BUSIN ESS BL UEPR T FOR SAP ECC 6.

0 IN IMPLEMENTATION AT

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

Document Information
Project Name:

Gujarat glass private limited

SAP ECC 6.0 Implementation

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

Document Version No:

3.0 27/10/2006

Business Blueprint Preparation Review Method Giri Chandran

Document Version Date:

Preparation Date: Review Date:

15/09/2006 25/10/2006

Distribution List
From Date Phone/Fax

Giri Chandran
To Action*

27/10/2006
Due Date Phone/Fax

Mr A Balaji HP Mr. V. Rajshekar

Acceptance/Signoff

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

Ver. 1.0 Ver. 2.0 Ver. 3.0

14.09.06 15.09.06 28.09.06

Giri Chandran

New Document

Draft Version

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

Giri Chandran Giri Chandran

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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Ver. No.

Ver. Date

Revised By

Description

Filename

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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

SAP ECC 6.0 Business Blueprint for GGPL Controlling Module

Hewlett-Packard - confidential -

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.................................................5......1Cost Element Accounting................................................................54 11.............7 GAPS ................................83 11..........................................................58 11............................................2Cost Elements.....................................................1Cost Center Standard Hierarchy ...............61 11.....................................................................................5...........................5 Business Process Mapping to R/3 .................2 CO Module Introduction .....................................3Profit Center Standard Hierarchy.............................................................................................................................86 SAP ECC 6.......................8Profit Center Accounting..............................5.................................5.......7Product Cost Controlling...................5........4..2.4...................................................................61 11..........68 11.........60 11...........................4.......................66 11...................................................................................................54 11.......4Statistical Key Figure Maintenance ..........59 11...80 11............................................................3Activity Type Maintenance........................59 11.......................confidential - Page 5 of 86 .71 11.............2.......................................................................6 Reports..........................................................1Introduction..........................................5..........2..............73 11.......54 11.....5...2CO Value Flows in SAP ...............6Internal Orders ......................5.......................................................................65 11........4 CO Master Data.....................................4..........56 11...........5................9Profitability Analysis .........................................................................................................................................................77 11...................................................................................................................11..............................................................3 CO Organization Structure..........................................................................................2Cost Center Maintenance.........................................................................................................59 11...........................................................................................3CO Module Integration with Other Modules ........................................................................4Internal Orders ................0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .........................................................67 11.59 11..............................................5Cost Allocation..................

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

3 OVERVIEW OF BLUEPRINT PHASE This document summarizes the findings of the Hewlett-Packard (HP) consulting team. The immediate purpose of the analysis is to prepare to move forward rapidly with the implementation of GGPL 's SAP ECC 6.0 system. SAP ECC 6. the HP consultants will determine the SAP functionality required to run the GGPL business. The information was gathered through interviews conducted at the GGPL plant with the managers. HP is the P Implementation Partner for SAP ECC 6.2 ENTERPRISE RESOURCE PLANNING (ERP) PROJECT OBJECTIVES Objectives for the implementation project are: Implement SAP ECC 6.0 implementation. After successful commissioning of those projects.0 Modules. The Blueprint and its associated appendices present a summarized perspective of all functional business processes that will be implemented. business procedures.confidential Page 7 of 86 . which conducted requirement analysis of GGPL for the SAP ECC 6.0 standard business processes Adhere to business basic's and use SAP as a model for best business practices 1.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . GGPL has decided to implement an integrated ER solution and have selected SAP ECC 6.Major expansion plans for capacity increase are already on anvil. documentation and relevant reports using Q & A db from Value SAP methodology. key users and personnel from Information Systems. are FI/CO SD PP MM QM WM HR Financial Accounting and Controlling Sales and Distribution Production Planning & Control Materials Management Quality Management Warehouse management Human resources 1. At the conclusion of the blueprint. The SAP ECC 6.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. Blueprint document will serve . GGPL will further consolidate its position as market leader in Glass Industry.0.0 system. as well as through reviews of business processes.

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

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

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

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

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

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

some objects are created only in CO termed as Secondary Cost Elements .1 CO MASTER DATA CONTROLLING AREA The Controlling Area is the business unit where Cost Accounting is carried out. The difference between FI and CO is that in CO.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . without any effect in Finance module. the highest node is created when maintaining the Structure. No cost center can be created without an allocation to one level in the standard hierarchy.confidential Page 14 of 86 . The method works according to the keys defined by the user.the root of the hierarchy. internal order etc. Other than this. All expense related G/ L accounts in FI are made Primary Cost Elements in CO. used to assure the instant reconciliation of the postings. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. to measure the internal flow of costs between Cost objects. and responsibility areas. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. used to measure the internal flows of values between different cost objects. other cost centers) under a cost element. The criteria used to create them are: function.) Secondary cost elements Secondary cost elements are accounts created in controlling only. SAP ECC 6. locations. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders.0 structure used to allocate costs in the exact point of their appearance. 5. The Company Code allocated to the Controlling area must use the same operating chart of accounts and the same fiscal year variant. 5. The cost center is the main SAP ECC 6.5 5. using a drill-down system. These are not represented by GL accounts in FI. To the highest node . activities.2 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area.3 COST ELEMENTS In SAP. Each controlling area has a unique standard hierarchy. Secondary cost elements are used for allocations and settlements. To the standard hierarchy of cost centers are attached all the cost centers created for a Company code. there are attached the nodes for each company code. it is mandatory that the posting be made using both a cost element and a cost object (cost center.

confidential - Page 15 of 86 . There can be only one Standard Hierarchy for a company code.0 structure used to allocate costs in the exact point of their appearance. 5. The criteria used to create them are: divisions. N o profit center can be created without an allocation to one level in the standard hierarchy.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. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . the revenues of an organization. in some instances. using a drill-down system. The profit center is the main SAP ECC 6. areas of operation. 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 . these are attached the nodes for each company code.5 INTERNAL ORDERS An instrument used to monitor costs and.5. To the highest node the root of the hierarchy.

Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. internal orders) using an assessment cost element. SAP distinguishes between: Primary Cost Element Categories Secondary Cost Element Categories The Primary Cost Element Categories are: 01 General Primary Cost Element This cost element category can be debited for all primary postings. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. The actual expenses incurred in a GL account have to be captured in the respective Cost Centers.1 BUSINESS PROCESS MAPPING TO SAP ECC 6.6 6. 11 Revenue Elements This cost element category can be used to post revenues. 31 Order / Project Results analysis Used to store result analysis data. Most of the values are moved automatically from Financial Accounting to Controlling.0 COST ELEMENT ACCOUNTING Requirements and Expectations At present.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Assessment is a method of internal cost allocation in which costs are apportioned from a sender cost center to receivers (cost centers. there is no concept of Cost Element.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). 12 Sales Deductions This cost element category can be used to post deductible items. SAP ECC 6. profitability segments and cost centers. Business Mapping to SAP ECC 6. The costs are apportioned according to an allocation base (tracing factor) defined by the user. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. 41 Overhead . Cost and Revenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. Assessment can be run for both plan and actual values.confidential - Page 16 of 86 . The cost element category determines which cost elements can be used for which business transactions. All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000.

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

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

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

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

The variation in cost between one cost center and the other for the same activity type is taken care during the cost planning. A cost center can be assigned one.3 ACTIVITY TYPE MAINTENANCE Requirements and Expectations There is no concept of activity types in the existing system. Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department. activity type LAB will be common for both C&P glass and Pharma glass manufacturing. Activity types classify the activities produced in the cost centers within a controlling area. activity dependent cost elements planning will be carried out individually. One particular activity type can be assigned to one or more cost centers. Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6. activity planning will be done at the respective production cost centers. multiple.6. or no activity types. they are linked to work centers in PP. For example. Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and .0 Activity types describe the activity produced by a cost center and are measured in units of time or quantity. But the cost will be different because. Business mapping to SAP ECC 6. For example.confidential - Page 21 of 86 .0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

6. SKF can be used across all the company codes. Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6.4 STATISTICAL KEY FIGURE MAINTENANCE Requirements and Expectations There is no concept of Statistical key figures in the existing system. to allocate costs from a sender to a receiver.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Business mapping to SAP ECC 6. at period-end closing.confidential - Page 22 of 86 .0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6. based on the requirement of cost allocation.0 Statistical Key Figure The statistical key figures are used in various distribution cycles.

amounts.confidential - Page 23 of 86 . 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. For example. L items are posted for the sender as well as ine for the receiver. SAP ECC 6. Distribution Distribution is a method of internal cost allocation that allocates primary costs. During this process. each company codes can allocate their costs using the Standard allocation tools provided by SAP.6.0 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting. These are indirect allocation methods for which user-defined keys such as percentage rates. the costs collected on a cost center during the accounting period are allocated to receivers. Distribution & Assessment. These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once. the original cost element remains the same. statistical key figures. Business Process Mapping to SAP ECC 6. Only primary costs can be reposted. enabling the allocation to be recorded exactly. The allocation is done using Distribution Cycles by specifying rules for the settlement of primary costs on a cost center Main features of this process are as below: The original cost element is retained in the receiver cost center Information about the sender and the receiver is documented in the Controlling document.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Under this procedure. Cost allocations are performed under controlling area (GGC). Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers. Periodic reposting can be reversed and repeated as often as required.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. or posted amounts provide the basis for cost/quantity assignment.

SAP ECC 6. Further analysis is available through CCA reporting. E. and so on) under an assessment cost element (category 42).Pictorial depiction of Distribution: Assessment Assessment is a method of internal cost allocation by which the costs of a sender cost center is allocated (transferred) to receiver CO objects (orders. The method works according to the keys defined by the user. other cost centers. The concept and procedure would remain the same for profit center Assessment and Distribution cycles. 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.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 24 of 86 .g.

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.

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

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

Product costing is carried out at the plant ) level. It enables you to calculate the minimum price at which a product can be profitably marketed. R Materials will be valuated at moving aw average price and Semi Finished Materials will be valuated at standard cost estimate. packing cost and conversion cost. 6. Labor Cost: The number of Labor hour time would get picked up from R outing master. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. The system uses the results of cost estimates to valuate material movements in Logistics.7 P RODUCT COST CONTROLLING Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. CGCL and GGI US.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . marked and released for both Finished Products and Semi Finished Products. 6. R materials are maintained at Moving Average Price. on creation of the Standard cost SAP ECC 6. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. The following process will be applicable for all manufacturing companies like GGPL. All costing data is stored with reference to a plant. or provision of a service. for material valuation. Material valuation is carried out at the Plant level. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. Batch Cost: In SAP.confidential - Page 28 of 86 .6. Business mapping to SAP ECC 6.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. the Standard Cost Estimate is created. Thus. Conversion cost includes labor cost and overheads. 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.0 Product costing is a tool for planning costs and establishing prices for materials. 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. So.7.7. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period.2 CREATING. 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. at the beginning of the period.

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

Discrete manufacturing will be used for production of Molten Glass. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. WIP would be calculated only for Open Production Orders. Mould Manufacturing. at what time and how much work is required.e. Production Orders: A Production order defines which material is to be processed. Process: Creation of Production Order. So with all these links the standard costing estimate could be run for the materials. Discrete Manufacturing: WIP gets calculated through a standard transaction.confidential - Page 30 of 86 . Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. Goods receipt against production order. SAP ECC 6. With back flush the materials are issued to production and the finished goods posted to warehouse. at which location. Issue materials against production order. Sand and Polythene. Confirm production order. It also defines which resources are to be used and how the order costs are to be settled. 2. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots.7.SEMIFINISHED PRODUCTS Discrete manufacturing (i. 6.7. 6.5 PER IOD EN D CL OSIN G FOR BOTH R EPETITIVE MAN UFACTUR G AN D DISCRETE IN MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1.This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. In SAP.4 DISCRETE MANUFACTURING PROCESS . Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. WIP means all debits Minus Credits of a production order.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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

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

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

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

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

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

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

Freight Costs Energy Cost Mould Cost HR Cost Stores.03 1.10 2.02 3.08 2.05 2.01 3.00 3.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .11 2.04 2. MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.06 2.02 1.01 1.07 2.No.12 Budgeting Sales Budget Computation of RM Costs.04 1.02 2.00 2.09 2.confidential - Page 38 of 86 .05 1.7 Sr.01 2. Packing Costs. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 3 .03 Valuation Finished Goods Semi-finished Goods Raw Materials and others Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes SAP ECC 6.00 1.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 2.03 2.

01 6. Packing Costs.02 6.01 5.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 6.04 6.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6.05 5.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.0 Business Blueprint for GGPL Controlling Module .12 Budgeting Sales Budget Computation of RM Costs.00 5. Freight Costs Energy Cost Mould Cost HR Cost Stores.10 6.02 7.01 7.07 6.02 5.06 6.4.03 5.00 7.11 6. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7.08 6.03 6.05 6.09 6.04 5.00 Cost Allocation Hewlett-Packard .00 6.

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

actual value. Display variant Company Code. plan value. Posting period. profit variance center. Controlling Area.(KSBP) Internal Order: 09 L ist of variance Orders with Controlling area. Version. GL Accounts.confidential - Page 41 of 86 . Customers / Vendors. total plan value. Key date. variance with cost elements (S_ALR_87012993) Internal Order: 11 L ist of Orders cumulative balance (S_ALR_87012995) Internal Order: Actuals Comparison 12 Yearly / period Quarterly / Controlling area. Fiscal Plan Actual Comparison with year. order(s) with Controlling area. period. Profit Center. cumulative value till the current period R ecord type. period. Period range. Actual values of period 1 to N comparison period. Company Actual line items posted in the Code. period Cost element. order(s) Order. Accounting document PCA: 15 Open Items (AR. profit center Fiscal year. 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. variance (S_ALR_87012995) Internal Order: 10 L ist of variance Orders with Controlling area. actual value. account range SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . period. current period value. order(s) Order. order(s) Order. Profit centers. AP) (S_ALR_87013343 / 4) PCA: 16 Plan / Actual / Variance AR / AP profit center wise Controlling Area. plan value.

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

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Line wise and Furnace wise profitability.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 . SAP ECC 6.confidential - Page 43 of 86 .Availability check. Payback period for Projects: Monitoring Payback period for projects (Internal Orders).

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

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

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

Rate & Usage variance. 34 35 Material wise Price Variance Analysis vis-à-vis Budgeted prices. Destination mix should also be analyzed.COPA Repacking will be addressed through rework order. Variance per alternative BOM (Production Version) is possible Standard reports available in SAP showing variance analysis (Production order wise). of containers & ocean freight analysis vis-à-vis budgeted rates should be done. .33 Actual v/s Budget . This amount should flow to books of accounts / MIS. Also Material wise Price variance against Budget.SBU wise Budgeted price will be maintained in material master as Planned price1 for all RM for molten glass. 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. Primary & Secondary packing cost (rate & usage) variances for each product/ category/ line / furnace should be highlighted.Actual vis-à-vis Budget . THC & Documentation. Differentiating packing material alone requires z report Multiple BOM is possible. Separate report showing the consumption of non-standard packing material needs to be generated.confidential - Page 47 of 86 .Variance Packing BOM in case of customer specific is product-customer. Run SCE with costing variant which don t update the price.. CHA & other charges need to be available as soon as the sales register is finalized. And run variance report with different versions. Product wise repacking & resorting costs should be available for accurate product wise costing. Packing material wise consumption quantity & value . Ocean freight. Standard report available. Port wise no.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Duplicate Finished product wise usage of packing material variance addressed in standard.

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

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

Time Rated Payment Department wise . Stoppage Analysis .Activity Wise quantity & Value Monitoring Draw tons per line & furnace on daily basis.Item Wise.confidential - Page 50 of 86 .manhours & amount Secondary manpower . Realization Close Close 66 Covered under PP Module Close 67 68 69 Possible Possible Different GL codes needs to be created for capturing detailed data. Product wise allocation of Export Incentives possible through SD/ AR .Vehicle wise / employee wise Safety Expenses . Close Close Close 70 Close 71 Close 72 73 Close Close 74 Close 75 Available in PP Close SAP ECC 6.Line wise available & Utilized machine hours & Summarization (Daily & Summary).61 Should get separate Decoration P&L Computation of Export Incentives Depreciation on GGPL Assets at Ansa. 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.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Group wise & Lot no wise Melting Cost .Item wise & nature wise expenses Secondary manpower .) wise Telephone / Mobile Expenses Telephone number wise & Employee wise Vehicle running & maintenance expenses .Account Code wise & Expense nature (Domestic/ air / hotel etc.Class Wise & Reason wise Stoppage (Daily & Summary) Mould Cost Analysis .Piece Rated payment .Consumption of Energy in Furnace Travel Analysis .COPA z development Considered in report list Covered under PP Module Close 62 Close 63 64 65 Contribution / Pocket Margin for sales & production/ line ISSUE BASED PROFITABILITY RECONCILIATION Machine Utilization Report . will be received from FI will be allocated.

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

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

NJ At present. Mays Landing.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .) No access to SPRO transaction. 2. http://www. MO Manufacturing: Glass Flint container manufacturing in Missouri and decoration / coated products operations in New Jersey. the number of Furnaces and lines are unknown.com/ 3. Sri Lanka. The manufacturing facilities are spread out in different parts of the world like India..theglassgroup. USA & UK. NJ Manufacturing plants in USA (Assumed) 1. The objective of the document is to provide comprehensive Blueprint in relation to the information available and operations/manufacturing which is told to be similar to Kosamba / Jambusar glass plants.confidential - Page 53 of 86 . 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. the number of Furnaces and lines are unknown. No organization structure provided Source of Understanding: 1. Flat River.) and the internet 2.1 ANNEXURE B: US AND UK BUSINESS PROCESS BACKGROUND Gujarat Glass (P) L imited [GGP ] is a leading manufacturer of glass based products for pharmaceutical and L cosmetic industries. Recommendations on the Blueprint are based on the Kosamba/Jambusar plant experiences. SAP ECC 6. Implementation of the Blueprint is NOT in scope. Business Process Procedures (Tcode explanations.11 11. Very L imited access existing SAP R 3 system which is highly customized with Z* (per assessment and / BPPs.

2. Cost objects (such as production orders. There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling. CO covers both the operational and the strategic aspects of management. costs from cost centers (as production activities are performed or from overhead allocation). costs can be posted to cost centers and internal orders from other R 3 modules (external costs).2. Value flows can occur for many different purposes.2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components. CO represents the internal accounting perspective. If an organization divides accounting into internal and external viewpoints. receives statistical cost postings from virtually all other CO components. SAP ECC 6. settlements of cost from internal orders. etc.) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object).1 INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process. Profit Center accounting. Cost centers can then allocate costs to other cost / centers and orders. It provides information for managers . 11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .2 CO MODULE INTRODUCTION (Based on work done for India/Sri Lanka implementations) 11.11.confidential - Page 54 of 86 . by virtue of its basic design. In addition to direct postings from FI. W ithin the Overhead Cost Controlling area. Profitability Analysis can receive cost assessments from cost centers.those who are inside an organization and are vested with directing and controlling its operations. 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.

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

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

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

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

11.confidential - Page 60 of 86 . Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control .4.4 INTERNAL ORDERS An instrument used to monitor costs and. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . in some instances. the revenues of an organization.

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

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

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

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

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

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

5.confidential - Page 67 of 86 . 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. based on the requirement of cost allocation.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Business mapping to R/3 Statistical Key Figure The statistical key figures are used in various distribution cycles. SKF can be used across all the company codes.4 STATISTICAL KEY FIGURE MAINTENANCE No Information available. at period-end closing. to allocate costs from a sender to a receiver. Requirements and Expectations There is no concept of Statistical key figures in the existing system.11.

Distribution Distribution is a method of internal cost allocation that allocates primary costs. The allocation is done using Distribution Cycles by specifying rules for the settlement of primary costs on a cost center Main features of this process are as below: The original cost element is retained in the receiver cost center Information about the sender and the receiver is documented in the Controlling document.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . L items are posted for the sender as well as ine for the receiver. Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers. Only primary costs can be reposted. Cost allocations are performed under controlling area (GGC). For example.confidential - Page 68 of 86 . statistical key figures. Under this procedure. amounts. Periodic reposting can be reversed and repeated as often as required. the costs collected on a cost center during the accounting period are allocated to receivers. enabling the allocation to be recorded exactly. each company codes can allocate their costs using the Standard allocation tools provided by SAP. These are indirect allocation methods for which user-defined keys such as percentage rates. or posted amounts provide the basis for cost/quantity assignment. Business Process Mapping to R/3 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting.5.5 COST ALLOCATION No Information available. Requirements and Expectations In the existing system costs are booked only in financial records and the concept of apportionment to respective departments is done for reporting purpose. Telephone costs are collected on a cost center for each period & then can be allocated using the process of reposting or distribution/ assessment cycles at the end of the period according to the number of telephone units or telephone installations in each cost center. SAP ECC 6. During this process.11. the original cost element remains the same. These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once. Distribution & Assessment.

SAP ECC 6.confidential - Page 69 of 86 . other cost centers. E. Further analysis is available through CCA reporting.g. allocating general & administrative costs.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 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. The concept and procedure would remain the same for profit center Assessment and Distribution cycles. 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).

Pictorial depiction of Assessment: Description of improvements A systematic approach to distribute costs and revenues between CO objects. Special Configuration consideration Standard SAP R/3 Description of Functional Deficit No Approaches to covering Functional Deficit No SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 70 of 86 .

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

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

11. Conversion cost includes labor cost and overheads. All costing data is stored with reference to a plant. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. or provision of a service.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost.7. Conversion Cost Overhead Cost The Overhead cost would get calculated as per the parameters given in the overhead-costing sheet maintained in the Valuation Variant.5.7 PRODUCT COST CONTROLLING No Information available.2 CREATING. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. Material valuation is carried out at the Plant level. packing cost and conversion cost. Batch Cost: In SAP. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. It enables you to calculate the minimum price at which a product can be profitably marketed. 11.5.7. Product costing is carried out at the plant ) level. Labor Cost: The number of Labor hour time would get picked up from R outing master. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate. The following process will be applicable for all manufacturing companies like GGPL and CGCL. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials. 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. for material valuation.confidential - Page 73 of 86 . Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module.11.5. SAP ECC 6. marked and released for both Finished Products and Semi Finished Products. The system uses the results of cost estimates to valuate material movements in Logistics. the Standard Cost Estimate is created. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. The following process may be applicable for GGI as there is no information of Product Costing in GGI.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

SAP ECC 6.3 REPETITIVE MANUFACTURING PROCESS .BOTTLES. the costs per material or per production version are determined via a product cost collector (product cost per period). In repetitive manufacturing. a separate Cost Collector is defined for the Production version. The activity quantities that are to be confirmed are defaulted on the basis of the routing Used for the preliminary cost estimate. Thus.5. the Standard Cost Estimate would include both Batch cost. At the time of creation. at the beginning of the period. 11. Suitable repetitive manufacturing profile is to be updated in the material master record to be able to back flush a material. The Inventory will be valuated at Standard price. 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. The production version is linked to the Cost Collector through the Production Process number. it would be marked and released. In GGC. For normal production of glasses the R epetitive Manufacturing process will be followed. Process: T Code KKF6N is used for creating the P roduct Cost Collector. This apart.7. Order types are separate for this process. The Controlling link is established because the system picks the Planned and Actual Costing Variants from the Order Type. with the facility of periodic settlement. on creation of the Standard cost estimate. The Conversion cost would get picked up from the Planned Activity price maintained and Overhead costing sheet. Product Cost Collector: In SAP. 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.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .The costs for a period can be viewed through the Product cost collector. the system internally creates a Production Process. packing cost and Conversion cost. The marking and releasing of standard cost estimate would happen at the beginning of a period as described. On Marking the new price would be calculated and get reflected in the Future Planned Price of the material master. This Production P rocess number is updated in the manufacturing orders assigned to the Product Cost Collector. So. This would be assigned a unique Costing and Valuation variants. Repetitive Manufacturing Process is applicable for products that are continuously made in high volumes.R materials are maintained at Moving Average Price. the process involves creation of a preliminary cost estimate for the cost collector.confidential Page 74 of 86 . On R eleasing the Future planned price would become the Present Price. They hold the control mechanism like the planning and settlement profile.

Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. Production Orders: A Production order defines which material is to be processed. at what time and how much work is required.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . WIP would be calculated only for Open Production Orders. Mould Manufacturing. The order could be triggered by the T Code MFBF. 11. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. In SAP. Confirm production order. Process: Creation of Production Order.confidential - Page 75 of 86 . Discrete manufacturing will be used for production of Molten Glass. WIP means all debits Minus Credits of a production order. This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. Discrete Manufacturing: WIP gets calculated through a standard transaction.7.7. at which location.5. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production.The Costing Sheet is picked from the valuation variant from the Costing variant.5. 11. It also defines which resources are to be used and how the order costs are to be settled.e.5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1. So with all these links the standard costing estimate could be run for the materials.SEMIFINISHED PRODUCTS Discrete manufacturing (i. SAP ECC 6. Sand and Polythene. Goods receipt against production order.4 DISCRETE MANUFACTURING PROCESS . With backflush the materials are issued to production and the finished goods posted to warehouse. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. Issue materials against production order.

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

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

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

you can analyze it immediately according to the period accounting approach using the Standard Reports in the information system. Providing valuable profitability reports to the management for decision making purposes.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. 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. The system allocates the corresponding costs to the revenues for each market segment. Communication. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . This is done through: Maintaining forms and drilldown reports Maintaining variables Operating Concern: Operating Concern GGC will be created for GGC. Requirements and Expectations In the existing system. income and expenses are analyzed by profitability segments.9 PROFITABILITY ANALYSIS Since GGI and PIR UK Company codes are assigned to the CO area of IN and SL Company codes. 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.11. Example: Value fields are Billing Income. 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.confidential Page 80 of 86 . IT Expenses. profitability analysis is done at L wise. Processes and Sub-Processes) for analysis. SBU wise for Internal wise manually. there would be only one Operating Concern common for the all the company codes.5. 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. etc. Furnace wise. Profitability Segment: In Profitability Analysis. Profitability Analysis analyzes the profit or loss of an organization by individual market segments. Travel Expenses.

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

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

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

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

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

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11.6

REPORTS
CONTROLLING

SANDARD REPORTS AVAILABE IN SAP

S.No.

Description Cost Center:

Selection criteria

Output

01

Actual/Plan/Variance (S_ALR_87013611) Cost Center:

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

02

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

03

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

04

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

Fiscal

Quarterly comparison

05

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

Fiscal

Fiscal year comparison

06

Variances (S_ALR_87013627) Cost Center:

Controlling area, period, Cost center(s)

Variance

07

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

List of all actual line items affecting the cost center

08

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

L of all plan line items affecting ist the cost center

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

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

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

Actual values of period 1 to N

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

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

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

AR / AP profit center wise

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

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17

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

Concern,

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

18

Concern,

19

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

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confidential - Page 86 of 86 .11.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Hence GAPS could not be prepared. SAP ECC 6.7 GAPS The requirements are NOT in place.

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