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

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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

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......................2Cost Center Maintenance..............................5 Business Process Mapping to R/3 ...............59 11.......................7 GAPS ....................................................................................................................................................................3 CO Organization Structure...............................................1Cost Center Standard Hierarchy ...................................7Product Cost Controlling............................4..................61 11.............................................................4.....................................................................................59 11.......77 11....................4Statistical Key Figure Maintenance ...............................................................................................................................................................3Profit Center Standard Hierarchy.............................................................................67 11..................5....................59 11.3Activity Type Maintenance...................................0 Business Blueprint for GGPL Controlling Module Hewlett-Packard ......................3CO Module Integration with Other Modules ....80 11......................................2CO Value Flows in SAP ....66 11........................................................................................................................................................61 11......................................................2 CO Module Introduction ..............................5..................................2Cost Elements............................4...................................................4.....confidential - Page 5 of 86 ...............................................................................................................68 11.5..........................................73 11................................................5...6 Reports.65 11..............................2.......4 CO Master Data.........................................................................................5........54 11......................................................6Internal Orders .......2........................8Profit Center Accounting.............................................................................59 11...........................58 11............................5...............71 11.......................4Internal Orders .....................................2........5Cost Allocation...............................11..................5.........83 11.................................9Profitability Analysis ...........................................1Introduction......................5..........5.................................56 11.........................................................54 11........................60 11.....................................................................................86 SAP ECC 6............1Cost Element Accounting...........................54 11...................

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

key users and personnel from Information Systems.confidential Page 7 of 86 .from this point forward the dual role of both official project scope as well as system acceptance criteria.Major expansion plans for capacity increase are already on anvil. The information was gathered through interviews conducted at the GGPL plant with the managers.0 system. The immediate purpose of the analysis is to prepare to move forward rapidly with the implementation of GGPL 's SAP ECC 6.2 ENTERPRISE RESOURCE PLANNING (ERP) PROJECT OBJECTIVES Objectives for the implementation project are: Implement SAP ECC 6. GGPL will further consolidate its position as market leader in Glass Industry.3 OVERVIEW OF BLUEPRINT PHASE This document summarizes the findings of the Hewlett-Packard (HP) consulting team.0 standard business processes Adhere to business basic's and use SAP as a model for best business practices 1. After successful commissioning of those projects.0. GGPL has decided to implement an integrated ER solution and have selected SAP ECC 6.0 implementation. At the conclusion of the blueprint. which are being implemented in Phase 1. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The Blueprint and its associated appendices present a summarized perspective of all functional business processes that will be implemented. as well as through reviews of business processes. 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 1.0 Modules. The SAP ECC 6. Blueprint document will serve . which conducted requirement analysis of GGPL for the SAP ECC 6. the HP consultants will determine the SAP functionality required to run the GGPL business. business procedures. HP is the P Implementation Partner for SAP ECC 6. documentation and relevant reports using Q & A db from Value SAP methodology.0 system.

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

by virtue of its basic design.2 2. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling. costs from cost centers (as production activities are performed or from overhead allocation). and production variances settled from cost objects.confidential - Page 9 of 86 . W ithin the Overhead Cost Controlling area. receives statistical cost postings from virtually all other CO components. In addition to direct postings from FI.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. Value flows can occur for many different purposes.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Profitability Analysis can receive cost assessments from cost centers. Cost centers can then allocate costs to other cost centers and orders. etc. SAP ECC 6. settlements of cost from internal orders. Cost objects (such as production orders.those who are inside an organization and are vested with directing and controlling its operations. CO covers both the operational and the strategic aspects of management. 2.0 modules (external costs). There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components.1 CO MODULE INTRODUCTION INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process.) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object). CO represents the internal accounting perspective. It provides information for managers . Profit Center accounting. costs can be posted to cost centers and internal orders from other SAP ECC 6.

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

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

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

). SAP ECC 6. Profit centers are designed based on the Processes. 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. Introduction of Controlling concepts viz.confidential - Page 13 of 86 . Cost Center hierarchy. Controlling Area.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Profit Center Hierarchy would enable GGC to track costs at the origin in a more efficient manner. 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..

used to measure the internal flows of values between different cost objects. using a drill-down system. internal order etc. All expense related G/ L accounts in FI are made Primary Cost Elements in CO.1 CO MASTER DATA CONTROLLING AREA The Controlling Area is the business unit where Cost Accounting is carried out.0 structure used to allocate costs in the exact point of their appearance. there are attached the nodes for each company code. Each controlling area has a unique standard hierarchy. The cost center is the main SAP ECC 6. SAP ECC 6.confidential Page 14 of 86 . locations.the root of the hierarchy.3 COST ELEMENTS In SAP.) Secondary cost elements Secondary cost elements are accounts created in controlling only.2 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account.5 5. No cost center can be created without an allocation to one level in the standard hierarchy. and responsibility areas. To the standard hierarchy of cost centers are attached all the cost centers created for a Company code. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders. The difference between FI and CO is that in CO. some objects are created only in CO termed as Secondary Cost Elements . other cost centers) under a cost element. Secondary cost elements are used for allocations and settlements. The Company Code allocated to the Controlling area must use the same operating chart of accounts and the same fiscal year variant. activities. To the highest node . 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.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 5. the highest node is created when maintaining the Structure. it is mandatory that the posting be made using both a cost element and a cost object (cost center. These are not represented by GL accounts in FI. The method works according to the keys defined by the user. 5. used to assure the instant reconciliation of the postings. Other than this. without any effect in Finance module. The criteria used to create them are: function.

5.confidential - Page 15 of 86 . The criteria used to create them are: divisions.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .0 structure used to allocate costs in the exact point of their appearance. in some instances.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.5. SAP ECC 6. using a drill-down system. the revenues of an organization. There can be only one Standard Hierarchy for a company code. areas of operation. To the highest node the root of the hierarchy.5 INTERNAL ORDERS An instrument used to monitor costs and. 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 . these are attached the nodes for each company code. N o profit center can be created without an allocation to one level in the standard hierarchy. The profit center is the main SAP ECC 6.

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

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

confidential - Page 18 of 86 .Process Flow Chart Primary Cost Element Secondary Cost Element SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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 19 of 86 .

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

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

to allocate costs from a sender to a receiver. at period-end closing.4 STATISTICAL KEY FIGURE MAINTENANCE Requirements and Expectations There is no concept of Statistical key figures in the existing system.confidential - Page 22 of 86 . Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6.0 Statistical Key Figure The statistical key figures are used in various distribution cycles. Business mapping to SAP ECC 6. SKF can be used across all the company codes.6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. based on the requirement of cost allocation.

Business Process Mapping to SAP ECC 6. Only primary costs can be reposted. 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. statistical key figures. the original cost element remains the same.6. L items are posted for the sender as well as ine for the receiver.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SAP ECC 6. Periodic reposting can be reversed and repeated as often as required. These are indirect allocation methods for which user-defined keys such as percentage rates.confidential - Page 23 of 86 . or posted amounts provide the basis for cost/quantity assignment. Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers. Under this procedure. each company codes can allocate their costs using the Standard allocation tools provided by SAP. Distribution & Assessment. For example. Cost allocations are performed under controlling area (GGC). amounts.0 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting. During this process. enabling the allocation to be recorded exactly.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. the costs collected on a cost center during the accounting period are allocated to receivers. These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once. 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. Distribution Distribution is a method of internal cost allocation that allocates primary 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.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.confidential - Page 24 of 86 . and so on) under an assessment cost element (category 42). SAP ECC 6. The concept and procedure would remain the same for profit center Assessment and Distribution cycles. allocating general & administrative costs.g. E. other cost centers. Further analysis is available through CCA reporting.

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.0 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6. Special Configuration consideration Standard SAP ECC 6.confidential - Page 25 of 86 .

through the planning and posting of all the actual costs. It is named as per following naming convention: Sitename . This is mandatory to capture the costs / expenses on the internal order against a budget. budgeting and tracking the costs of a particular nature of expense / cost.g. monitoring. in which company codes under if required can create Internal Orders for capturing costs for shot term simple projects and also for statistical reporting.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The SAP system enables you to monitor your internal orders throughout their entire life-cycle.6 INTERNAL ORDERS Requirements and Expectations There is no concept of Internal Orders in the existing system. and settle the costs of internal jobs and tasks. Order Type 300 is TLV Maintenance Internal Order. Order Type An order type has a large amount of control information important to order management. 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. and allocation of costs. All the above order for each Co code is defined as a separate order type. Any new order is created under an order type that results in transfer of certain parameters to the order. Description of Improvement Internal order would help in planning. e. Internal orders are normally used to plan.confidential Page 26 of 86 . Internal orders provide capabilities for planning. from initial creation. Special configuration consideration Standard SAP ECC 6.0 Description of Functional Deficit No SAP ECC 6.0 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.6. to the final settlement and archiving Business mapping to SAP ECC 6. collect. 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.Purpose Internal Order.

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 Business Blueprint for GGPL Controlling Module Hewlett-Packard . on creation of the Standard cost SAP ECC 6.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost.0 Product costing is a tool for planning costs and establishing prices for materials. for material valuation. the Standard Cost Estimate is created. Product costing is carried out at the plant ) level. 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. R Materials will be valuated at moving aw average price and Semi Finished Materials will be valuated at standard cost estimate. Batch Cost: In SAP. Conversion cost includes labor cost and overheads. The system uses the results of cost estimates to valuate material movements in Logistics. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period.2 CREATING. at the beginning of the period. 6. 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. marked and released for both Finished Products and Semi Finished Products. Thus. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. packing cost and conversion cost. R materials are maintained at Moving Average Price.7. Business mapping to SAP ECC 6.7 P RODUCT COST CONTROLLING Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. All costing data is stored with reference to a plant. 6. It enables you to calculate the minimum price at which a product can be profitably marketed. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. Material valuation is carried out at the Plant level. Labor Cost: The number of Labor hour time would get picked up from R outing master.7. 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. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. So.confidential - Page 28 of 86 .6. The following process will be applicable for all manufacturing companies like GGPL. or provision of a service.

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

Confirm production order. 2. 6. Discrete manufacturing will be used for production of Molten Glass. It also defines which resources are to be used and how the order costs are to be settled. So with all these links the standard costing estimate could be run for the materials. WIP would be calculated only for Open Production Orders. Process: Creation of Production Order. at which location. SAP ECC 6. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production.e. Issue materials 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. Sand and Polythene. Goods receipt against production order. With back flush the materials are issued to production and the finished goods posted to warehouse.4 DISCRETE MANUFACTURING PROCESS . Discrete Manufacturing: WIP gets calculated through a standard transaction. WIP means all debits Minus Credits of a production order. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP.This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .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. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. In SAP. Production Orders: A Production order defines which material is to be processed. at what time and how much work is required. 6.confidential - Page 30 of 86 .7.7. Mould Manufacturing. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots.SEMIFINISHED PRODUCTS Discrete manufacturing (i.

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

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

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 hen you create a production order. the system needs to summarize all the profit-related postings in profit centers. 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. if no other account assignment has been made. Each order item is assigned separately to a profit center. This default supports a productoriented and geographical division of your organization into profit centers. Sales orders are divided into header data and item data. since this is the finer level of detail.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). Consequently. Consequently. along with the credit posted when the production order is delivered or settled. 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 assignment of materials also forms the basis for the transfer of material stocks to Profit Center Accounting. The work in process determined can also be transferred to the relevant profit center. 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 allocations posted to the cost object are reflected on the assigned profit center. you usually do not need to enter a profit center manually.confidential - Page 33 of 86 . All the costs and internal cost allocations posted to the production order are passed on to the assigned profit center. This means that the when the goods issue is posted. Value Flows in PCA Assignments of materials to profit centers provide the default values for assignment of sales orders and manufacturing orders. SAP ECC 6. the system proposes the profit center from the master record (plant segment) of the material being produced. 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. 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. W ith internal goods movements also (such as stock transfers or material withdrawals) the profit center is derived from the material master.

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

Furnace wise. SAP ECC 6. IT Expenses.9 P ROFITABILITY ANALYSIS Requirements and Expectations In the existing system. Processes and Sub-Processes) for analysis. Example: Value fields are Billing Income. This is done through: Maintaining forms and drilldown reports Maintaining variables Operating Concern: Operating Concern GGC will be created for GGC. The profitability reports are used to display Profitability Analysis data that is stored at suitably aggregated level (Customers. 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. Profitability Segment: In Profitability Analysis. Communication. Business mapping to SAP ECC 6. income and expenses are analyzed by profitability segments. Profitability Segments are made up of combinations of characteristics and value fields.confidential - Page 35 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The system allocates the corresponding costs to the revenues for each market segment. Profitability Analysis analyzes the profit or loss of an organization by individual market segments. Travel Expenses. Characteristics: Characteristics in Profitability Analysis are the criteria according to which we can create and analyze plan and actual data. profitability analysis is done at L wise.6. L ine ocation wise.0 Costing based Profitability Analysis will be used. SBU wise for Internal wise manually.

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

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

05 1.00 1. Packing Costs. Freight Costs Energy Cost Mould Cost HR Cost Stores.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 6.01 3.05 2.04 2.04 1.01 1. MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.07 2.No.00 3.confidential - Page 38 of 86 .02 2.00 2.7 Sr.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .01 2.06 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 2.03 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 .06 2.12 Budgeting Sales Budget Computation of RM Costs.03 2.11 2.02 1.10 2.02 3.08 2.09 2.

00 Cost Allocation Hewlett-Packard .10 6.02 7.00 7.07 6.08 6.03 5.4.05 5. 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 7.00 6.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6.06 6.05 6.0 Business Blueprint for GGPL Controlling Module . Freight Costs Energy Cost Mould Cost HR Cost Stores.03 6.04 5.12 Budgeting Sales Budget Computation of RM Costs.01 5.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.00 5.02 6.09 6. Packing Costs.02 5.04 6.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.01 6.06 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 6.11 6.01 7.

No. cost center. Cost center(s) comparison Quarterly (S_ALR_87013623) Cost Center: Fiscal Quarterly comparison 05 Actual / Actual Controlling area. items period (KSB1) Cost Center: Cost center. Description Cost Center: Selection criteria Output 01 Actual/Plan/Variance (S_ALR_87013611) Cost Center: Controlling Area. plan costs. plan costs. absolute year. year. variance. year.0 Business Blueprint for GGPL Controlling Module Page 40 of 86 . absolute year. plan costs. period. cost element elements Controlling Area. period. variance % with cost . variance.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. variance % without cost . Fiscal Actual costs. Cost Element. Fiscal Actual costs. variance.8 REPORTS STANDARD REPORTS AVAILABE IN SAP CONTROLLING S. Cost Element. period. 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 element Controlling Area. Cost center(s) Variance 07 Display actual cost line Cost center. cost center. absolute year. Display actual cost line period items Hewlett-Packard . 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. Fiscal Actual costs. cost center.

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

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Actual L ine Items posted to the profitability segment Plan L ine Items posted to the profitability segment 18 Concern. Profit R eports on Customers.confidential - Page 42 of 86 . Controlling Area and Sub-Processes SAP ECC 6. 19 Execute Profitability Operating Concern. Processes Reports (KE30) Center.(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.

Cost Center Budget . Line wise and Furnace wise profitability. Payback period for Projects: Monitoring Payback period for projects (Internal Orders).confidential - Page 43 of 86 . SAP ECC 6.9 IDENTIFIED GAP S Production Budgeting Optimizer: The facility of optimizing the production budget is one of the requirements which are identified as GAP.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Availability check.

confidential - Page 44 of 86 . Not possible. 1 2 3 4 ANNEXURE A: SUMMARY OF R EQUIREMENTS Discussion Points on Blue Print Product cost (COGM) Cost Allocation . No. 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 . secondary & repacking cost.through Rework Order with working BOM.What is fixed portion? Cost Of Goods Sold . Close SAP ECC 6.Valuation at different rate? Stock reserve .Variable cost? And Value of remaining life of mould to be part of inventory.not last month. 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. Repacking .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Through Manual JV only possible. Realization Realization 10 Close 11 Realization 12 Restriction on certain cost elements to be part of COGM. Will be valuated at the month beginning only. Addressed through Price control "V" in Material Master . How to capture the cost? How the mould consumption cost absorbed in Product . Mould will be included in BOM/ PRT? Consumption will be determined based on the quantities mentioned in Backflush.will get YTD (April) Wtd Average Price.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 . 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. Stock visibility is std SAP functionality Primary & Secondary through BOM.10 Sr.Product transferred to other locations (Plants/ CFAs/ Companies). Packing Material cost consists of Primary.

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

price/ rate variance. For Sri Lanka "trading" is a separate SBU."Trading" will be a Sub Profit center under Main Profit centers like Pharma & C&P. Possible through Internal orders (Project code) & Cost centers.(SBU & Plant wise) Batch Cost including internal cullet generated & Consumed Close 30 31 Possible through breakup through SD Condition types This is SD report. Rate per 1000 pcs. category. Close Close 32 Reports are available from PP . Realization per Ton.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . There is master in system where the rate is updated once in a year and for new products as when they arise. depreciation AA module is in place then depreciation possible. Interest handled through manual working. ME wise Qty Value.24 Budgeting for interest. Currently the budgeted ex-factory value is taken as production value. should be generated Glass . market (export/ domestic). product mix variance. type of glass. Close 25 26 Capex budgets upload into system Projected P&L and BS from the available budget (remaining months) and from actual till date. The objective in the glass manufacturing is maximizing value and contribution. Possible with New Plan version for remaining months of the year. region. etc. Z development for Production MIS report with Production Value. Volume variance. Close SAP ECC 6. Possible through available CO-PA Characteristics. Trading caps and brushes- Close Close 27 Close 28 For India .CO.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.confidential - Page 46 of 86 . Close 29 Reports showing analyses of Sales from all the aspects like.

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

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

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

Vehicle wise / employee wise Safety Expenses . 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.Account Code wise & Expense nature (Domestic/ air / hotel etc.Activity Wise quantity & Value Monitoring Draw tons per line & furnace on daily basis.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Close Close Close 70 Close 71 Close 72 73 Close Close 74 Close 75 Available in PP Close SAP ECC 6.Class Wise & Reason wise Stoppage (Daily & Summary) Mould Cost Analysis .) wise Telephone / Mobile Expenses Telephone number wise & Employee wise Vehicle running & maintenance expenses .Item Wise.confidential - Page 50 of 86 .Line wise available & Utilized machine hours & Summarization (Daily & Summary). Group wise & Lot no wise Melting Cost .Consumption of Energy in Furnace Travel Analysis . Stoppage Analysis . Product wise allocation of Export Incentives possible through SD/ AR .Item wise & nature wise expenses Secondary manpower .61 Should get separate Decoration P&L Computation of Export Incentives Depreciation on GGPL Assets at Ansa.Time Rated Payment Department wise . 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 .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.manhours & amount Secondary manpower .

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

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

) No access to SPRO transaction. The manufacturing facilities are spread out in different parts of the world like India. the number of Furnaces and lines are unknown. USA & UK.. Sri Lanka.11 11.theglassgroup. http://www. At present.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 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.confidential - Page 53 of 86 . the number of Furnaces and lines are unknown. NJ Manufacturing plants in USA (Assumed) 1. SAP ECC 6. Implementation of the Blueprint is NOT in scope. Recommendations on the Blueprint are based on the Kosamba/Jambusar plant experiences. 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. Corporate office: Marlton. Very L imited access existing SAP R 3 system which is highly customized with Z* (per assessment and / BPPs.com/ 3. 2. Mays Landing.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. Flat River. No organization structure provided Source of Understanding: 1. MO Manufacturing: Glass Flint container manufacturing in Missouri and decoration / coated products operations in New Jersey. Business Process Procedures (Tcode explanations.) and the internet 2. NJ At present.

receives statistical cost postings from virtually all other CO components. costs can be posted to cost centers and internal orders from other R 3 modules (external costs). and production variances settled from cost objects. 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.11. SAP ECC 6. CO covers both the operational and the strategic aspects of management.2. by virtue of its basic design. It provides information for managers . There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components. If an organization divides accounting into internal and external viewpoints. In addition to direct postings from FI. Value flows can occur for many different purposes.2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. W ithin the Overhead Cost Controlling area.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). 11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 54 of 86 . etc.2. Profit Center accounting.1 INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process. costs from cost centers (as production activities are performed or from overhead allocation). Cost centers can then allocate costs to other cost / centers and orders.2 CO MODULE INTRODUCTION (Based on work done for India/Sri Lanka implementations) 11. CO represents the internal accounting perspective. Profitability Analysis can receive cost assessments from cost centers. settlements of cost from internal orders.

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 .

g. These variance calculations enable you to control business flows. Other R 3 modules generate data that has a direct impact on CO. an expense is posted to the GL At the same time. posted as a cost to the cost center (or other object in CO) for which the items have been purchased. In addition. all data relevant to cost flows automatically to Controlling from Financial Accounting. monitoring and optimization of all processes in 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. At the same time. are used to control the cost efficiency of individual areas of an organization. cost of goods issues. These expense postings to the G/ L could be manual journal entries. For example. the expense is .confidential Page 56 of 86 . or depreciation postings from Asset Accounting (FI-AA). That cost center's costs may later be passed on as overhead to a production cost center or elsewhere in CO. contribution margin accounting. The HR ) system allows you to allocate the cost of work to different Controlling (CO) objects. This involves recording both the consumption of production factors and the services provided by an organization. Therefore. Integration Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. business processes. The Financial Accounting application area of R/3 is a primary source of data for Controlling. As well as documenting actual events. The relevant accounts in Financial Accounting are managed in Controlling as cost elements or revenue elements. the system assigns the costs and revenues to different CO account assignment objects.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 . The Human R esources (HR modules can generate several types of cost postings to Controlling. planned personnel costs can be transferred to CO as input to CO planning. The L ogistics area of R 3 also has numerous integration points with Controlling (e. This enables you to compare and reconcile the values from Controlling and Financial Accounting. such as cost centers. process allocations and direct primary costs can be posted to the cost object (e. when non-stock / consumable items are purchased. The Production Planning (PP) and the Sales and Distribution area of Logistics also works very closely with Controlling. sales order item) SAP ECC 6. The data flow between the two components takes place on a regular basis. as well as the entire organization. most expense postings to the General L edger would result in a cost posting to CO. You can determine variances by comparing actual data with plan data. the main task of controlling is planning. overhead surcharges.11. It facilitates coordination. Consumption of activities. projects or orders. accounts payable postings. PP-production order. when doing a / goods issue to a controlling object or a goods receipt from production). Typically.2. Income statements such as.g..

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

Cost Center hierarchy. Introduction of Controlling concepts viz. Profit Center Hierarchy would enable GGC to track costs at the origin in a more efficient manner. 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.11. Controlling Area GGC would be created for Gujarat Glass Consolidated (GGPL CGCL GGUS. and PIR .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . UK). Controlling Area. (GGI) company code).. .confidential - Page 58 of 86 . Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes. Profit centers are designed based on the Processes. SAP ECC 6.S.3 CO ORGANIZATION STRUCTURE (The agreed organization structure covers the operations of U.

internal order etc. these are attached the nodes for each company code.confidential - Page 59 of 86 . To the highest node . There can be only one Standard Hierarchy for a company code. 11. Other than this.) Secondary cost elements Secondary cost elements are accounts created in controlling only. N o profit center can be created without an allocation to one level in the standard hierarchy.the root of the hierarchy. used to assure the instant reconciliation of the postings. The / criteria used to create them are: divisions. To the highest node the root of the hierarchy.4. some objects are created only in CO termed as Secondary Cost Elements . without any effect in Finance module.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders. areas of operation. These are not represented by GL accounts in FI. activities. SAP ECC 6. locations. used to measure the internal flows of values between different cost objects. it is mandatory that the posting be made using both a cost element and a cost object (cost center.4. Secondary cost elements are used for allocations and settlements. there are attached the nodes for each company code.11. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account.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 method works according to the keys defined by the user. to measure the internal flow of costs between Cost objects. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. The difference between FI and CO is that in CO.4 CO MASTER DATA 11.2 COST ELEMENTS In SAP. The cost center is the main R 3 structure used to allocate costs in the exact point of their appearance. and responsibility areas. N o cost center can be created without an allocation to one level in the standard hierarchy.1 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. All expense related G/ L accounts in FI are made Primary Cost Elements in CO. 11.4. using a drill-down system. other cost centers) under a cost element. The profit center is the main R 3 structure used to allocate costs in the exact point of their appearance. using a drill-down system. The / criteria used to create them are: function.

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .4 INTERNAL ORDERS An instrument used to monitor costs and. 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. the revenues of an organization.4. SAP ECC 6.11.confidential - Page 60 of 86 .

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.confidential - Page 61 of 86 . there is no concept of Cost Element. 31 Order / Project Results analysis Used to store result analysis data. 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).5. 41 Overhead .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .1 COST ELEMENT ACCOUNTING Requirements and Expectations At present. Most of the values are moved automatically from Financial Accounting to Controlling. The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. Cost and R evenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000.11. profitability segments and cost centers. 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. 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. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders.Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. as adequate discussion on business process and information is missing) 11.5 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.

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

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

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 6.0 Business Blueprint for GGPL Controlling Module Yes Hewlett-Packard .

No Information on Cost Centers for GGI and UK Company codes. Organizational unit within a controlling area that represents a clearly delimited location where costs occur. settlement-related. activities. activity-related. You can then determine the variances from these figures when you come to compare these plan values with the costs actually incurred. Description of Improvement Efficient monitoring of costs through cost centers. This tool enables you to carry out a comparison between actual postings and plan budgets.2 COST CENTER MAINTENANCE Requirements and Expectations In the existing system. This standard hierarchy has cost center groups attached to it. Change to cost centers can be made individually or collectively.5. Cost center budgeting provides a further method of planning in addition to primary cost and secondary cost planning. Cost Center Hierarchy No Information available.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Cost Center Planning and Budgeting Cost center planning involves entering plan figures for costs. Cost Centers for individual company codes under GGC will be created and will be assigned to the respective cost center group. prices or statistical key figures for a particular cost center and a particular planning period. 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. Business mapping to R/3 A standard hierarchy will be created for the Controlling Area (GGC). and/ or responsibility-related standpoints.confidential Page 65 of 86 . spatial. Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.11. You can make organizational divisions on the basis of functional. The actual cost centers are attached to this cost center group. costs incurred are captured in cost centers.

activity dependent cost elements planning will be carried out individually.3 ACTIVITY TYPE MAINTENANCE No Information available. or no activity types. they are linked to work centers in PP. multiple. But the cost will be different because. Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and . Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department.11.confidential - Page 66 of 86 . One particular activity type can be assigned to one or more cost centers.5. Activity types classify the activities produced in the cost centers within a controlling area. A cost center can be assigned one. activity planning will be done at the respective production cost centers. Business mapping to R/3 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. Requirements and Expectations There is no concept of activity types in the existing system. 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 . For example. For example. The variation in cost between one cost center and the other for the same activity type is taken care during the cost planning.

SKF can be used across all the company codes.4 STATISTICAL KEY FIGURE MAINTENANCE No Information available. based on the requirement of cost allocation. Requirements and Expectations There is no concept of Statistical key figures in the existing system.5.confidential - Page 67 of 86 . 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. to allocate costs from a sender to a receiver. Business mapping to R/3 Statistical Key Figure The statistical key figures are used in various distribution cycles. at period-end closing.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Under this procedure. L items are posted for the sender as well as ine for the receiver.5 COST ALLOCATION No Information available. or posted amounts provide the basis for cost/quantity assignment. These are indirect allocation methods for which user-defined keys such as percentage rates. For example.11. 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. the original cost element remains the same. the costs collected on a cost center during the accounting period are allocated to receivers. enabling the allocation to be recorded exactly. Distribution & Assessment. Only primary costs can be reposted.confidential - Page 68 of 86 . statistical key figures. During this process.5. Cost allocations are performed under controlling area (GGC). Periodic reposting can be reversed and repeated as often as required. Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers. These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once. Business Process Mapping to R/3 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting. 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. 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. amounts. SAP ECC 6. each company codes can allocate their costs using the Standard allocation tools provided by SAP. Distribution Distribution is a method of internal cost allocation that allocates primary costs.

SAP ECC 6.g. allocating general & administrative costs. other cost centers. The concept and procedure would remain the same for profit center Assessment and Distribution cycles. Further analysis is available through CCA reporting.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . E.confidential - Page 69 of 86 . and so on) under an assessment cost element (category 42). 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.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. The method works according to the keys defined by the user.

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

confidential - Page 72 of 86 .Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials. for material valuation. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate.confidential - Page 73 of 86 . MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period.2 CREATING. Material valuation is carried out at the Plant level.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .7. The system uses the results of cost estimates to valuate material movements in Logistics. marked and released for both Finished Products and Semi Finished Products. Product costing is carried out at the plant ) level.11. Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. 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. packing cost and conversion cost. or provision of a service. It enables you to calculate the minimum price at which a product can be profitably marketed. 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.7. SAP ECC 6. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export.7 PRODUCT COST CONTROLLING No Information available. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. Conversion cost includes labor cost and overheads. 11. The following process may be applicable for GGI as there is no information of Product Costing in GGI. All costing data is stored with reference to a plant. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. 11.5.5. Labor Cost: The number of Labor hour time would get picked up from R outing master.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. The following process will be applicable for all manufacturing companies like GGPL and CGCL. Batch Cost: In SAP. the Standard Cost Estimate is created.5.

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

Mould Manufacturing.e. Confirm production order. Issue materials against production order. WIP means all debits Minus Credits of a 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. The order could be triggered by the T Code MFBF. With backflush the materials are issued to production and the finished goods posted to warehouse. Discrete manufacturing will be used for production of Molten Glass. SAP ECC 6. 11. This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation.7.5.confidential - Page 75 of 86 . It also defines which resources are to be used and how the order costs are to be settled. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 11. Sand and Polythene. Discrete Manufacturing: WIP gets calculated through a standard transaction.5.5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1. In SAP. at what time and how much work is required. Process: Creation of Production Order.The Costing Sheet is picked from the valuation variant from the Costing variant.4 DISCRETE MANUFACTURING PROCESS . WIP would be calculated only for Open Production Orders. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. Goods receipt against production order. at which location. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots.SEMIFINISHED PRODUCTS Discrete manufacturing (i. So with all these links the standard costing estimate could be run for the materials.7. Production Orders: A Production order defines which material is to be processed.

confidential - Page 76 of 86 .2. 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 . Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. it cannot be re-processed for the period). This means that whatever costs remaining in the production orders are passed to FI. which does not interfere with the normal production process. Settlement is a financial transaction. If the settlement is not run. 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. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. 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.

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). independent areas within an organization. just like independent companies. Profit Centre Hierarchy No information available. PCA integrates with CO through its controlling area / company code relationships. profit centers are proposed on the basis of Process. The cost centers are linked to profit centers. This means that it takes place on a statistical basis at the same time as true accounting. The hierarchy is displayed in the annexure. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization.5. These areas are responsible for their costs and revenues. Transfer Pricing Concept Profit centers are responsible for their own costs and revenues and are treated as independent units within the legally independent company. A dummy profit center GGC Dummy has been created. You can use a transfer price to valuate goods movements between profit centers. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. They are judged by their profit or loss. 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.11. and so on) is not assigned to a profit center. For GGC. internal order.confidential - Page 77 of 86 . This is used by the system when there is no profit center assignment even though the field is made mandatory. 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. Profit Center Accounting evaluates the profit or loss of individual. Profit Center Accounting is a statistical accounting component in the SAP system.

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

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

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

It A also performs characteristic derivation for those fields for which derivation logic has been defined. or cost of goods manufactured for in-house products) can also be determined. and then enters it in the billing document. If the settlement profile of the order allows settling to profitability segments. Using SAP list viewer to display line items containing planning or actual data.confidential - Page 81 of 86 . from the document to the CO-P line item. CO-PA Planning Planning in Profitability Analysis allows you to plan sales. which you maintain in Customizing. 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). In addition. Settling Orders/ Projects Before you can settle an order or project to a profitability segment. you must create a settlement rule for the settlement object with a profitability segment as a receiver. This is done by: Executing profitability reports. depending on your business demands. You do this when you maintain the master data for the order or project. revenue and profitability data for any selected profitability segments. a variety of report types can be called and thereby display the data for profitability analysis. along with the customer and product numbers. planned cash discount). The system transfers all the characteristics defined in Profitability Analysis and contained in the billing document.Executing Reports in Profitability Analysis: By defining profitability reports. SAP ECC 6. 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". If sales deductions are known (granted discounts. the stock value of the product (delivered price for wholesale or retail goods.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . For direct postings in FI. 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. Standard P rofitability R eports and line item lists for planning and actual data can be executed. 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. these are also recorded in the billing document.

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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Hence GAPS could not be prepared.confidential - Page 86 of 86 .11.7 GAPS The requirements are NOT in place. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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