BUSIN ESS BL UEPR T FOR SAP ECC 6.

0 IN IMPLEMENTATION AT

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

Document Information
Project Name:

Gujarat glass private limited

SAP ECC 6.0 Implementation

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

Document Version No:

3.0 27/10/2006

Business Blueprint Preparation Review Method Giri Chandran

Document Version Date:

Preparation Date: Review Date:

15/09/2006 25/10/2006

Distribution List
From Date Phone/Fax

Giri Chandran
To Action*

27/10/2006
Due Date Phone/Fax

Mr A Balaji HP Mr. V. Rajshekar

Acceptance/Signoff

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

Ver. 1.0 Ver. 2.0 Ver. 3.0

14.09.06 15.09.06 28.09.06

Giri Chandran

New Document

Draft Version

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

Giri Chandran Giri Chandran

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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Ver. No.

Ver. Date

Revised By

Description

Filename

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

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..................................................confidential - Page 5 of 86 ...............................9Profitability Analysis ..............................................59 11.....................................................71 11.................................................4...........................4Internal Orders ....................................................3Profit Center Standard Hierarchy.................1Cost Element Accounting....................................................86 SAP ECC 6........................................................2.............................5.......77 11.....................68 11...5..................2.............................................................................2 CO Module Introduction .............58 11.................................................61 11..................................83 11.................................................2Cost Elements......5.59 11........................................2.3CO Module Integration with Other Modules .............................................................................................56 11....................................................................................................5.............6Internal Orders ........................5.................................59 11..................60 11................65 11...........................................................................................................................................5................67 11.....................................................54 11...............4...............4.................73 11..................................................6 Reports................54 11.5Cost Allocation..............................................3Activity Type Maintenance............................................2Cost Center Maintenance.............5.....................................................59 11.......................................3 CO Organization Structure............................5........................................................................1Introduction.........................................................0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .5............................................................................................................................................80 11..............................11.....2CO Value Flows in SAP ...................................................66 11........................54 11.............................61 11.....................7 GAPS ....................................................4..................8Profit Center Accounting...................................................................................................................5 Business Process Mapping to R/3 ..4 CO Master Data..................1Cost Center Standard Hierarchy ......7Product Cost Controlling..............................................................4Statistical Key Figure Maintenance ........................

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

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

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

If an organization divides accounting into internal and external viewpoints. costs can be posted to cost centers and internal orders from other SAP ECC 6.2 2. It provides information for managers . There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components. Profit Center accounting.0 modules (external costs). etc. and production variances settled from cost objects. Profitability Analysis can receive cost assessments from cost centers.confidential - Page 9 of 86 . Cost objects (such as production orders.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 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). SAP ECC 6. Cost centers can then allocate costs to other cost centers and orders. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling.2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. 2.those who are inside an organization and are vested with directing and controlling its operations. W ithin the Overhead Cost Controlling area. by virtue of its basic design. Value flows can occur for many different purposes. CO represents the internal accounting perspective. CO covers both the operational and the strategic aspects of management.1 CO MODULE INTRODUCTION INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process. settlements of cost from internal orders. In addition to direct postings from FI. costs from cost centers (as production activities are performed or from overhead allocation).

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

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

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

SAP ECC 6. Profit centers are designed based on the Processes. Introduction of Controlling concepts viz. Profit Center Hierarchy would enable GGC to track costs at the origin in a more efficient manner. Controlling Organizational Structure would be as follows: Organizational Units for GGPL Client: 400 Operating Concern Company Controlling Area Cost Centers Profit Centers GGPL PIR UK CGCL GG US GGI HO KOS JAMB BADDI RURKI RTH NTH HO FTR Business Area / Plant WTN MLD Detailed list of Cost Center hierarchy and Profit Center Hierarchy considering GGC are enclosed in the annexure. Controlling Area. Controlling Area GGC would be created for Gujarat Glass Consolidated (GGPL CGCL The finalized .4 CO ORGANIZATION STRUCTURE Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes..confidential - Page 13 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Cost Center 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. These are not represented by GL accounts in FI. internal order etc. and responsibility areas.confidential Page 14 of 86 . The difference between FI and CO is that in CO. SAP ECC 6. activities. 5. locations. Secondary cost elements are used for allocations and settlements. To the highest node .3 COST ELEMENTS In SAP. using a drill-down system. To the standard hierarchy of cost centers are attached all the cost centers created for a Company code. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. All expense related G/ L accounts in FI are made Primary Cost Elements in CO. used to assure the instant reconciliation of the postings. other cost centers) under a cost element. the highest node is created when maintaining the Structure.the root of the hierarchy.1 CO MASTER DATA CONTROLLING AREA The Controlling Area is the business unit where Cost Accounting is carried out.2 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. 5. some objects are created only in CO termed as Secondary Cost Elements . The cost center is the main SAP ECC 6.0 structure used to allocate costs in the exact point of their appearance. The Company Code allocated to the Controlling area must use the same operating chart of accounts and the same fiscal year variant. Other than this. used to measure the internal flows of values between different cost objects. Each controlling area has a unique standard hierarchy.) Secondary cost elements Secondary cost elements are accounts created in controlling only. The criteria used to create them are: function.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. it is mandatory that the posting be made using both a cost element and a cost object (cost center. The method works according to the keys defined by the user.5 5. No cost center can be created without an allocation to one level in the standard hierarchy. without any effect in Finance module. to measure the internal flow of costs between Cost objects. there are attached the nodes for each company code.

The profit center is the main SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . There can be only one Standard Hierarchy for a company code. SAP ECC 6.confidential - Page 15 of 86 . To the highest node the root of the hierarchy. the revenues of an organization. Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control . in some instances. using a drill-down system. these are attached the nodes for each company code.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. areas of operation.5. The criteria used to create them are: divisions.5 INTERNAL ORDERS An instrument used to monitor costs and. N o profit center can be created without an allocation to one level in the standard hierarchy. 5.0 structure used to allocate costs in the exact point of their appearance.

there is no concept of Cost Element. The cost element category determines which cost elements can be used for which business transactions. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. 11 Revenue Elements This cost element category can be used to post revenues.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .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). Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. Assessment is a method of internal cost allocation in which costs are apportioned from a sender cost center to receivers (cost centers. SAP distinguishes between: Primary Cost Element Categories Secondary Cost Element Categories The Primary Cost Element Categories are: 01 General Primary Cost Element This cost element category can be debited for all primary postings. profitability segments and cost centers. Assessment can be run for both plan and actual values. Most of the values are moved automatically from Financial Accounting to Controlling. The costs are apportioned according to an allocation base (tracing factor) defined by the user. The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. internal orders) using an assessment cost element.6 6.0 COST ELEMENT ACCOUNTING Requirements and Expectations At present. SAP ECC 6. 12 Sales Deductions This cost element category can be used to post deductible items. Cost and Revenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. 31 Order / Project Results analysis Used to store result analysis data. 41 Overhead . Business Mapping to SAP ECC 6.confidential - Page 16 of 86 .Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000.1 BUSINESS PROCESS MAPPING TO SAP ECC 6.

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

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 .

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

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

For example. they are linked to work centers in PP.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. A cost center can be assigned one. Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department. activity type LAB will be common for both C&P glass and Pharma glass manufacturing.0 Activity types describe the activity produced by a cost center and are measured in units of time or quantity. The variation in cost between one cost center and the other for the same activity type is taken care during the cost planning. or no activity types.6.3 ACTIVITY TYPE MAINTENANCE Requirements and Expectations There is no concept of activity types in the existing system. Activity types classify the activities produced in the cost centers within a controlling area. For example. Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and . activity dependent cost elements planning will be carried out individually. One particular activity type can be assigned to one or more cost centers. Business mapping to SAP ECC 6. But the cost will be different because. activity planning will be done at the respective production cost centers.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 21 of 86 . multiple. Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6.

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

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

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

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

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

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

The system uses the results of cost estimates to valuate material movements in Logistics. The following process will be applicable for all manufacturing companies like GGPL.7 P RODUCT COST CONTROLLING Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product.confidential - Page 28 of 86 . Material valuation is carried out at the Plant level. It enables you to calculate the minimum price at which a product can be profitably marketed. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. 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. Business mapping to SAP ECC 6. 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. Batch Cost: In SAP. R materials are maintained at Moving Average Price. on creation of the Standard cost SAP ECC 6.0 Product costing is a tool for planning costs and establishing prices for materials.7. packing cost and conversion cost.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. R Materials will be valuated at moving aw average price and Semi Finished Materials will be valuated at standard cost estimate. 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. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. Product costing is carried out at the plant ) level. Conversion cost includes labor cost and overheads. the Standard Cost Estimate is created. or provision of a service. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. 6. Labor Cost: The number of Labor hour time would get picked up from R outing master.2 CREATING.7.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . for material valuation. CGCL and GGI US. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module.6. marked and released for both Finished Products and Semi Finished Products. All costing data is stored with reference to a plant. at the beginning of the period. So. Thus. 6.

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

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

3.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. This means that whatever costs remaining in the production orders are passed to FI. 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.confidential - Page 31 of 86 . 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. If the settlement is not run. Settlement is a financial transaction. which does not interfere with the normal production process. it cannot be re-processed for the period). Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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

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

you can analyze it immediately according to the period accounting approach using the Standard Reports in the information system.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .0 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.confidential - Page 34 of 86 . Special Configuration consideration Standard SAP ECC 6. Providing valuable profitability reports to the management for decision making purposes. 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.

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

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

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

09 2.12 Budgeting Sales Budget Computation of RM Costs.04 1.confidential - Page 38 of 86 .08 2.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 2. Freight Costs Energy Cost Mould Cost HR Cost Stores.03 1. Packing Costs. MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .02 1.05 1.03 2.06 2.07 2. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 3 .00 1.04 2.02 3.02 2.00 3.7 Sr.01 2.01 3.No.00 2.11 2.10 2.03 Valuation Finished Goods Semi-finished Goods Raw Materials and others Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes SAP ECC 6.05 2.01 1.

03 6.00 7. Packing Costs.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 6.04 5.08 6.03 5.07 6.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.00 5.12 Budgeting Sales Budget Computation of RM Costs.00 6.04 6.01 5.0 Business Blueprint for GGPL Controlling Module .05 6.10 6.02 5.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.09 6.01 7.00 Cost Allocation Hewlett-Packard .4.02 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 7.01 6.05 5.02 7.06 6. Freight Costs Energy Cost Mould Cost HR Cost Stores.11 6.

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

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

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

Payback period for Projects: Monitoring Payback period for projects (Internal Orders).9 IDENTIFIED GAP S Production Budgeting Optimizer: The facility of optimizing the production budget is one of the requirements which are identified as GAP. Line wise and Furnace wise profitability. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Availability check.confidential - Page 43 of 86 . Cost Center Budget .

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

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

Interest handled through manual working. Close 25 26 Capex budgets upload into system Projected P&L and BS from the available budget (remaining months) and from actual till date. type of glass. etc. Possible with New Plan version for remaining months of the year. category. market (export/ domestic). Realization per Ton.24 Budgeting for interest. should be generated Glass . depreciation AA module is in place then depreciation possible. price/ rate variance. Volume variance.(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 Close 32 Reports are available from PP .Decoration type Sales qty & value Break up The port wise & type wise (20 / 40 ft) list of containers dispatched during the month should be available at the end of the month. Close 29 Reports showing analyses of Sales from all the aspects like. region. 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. product mix variance. Rate per 1000 pcs.CO. Currently the budgeted ex-factory value is taken as production value. Close SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . There is master in system where the rate is updated once in a year and for new products as when they arise. 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. ME wise Qty Value. Z development for Production MIS report with Production Value.confidential - Page 46 of 86 . Possible through Internal orders (Project code) & Cost centers.

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

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

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

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

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

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

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. No organization structure provided Source of Understanding: 1.) No access to SPRO transaction. Corporate office: Marlton. Flat River. Recommendations on the Blueprint are based on the Kosamba/Jambusar plant experiences. At present.confidential - Page 53 of 86 . http://www. Mays Landing.com/ 3. NJ Manufacturing plants in USA (Assumed) 1.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . the number of Furnaces and lines are unknown. 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..theglassgroup. The manufacturing facilities are spread out in different parts of the world like India. Very L imited access existing SAP R 3 system which is highly customized with Z* (per assessment and / BPPs. USA & UK. 2.1 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. Business Process Procedures (Tcode explanations. MO Manufacturing: Glass Flint container manufacturing in Missouri and decoration / coated products operations in New Jersey. SAP ECC 6.11 11. Sri Lanka.) and the internet 2. NJ At present. Implementation of the Blueprint is NOT in scope. the number of Furnaces and lines are unknown.

There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components. CO covers both the operational and the strategic aspects of management. and production variances settled from cost objects. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling. SAP ECC 6.2 CO MODULE INTRODUCTION (Based on work done for India/Sri Lanka implementations) 11. receives statistical cost postings from virtually all other CO components.2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. 11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .2. In addition to direct postings from FI.those who are inside an organization and are vested with directing and controlling its operations.1 INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process.2. If an organization divides accounting into internal and external viewpoints. Profitability Analysis can receive cost assessments from cost centers. etc. Cost objects (such as production orders. by virtue of its basic design. costs from cost centers (as production activities are performed or from overhead allocation). settlements of cost from internal orders. It provides information for managers . Profit Center accounting. W ithin the Overhead Cost Controlling area. Cost centers can then allocate costs to other cost / centers and orders. CO represents the internal accounting perspective. costs can be posted to cost centers and internal orders from other R 3 modules (external costs). Value flows can occur for many different purposes.11.) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object).confidential - Page 54 of 86 .

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.

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

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

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

Secondary cost elements are used for allocations and settlements. areas of operation.2 COST ELEMENTS In SAP.11.1 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. and responsibility areas.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . locations. SAP ECC 6. The method works according to the keys defined by the user. 11. 11. to measure the internal flow of costs between Cost objects.4. There can be only one Standard Hierarchy for a company code. The difference between FI and CO is that in CO. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders.4 CO MASTER DATA 11.3 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. there are attached the nodes for each company code. Other than this. To the highest node the root of the hierarchy. The / criteria used to create them are: function. internal order etc. some objects are created only in CO termed as Secondary Cost Elements . The profit center is the main R 3 structure used to allocate costs in the exact point of their appearance. N o cost center can be created without an allocation to one level in the standard hierarchy. N o profit center can be created without an allocation to one level in the standard hierarchy. The cost center is the main R 3 structure used to allocate costs in the exact point of their appearance.4.the root of the hierarchy. These are not represented by GL accounts in FI.4. these are attached the nodes for each company code. activities. using a drill-down system. used to assure the instant reconciliation of the postings. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. To the highest node . 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. it is mandatory that the posting be made using both a cost element and a cost object (cost center.confidential - Page 59 of 86 . using a drill-down system. The / criteria used to create them are: divisions. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account.) Secondary cost elements Secondary cost elements are accounts created in controlling only. other cost centers) under a cost element. without any effect in Finance module.

4 INTERNAL ORDERS An instrument used to monitor costs and.confidential - Page 60 of 86 . 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 . SAP ECC 6. the revenues of an organization.11. in some instances.4.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. 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).confidential - Page 61 of 86 . as adequate discussion on business process and information is missing) 11.5. All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000.5 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. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. Most of the values are moved automatically from Financial Accounting to Controlling.11. 11 Revenue Elements This cost element category can be used to post revenues. Cost and R evenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting.1 COST ELEMENT ACCOUNTING Requirements and Expectations At present. profitability segments and cost centers.Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 12 Sales Deductions This cost element category can be used to post deductible items. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. 31 Order / Project Results analysis Used to store result analysis data. there is no concept of Cost Element. SAP ECC 6. 41 Overhead . The cost element category determines which cost elements can be used for which business transactions. 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.

internal orders) using an assessment cost element.Assessment is a method of internal cost allocation in which costs are apportioned from a sender cost center to receivers (cost centers. Cost element groups Cost elements with similar characteristics can be collected in the form of Cost Element Groups. Cost elements are per controlling area. Depending on the cost elements chosen (for e. Allocation Structures. Assessment can be run for both plan and actual values. Cost Element Groups is created for Cost Center Assessment Cycle.g.confidential - Page 62 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. Special configuration consideration No Special configuration required. Cost element groups can serve various purposes. and Cost Component Structures etc. since GGC has the same operative chart of accounts all the P&L GL accounts will be created as cost elements.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . excluding secondary cost elements for drawing up P statement on profit &L centers) reports can be drawn up. Description of Improvement This will provide capability for detailed recording of data that forms the basis for cost accounting. The costs are apportioned according to an allocation base (tracing factor) defined by the user. Settlement Profiles. For example.

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 .

This standard hierarchy has cost center groups attached to it.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The actual cost centers are attached to this cost center group. activities.5. This tool enables you to carry out a comparison between actual postings and plan budgets. Organizational unit within a controlling area that represents a clearly delimited location where costs occur. You can make organizational divisions on the basis of functional. 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. activity-related. and/ or responsibility-related standpoints. You can then determine the variances from these figures when you come to compare these plan values with the costs actually incurred. Cost Center Hierarchy No Information available.2 COST CENTER MAINTENANCE Requirements and Expectations In the existing system. Business mapping to R/3 A standard hierarchy will be created for the Controlling Area (GGC). These categories are used to lock the posting of revenue posting into cost centers and also these categories can be used for reports and evaluations.11. costs incurred are captured in cost centers. Cost Centers for individual company codes under GGC will be created and will be assigned to the respective cost center group. prices or statistical key figures for a particular cost center and a particular planning period. No Information on Cost Centers for GGI and UK Company codes. You can thus determine when the budget is exceeded and carry out timely availability checks. Description of Improvement Efficient monitoring of costs through cost centers.confidential Page 65 of 86 . Cost center budgeting provides a further method of planning in addition to primary cost and secondary cost planning. Cost Center Planning and Budgeting Cost center planning involves entering plan figures for costs. settlement-related. spatial.

But the cost will be different because. For example.3 ACTIVITY TYPE MAINTENANCE No Information available. activity type LAB will be common for both C&P glass and Pharma glass manufacturing. 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. multiple. Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department. Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and . One particular activity type can be assigned to one or more cost centers. Business mapping to R/3 Activity types describe the activity produced by a cost center and are measured in units of time or quantity.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 66 of 86 . Activity types classify the activities produced in the cost centers within a controlling area. The variation in cost between one cost center and the other for the same activity type is taken care during the cost planning. they are linked to work centers in PP. activity dependent cost elements planning will be carried out individually. or no activity types. activity planning will be done at the respective production cost centers.5. For example. A cost center can be assigned one.11. Requirements and Expectations There is no concept of activity types in the existing system.

to allocate costs from a sender to a receiver. Requirements and Expectations There is no concept of Statistical key figures in the existing system.confidential - Page 67 of 86 . at period-end closing.11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. SKF can be used across all the company codes.4 STATISTICAL KEY FIGURE MAINTENANCE No Information available.5. Business mapping to R/3 Statistical Key Figure The statistical key figures are used in various distribution cycles. based on the requirement of cost allocation.

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

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

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

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

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

Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export.11. The system uses the results of cost estimates to valuate material movements in Logistics.7. 11. Product costing is carried out at the plant ) level. All costing data is stored with reference to a plant. or provision of a service.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .5.5. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. 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.7.confidential - Page 73 of 86 . 11. Labor Cost: The number of Labor hour time would get picked up from R outing master. Material valuation is carried out at the Plant level.2 CREATING. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate. 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. The following process may be applicable for GGI as there is no information of Product Costing in GGI. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials. the Standard Cost Estimate is created. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. packing cost and conversion cost. for material valuation.5. The following process will be applicable for all manufacturing companies like GGPL and CGCL.7 PRODUCT COST CONTROLLING No Information available. Batch Cost: In SAP. SAP ECC 6.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. It enables you to calculate the minimum price at which a product can be profitably marketed. Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. 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.

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

4 DISCRETE MANUFACTURING PROCESS . at which location. at what time and how much work is required. In SAP.5. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. Sand and Polythene. Mould Manufacturing. Issue materials against production order.5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1. SAP ECC 6.5. 11.e. Confirm production order.7. Discrete manufacturing will be used for production of Molten Glass. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation.SEMIFINISHED PRODUCTS Discrete manufacturing (i. Production Orders: A Production order defines which material is to be processed. The order could be triggered by the T Code MFBF. Goods receipt against production order. Discrete Manufacturing: WIP gets calculated through a standard transaction. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . WIP means all debits Minus Credits of a production order. Process: Creation of Production Order. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance.The Costing Sheet is picked from the valuation variant from the Costing variant. 11.7.confidential - Page 75 of 86 . So with all these links the standard costing estimate could be run for the materials. It also defines which resources are to be used and how the order costs are to be settled. With backflush the materials are issued to production and the finished goods posted to warehouse. WIP would be calculated only for Open Production Orders.

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

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

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

Once you have transferred actual data to Profit Center Accounting.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. 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 . Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.

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

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

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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0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Hence GAPS could not be prepared. SAP ECC 6.11.confidential - Page 86 of 86 .7 GAPS The requirements are NOT in place.

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