BUSIN ESS BL UEPR T FOR SAP ECC 6.

0 IN IMPLEMENTATION AT

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

Document Information
Project Name:

Gujarat glass private limited

SAP ECC 6.0 Implementation

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

Document Version No:

3.0 27/10/2006

Business Blueprint Preparation Review Method Giri Chandran

Document Version Date:

Preparation Date: Review Date:

15/09/2006 25/10/2006

Distribution List
From Date Phone/Fax

Giri Chandran
To Action*

27/10/2006
Due Date Phone/Fax

Mr A Balaji HP Mr. V. Rajshekar

Acceptance/Signoff

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

Ver. 1.0 Ver. 2.0 Ver. 3.0

14.09.06 15.09.06 28.09.06

Giri Chandran

New Document

Draft Version

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

Giri Chandran Giri Chandran

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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Ver. No.

Ver. Date

Revised By

Description

Filename

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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......................4Statistical Key Figure Maintenance .......73 11...........................................5....................................................................................................5.............3 CO Organization Structure...............4....5..................................................................................86 SAP ECC 6..................5............................................................................................................................................................................6 Reports...................3Profit Center Standard Hierarchy........................54 11.....confidential - Page 5 of 86 ...61 11......................................................................................................4Internal Orders .5.....4................................................................................54 11..........2Cost Center Maintenance........2 CO Module Introduction .....................................................59 11..........................................................................3CO Module Integration with Other Modules ...........0 Business Blueprint for GGPL Controlling Module Hewlett-Packard ...............................................................................................................................68 11.........56 11.............................2Cost Elements...................................59 11........1Cost Element Accounting...2.........4 CO Master Data......................7 GAPS ....................................................5Cost Allocation................9Profitability Analysis ...2...........................4.......................58 11........................................................................................................5........5............................................................5...............2CO Value Flows in SAP ..........................................................7Product Cost Controlling.............................................80 11.....................................11.............................................61 11.65 11........................54 11.....77 11...............60 11...1Cost Center Standard Hierarchy .8Profit Center Accounting.......67 11....................................................................71 11....................................................................6Internal Orders ...........................................................3Activity Type Maintenance.....5 Business Process Mapping to R/3 .........................83 11...........................................................................................66 11..........1Introduction........................................59 11.......................................4...................59 11.........................................................5.......................................................................................................................................................2........................................................

GGPL has requested to include the same in scope. J ambusar plant is the world's largest pharma amber bottles manufacturing plant at a single location. SAP ECC 6. W e have included Nattandiya plant in blueprint document with express understanding that addition efforts required will be suitably addressed via change management. many of which are electronically controlled state-ofthe-art machines. Sri Lanka. produces 7 million glass bottles and vials every day throughout the year for quality conscious customers in the healthcare and cosmetics industry.1 EXECUTIVE SUMMARY BACKGROUND Gujarat Glass (P) L imited [GGP ] is a leading manufacturer of glass based products for pharmaceutical and L cosmetic industries.1 1.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . In all. USA & UK.0 covering J ambusar. The scope of implementation is in India & Sri Lanka. 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. The manufacturing facilities are spread out in different parts of the world like India. the 7 furnaces of the company with 27 automatic production lines. The specific solution in the scope of this document comprises of Implementation of SAP ECC 6. Kosamba (in India) & R atmalana (in Sri L anka) plants.confidential - Page 6 of 86 .

business procedures. SAP ECC 6.2 ENTERPRISE RESOURCE PLANNING (ERP) PROJECT OBJECTIVES Objectives for the implementation project are: Implement SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . key users and personnel from Information Systems. 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. as well as through reviews of business processes. After successful commissioning of those projects. At the conclusion of the blueprint. HP is the P Implementation Partner for SAP ECC 6.3 OVERVIEW OF BLUEPRINT PHASE This document summarizes the findings of the Hewlett-Packard (HP) consulting team.from this point forward the dual role of both official project scope as well as system acceptance criteria.0. The Blueprint and its associated appendices present a summarized perspective of all functional business processes that will be implemented. GGPL will further consolidate its position as market leader in Glass Industry.0 Modules.0 system. GGPL has decided to implement an integrated ER solution and have selected SAP ECC 6.0 implementation. which conducted requirement analysis of GGPL for the SAP ECC 6. The information was gathered through interviews conducted at the GGPL plant with the managers.Major expansion plans for capacity increase are already on anvil. which are being implemented in Phase 1. Blueprint document will serve . the HP consultants will determine the SAP functionality required to run the GGPL business.confidential Page 7 of 86 . documentation and relevant reports using Q & A db from Value SAP methodology. The immediate purpose of the analysis is to prepare to move forward rapidly with the implementation of GGPL 's SAP ECC 6.0 standard business processes Adhere to business basic's and use SAP as a model for best business practices 1. The SAP ECC 6.0 system.

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

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

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

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

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

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

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

using a drill-down system.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . the revenues of an organization. The profit center is the main SAP ECC 6. in some instances. Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control .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.0 structure used to allocate costs in the exact point of their appearance. N o profit center can be created without an allocation to one level in the standard hierarchy. these are attached the nodes for each company code.confidential - Page 15 of 86 . SAP ECC 6.5. The criteria used to create them are: divisions. To the highest node the root of the hierarchy. areas of operation. There can be only one Standard Hierarchy for a company code. 5.5 INTERNAL ORDERS An instrument used to monitor costs and.

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

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

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

P&L General Account exists in CAAS Requirement for Secondary Cost Element This account is a Primary Cost Element Whether G/L A/C exists Yes Can-not be made secondary Cost Element Is a new P & L GL Account neccessary No No End Create Secondary Cost Elements Then the new GL Account is first to be created by the competent person in HQ at CAAS level It is then created as a Primary Cost Element at HQ Cost Element Groups Cost Element Group Combination of Cost Elements with Similar Characteristics SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Yes Hewlett-Packard .confidential - Page 19 of 86 .

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

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

Business mapping to SAP ECC 6. to allocate costs from a sender to a receiver.confidential - Page 22 of 86 . 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.6.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. SKF can be used across all the company codes.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . at period-end closing. based on the requirement of cost allocation.0 Statistical Key Figure The statistical key figures are used in various distribution cycles.

0 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting. These are indirect allocation methods for which user-defined keys such as percentage rates. amounts. L items are posted for the sender as well as ine for the receiver. During this process. Telephone costs are collected on a cost center for each period & then can be allocated using the process of reposting or distribution/ assessment cycles at the end of the period according to the number of telephone units or telephone installations in each cost center. Only primary costs can be reposted. Business Process Mapping to SAP ECC 6.5 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. These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once.6. The allocation is done using Distribution Cycles by specifying rules for the settlement of primary costs on a cost center Main features of this process are as below: The original cost element is retained in the receiver cost center Information about the sender and the receiver is documented in the Controlling document. the original cost element remains the same. Distribution & Assessment. each company codes can allocate their costs using the Standard allocation tools provided by SAP. For example. the costs collected on a cost center during the accounting period are allocated to receivers. enabling the allocation to be recorded exactly. SAP ECC 6. Distribution Distribution is a method of internal cost allocation that allocates primary costs. Cost allocations are performed under controlling area (GGC). or posted amounts provide the basis for cost/quantity assignment. Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers. Periodic reposting can be reversed and repeated as often as required. statistical key figures. Under this procedure.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 23 of 86 .

confidential - Page 24 of 86 . It is used when it is unimportant or not possible for the user to know the break down of costs that a cost center will receive in an allocation. The method works according to the keys defined by the user. E.Pictorial depiction of Distribution: Assessment Assessment is a method of internal cost allocation by which the costs of a sender cost center is allocated (transferred) to receiver CO objects (orders. allocating general & administrative costs.g. and so on) under an assessment cost element (category 42). The concept and procedure would remain the same for profit center Assessment and Distribution cycles.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SAP ECC 6. Further analysis is available through CCA reporting. other cost centers.

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

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

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

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

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

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

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

Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. These areas are responsible for their costs and revenues. The cost centers are linked to profit centers. PCA integrates with CO through its controlling area / company code relationships. You can use a transfer price to valuate goods movements between profit centers.6. Profit Center Accounting is a statistical accounting component in the SAP system. 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 To be discussed & finalized with the core team. They are judged by their profit or loss.8 P ROFIT CENTER ACCOUNTING Requirements and Expectations To draw P&L and BS at the level of SBU s (Profit Centers). internal order.confidential - Page 32 of 86 . independent areas within an organization.0 An organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. profit centers are proposed on the basis of Process. 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. This ensures that the data in Profit Center Accounting is complete. and so on) is not assigned to a profit center. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization. just like independent companies.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SAP ECC 6. This means that it takes place on a statistical basis at the same time as true accounting. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. For GGC. Business mapping to SAP ECC 6. A dummy profit center GGC Dummy has been created. The hierarchy is displayed in the annexure. Transfer Pricing Concept Profit centers are responsible for their own costs and revenues and are treated as independent units within the legally independent company.

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

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

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

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

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

04 1.12 Budgeting Sales Budget Computation of RM Costs.03 1.11 2.10 2.00 3.02 2.09 2.01 3.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .02 1.06 2. Packing Costs.08 2.02 3.01 2.00 2.No.7 Sr.01 1.00 1.05 1.04 2.confidential - Page 38 of 86 .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 2.07 2.05 2. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 3 .03 Valuation Finished Goods Semi-finished Goods Raw Materials and others Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes SAP ECC 6.03 2. Freight Costs Energy Cost Mould Cost HR Cost Stores. MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.

04 6.12 Budgeting Sales Budget Computation of RM Costs.03 5.06 6.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 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 6.04 5.00 Cost Allocation Hewlett-Packard .00 6.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 6.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5. Freight Costs Energy Cost Mould Cost HR Cost Stores.05 5.00 5.0 Business Blueprint for GGPL Controlling Module .03 6.08 6.02 6.4. Packing Costs.10 6.02 7.00 7.02 5.05 6.09 6.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.11 6.01 5.07 6.01 7.

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

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

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

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SAP ECC 6. Cost Center Budget . 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.confidential - Page 43 of 86 .Availability check.

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

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

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

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

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

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

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

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

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

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

Value flows can occur for many different purposes. CO represents the internal accounting perspective.2 CO MODULE INTRODUCTION (Based on work done for India/Sri Lanka implementations) 11. costs can be posted to cost centers and internal orders from other R 3 modules (external costs). In addition to direct postings from FI. It provides information for managers . costs from cost centers (as production activities are performed or from overhead allocation). receives statistical cost postings from virtually all other CO components. W ithin the Overhead Cost Controlling area. If an organization divides accounting into internal and external viewpoints. SAP ECC 6. settlements of cost from internal orders.1 INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process.11.confidential - Page 54 of 86 . by virtue of its basic design.2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. CO covers both the operational and the strategic aspects of management. Profitability Analysis can receive cost assessments from cost centers. There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components.2. etc. Profit Center accounting. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling. Cost centers can then allocate costs to other cost / centers and orders. 11. Cost objects (such as production orders.2.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . and production variances settled from cost objects.those who are inside an organization and are vested with directing and controlling its operations.) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object).

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

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

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

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . and PIR . GGI. Cost Center hierarchy.11.S. 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. Controlling Area. (GGI) company code). SAP ECC 6. The finalized Controlling Organizational Structure would be as follows: Organizational Units for GGPL Client: 400 Operating Concern Company Controlling Area Cost Centers Profit Centers GGPL PIR UK CGCL GG US GGI HO KOS JAMB BADDI RURKI RTH NTH HO FTR Business Area / Plant WTN MLD Detailed list of Cost Center hierarchy and P rofit Center Hierarchy considering GGI are not available due to lack of information while framing the BBP. Profit centers are designed based on the Processes..confidential - Page 58 of 86 . UK). . Introduction of Controlling concepts viz. Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes.3 CO ORGANIZATION STRUCTURE (The agreed organization structure covers the operations of U.

activities. it is mandatory that the posting be made using both a cost element and a cost object (cost center. other cost centers) under a cost element. there are attached the nodes for each company code. The / criteria used to create them are: divisions. The method works according to the keys defined by the user. locations.) Secondary cost elements Secondary cost elements are accounts created in controlling only.confidential - Page 59 of 86 . these are attached the nodes for each company code.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .4.3 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. and responsibility areas. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. The profit center is the main R 3 structure used to allocate costs in the exact point of their appearance.4 CO MASTER DATA 11. without any effect in Finance module. N o profit center can be created without an allocation to one level in the standard hierarchy. All expense related G/ L accounts in FI are made Primary Cost Elements in CO. The cost center is the main R 3 structure used to allocate costs in the exact point of their appearance. Secondary cost elements are used for allocations and settlements. 11. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. using a drill-down system.4. to measure the internal flow of costs between Cost objects.1 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. To the highest node . To the highest node the root of the hierarchy. used to assure the instant reconciliation of the postings. internal order etc. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders.2 COST ELEMENTS In SAP.4. some objects are created only in CO termed as Secondary Cost Elements .the root of the hierarchy.11. There can be only one Standard Hierarchy for a company code. The difference between FI and CO is that in CO. 11. areas of operation. SAP ECC 6. The / criteria used to create them are: function. N o cost center can be created without an allocation to one level in the standard hierarchy. used to measure the internal flows of values between different cost objects. Other than this. using a drill-down system. These are not represented by GL accounts in FI.

11.4 INTERNAL ORDERS An instrument used to monitor costs and. SAP ECC 6. the revenues of an organization.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . in some instances. Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control .4.confidential - Page 60 of 86 .

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

they can be used to create reports or to process several cost elements in one business transaction. 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.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . internal orders) using an assessment cost element. Assessment can be run for both plan and actual values. Special configuration consideration No Special configuration required. Cost element groups can serve various purposes. Cost elements are per controlling area.g.confidential - Page 62 of 86 . Settlement Profiles. excluding secondary cost elements for drawing up P statement on profit &L centers) reports can be drawn up. The costs are apportioned according to an allocation base (tracing factor) defined by the user.Assessment is a method of internal cost allocation in which costs are apportioned from a sender cost center to receivers (cost centers. Depending on the cost elements chosen (for e. Cost Element Groups is created for Cost Center Assessment Cycle. since GGC has the same operative chart of accounts all the P&L GL accounts will be created as cost elements. Allocation Structures. Cost element groups Cost elements with similar characteristics can be collected in the form of Cost Element Groups. For example. and Cost Component Structures etc.

confidential - Page 63 of 86 .Process Flow Chart Primary Cost Element Secondary Cost Element SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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

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

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

Requirements and Expectations There is no concept of Statistical key figures in the existing system. SKF can be used across all the company codes.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 6.11. Business mapping to R/3 Statistical Key Figure The statistical key figures are used in various distribution cycles.4 STATISTICAL KEY FIGURE MAINTENANCE No Information available. based on the requirement of cost allocation. to allocate costs from a sender to a receiver.5. at period-end closing.confidential - Page 67 of 86 .

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

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

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

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

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

the Standard Cost Estimate is created. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit.7. Material valuation is carried out at the Plant level. All costing data is stored with reference to a plant. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials.confidential - Page 73 of 86 . 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. packing cost and conversion cost. Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. SAP ECC 6. 11. Conversion cost includes labor cost and overheads. 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. Batch Cost: In SAP. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. or provision of a service. Product costing is carried out at the plant ) level.7. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained.11.5. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. The system uses the results of cost estimates to valuate material movements in Logistics.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .2 CREATING. 11.5. It enables you to calculate the minimum price at which a product can be profitably marketed. for material valuation. marked and released for both Finished Products and Semi Finished Products.7 PRODUCT COST CONTROLLING No Information available.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. The following process will be applicable for all manufacturing companies like GGPL and CGCL. The following process may be applicable for GGI as there is no information of Product Costing in GGI. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period.5. Labor Cost: The number of Labor hour time would get picked up from R outing master.

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

The Costing Sheet is picked from the valuation variant from the Costing variant. 11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .SEMIFINISHED PRODUCTS Discrete manufacturing (i.5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1.confidential - Page 75 of 86 .4 DISCRETE MANUFACTURING PROCESS . Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. Confirm production order. at what time and how much work is required. So with all these links the standard costing estimate could be run for the materials. Mould Manufacturing. Production Orders: A Production order defines which material is to be processed. Discrete Manufacturing: WIP gets calculated through a standard transaction. Sand and Polythene. at which location. It also defines which resources are to be used and how the order costs are to be settled.e. With backflush the materials are issued to production and the finished goods posted to warehouse. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP.7.5. Discrete manufacturing will be used for production of Molten Glass. SAP ECC 6. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. Issue materials against production order. The order could be triggered by the T Code MFBF. Goods receipt against production order.7. WIP means all debits Minus Credits of a production order. 11. Process: Creation of Production Order.5. WIP would be calculated only for Open Production Orders. In SAP.

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . it cannot be re-processed for the period). Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. 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. Settlement is a financial transaction. This means that whatever costs remaining in the production orders are passed to FI. 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. 3.2.confidential - Page 76 of 86 . the books are not going to be balanced. which does not interfere with the normal production process. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. R epetitive Manufacturing only P eriodic Settlement is allowed for the R Schedule Header (once a cost collector un has been settled. If the settlement is not run.

11. Profit Centre Hierarchy No information available. These areas are responsible for their costs and revenues. PCA integrates with CO through its controlling area / company code relationships. Profit Center Accounting evaluates the profit or loss of individual. Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. This is used by the system when there is no profit center assignment even though the field is made mandatory. This means that it takes place on a statistical basis at the same time as true accounting. just like independent companies. You can use a transfer price to valuate goods movements between profit centers.confidential - Page 77 of 86 . This ensures that the data in Profit Center Accounting is complete. internal order.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). A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization. independent areas within an organization. A dummy profit center GGC Dummy has been created. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. Business mapping to R/3 An organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. profit centers are proposed on the basis of Process.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Profit Center Accounting is a statistical accounting component in the SAP system. The cost centers are linked to profit centers. SAP ECC 6.5. and so on) is not assigned to a profit center. They are judged by their profit or loss. The hierarchy is displayed in the annexure. Transfer Pricing Concept Profit centers are responsible for their own costs and revenues and are treated as independent units within the legally independent company. For GGC. Dummy Profit Center: The dummy profit center is updated in data transfers whenever the object to which the data was originally posted (cost center.

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

Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.confidential - Page 79 of 86 .Once you have transferred actual data to Profit Center Accounting. 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 . you can analyze it immediately according to the period accounting approach using the Standard Reports in the information system.

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

a variety of report types can be called and thereby display the data for profitability analysis. You do this when you maintain the master data for the order or project. and then enters it in the billing document. You can display the entire planning process of your company in different ways. or cost of goods manufactured for in-house products) can also be determined. CO-PA Planning Planning in Profitability Analysis allows you to plan sales.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SAP ECC 6. 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). 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. For direct postings in FI. 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.Executing Reports in Profitability Analysis: By defining profitability reports. which you maintain in Customizing. you must create a settlement rule for the settlement object with a profitability segment as a receiver. In addition.confidential - Page 81 of 86 . If the settlement profile of the order allows settling to profitability segments. The system transfers all the characteristics defined in Profitability Analysis and contained in the billing document. along with the customer and product numbers. from the document to the CO-P line item. Standard P rofitability R eports and line item lists for planning and actual data can be executed. Settling Orders/ Projects Before you can settle an order or project to a profitability segment. It A also performs characteristic derivation for those fields for which derivation logic has been defined. depending on your business demands. This is done by: Executing profitability reports. Using SAP list viewer to display line items containing planning or actual data. planned cash discount). 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. these are also recorded in the billing document. 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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confidential - Page 86 of 86 . Hence GAPS could not be prepared. SAP ECC 6.7 GAPS The requirements are NOT in place.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .11.

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