BUSIN ESS BL UEPR T FOR SAP ECC 6.

0 IN IMPLEMENTATION AT

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

Document Information
Project Name:

Gujarat glass private limited

SAP ECC 6.0 Implementation

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

Document Version No:

3.0 27/10/2006

Business Blueprint Preparation Review Method Giri Chandran

Document Version Date:

Preparation Date: Review Date:

15/09/2006 25/10/2006

Distribution List
From Date Phone/Fax

Giri Chandran
To Action*

27/10/2006
Due Date Phone/Fax

Mr A Balaji HP Mr. V. Rajshekar

Acceptance/Signoff

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

Ver. 1.0 Ver. 2.0 Ver. 3.0

14.09.06 15.09.06 28.09.06

Giri Chandran

New Document

Draft Version

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

Giri Chandran Giri Chandran

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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Ver. No.

Ver. Date

Revised By

Description

Filename

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

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....confidential - Page 5 of 86 ...........................................................................58 11..........................4.......................................................4...........................54 11....................................68 11...............5............................................59 11...............3Activity Type Maintenance...............7 GAPS .7Product Cost Controlling.......................................................................5...............................................86 SAP ECC 6..................................................................................................................................................................4Statistical Key Figure Maintenance ............67 11................................2CO Value Flows in SAP ............................................................................5.........................77 11.............................................................................................................................................................54 11..................1Cost Element Accounting...................................................................................4 CO Master Data................................................59 11...4.............................5..65 11.....................................................................................56 11.......................................................1Introduction...8Profit Center Accounting..........................66 11....2..................................3CO Module Integration with Other Modules .............................................................71 11...................6Internal Orders ....0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .........................................................73 11.....5Cost Allocation.....................54 11.....................................................................60 11........................................................................................80 11...........61 11.....................2Cost Center Maintenance...............2.............4............2Cost Elements.......................................83 11..........................2 CO Module Introduction ...1Cost Center Standard Hierarchy ..59 11............................................11....................................................................................................................................................2................3Profit Center Standard Hierarchy........................59 11......5..........................................................................................................................5.....9Profitability Analysis ..............5 Business Process Mapping to R/3 .......................................................................61 11...................................5....................................................................4Internal Orders ....................6 Reports....5.3 CO Organization Structure..............5.......

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

the HP consultants will determine the SAP functionality required to run the GGPL business. GGPL will further consolidate its position as market leader in Glass Industry. After successful commissioning of those projects. as well as through reviews of business processes. documentation and relevant reports using Q & A db from Value SAP methodology. At the conclusion of the blueprint.Major expansion plans for capacity increase are already on anvil. HP is the P Implementation Partner for SAP ECC 6. which are being implemented in Phase 1.2 ENTERPRISE RESOURCE PLANNING (ERP) PROJECT OBJECTIVES Objectives for the implementation project are: Implement SAP ECC 6. GGPL has decided to implement an integrated ER solution and have selected SAP ECC 6. The information was gathered through interviews conducted at the GGPL plant with the managers. 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. Blueprint document will serve .0 Modules. business procedures. which conducted requirement analysis of GGPL for the SAP ECC 6.confidential Page 7 of 86 . The immediate purpose of the analysis is to prepare to move forward rapidly with the implementation of GGPL 's SAP ECC 6.from this point forward the dual role of both official project scope as well as system acceptance criteria.0 standard business processes Adhere to business basic's and use SAP as a model for best business practices 1.0 implementation.3 OVERVIEW OF BLUEPRINT PHASE This document summarizes the findings of the Hewlett-Packard (HP) consulting team. key users and personnel from Information Systems.0 system.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .0 system. The SAP ECC 6. The Blueprint and its associated appendices present a summarized perspective of all functional business processes that will be implemented. SAP ECC 6.

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

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

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

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 12 of 86 .

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

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

confidential - Page 15 of 86 . The criteria used to create them are: divisions.5. SAP ECC 6.4 PROFIT CENTER STANDARD HIERARCHY The Profit Center Standard Hierarchy is similar to that of the Cost Center Standard Hierarchy that collects together all the profit centers created in a Controlling Area. in some instances. 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 . 5. The profit center is the main SAP ECC 6.0 structure used to allocate costs in the exact point of their appearance. There can be only one Standard Hierarchy for a company code. To the highest node the root of the hierarchy.5 INTERNAL ORDERS An instrument used to monitor costs and. using a drill-down system.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . N o profit center can be created without an allocation to one level in the standard hierarchy. areas of operation. the revenues of an organization. these are attached the nodes for each company code.

The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000.0 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. Cost and Revenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. Most of the values are moved automatically from Financial Accounting to Controlling. profitability segments and cost centers. SAP ECC 6. 41 Overhead . Assessment can be run for both plan and actual values. 12 Sales Deductions This cost element category can be used to post deductible items. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. Business Mapping to SAP ECC 6. The cost element category determines which cost elements can be used for which business transactions.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 16 of 86 .6 6. 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. Assessment is a method of internal cost allocation in which costs are apportioned from a sender cost center to receivers (cost centers. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. internal orders) using an assessment cost element. there is no concept of Cost Element.1 BUSINESS PROCESS MAPPING TO SAP ECC 6. 11 Revenue Elements This cost element category can be used to post revenues.0 COST ELEMENT ACCOUNTING Requirements and Expectations At present. 31 Order / Project Results analysis Used to store result analysis data.

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

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

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 .confidential - Page 19 of 86 .

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

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

to allocate costs from a sender to a receiver.confidential - Page 22 of 86 . based on the requirement of cost allocation. Business mapping to SAP ECC 6.4 STATISTICAL KEY FIGURE MAINTENANCE Requirements and Expectations There is no concept of Statistical key figures in the existing system. Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6.6. at period-end closing.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SKF can be used across all the company codes.0 Statistical Key Figure The statistical key figures are used in various distribution cycles.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.

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

Further analysis is available through CCA reporting. The method works according to the keys defined by the user. SAP ECC 6. The concept and procedure would remain the same for profit center Assessment and Distribution cycles. 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.confidential - Page 24 of 86 .g.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . and so on) under an assessment cost element (category 42). E. other cost centers.Pictorial depiction of Distribution: Assessment Assessment is a method of internal cost allocation by which the costs of a sender cost center is allocated (transferred) to receiver CO objects (orders. allocating general & administrative costs.

Special Configuration consideration Standard SAP ECC 6.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.confidential - Page 25 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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

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

marked and released for both Finished Products and Semi Finished Products. It enables you to calculate the minimum price at which a product can be profitably marketed. at the beginning of the period. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. All costing data is stored with reference to a plant. R materials are maintained at Moving Average Price. Batch Cost: In SAP. 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.2 CREATING. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. Material valuation is carried out at the Plant level. The system uses the results of cost estimates to valuate material movements in Logistics.7 P RODUCT COST CONTROLLING Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. 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. 6. on creation of the Standard cost SAP ECC 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. Business mapping to SAP ECC 6.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. Product costing is carried out at the plant ) level.confidential - Page 28 of 86 . maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. So. for material valuation. R Materials will be valuated at moving aw average price and Semi Finished Materials will be valuated at standard cost estimate. The following process will be applicable for all manufacturing companies like GGPL. Labor Cost: The number of Labor hour time would get picked up from R outing master. 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . CGCL and GGI US. packing cost and conversion cost. Conversion cost includes labor cost and overheads.0 Product costing is a tool for planning costs and establishing prices for materials.6. Thus.7. or provision of a service.7. the Standard Cost Estimate is created.

the process involves creation of a preliminary cost estimate for the cost collector. This apart. Suitable repetitive manufacturing profile is to be updated in the material master record to be able to back flush a material. The production version is linked to the Cost Collector through the Production Process number. On Marking the new price would be calculated and get reflected in the Future Planned Price of the material master. The Inventory will be valuated at Standard price. For normal production of glasses the R epetitive Manufacturing process will be followed. In GGC. 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.estimate. the Standard Cost Estimate would include both Batch cost. They hold the control mechanism like the planning and settlement profile. The marking and releasing of standard cost estimate would happen at the beginning of a period as described. The Controlling link is established because the system picks the Planned and Actual Costing Variants from the Order Type. with the facility of periodic settlement. The system auto creates a settlement rule and the receiver is always a Material.7.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Repetitive Manufacturing Process is applicable for products that are continuously made in high volumes. Product Cost Collector: In SAP.confidential - Page 29 of 86 .The costs for a period can be viewed through the Product cost collector. In repetitive manufacturing.BOTTLES.3 REPETITIVE MANUFACTURING PROCESS . This Production Process number is updated in the manufacturing orders assigned to the Product Cost Collector. the costs per material or per production version are determined via a product cost collector (product cost per period). SAP ECC 6. a separate Cost Collector is defined for the Production version. Order types are separate for this process. The activity quantities that are to be confirmed are defaulted on the basis of the routing Used for the preliminary cost estimate. Packing cost and Conversion cost. Process: Product Cost Collector is created at the time of Production Process. The Conversion cost would get picked up from the Planned Activity price maintained and Overhead costing sheet. On R eleasing the Future planned price would become the Present Price. it would be marked and released. The Costing Sheet is picked from the valuation variant from the Costing variant. This would be assigned a unique Costing and Valuation variants. 6.

Issue materials against production order. Process: Creation of Production Order. So with all these links the standard costing estimate could be run for the materials. at what time and how much work is required. at which location. Confirm production order. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. WIP means all debits Minus Credits of a production order. Sand and Polythene. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots.SEMIFINISHED PRODUCTS Discrete manufacturing (i.e. 6. WIP would be calculated only for Open Production Orders. Production Orders: A Production order defines which material is to be processed.7. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. 6.7. It also defines which resources are to be used and how the order costs are to be settled. SAP ECC 6.4 DISCRETE MANUFACTURING PROCESS .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. 2. With back flush the materials are issued to production and the finished goods posted to warehouse.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. Mould Manufacturing.This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. In SAP. Discrete manufacturing will be used for production of Molten Glass. Discrete Manufacturing: WIP gets calculated through a standard transaction.confidential - Page 30 of 86 . Goods receipt against production order.

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

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

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

Providing valuable profitability reports to the management for decision making purposes.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 6.0 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.confidential - Page 34 of 86 .Once you have transferred actual data to Profit Center Accounting. Description of improvements Profit Center would help in analyzing the revenue earned by a Profit center against the cost incurred.

The profitability reports are used to display Profitability Analysis data that is stored at suitably aggregated level (Customers. Profitability Segments are made up of combinations of characteristics and value fields. Furnace wise. The system allocates the corresponding costs to the revenues for each market segment. Profitability Segment: In Profitability Analysis.0 Costing based Profitability Analysis will be used. SBU wise for Internal wise manually. Example: Value fields are Billing Income. SAP ECC 6.9 P ROFITABILITY ANALYSIS Requirements and Expectations In the existing system. income and expenses are analyzed by profitability segments. Characteristics: Characteristics in Profitability Analysis are the criteria according to which we can create and analyze plan and actual data. etc. IT Expenses. profitability analysis is done at L wise. 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. L ine ocation wise. Travel Expenses.6.confidential - Page 35 of 86 . Profitability Analysis analyzes the profit or loss of an organization by individual market segments. Processes and Sub-Processes) for analysis. This is done through: Maintaining forms and drilldown reports Maintaining variables Operating Concern: Operating Concern GGC will be created for GGC. Business mapping to SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Communication.

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

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

02 1.confidential - Page 38 of 86 .No.02 2.03 Valuation Finished Goods Semi-finished Goods Raw Materials and others Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes SAP ECC 6.01 3.06 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 2.00 1. MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.12 Budgeting Sales Budget Computation of RM Costs.06 2.04 2. 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 .03 2. Packing Costs.11 2.07 2.10 2.09 2.08 2.05 1.7 Sr.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .04 1.00 3.01 2. Freight Costs Energy Cost Mould Cost HR Cost Stores.02 3.01 1.00 2.03 1.05 2.

08 6.01 7.10 6.09 6.03 6.11 6.05 6.03 5.04 6.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.07 6.00 Cost Allocation Hewlett-Packard .00 6.02 6. Packing Costs.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6.00 7.01 5.05 5.0 Business Blueprint for GGPL Controlling Module .03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.04 5.06 6.00 5.02 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 6.12 Budgeting Sales Budget Computation of RM Costs. 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 7.4.02 7. Freight Costs Energy Cost Mould Cost HR Cost Stores.

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

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

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

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Availability check. 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. Line wise and Furnace wise profitability. Cost Center Budget .

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

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

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

34 35 Material wise Price Variance Analysis vis-à-vis Budgeted prices. of containers & ocean freight analysis vis-à-vis budgeted rates should be done. Variance per alternative BOM (Production Version) is possible Standard reports available in SAP showing variance analysis (Production order wise). . Standard report available. Run SCE with costing variant which don t update the price.COPA Repacking will be addressed through rework order. Ocean freight. Also Material wise Price variance against Budget.Actual vis-à-vis Budget . Duplicate Finished product wise usage of packing material variance addressed in standard. Invoice wise accurate (actual or provisions if bills not received) freight costs like Local/ Inland freight. Product wise repacking & resorting costs should be available for accurate product wise costing.. Destination mix should also be analyzed. And run variance report with different versions. This amount should flow to books of accounts / MIS.33 Actual v/s Budget .SBU wise Budgeted price will be maintained in material master as Planned price1 for all RM for molten glass.confidential - Page 47 of 86 .Variance Packing BOM in case of customer specific is product-customer. Packing material wise consumption quantity & value . Differentiating packing material alone requires z report Multiple BOM is possible. Freight module Close Close Close 36 Close 37 close 38 Close 39 Close 40 Close 41 Z development Close SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . CHA & other charges need to be available as soon as the sales register is finalized. Primary & Secondary packing cost (rate & usage) variances for each product/ category/ line / furnace should be highlighted.Rate & Usage variance. Separate report showing the consumption of non-standard packing material needs to be generated. THC & Documentation. Port wise no.

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

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

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

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

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

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

costs from cost centers (as production activities are performed or from overhead allocation).confidential - Page 54 of 86 . Profit Center accounting. Cost objects (such as production orders. and production variances settled from cost objects. There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components.11.2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. by virtue of its basic design. CO represents the internal accounting perspective. Profitability Analysis can receive cost assessments from cost centers. settlements of cost from internal orders.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling. Value flows can occur for many different purposes.those who are inside an organization and are vested with directing and controlling its operations. It provides information for managers .2. SAP ECC 6. CO covers both the operational and the strategic aspects of management. If an organization divides accounting into internal and external viewpoints. receives statistical cost postings from virtually all other CO components.1 INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process.2 CO MODULE INTRODUCTION (Based on work done for India/Sri Lanka implementations) 11. W ithin the Overhead Cost Controlling area. In addition to direct postings from FI. costs can be posted to cost centers and internal orders from other R 3 modules (external costs). Cost centers can then allocate costs to other cost / centers and orders.) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object). 11. etc.2.

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 55 of 86 .The following graphic illustrates the integration within CO Value Flows: SAP ECC 6.

It facilitates coordination. That cost center's costs may later be passed on as overhead to a production cost center or elsewhere in CO. Other R 3 modules generate data that has a direct impact on CO. The Human R esources (HR modules can generate several types of cost postings to Controlling.. The Financial Accounting application area of R/3 is a primary source of data for Controlling. For example. cost of goods issues. 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). This involves recording both the consumption of production factors and the services provided by an organization. Therefore. The Production Planning (PP) and the Sales and Distribution area of Logistics also works very closely with Controlling. overhead surcharges. an expense is posted to the GL At the same time. monitoring and optimization of all processes in an organization. Integration Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system.confidential Page 56 of 86 .g. This enables you to compare and reconcile the values from Controlling and Financial Accounting. sales order item) SAP ECC 6. the system assigns the costs and revenues to different CO account assignment objects.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Typically. business processes. the expense is . These variance calculations enable you to control business flows.g. Consumption of activities.2. most expense postings to the General L edger would result in a cost posting to CO. The L ogistics area of R 3 also has numerous integration points with Controlling (e. The data flow between the two components takes place on a regular basis. or depreciation postings from Asset Accounting (FI-AA).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. the main task of controlling is planning. Income statements such as. PP-production order. projects or orders. At the same time. planned personnel costs can be transferred to CO as input to CO planning. 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. You can determine variances by comparing actual data with plan data. process allocations and direct primary costs can be posted to the cost object (e. The relevant accounts in Financial Accounting are managed in Controlling as cost elements or revenue elements. such as cost centers. posted as a cost to the cost center (or other object in CO) for which the items have been purchased. accounts payable postings. contribution margin accounting.11. These expense postings to the G/ L could be manual journal entries. as well as the entire organization. As well as documenting actual events. when non-stock / consumable items are purchased. In addition. all data relevant to cost flows automatically to Controlling from Financial Accounting. The HR ) system allows you to allocate the cost of work to different Controlling (CO) objects.

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

SAP ECC 6.3 CO ORGANIZATION STRUCTURE (The agreed organization structure covers the operations of U. Controlling Area GGC would be created for Gujarat Glass Consolidated (GGPL CGCL GGUS.confidential - Page 58 of 86 .S.. UK). Controlling Area. and PIR . Introduction of Controlling concepts viz. . 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. (GGI) company code). GGI. Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Cost Center hierarchy. Profit Center Hierarchy would enable GGC to track costs at the origin in a more efficient manner. Profit centers are designed based on the Processes.11.

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

4.confidential - Page 60 of 86 .4 INTERNAL ORDERS An instrument used to monitor costs and.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .11. 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 . the revenues of an organization. SAP ECC 6. in some instances.

SAP ECC 6. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. 12 Sales Deductions This cost element category can be used to post deductible items. 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 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.1 COST ELEMENT ACCOUNTING Requirements and Expectations At present. 41 Overhead .Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during 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. The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. The cost element category determines which cost elements can be used for which business transactions.5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .11. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. there is no concept of Cost Element. as adequate discussion on business process and information is missing) 11. Cost and R evenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. Most of the values are moved automatically from Financial Accounting to Controlling. All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000.confidential - Page 61 of 86 . 11 Revenue Elements This cost element category can be used to post revenues. 31 Order / Project Results analysis Used to store result analysis data. profitability segments and cost centers.

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

confidential - Page 63 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 .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.

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

But the cost will be different because. Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. Activity types classify the activities produced in the cost centers within a controlling area. A cost center can be assigned one. 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 dependent cost elements planning will be carried out individually. Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and . or no activity types.3 ACTIVITY TYPE MAINTENANCE No Information available. activity planning will be done at the respective production cost centers. they are linked to work centers in PP. For example.5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The variation in cost between one cost center and the other for the same activity type is taken care during the cost planning. 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. multiple. One particular activity type can be assigned to one or more cost centers. Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department. For example.confidential - Page 66 of 86 .11.

SKF can be used across all the company codes. at period-end closing. to allocate costs from a sender to a receiver.confidential - Page 67 of 86 . based on the requirement of cost allocation.4 STATISTICAL KEY FIGURE MAINTENANCE No Information available. Business mapping to R/3 Statistical Key Figure The statistical key figures are used in various distribution cycles.11.5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 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. Requirements and Expectations There is no concept of Statistical key figures in the existing system.

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

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

Pictorial depiction of Assessment: Description of improvements A systematic approach to distribute costs and revenues between CO objects.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 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 .

Internal Orders are created at controlling area level and at company code level. Internal orders will be used for capturing costs for short term simple projects and also for statistical reporting. Internal orders provide capabilities for planning. Any new order is created under an order type that results in transfer of certain parameters to the order.11.5. Internal orders are normally used to plan. E.6 INTERNAL ORDERS No Information available. monitoring. budgeting and tracking the costs of a particular nature of expense / cost. and allocation of costs. Order Type An order type has a large amount of control information important to order management. Special configuration consideration Standard Sap R/3 SAP ECC 6. Description of Improvement Internal order would help in planning. All the above order for each Co code is defined as a separate order type. in which company codes under if required can create Internal Orders for capturing costs for shot term simple projects and also for statistical reporting.g. Order Type 300 is TLV Maintenance Internal Order. and settle the costs of internal jobs and tasks. through the planning and posting of all the actual costs. It is named as per following naming convention: Site name .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . This information includes a range of default values that are used when a new order is created with this order type. collect. 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. The SAP system enables you to monitor your internal orders throughout their entire life-cycle. 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.confidential - Page 71 of 86 . from initial creation. This is mandatory to capture the costs / expenses on the internal order against a budget.Purpose Internal Order.

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

Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. The system uses the results of cost estimates to valuate material movements in Logistics. The following process may be applicable for GGI as there is no information of Product Costing in GGI.confidential - Page 73 of 86 .5.7. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate. or provision of a service. marked and released for both Finished Products and Semi Finished Products. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials. Batch Cost: In SAP. Conversion cost includes labor cost and overheads.7 PRODUCT COST CONTROLLING No Information available. Material valuation is carried out at the Plant level. for material valuation. 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. 11. All costing data is stored with reference to a plant.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. 11.5.11.5.7. Product costing is carried out at the plant ) level. SAP ECC 6. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. 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. The following process will be applicable for all manufacturing companies like GGPL and CGCL. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . the Standard Cost Estimate is created. It enables you to calculate the minimum price at which a product can be profitably marketed.2 CREATING. packing cost and conversion cost. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. Labor Cost: The number of Labor hour time would get picked up from R outing master.

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

Discrete manufacturing will be used for production of Molten Glass. WIP means all debits Minus Credits of a production order. Discrete Manufacturing: WIP gets calculated through a standard transaction. at which location.The Costing Sheet is picked from the valuation variant from the Costing variant. Confirm production order.e.confidential - Page 75 of 86 . Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production.7. Production Orders: A Production order defines which material is to be processed. This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. Process: Creation of Production Order. WIP would be calculated only for Open Production Orders. Mould Manufacturing.SEMIFINISHED PRODUCTS Discrete manufacturing (i. Goods receipt against production order. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots.4 DISCRETE MANUFACTURING PROCESS . Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. With backflush the materials are issued to production and the finished goods posted to warehouse. 11. Sand and Polythene. In SAP.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .5. 11. The order could be triggered by the T Code MFBF.5. Issue materials against production order.5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1.7. at what time and how much work is required. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. 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. SAP ECC 6.

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.2. it cannot be re-processed for the period). Settlement is a financial transaction. 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. R epetitive Manufacturing only P eriodic Settlement is allowed for the R Schedule Header (once a cost collector un has been settled. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. the books are not going to be balanced. Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. 3. which does not interfere with the normal production process. This means that whatever costs remaining in the production orders are passed to FI.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 76 of 86 . If the settlement is not run.

Dummy Profit Center: The dummy profit center is updated in data transfers whenever the object to which the data was originally posted (cost center. You can use a transfer price to valuate goods movements between profit centers.5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . and so on) is not assigned to a profit center. Profit Center Accounting evaluates the profit or loss of individual. For GGC. The hierarchy is displayed in the annexure. A dummy profit center GGC Dummy has been created. Profit Centre Hierarchy No information available. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. This is used by the system when there is no profit center assignment even though the field is made mandatory. 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.confidential - Page 77 of 86 . The cost centers are linked to profit centers. Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. This means that it takes place on a statistical basis at the same time as true accounting. just like independent companies. These areas are responsible for their costs and revenues. profit centers are proposed on the basis of Process. SAP ECC 6. internal order. This ensures that the data in Profit Center Accounting is complete. independent areas within an organization.11. They are judged by their profit or loss.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). PCA integrates with CO through its controlling area / company code relationships. Transfer Pricing Concept Profit centers are responsible for their own costs and revenues and are treated as independent units within the legally independent company. Profit Center Accounting is a statistical accounting component in the SAP system. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization.

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

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.Once you have transferred actual data to Profit Center Accounting.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 79 of 86 . Description of improvements Profit Center would help in analyzing the revenue earned by a Profit center against the cost incurred. you can analyze it immediately according to the period accounting approach using the Standard Reports in the information system.

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

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

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

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

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

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

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11.6

REPORTS
CONTROLLING

SANDARD REPORTS AVAILABE IN SAP

S.No.

Description Cost Center:

Selection criteria

Output

01

Actual/Plan/Variance (S_ALR_87013611) Cost Center:

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

02

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

03

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

04

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

Fiscal

Quarterly comparison

05

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

Fiscal

Fiscal year comparison

06

Variances (S_ALR_87013627) Cost Center:

Controlling area, period, Cost center(s)

Variance

07

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

List of all actual line items affecting the cost center

08

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

L of all plan line items affecting ist the cost center

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

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

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

Actual values of period 1 to N

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

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

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

AR / AP profit center wise

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

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17

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

Concern,

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

18

Concern,

19

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

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

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