of its basic design. It provides information for managers . Value flows can occur for many different purposes. settlements of cost from internal orders. receives statistical cost postings from virtually all other CO components. 11. and production variances settled from cost objects. Profitability Analysis can receive cost assessments from cost centers. CO represents the internal accounting perspective.

The following graphic illustrates the integration within CO Value Flows: SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 55 of 86 .

cost of goods issues. At the same time. Income statements such as. The L ogistics area of R 3 also has numerous integration points with Controlling (e.confidential Page 56 of 86 . planned personnel costs can be transferred to CO as input to CO planning. contribution margin accounting. posted as a cost to the cost center (or other object in CO) for which the items have been purchased. Therefore.. accounts payable postings. Other R 3 modules generate data that has a direct impact on CO. PP-production order. These expense postings to the G/ L could be manual journal entries. That cost center's costs may later be passed on as overhead to a production cost center or elsewhere in CO. as well as the entire organization. such as cost centers. business processes. projects or orders. It facilitates coordination.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . most expense postings to the General L edger would result in a cost posting to CO. The Human R esources (HR modules can generate several types of cost postings to Controlling. process allocations and direct primary costs can be posted to the cost object (e. overhead surcharges. Consumption of activities. These variance calculations enable you to control business flows. As well as documenting actual events. The Production Planning (PP) and the Sales and Distribution area of Logistics also works very closely with Controlling. are used to control the cost efficiency of individual areas of an organization. R evenue postings can also be created by a journal entry to the G/L and would also typically generate postings in CO to CO-PA and Profit Center Accounting. For example. You can determine variances by comparing actual data with plan data. an expense is posted to the GL At the same time.g. the expense is . all data relevant to cost flows automatically to Controlling from Financial Accounting. monitoring and optimization of all processes in an organization. the system assigns the costs and revenues to different CO account assignment objects. This involves recording both the consumption of production factors and the services provided by an organization. The relevant accounts in Financial Accounting are managed in Controlling as cost elements or revenue elements. This enables you to compare and reconcile the values from Controlling and Financial Accounting. when doing a / goods issue to a controlling object or a goods receipt from production). the main task of controlling is planning.11.2.g. Integration Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. when non-stock / consumable items are purchased. The HR ) system allows you to allocate the cost of work to different Controlling (CO) objects. sales order item) SAP ECC 6. Typically. In addition. The Financial Accounting application area of R/3 is a primary source of data for Controlling. or depreciation postings from Asset Accounting (FI-AA). The data flow between the two components takes place on a regular basis.3 CO MODULE INTEGRATION WITH OTHER MODULES (Based on work done for India/Sri Lanka implementations) Controlling provides you with information for management decision-making.

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . if the sales order item is a cost object. SAP ECC 6.confidential - Page 57 of 86 . CO-PCA and FI.and by doing the period closing data like W IP. variances and price differences are settled to CO-PA. The billing document can incur revenues directly to CO-PA or to the sales order.

Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes. (GGI) company code). Introduction of Controlling concepts viz. and PIR . Controlling Area. Cost Center hierarchy. UK). . Profit centers are designed based on the Processes.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 58 of 86 .11.3 CO ORGANIZATION STRUCTURE (The agreed organization structure covers the operations of U.S. GGI. The finalized Controlling Organizational Structure would be as follows: Organizational Units for GGPL Client: 400 Operating Concern Company Controlling Area Cost Centers Profit Centers GGPL PIR UK CGCL GG US GGI HO KOS JAMB BADDI RURKI RTH NTH HO FTR Business Area / Plant WTN MLD Detailed list of Cost Center hierarchy and P rofit Center Hierarchy considering GGI are not available due to lack of information while framing the BBP. Profit Center Hierarchy would enable GGC to track costs at the origin in a more efficient manner.. Controlling Area GGC would be created for Gujarat Glass Consolidated (GGPL CGCL GGUS. SAP ECC 6.

to measure the internal flow of costs between Cost objects. used to assure the instant reconciliation of the postings. The difference between FI and CO is that in CO. Secondary cost elements are used for allocations and settlements.4. some objects are created only in CO termed as Secondary Cost Elements . The method works according to the keys defined by the user. it is mandatory that the posting be made using both a cost element and a cost object (cost center. areas of operation. 11. N o profit center can be created without an allocation to one level in the standard hierarchy. Other than this. The / criteria used to create them are: function. 11. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. The cost center is the main R 3 structure used to allocate costs in the exact point of their appearance.11. To the highest node the root of the hierarchy. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. these are attached the nodes for each company code.4. The profit center is the main R 3 structure used to allocate costs in the exact point of their appearance.3 PROFIT CENTER STANDARD HIERARCHY The Profit Center Standard Hierarchy is similar to that of the Cost Center Standard Hierarchy that collects together all the profit centers created in a Controlling Area. The / criteria used to create them are: divisions. used to measure the internal flows of values between different cost objects. without any effect in Finance module. internal order etc.1 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . activities. These are not represented by GL accounts in FI. SAP ECC 6. There can be only one Standard Hierarchy for a company code. All expense related G/ L accounts in FI are made Primary Cost Elements in CO. and responsibility areas.2 COST ELEMENTS In SAP. N o cost center can be created without an allocation to one level in the standard hierarchy.4. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders. using a drill-down system. locations.the root of the hierarchy. To the highest node . other cost centers) under a cost element. there are attached the nodes for each company code.4 CO MASTER DATA 11. using a drill-down system.confidential - Page 59 of 86 .) Secondary cost elements Secondary cost elements are accounts created in controlling only.

4.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .11. the revenues of an organization. Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control . in some instances.4 INTERNAL ORDERS An instrument used to monitor costs and. SAP ECC 6.confidential - Page 60 of 86 .

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. 12 Sales Deductions This cost element category can be used to post deductible items. The cost element category determines which cost elements can be used for which business transactions. as adequate discussion on business process and information is missing) 11. there is no concept of Cost Element. 31 Order / Project Results analysis Used to store result analysis data.11. Business Mapping to R/3 SAP will use the concept of Cost Elements to track the flow of costs between FI / CO and flow of costs internal to CO (which arises due to reposting / distribution / assessment). Most of the values are moved automatically from Financial Accounting to Controlling.1 COST ELEMENT ACCOUNTING Requirements and Expectations At present. profitability segments and cost centers. 41 Overhead . 11 Revenue Elements This cost element category can be used to post revenues.5 BUSINESS PROCESS MAPPING TO R/3 (Business process mapping of GGI is based on assumptions of business process mapping of India and Sri Lanka operations. The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders.confidential - Page 61 of 86 .5.Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. Cost and R evenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. SAP ECC 6. SAP distinguishes between: Primary Cost Element Categories Secondary Cost Element Categories The Primary Cost Element Categories are: 01 General Primary Cost Element This cost element category can be debited for all primary postings.

Depending on the cost elements chosen (for e. Description of Functional Deficit No deficits Approaches to covering Functional Deficit Not Applicable Pictorial Overview of Cost Elements (Primary and secondary) SAP ECC 6. they can be used to create reports or to process several cost elements in one business transaction. Allocation Structures. and Cost Component Structures etc.Assessment is a method of internal cost allocation in which costs are apportioned from a sender cost center to receivers (cost centers. since GGC has the same operative chart of accounts all the P&L GL accounts will be created as cost elements.g.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . excluding secondary cost elements for drawing up P statement on profit &L centers) reports can be drawn up. Cost element groups Cost elements with similar characteristics can be collected in the form of Cost Element Groups. Cost elements are per controlling area. Description of Improvement This will provide capability for detailed recording of data that forms the basis for cost accounting. Assessment can be run for both plan and actual values. Cost element groups can serve various purposes.confidential - Page 62 of 86 . The costs are apportioned according to an allocation base (tracing factor) defined by the user. Special configuration consideration No Special configuration required. For example. Settlement Profiles. internal orders) using an assessment cost element. Cost Element Groups is created for Cost Center Assessment Cycle.

Process Flow Chart Primary Cost Element Secondary Cost Element SAP ECC 6.confidential - Page 63 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

0 Business Blueprint for GGPL Controlling Module Yes Hewlett-Packard .confidential - Page 64 of 86 .P&L General Account exists in CAAS Requirement for Secondary Cost Element This account is a Primary Cost Element Whether G/L A/C exists Yes Can-not be made secondary Cost Element Is a new P & L GL Account neccessary No No End Create Secondary Cost Elements Then the new GL Account is first to be created by the competent person in HQ at CAAS level It is then created as a Primary Cost Element at HQ Cost Element Groups Cost Element Group Combination of Cost Elements with Similar Characteristics SAP ECC 6.

The actual cost centers are attached to this cost center group. and/ or responsibility-related standpoints. Change to cost centers can be made individually or collectively. Cost Center Hierarchy No Information available. Cost Centers for individual company codes under GGC will be created and will be assigned to the respective cost center group. Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. activities. prices or statistical key figures for a particular cost center and a particular planning period.11. This standard hierarchy has cost center groups attached to it.confidential Page 65 of 86 . You can make organizational divisions on the basis of functional. costs incurred are captured in cost centers. Organizational unit within a controlling area that represents a clearly delimited location where costs occur. Cost Center Planning and Budgeting Cost center planning involves entering plan figures for costs. You can thus determine when the budget is exceeded and carry out timely availability checks. settlement-related.5. No Information on Cost Centers for GGI and UK Company codes.2 COST CENTER MAINTENANCE Requirements and Expectations In the existing system. Description of Improvement Efficient monitoring of costs through cost centers. Cost center budgeting provides a further method of planning in addition to primary cost and secondary cost planning. Business mapping to R/3 A standard hierarchy will be created for the Controlling Area (GGC). These categories are used to lock the posting of revenue posting into cost centers and also these categories can be used for reports and evaluations.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . This tool enables you to carry out a comparison between actual postings and plan budgets. activity-related. spatial. You can then determine the variances from these figures when you come to compare these plan values with the costs actually incurred.

Business mapping to R/3 Activity types describe the activity produced by a cost center and are measured in units of time or quantity.11. they are linked to work centers in PP. The variation in cost between one cost center and the other for the same activity type is taken care during the cost planning.3 ACTIVITY TYPE MAINTENANCE No Information available. activity dependent cost elements planning will be carried out individually. Requirements and Expectations There is no concept of activity types in the existing system. A cost center can be assigned one. activity planning will be done at the respective production cost centers. For example.confidential - Page 66 of 86 . Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department.5. One particular activity type can be assigned to one or more cost centers. or no activity types. activity type LAB will be common for both C&P glass and Pharma glass manufacturing. Activity types classify the activities produced in the cost centers within a controlling area. But the cost will be different because. Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and . For example. multiple.

Business mapping to R/3 Statistical Key Figure The statistical key figures are used in various distribution cycles. Requirements and Expectations There is no concept of Statistical key figures in the existing system. to allocate costs from a sender to a receiver.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .5.4 STATISTICAL KEY FIGURE MAINTENANCE No Information available. SKF can be used across all the company codes. Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.11.confidential - Page 67 of 86 . at period-end closing. based on the requirement of cost allocation.

For example.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .5. Distribution & Assessment. each company codes can allocate their costs using the Standard allocation tools provided by SAP.11. Business Process Mapping to R/3 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting. or posted amounts provide the basis for cost/quantity assignment. enabling the allocation to be recorded exactly. Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers. Requirements and Expectations In the existing system costs are booked only in financial records and the concept of apportionment to respective departments is done for reporting purpose. statistical key figures. The allocation is done using Distribution Cycles by specifying rules for the settlement of primary costs on a cost center Main features of this process are as below: The original cost element is retained in the receiver cost center Information about the sender and the receiver is documented in the Controlling document. These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once. amounts. Only primary costs can be reposted. Cost allocations are performed under controlling area (GGC). During this process. Telephone costs are collected on a cost center for each period & then can be allocated using the process of reposting or distribution/ assessment cycles at the end of the period according to the number of telephone units or telephone installations in each cost center. the costs collected on a cost center during the accounting period are allocated to receivers.confidential - Page 68 of 86 . L items are posted for the sender as well as ine for the receiver. These are indirect allocation methods for which user-defined keys such as percentage rates.5 COST ALLOCATION No Information available. Periodic reposting can be reversed and repeated as often as required. Under this procedure. SAP ECC 6. Distribution Distribution is a method of internal cost allocation that allocates primary costs. the original cost element remains the same.

allocating general & administrative costs. The method works according to the keys defined by the user. It is used when it is unimportant or not possible for the user to know the break down of costs that a cost center will receive in an allocation. Further analysis is available through CCA reporting. SAP ECC 6. E. The concept and procedure would remain the same for profit center Assessment and Distribution cycles.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Pictorial depiction of Distribution: Assessment Assessment is a method of internal cost allocation by which the costs of a sender cost center is allocated (transferred) to receiver CO objects (orders.g. and so on) under an assessment cost element (category 42).confidential - Page 69 of 86 . other cost centers.

Pictorial depiction of Assessment: Description of improvements A systematic approach to distribute costs and revenues between CO objects. Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.confidential - Page 70 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

Internal orders will be used for capturing costs for short term simple projects and also for statistical reporting. through the planning and posting of all the actual costs.6 INTERNAL ORDERS No Information available.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Internal orders provide capabilities for planning. collect.g. Special configuration consideration Standard Sap R/3 SAP ECC 6. and allocation of costs.confidential - Page 71 of 86 . budgeting and tracking the costs of a particular nature of expense / cost. E. This information includes a range of default values that are used when a new order is created with this order type. monitoring. Description of Improvement Internal order would help in planning.11. This is mandatory to capture the costs / expenses on the internal order against a budget.Purpose Internal Order. The SAP system enables you to monitor your internal orders throughout their entire life-cycle.5. and settle the costs of internal jobs and tasks. from initial creation. Requirements and Expectations There is no concept of Internal Orders in the existing system. Order Type 300 is TLV Maintenance Internal Order. It is named as per following naming convention: Site name . Internal order once created will be referred in raising a Purchase order in the account assignment category. Order Type An order type has a large amount of control information important to order management. Internal Orders are created at controlling area level and at company code level. Internal orders are normally used to plan. Any new order is created under an order type that results in transfer of certain parameters to the order. in which company codes under if required can create Internal Orders for capturing costs for shot term simple projects and also for statistical reporting. All the above order for each Co code is defined as a separate order type. to the final settlement and archiving Business mapping to R/3 An Internal Order is an extremely flexible CO tool that can be used for a wide variety of purposes to track costs within a controlling area.

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.confidential - Page 72 of 86 .

R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained.11.5. Conversion cost includes labor cost and overheads. Labor Cost: The number of Labor hour time would get picked up from R outing master.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 11. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. SAP ECC 6. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. Batch Cost: In SAP. The system uses the results of cost estimates to valuate material movements in Logistics.5.confidential - Page 73 of 86 .7.2 CREATING. All costing data is stored with reference to a plant.5. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials. for material valuation. 11. the Standard Cost Estimate is created. the number of units required for completion of a Finished Product would be picked up from Bills of material [BOM Master] and the value per unit from Material Master.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost.7. It enables you to calculate the minimum price at which a product can be profitably marketed. marked and released for both Finished Products and Semi Finished Products. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. Conversion Cost Overhead Cost The Overhead cost would get calculated as per the parameters given in the overhead-costing sheet maintained in the Valuation Variant. or provision of a service. Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. Product costing is carried out at the plant ) level. packing cost and conversion cost. The following process will be applicable for all manufacturing companies like GGPL and CGCL.7 PRODUCT COST CONTROLLING No Information available. The following process may be applicable for GGI as there is no information of Product Costing in GGI. Material valuation is carried out at the Plant level. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module.

SAP ECC 6. on creation of the Standard cost estimate.The costs for a period can be viewed through the Product cost collector. The Controlling link is established because the system picks the Planned and Actual Costing Variants from the Order Type. The marking and releasing of standard cost estimate would happen at the beginning of a period as described.R materials are maintained at Moving Average Price. Product Cost Collector: In SAP. This Production P rocess number is updated in the manufacturing orders assigned to the Product Cost Collector. The Conversion cost would get picked up from the Planned Activity price maintained and Overhead costing sheet. it would be marked and released. The material cost would get picked up from the latest weighted average price as on the date of creating the standard cost estimate from the material master. In repetitive manufacturing.7. On Marking the new price would be calculated and get reflected in the Future Planned Price of the material master. This would be assigned a unique Costing and Valuation variants. Repetitive Manufacturing Process is applicable for products that are continuously made in high volumes. the costs per material or per production version are determined via a product cost collector (product cost per period).BOTTLES. the process involves creation of a preliminary cost estimate for the cost collector. The Inventory will be valuated at Standard price. On R eleasing the Future planned price would become the Present Price. a separate Cost Collector is defined for the Production version. packing cost and Conversion cost. For normal production of glasses the R epetitive Manufacturing process will be followed. The production version is linked to the Cost Collector through the Production Process number. Thus. when a Standard aw cost estimate is being created the system would take the latest weighted average Price from the material master and the same would be the standard cost of the material for the period. the system internally creates a Production Process. This apart. So. at the beginning of the period. They hold the control mechanism like the planning and settlement profile. the Standard Cost Estimate would include both Batch cost. The activity quantities that are to be confirmed are defaulted on the basis of the routing Used for the preliminary cost estimate. At the time of creation.confidential Page 74 of 86 .3 REPETITIVE MANUFACTURING PROCESS . 11. with the facility of periodic settlement. Process: T Code KKF6N is used for creating the P roduct Cost Collector. In GGC. Suitable repetitive manufacturing profile is to be updated in the material master record to be able to back flush a material.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .5. Order types are separate for this process. The system auto creates a settlement rule and the receiver is always a Material.

Discrete manufacturing will be used for production of Molten Glass.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .7.confidential - Page 75 of 86 . The order could be triggered by the T Code MFBF.SEMIFINISHED PRODUCTS Discrete manufacturing (i. WIP would be calculated only for Open Production Orders. So with all these links the standard costing estimate could be run for the materials. at what time and how much work is required.5. It also defines which resources are to be used and how the order costs are to be settled. Confirm production order. 11.4 DISCRETE MANUFACTURING PROCESS . In SAP. This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. 11. Goods receipt against production order. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. at which location.5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1. Sand and Polythene.e. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. SAP ECC 6. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. WIP means all debits Minus Credits of a production order. Process: Creation of Production Order. Production Orders: A Production order defines which material is to be processed.The Costing Sheet is picked from the valuation variant from the Costing variant. Mould Manufacturing. With backflush the materials are issued to production and the finished goods posted to warehouse.7. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. Issue materials against production order. Discrete Manufacturing: WIP gets calculated through a standard transaction.5.

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . This means that whatever costs remaining in the production orders are passed to FI. which does not interfere with the normal production process.2.confidential - Page 76 of 86 . Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. R epetitive Manufacturing only P eriodic Settlement is allowed for the R Schedule Header (once a cost collector un has been settled. Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. the books are not going to be balanced. If the settlement is not run. 3. Settlement The purpose of settlement is to pass to the General L edger the results from the calculations done in W ork in Process and Variances in both Order R elated production and R epetitive Manufacturing. it cannot be re-processed for the period). Settlement is a financial transaction.

SAP ECC 6. internal order. Transfer Pricing Concept Profit centers are responsible for their own costs and revenues and are treated as independent units within the legally independent company. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. and so on) is not assigned to a profit center. A dummy profit center GGC Dummy has been created.8 PROFIT CENTER ACCOUNTING [N o information on SBU s in GGI and PIR UK] Requirements and Expectations To draw P&L and BS at the level of SBU s (Profit Centers). These areas are responsible for their costs and revenues.11. Dummy Profit Center: The dummy profit center is updated in data transfers whenever the object to which the data was originally posted (cost center. independent areas within an organization. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization. PCA integrates with CO through its controlling area / company code relationships. For GGC. This is used by the system when there is no profit center assignment even though the field is made mandatory. This ensures that the data in Profit Center Accounting is complete.confidential - Page 77 of 86 . You can use a transfer price to valuate goods movements between profit centers. just like independent companies.5. Business mapping to R/3 An organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. This means that it takes place on a statistical basis at the same time as true accounting. They are judged by their profit or loss. Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. Profit Centre Hierarchy No information available. The cost centers are linked to profit centers. profit centers are proposed on the basis of Process. Profit Center Accounting is a statistical accounting component in the SAP system.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The hierarchy is displayed in the annexure. Profit Center Accounting evaluates the profit or loss of individual.

The work in process determined can also be transferred to the relevant profit center. The assignment of materials also forms the basis for the transfer of material stocks to Profit Center Accounting. Consequently. W hen you create a production order. You need to assign cost centers to profit centers so that you can reflect all the primary costs from Financial Accounting and all secondary allocations from Cost Center Accounting in Profit Center Accounting. the system needs to summarize all the profit-related postings in profit centers. Consequently. Value Flows in PCA Assignments of materials to profit centers provide the default values for assignment of sales orders and manufacturing orders. the system proposes the profit center from the master record (plant segment) of the material being produced. Each order item is assigned separately to a profit center. if no other account assignment has been made. since this is the finer level of detail. The system proposes the profit center of the product in the sender plant as the default profit center. you usually do not have to enter it manually. This means that the when the goods issue is posted.confidential - Page 78 of 86 . All the costs and allocations posted to the cost object are reflected on the assigned profit center. the goods usage which corresponds to the revenues is also passed on to the profit center of the sales order. This default supports a productoriented and geographical division of your organization into profit centers.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . It is necessary to assign SD sales orders to profit centers in order to reflect sales revenues and sales deductions. W ith internal goods movements also (such as stock transfers or material withdrawals) the profit center is derived from the material master. The assignment of a cost center also implicitly assigns all the assets which belong to that cost center to the profit center You need to assign internal orders to profit centers in order to be able to observe the flow of overhead costs from Financial Accounting and their allocation through internal accounting from a profit center point of view. The profit center assignment is also passed on from the sales order through the logical chain sales order -> delivery note -> goods issue -> billing document. All the costs and internal cost allocations posted to the production order are passed on to the assigned profit center. SAP ECC 6. you usually do not need to enter a profit center manually. Sales orders are divided into header data and item data. along with the credit posted when the production order is delivered or settled.PCA Planning The principal aim of profit center planning is to provide data and key figures for the purpose of planning for responsibility areas (profit centers). Before you can analyze your profits by profit center.

you can analyze it immediately according to the period accounting approach using the Standard Reports in the information system.Once you have transferred actual data to Profit Center Accounting.confidential - Page 79 of 86 . Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6. Description of improvements Profit Center would help in analyzing the revenue earned by a Profit center against the cost incurred.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Providing valuable profitability reports to the management for decision making purposes.

Example: Characteristics for Profitability Reporting are Customers and Processes Value Fields: The value fields contain values and quantities that are updated or planned for particular objects. The system allocates the corresponding costs to the revenues for each market segment. etc.confidential Page 80 of 86 . L ine ocation wise. The profitability reports are used to display Profitability Analysis data that is stored at suitably aggregated level (Customers. Characteristics: Characteristics in Profitability Analysis are the criteria according to which we can create and analyze plan and actual data. income and expenses are analyzed by profitability segments.9 PROFITABILITY ANALYSIS Since GGI and PIR UK Company codes are assigned to the CO area of IN and SL Company codes. Requirements and Expectations In the existing system. Processes and Sub-Processes) for analysis. Profitability Analysis analyzes the profit or loss of an organization by individual market segments. IT Expenses. there would be only one Operating Concern common for the all the company codes.5. This is done through: Maintaining forms and drilldown reports Maintaining variables Operating Concern: Operating Concern GGC will be created for GGC. Profitability Segment: In Profitability Analysis. SBU wise for Internal wise manually.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SAP ECC 6. Furnace wise. Profitability Segments are made up of combinations of characteristics and value fields. Business mapping to R/3 Costing based Profitability Analysis will be used. Example: Value fields are Billing Income. Travel Expenses. profitability analysis is done at L wise. However additional characteristics and value fields and other relevant data with reference to GGI and PIR UK are unavailable. Communication.11.

and then enters it in the billing document. planned cash discount). It A also performs characteristic derivation for those fields for which derivation logic has been defined. Periodic Overhead Allocation you can assign the costs that arose in the marketing for a certain customer group to that particular customer group in CO-PA. revenue and profitability data for any selected profitability segments. Standard P rofitability R eports and line item lists for planning and actual data can be executed. If the settlement profile of the order allows settling to profitability segments.Executing Reports in Profitability Analysis: By defining profitability reports. This is done by: Executing profitability reports. which you maintain in Customizing. SAP ECC 6. depending on your business demands. a variety of report types can be called and thereby display the data for profitability analysis. You can display the entire planning process of your company in different ways. For direct postings in FI. CO-PA Planning Planning in Profitability Analysis allows you to plan sales. Using SAP list viewer to display line items containing planning or actual data. In addition. or cost of goods manufactured for in-house products) can also be determined. the stock value of the product (delivered price for wholesale or retail goods.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The system transfers all the characteristics defined in Profitability Analysis and contained in the billing document. you can enter an assignment to a profitability segment when you create the settlement rule Direct Postings from FI You can use this function to directly post primary postings to market segments (profitability segments). these are also recorded in the billing document. along with the customer and product numbers. You do this when you maintain the master data for the order or project.confidential - Page 81 of 86 . If sales deductions are known (granted discounts. all assignments of values and quantities to the value fields in costing-based CO-PA are defined using the PA transfer structure "FI". Value Flows in CO-PA Transferring Billing Documents the Sales and Distribution Module (SD) calculates revenues during billing with the help of a pricing mechanism. you must create a settlement rule for the settlement object with a profitability segment as a receiver. Settling Orders/ Projects Before you can settle an order or project to a profitability segment. from the document to the CO-P line item.

Description of Improvement Online Profitability Analysis would help in analyzing the revenue earned and expenses incurred for a period based on customer, process and sub-process wise. Providing valuable profitability analysis reports to the management for decision making purposes.

Special configuration consideration Profitability reporting at Line wise and Furnace wise requires special configuration.

Description of Functional Deficit No specific functional deficit. This will be discussed further while realization.

Approaches to covering Functional Deficit W orkaround for that may be provided to get profitability reporting at L wise and Furnace wise. This will be ine discussed while realization.

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11.6

REPORTS
CONTROLLING

SANDARD REPORTS AVAILABE IN SAP

S.No.

Description Cost Center:

Selection criteria

Output

01

Actual/Plan/Variance (S_ALR_87013611) Cost Center:

Controlling Area, Fiscal Actual costs, plan costs, absolute year, period, cost center, variance, variance % cost element Controlling Area, Fiscal Actual costs, plan costs, absolute year, period, cost center, variance, variance % without cost , cost element elements Controlling Area, Fiscal Actual costs, plan costs, absolute year, period, cost center, variance, variance % with cost , cost element element group

02

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

03

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

04

Actual / Actual Controlling area, year, Cost center(s) comparison Quarterly (S_ALR_87013623) Cost Center:

Fiscal

Quarterly comparison

05

Actual / Actual Controlling area, year, Cost center(s) comparison Fiscal year (S_ALR_87013624) Cost Center:

Fiscal

Fiscal year comparison

06

Variances (S_ALR_87013627) Cost Center:

Controlling area, period, Cost center(s)

Variance

07

Display actual cost line Cost center, Cost Element, period items (KSB1) Cost Center:

List of all actual line items affecting the cost center

08

Display actual cost line Cost center, Cost Element, period items (KSBP)

L of all plan line items affecting ist the cost center

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Internal Order: 09 L ist of variance Orders with Controlling area, period, order(s) Order, actual value, plan value, variance

(S_ALR_87012995) Internal Order: 10 L ist of variance Orders with Controlling area, period, order(s) Order, actual value, plan value, variance with cost elements

(S_ALR_87012993) Internal Order: 11 L ist of Orders cumulative balance (S_ALR_87012995) Internal Order: Actuals Comparison 12 Yearly / period Quarterly / Controlling area, comparison period, order(s) with Controlling area, period, order(s) Order, total plan value, actual current period / year

Actual values of period 1 to N

(S_ALR_87013001/2/3) Cost Elements: 13 List of cost elements (S_ALR_87013599) PCA: 14 Actual Line items (KE5Z) Controlling area, period Cost element, current period value, cumulative value till the current period

R ecord type, Version, Controlling Area, Company Actual line items posted in the Code, Posting period, profit center Fiscal year, Profit Center, Display variant Company Code, Key date, GL Accounts, Profit centers, Customers / Vendors, Accounting document

PCA: 15 Open Items (AR, AP) (S_ALR_87013343 / 4) PCA: 16 Plan / Actual / Variance (S_ALR_87013340)

AR / AP profit center wise

Controlling Area, Fiscal Plan Actual Comparison with year, Period range, profit variance center, account range

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17

Profitability Analysis: Operating Display Actual L ine Item Period/Year List (KE24) P rofitability Analysis: Operating Display Plan L Item L ine ist Period/Year (KE25)

Concern,

Actual L ine Items posted to the profitability segment Plan L ine Items posted to the profitability segment

18

Concern,

19

Execute Profitability Operating Concern, Profit R eports on Customers, Processes Reports (KE30) Center, Controlling Area and Sub-Processes

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11. SAP ECC 6.confidential - Page 86 of 86 .7 GAPS The requirements are NOT in place.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Hence GAPS could not be prepared.

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