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 -

Page 3 of 86

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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..........54 11.................2Cost Center Maintenance..................................................................54 11............................................................................................4Statistical Key Figure Maintenance ................59 11...........2..........58 11.............................................................................................................7 GAPS ...1Introduction.........................5..............67 11.............................................2...................61 11..................................................................................................71 11...4.......................................................................................................................................................................................1Cost Center Standard Hierarchy ...............................5.................................1Cost Element Accounting........................................2Cost Elements........................9Profitability Analysis ...............73 11.........................................................................5.............................................................................................................................4.................................................................7Product Cost Controlling.........................................................................................77 11....66 11.......................................................59 11...............................................5........................................................................68 11................2 CO Module Introduction ............................83 11.............................5.......59 11.............................................................................................................60 11................................................................................8Profit Center Accounting.........56 11.....................................................59 11....................54 11...........................................................................65 11................................confidential - Page 5 of 86 .5.......................................5Cost Allocation...........................................................4Internal Orders ...3Profit Center Standard Hierarchy...........5 Business Process Mapping to R/3 ...............61 11............................................5..............2.....86 SAP ECC 6............4............................................................5................4.....5...........................................3Activity Type Maintenance.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .............................6Internal Orders .....................2CO Value Flows in SAP .....................80 11................6 Reports.....11.3CO Module Integration with Other Modules .........4 CO Master Data..............3 CO Organization Structure......................................................

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

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

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

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

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

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

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

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

Secondary cost elements are used for allocations and settlements. The method works according to the keys defined by the user. Other than this.5 5. without any effect in Finance module. locations. to measure the internal flow of costs between Cost objects. To the highest node . used to assure the instant reconciliation of the postings. some objects are created only in CO termed as Secondary Cost Elements . Each controlling area has a unique standard hierarchy. These are not represented by GL accounts in FI.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . 5.the root of the hierarchy. Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account.3 COST ELEMENTS In SAP. there are attached the nodes for each company code.0 structure used to allocate costs in the exact point of their appearance. All expense related G/ L accounts in FI are made Primary Cost Elements in CO. SAP ECC 6.1 CO MASTER DATA CONTROLLING AREA The Controlling Area is the business unit where Cost Accounting is carried out. and responsibility areas. internal order etc. 5. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders. The difference between FI and CO is that in CO. the highest node is created when maintaining the Structure. To the standard hierarchy of cost centers are attached all the cost centers created for a Company code.) Secondary cost elements Secondary cost elements are accounts created in controlling only. The criteria used to create them are: function.confidential Page 14 of 86 . using a drill-down system. it is mandatory that the posting be made using both a cost element and a cost object (cost center. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling.2 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. other cost centers) under a cost element. The Company Code allocated to the Controlling area must use the same operating chart of accounts and the same fiscal year variant. The cost center is the main SAP ECC 6. No cost center can be created without an allocation to one level in the standard hierarchy. used to measure the internal flows of values between different cost objects. activities.

using a drill-down system. the revenues of an organization. The profit center is the main SAP ECC 6. The criteria used to create them are: divisions.confidential - Page 15 of 86 .5.0 structure used to allocate costs in the exact point of their appearance. There can be only one Standard Hierarchy for a company code. areas of operation. 5. Internal orders can be used for the following purposes: Monitoring the costs of short-term jobs Monitoring the costs and revenues of a specific service Ongoing cost control .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . these are attached the nodes for each company code. SAP ECC 6.5 INTERNAL ORDERS An instrument used to monitor costs and. in some instances.4 PROFIT CENTER STANDARD HIERARCHY The Profit Center Standard Hierarchy is similar to that of the Cost Center Standard Hierarchy that collects together all the profit centers created in a Controlling Area. N o profit center can be created without an allocation to one level in the standard hierarchy. To the highest node the root of the hierarchy.

Most of the values are moved automatically from Financial Accounting to Controlling. The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. 12 Sales Deductions This cost element category can be used to post deductible items.1 BUSINESS PROCESS MAPPING TO SAP ECC 6.Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment. Assessment is a method of internal cost allocation in which costs are apportioned from a sender cost center to receivers (cost centers.6 6.0 SAP will use the concept of Cost Elements to track the flow of costs between FI / CO and flow of costs internal to CO (which arises due to reposting / distribution / assessment).0 COST ELEMENT ACCOUNTING Requirements and Expectations At present. Cost and Revenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting. internal orders) using an assessment cost element. The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. there is no concept of Cost Element. 11 Revenue Elements This cost element category can be used to post revenues. 41 Overhead . SAP distinguishes between: Primary Cost Element Categories Secondary Cost Element Categories The Primary Cost Element Categories are: 01 General Primary Cost Element This cost element category can be debited for all primary postings. Business Mapping to SAP ECC 6.confidential - Page 16 of 86 . The costs are apportioned according to an allocation base (tracing factor) defined by the user. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. Assessment can be run for both plan and actual values. 31 Order / Project Results analysis Used to store result analysis data. SAP ECC 6. All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000. profitability segments and cost centers. The cost element category determines which cost elements can be used for which business transactions.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .

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. they can be used to create reports or to process several cost elements in one business transaction. Settlement Profiles. Cost element groups can serve various purposes.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Description of Improvement This will provide capability for detailed recording of data that forms the basis for cost accounting.g. Cost elements are per controlling area. excluding secondary cost elements for drawing up P statement on profit &L centers) reports can be drawn up. 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. Depending on the cost elements chosen (for e. For example. Allocation Structures. Special configuration consideration No Special configuration required.confidential - Page 17 of 86 .Cost element groups Cost elements with similar characteristics can be collected in the form of Cost Element Groups.

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

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

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

3 ACTIVITY TYPE MAINTENANCE Requirements and Expectations There is no concept of activity types in the existing system. For example. Activity type will be created for all the manufacturing company codes (GGPL CGCL and GGI) under GGC and . multiple. Assembly activity from Final Assembly Cost center and maintenance hours from Maintenance Department. Business mapping to SAP ECC 6. activity planning will be done at the respective production cost centers.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .6. or no activity types. But the cost will be different because. 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. Activity types classify the activities produced in the cost centers within a controlling area. For example. activity type LAB will be common for both C&P glass and Pharma glass manufacturing. activity dependent cost elements planning will be carried out individually.confidential - Page 21 of 86 . One particular activity type can be assigned to one or more cost centers. they are linked to work centers in PP. Description of Improvement Not Applicable Special configuration consideration Standard SAP ECC 6.0 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. at period-end closing.4 STATISTICAL KEY FIGURE MAINTENANCE Requirements and Expectations There is no concept of Statistical key figures in the existing system. to allocate costs from a sender to a receiver. Business mapping to SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . SKF can be used across all the company codes.0 Statistical Key Figure The statistical key figures are used in various distribution cycles. based on the requirement of cost allocation.confidential - Page 22 of 86 .0 Description of Functional Deficit No Approaches to covering Functional Deficit Not Applicable SAP ECC 6.6.

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

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

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

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

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

Conversion cost includes labor cost and overheads. for material valuation.7. packing cost and conversion cost. All costing data is stored with reference to a plant. on creation of the Standard cost SAP ECC 6.7. Thus. R materials are maintained at Moving Average Price.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. 6.confidential - Page 28 of 86 .6. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. So. The system uses the results of cost estimates to valuate material movements in Logistics. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. or provision of a service. Product costing is carried out at the plant ) level. Material valuation is carried out at the Plant level. 6. 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. marked and released for both Finished Products and Semi Finished Products. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export.7 P RODUCT COST CONTROLLING Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. Labor Cost: The number of Labor hour time would get picked up from R outing master. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. CGCL and GGI US. Conversion Cost Overhead Cost The Overhead cost would get calculated as per the parameters given in the overhead-costing sheet maintained in the Valuation Variant.2 CREATING. The following process will be applicable for all manufacturing companies like GGPL. Batch Cost: In SAP.0 Product costing is a tool for planning costs and establishing prices for materials.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . the Standard Cost Estimate is created. at the beginning of the period. when a Standard aw cost estimate is being created the system would take the latest weighted average Price from the material master and the same would be the standard cost of the material for the period. Business mapping to SAP ECC 6. R Materials will be valuated at moving aw average price and Semi Finished Materials will be valuated at standard cost estimate. It enables you to calculate the minimum price at which a product can be profitably marketed.

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

Production Orders: A Production order defines which material is to be processed. With back flush the materials are issued to production and the finished goods posted to warehouse. WIP would be calculated only for Open Production Orders.7. So with all these links the standard costing estimate could be run for the materials.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.e. at which location. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance. 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .7.confidential - Page 30 of 86 . Confirm production order. Mould Manufacturing. Goods receipt against production order.4 DISCRETE MANUFACTURING PROCESS . Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. Issue materials against production order. In SAP.SEMIFINISHED PRODUCTS Discrete manufacturing (i. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. SAP ECC 6. Process: Creation of Production Order. Discrete manufacturing will be used for production of Molten Glass. Sand and Polythene. 6.This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation. at what time and how much work is required. It also defines which resources are to be used and how the order costs are to be settled. 2. WIP means all debits Minus Credits of a production order. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. Discrete Manufacturing: WIP gets calculated through a standard transaction. Variance Calculation: Variances will occur when actual costs posted to the cost collector differ from the Target or Standard.

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

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

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

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

Communication. etc. Furnace wise. Characteristics: Characteristics in Profitability Analysis are the criteria according to which we can create and analyze plan and actual data.6. This is done through: Maintaining forms and drilldown reports Maintaining variables Operating Concern: Operating Concern GGC will be created for GGC. SAP ECC 6.9 P ROFITABILITY ANALYSIS Requirements and Expectations In the existing system. The system allocates the corresponding costs to the revenues for each market segment. L ine ocation wise. Business mapping to SAP ECC 6. 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. Processes and Sub-Processes) for analysis. Travel Expenses. Profitability Analysis analyzes the profit or loss of an organization by individual market segments. Profitability Segments are made up of combinations of characteristics and value fields. profitability analysis is done at L wise. income and expenses are analyzed by profitability segments. Example: Value fields are Billing Income. IT Expenses. SBU wise for Internal wise manually. The profitability reports are used to display Profitability Analysis data that is stored at suitably aggregated level (Customers.0 Costing based Profitability Analysis will be used.confidential - Page 35 of 86 .0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Profitability Segment: In Profitability Analysis.

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

Effort has to be estimated.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . This will be discussed further while realization. Description of Functional Deficit No specific functional deficit. SAP ECC 6.Description of Improvement Online Profitability Analysis would help in analyzing the revenue earned and expenses incurred for a period based on customer. process and sub-process wise. Special configuration consideration Profitability reporting at L wise and Furnace wise requires special configuration.confidential - Page 37 of 86 . (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. This will be ine discussed while realization.

Freight Costs Energy Cost Mould Cost HR Cost Stores.02 1.00 1.03 2.01 1.08 2. Packing Costs.07 2.03 1.confidential - Page 38 of 86 .02 2.11 2.06 2.No.7 Sr. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 3 .02 3.05 2.09 2.00 2.05 1.04 1.00 3.10 2. MAPPING OF AS-IS PROCESSES IN BLUEPRINT DOCUMENT AS-IS Business Process Coverage in Business Blue Print document Covered (Y/N) INDIA Operations 1.04 2.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .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 6.12 Budgeting Sales Budget Computation of RM Costs.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 2.01 3.01 2.

00 5. Spares & Repairs Plant OH Sales OH HO OH Export Incentives Decoration & Trading Expenses SBU wise budgeted P&L Pg no: 35 Pg no: 35 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 19 Pg no: 32 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7.05 5.08 6.09 6.03 5.02 6.01 5.11 6.04 5.07 6.10 6.01 6.03 6.00 Cost Allocation Hewlett-Packard .00 6.05 6.4.0 Business Blueprint for GGPL Controlling Module . Freight Costs Energy Cost Mould Cost HR Cost Stores.03 Valuation Finished Goods Semi-finished Goods Raw Materials Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes 8.06 Costing & Target Pricing RM Batch Costing Domestic Bottle Costing Export Bottle Costing Trading Items Polythene Sand Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Pg no: 27 Yes Yes Yes Yes Yes Yes 6.00 7.04 6.12 Budgeting Sales Budget Computation of RM Costs.confidential - Pg no: 22 Yes Page 39 of 86 SAP ECC 6. Packing Costs.02 5.01 7.02 7.06 6.0 0 Cost Allocation Pg no: 22 Yes SRI LANKA Operations 5.

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

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

(S_ALR_87013340) 17 P rofitability Analysis: Operating Display Actual L ine Item Period/Year List (KE24) P rofitability Analysis: Operating Display Plan L Item L ine ist Period/Year (KE25) Concern. 19 Execute Profitability Operating Concern. Controlling Area and Sub-Processes SAP ECC 6.confidential - Page 42 of 86 . 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 . Processes Reports (KE30) Center. Profit R eports on Customers.

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

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

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

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

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

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

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

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

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

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

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

Cost centers can then allocate costs to other cost / centers and orders. Cost objects (such as production orders. If an organization divides accounting into internal and external viewpoints. Profitability Analysis can receive cost assessments from cost centers.2.11. W ithin the Overhead Cost Controlling area. settlements of cost from internal orders. costs from cost centers (as production activities are performed or from overhead allocation).2 CO MODULE INTRODUCTION (Based on work done for India/Sri Lanka implementations) 11. receives statistical cost postings from virtually all other CO components. and production variances settled from cost objects.confidential - Page 54 of 86 . costs can be posted to cost centers and internal orders from other R 3 modules (external costs). It provides information for managers .2 CO VALUE FLOWS IN SAP There are numerous interrelationships between the various CO components.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . CO represents the internal accounting perspective.) can receive direct cost postings from FI (such as when an invoice receipt is assigned to the cost object). by virtue of its basic design.2. Value flows can occur for many different purposes. Profit Center accounting. In addition to direct postings from FI.those who are inside an organization and are vested with directing and controlling its operations. SAP ECC 6. There are also key cost flows that can occur between the Overhead Management and Product Cost Controlling components. 11.1 INTRODUCTION Controlling (CO) contains all accounting functions necessary for effective decision-making process. etc. and costs settled from internal orders Profitability Accounting components are tightly integrated with Overhead Management and Product Cost Controlling. CO covers both the operational and the strategic aspects of management.

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

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

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

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

Secondary cost elements are used for allocations and settlements. Allocation is a method of internal cost allocation by which the costs of a sender cost center are transferred to receiver CO objects (orders.11. other cost centers) under a cost element. To the highest node . Detailed explanation is as below: Primary cost elements The primary cost elements are the reflection in Controlling of a financial account. some objects are created only in CO termed as Secondary Cost Elements . 11.4. used to assure the instant reconciliation of the postings. The difference between FI and CO is that in CO. using a drill-down system. to measure the internal flow of costs between Cost objects. used to measure the internal flows of values between different cost objects.2 COST ELEMENTS In SAP. 11. The / criteria used to create them are: divisions.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .confidential - Page 59 of 86 . SAP ECC 6. and responsibility areas. activities.4. using a drill-down system. N o cost center can be created without an allocation to one level in the standard hierarchy. Other than this. without any effect in Finance module. it is mandatory that the posting be made using both a cost element and a cost object (cost center. locations. These are not represented by GL accounts in FI. There can be only one Standard Hierarchy for a company code. The / criteria used to create them are: function. N o profit center can be created without an allocation to one level in the standard hierarchy. there are attached the nodes for each company code. The method works according to the keys defined by the user.) Secondary cost elements Secondary cost elements are accounts created in controlling only. All expense related G/ L accounts in FI are made Primary Cost Elements in CO.1 COST CENTER STANDARD HIERARCHY The Standard Hierarchy is a unique structure that collects together all the cost centers created in a Controlling Area. these are attached the nodes for each company code.the root of the hierarchy. To the highest node the root of the hierarchy.4 CO MASTER DATA 11.3 PROFIT CENTER STANDARD HIERARCHY The Profit Center Standard Hierarchy is similar to that of the Cost Center Standard Hierarchy that collects together all the profit centers created in a Controlling Area. The cost center is the main R 3 structure used to allocate costs in the exact point of their appearance. internal order etc.4. The profit center is the main R 3 structure used to allocate costs in the exact point of their appearance. areas of operation. Controlling Module will have its own set of data for the purpose of Cost accounting & Controlling.

0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . the revenues of an organization.4 INTERNAL ORDERS An instrument used to monitor costs and. in some instances.confidential - Page 60 of 86 .4. SAP ECC 6. 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 .11.

The Secondary Cost Element Categories are: 21 Internal Settlement Used to settle internal order costs to objects such as internal orders. 41 Overhead . The actual expenses incurred in a GL account have to be captured in the respective Cost Centers. All P/ L accounts are Primary cost elements and the secondary cost elements are created in the number range 900000.11. The cost element category determines which cost elements can be used for which business transactions.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. 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. 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. there is no concept of Cost Element. 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).1 COST ELEMENT ACCOUNTING Requirements and Expectations At present. as adequate discussion on business process and information is missing) 11.5. 31 Order / Project Results analysis Used to store result analysis data. SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . profitability segments and cost centers. Most of the values are moved automatically from Financial Accounting to Controlling. Cost and R evenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. 11 Revenue Elements This cost element category can be used to post revenues.Used to allocate from Cost Centers to orders 42 Assessment Used to allocate costs during assessment.

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

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

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

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

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

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

Periodic reposting can be reversed and repeated as often as required. During this process. SAP ECC 6. 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. Reposting Periodic reposting is an allocation method that uses rules defined in the form of cycles for correcting postings to cost centers.5. each company codes can allocate their costs using the Standard allocation tools provided by SAP. the original cost element remains the same. Requirements and Expectations In the existing system costs are booked only in financial records and the concept of apportionment to respective departments is done for reporting purpose.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . amounts. Business Process Mapping to R/3 Cost and revenue Allocations in SAP shall be done using the procedure of Reposting. 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. For example. the costs collected on a cost center during the accounting period are allocated to receivers. Under this procedure.confidential - Page 68 of 86 . These methods are easy to use as the keys and the sender/receiver relationships are usually defined only once. Only primary costs can be reposted. or posted amounts provide the basis for cost/quantity assignment. Distribution & Assessment. Cost allocations are performed under controlling area (GGC). enabling the allocation to be recorded exactly. Distribution Distribution is a method of internal cost allocation that allocates primary costs. L items are posted for the sender as well as ine for the receiver.11.5 COST ALLOCATION No Information available. statistical key figures. These are indirect allocation methods for which user-defined keys such as percentage rates.

Pictorial depiction of Distribution: Assessment Assessment is a method of internal cost allocation by which the costs of a sender cost center is allocated (transferred) to receiver CO objects (orders. Further analysis is available through CCA reporting. and so on) under an assessment cost element (category 42). 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 . The method works according to the keys defined by the user.confidential - Page 69 of 86 . other cost centers. SAP ECC 6. 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.g. E.

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

It is named as per following naming convention: Site name . E.5. Internal orders are normally used to plan. Internal Orders are created at controlling area level and at company code level. Any new order is created under an order type that results in transfer of certain parameters to the order. from initial creation.6 INTERNAL ORDERS No Information available. through the planning and posting of all the actual costs. Internal orders will be used for capturing costs for short term simple projects and also for statistical reporting. to the final settlement and archiving Business mapping to 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. Order Type 300 is TLV Maintenance Internal Order. This is mandatory to capture the costs / expenses on the internal order against a budget.11. Internal order once created will be referred in raising a Purchase order in the account assignment category. in which company codes under if required can create Internal Orders for capturing costs for shot term simple projects and also for statistical reporting. and settle the costs of internal jobs and tasks. budgeting and tracking the costs of a particular nature of expense / cost. Description of Improvement Internal order would help in planning. All the above order for each Co code is defined as a separate order type.confidential - Page 71 of 86 . monitoring. Order Type An order type has a large amount of control information important to order management.Purpose Internal Order. collect.g. The SAP system enables you to monitor your internal orders throughout their entire life-cycle. and allocation of costs. This information includes a range of default values that are used when a new order is created with this order type. Internal orders provide capabilities for planning. Special configuration consideration Standard Sap R/3 SAP ECC 6.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Requirements and Expectations There is no concept of Internal Orders in the existing system.

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

11. The following process will be applicable for all manufacturing companies like GGPL and CGCL.2 CREATING. The following process may be applicable for GGI as there is no information of Product Costing in GGI.5.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . The system uses the results of cost estimates to valuate material movements in Logistics. 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. Business mapping to R/3 Product costing is a tool for planning costs and establishing prices for materials.1 INGREDIENTS OF PRODUCT COST The basic ingredients of product cost are batch cost. Conversion cost includes labor cost and overheads. 11. MARKING AND RELEASING OF STANDARD COST ESTIMATE At the beginning of the period. Product costing is carried out at the plant ) level. SAP ECC 6. Requirements and Expectations Product Cost Controlling calculates the costs that occur during manufacture of a product. for material valuation. Packing Cost: Packing cost depends upon the customer specification of the finished product and also depends upon the place of export.7. All costing data is stored with reference to a plant. Labor Cost: The number of Labor hour time would get picked up from R outing master.11. Conversion Cost Overhead Cost The Overhead cost would get calculated as per the parameters given in the overhead-costing sheet maintained in the Valuation Variant.confidential - Page 73 of 86 . marked and released for both Finished Products and Semi Finished Products.7 PRODUCT COST CONTROLLING No Information available. Product costing belongs to both the Production Planning (PP Module and the Controlling (CO) Module. Batch Cost: In SAP.7.5.5. Material valuation is carried out at the Plant level. maintained in PP and the Activity price would be get picked up from cost centre Activity price maintained. the Standard Cost Estimate is created. R aw Materials will be valuated at moving average price and Semi Finished Materials will be valuated at standard cost estimate. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. packing cost and conversion cost. It enables you to calculate the minimum price at which a product can be profitably marketed. or provision of a service.

Suitable repetitive manufacturing profile is to be updated in the material master record to be able to back flush a material.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . In repetitive manufacturing. The system auto creates a settlement rule and the receiver is always a Material. the Standard Cost Estimate would include both Batch cost. Order types are separate for this process. with the facility of periodic settlement. The marking and releasing of standard cost estimate would happen at the beginning of a period as described.7.3 REPETITIVE MANUFACTURING PROCESS . the system internally creates a Production Process. At the time of creation. Repetitive Manufacturing Process is applicable for products that are continuously made in high volumes. SAP ECC 6. So. This apart. On Marking the new price would be calculated and get reflected in the Future Planned Price of the material master. For normal production of glasses the R epetitive Manufacturing process will be followed. In GGC. The material cost would get picked up from the latest weighted average price as on the date of creating the standard cost estimate from the material master. on creation of the Standard cost estimate. 11.The costs for a period can be viewed through the Product cost collector. On R eleasing the Future planned price would become the Present Price. They hold the control mechanism like the planning and settlement profile. it would be marked and released. the costs per material or per production version are determined via a product cost collector (product cost per period). Product Cost Collector: In SAP. This would be assigned a unique Costing and Valuation variants. The production version is linked to the Cost Collector through the Production Process number. at the beginning of the period. the process involves creation of a preliminary cost estimate for the cost collector. This Production P rocess number is updated in the manufacturing orders assigned to the Product Cost Collector. The Controlling link is established because the system picks the Planned and Actual Costing Variants from the Order Type. 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.R materials are maintained at Moving Average Price. packing cost and Conversion cost. The Inventory will be valuated at Standard price. a separate Cost Collector is defined for the Production version. Process: T Code KKF6N is used for creating the P roduct Cost Collector. Thus.5.BOTTLES. The activity quantities that are to be confirmed are defaulted on the basis of the routing Used for the preliminary cost estimate.confidential Page 74 of 86 . The Conversion cost would get picked up from the Planned Activity price maintained and Overhead costing sheet.

5 PERIOD END CLOSING FOR BOTH REPETITIVE MANUFACTURING AND DISCRETE MANUFACTURING PROCESSES As part of Period End Activities the following activities would happen: 1. Since the settlement rule is auto generated the scrap is also posted in sequence and there is no separation of scrap from variance.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . WIP means all debits Minus Credits of a production order. The order could be triggered by the T Code MFBF. Another characteristic of discrete manufacturing is the varying sequence of work centers through which different products flow during production. WIP would be calculated only for Open Production Orders. Process: Creation of Production Order.7. at which location. Goods receipt against production order. Issue materials against production order. manufacturing with production orders) typically involves frequently changing products and therefore manufacturing in restricted production lots. 11. In SAP. Discrete manufacturing will be used for production of Molten Glass. Sand and Polythene. 11. Discrete Manufacturing: WIP gets calculated through a standard transaction.The Costing Sheet is picked from the valuation variant from the Costing variant. So with all these links the standard costing estimate could be run for the materials.7. Work in Process Calculation: Repetitive manufacturing: There would not be any WIP. at what time and how much work is required. Production Orders: A Production order defines which material is to be processed. It also defines which resources are to be used and how the order costs are to be settled. This ensures that the same Costing sheet is used in preliminary costing and actual overhead calculation.e. Mould Manufacturing. SAP ECC 6. With backflush the materials are issued to production and the finished goods posted to warehouse.5. Confirm production order.SEMIFINISHED PRODUCTS Discrete manufacturing (i.confidential - Page 75 of 86 .4 DISCRETE MANUFACTURING PROCESS .5.

R epetitive Manufacturing only P eriodic Settlement is allowed for the R Schedule Header (once a cost collector un has been settled. 3.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . Discrete Manufacturing is allowed two settlement methods: Full Settlement and Periodic Settlement. the books are not going to be balanced. This means that whatever costs remaining in the production orders are passed to FI.2. 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. Settlement is a financial transaction.confidential - Page 76 of 86 . 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. it cannot be re-processed for the period). If the settlement is not run. 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.

Profit Center Accounting is a statistical accounting component in the SAP system. PCA integrates with CO through its controlling area / company code relationships. You can use a transfer price to valuate goods movements between profit centers. 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. independent areas within an organization. profit centers are proposed on the basis of Process. Profit Center Accounting (PCA) helps in analyzing and to report internal profitability for an organization. A dummy profit center GGC Dummy has been created. SAP ECC 6.5. For GGC. The cost centers are linked to profit centers. Dummy Profit Center: The dummy profit center is updated in data transfers whenever the object to which the data was originally posted (cost center. The hierarchy is displayed in the annexure. A transfer price is a price used to valuate the transfer of a good or service between independently operating units of an organization.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).11. Transfer Pricing Concept Profit centers are responsible for their own costs and revenues and are treated as independent units within the legally independent company. Profit Center Accounting evaluates the profit or loss of individual. These areas are responsible for their costs and revenues.confidential - Page 77 of 86 . internal order. Profit Centre Hierarchy No information available. This is used by the system when there is no profit center assignment even though the field is made mandatory. The data in the dummy profit center can be sent to the other profit centers using assessment or distribution.0 Business Blueprint for GGPL Controlling Module Hewlett-Packard . This ensures that the data in Profit Center Accounting is complete. just like independent companies. They are judged by their profit or loss. This means that it takes place on a statistical basis at the same time as true accounting. and so on) is not assigned to a profit center.

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

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

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

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

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

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

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

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

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11.6

REPORTS
CONTROLLING

SANDARD REPORTS AVAILABE IN SAP

S.No.

Description Cost Center:

Selection criteria

Output

01

Actual/Plan/Variance (S_ALR_87013611) Cost Center:

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

02

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

03

Actual/Plan/Variance (S_ALR_87013612) Cost Center:

04

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

Fiscal

Quarterly comparison

05

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

Fiscal

Fiscal year comparison

06

Variances (S_ALR_87013627) Cost Center:

Controlling area, period, Cost center(s)

Variance

07

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

List of all actual line items affecting the cost center

08

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

L of all plan line items affecting ist the cost center

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

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

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

Actual values of period 1 to N

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

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

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

AR / AP profit center wise

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

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17

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

Concern,

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

18

Concern,

19

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

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0 Business Blueprint for GGPL Controlling Module Hewlett-Packard .7 GAPS The requirements are NOT in place.confidential - Page 86 of 86 . Hence GAPS could not be prepared.11. SAP ECC 6.

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