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

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

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

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

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

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

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

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

Cost Center hierarchy.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .).4 CO ORGANIZATION STRUCTURE Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes. Controlling Organizational Structure would be as follows: Organizational Units for GGPL Client: 400 Operating Concern Company Controlling Area Cost Centers Profit Centers GGPL PIR UK CGCL GG US GGI HO KOS JAMB BADDI RURKI RTH NTH HO FTR Business Area / Plant WTN MLD Detailed list of Cost Center hierarchy and Profit Center Hierarchy considering GGC are enclosed in the annexure. Profit Center Hierarchy would enable GGC to track costs at the origin in a more efficient manner.confidential - Page 13 of 86 . Controlling Area GGC would be created for Gujarat Glass Consolidated (GGPL CGCL The finalized . Introduction of Controlling concepts viz. Profit centers are designed based on the Processes. SAP ECC 6.. . Controlling Area.

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

in some instances. the revenues of an organization.0 structure used to allocate costs in the exact point of their appearance. The profit center is the main SAP ECC 6.4 PROFIT CENTER STANDARD HIERARCHY The Profit Center Standard Hierarchy is similar to that of the Cost Center Standard Hierarchy that collects together all the profit centers created in a Controlling Area. 5. SAP ECC 6.5 INTERNAL ORDERS An instrument used to monitor costs and. using a drill-down system. areas of operation. The criteria used to create them are: divisions. these are attached the nodes for each company code. N o profit center can be created without an allocation to one level in the standard hierarchy.5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control .confidential - Page 15 of 86 . To the highest node the root of the hierarchy. There can be only one Standard Hierarchy for a company code.

The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. Most of the values are moved automatically from Financial Accounting to Controlling. The cost element category determines which cost elements can be used for which business transactions. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. Assessment is a method of internal cost allocation in which costs are apportioned from a sender cost center to receivers (cost centers.6 6.confidential - Page 16 of 86 . 31 Order / Project Results analysis Used to store result analysis data. SAP ECC 6.1 BUSINESS PROCESS MAPPING TO SAP ECC 6.0 SAP will use the concept of Cost Elements to track the flow of costs between FI / CO and flow of costs internal to CO (which arises due to reposting / distribution / assessment). 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 . 12 Sales Deductions This cost element category can be used to post deductible items. there is no concept of Cost Element. SAP distinguishes between: Primary Cost Element Categories Secondary Cost Element Categories The Primary Cost Element Categories are: 01 General Primary Cost Element This cost element category can be debited for all primary postings. The costs are apportioned according to an allocation base (tracing factor) defined by the user. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. Assessment can be run for both plan and actual values.0 COST ELEMENT ACCOUNTING Requirements and Expectations At present. Business Mapping to SAP ECC 6. internal orders) using an assessment cost element. profitability segments and cost centers.Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. 41 Overhead . 11 Revenue Elements This cost element category can be used to post revenues.

since GGC has the same operative chart of accounts all the P&L GL accounts will be created as cost elements. Cost Element Groups is created for Cost Center Assessment Cycle. For example. and Cost Component Structures etc. Special configuration consideration No Special configuration required. Settlement Profiles. excluding secondary cost elements for drawing up P statement on profit &L centers) reports can be drawn up. Description of Improvement This will provide capability for detailed recording of data that forms the basis for cost accounting.g. Cost elements are per controlling area. 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 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Cost element groups Cost elements with similar characteristics can be collected in the form of Cost Element Groups. Cost element groups can serve various purposes. Allocation Structures. Depending on the cost elements chosen (for e.confidential - Page 17 of 86 .

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.

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

Cost center budgeting provides a further method of planning in addition to primary cost and secondary cost planning. costs incurred are captured in cost centers.2 COST CENTER MAINTENANCE Requirements and Expectations In the existing system. Special Configuration consideration Standard SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . You can make organizational divisions on the basis of functional. Cost Center Hierarchy Cost Center Hierarchy enclosed in annexure. This tool enables you to carry out a comparison between actual postings and plan budgets.0 A standard hierarchy will be created for the Controlling Area (GGC). Organizational unit within a controlling area that represents a clearly delimited location where costs occur. activity-related. settlement-related.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. This standard hierarchy has cost center groups attached to it. Business mapping to SAP ECC 6. Cost Center Planning and Budgeting Cost center planning involves entering plan figures for costs.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. The actual cost centers are attached to this cost center group. You can then determine the variances from these figures when you come to compare these plan values with the costs actually incurred. You can thus determine when the budget is exceeded and carry out timely availability checks. Description of Improvement Efficient monitoring of costs through cost centers.confidential - Page 20 of 86 . Change to cost centers can be made individually or collectively. activities. Cost Centers for individual company codes under GGC will be created and will be assigned to the respective cost center group. prices or statistical key figures for a particular cost center and a particular planning period. and/ or responsibility-related standpoints. spatial.

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

confidential - Page 22 of 86 . at period-end closing.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . to allocate costs from a sender to a receiver.4 STATISTICAL KEY FIGURE MAINTENANCE Requirements and Expectations There is no concept of Statistical key figures in the existing system.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. SKF can be used across all the company codes. Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6.6.0 Statistical Key Figure The statistical key figures are used in various distribution cycles. Business mapping to SAP ECC 6. based on the requirement of cost allocation.

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. Under this procedure. Cost allocations are performed under controlling area (GGC). Only primary costs can be reposted. 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.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. Business Process Mapping to SAP ECC 6.6. Periodic reposting can be reversed and repeated as often as required. For example. Distribution Distribution is a method of internal cost allocation that allocates primary costs.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . During this process. L items are posted for the sender as well as ine for the receiver. These are indirect allocation methods for which user-defined keys such as percentage rates. SAP ECC 6.0 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting. Distribution & Assessment. statistical key figures. each company codes can allocate their costs using the Standard allocation tools provided by SAP. the original cost element remains the same. the costs collected on a cost center during the accounting period are allocated to receivers. enabling the allocation to be recorded exactly. Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers. amounts.confidential - Page 23 of 86 . or posted amounts provide the basis for cost/quantity assignment. These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once.

Pictorial depiction of Distribution: Assessment Assessment is a method of internal cost allocation by which the costs of a sender cost center is allocated (transferred) to receiver CO objects (orders. other cost centers. Further analysis is available through CCA reporting. allocating general & administrative costs. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . It is used when it is unimportant or not possible for the user to know the break down of costs that a cost center will receive in an allocation. and so on) under an assessment cost element (category 42). E.g.confidential - Page 24 of 86 . The concept and procedure would remain the same for profit center Assessment and Distribution cycles. The method works according to the keys defined by the user.

Pictorial depiction of 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 . Special Configuration consideration Standard SAP ECC 6.0 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.

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

confidential - Page 27 of 86 .Approaches to covering Functional Deficit Not Applicable SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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

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

Discrete Manufacturing: WIP gets calculated through a standard transaction. With back flush the materials are issued to production and the finished goods posted to warehouse.e. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. Confirm production order.7.SEMIFINISHED PRODUCTS Discrete manufacturing (i.4 DISCRETE MANUFACTURING PROCESS .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Production Orders: A Production order defines which material is to be processed. So with all these links the standard costing estimate could be run for the materials. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. Mould Manufacturing.This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. at which location. SAP ECC 6. WIP means all debits Minus Credits of a production order. In SAP. 6.5 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. Process: Creation of Production Order. It also defines which resources are to be used and how the order costs are to be settled. 2. Issue materials against production order. Goods receipt against production order.7. at what time and how much work is required.confidential - Page 30 of 86 . WIP would be calculated only for Open Production Orders. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. 6. Discrete manufacturing will be used for production of Molten Glass. Sand and Polythene.

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

Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. Business mapping to SAP ECC 6. The cost centers are linked to profit centers. This ensures that the data in Profit Center Accounting is complete. just like independent companies. profit centers are proposed on the basis of Process. A dummy profit center GGC Dummy has been created. Transfer Pricing Concept Profit centers are responsible for their own costs and revenues and are treated as independent units within the legally independent company. This is used by the system when there is no profit center assignment even though the field is made mandatory. The hierarchy is displayed in the annexure. 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. These areas are responsible for their costs and revenues.8 P ROFIT CENTER ACCOUNTING Requirements and Expectations To draw P&L and BS at the level of SBU s (Profit Centers). You can use a transfer price to valuate goods movements between profit centers. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. independent areas within an organization. Profit Center Accounting evaluates the profit or loss of individual.6. internal order. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization. PCA integrates with CO through its controlling area / company code relationships. For GGC. This means that it takes place on a statistical basis at the same time as true accounting.confidential - Page 32 of 86 . Profit Center Accounting is a statistical accounting component in the SAP system.0 An organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. and so on) is not assigned to a profit center. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . They are judged by their profit or loss.

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

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

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

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

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

02 2.10 2.00 3.00 2.01 1.03 1. Packing Costs. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 3 .02 3.7 Sr.07 2.09 2.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 2.03 Valuation Finished Goods Semi-finished Goods Raw Materials and others Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes SAP ECC 6.00 1.05 1.06 2.01 3.04 1.03 2.02 1.08 2.No. Freight Costs Energy Cost Mould Cost HR Cost Stores.04 2.01 2.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.confidential - Page 38 of 86 .05 2.12 Budgeting Sales Budget Computation of RM Costs.11 2.

Packing Costs.03 6.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6.00 7.00 Cost Allocation Hewlett-Packard .01 5. Freight Costs Energy Cost Mould Cost HR Cost Stores.11 6.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.04 5.0 Business Blueprint for GGPL Controlling Module .01 6.4.05 5.02 7.07 6.03 5.12 Budgeting Sales Budget Computation of RM Costs.09 6.05 6.04 6.02 6.06 6.00 6.00 5.08 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 6.01 7.10 6.02 5. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7.

period. items period (KSB1) Cost Center: Cost center. absolute year. year. 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. period. Fiscal Actual costs. Description Cost Center: Selection criteria Output 01 Actual/Plan/Variance (S_ALR_87013611) Cost Center: Controlling Area.0 Business Blueprint for GGPL Controlling Module Page 40 of 86 . Cost Element. Fiscal Actual costs. period.confidential - L of all actual line items affecting ist the cost center 08 L of all plan line items affecting ist the cost center SAP ECC 6. plan costs. cost center. year. cost element elements Controlling Area. plan costs. period. variance. absolute year. variance. Cost center(s) Variance 07 Display actual cost line Cost center. absolute year. Fiscal Actual costs. variance % without cost . variance % with cost .8 REPORTS STANDARD REPORTS AVAILABE IN SAP CONTROLLING S. cost center. Cost Element. Display actual cost line period items Hewlett-Packard . variance % cost element Controlling Area. Cost center(s) comparison Quarterly (S_ALR_87013623) Cost Center: Fiscal Quarterly comparison 05 Actual / Actual Controlling area.No. variance. plan costs. cost center. Cost center(s) comparison Fiscal year (S_ALR_87013624) Cost Center: Fiscal Fiscal year comparison 06 Variances (S_ALR_87013627) Cost Center: Controlling area.

Period range. period. account range SAP ECC 6. GL Accounts. period Cost element. period. plan value. profit center Fiscal year. 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. Display variant Company Code. actual value. profit variance center.confidential - Page 41 of 86 . Company Actual line items posted in the Code. Profit centers. Customers / Vendors. Accounting document PCA: 15 Open Items (AR.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . AP) (S_ALR_87013343 / 4) PCA: 16 Plan / Actual / Variance AR / AP profit center wise Controlling Area. variance (S_ALR_87012995) Internal Order: 10 L ist of variance Orders with Controlling area. Controlling Area. actual current period / year (S_ALR_87013001/2/3) Cost Elements: 13 List of cost elements (S_ALR_87013599) PCA: 14 Actual Line items (KE5Z) Controlling area. Actual values of period 1 to N comparison period. order(s) Order. order(s) Order. plan value. actual value. current period value. Profit Center. Fiscal Plan Actual Comparison with year. order(s) with Controlling area. Version. period. Key date. total plan value. cumulative value till the current period R ecord type. order(s) Order.(KSBP) Internal Order: 09 L ist of variance Orders with Controlling area. Posting period.

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

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

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

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

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

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

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

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

Account Code wise & Expense nature (Domestic/ air / hotel etc. Stoppage Analysis .) wise Telephone / Mobile Expenses Telephone number wise & Employee wise Vehicle running & maintenance expenses . Group wise & Lot no wise Melting Cost .Item Wise.Vehicle wise / employee wise Safety Expenses .Line wise available & Utilized machine hours & Summarization (Daily & Summary).Time Rated Payment Department wise .Piece Rated payment . will be received from FI will be allocated.confidential - Page 50 of 86 .Class Wise & Reason wise Stoppage (Daily & Summary) Mould Cost Analysis .Item wise & nature wise expenses Secondary manpower .manhours & amount Secondary manpower .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .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 .Activity Wise quantity & Value Monitoring Draw tons per line & furnace on daily basis. 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. Close Close Close 70 Close 71 Close 72 73 Close Close 74 Close 75 Available in PP Close SAP ECC 6.61 Should get separate Decoration P&L Computation of Export Incentives Depreciation on GGPL Assets at Ansa.Consumption of Energy in Furnace Travel Analysis . Product wise allocation of Export Incentives possible through SD/ AR . 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.

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

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

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

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

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 .

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

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

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

without any effect in Finance module. To the highest node . areas of operation.2 COST ELEMENTS In SAP.4.11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . using a drill-down system. 11.1 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. The / criteria used to create them are: divisions. N o profit center can be created without an allocation to one level in the standard hierarchy. Other than this.) Secondary cost elements Secondary cost elements are accounts created in controlling only. internal order etc. locations.4 CO MASTER DATA 11. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders. The method works according to the keys defined by the user. 11. used to assure the instant reconciliation of the postings. There can be only one Standard Hierarchy for a company code. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. other cost centers) under a cost element. some objects are created only in CO termed as Secondary Cost Elements . it is mandatory that the posting be made using both a cost element and a cost object (cost center. these are attached the nodes for each company code. N o cost center can be created without an allocation to one level in the standard hierarchy.confidential - Page 59 of 86 . activities.the root of the hierarchy.4. These are not represented by GL accounts in FI. SAP ECC 6. The difference between FI and CO is that in CO.4. to measure the internal flow of costs between Cost objects. there are attached the nodes for each company code. The / criteria used to create them are: function. The cost center is the main R 3 structure used to allocate costs in the exact point of their appearance. To the highest node the root of the hierarchy. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account.3 PROFIT CENTER STANDARD HIERARCHY The Profit Center Standard Hierarchy is similar to that of the Cost Center Standard Hierarchy that collects together all the profit centers created in a Controlling Area. Secondary cost elements are used for allocations and settlements. used to measure the internal flows of values between different cost objects. The profit center is the main R 3 structure used to allocate costs in the exact point of their appearance. using a drill-down system. All expense related G/ L accounts in FI are made Primary Cost Elements in CO. and responsibility areas.

confidential - Page 60 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .4 INTERNAL ORDERS An instrument used to monitor costs and.4. in some instances. SAP ECC 6.11. the revenues of an organization. Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control .

1 COST ELEMENT ACCOUNTING Requirements and Expectations At present.5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 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). The actual expenses incurred in a GL account have to be captured in the respective Cost Centers.Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. there is no concept of Cost Element. Cost and R evenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. 12 Sales Deductions This cost element category can be used to post deductible items. profitability segments and cost centers. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. The cost element category determines which cost elements can be used for which business transactions. as adequate discussion on business process and information is missing) 11. Most of the values are moved automatically from Financial Accounting to Controlling.5 BUSINESS PROCESS MAPPING TO R/3 (Business process mapping of GGI is based on assumptions of business process mapping of India and Sri Lanka operations. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. 41 Overhead .confidential - Page 61 of 86 . SAP distinguishes between: Primary Cost Element Categories Secondary Cost Element Categories The Primary Cost Element Categories are: 01 General Primary Cost Element This cost element category can be debited for all primary postings.11. SAP ECC 6. 31 Order / Project Results analysis Used to store result analysis data. All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000. 11 Revenue Elements This cost element category can be used to post revenues.

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

Process Flow Chart Primary Cost Element Secondary Cost Element SAP ECC 6.confidential - Page 63 of 86 .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.confidential - Page 64 of 86 .0 Business Blueprint for GGPL Controlling Module Yes Hewlett-Packard .

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. and/ or responsibility-related standpoints. This standard hierarchy has cost center groups attached to it. You can then determine the variances from these figures when you come to compare these plan values with the costs actually incurred. Description of Improvement Efficient monitoring of costs through cost centers. Cost center budgeting provides a further method of planning in addition to primary cost and secondary cost planning. Change to cost centers can be made individually or collectively. You can thus determine when the budget is exceeded and carry out timely availability checks. 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 . prices or statistical key figures for a particular cost center and a particular planning period.11. settlement-related. This tool enables you to carry out a comparison between actual postings and plan budgets. No Information on Cost Centers for GGI and UK Company codes.confidential Page 65 of 86 . The actual cost centers are attached to this cost center group. activities. Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.5. Cost Centers for individual company codes under GGC will be created and will be assigned to the respective cost center group. spatial.2 COST CENTER MAINTENANCE Requirements and Expectations In the existing system. Organizational unit within a controlling area that represents a clearly delimited location where costs occur. costs incurred are captured in cost centers. Cost Center Planning and Budgeting Cost center planning involves entering plan figures for costs. Cost Center Hierarchy No Information available. activity-related. You can make organizational divisions on the basis of functional.

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

Requirements and Expectations There is no concept of Statistical key figures in the existing system. based on the requirement of cost allocation.confidential - Page 67 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SKF can be used across all the company codes.5. Business mapping to R/3 Statistical Key Figure The statistical key figures are used in various distribution cycles.11.4 STATISTICAL KEY FIGURE MAINTENANCE No Information available. at period-end closing. 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. to allocate costs from a sender to a receiver.

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

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

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

Internal Orders are created at controlling area level and at company code level. Order Type 300 is TLV Maintenance Internal Order.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .g.5.11. Description of Improvement Internal order would help in planning.6 INTERNAL ORDERS No Information available. Internal orders will be used for capturing costs for short term simple projects and also for statistical reporting.confidential - Page 71 of 86 . All the above order for each Co code is defined as a separate order type. through the planning and posting of all the actual costs. monitoring. collect. Internal order once created will be referred in raising a Purchase order in the account assignment category. Internal orders are normally used to plan. The SAP system enables you to monitor your internal orders throughout their entire life-cycle. Order Type An order type has a large amount of control information important to order management. Internal orders provide capabilities for planning. Any new order is created under an order type that results in transfer of certain parameters to the order. E. This is mandatory to capture the costs / expenses on the internal order against a budget. budgeting and tracking the costs of a particular nature of expense / cost.Purpose Internal Order. Special configuration consideration Standard Sap R/3 SAP ECC 6. 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. It is named as per following naming convention: Site name . in which company codes under if required can create Internal Orders for capturing costs for shot term simple projects and also for statistical reporting. This information includes a range of default values that are used when a new order is created with this order type. and settle the costs of internal jobs and tasks. Requirements and Expectations There is no concept of Internal Orders in the existing system. and allocation of costs. from initial creation.

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

Batch Cost: In SAP. The following process will be applicable for all manufacturing companies like GGPL and CGCL. It enables you to calculate the minimum price at which a product can be profitably marketed.2 CREATING. SAP ECC 6.5. Conversion cost includes labor cost and overheads. The following process may be applicable for GGI as there is no information of Product Costing in GGI. The system uses the results of cost estimates to valuate material movements in Logistics. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module.7. packing cost and conversion cost.11. 11. for material valuation. Labor Cost: The number of Labor hour time would get picked up from R outing master. All costing data is stored with reference to a plant. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. or provision of a service. 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. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate. Material valuation is carried out at the Plant level.5.5. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials. marked and released for both Finished Products and Semi Finished Products.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. 11. Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product.7. the number of units required for completion of a Finished Product would be picked up from Bills of material [BOM Master] and the value per unit from Material Master. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. Product costing is carried out at the plant ) level.confidential - Page 73 of 86 . maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .7 PRODUCT COST CONTROLLING No Information available. the Standard Cost Estimate is created. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period.

On Marking the new price would be calculated and get reflected in the Future Planned Price of the material master. The Inventory will be valuated at Standard price. Order types are separate for this process. On R eleasing the Future planned price would become the Present Price. In repetitive manufacturing.confidential Page 74 of 86 .The costs for a period can be viewed through the Product cost collector. the costs per material or per production version are determined via a product cost collector (product cost per period). 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. 11. This apart. So.R materials are maintained at Moving Average Price. Process: T Code KKF6N is used for creating the P roduct Cost Collector. The Conversion cost would get picked up from the Planned Activity price maintained and Overhead costing sheet. For normal production of glasses the R epetitive Manufacturing process will be followed. it would be marked and released. The activity quantities that are to be confirmed are defaulted on the basis of the routing Used for the preliminary cost estimate. a separate Cost Collector is defined for the Production version. with the facility of periodic settlement. In GGC. Repetitive Manufacturing Process is applicable for products that are continuously made in high volumes. The system auto creates a settlement rule and the receiver is always a Material. the Standard Cost Estimate would include both Batch cost. At the time of creation. The marking and releasing of standard cost estimate would happen at the beginning of a period as described. the system internally creates a Production Process. packing cost and Conversion cost. The production version is linked to the Cost Collector through the Production Process number. The Controlling link is established because the system picks the Planned and Actual Costing Variants from the Order Type. the process involves creation of a preliminary cost estimate for the cost collector. This Production P rocess number is updated in the manufacturing orders assigned to the Product Cost Collector. Product Cost Collector: In SAP. on creation of the Standard cost estimate. at the beginning of the period. SAP ECC 6. Suitable repetitive manufacturing profile is to be updated in the material master record to be able to back flush a material. This would be assigned a unique Costing and Valuation variants. 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.BOTTLES.7.5. Thus. They hold the control mechanism like the planning and settlement profile.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .3 REPETITIVE MANUFACTURING PROCESS .

WIP means all debits Minus Credits of a production order. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .e.7.7. WIP would be calculated only for Open Production Orders. 11. Mould Manufacturing. It also defines which resources are to be used and how the order costs are to be settled. Issue materials against production order.5.confidential - Page 75 of 86 .The Costing Sheet is picked from the valuation variant from the Costing variant.4 DISCRETE MANUFACTURING PROCESS . Confirm production order. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. Sand and Polythene. Production Orders: A Production order defines which material is to be processed. at which location. SAP ECC 6.5. In SAP.SEMIFINISHED PRODUCTS Discrete manufacturing (i. This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. Process: Creation of Production Order. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. at what time and how much work is required.5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1. With backflush the materials are issued to production and the finished goods posted to warehouse. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. The order could be triggered by the T Code MFBF. Goods receipt against production order. 11. So with all these links the standard costing estimate could be run for the materials. Discrete manufacturing will be used for production of Molten Glass. Discrete Manufacturing: WIP gets calculated through a standard transaction.

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

You can use a transfer price to valuate goods movements between profit centers.8 PROFIT CENTER ACCOUNTING [N o information on SBU s in GGI and PIR UK] Requirements and Expectations To draw P&L and BS at the level of SBU s (Profit Centers). Transfer Pricing Concept Profit centers are responsible for their own costs and revenues and are treated as independent units within the legally independent company. PCA integrates with CO through its controlling area / company code relationships. This is used by the system when there is no profit center assignment even though the field is made mandatory.11.confidential - Page 77 of 86 . internal order. These areas are responsible for their costs and revenues. profit centers are proposed on the basis of Process. 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. The cost centers are linked to profit centers. They are judged by their profit or loss. Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. The hierarchy is displayed in the annexure. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. just like independent companies. Dummy Profit Center: The dummy profit center is updated in data transfers whenever the object to which the data was originally posted (cost center. Profit Centre Hierarchy No information available. This means that it takes place on a statistical basis at the same time as true accounting. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization.5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Profit Center Accounting is a statistical accounting component in the SAP system. For GGC. Profit Center Accounting evaluates the profit or loss of individual. This ensures that the data in Profit Center Accounting is complete. independent areas within an organization. and so on) is not assigned to a profit center. SAP ECC 6. A dummy profit center GGC Dummy has been created.

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

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

profitability analysis is done at L wise. Profitability Segments are made up of combinations of characteristics and value fields. SBU wise for Internal wise manually. Communication. Requirements and Expectations In the existing system. Business mapping to R/3 Costing based Profitability Analysis will be used. etc. This is done through: Maintaining forms and drilldown reports Maintaining variables Operating Concern: Operating Concern GGC will be created for GGC. Travel Expenses. Processes and Sub-Processes) for analysis. L ine ocation wise. The profitability reports are used to display Profitability Analysis data that is stored at suitably aggregated level (Customers. The system allocates the corresponding costs to the revenues for each market segment. IT Expenses.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . income and expenses are analyzed by profitability segments. Characteristics: Characteristics in Profitability Analysis are the criteria according to which we can create and analyze plan and actual data. SAP ECC 6.9 PROFITABILITY ANALYSIS Since GGI and PIR UK Company codes are assigned to the CO area of IN and SL Company codes.5.11.confidential Page 80 of 86 . Profitability Segment: In Profitability Analysis. Example: Value fields are Billing Income. 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. there would be only one Operating Concern common for the all the company codes. Profitability Analysis analyzes the profit or loss of an organization by individual market segments. However additional characteristics and value fields and other relevant data with reference to GGI and PIR UK are unavailable. Furnace wise.

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

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

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

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

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

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11.6

REPORTS
CONTROLLING

SANDARD REPORTS AVAILABE IN SAP

S.No.

Description Cost Center:

Selection criteria

Output

01

Actual/Plan/Variance (S_ALR_87013611) Cost Center:

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

02

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

03

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

04

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

Fiscal

Quarterly comparison

05

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

Fiscal

Fiscal year comparison

06

Variances (S_ALR_87013627) Cost Center:

Controlling area, period, Cost center(s)

Variance

07

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

List of all actual line items affecting the cost center

08

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

L of all plan line items affecting ist the cost center

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

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

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

Actual values of period 1 to N

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

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

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

AR / AP profit center wise

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

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17

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

Concern,

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

18

Concern,

19

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

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11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 86 of 86 . SAP ECC 6. Hence GAPS could not be prepared.7 GAPS The requirements are NOT in place.

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