BUSIN ESS BL UEPR T FOR SAP ECC 6.

0 IN IMPLEMENTATION AT

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

Document Information
Project Name:

Gujarat glass private limited

SAP ECC 6.0 Implementation

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

Document Version No:

3.0 27/10/2006

Business Blueprint Preparation Review Method Giri Chandran

Document Version Date:

Preparation Date: Review Date:

15/09/2006 25/10/2006

Distribution List
From Date Phone/Fax

Giri Chandran
To Action*

27/10/2006
Due Date Phone/Fax

Mr A Balaji HP Mr. V. Rajshekar

Acceptance/Signoff

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

Ver. 1.0 Ver. 2.0 Ver. 3.0

14.09.06 15.09.06 28.09.06

Giri Chandran

New Document

Draft Version

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

Giri Chandran Giri Chandran

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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Ver. No.

Ver. Date

Revised By

Description

Filename

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

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

GGPL has requested to include the same in scope. Sri Lanka. SAP ECC 6. 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 . Kosamba (in India) & R atmalana (in Sri L anka) plants. W e have included Nattandiya plant in blueprint document with express understanding that addition efforts required will be suitably addressed via change management. In all.1 1.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The manufacturing facilities are spread out in different parts of the world like India.0 covering J ambusar. The specific solution in the scope of this document comprises of Implementation of SAP ECC 6. The scope of implementation is in India & Sri Lanka.1 EXECUTIVE SUMMARY BACKGROUND Gujarat Glass (P) L imited [GGP ] is a leading manufacturer of glass based products for pharmaceutical and L cosmetic industries. many of which are electronically controlled state-ofthe-art machines. J ambusar plant is the world's largest pharma amber bottles manufacturing plant at a single location. the 7 furnaces of the company with 27 automatic production lines. USA & UK. Nattandiya plant was not part of the scope originally. The GGPL product profile covers Pharmaceuticals Cosmetics/Toiletries Stationery Liquors Sand Polythene sheets The production capacities at Kosamba Plant are 5 Furnaces and 18 lines The production capacities at Jambusar Plant are 1 Furnaces and 6 lines The production capacities at Ceylon glass Plant are 1 Furnaces and 3 lines The production capacities at Nattandiya Plant are Two sand processing units & one Polythene sheet machine.

the HP consultants will determine the SAP functionality required to run the GGPL business.0 system.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .0 implementation.from this point forward the dual role of both official project scope as well as system acceptance criteria. which are being implemented in Phase 1.0 system. SAP ECC 6. business procedures. The immediate purpose of the analysis is to prepare to move forward rapidly with the implementation of GGPL 's SAP ECC 6.2 ENTERPRISE RESOURCE PLANNING (ERP) PROJECT OBJECTIVES Objectives for the implementation project are: Implement SAP ECC 6. as well as through reviews of business processes.0.0 standard business processes Adhere to business basic's and use SAP as a model for best business practices 1. key users and personnel from Information Systems. At the conclusion of the blueprint. HP is the P Implementation Partner for SAP ECC 6. GGPL will further consolidate its position as market leader in Glass Industry. After successful commissioning of those projects. The information was gathered through interviews conducted at the GGPL plant with the managers. which conducted requirement analysis of GGPL for the SAP ECC 6. The SAP ECC 6.Major expansion plans for capacity increase are already on anvil.confidential Page 7 of 86 . GGPL has decided to implement an integrated ER solution and have selected SAP ECC 6. Blueprint document will serve . The Blueprint and its associated appendices present a summarized perspective of all functional business processes that will be implemented.0 Modules. documentation and relevant reports using Q & A db from Value SAP methodology.3 OVERVIEW OF BLUEPRINT PHASE This document summarizes the findings of the Hewlett-Packard (HP) consulting team. 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 team believes that SAP ECC 6. and SAP ECC 6. requirements that can be met using standard SAP ECC . N o significant configuration choices have been identified that will prevent the future implementation of additional capabilities within the SAP ECC 6. The Blueprint reiterates the SAP ECC 6.0 can accurately model GGPL's organizational requirements. The information gathered and documented in the Blueprint is sufficient for the team to go forward into the R ealization phase. enterprise area.confidential - Page 8 of 86 . SAP ECC 6.is required to move the project into the next phase.0 environment. However. 6. One section of the report summarizes identified gaps.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .by both teams .0 Additional resource commitment The deferral of a feature to a later phase Simply the recognition and acceptance of a limitation. However.0 functional process flows to be implemented at GGPL Generally. Acceptance . The project team should discuss this list with agreement on the approach going forward. certain key requirements are explicitly identified and summarized to highlight their importance to GGP and to document the L approach proposed to meet the requirement.0 organizational structures that have been identified and will serve as the basis for the initial configuration activities. it is critical that both the HP and GGPL team agree on the scope of the project as presented in this document.0 functionality through routine configuration tasks are not explicitly documented.The body of this document describes the organizational structure. Acceptable approaches may require: Additional programming or technical effort R ecognition and acceptance of procedural changes ("W orkarounds") using standard SAP ECC 6.

2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling. In addition to direct postings from FI. CO represents the internal accounting perspective. settlements of cost from internal orders. Profit Center accounting. It provides information for managers . 2.confidential - Page 9 of 86 . costs can be posted to cost centers and internal orders from other SAP ECC 6.) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object). CO covers both the operational and the strategic aspects of management.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . and production variances settled from cost objects. Profitability Analysis can receive cost assessments from cost centers.2 2. W ithin the Overhead Cost Controlling area. Value flows can occur for many different purposes.those who are inside an organization and are vested with directing and controlling its operations. costs from cost centers (as production activities are performed or from overhead allocation). Cost centers can then allocate costs to other cost centers and orders. SAP ECC 6.1 CO MODULE INTRODUCTION INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process. Cost objects (such as production orders. etc. If an organization divides accounting into internal and external viewpoints. by virtue of its basic design. There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components.0 modules (external costs). receives statistical cost postings from virtually all other CO components.

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

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

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

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

2 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. 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.3 COST ELEMENTS In SAP. it is mandatory that the posting be made using both a cost element and a cost object (cost center. SAP ECC 6. using a drill-down system. To the highest node . Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders. The difference between FI and CO is that in CO. All expense related G/ L accounts in FI are made Primary Cost Elements in CO.0 structure used to allocate costs in the exact point of their appearance. No cost center can be created without an allocation to one level in the standard hierarchy. The cost center is the main SAP ECC 6.) Secondary cost elements Secondary cost elements are accounts created in controlling only. Other than this. Each controlling area has a unique standard hierarchy. used to measure the internal flows of values between different cost objects. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. The criteria used to create them are: function. to measure the internal flow of costs between Cost objects. without any effect in Finance module. 5.1 CO MASTER DATA CONTROLLING AREA The Controlling Area is the business unit where Cost Accounting is carried out. locations. internal order etc.5 5. other cost centers) under a cost element. there are attached the nodes for each company code. some objects are created only in CO termed as Secondary Cost Elements .the root of the hierarchy. To the standard hierarchy of cost centers are attached all the cost centers created for a Company code. These are not represented by GL accounts in FI. activities. 5. the highest node is created when maintaining the Structure. The Company Code allocated to the Controlling area must use the same operating chart of accounts and the same fiscal year variant. used to assure the instant reconciliation of the postings. and responsibility areas.confidential Page 14 of 86 . The method works according to the keys defined by the user.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

5 INTERNAL ORDERS An instrument used to monitor costs and. The criteria used to create them are: divisions. To the highest node the root of the hierarchy.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. N o profit center can be created without an allocation to one level in the standard hierarchy. using a drill-down system. the revenues of an organization.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . in some instances. The profit center is the main SAP ECC 6. these are attached the nodes for each company code. There can be only one Standard Hierarchy for a company code. Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control . SAP ECC 6.confidential - Page 15 of 86 . 5.5.0 structure used to allocate costs in the exact point of their appearance. areas of operation.

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

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

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

0 Business Blueprint for GGPL Controlling Module Yes Hewlett-Packard .confidential - Page 19 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.

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

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

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. at period-end closing.6.4 STATISTICAL KEY FIGURE MAINTENANCE Requirements and Expectations There is no concept of Statistical key figures in the existing system. based on the requirement of cost allocation.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SKF can be used across all the company codes.confidential - Page 22 of 86 . Business mapping to SAP ECC 6.0 Statistical Key Figure The statistical key figures are used in various distribution cycles. to allocate costs from a sender to a receiver.

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

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

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

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

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

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

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

SAP ECC 6. It also defines which resources are to be used and how the order costs are to be settled.4 DISCRETE MANUFACTURING PROCESS . Production Orders: A Production order defines which material is to be processed.7.5 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. Confirm production order.7. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. Mould Manufacturing. So with all these links the standard costing estimate could be run for the materials. Discrete manufacturing will be used for production of Molten Glass. Discrete Manufacturing: WIP gets calculated through a standard transaction. Sand and Polythene. 2. 6. Issue materials against production order. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. In SAP. at which location.SEMIFINISHED PRODUCTS Discrete manufacturing (i. With back flush the materials are issued to production and the finished goods posted to warehouse.This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. Process: Creation of Production Order.confidential - Page 30 of 86 .e. WIP means all debits Minus Credits of a production order. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. at what time and how much work is required. WIP would be calculated only for Open Production Orders. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. 6. Goods receipt against production order.

If the settlement is not run.0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.3. Settlement The purpose of settlement is to pass to the General L edger the results from the calculations done in W ork in Process and Variances in both Order R elated production and R epetitive Manufacturing.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6. Settlement is a financial transaction. Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. R epetitive Manufacturing only P eriodic Settlement is allowed for the R Schedule Header (once a cost collector un has been settled. it cannot be re-processed for the period). This means that whatever costs remaining in the production orders are passed to FI. the books are not going to be balanced. which does not interfere with the normal production process.confidential - Page 31 of 86 .

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

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

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

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

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

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

03 1.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .11 2.03 2. Freight Costs Energy Cost Mould Cost HR Cost Stores.04 2.04 1.01 1.05 1.00 2.confidential - Page 38 of 86 .07 2.06 2.08 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 .09 2.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 2. MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.00 1.01 3.12 Budgeting Sales Budget Computation of RM Costs.00 3.02 3.10 2.7 Sr.02 1. Packing Costs.01 2.02 2.03 Valuation Finished Goods Semi-finished Goods Raw Materials and others Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes SAP ECC 6.No.05 2.

02 7.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.00 5.00 6. Freight Costs Energy Cost Mould Cost HR Cost Stores.05 5.10 6.12 Budgeting Sales Budget Computation of RM Costs.0 Business Blueprint for GGPL Controlling Module .01 6.01 7.4.11 6.01 5. Packing Costs.00 Cost Allocation Hewlett-Packard . 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 7.07 6.05 6.06 6.03 5.02 6.02 5.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6.08 6.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 6.00 7.03 6.09 6.04 6.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.04 5.

absolute year. period. variance % cost element Controlling Area.0 Business Blueprint for GGPL Controlling Module Page 40 of 86 . Cost center(s) comparison Quarterly (S_ALR_87013623) Cost Center: Fiscal Quarterly comparison 05 Actual / Actual Controlling area. variance. cost element elements Controlling Area.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. Cost Element. items period (KSB1) Cost Center: Cost center. Fiscal Actual costs. Fiscal Actual costs. Cost Element. variance. Description Cost Center: Selection criteria Output 01 Actual/Plan/Variance (S_ALR_87013611) Cost Center: Controlling Area. cost center. period.8 REPORTS STANDARD REPORTS AVAILABE IN SAP CONTROLLING S. Cost center(s) Variance 07 Display actual cost line Cost center. Fiscal Actual costs. Cost center(s) comparison Fiscal year (S_ALR_87013624) Cost Center: Fiscal Fiscal year comparison 06 Variances (S_ALR_87013627) Cost Center: Controlling area. variance. absolute year. plan costs. period. year. absolute year. cost center. Display actual cost line period items Hewlett-Packard . variance % with cost . variance % without cost . plan costs. period.No. cost element element group 02 Actual/Plan/Variance (S_ALR_87013612) Cost Center: 03 Actual/Plan/Variance (S_ALR_87013612) Cost Center: 04 Actual / Actual Controlling area. cost center. year. plan costs.

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

confidential - Page 42 of 86 . 19 Execute Profitability Operating Concern. Processes Reports (KE30) Center.(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. Controlling Area and Sub-Processes SAP ECC 6. Profit R eports on Customers.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

Availability check. SAP ECC 6.9 IDENTIFIED GAP S Production Budgeting Optimizer: The facility of optimizing the production budget is one of the requirements which are identified as GAP. Cost Center Budget . Line wise and Furnace wise profitability. Payback period for Projects: Monitoring Payback period for projects (Internal Orders).0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 43 of 86 .

Activity planned price determined either by capacity or the activities performed in the prod cctr and price calculated based on that.confidential - Page 44 of 86 . Stock visibility is std SAP functionality Primary & Secondary through BOM. Not possible.will get YTD (April) Wtd Average Price. Realization Realization 10 Close 11 Realization 12 Restriction on certain cost elements to be part of COGM.Variable cost? And Value of remaining life of mould to be part of inventory. Close SAP ECC 6.Valuation at different rate? Stock reserve . Addressed through Price control "V" in Material Master .not last month. No.10 Sr. Mould discussion not yet finalized? Possible through Cost Component Structure Status Close Close Close Close 5 6 Realization Realization 7 Fixed overhead allocation on Normal capacity? Realization 8 9 Resorting inventory . Will be valuated at the month beginning only. 1 2 3 4 ANNEXURE A: SUMMARY OF R EQUIREMENTS Discussion Points on Blue Print Product cost (COGM) Cost Allocation . Material Ledger Activation or change the accounting policy or Manual JV for old stock for difference wherein Product wise FG rate will be at current rate only.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 .What is fixed portion? Cost Of Goods Sold . Packing Material cost consists of Primary. How to capture the cost? How the mould consumption cost absorbed in Product .through Rework Order with working BOM. secondary & repacking cost.Product transferred to other locations (Plants/ CFAs/ Companies). 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. Mould will be included in BOM/ PRT? Consumption will be determined based on the quantities mentioned in Backflush.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Repacking . Through Manual JV only possible.

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

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

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

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

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

Stoppage Analysis .Account Code wise & Expense nature (Domestic/ air / hotel etc.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Piece Rated payment .) wise Telephone / Mobile Expenses Telephone number wise & Employee wise Vehicle running & maintenance expenses . Realization Close Close 66 Covered under PP Module Close 67 68 69 Possible Possible Different GL codes needs to be created for capturing detailed data.manhours & amount Secondary manpower .Vehicle wise / employee wise Safety Expenses . Group wise & Lot no wise Melting Cost .Line wise available & Utilized machine hours & Summarization (Daily & Summary). Product wise allocation of Export Incentives possible through SD/ AR .Consumption of Energy in Furnace Travel Analysis .confidential - Page 50 of 86 .Time Rated Payment Department wise . Close Close Close 70 Close 71 Close 72 73 Close Close 74 Close 75 Available in PP Close SAP ECC 6.Item wise & nature wise expenses Secondary manpower .Activity Wise quantity & Value Monitoring Draw tons per line & furnace on daily basis. will be received from FI will be allocated.Item Wise.61 Should get separate Decoration P&L Computation of Export Incentives Depreciation on GGPL Assets at Ansa.Class Wise & Reason wise Stoppage (Daily & Summary) Mould Cost 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 . 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.

Line.Line wise Profitability Available in PP. Need to incorporate the reports. Line Wise & Furnace Wise Piece Efficiency . Need to incorporate the reports. Line wise / furnace wise profitability is being worked upon. QC & QA separately) through system Job Set up time analysis . Location. Report format given to PP Data is available in QM.Product Wise & Line Wise SQC & QA Failure . Close 77 78 Is taken care of by QM Data is available in PP. Plant MIS. Standard Line wise / furnace wise profitability is being worked upon. Category wise & Consolidated Profitability Invoice wise profitability Customer . SBU.Product wise Profitability Line .Furnace Draw & Pack Tonnage . Plant MIS Available in PP.Category Wise number of job changes Customer Complaint Analysis Nature wise number of complaints Product.76 Pack to Melt .Product Wise & Line Wise ( Daily. MTD & YTD) Reconciliation .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Data is available in PP. Qnty & Value through system Breakage Analysis . Line wise. MTD & YTD) through system (T1) Job Stabilization time Analysis Product wise & Line wise ( Daily.Product wise Profitability Furnace . need to incorporate the reports.Qnty & Value (FGS w/h. Product & batch wise profitability is possible.Product wise . Customer. need to incorporate the reports. Furnace.confidential - Page 51 of 86 . Section Cut Analysis & Production Loss due to section cuts Analysis of loss of production due to change in speed & efficiency Daily Production Report . Available in PP Close Close 79 80 81 82 Close Close Close Close 83 Close 84 Close 85 Report format given to PP Close 86 87 88 Available in PP Is taken care of in SD & QM Line wise / furnace wise profitability is being worked upon. with & w/o down Time Cavity Analysis .Product wise / Line Wise (Daily.Budget & Actual Product Wise . Within an invoice. Close Close Close 89 90 91 92 Close Close Realization Realization SAP ECC 6. Report format given to PP Available in PP. MTD & YTD) through system (T2) Job Change Report .Gob Cuts. Plant MIS & DPR Data is available in QM.

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

USA & UK.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . No organization structure provided Source of Understanding: 1. the number of Furnaces and lines are unknown. Business Process Procedures (Tcode explanations. Implementation of the Blueprint is NOT in scope.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.theglassgroup. the number of Furnaces and lines are unknown. http://www. Corporate office: Marlton. At present. This Blueprint document is prepared based on the very few information that was extracted from different documents provided and the limited access to the existing SAP system. Sri Lanka. The manufacturing facilities are spread out in different parts of the world like India. NJ At present..) and the internet 2. 2.11 11.com/ 3. Flat River.confidential - Page 53 of 86 . MO Manufacturing: Glass Flint container manufacturing in Missouri and decoration / coated products operations in New Jersey. SAP ECC 6. Very L imited access existing SAP R 3 system which is highly customized with Z* (per assessment and / BPPs. 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. Mays Landing. NJ Manufacturing plants in USA (Assumed) 1.) No access to SPRO transaction. Recommendations on the Blueprint are based on the Kosamba/Jambusar plant experiences.

SAP ECC 6. settlements of cost from internal orders. Cost objects (such as production orders.2. CO covers both the operational and the strategic aspects of management.2.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . W ithin the Overhead Cost Controlling area. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling. It provides information for managers . receives statistical cost postings from virtually all other CO components.11. costs from cost centers (as production activities are performed or from overhead allocation).) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object). 11.2 CO MODULE INTRODUCTION (Based on work done for India/Sri Lanka implementations) 11.confidential - Page 54 of 86 . Value flows can occur for many different purposes. If an organization divides accounting into internal and external viewpoints. Profitability Analysis can receive cost assessments from cost centers. There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components.those who are inside an organization and are vested with directing and controlling its operations. Profit Center accounting.2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. etc. CO represents the internal accounting perspective. Cost centers can then allocate costs to other cost / centers and orders. In addition to direct postings from FI.1 INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process. by virtue of its basic design. costs can be posted to cost centers and internal orders from other R 3 modules (external costs). and production variances settled from cost objects.

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

The Production Planning (PP) and the Sales and Distribution area of Logistics also works very closely with Controlling. or depreciation postings from Asset Accounting (FI-AA). Other R 3 modules generate data that has a direct impact on CO. These expense postings to the G/ L could be manual journal entries. accounts payable postings. projects or orders. That cost center's costs may later be passed on as overhead to a production cost center or elsewhere in CO. sales order item) SAP ECC 6. such as cost centers. Therefore. The Human R esources (HR modules can generate several types of cost postings to Controlling. This enables you to compare and reconcile the values from Controlling and Financial Accounting. the system assigns the costs and revenues to different CO account assignment objects.g. most expense postings to the General L edger would result in a cost posting to CO. As well as documenting actual events. You can determine variances by comparing actual data with plan data. business processes. are used to control the cost efficiency of individual areas of an organization. This involves recording both the consumption of production factors and the services provided by an organization. It facilitates coordination. cost of goods issues. The relevant accounts in Financial Accounting are managed in Controlling as cost elements or revenue elements. These variance calculations enable you to control business flows. process allocations and direct primary costs can be posted to the cost object (e. an expense is posted to the GL At the same time. The Financial Accounting application area of R/3 is a primary source of data for Controlling. monitoring and optimization of all processes in an organization. Income statements such as. In addition. The data flow between the two components takes place on a regular basis. the expense is .g.3 CO MODULE INTEGRATION WITH OTHER MODULES (Based on work done for India/Sri Lanka implementations) Controlling provides you with information for management decision-making.confidential Page 56 of 86 . contribution margin accounting. The L ogistics area of R 3 also has numerous integration points with Controlling (e. posted as a cost to the cost center (or other object in CO) for which the items have been purchased.. At the same time. PP-production order. For example. all data relevant to cost flows automatically to Controlling from Financial Accounting.11.2.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . the main task of controlling is planning. planned personnel costs can be transferred to CO as input to CO planning. The HR ) system allows you to allocate the cost of work to different Controlling (CO) objects. 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. when doing a / goods issue to a controlling object or a goods receipt from production). overhead surcharges. Typically. when non-stock / consumable items are purchased. as well as the entire organization. Consumption of activities. Integration Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system.

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

UK). Cost Center hierarchy. Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes.. GGI. and PIR . Controlling Area. Controlling Area GGC would be created for Gujarat Glass Consolidated (GGPL CGCL GGUS.11. . Profit centers are designed based on the Processes. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . (GGI) company code). 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. Profit Center Hierarchy would enable GGC to track costs at the origin in a more efficient manner.S.3 CO ORGANIZATION STRUCTURE (The agreed organization structure covers the operations of U.confidential - Page 58 of 86 .

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

Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control .confidential - Page 60 of 86 .4 INTERNAL ORDERS An instrument used to monitor costs and.11. the revenues of an organization. in some instances.4.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SAP ECC 6.

All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000. Most of the values are moved automatically from Financial Accounting to Controlling. 11 Revenue Elements This cost element category can be used to post revenues. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. 12 Sales Deductions This cost element category can be used to post deductible items.5. Business Mapping to R/3 SAP will use the concept of Cost Elements to track the flow of costs between FI / CO and flow of costs internal to CO (which arises due to reposting / distribution / assessment).Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. there is no concept of Cost Element. as adequate discussion on business process and information is missing) 11. The cost element category determines which cost elements can be used for which business transactions. SAP distinguishes between: Primary Cost Element Categories Secondary Cost Element Categories The Primary Cost Element Categories are: 01 General Primary Cost Element This cost element category can be debited for all primary postings. 41 Overhead .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .5 BUSINESS PROCESS MAPPING TO R/3 (Business process mapping of GGI is based on assumptions of business process mapping of India and Sri Lanka operations. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization.confidential - Page 61 of 86 . 31 Order / Project Results analysis Used to store result analysis data. SAP ECC 6. Cost and R evenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting.11. The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. profitability segments and cost centers.1 COST ELEMENT ACCOUNTING Requirements and Expectations At present.

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

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

0 Business Blueprint for GGPL Controlling Module Yes Hewlett-Packard .P&L General Account exists in CAAS Requirement for Secondary Cost Element This account is a Primary Cost Element Whether G/L A/C exists Yes Can-not be made secondary Cost Element Is a new P & L GL Account neccessary No No End Create Secondary Cost Elements Then the new GL Account is first to be created by the competent person in HQ at CAAS level It is then created as a Primary Cost Element at HQ Cost Element Groups Cost Element Group Combination of Cost Elements with Similar Characteristics SAP ECC 6.confidential - Page 64 of 86 .

activities.2 COST CENTER MAINTENANCE Requirements and Expectations In the existing system. costs incurred are captured in cost centers. Change to cost centers can be made individually or collectively. and/ or responsibility-related standpoints. This standard hierarchy has cost center groups attached to it. No Information on Cost Centers for GGI and UK Company codes. activity-related. Cost Center Planning and Budgeting Cost center planning involves entering plan figures for costs. Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. You can make organizational divisions on the basis of functional. You can thus determine when the budget is exceeded and carry out timely availability checks. spatial.confidential Page 65 of 86 . prices or statistical key figures for a particular cost center and a particular planning period. Organizational unit within a controlling area that represents a clearly delimited location where costs occur. Cost center budgeting provides a further method of planning in addition to primary cost and secondary cost planning. You can then determine the variances from these figures when you come to compare these plan values with the costs actually incurred. This tool enables you to carry out a comparison between actual postings and plan budgets. These categories are used to lock the posting of revenue posting into cost centers and also these categories can be used for reports and evaluations. Cost Center Hierarchy No Information available. settlement-related. The actual cost centers are attached to this cost center group.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .5.11. Cost Centers for individual company codes under GGC will be created and will be assigned to the respective cost center group. Business mapping to R/3 A standard hierarchy will be created for the Controlling Area (GGC). Description of Improvement Efficient monitoring of costs through cost centers.

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

5.confidential - Page 67 of 86 . SKF can be used across all the company codes. Requirements and Expectations There is no concept of Statistical key figures in the existing system. Business mapping to R/3 Statistical Key Figure The statistical key figures are used in various distribution cycles. 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 6.4 STATISTICAL KEY FIGURE MAINTENANCE No Information available.11. at period-end closing.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . to allocate costs from a sender to a receiver. based on the requirement of cost allocation.

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

other cost centers. The method works according to the keys defined by the user.Pictorial depiction of Distribution: Assessment Assessment is a method of internal cost allocation by which the costs of a sender cost center is allocated (transferred) to receiver CO objects (orders. Further analysis is available through CCA reporting. and so on) under an assessment cost element (category 42).g.confidential - Page 69 of 86 . The concept and procedure would remain the same for profit center Assessment and Distribution cycles. E. 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. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

confidential - Page 70 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 R/3 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.

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

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

maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. Labor Cost: The number of Labor hour time would get picked up from R outing master. Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. Batch Cost: In SAP. or provision of a service. Product costing is carried out at the plant ) level. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. All costing data is stored with reference to a plant. 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. Conversion Cost Overhead Cost The Overhead cost would get calculated as per the parameters given in the overhead-costing sheet maintained in the Valuation Variant. The following process will be applicable for all manufacturing companies like GGPL and CGCL.5.7. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit.7 PRODUCT COST CONTROLLING No Information available. The system uses the results of cost estimates to valuate material movements in Logistics. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials. the Standard Cost Estimate is created.7. 11. packing cost and conversion cost. The following process may be applicable for GGI as there is no information of Product Costing in GGI. marked and released for both Finished Products and Semi Finished Products.5. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. for material valuation.5. Conversion cost includes labor cost and overheads. 11. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 73 of 86 . SAP ECC 6. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate. Material valuation is carried out at the Plant level. It enables you to calculate the minimum price at which a product can be profitably marketed.2 CREATING.11.

5.confidential Page 74 of 86 . 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 Standard Cost Estimate would include both Batch cost. On R eleasing the Future planned price would become the Present Price. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . On Marking the new price would be calculated and get reflected in the Future Planned Price of the material master. This apart. This Production P rocess number is updated in the manufacturing orders assigned to the Product Cost Collector. 11. on creation of the Standard cost estimate. a separate Cost Collector is defined for the Production version. For normal production of glasses the R epetitive Manufacturing process will be followed. The marking and releasing of standard cost estimate would happen at the beginning of a period as described.BOTTLES. packing cost and Conversion cost. This would be assigned a unique Costing and Valuation variants. The system auto creates a settlement rule and the receiver is always a Material.7. The material cost would get picked up from the latest weighted average price as on the date of creating the standard cost estimate from the material master. They hold the control mechanism like the planning and settlement profile. the costs per material or per production version are determined via a product cost collector (product cost per period). So. At the time of creation. the process involves creation of a preliminary cost estimate for the cost collector. The activity quantities that are to be confirmed are defaulted on the basis of the routing Used for the preliminary cost estimate. In GGC. the system internally creates a Production Process. The Inventory will be valuated at Standard price. Thus.3 REPETITIVE MANUFACTURING PROCESS . In repetitive manufacturing. it would be marked and released.R materials are maintained at Moving Average Price. Order types are separate for this process.The costs for a period can be viewed through the Product cost collector. Process: T Code KKF6N is used for creating the P roduct Cost Collector. at the beginning of the period. The production version is linked to the Cost Collector through the Production Process number. Product Cost Collector: In SAP. Suitable repetitive manufacturing profile is to be updated in the material master record to be able to back flush a material. with the facility of periodic settlement. The Conversion cost would get picked up from the Planned Activity price maintained and Overhead costing sheet. Repetitive Manufacturing Process is applicable for products that are continuously made in high volumes. The Controlling link is established because the system picks the Planned and Actual Costing Variants from the Order Type.

at which location. This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. WIP means all debits Minus Credits of a production order. Confirm production order. So with all these links the standard costing estimate could be run for the materials. Discrete manufacturing will be used for production of Molten Glass.5.SEMIFINISHED PRODUCTS Discrete manufacturing (i. It also defines which resources are to be used and how the order costs are to be settled. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .The Costing Sheet is picked from the valuation variant from the Costing variant. SAP ECC 6.e.7. 11. With backflush the materials are issued to production and the finished goods posted to warehouse. WIP would be calculated only for Open Production Orders. Sand and Polythene.7. In SAP. 11. Goods receipt against production order. The order could be triggered by the T Code MFBF. Mould Manufacturing.confidential - Page 75 of 86 . Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. Issue materials against production order. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. Discrete Manufacturing: WIP gets calculated through a standard transaction. at what time and how much work is required.5. Production Orders: A Production order defines which material is to be processed.5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1.4 DISCRETE MANUFACTURING PROCESS . Process: Creation of Production Order.

it cannot be re-processed for the period). Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard.2. R epetitive Manufacturing only P eriodic Settlement is allowed for the R Schedule Header (once a cost collector un has been settled.confidential - Page 76 of 86 . If the settlement is not run. which does not interfere with the normal production process. 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. the books are not going to be balanced. This means that whatever costs remaining in the production orders are passed to FI. Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. 3.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

Profit Center Accounting is a statistical accounting component in the SAP system. This ensures that the data in Profit Center Accounting is complete. and so on) is not assigned to a profit center.5. internal order.11. PCA integrates with CO through its controlling area / company code relationships. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization. A dummy profit center GGC Dummy has been created. Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. The hierarchy is displayed in the annexure. just like independent companies. These areas are responsible for their costs and revenues.8 PROFIT CENTER ACCOUNTING [N o information on SBU s in GGI and PIR UK] Requirements and Expectations To draw P&L and BS at the level of SBU s (Profit Centers). independent areas within 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. You can use a transfer price to valuate goods movements between profit centers. For GGC. Profit Centre Hierarchy No information available. 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.confidential - Page 77 of 86 . This means that it takes place on a statistical basis at the same time as true accounting. SAP ECC 6. profit centers are proposed on the basis of Process. Profit Center Accounting evaluates the profit or loss of individual.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The cost centers are linked to 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. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. This is used by the system when there is no profit center assignment even though the field is made mandatory.

The system proposes the profit center of the product in the sender plant as the default profit center. you usually do not need to enter a profit center manually. The profit center assignment is also passed on from the sales order through the logical chain sales order -> delivery note -> goods issue -> billing document. You need to assign cost centers to profit centers so that you can reflect all the primary costs from Financial Accounting and all secondary allocations from Cost Center Accounting in Profit Center Accounting. The work in process determined can also be transferred to the relevant profit center. the goods usage which corresponds to the revenues is also passed on to the profit center of the sales order.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Sales orders are divided into header data and item data. you usually do not have to enter it manually. the system needs to summarize all the profit-related postings in 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. All the costs and internal cost allocations posted to the production order are passed on to the assigned profit center. 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. W hen you create a production order. This means that the when the goods issue is posted.confidential - Page 78 of 86 . Consequently. Consequently. Before you can analyze your profits by profit center. 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. along with the credit posted when the production order is delivered or settled. Each order item is assigned separately to a profit center. Value Flows in PCA Assignments of materials to profit centers provide the default values for assignment of sales orders and manufacturing orders. the system proposes the profit center from the master record (plant segment) of the material being produced. This default supports a productoriented and geographical division of your organization into profit centers. The assignment of materials also forms the basis for the transfer of material stocks to Profit Center Accounting. 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). 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 .confidential - Page 79 of 86 . Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6. 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.

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

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

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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SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .11. Hence GAPS could not be prepared.confidential - Page 86 of 86 .7 GAPS The requirements are NOT in place.

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