BUSIN ESS BL UEPR T FOR SAP ECC 6.

0 IN IMPLEMENTATION AT

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

Document Information
Project Name:

Gujarat glass private limited

SAP ECC 6.0 Implementation

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

Document Version No:

3.0 27/10/2006

Business Blueprint Preparation Review Method Giri Chandran

Document Version Date:

Preparation Date: Review Date:

15/09/2006 25/10/2006

Distribution List
From Date Phone/Fax

Giri Chandran
To Action*

27/10/2006
Due Date Phone/Fax

Mr A Balaji HP Mr. V. Rajshekar

Acceptance/Signoff

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

Ver. 1.0 Ver. 2.0 Ver. 3.0

14.09.06 15.09.06 28.09.06

Giri Chandran

New Document

Draft Version

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

Giri Chandran Giri Chandran

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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Ver. No.

Ver. Date

Revised By

Description

Filename

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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

SAP ECC 6. Sri Lanka. The scope of implementation is in India & Sri Lanka. GGPL has requested to include the same in scope. In all.confidential - Page 6 of 86 . the 7 furnaces of the company with 27 automatic production lines. W e have included Nattandiya plant in blueprint document with express understanding that addition efforts required will be suitably addressed via change management.1 1.1 EXECUTIVE SUMMARY BACKGROUND Gujarat Glass (P) L imited [GGP ] is a leading manufacturer of glass based products for pharmaceutical and L cosmetic industries. The manufacturing facilities are spread out in different parts of the world like India. USA & UK. produces 7 million glass bottles and vials every day throughout the year for quality conscious customers in the healthcare and cosmetics industry. 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. The specific solution in the scope of this document comprises of Implementation of SAP ECC 6. J ambusar plant is the world's largest pharma amber bottles manufacturing plant at a single location. Kosamba (in India) & R atmalana (in Sri L anka) plants.0 covering J ambusar. many of which are electronically controlled state-ofthe-art machines. Nattandiya plant was not part of the scope originally.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

2 ENTERPRISE RESOURCE PLANNING (ERP) PROJECT OBJECTIVES Objectives for the implementation project are: Implement SAP ECC 6. The information was gathered through interviews conducted at the GGPL plant with the managers. The immediate purpose of the analysis is to prepare to move forward rapidly with the implementation of GGPL 's SAP ECC 6. The Blueprint and its associated appendices present a summarized perspective of all functional business processes that will be implemented. 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. as well as through reviews of business processes. After successful commissioning of those projects.Major expansion plans for capacity increase are already on anvil. which are being implemented in Phase 1. documentation and relevant reports using Q & A db from Value SAP methodology. business procedures. 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.from this point forward the dual role of both official project scope as well as system acceptance criteria.0 system. SAP ECC 6.0 implementation. GGPL has decided to implement an integrated ER solution and have selected SAP ECC 6.confidential Page 7 of 86 . At the conclusion of the blueprint.0 standard business processes Adhere to business basic's and use SAP as a model for best business practices 1.3 OVERVIEW OF BLUEPRINT PHASE This document summarizes the findings of the Hewlett-Packard (HP) consulting team. key users and personnel from Information Systems. The SAP ECC 6.0.0 system. Blueprint document will serve .0 Modules.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . which conducted requirement analysis of GGPL for the SAP ECC 6. HP is the P Implementation Partner for SAP ECC 6.

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

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

The following graphic illustrates the integration within CO Value Flows: SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 10 of 86 .

That cost center's costs may later be passed on as overhead to a production cost center or elsewhere in CO.confidential Page 11 of 86 . are used to control the cost efficiency of individual areas of an organization. if the sales order item is a cost object.g. the system assigns the costs and revenues to different CO account assignment objects. when nonstock consumable items are purchased. PP-production order. monitoring and optimization of all processes in an organization. when doing a goods issue to a controlling object or a goods receipt from production). The billing document can incur revenues directly to CO-PA or to the sales order. You can determine variances by comparing actual data with plan data. The L ogistics area of SAP ECC 6. Typically.3 CO MODULE INTEGRATION WITH OTHER MODULES Controlling provides you with information for management decision-making. This enables you to compare and reconcile the values from Controlling and Financial Accounting. overhead surcharges.0 also has numerous integration points with Controlling (e. Consumption of activities. variances and price differences are settled to CO-PA. Other SAP ECC 6. an expense is posted to the GL At the same time. most expense postings to the General L edger would result in a cost posting to CO. Therefore. Income statements such as. CO-PCA and FI. projects or orders. the expense . It facilitates coordination. The relevant accounts in Financial Accounting are managed in Controlling as cost elements or revenue elements. 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. all data relevant to cost flows automatically to Controlling from Financial Accounting. For example. The Financial Accounting application area of SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The Production Planning (PP) and the Sales and Distribution area of Logistics also works very closely with Controlling. Integration Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system.0 modules generate data that has a direct impact on CO. The HR ) system allows you to allocate the cost of work to different Controlling (CO) objects. These expense postings to the G/ L could be manual journal entries. the main task of controlling is planning. At the same time. sales order item) and by doing the period closing data like W IP. In addition. as well as the entire organization. is posted as a cost to the cost center (or other object in CO) for which the items have been purchased. planned personnel costs can be transferred to CO as input to CO planning. or depreciation postings from Asset Accounting (FI-AA). These variance calculations enable you to control business flows.g. business processes. This involves recording both the consumption of production factors and the services provided by an organization. The Human R esources (HR modules can generate several types of cost postings to Controlling. process allocations and direct primary costs can be posted to the cost object (e. contribution margin accounting. such as cost centers. The data flow between the two components takes place on a regular basis.0 is a primary source of data for Controlling. accounts payable postings. As well as documenting actual events. cost of goods issues.. SAP ECC 6.

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

. SAP ECC 6. Profit Center Hierarchy would enable GGC to track costs at the origin in a more efficient manner.). Controlling Area GGC would be created for Gujarat Glass Consolidated (GGPL CGCL 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 Profit Center Hierarchy considering GGC are enclosed in the annexure. Profit centers are designed based on the Processes. Cost Center hierarchy.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 13 of 86 . .4 CO ORGANIZATION STRUCTURE Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes. Introduction of Controlling concepts viz. Controlling Area.

All expense related G/ L accounts in FI are made Primary Cost Elements in CO. used to measure the internal flows of values between different cost objects. To the highest node . The method works according to the keys defined by the user.5 5. some objects are created only in CO termed as Secondary Cost Elements . The difference between FI and CO is that in CO. using a drill-down system.confidential Page 14 of 86 . SAP ECC 6.1 CO MASTER DATA CONTROLLING AREA The Controlling Area is the business unit where Cost Accounting is carried out. These are not represented by GL accounts in FI. Each controlling area has a unique standard hierarchy. Secondary cost elements are used for allocations and settlements. to measure the internal flow of costs between Cost objects.0 structure used to allocate costs in the exact point of their appearance. without any effect in Finance module. and responsibility areas. locations. The cost center is the main SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The Company Code allocated to the Controlling area must use the same operating chart of accounts and the same fiscal year variant. 5.2 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. there are attached the nodes for each company code. it is mandatory that the posting be made using both a cost element and a cost object (cost center. 5.) Secondary cost elements Secondary cost elements are accounts created in controlling only. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders.3 COST ELEMENTS In SAP. The criteria used to create them are: function. Other than this. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. other cost centers) under a cost element. internal order etc. No cost center can be created without an allocation to one level in the standard hierarchy. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. To the standard hierarchy of cost centers are attached all the cost centers created for a Company code.the root of the hierarchy. the highest node is created when maintaining the Structure. activities. used to assure the instant reconciliation of the postings.

0 structure used to allocate costs in the exact point of their appearance. To the highest node the root of the hierarchy. The criteria used to create them are: divisions.5 INTERNAL ORDERS An instrument used to monitor costs and.confidential - Page 15 of 86 . N o profit center can be created without an allocation to one level in the standard hierarchy. 5. these are attached the nodes for each company code. the revenues of an organization. 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. areas of operation. using a drill-down system. The profit center is the main SAP ECC 6.5. There can be only one Standard Hierarchy for a company code. 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 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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

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

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

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

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

Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and . Business mapping to SAP ECC 6.0 Activity types describe the activity produced by a cost center and are measured in units of time or quantity.confidential - Page 21 of 86 . A cost center can be assigned one. activity dependent cost elements planning will be carried out individually. Activity types classify the activities produced in the cost centers within a controlling area. they are linked to work centers in PP. multiple. Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department. One particular activity type can be assigned to one or more cost centers. For example.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . or no activity types. Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6. 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. But the cost will be different because. The variation in cost between one cost center and the other for the same activity type is taken care during the cost planning.6. For example.3 ACTIVITY TYPE MAINTENANCE Requirements and Expectations There is no concept of activity types in the existing system.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.

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

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

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

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 25 of 86 .0 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6. 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.

g. from initial creation.6 INTERNAL ORDERS Requirements and Expectations There is no concept of Internal Orders in the existing system. Internal order once created will be referred in raising a Purchase order in the account assignment category. Internal orders provide capabilities for planning. Order Type An order type has a large amount of control information important to order management. collect. budgeting and tracking the costs of a particular nature of expense / cost. to the final settlement and archiving Business mapping to SAP ECC 6.6. in which company codes under if required can create Internal Orders for capturing costs for shot term simple projects and also for statistical reporting.0 Description of Functional Deficit No SAP ECC 6. through the planning and posting of all the actual costs. Description of Improvement Internal order would help in planning. Internal orders are normally used to plan. It is named as per following naming convention: Sitename . All the above order for each Co code is defined as a separate order type. Internal Orders are created at controlling area level and at company code level. Special configuration consideration Standard SAP ECC 6. Any new order is created under an order type that results in transfer of certain parameters to the order. Order Type 300 is TLV Maintenance Internal Order. Internal orders will be used for capturing costs for short term simple projects and also for statistical reporting. and settle the costs of internal jobs and tasks. e.Purpose Internal Order. This information includes a range of default values that are used when a new order is created with this order type.confidential Page 26 of 86 . and allocation of costs. monitoring. The SAP system enables you to monitor your internal orders throughout their entire life-cycle.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . This is mandatory to capture the costs / expenses on the internal order against a budget.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.

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

All costing data is stored with reference to a plant.2 CREATING.7. CGCL and GGI US. Conversion cost includes labor cost and overheads. So. Business mapping to SAP ECC 6.7 P RODUCT COST CONTROLLING Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. Thus.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Batch Cost: In SAP.7. 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 following process will be applicable for all manufacturing companies like GGPL. R materials are maintained at Moving Average Price. 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. Product costing is carried out at the plant ) level. marked and released for both Finished Products and Semi Finished Products. Labor Cost: The number of Labor hour time would get picked up from R outing master. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. It enables you to calculate the minimum price at which a product can be profitably marketed. the Standard Cost Estimate is created. on creation of the Standard cost SAP ECC 6. packing cost and conversion cost. R Materials will be valuated at moving aw average price and Semi Finished Materials will be valuated at standard cost estimate.confidential - Page 28 of 86 . at the beginning of the period. Material valuation is carried out at the Plant level. Conversion Cost Overhead Cost The Overhead cost would get calculated as per the parameters given in the overhead-costing sheet maintained in the Valuation Variant. or provision of a service.6. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export.0 Product costing is a tool for planning costs and establishing prices for materials.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. The system uses the results of cost estimates to valuate material movements in Logistics. for material valuation. 6. 6. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained.

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

Production Orders: A Production order defines which material is to be processed. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. Mould Manufacturing.7. 2. Issue materials against production order. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance.This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. Process: Creation of Production Order.4 DISCRETE MANUFACTURING PROCESS .SEMIFINISHED PRODUCTS Discrete manufacturing (i. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. SAP ECC 6. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. So with all these links the standard costing estimate could be run for the materials. Discrete Manufacturing: WIP gets calculated through a standard transaction. 6.e.confidential - Page 30 of 86 . WIP means all debits Minus Credits of a production order.7. Discrete manufacturing will be used for production of Molten Glass.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 6. With back flush the materials are issued to production and the finished goods posted to warehouse. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. It also defines which resources are to be used and how the order costs are to be settled. Sand and Polythene. WIP would be calculated only for Open Production Orders. In SAP.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. Goods receipt against production order. at which location. at what time and how much work is required. Confirm production order.

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

confidential - Page 32 of 86 .0 An organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. Business mapping to SAP ECC 6.6. For GGC. The cost centers are linked to profit centers. PCA integrates with CO through its controlling area / company code relationships. and so on) is not assigned to a profit center. Profit Center Accounting is a statistical accounting component in the SAP system. They are judged by their profit or loss.8 P ROFIT CENTER ACCOUNTING Requirements and Expectations To draw P&L and BS at the level of SBU s (Profit Centers). This ensures that the data in Profit Center Accounting is complete. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization. You can use a transfer price to valuate goods movements between profit centers. profit centers are proposed on the basis of Process. Profit Center Accounting evaluates the profit or loss of individual. The hierarchy is displayed in the annexure. independent areas within an organization. A dummy profit center GGC Dummy has been created. These areas are responsible for their costs and revenues. Dummy Profit Center: The dummy profit center is updated in data transfers whenever the object to which the data was originally posted (cost center.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . just like independent companies. 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. Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. internal order. Profit Centre Hierarchy To be discussed & finalized with the core team. This is used by the system when there is no profit center assignment even though the field is made mandatory. This means that it takes place on a statistical basis at the same time as true accounting.

the goods usage which corresponds to the revenues is also passed on to the profit center of the sales order. along with the credit posted when the production order is delivered or settled. W hen you create a production order. you usually do not have to enter it manually. the system proposes the profit center from the master record (plant segment) of the material being produced. The profit center assignment is also passed on from the sales order through the logical chain sales order -> delivery note -> goods issue -> billing document. It is necessary to assign SD sales orders to profit centers in order to reflect sales revenues and sales deductions. The system proposes the profit center of the product in the sender plant as the default profit center. Consequently. Sales orders are divided into header data and item data. the system needs to summarize all the profit-related postings in profit centers. The assignment of materials also forms the basis for the transfer of material stocks to Profit Center Accounting. W ith internal goods movements also (such as stock transfers or material withdrawals) the profit center is derived from the material master. Value Flows in PCA Assignments of materials to profit centers provide the default values for assignment of sales orders and manufacturing orders.PCA Planning The principal aim of profit center planning is to provide data and key figures for the purpose of planning for responsibility areas (profit centers). Before you can analyze your profits by profit center. since this is the finer level of detail. All the costs and internal cost allocations posted to the production order are passed on to the assigned profit center. You need to assign cost centers to profit centers so that you can reflect all the primary costs from Financial Accounting and all secondary allocations from Cost Center Accounting in Profit Center Accounting. The work in process determined can also be transferred to the relevant profit center. if no other account assignment has been made. you usually do not need to enter a profit center manually.confidential - Page 33 of 86 . This default supports a productoriented and geographical division of your organization into profit centers. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . This means that the when the goods issue is posted. 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. All the costs and allocations posted to the cost object are reflected on the assigned profit center. Each order item is assigned separately to a profit center. Consequently.

Providing valuable profitability reports to the management for decision making purposes. you can analyze it immediately according to the period accounting approach using the Standard Reports in the information system.confidential - Page 34 of 86 .0 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6. Special Configuration consideration Standard SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Description of improvements Profit Center would help in analyzing the revenue earned by a Profit center against the cost incurred.Once you have transferred actual data to Profit Center Accounting.

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .0 Costing based Profitability Analysis will be used.9 P ROFITABILITY ANALYSIS Requirements and Expectations In the existing system. Processes and Sub-Processes) for analysis. Communication.confidential - Page 35 of 86 . This is done through: Maintaining forms and drilldown reports Maintaining variables Operating Concern: Operating Concern GGC will be created for GGC. SAP ECC 6. Business mapping to SAP ECC 6.6. Furnace wise. Profitability Analysis analyzes the profit or loss of an organization by individual market segments. The system allocates the corresponding costs to the revenues for each market segment. 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. The profitability reports are used to display Profitability Analysis data that is stored at suitably aggregated level (Customers. etc. Profitability Segment: In Profitability Analysis. Example: Value fields are Billing Income. SBU wise for Internal wise manually. Travel Expenses. 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 Segments are made up of combinations of characteristics and value fields. IT Expenses. profitability analysis is done at L wise. L ine ocation wise.

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

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

09 2.05 1.08 2.01 1.00 2.10 2.00 3.7 Sr. Packing 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 3 .confidential - Page 38 of 86 .03 2.02 1.02 3.02 2.11 2. Freight Costs Energy Cost Mould Cost HR Cost Stores.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 2.04 2.03 1.06 2.00 1.04 1.07 2.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .No.05 2.12 Budgeting Sales Budget Computation of RM Costs.01 3.01 2. MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.03 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.

04 6. Freight Costs Energy Cost Mould Cost HR Cost Stores.01 5. Packing Costs.07 6.00 Cost Allocation Hewlett-Packard .05 6.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.00 6.05 5.12 Budgeting Sales Budget Computation of RM Costs.0 Business Blueprint for GGPL Controlling Module .06 6.02 7.11 6.00 7.10 6. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7.04 5.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 6.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.02 5.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6.00 5.09 6.03 6.01 7.03 5.08 6.02 6.4.01 6.

Fiscal Actual costs. absolute year. Fiscal Actual costs. year. Display actual cost line period items Hewlett-Packard . period. items period (KSB1) Cost Center: Cost center. Cost center(s) comparison Fiscal year (S_ALR_87013624) Cost Center: Fiscal Fiscal year comparison 06 Variances (S_ALR_87013627) Cost Center: Controlling area. absolute year. Cost Element. Cost center(s) comparison Quarterly (S_ALR_87013623) Cost Center: Fiscal Quarterly comparison 05 Actual / Actual Controlling area. cost center.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 6.0 Business Blueprint for GGPL Controlling Module Page 40 of 86 . Cost Element. Description Cost Center: Selection criteria Output 01 Actual/Plan/Variance (S_ALR_87013611) Cost Center: Controlling Area. variance % with cost . period. variance. plan costs. absolute year. variance. variance % without cost . plan costs. variance % cost element Controlling Area. period. variance.8 REPORTS STANDARD REPORTS AVAILABE IN SAP CONTROLLING S. cost element elements Controlling Area. Cost center(s) Variance 07 Display actual cost line Cost center. period. cost element element group 02 Actual/Plan/Variance (S_ALR_87013612) Cost Center: 03 Actual/Plan/Variance (S_ALR_87013612) Cost Center: 04 Actual / Actual Controlling area. plan costs. cost center. cost center.No. Fiscal Actual costs. year.

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

(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. Processes Reports (KE30) Center.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Controlling Area and Sub-Processes SAP ECC 6. 19 Execute Profitability Operating 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 . Profit R eports on Customers.

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

Realization Realization 10 Close 11 Realization 12 Restriction on certain cost elements to be part of COGM.confidential - Page 44 of 86 . Addressed through Price control "V" in Material Master . 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. Stock visibility is std SAP functionality Primary & Secondary through BOM. 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. Mould will be included in BOM/ PRT? Consumption will be determined based on the quantities mentioned in Backflush. Close SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . No. Through Manual JV only possible.Product transferred to other locations (Plants/ CFAs/ Companies).What is fixed portion? Cost Of Goods Sold . Activity planned price determined either by capacity or the activities performed in the prod cctr and price calculated based on that.10 Sr.Valuation at different rate? Stock reserve . How to capture the cost? How the mould consumption cost absorbed in Product . 1 2 3 4 ANNEXURE A: SUMMARY OF R EQUIREMENTS Discussion Points on Blue Print Product cost (COGM) Cost Allocation .Variable cost? And Value of remaining life of mould to be part of inventory. Repacking .will get YTD (April) Wtd Average Price. Packing Material cost consists of Primary. Will be valuated at the month beginning only. Not possible.not last month. Mould discussion not yet finalized? Possible through Cost Component Structure Status Close Close Close Close 5 6 Realization Realization 7 Fixed overhead allocation on Normal capacity? Realization 8 9 Resorting inventory . secondary & repacking cost.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 .through Rework Order with working BOM.

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

etc.Decoration type Sales qty & value Break up The port wise & type wise (20 / 40 ft) list of containers dispatched during the month should be available at the end of the month. Close Close 32 Reports are available from PP . category. Close 29 Reports showing analyses of Sales from all the aspects like. Possible through Internal orders (Project code) & Cost centers. type of glass. product mix variance. Interest handled through manual working. Volume variance. depreciation AA module is in place then depreciation possible. price/ rate variance. Rate per 1000 pcs. should be generated Glass . Currently the budgeted ex-factory value is taken as production value. Trading caps and brushes- Close Close 27 Close 28 For India ."Trading" will be a Sub Profit center under Main Profit centers like Pharma & C&P.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Possible with New Plan version for remaining months of the year. Realization per Ton. Possible through available CO-PA Characteristics. For Sri Lanka "trading" is a separate SBU. The objective in the glass manufacturing is maximizing value and contribution. There is master in system where the rate is updated once in a year and for new products as when they arise. market (export/ domestic). region.confidential - Page 46 of 86 . ME wise Qty Value. Close 25 26 Capex budgets upload into system Projected P&L and BS from the available budget (remaining months) and from actual till date. Z development for Production MIS report with Production Value.24 Budgeting for interest.(SBU & Plant wise) Batch Cost including internal cullet generated & Consumed Close 30 31 Possible through breakup through SD Condition types This is SD report. Close SAP ECC 6.CO.

Destination mix should also be analyzed.Actual vis-à-vis Budget .COPA Repacking will be addressed through rework order.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 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.Variance Packing BOM in case of customer specific is product-customer. CHA & other charges need to be available as soon as the sales register is finalized. Also Material wise Price variance against Budget. of containers & ocean freight analysis vis-à-vis budgeted rates should be done. Primary & Secondary packing cost (rate & usage) variances for each product/ category/ line / furnace should be highlighted. Run SCE with costing variant which don t update the price. Ocean freight. Separate report showing the consumption of non-standard packing material needs to be generated. Packing material wise consumption quantity & value . THC & Documentation. Freight module Close Close Close 36 Close 37 close 38 Close 39 Close 40 Close 41 Z development Close SAP ECC 6.SBU wise Budgeted price will be maintained in material master as Planned price1 for all RM for molten glass. Duplicate Finished product wise usage of packing material variance addressed in standard. This amount should flow to books of accounts / MIS. Differentiating packing material alone requires z report Multiple BOM is possible. Port wise no.33 Actual v/s Budget .. And run variance report with different versions. Variance per alternative BOM (Production Version) is possible Standard reports available in SAP showing variance analysis (Production order wise).Rate & Usage variance. Standard report available. 34 35 Material wise Price Variance Analysis vis-à-vis Budgeted prices.confidential - Page 47 of 86 .

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

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

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

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

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

11 11. 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.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Sri Lanka. NJ Manufacturing plants in USA (Assumed) 1. Very L imited access existing SAP R 3 system which is highly customized with Z* (per assessment and / BPPs. Corporate office: Marlton.theglassgroup. The manufacturing facilities are spread out in different parts of the world like India. the number of Furnaces and lines are unknown. MO Manufacturing: Glass Flint container manufacturing in Missouri and decoration / coated products operations in New Jersey. Recommendations on the Blueprint are based on the Kosamba/Jambusar plant experiences. USA & UK. No organization structure provided Source of Understanding: 1. NJ At present. Flat River. Implementation of the Blueprint is NOT in scope.) No access to SPRO transaction. At present. Business Process Procedures (Tcode explanations. Mays Landing. 2.confidential - Page 53 of 86 . 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..) and the internet 2. http://www. SAP ECC 6. the number of Furnaces and lines are unknown.com/ 3.1 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.

confidential - Page 54 of 86 . and production variances settled from cost objects.those who are inside an organization and are vested with directing and controlling its operations. 11. There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components. Cost centers can then allocate costs to other cost / centers and orders. Cost objects (such as production orders. Profitability Analysis can receive cost assessments from cost centers. costs can be posted to cost centers and internal orders from other R 3 modules (external costs). If an organization divides accounting into internal and external viewpoints. It provides information for managers . Profit Center accounting. W ithin the Overhead Cost Controlling area. CO covers both the operational and the strategic aspects of management. In addition to direct postings from FI.2. CO represents the internal accounting perspective. by virtue of its basic design. etc. SAP ECC 6.2.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .1 INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process. costs from cost centers (as production activities are performed or from overhead allocation). receives statistical cost postings from virtually all other CO components.) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object).2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. settlements of cost from internal orders.2 CO MODULE INTRODUCTION (Based on work done for India/Sri Lanka implementations) 11. Value flows can occur for many different purposes. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling.11.

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.

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. an expense is posted to the GL At the same time. sales order item) SAP ECC 6. when non-stock / consumable items are purchased. Integration Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. when doing a / goods issue to a controlling object or a goods receipt from production). It facilitates coordination. the expense is . PP-production order. The relevant accounts in Financial Accounting are managed in Controlling as cost elements or revenue elements. 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.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. Typically. Consumption of activities. You can determine variances by comparing actual data with plan data. For example. The data flow between the two components takes place on a regular basis. the main task of controlling is planning. most expense postings to the General L edger would result in a cost posting to CO. cost of goods issues. projects or orders. This involves recording both the consumption of production factors and the services provided by an organization. The L ogistics area of R 3 also has numerous integration points with Controlling (e. Income statements such as. business processes. as well as the entire organization. process allocations and direct primary costs can be posted to the cost object (e.. The Financial Accounting application area of R/3 is a primary source of data for Controlling. As well as documenting actual events. posted as a cost to the cost center (or other object in CO) for which the items have been purchased.11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Therefore. This enables you to compare and reconcile the values from Controlling and Financial Accounting. The HR ) system allows you to allocate the cost of work to different Controlling (CO) objects. or depreciation postings from Asset Accounting (FI-AA). contribution margin accounting. all data relevant to cost flows automatically to Controlling from Financial Accounting.g. the system assigns the costs and revenues to different CO account assignment objects. overhead surcharges.2.confidential Page 56 of 86 . such as cost centers. That cost center's costs may later be passed on as overhead to a production cost center or elsewhere in CO. These variance calculations enable you to control business flows. accounts payable postings. In addition. At the same time. monitoring and optimization of all processes in an organization. The Production Planning (PP) and the Sales and Distribution area of Logistics also works very closely with Controlling. are used to control the cost efficiency of individual areas of an organization.g. These expense postings to the G/ L could be manual journal entries. planned personnel costs can be transferred to CO as input to CO planning.

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

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

There can be only one Standard Hierarchy for a company code. Other than this. to measure the internal flow of costs between Cost objects.confidential - Page 59 of 86 . using a drill-down system. N o profit center can be created without an allocation to one level in the standard hierarchy. without any effect in Finance module. These are not represented by GL accounts in FI. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. internal order etc. using a drill-down system. and responsibility areas. some objects are created only in CO termed as Secondary Cost Elements . SAP ECC 6. The cost center is the main R 3 structure used to allocate costs in the exact point of their appearance.3 PROFIT CENTER STANDARD HIERARCHY The Profit Center Standard Hierarchy is similar to that of the Cost Center Standard Hierarchy that collects together all the profit centers created in a Controlling Area. To the highest node the root of the hierarchy. The / criteria used to create them are: divisions. N o cost center can be created without an allocation to one level in the standard hierarchy. there are attached the nodes for each company code. locations. The difference between FI and CO is that in CO.the root of the hierarchy. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders.2 COST ELEMENTS In SAP. used to assure the instant reconciliation of the postings.4.4. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account.4 CO MASTER DATA 11. To the highest node .1 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. The method works according to the keys defined by the user. these are attached the nodes for each company code. activities. The / criteria used to create them are: function.4. used to measure the internal flows of values between different cost objects. All expense related G/ L accounts in FI are made Primary Cost Elements in CO. other cost centers) under a cost element.) Secondary cost elements Secondary cost elements are accounts created in controlling only. Secondary cost elements are used for allocations and settlements. 11. it is mandatory that the posting be made using both a cost element and a cost object (cost center.11. 11. areas of operation. The profit center is the main R 3 structure used to allocate costs in the exact point of their appearance.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

in some instances.11. SAP ECC 6.4 INTERNAL ORDERS An instrument used to monitor costs and.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .4. 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 .confidential - Page 60 of 86 . the revenues of an organization.

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

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

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

confidential - Page 64 of 86 .P&L General Account exists in CAAS Requirement for Secondary Cost Element This account is a Primary Cost Element Whether G/L A/C exists Yes Can-not be made secondary Cost Element Is a new P & L GL Account neccessary No No End Create Secondary Cost Elements Then the new GL Account is first to be created by the competent person in HQ at CAAS level It is then created as a Primary Cost Element at HQ Cost Element Groups Cost Element Group Combination of Cost Elements with Similar Characteristics SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Yes Hewlett-Packard .

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

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

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . at period-end closing. SKF can be used across all the company codes. to allocate costs from a sender to a receiver.confidential - Page 67 of 86 .5. 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 R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. 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.

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

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 69 of 86 . other cost centers. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . allocating general & administrative costs.g. Further analysis is available through CCA reporting. The concept and procedure would remain the same for profit center Assessment and Distribution cycles.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. E. and so on) under an assessment cost element (category 42). The method works according to the keys defined by the user.

Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.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 .confidential - Page 70 of 86 .

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

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

1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. Product costing is carried out at the plant ) level.7. Conversion Cost Overhead Cost The Overhead cost would get calculated as per the parameters given in the overhead-costing sheet maintained in the Valuation Variant. 11.7. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. The following process may be applicable for GGI as there is no information of Product Costing in GGI. 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. The system uses the results of cost estimates to valuate material movements in Logistics. 11. The following process will be applicable for all manufacturing companies like GGPL and CGCL. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period.confidential - Page 73 of 86 .11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . or provision of a service. packing cost and conversion cost. the Standard Cost Estimate is created. SAP ECC 6. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate. Material valuation is carried out at the Plant level.5. All costing data is stored with reference to a plant. It enables you to calculate the minimum price at which a product can be profitably marketed. for material valuation.5.7 PRODUCT COST CONTROLLING No Information available. Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product.5. Conversion cost includes labor cost and overheads. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. Batch Cost: In SAP.2 CREATING. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials. 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. marked and released for both Finished Products and Semi Finished Products.

In GGC. For normal production of glasses the R epetitive Manufacturing process will be followed. on creation of the Standard cost estimate.BOTTLES. a separate Cost Collector is defined for the Production version. it would be marked and released. On Marking the new price would be calculated and get reflected in the Future Planned Price of the material master. So. The Inventory will be valuated at Standard price.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . They hold the control mechanism like the planning and settlement profile. the system internally creates a Production Process. Product Cost Collector: In SAP. In repetitive manufacturing. This would be assigned a unique Costing and Valuation variants. 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.3 REPETITIVE MANUFACTURING PROCESS . Thus. The activity quantities that are to be confirmed are defaulted on the basis of the routing Used for the preliminary cost estimate. This Production P rocess number is updated in the manufacturing orders assigned to the Product Cost Collector. 11.7. the process involves creation of a preliminary cost estimate for the cost collector. At the time of creation.confidential Page 74 of 86 . SAP ECC 6. Repetitive Manufacturing Process is applicable for products that are continuously made in high volumes. at the beginning of the period. Process: T Code KKF6N is used for creating the P roduct 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 Conversion cost would get picked up from the Planned Activity price maintained and Overhead costing sheet.R materials are maintained at Moving Average Price. packing cost and Conversion cost. The system auto creates a settlement rule and the receiver is always a Material. The marking and releasing of standard cost estimate would happen at the beginning of a period as described.The costs for a period can be viewed through the Product cost collector. The production version is linked to the Cost Collector through the Production Process number. with the facility of periodic settlement. The Controlling link is established because the system picks the Planned and Actual Costing Variants from the Order Type. the Standard Cost Estimate would include both Batch cost.5. 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 costs per material or per production version are determined via a product cost collector (product cost per period). Order types are separate for this process.

Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. Issue materials against production order. at what time and how much work is required. Sand and Polythene. Production Orders: A Production order defines which material is to be processed.7. Discrete Manufacturing: WIP gets calculated through a standard transaction.SEMIFINISHED PRODUCTS Discrete manufacturing (i.5.4 DISCRETE MANUFACTURING PROCESS . at which location. 11. 11. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production.5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1. Goods receipt against production order.7.The Costing Sheet is picked from the valuation variant from the Costing variant. Mould Manufacturing.5. WIP would be calculated only for Open Production Orders. The order could be triggered by the T Code MFBF. This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. Process: Creation of Production Order.confidential - Page 75 of 86 . So with all these links the standard costing estimate could be run for the materials. WIP means all debits Minus Credits of a production order. It also defines which resources are to be used and how the order costs are to be settled. Confirm production order. In SAP. Discrete manufacturing will be used for production of Molten Glass. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. SAP ECC 6. With backflush the materials are issued to production and the finished goods posted to warehouse.e. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

R epetitive Manufacturing only P eriodic Settlement is allowed for the R Schedule Header (once a cost collector un has been settled. the books are not going to be balanced. 3. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. If the settlement is not run. Settlement The purpose of settlement is to pass to the General L edger the results from the calculations done in W ork in Process and Variances in both Order R elated production and R epetitive Manufacturing. it cannot be re-processed for the period). Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. Settlement is a financial transaction. This means that whatever costs remaining in the production orders are passed to FI.confidential - Page 76 of 86 . which does not interfere with the normal production process.2.

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

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

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

confidential Page 80 of 86 . Characteristics: Characteristics in Profitability Analysis are the criteria according to which we can create and analyze plan and actual data.11. 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.5.9 PROFITABILITY ANALYSIS Since GGI and PIR UK Company codes are assigned to the CO area of IN and SL Company codes. there would be only one Operating Concern common for the all the company codes. Business mapping to R/3 Costing based Profitability Analysis will be used. profitability analysis is done at L wise. income and expenses are analyzed by profitability segments. 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. However additional characteristics and value fields and other relevant data with reference to GGI and PIR UK are unavailable. L ine ocation wise. 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. SBU wise for Internal wise manually. Example: Value fields are Billing Income. The system allocates the corresponding costs to the revenues for each market segment. The profitability reports are used to display Profitability Analysis data that is stored at suitably aggregated level (Customers. Processes and Sub-Processes) for analysis.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . IT Expenses. Communication. Travel Expenses. Furnace wise. Profitability Segment: In Profitability Analysis. etc.

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

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

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

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

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

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11.6

REPORTS
CONTROLLING

SANDARD REPORTS AVAILABE IN SAP

S.No.

Description Cost Center:

Selection criteria

Output

01

Actual/Plan/Variance (S_ALR_87013611) Cost Center:

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

02

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

03

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

04

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

Fiscal

Quarterly comparison

05

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

Fiscal

Fiscal year comparison

06

Variances (S_ALR_87013627) Cost Center:

Controlling area, period, Cost center(s)

Variance

07

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

List of all actual line items affecting the cost center

08

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

L of all plan line items affecting ist the cost center

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

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

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

Actual values of period 1 to N

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

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

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

AR / AP profit center wise

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

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17

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

Concern,

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

18

Concern,

19

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

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Hence GAPS could not be prepared.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .11. SAP ECC 6.7 GAPS The requirements are NOT in place.confidential - Page 86 of 86 .

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