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

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

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

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

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

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

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

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

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

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

areas of operation.5 INTERNAL ORDERS An instrument used to monitor costs and. SAP ECC 6.0 structure used to allocate costs in the exact point of their appearance. these are attached the nodes for each company code. in some instances. There can be only one Standard Hierarchy for a company code. 5. N o profit center can be created without an allocation to one level in the standard hierarchy.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . using a drill-down system. the revenues of an organization.5. The criteria used to create them are: divisions. 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. To the highest node the root of the hierarchy. 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 .

11 Revenue Elements This cost element category can be used to post revenues.confidential - Page 16 of 86 .6 6. 12 Sales Deductions This cost element category can be used to post deductible items. The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. The cost element category determines which cost elements can be used for which business transactions. Business Mapping to SAP ECC 6. Cost and Revenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. Assessment is a method of internal cost allocation in which costs are apportioned from a sender cost center to receivers (cost centers. internal orders) using an assessment cost element. there is no concept of Cost Element.1 BUSINESS PROCESS MAPPING TO SAP ECC 6. Assessment can be run for both plan and actual values. 41 Overhead .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). profitability segments and cost centers. 31 Order / Project Results analysis Used to store result analysis data.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000.Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. Most of the values are moved automatically from Financial Accounting to Controlling. The costs are apportioned according to an allocation base (tracing factor) defined by the user. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization.0 COST ELEMENT ACCOUNTING Requirements and Expectations At present. SAP ECC 6. SAP distinguishes between: Primary Cost Element Categories Secondary Cost Element Categories The Primary Cost Element Categories are: 01 General Primary Cost Element This cost element category can be debited for all primary postings.

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

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

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

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

0 Activity types describe the activity produced by a cost center and are measured in units of time or quantity. A cost center can be assigned one.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Business mapping to SAP ECC 6. activity dependent cost elements planning will be carried out individually.confidential - Page 21 of 86 . For example. activity planning will be done at the respective production cost centers.3 ACTIVITY TYPE MAINTENANCE Requirements and Expectations There is no concept of activity types in the existing system.6. But the cost will be different because. activity type LAB will be common for both C&P glass and Pharma glass manufacturing. Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department. For example. One particular activity type can be assigned to one or more cost centers. multiple. Activity types classify the activities produced in the cost centers within a controlling area. The variation in cost between one cost center and the other for the same activity type is taken care during the cost planning. Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and . they are linked to work centers in PP. or no activity types.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.

based on the requirement of cost allocation.4 STATISTICAL KEY FIGURE MAINTENANCE Requirements and Expectations There is no concept of Statistical key figures in the existing system. Business mapping to SAP ECC 6.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. SKF can be used across all the company codes.0 Statistical Key Figure The statistical key figures are used in various distribution cycles. to allocate costs from a sender to a receiver. Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6.6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . at period-end closing.confidential - Page 22 of 86 .

Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers. each company codes can allocate their costs using the Standard allocation tools provided by SAP. Business Process Mapping to SAP ECC 6. the original cost element remains the same. enabling the allocation to be recorded exactly. the costs collected on a cost center during the accounting period are allocated to receivers. SAP ECC 6. Only primary costs can be reposted. These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once. During this process.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . amounts. These are indirect allocation methods for which user-defined keys such as percentage rates.confidential - Page 23 of 86 .5 COST ALLOCATION Requirements and Expectations In the existing system costs are booked only in financial records and the concept of apportionment to respective departments is done for reporting purpose.6. The allocation is done using Distribution Cycles by specifying rules for the settlement of primary costs on a cost center Main features of this process are as below: The original cost element is retained in the receiver cost center Information about the sender and the receiver is documented in the Controlling document. Under this procedure. statistical key figures. Cost allocations are performed under controlling area (GGC). Distribution Distribution is a method of internal cost allocation that allocates primary costs. Distribution & Assessment. L items are posted for the sender as well as ine for the receiver. or posted amounts provide the basis for cost/quantity assignment. Telephone costs are collected on a cost center for each period & then can be allocated using the process of reposting or distribution/ assessment cycles at the end of the period according to the number of telephone units or telephone installations in each cost center. Periodic reposting can be reversed and repeated as often as required.0 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting. For example.

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

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

Order Type 300 is TLV Maintenance Internal Order. Special configuration consideration Standard SAP ECC 6. The SAP system enables you to monitor your internal orders throughout their entire life-cycle. Internal Orders are created at controlling area level and at company code level. 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.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .g. in which company codes under if required can create Internal Orders for capturing costs for shot term simple projects and also for statistical reporting.6. Order Type An order type has a large amount of control information important to order management. Internal orders are normally used to plan. monitoring. Internal orders will be used for capturing costs for short term simple projects and also for statistical reporting. and settle the costs of internal jobs and tasks. and allocation of costs. collect. Description of Improvement Internal order would help in planning. Internal order once created will be referred in raising a Purchase order in the account assignment category.Purpose Internal Order. e. All the above order for each Co code is defined as a separate order type.confidential Page 26 of 86 . to the final settlement and archiving Business mapping to SAP ECC 6.0 Description of Functional Deficit No SAP ECC 6.6 INTERNAL ORDERS Requirements and Expectations There is no concept of Internal Orders in the existing system. from initial creation. budgeting and tracking the costs of a particular nature of expense / cost. It is named as per following naming convention: Sitename .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. This is mandatory to capture the costs / expenses on the internal order against a budget. through the planning and posting of all the actual costs. This information includes a range of default values that are used when a new order is created with this order type.

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

at the beginning of the period. Thus. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit.7 P RODUCT COST CONTROLLING Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. R materials are maintained at Moving Average Price. The following process will be applicable for all manufacturing companies like GGPL. Material valuation is carried out at the Plant level.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. the Standard Cost Estimate is created.7.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Labor Cost: The number of Labor hour time would get picked up from R outing master. for material valuation. Conversion Cost Overhead Cost The Overhead cost would get calculated as per the parameters given in the overhead-costing sheet maintained in the Valuation Variant.2 CREATING.7. The system uses the results of cost estimates to valuate material movements in Logistics. So. Batch Cost: In SAP. or provision of a service. Business mapping to SAP ECC 6. All costing data is stored with reference to a plant. R Materials will be valuated at moving aw average price and Semi Finished Materials will be valuated at standard cost estimate. CGCL and GGI US. marked and released for both Finished Products and Semi Finished Products. 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.0 Product costing is a tool for planning costs and establishing prices for materials. 6. It enables you to calculate the minimum price at which a product can be profitably marketed. packing cost and conversion cost. Conversion cost includes labor cost and overheads. 6. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. on creation of the Standard cost SAP ECC 6. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. 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.6. Product costing is carried out at the plant ) level.confidential - Page 28 of 86 .

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

confidential - Page 30 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. 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. 2. Goods receipt against production order. With back flush the materials are issued to production and the finished goods posted to warehouse. In SAP. 6. 6.7. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. Mould Manufacturing.7. It also defines which resources are to be used and how the order costs are to be settled.SEMIFINISHED PRODUCTS Discrete manufacturing (i. SAP ECC 6. Discrete manufacturing will be used for production of Molten Glass. WIP would be calculated only for Open Production Orders.4 DISCRETE MANUFACTURING PROCESS . at which location. 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. at what time and how much work is required.This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. Process: Creation of Production Order. Issue materials against production order. Sand and Polythene. Discrete Manufacturing: WIP gets calculated through a standard transaction. Confirm production order. Production Orders: A Production order defines which material is to be processed.e.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. WIP means all debits Minus Credits of a production order.

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

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

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

Description of improvements Profit Center would help in analyzing the revenue earned by a Profit center against the cost incurred. Special Configuration consideration Standard SAP ECC 6. 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 .0 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.confidential - Page 34 of 86 . you can analyze it immediately according to the period accounting approach using the Standard Reports in the information system.

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

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

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

11 2.00 1.05 1.03 Valuation Finished Goods Semi-finished Goods Raw Materials and others Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes SAP ECC 6.01 2.No.02 1.04 1.04 2.02 3.05 2.09 2.08 2.01 1.06 2.01 3.00 3.10 2.07 2.03 1.06 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 2.7 Sr. Packing Costs.12 Budgeting Sales Budget Computation of RM Costs.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Freight Costs Energy Cost Mould Cost HR Cost Stores.00 2. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 3 . MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.02 2.confidential - Page 38 of 86 .03 2.

00 7.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7.03 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 6.06 6.02 5.0 Business Blueprint for GGPL Controlling Module .05 5.08 6.09 6.10 6.04 5.01 7.4.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.02 7.12 Budgeting Sales Budget Computation of RM Costs.01 5.00 5.04 6.07 6.00 Cost Allocation Hewlett-Packard .03 5. Packing Costs.05 6.00 6.01 6. Freight Costs Energy Cost Mould Cost HR Cost Stores.11 6.02 6.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.

variance % without cost . cost center. variance. Cost center(s) Variance 07 Display actual cost line Cost center. Description Cost Center: Selection criteria Output 01 Actual/Plan/Variance (S_ALR_87013611) Cost Center: Controlling Area. variance. 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. items period (KSB1) Cost Center: Cost center. period. Fiscal Actual costs. variance % with cost . variance % cost element Controlling Area. absolute year. variance. cost center. cost element element group 02 Actual/Plan/Variance (S_ALR_87013612) Cost Center: 03 Actual/Plan/Variance (S_ALR_87013612) Cost Center: 04 Actual / Actual Controlling area. plan costs. absolute year. plan costs.0 Business Blueprint for GGPL Controlling Module Page 40 of 86 . plan costs. Cost Element. period. cost element elements Controlling Area. period. Cost center(s) comparison Quarterly (S_ALR_87013623) Cost Center: Fiscal Quarterly comparison 05 Actual / Actual Controlling area. period. Fiscal Actual costs. year. absolute year. Display actual cost line period items Hewlett-Packard . Fiscal Actual costs.8 REPORTS STANDARD REPORTS AVAILABE IN SAP CONTROLLING S.No. Cost Element. cost center.confidential - L of all actual line items affecting ist the cost center 08 L of all plan line items affecting ist the cost center SAP ECC 6.

actual value. AP) (S_ALR_87013343 / 4) PCA: 16 Plan / Actual / Variance AR / AP profit center wise Controlling Area. variance with cost elements (S_ALR_87012993) Internal Order: 11 L ist of Orders cumulative balance (S_ALR_87012995) Internal Order: Actuals Comparison 12 Yearly / period Quarterly / Controlling area. Posting period. GL Accounts. Customers / Vendors. order(s) Order.confidential - Page 41 of 86 . period Cost element. plan value. Actual values of period 1 to N comparison period. Version. Controlling Area. order(s) Order. plan value. profit variance center. profit center Fiscal year. Accounting document PCA: 15 Open Items (AR. Display variant Company Code. account range SAP ECC 6. period. Profit centers.(KSBP) Internal Order: 09 L ist of variance Orders with Controlling area. period. period. order(s) with Controlling area. Profit Center. Key date. actual current period / year (S_ALR_87013001/2/3) Cost Elements: 13 List of cost elements (S_ALR_87013599) PCA: 14 Actual Line items (KE5Z) Controlling area.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . variance (S_ALR_87012995) Internal Order: 10 L ist of variance Orders with Controlling area. Period range. Fiscal Plan Actual Comparison with year. total plan value. cumulative value till the current period R ecord type. Company Actual line items posted in the Code. current period value. actual value. order(s) Order.

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

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

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

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

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

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

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

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

Group wise & Lot no wise Melting Cost . Product wise allocation of Export Incentives possible through SD/ AR .61 Should get separate Decoration P&L Computation of Export Incentives Depreciation on GGPL Assets at Ansa.manhours & amount Secondary manpower .Item wise & nature wise expenses Secondary manpower . 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.Line wise available & Utilized machine hours & Summarization (Daily & Summary). will be received from FI will be allocated.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Piece Rated payment .Activity Wise quantity & Value Monitoring Draw tons per line & furnace on daily basis.Vehicle wise / employee wise Safety Expenses .Consumption of Energy in Furnace Travel Analysis .COPA z development Considered in report list Covered under PP Module Close 62 Close 63 64 65 Contribution / Pocket Margin for sales & production/ line ISSUE BASED PROFITABILITY RECONCILIATION Machine Utilization Report .Time Rated Payment Department wise . 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. Stoppage Analysis .Class Wise & Reason wise Stoppage (Daily & Summary) Mould Cost Analysis .Item Wise.confidential - Page 50 of 86 .Account Code wise & Expense nature (Domestic/ air / hotel etc.) wise Telephone / Mobile Expenses Telephone number wise & Employee wise Vehicle running & maintenance expenses . Close Close Close 70 Close 71 Close 72 73 Close Close 74 Close 75 Available in PP Close SAP ECC 6.

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

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

At present.. the number of Furnaces and lines are unknown.confidential - Page 53 of 86 . Mays Landing. MO Manufacturing: Glass Flint container manufacturing in Missouri and decoration / coated products operations in New Jersey. 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. Sri Lanka. the number of Furnaces and lines are unknown.) and the internet 2. 2.com/ 3.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . http://www. No organization structure provided Source of Understanding: 1. SAP ECC 6. NJ Manufacturing plants in USA (Assumed) 1. Implementation of the Blueprint is NOT in scope. Recommendations on the Blueprint are based on the Kosamba/Jambusar plant experiences. Very L imited access existing SAP R 3 system which is highly customized with Z* (per assessment and / BPPs. Flat River. The manufacturing facilities are spread out in different parts of the world like India. Business Process Procedures (Tcode explanations. NJ At present.11 11. USA & UK. Corporate office: Marlton.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 access to SPRO transaction. The objective of the document is to provide comprehensive Blueprint in relation to the information available and operations/manufacturing which is told to be similar to Kosamba / Jambusar glass plants.theglassgroup.

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

confidential - Page 55 of 86 .The following graphic illustrates the integration within CO Value Flows: SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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

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

GGI. UK).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. (GGI) company code). . and PIR ..3 CO ORGANIZATION STRUCTURE (The agreed organization structure covers the operations of U.11.confidential - Page 58 of 86 . Controlling Area GGC would be created for Gujarat Glass Consolidated (GGPL CGCL GGUS. Profit Center Hierarchy would enable GGC to track costs at the origin in a more efficient manner. Profit centers are designed based on the Processes. Controlling Area. Cost Center hierarchy. 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. Introduction of Controlling concepts viz.

to measure the internal flow of costs between Cost objects. The method works according to the keys defined by the user. Other than this.4. there are attached the nodes for each company code.2 COST ELEMENTS In SAP. activities.confidential - Page 59 of 86 . The cost center is the main R 3 structure used to allocate costs in the exact point of their appearance.4. There can be only one Standard Hierarchy for a company code. N o cost center can be created without an allocation to one level in the standard hierarchy.4.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . internal order etc. it is mandatory that the posting be made using both a cost element and a cost object (cost center. The profit center is the main R 3 structure used to allocate costs in the exact point of their appearance. The / criteria used to create them are: divisions.11. The difference between FI and CO is that in CO. used to assure the instant reconciliation of the postings. These are not represented by GL accounts in FI.3 PROFIT CENTER STANDARD HIERARCHY The Profit Center Standard Hierarchy is similar to that of the Cost Center Standard Hierarchy that collects together all the profit centers created in a Controlling Area. and responsibility areas.) Secondary cost elements Secondary cost elements are accounts created in controlling only.the root of the hierarchy. 11. N o profit center can be created without an allocation to one level in the standard hierarchy. without any effect in Finance module. SAP ECC 6. Secondary cost elements are used for allocations and settlements. To the highest node . other cost centers) under a cost element. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. these are attached the nodes for each company code. locations. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders.4 CO MASTER DATA 11. areas of operation. The / criteria used to create them are: function. used to measure the internal flows of values between different cost objects. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. using a drill-down system. To the highest node the root of the hierarchy. 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. some objects are created only in CO termed as Secondary Cost Elements . using a drill-down system. All expense related G/ L accounts in FI are made Primary Cost Elements in CO.

in some instances. SAP ECC 6.4. the revenues of an organization.confidential - Page 60 of 86 .11.4 INTERNAL ORDERS An instrument used to monitor costs and. Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

Cost and R evenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. 11 Revenue Elements This cost element category can be used to post revenues.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.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 12 Sales Deductions This cost element category can be used to post deductible items.1 COST ELEMENT ACCOUNTING Requirements and Expectations At present.11.confidential - Page 61 of 86 . SAP ECC 6. Most of the values are moved automatically from Financial Accounting to Controlling. 31 Order / Project Results analysis Used to store result analysis data. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. there is no concept of Cost Element. The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. The cost element category determines which cost elements can be used for which business transactions.5. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. as adequate discussion on business process and information is missing) 11.Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. SAP distinguishes between: Primary Cost Element Categories Secondary Cost Element Categories The Primary Cost Element Categories are: 01 General Primary Cost Element This cost element category can be debited for all primary postings. 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). All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000. 41 Overhead . profitability segments and cost centers.

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

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

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

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

A cost center can be assigned one.11. they are linked to work centers in PP. For example. or no activity types. Requirements and Expectations There is no concept of activity types in the existing system. activity type LAB will be common for both C&P glass and Pharma glass manufacturing.3 ACTIVITY TYPE MAINTENANCE No Information available. But the cost will be different because.5. multiple. One particular activity type can be assigned to one or more cost centers. For example. Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and . Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.confidential - Page 66 of 86 . Activity types classify the activities produced in the cost centers within a controlling area. Business mapping to R/3 Activity types describe the activity produced by a cost center and are measured in units of time or quantity.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . activity dependent cost elements planning will be carried out individually. activity planning will be done at the respective production cost centers. 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.

based on the requirement of cost allocation. to allocate costs from a sender to a receiver.4 STATISTICAL KEY FIGURE MAINTENANCE No Information available. Business mapping to R/3 Statistical Key Figure The statistical key figures are used in various distribution cycles. at period-end closing.5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SKF can be used across all the company codes. Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. Requirements and Expectations There is no concept of Statistical key figures in the existing system.11.confidential - Page 67 of 86 .

Under this procedure.5 COST ALLOCATION No Information available. The allocation is done using Distribution Cycles by specifying rules for the settlement of primary costs on a cost center Main features of this process are as below: The original cost element is retained in the receiver cost center Information about the sender and the receiver is documented in the Controlling document. amounts. statistical key figures. Periodic reposting can be reversed and repeated as often as required.confidential - Page 68 of 86 . or posted amounts provide the basis for cost/quantity assignment. SAP ECC 6. Requirements and Expectations In the existing system costs are booked only in financial records and the concept of apportionment to respective departments is done for reporting purpose. During this process. the original cost element remains the same. These are indirect allocation methods for which user-defined keys such as percentage rates. the costs collected on a cost center during the accounting period are allocated to receivers. Only primary costs can be reposted.5. Business Process Mapping to R/3 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting. Telephone costs are collected on a cost center for each period & then can be allocated using the process of reposting or distribution/ assessment cycles at the end of the period according to the number of telephone units or telephone installations in each cost center. These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once. Distribution Distribution is a method of internal cost allocation that allocates primary costs. Distribution & Assessment. enabling the allocation to be recorded exactly.11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . L items are posted for the sender as well as ine for the receiver. Cost allocations are performed under controlling area (GGC). Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers. For example. each company codes can allocate their costs using the Standard allocation tools provided by SAP.

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

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

It is named as per following naming convention: Site name . Requirements and Expectations There is no concept of Internal Orders in the existing system. E. Internal Orders are created at controlling area level and at company code level. Order Type An order type has a large amount of control information important to order management.6 INTERNAL ORDERS No Information available. from initial creation. Special configuration consideration Standard Sap R/3 SAP ECC 6.11. Any new order is created under an order type that results in transfer of certain parameters to the order. The SAP system enables you to monitor your internal orders throughout their entire life-cycle. Internal orders are normally used to plan. in which company codes under if required can create Internal Orders for capturing costs for shot term simple projects and also for statistical reporting. and allocation of costs. through the planning and posting of all the actual costs. This is mandatory to capture the costs / expenses on the internal order against a budget. Internal order once created will be referred in raising a Purchase order in the account assignment category. collect. and settle the costs of internal jobs and tasks. Description of Improvement Internal order would help in planning.confidential - Page 71 of 86 . Internal orders provide capabilities for planning.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Order Type 300 is TLV Maintenance Internal Order. All the above order for each Co code is defined as a separate order type. budgeting and tracking the costs of a particular nature of expense / cost. to the final settlement and archiving Business mapping to R/3 An Internal Order is an extremely flexible CO tool that can be used for a wide variety of purposes to track costs within a controlling area.5.g.Purpose Internal Order. Internal orders will be used for capturing costs for short term simple projects and also for statistical reporting. monitoring. This information includes a range of default values that are used when a new order is created with this order type.

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

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. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. Batch Cost: In SAP. It enables you to calculate the minimum price at which a product can be profitably marketed. packing cost and conversion cost.7 PRODUCT COST CONTROLLING No Information available. the Standard Cost Estimate is created.5. for material valuation. The following process may be applicable for GGI as there is no information of Product Costing in GGI. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. The following process will be applicable for all manufacturing companies like GGPL and CGCL. Product costing is carried out at the plant ) level.7.confidential - Page 73 of 86 . Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product.2 CREATING. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .7.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. marked and released for both Finished Products and Semi Finished Products.11. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials. The system uses the results of cost estimates to valuate material movements in Logistics. Material valuation is carried out at the Plant level. All costing data is stored with reference to a plant. Conversion cost includes labor cost and overheads. the number of units required for completion of a Finished Product would be picked up from Bills of material [BOM Master] and the value per unit from Material Master. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. 11. 11. 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. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. SAP ECC 6. Labor Cost: The number of Labor hour time would get picked up from R outing master.5.5.

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

manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. So with all these links the standard costing estimate could be run for the materials.5. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP.e. Issue materials against production order. at what time and how much work is required. Production Orders: A Production order defines which material is to be processed.7. Goods receipt against production order. Discrete Manufacturing: WIP gets calculated through a standard transaction. Process: Creation of Production Order. SAP ECC 6. at which location. Confirm production order.The Costing Sheet is picked from the valuation variant from the Costing variant. The order could be triggered by the T Code MFBF.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . In SAP.4 DISCRETE MANUFACTURING PROCESS . This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation.SEMIFINISHED PRODUCTS Discrete manufacturing (i.confidential - Page 75 of 86 . It also defines which resources are to be used and how the order costs are to be settled. 11. Mould Manufacturing. Discrete manufacturing will be used for production of Molten Glass. 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. WIP would be calculated only for Open Production Orders. 11.5.5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1. Sand and Polythene.7. WIP means all debits Minus Credits of a production order.

confidential - Page 76 of 86 . the books are not going to be balanced. it cannot be re-processed for the period).0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . If the settlement is not run. Settlement is a financial transaction. This means that whatever costs remaining in the production orders are passed to FI. 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. which does not interfere with the normal production process.2. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. R epetitive Manufacturing only P eriodic Settlement is allowed for the R Schedule Header (once a cost collector un has been settled. 3. Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.

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

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

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

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

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

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

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