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

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

0 Modules. The information was gathered through interviews conducted at the GGPL plant with the managers.0 implementation. The Blueprint and its associated appendices present a summarized perspective of all functional business processes that will be implemented. which are being implemented in Phase 1.0 standard business processes Adhere to business basic's and use SAP as a model for best business practices 1.Major expansion plans for capacity increase are already on anvil. key users and personnel from Information Systems. the HP consultants will determine the SAP functionality required to run the GGPL business.confidential Page 7 of 86 . as well as through reviews of business processes.0. SAP ECC 6. The immediate purpose of the analysis is to prepare to move forward rapidly with the implementation of GGPL 's SAP ECC 6. business procedures.0 system. Blueprint document will serve . At the conclusion of the blueprint. After successful commissioning of those projects. documentation and relevant reports using Q & A db from Value SAP methodology.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . HP is the P Implementation Partner for SAP ECC 6.0 system. GGPL will further consolidate its position as market leader in Glass Industry. which conducted requirement analysis of GGPL for the SAP ECC 6.3 OVERVIEW OF BLUEPRINT PHASE This document summarizes the findings of the Hewlett-Packard (HP) consulting team.from this point forward the dual role of both official project scope as well as system acceptance criteria. GGPL has decided to implement an integrated ER solution and have selected SAP ECC 6.2 ENTERPRISE RESOURCE PLANNING (ERP) PROJECT OBJECTIVES Objectives for the implementation project are: Implement SAP ECC 6. The SAP ECC 6. 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.

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

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

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

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

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

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

These are not represented by GL accounts in FI. the highest node is created when maintaining the Structure. The Company Code allocated to the Controlling area must use the same operating chart of accounts and the same fiscal year variant.3 COST ELEMENTS In SAP.5 5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . without any effect in Finance module. Other than this. 5. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. The difference between FI and CO is that in CO. SAP ECC 6. activities. other cost centers) under a cost element. The method works according to the keys defined by the user. using a drill-down system. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders. locations.confidential Page 14 of 86 .2 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. some objects are created only in CO termed as Secondary Cost Elements . Each controlling area has a unique standard hierarchy. to measure the internal flow of costs between Cost objects. To the standard hierarchy of cost centers are attached all the cost centers created for a Company code. and responsibility areas. used to assure the instant reconciliation of the postings. 5.1 CO MASTER DATA CONTROLLING AREA The Controlling Area is the business unit where Cost Accounting is carried out. The cost center is the main SAP ECC 6. it is mandatory that the posting be made using both a cost element and a cost object (cost center. Secondary cost elements are used for allocations and settlements. The criteria used to create them are: function. there are attached the nodes for each company code. All expense related G/ L accounts in FI are made Primary Cost Elements in CO.the root of the hierarchy. internal order etc.) Secondary cost elements Secondary cost elements are accounts created in controlling only. No cost center can be created without an allocation to one level in the standard hierarchy.0 structure used to allocate costs in the exact point of their appearance. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. To the highest node . used to measure the internal flows of values between different cost objects.

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 . in some instances. N o profit center can be created without an allocation to one level in the standard hierarchy. The criteria used to create them are: divisions.5.4 PROFIT CENTER STANDARD HIERARCHY The Profit Center Standard Hierarchy is similar to that of the Cost Center Standard Hierarchy that collects together all the profit centers created in a Controlling Area. 5. using a drill-down system. areas of operation. The profit center is the main SAP ECC 6. To the highest node the root of the hierarchy. the revenues of an organization. these are attached the nodes for each company code. There can be only one Standard Hierarchy for a company code. SAP ECC 6.confidential - Page 15 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .5 INTERNAL ORDERS An instrument used to monitor costs and.0 structure used to allocate costs in the exact point of their appearance.

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

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

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

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

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

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

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

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

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

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

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

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

1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. The system uses the results of cost estimates to valuate material movements in Logistics. the Standard Cost Estimate is created. Conversion cost includes labor cost and overheads. packing cost and conversion cost. The following process will be applicable for all manufacturing companies like GGPL. marked and released for both Finished Products and Semi Finished Products. CGCL and GGI US. 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.7. on creation of the Standard cost SAP ECC 6. for material valuation. or provision of a service.0 Product costing is a tool for planning costs and establishing prices for materials. It enables you to calculate the minimum price at which a product can be profitably marketed. Thus.7. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained.confidential - Page 28 of 86 .2 CREATING. Batch Cost: In SAP. Conversion Cost Overhead Cost The Overhead cost would get calculated as per the parameters given in the overhead-costing sheet maintained in the Valuation Variant. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module.7 P RODUCT COST CONTROLLING Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. 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. So. 6. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. Product costing is carried out at the plant ) level. R materials are maintained at Moving Average Price. R Materials will be valuated at moving aw average price and Semi Finished Materials will be valuated at standard cost estimate. Business mapping to SAP ECC 6.6. Material valuation is carried out at the Plant level. 6. Labor Cost: The number of Labor hour time would get picked up from R outing master. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . All costing data is stored with reference to a plant.

Suitable repetitive manufacturing profile is to be updated in the material master record to be able to back flush a material. a separate Cost Collector is defined for the Production version. Packing cost and Conversion cost. This apart. with the facility of periodic settlement. On R eleasing the Future planned price would become the Present Price. On Marking the new price would be calculated and get reflected in the Future Planned Price of the material master. The system auto creates a settlement rule and the receiver is always a Material. The Controlling link is established because the system picks the Planned and Actual Costing Variants from the Order Type. In GGC. Process: Product Cost Collector is created at the time of Production Process.estimate. the Standard Cost Estimate would include both Batch cost. Product Cost Collector: In SAP. Order types are separate for this process. the process involves creation of a preliminary cost estimate for the cost collector. The Inventory will be valuated at Standard price.confidential - Page 29 of 86 . it would be marked and released.3 REPETITIVE MANUFACTURING PROCESS . The Conversion cost would get picked up from the Planned Activity price maintained and Overhead costing sheet.BOTTLES. 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. 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. 6.7. The production version is linked to the Cost Collector through the Production Process number.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .The costs for a period can be viewed through the Product cost collector. the costs per material or per production version are determined via a product cost collector (product cost per period). For normal production of glasses the R epetitive Manufacturing process will be followed. 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. Repetitive Manufacturing Process is applicable for products that are continuously made in high volumes. They hold the control mechanism like the planning and settlement profile. In repetitive manufacturing. SAP ECC 6. This would be assigned a unique Costing and Valuation variants.

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

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

For GGC.0 An organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. A dummy profit center GGC Dummy has been created. They are judged by their profit or loss. The cost centers are linked to profit centers. independent areas within an organization. These areas are responsible for their costs and revenues. SAP ECC 6. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization. PCA integrates with CO through its controlling area / company code relationships. The hierarchy is displayed in the annexure. Dummy Profit Center: The dummy profit center is updated in data transfers whenever the object to which the data was originally posted (cost center. Profit Center Accounting is a statistical accounting component in the SAP system. profit centers are proposed on the basis of Process.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. just like independent companies. and so on) is not assigned to a profit center. This is used by the system when there is no profit center assignment even though the field is made mandatory.confidential - Page 32 of 86 . This means that it takes place on a statistical basis at the same time as true accounting. Profit Center Accounting evaluates the profit or loss of individual. Transfer Pricing Concept Profit centers are responsible for their own costs and revenues and are treated as independent units within the legally independent company.6. Business mapping to SAP ECC 6.8 P ROFIT CENTER ACCOUNTING Requirements and Expectations To draw P&L and BS at the level of SBU s (Profit Centers). You can use a transfer price to valuate goods movements between profit centers. This ensures that the data in Profit Center Accounting is complete. internal order. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution. Profit Centre Hierarchy To be discussed & finalized with the core team.

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

Providing valuable profitability reports to the management for decision making purposes. Special Configuration consideration Standard SAP ECC 6.0 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.Once you have transferred actual data to Profit Center Accounting.confidential - Page 34 of 86 . you can analyze it immediately according to the period accounting approach using the Standard Reports in the information system.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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

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

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

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 6.02 2.00 3.06 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 2.04 2.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .No.00 1.01 2.01 3.confidential - Page 38 of 86 .12 Budgeting Sales Budget Computation of RM Costs.05 2.07 2. MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.11 2. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 3 .09 2.08 2.00 2.02 1. Freight Costs Energy Cost Mould Cost HR Cost Stores.02 3.7 Sr.01 1.05 1.04 1. Packing Costs.03 2.03 1.10 2.06 2.

01 6. Packing Costs.05 5.11 6.02 6.0 Business Blueprint for GGPL Controlling Module .00 Cost Allocation Hewlett-Packard .06 6.02 7.06 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 6.05 6.4.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7.01 7.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.08 6.12 Budgeting Sales Budget Computation of RM Costs.00 5.03 6.02 5.04 6.01 5.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.00 7. Freight Costs Energy Cost Mould Cost HR Cost Stores.03 5.07 6.09 6.10 6.04 5.00 6.

Description Cost Center: Selection criteria Output 01 Actual/Plan/Variance (S_ALR_87013611) Cost Center: Controlling Area. plan costs. absolute year. period. period. absolute year. variance. variance. period. items period (KSB1) Cost Center: Cost center. variance % with cost . year. variance.No. Cost center(s) comparison Quarterly (S_ALR_87013623) Cost Center: Fiscal Quarterly comparison 05 Actual / Actual Controlling area. cost element elements Controlling Area. absolute year. plan costs.8 REPORTS STANDARD REPORTS AVAILABE IN SAP CONTROLLING S. Display actual cost line period items Hewlett-Packard . year. cost element element group 02 Actual/Plan/Variance (S_ALR_87013612) Cost Center: 03 Actual/Plan/Variance (S_ALR_87013612) Cost Center: 04 Actual / Actual Controlling area. Fiscal Actual costs. Cost center(s) Variance 07 Display actual cost line Cost center. Cost center(s) comparison Fiscal year (S_ALR_87013624) Cost Center: Fiscal Fiscal year comparison 06 Variances (S_ALR_87013627) Cost Center: Controlling area. cost center. Fiscal Actual costs. period. variance % without cost . Cost Element. Cost Element.0 Business Blueprint for GGPL Controlling Module Page 40 of 86 . cost center. Fiscal Actual costs. cost center. plan costs.confidential - L of all actual line items affecting ist the cost center 08 L of all plan line items affecting ist the cost center SAP ECC 6. variance % cost element Controlling Area.

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

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

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

How to capture the cost? How the mould consumption cost absorbed in Product . Will be valuated at the month beginning only. Realization Realization 10 Close 11 Realization 12 Restriction on certain cost elements to be part of COGM. Mould will be included in BOM/ PRT? Consumption will be determined based on the quantities mentioned in Backflush. Close SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .will get YTD (April) Wtd Average Price.Variable cost? And Value of remaining life of mould to be part of inventory.How the SD & Admn overheads allocated? RM Price Moving average price: Is it Wtd Average price OR Last Price? It has to be at the current month YTD wtd avg price . Packing Material cost consists of Primary. 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 Manual JV only possible. Stock visibility is std SAP functionality Primary & Secondary through BOM.What is fixed portion? Cost Of Goods Sold .through Rework Order with working BOM.10 Sr.confidential - Page 44 of 86 . 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 .Product transferred to other locations (Plants/ CFAs/ Companies). Repacking . 1 2 3 4 ANNEXURE A: SUMMARY OF R EQUIREMENTS Discussion Points on Blue Print Product cost (COGM) Cost Allocation . Addressed through Price control "V" in Material Master . 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. Activity planned price determined either by capacity or the activities performed in the prod cctr and price calculated based on that. secondary & repacking cost. No.not last month. Not possible.Valuation at different rate? Stock reserve .

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

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

Run SCE with costing variant which don t update the price.COPA Repacking will be addressed through rework order.33 Actual v/s Budget . Packing material wise consumption quantity & value .Variance Packing BOM in case of customer specific is product-customer. Product wise repacking & resorting costs should be available for accurate product wise costing. Separate report showing the consumption of non-standard packing material needs to be generated. This amount should flow to books of accounts / MIS.. Also Material wise Price variance against Budget. of containers & ocean freight analysis vis-à-vis budgeted rates should be done. CHA & other charges need to be available as soon as the sales register is finalized.Actual vis-à-vis Budget . Port wise no. 34 35 Material wise Price Variance Analysis vis-à-vis Budgeted prices.SBU wise Budgeted price will be maintained in material master as Planned price1 for all RM for molten glass. Differentiating packing material alone requires z report Multiple BOM is possible. THC & Documentation. Duplicate Finished product wise usage of packing material variance addressed in standard. Destination mix should also be analyzed. Invoice wise accurate (actual or provisions if bills not received) freight costs like Local/ Inland freight. And run variance report with different versions.confidential - Page 47 of 86 . Freight module Close Close Close 36 Close 37 close 38 Close 39 Close 40 Close 41 Z development Close SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .Rate & Usage variance. Variance per alternative BOM (Production Version) is possible Standard reports available in SAP showing variance analysis (Production order wise). Ocean freight. . Primary & Secondary packing cost (rate & usage) variances for each product/ category/ line / furnace should be highlighted. Standard report available.

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

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

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

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

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

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

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

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

overhead surcharges. process allocations and direct primary costs can be posted to the cost object (e. most expense postings to the General L edger would result in a cost posting to CO. accounts payable postings. the main task of controlling is planning. PP-production order. Integration Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. Therefore. 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. or depreciation postings from Asset Accounting (FI-AA).11. such as cost centers. The relevant accounts in Financial Accounting are managed in Controlling as cost elements or revenue elements. planned personnel costs can be transferred to CO as input to CO planning. These variance calculations enable you to control business flows. For example. The L ogistics area of R 3 also has numerous integration points with Controlling (e. These expense postings to the G/ L could be manual journal entries. cost of goods issues. This involves recording both the consumption of production factors and the services provided by an organization. sales order item) SAP ECC 6.2..g. This enables you to compare and reconcile the values from Controlling and Financial Accounting. when non-stock / consumable items are purchased. Income statements such as. are used to control the cost efficiency of individual areas of an organization. Other R 3 modules generate data that has a direct impact on CO. posted as a cost to the cost center (or other object in CO) for which the items have been purchased.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. contribution margin accounting.confidential Page 56 of 86 . In addition. an expense is posted to the GL At the same time. It facilitates coordination. projects or orders.g. You can determine variances by comparing actual data with plan data. as well as the entire organization. all data relevant to cost flows automatically to Controlling from Financial Accounting. Consumption of activities. Typically. At the same time. the expense is . The Human R esources (HR modules can generate several types of cost postings to Controlling. the system assigns the costs and revenues to different CO account assignment objects. The data flow between the two components takes place on a regular basis. when doing a / goods issue to a controlling object or a goods receipt from production). monitoring and optimization of all processes in an organization. The Financial Accounting application area of R/3 is a primary source of data for Controlling. That cost center's costs may later be passed on as overhead to a production cost center or elsewhere in CO. business processes.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . As well as documenting actual events. The HR ) system allows you to allocate the cost of work to different Controlling (CO) objects. The Production Planning (PP) and the Sales and Distribution area of Logistics also works very closely with Controlling.

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

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

and responsibility areas.4. The profit center is the main R 3 structure used to allocate costs in the exact point of their appearance. these are attached the nodes for each company code.the root of the hierarchy. To the highest node . To the highest node the root of the hierarchy. There can be only one Standard Hierarchy for a company code. used to measure the internal flows of values between different cost objects.confidential - Page 59 of 86 . using a drill-down system. Secondary cost elements are used for allocations and settlements.11. 11. without any effect in Finance module. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling. All expense related G/ L accounts in FI are made Primary Cost Elements in CO. The cost center is the main R 3 structure used to allocate costs in the exact point of their appearance. some objects are created only in CO termed as Secondary Cost Elements .4. activities. These are not represented by GL accounts in FI. other cost centers) under a cost element. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. N o cost center can be created without an allocation to one level in the standard hierarchy.4. locations. The method works according to the keys defined by the user. used to assure the instant reconciliation of the postings.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. 11.1 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. The / criteria used to create them are: divisions. it is mandatory that the posting be made using both a cost element and a cost object (cost center. N o profit center can be created without an allocation to one level in the standard hierarchy. using a drill-down system. Other than this. The difference between FI and CO is that in CO. SAP ECC 6.2 COST ELEMENTS In SAP. to measure the internal flow of costs between Cost objects.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The / criteria used to create them are: function.4 CO MASTER DATA 11. there are attached the nodes for each company code. internal order etc. areas of operation. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders.) Secondary cost elements Secondary cost elements are accounts created in controlling only.

in some instances.4 INTERNAL ORDERS An instrument used to monitor costs and. the revenues of an organization.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .4.11.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 . SAP ECC 6.

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

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

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

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

Cost center budgeting provides a further method of planning in addition to primary cost and secondary cost planning. This standard hierarchy has cost center groups attached to it. You can then determine the variances from these figures when you come to compare these plan values with the costs actually incurred. settlement-related. Cost Center Planning and Budgeting Cost center planning involves entering plan figures for costs.2 COST CENTER MAINTENANCE Requirements and Expectations In the existing system. Special Configuration consideration Standard SAP R/3 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. costs incurred are captured in cost centers. prices or statistical key figures for a particular cost center and a particular planning period. Business mapping to R/3 A standard hierarchy will be created for the Controlling Area (GGC).5. The actual cost centers are attached to this cost center group.11. These categories are used to lock the posting of revenue posting into cost centers and also these categories can be used for reports and evaluations.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . spatial. Organizational unit within a controlling area that represents a clearly delimited location where costs occur. Change to cost centers can be made individually or collectively.confidential Page 65 of 86 . Description of Improvement Efficient monitoring of costs through cost centers. No Information on Cost Centers for GGI and UK Company codes. Cost Centers for individual company codes under GGC will be created and will be assigned to the respective cost center group. You can make organizational divisions on the basis of functional. activities. This tool enables you to carry out a comparison between actual postings and plan budgets. and/ or responsibility-related standpoints. activity-related. Cost Center Hierarchy No Information available.

The variation in cost between one cost center and the other for the same activity type is taken care during the cost planning. Activity types classify the activities produced in the cost centers within a controlling area. But the cost will be different because.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and .5. For example. activity type LAB will be common for both C&P glass and Pharma glass manufacturing. Requirements and Expectations There is no concept of activity types in the existing system. A cost center can be assigned one. 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. multiple. activity dependent cost elements planning will be carried out individually. activity planning will be done at the respective production cost centers. Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department. Business mapping to R/3 Activity types describe the activity produced by a cost center and are measured in units of time or quantity.confidential - Page 66 of 86 . they are linked to work centers in PP. For example. One particular activity type can be assigned to one or more cost centers.11.3 ACTIVITY TYPE MAINTENANCE No Information available. or no activity types.

5. SKF can be used across all the company codes.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . to allocate costs from a sender to a receiver. Description of Improvement Not Applicable Special configuration consideration Standard Sap R/3 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.11.confidential - Page 67 of 86 .4 STATISTICAL KEY FIGURE MAINTENANCE No Information available. Requirements and Expectations There is no concept of Statistical key figures in the existing system. based on the requirement of cost allocation. at period-end closing. Business mapping to R/3 Statistical Key Figure The statistical key figures are used in various distribution cycles.

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

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

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.confidential - Page 70 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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

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

maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. 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. All costing data is stored with reference to a plant. packing cost and conversion cost.11. 11. for material valuation. marked and released for both Finished Products and Semi Finished Products. Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. Conversion cost includes labor cost and overheads. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. 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.7.7. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials. Material valuation is carried out at the Plant level.5.confidential - Page 73 of 86 . SAP ECC 6. It enables you to calculate the minimum price at which a product can be profitably marketed.5. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. The system uses the results of cost estimates to valuate material movements in Logistics. or provision of a service. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module.7 PRODUCT COST CONTROLLING No Information available. Product costing is carried out at the plant ) level. The following process may be applicable for GGI as there is no information of Product Costing in GGI. Batch Cost: In SAP.5. The following process will be applicable for all manufacturing companies like GGPL and CGCL. the Standard Cost Estimate is created. Labor Cost: The number of Labor hour time would get picked up from R outing master. 11.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost.2 CREATING.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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

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

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

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

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

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

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

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

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

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

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

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

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11.6

REPORTS
CONTROLLING

SANDARD REPORTS AVAILABE IN SAP

S.No.

Description Cost Center:

Selection criteria

Output

01

Actual/Plan/Variance (S_ALR_87013611) Cost Center:

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

02

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

03

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

04

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

Fiscal

Quarterly comparison

05

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

Fiscal

Fiscal year comparison

06

Variances (S_ALR_87013627) Cost Center:

Controlling area, period, Cost center(s)

Variance

07

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

List of all actual line items affecting the cost center

08

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

L of all plan line items affecting ist the cost center

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

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

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

Actual values of period 1 to N

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

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

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

AR / AP profit center wise

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

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17

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

Concern,

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

18

Concern,

19

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

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SAP ECC 6.7 GAPS The requirements are NOT in place.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .11.confidential - Page 86 of 86 . Hence GAPS could not be prepared.

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