TFIN22_2

Management Accounting II
mySAP ERP Financials

Date Training Center Instructors Education Website

Participant Handbook
Course Version: 2006/Q2 Course Duration: 2 Days Material Number: 50080906

An SAP course - use it to learn, reference it for work

Copyright
Copyright © 2006 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

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About This Handbook
This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study.

Typographic Conventions
American English is the standard used in this handbook. The following typographic conventions are also used. Type Style Example text Description Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths, and options. Also used for cross-references to other documentation both internal (in this documentation) and external (in other locations, such as SAPNet). Example text EXAMPLE TEXT Emphasized words or phrases in body text, titles of graphics, and tables Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example SELECT and INCLUDE. Screen output. This includes file and directory names and their paths, messages, names of variables and parameters, and passages of the source text of a program. Exact user entry. These are words and characters that you enter in the system exactly as they appear in the documentation. Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

Example text

Example text

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iv © 2006 SAP AG. Icon Meaning For more information. 2006/Q2 . All rights reserved.About This Handbook TFIN22_2 Icons in Body Text The following icons are used in this handbook. tips. or background Note or further explanation of previous point Exception or caution Procedures Indicates that the item is displayed in the instructor's presentation.

.................................. 111 Appendix 1: Appendix ....................................................................... 16 Unit 2: Master Data ..................vii Unit 1: Structures ................................. v .......106 Transfer of Overhead.............................Contents Course Overview .......................................... vii Course Goals .2 Data Structures................... 67 Unit 3: Actual Data.......vii Course Objectives ..................................................... 147 Index ....................................... 1 Overview of Operating Concern ................................................... 44 Characteristic Derivation ....................................... 181 2006/Q2 © 2006 SAP AG........................................................... 43 Introduction to Characteristic Derivation and Valuation .......................................................................................................................................................... All rights reserved.......................... 105 Flow of Actual Data ................ 48 Valuation ...................................................................

Contents TFIN22_2 vi © 2006 SAP AG. All rights reserved. 2006/Q2 .

Course Overview
This course describes the functions in Profitability Analysis and outlines how to implement the component. It covers how to set up the structures of an operating concern and characteristic derivation and valuation. In addition, it explains how the flow of actual values from the SD, FI, and CO modules works. It also examines how to create planning layouts, reports, and report forms.

Target Audience
This course is intended for the following audiences: • • • Project team members from the Management Accounting departments Database administrators Project team members from the Sales and Marketing departments

Course Prerequisites
Required Knowledge
• • • AC040 Business Processes and Controlling Basic knowledge and experience in cost accounting Good working knowledge of the Microsoft Windows operating environment

Recommended Knowledge
• SAP01 - SAP Overview

Course Goals
This course will prepare you to: • • • • • • Understand the functions in Profitability Analysis and obtain an insight on how to implement the component Explain Profitability Management in an SAP system Work with CO-PA structures and master data Identify the sources of actual values Execute planning Use the Information System and work with the additional functions in CO-PA

Course Objectives
After completing this course, you will be able to:

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Course Overview

TFIN22_2

• • • •

Understand the functions in Profitability Analysis and obtain an insight on how to implement the component Set up the structures of an operating concern and examine characteristic derivation and valuation Explain how the integration works between Sales Order Management, Financial Accounting, and Management Accounting Create planning layouts, reports, and report forms

SAP Software Component Information
The information in this course pertains to the following SAP Software Components and releases:

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© 2006 SAP AG. All rights reserved.

2006/Q2

Unit 1
Structures
Unit Overview
This unit introduces you to the organizational structures from a Profitability Analysis perspective. It helps you to know the data structures used within Profitability Analysis. It explains the CO-PA characteristics and value fields and the possibilities that the system offers to define these data structures.

Unit Objectives
After completing this unit, you will be able to: • • • • • • Describe the various organizational units Understand the basic concepts, characteristics and value fields, of an operating concern Define an operating concern and its attributes Define data structures Identify transaction data structures Describe the CO-PA database structures and the operating concern templates

Unit Contents
Lesson: Overview of Operating Concern .......................................2 Exercise 1: Operating Concerns .......................................... 11 Lesson: Data Structures ........................................................ 16 Exercise 2: Data Structures ................................................ 25 Exercise 3: Maintain the Operating Concern ............................ 31

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and value fields of an operating concern. you will be able to: • • • Describe the various organizational units Understand the basic concepts. Actual period costs (S. 2 © 2006 SAP AG. For this purpose. production variances. G. it covers the concepts. and A) for the various organizational entities are to be reflected at the month-end. and period cost information is required for the various market segments. As a member of the project team. you need to identify the operating concern. of an operating concern Define an operating concern and its attributes Business Example The management of your company wants to implement a profitability accounting application in the SAP system. cost-of-sales information. Both cross-company and company-specific reporting of contribution margins is required in multiple currencies. Multidimensional analysis of sales information. You then will be responsible to implement the selected applications. Lesson Objectives After completing this lesson. You also need to understand the concept of characteristics and value fields. which represents a sales and marketing reporting unit for a corporation. characteristics. It also defines an operating concern and its attributes. In addition. All rights reserved. 2006/Q2 . Estimated costs are required for the actual costs posted only at the month-end.Unit 1: Structures TFIN22_2 Lesson: Overview of Operating Concern Lesson Overview This lesson describes the various organizational units. you are supposed to advise on the question of whether to implement CO-PA or EC-PCA in the SAP system. Analytics by value category and by income statement account is required. characteristics and value fields.

It defines the extent of the marketing and sales information that can be reported in combination by this component. corporations have only a single operating concern. One or more controlling areas are assigned to an operating concern when organizational structures are defined. 3 . The legal requirements of a balance sheet or a profit and loss statement are fulfilled on the company code level. The controlling area is an organizational unit delimiting the independent cost accounting operations of the organization. In most cases. All rights reserved.TFIN22_2 Lesson: Overview of Operating Concern Introduction to Organizational Units Figure 1: Organizational Units The operating concern is the key organizational unit within CO-PA. Plants are assigned to company codes when organizational structures are defined. It is the primary organizational unit in operations and manufacturing. The plant represents a production center. Mostly. and order accounting. Notice that a controlling area can also incorporate several company codes to take cross-company cost allocations into account. a 1:1 relationship exists between the company code and the controlling area. The company code is an independent accounting unit within a client. Company codes are assigned to controlling areas when organizational structures are defined. such as cost center accounting. profit center accounting. 2006/Q2 © 2006 SAP AG. which is recommended for the sake of simplicity and convenience if all controlling areas and company codes share the same fiscal calendar.

Value Fields • • Answer the question: What performance measures do I want to track and analyze? Examples: Gross Sales. Regions. 4 © 2006 SAP AG. Sales Rep Miller. Region North. Product Prod1. Characteristic Values • • Answer the question: What values can I have for these characteristics? Examples: Region South. Surcharges. Products. Cost-of-Sales. All rights reserved. Profitability Segments • • Answer the question: What is the technical definition of my sales channel? Examples: Combination of Region North. Customers.Unit 1: Structures TFIN22_2 Basic Concepts: Characteristics and Value Fields Figure 2: Basic Concepts of CO-PA Characteristics • • Answer the question: What do I want to report on? Examples: Divisions. 2006/Q2 . Discounts.

These are known as fixed characteristics. Create a characteristic independently. which must be five characters long or less. The field catalog originally contains some suggested characteristics which might be used in a new operating concern definition. you can decide whether the system should generate a check table for this. and product. the data that flows into CO-PA are checked.2005-2008 For Evaluation Only. up to 50 non-fixed non fixed characteristics can be added to an operating concern. there is potentially a check table with the valid characteristic values for CO-PA. TFIN22_2 Lesson: Overview of Operating Concern Figure 3: Categories of Characteristics Meaning of Characteristics Characteristics are the analytic dimensions of the Profitability Analysis. 2006/Q2 © 2006 SAP AG. When manually creating a new characteristic in the field catalog. customer. In this way. which should begin with WW and be four to five characters total.Edited by Foxit Reader Copyright(C) by Foxit Software Company. All rights reserved. such as sales organization. Characteristic maintenance in the field catalog: These non-fixed characteristics must be added to the field catalog before they can be used to define a new operating concern. Behind every characteristic. Several characteristics. 5 . In addition to the fixed characteristics. are predefined automatically for every operating concern. There are two ways to add other characteristics to the field catalog: • • Choose an existing field from certain SAP tables. The characteristics in the field catalog can be accessed in any client. They define what items or objects the user can evaluate.

you can copy the fields from the tables for the customer master records. Newly defined characteristics: You can create ones that are only required in Profitability Analysis. Predefined characteristics: In addition to the fixed characteristics. company code. if required. and sales order characteristics. material master records. You can also copy the partner roles defined in the structure. 2006/Q2 . All rights reserved. a number of other predefined characteristics are available in the field catalog and can be added to your operating concern. and country characteristics.Unit 1: Structures TFIN22_2 Figure 4: Categories of Characteristics in Detail Characteristics can be categorized according to how and when they are defined: • Characteristics transferred from SAP tables: You can use characteristics that already exist in other applications when you define your operating concerns. SD. you need to define your own derivation strategy. billing type. and sales documents. Fixed characteristics: A number of fundamental characteristics are automatically predefined in every operating concern. application as characteristics in Profitability Analysis. • • • 6 © 2006 SAP AG. These include the product number. PAPARTNER. customer district. business area. To derive the values for these characteristics. For example. These include the customer group. in the Sales and Distribution.

The value fields in the field catalog can be accessed in any client. Unlike characteristics. By comparison. Value fields can also be defined independently. This minimizes the necessary data storage requirements. The field catalog originally contains some suggested value fields. which might be used in a new operating concern. 7 . These should begin with VV. there are no fixed value fields for a new operating concern.. or highly detailed. such as representing just one part of a single cost element balance. 2006/Q2 © 2006 SAP AG. All rights reserved. • Value Field Maintenance in the Field Catalog • All value fields must exist in the field catalog before they can be used to define a new operating concern. revenue types.. surcharges) are normally presented in a very detailed way. all values are updated to accounts. such as representing a summary of cost element balances. value fields store the base quantities and amounts for reporting. • Fixed Basic Key Figures (Account-Based CO-PA only) • In account-based Profitability Analysis. discounts. Each amount is stored in up to three different currencies under fixed basic key figures.g. The sales-related key figures (e. Value fields can either be highly summarized. items based on periodic costs (for example.TFIN22_2 Lesson: Overview of Operating Concern Figure 5: Categories of Value Fields Meaning of Value Fields • In costing-based Profitability Analysis. You do not need to create the value fields for calculated items.. which are accessed in reporting. such as net sales and contribution margin. and should be four to five characters in total. period cost types) are aggregated. These items are normally calculated from the base values stored in the value fields during the report execution progress.

Defining an Operating Concern and its Attributes Figure 7: Steps in Defining an Operating Concern 8 © 2006 SAP AG. AVG (average) and LAS (last) in CO-PA drill-down reports. 2006/Q2 . You define these value fields when you define the data structures for Profitability Analysis.Unit 1: Structures TFIN22_2 Figure 6: Value Fields With New Time Aggregation Rules You can use value fields with the aggregation rules. All rights reserved.

In costing-based Profitability Analysis. It allows you to avoid differences due to different exchange rates and enables you to reconcile your CO-PA data directly with FI. you also need to select the value fields you want to use. Company code currency. All rights reserved. valuation view.TFIN22_2 Lesson: Overview of Operating Concern You define the structure of your operating concern when you set up your system.In addition to the operating concern currency. Profit center valuation In addition to storing data in these two currencies using the legal company code. They have different effects. Fiscal year variant 2006/Q2 © 2006 SAP AG. 9 . This is done by selecting the characteristics you want to use in the data structures of the operating concern. you have the option of storing all data in the currency of the relevant company code. the actual data is always updated in the operating concern currency. You can change the operating concern currency as long as no data has been posted in the operating concern. The structure of an operating concern is valid in all clients. Currency types Operating concern currency. Figure 8: Defining Operating Concern and Attributes The attributes are client-specific parameters of an operating concern. you can also store data in both of these currencies valuated from the viewpoint of individual profit centers. depending on the type of Profitability Analysis you are working in. In costing-based Profitability Analysis. This makes sense if your organization operates internationally and is concerned with exchange rates that change daily.

and each company code assigned to each of the controlling areas. Because each controlling area assigned to the operating concern. can have its own fiscal year variant.Unit 1: Structures TFIN22_2 The fiscal year variant determines the number of posting periods for each fiscal year. 2006/Q2 . 10 © 2006 SAP AG. All rights reserved. the variant you choose for the operating concern must agree with that for the other areas.

For this reason. The sales managers require summarized sales performance figures. and the United States. product lines. All rights reserved. Describe the options available for the organizational structures for CO-PA. 11 . Task 1: 1. you will be able to: • Describe the organizational structures relevant for Profitability Analysis • Summarize the types of Profitability Analysis in the SAP system Business Example The group has legal entities in Germany. Select the reporting date for the previous year. and customers. Check the basic settings and organizational assignments for the IDEA operating concern using the Customizing Monitor. such as revenue.TFIN22_2 Lesson: Overview of Operating Concern Exercise 1: Operating Concerns Exercise Objectives After completing this exercise. discounts. They also need to view sales and marketing costs along these lines. it must be able to report sales and profitability both across the corporation in a group currency and in each of the legal entity’s local currency. Italy. and surcharges both along and across the lines of the sales structure. Continued on next page 2006/Q2 © 2006 SAP AG. Obtain an overview of the order situation with regard to sales characteristics. 1. Is the controlling area 1000 assigned to the IDEA operating concern? Does the IDEA operating concern have the same fiscal year variants as the controlling area 1000? Does the assigned Company Code 1000 also have the same fiscal year variant? What chart of accounts do the controlling area and the Company Code have? Task 2: Call the profitability report AC605-ORDER (order analysis) in the costing-based Profitability Analysis.

Unit 1: Structures TFIN22_2 Task 3: Call the profitability report AC605-ECPCA (Profit Center) in the costing-based Profitability Analysis. All rights reserved. Profit Center Strategic Business Unit Company Code 12 © 2006 SAP AG. 1. Select the reporting date for the previous year with a plan version. 2006/Q2 . Obtain an overview of the actual data with regard to sales characteristics.

detailed information from the respective master data are also displayed.TFIN22_2 Lesson: Overview of Operating Concern Solution 1: Operating Concerns Task 1: 1. All have the same fiscal year variant. Continued on next page 2006/Q2 © 2006 SAP AG. 13 . All assigned organizational units are listed in the overview of the organizational structures of the operational concern. Is the controlling area 1000 assigned to the IDEA operating concern? Does the IDEA operating concern have the same fiscal year variants as the controlling area 1000? Does the assigned Company Code 1000 also have the same fiscal year variant? What chart of accounts do the controlling area and the Company Code have? a) Use the following shortcut to display the IMG: IMG – Controlling – Profitability Analysis – Tools – Analysis – Check Customizing Settings. Expand to the IDEA operating concern. Controlling area 1000 is assigned. Controlling Area and Company Code have the same chart of accounts. The Company Code 1000 is also assigned to the controlling area 1000. Check the basic settings and organizational assignments for the IDEA operating concern using the Customizing Monitor. All rights reserved.

1. Obtain an overview of the actual data with regard to sales characteristics. reporting is done here according to cost of sales accounting. Obtain an overview of the order situation with regard to sales characteristics.Unit 1: Structures TFIN22_2 Task 2: Call the profitability report AC605-ORDER (order analysis) in the costing-based Profitability Analysis. The difference represents the incoming sales orders = order balance still to be processed. differentiated according to strategic business units. Select the reporting date for the previous year with a plan version. All rights reserved. Execute AC605 – ORDER order using F8 or via Report – Execute. a) SAP menu → Accounting → Controlling → Profitability Analysis → Information System → Execute Report If required. set the costing-based Profitability Analysis via SAP menu → Accounting → Controlling → Profitability Analysis → Environment → Set Operating Concern. position values are not presented in CO-PA. Profit Center Strategic Business Unit Company Code a) SAP Menu → Accounting → Controlling → Profitability Analysis → Information System → Execute Report Execute the AC605 – ECPCA report using F8 or via Report – Execute. 2006/Q2 . The report contains the data on incoming sales orders or revenue. The report contains the data accumulated according to Profit Center. You can evaluate the prorated incoming sales orders or turnover. However. Select the reporting date for the previous year. 14 © 2006 SAP AG. distribution channels and divisions using the assigned characteristics. 1. sales organizations. Task 3: Call the profitability report AC605-ECPCA (Profit Center) in the costing-based Profitability Analysis.

TFIN22_2 Lesson: Overview of Operating Concern Lesson Summary You should now be able to: • Describe the various organizational units • Understand the basic concepts. of an operating concern • Define an operating concern and its attributes 2006/Q2 © 2006 SAP AG. All rights reserved. characteristics and value fields. 15 .

You will be responsible to implement the selected applications. production variances. you are supposed to advise on the question of whether to implement CO-PA or EC-PCA in the SAP system. Estimated costs are required for the actual costs posted only at the month-end. It also covers the CO-PA database structures and the operating concern templates. you need to understand the operating concern. and period cost information is required for various market segments. As a member of the project team of your company. you will be able to: • • • Define data structures Identify transaction data structures Describe the CO-PA database structures and the operating concern templates Business Example The management of your company wants to implement a profitability accounting application in the SAP system. 2006/Q2 . G. Lesson Objectives After completing this lesson. Actual period costs (S. All rights reserved. data structures. Both cross-company and company-specific reporting of contribution margins is required in multiple currencies. The multidimensional analysis of sales information.Unit 1: Structures TFIN22_2 Lesson: Data Structures Lesson Overview This lesson defines data structures and identifies the transaction data structures. For this purpose. 16 © 2006 SAP AG. cost-of-sales information. and segment level and non segment level characteristics. Reporting by value category and by income statement account is required. and A) for various organizational entities are to be reflected at the month-end.

reactivate the environment after you add a new characteristic or a value field. After you generate the operating concern and before you activate Profitability Analysis for data entry. and technical objects required to support the operating concern you have defined. you must activate them and generate the operating environment. This process generates all the tables. Changing the Data Structures You must reactivate the environment after you change the data structures of an operating concern. programs. 17 . For example. Activating the Environment (up to 4.6B Generation) After you have defined the attributes and data structures of an operating concern. 2006/Q2 © 2006 SAP AG. copy the required characteristics and value fields to the operating concern and save them. add the valid characteristic values to the check tables generated for the new characteristics. The regeneration process does not affect any existing transaction data. All rights reserved.TFIN22_2 Lesson: Data Structures Defining Data Structures Figure 9: Operating Concern Data Structures Defining Data Structures To define data structures. Notice that it also does not automatically back-populate any new fields for existing transaction data although this sometimes may be carried out using the CO-PA realignment or periodic valuation functions.

which represent the account assignment objects for profitability analysis. 18 © 2006 SAP AG. 2006/Q2 . All rights reserved. The definitions of profitability segments for both CO-PA sub modules are stored in the same table. This means that its data will affect the execution speed of reports for other CO applications that share the same transaction data tables. This means that its data will never affect the execution speed of a report in another CO application. where XXXX = operating concern. CE4XXXX. Profitability segments. Account-based CO-PA stores its transaction data in the transaction data tables for Overhead Cost Management.Unit 1: Structures TFIN22_2 The regeneration process will not affect any characteristic values that have already been entered in check tables for user-defined characteristics. which are created when activating and generating the operating concern. Transaction Data Structures Figure 10: CO-PA Transaction Data Structures (1) Costing-based CO-PA stores its transaction data in its own data tables. The system always accesses this segment definition table when posting the transaction data for costing-based or account-based CO-PA. are unique combinations of characteristic values that the system creates and numbers automatically from the information in the originating transactions.

. tables can be accessed through line item display features........ 19 . Line item data and the information from the CE1. The CO-PA drill-down reporting tool accesses the data in the CE3. both actual and plan.. tables. and CE2. All rights reserved. and CE4. 2006/Q2 © 2006 SAP AG. and CE4...TFIN22_2 Lesson: Data Structures Figure 11: CO-PA Transaction Data Structures (2) The CE3. for costing-based Profitability Analysis. tables work effectively together to store the summarized transaction information..

The characteristics are stored in the data division of the table. CE4xxxx. CE3xxxx = 2000 bytes. The table. The key of the CE4xxxx basically consists of the profitability segment number that is used as a join field for the table. CE3xxxx. Typical record lengths: CE4xxxx = 250 bytes. CE3xxxx. The key of the table. 20 © 2006 SAP AG. The value fields are specified in the data division. The table. contains the values posted to the profitability segments that are additionally available broken down into the posting period. CE3xxxx. 2006/Q2 . represents the profitability segments. consists of the profitability segment number and the posting-period and some other technical fields that are not listed. All rights reserved.Unit 1: Structures TFIN22_2 CO-PA Database Structures Figure 12: CO-PA Database Structures The data of CO-PA is divided into characteristics and value fields. CE4xxxx. created based on the business considerations that are defined when an operating concern is created.

it is not necessary to save a new totals record in the object level (CE3) for every line item that is created during the transfer from the SD. SAP recommends that data be summarized on a higher level. something other than the customer or product level. Certain fixed characteristics are generally not used at object level. The impact of this is that the values for these non-segment-level characteristics will appear on CO-PA line items but will not be available for reporting with the CO-PA drill-down reporting tool. However.TFIN22_2 Lesson: Data Structures Segment Level and Non-Segment Level Characteristics Figure 13: Segment-Level Characteristics For reasons of performance. we recommend that the number of profitability segments be kept as low as possible so that the quantity of the totals records required in the profitability segment also remains low. You can to configure the system so that certain characteristics are not used in defining profitability segments. This would create as many summary records as line items. this can be changed if required. 2006/Q2 © 2006 SAP AG. This is because its transaction data is stored in the tables that are shared with other Management Accounting applications. For example. you must have access to the number of the order that has occurred in SD in every CO-PA line item (CE1). 21 . All rights reserved. for account-based CO-PA to minimize the number of summary records. You can achieve this by restricting the selection of characteristics for the profitability segment. However. You can individually adjust the characteristics that have been used or not used at object level and make different settings for the costing-based and account-based profitability analysis.

S_AL: Template for Route Profitability. 2006/Q2 . 22 © 2006 SAP AG. Operating concern templates offer the following advantages: They enable you to gain an insight into Profitability Analysis as a demonstration. All rights reserved. you can adjust your Customizing settings for an operating concern template as required. The operating concern templates simplify the Customizing in the profitability analysis. predefined sample operating concerns.Unit 1: Structures TFIN22_2 Operating Concern Templates Figure 14: Operating Concern Templates CO-PA provides you with operating concern templates. copy these and then use the copied and adjusted operating concern productively. without your having to perform extensive Customizing. S_CP: Consumer Goods Industry Template. make changes to the Customizing settings. This means that you can use the templates as a basis for quickly calling up reports. an environment in which to display the Customizing for these operating concern. and copy them. S_GO: Cross Industry Template. If necessary.

You can find this function under “Tools”. 2006/Q2 © 2006 SAP AG. you first have to copy it. To do this. The template for the consumer industry is loaded automatically. The system fills them with example data to demonstrate more clearly how the application works. The details view provides you with an overview of the delivered settings and of the modifications that you can make. you can customize these operating concern templates. operating concerns that have already been preset are available. Start the transaction for operating concern templates. You can delete the example data later.TFIN22_2 Lesson: Data Structures Figure 15: Quickstart Use SAP Operating Concern Templates. Further. allowing Profitability Analysis to be quickly integrated into your productive system. All rights reserved. By choosing Application examples. If you want to use an operating concern template for your profitability analysis. This is where you can gain an initial overview of Profitability Analysis without the need to have any specialist knowledge and without the need to have made any settings previously. you can reset the templates to their original settings. This is also where you can choose to reset an operating concern template back to its initial state. At any time. you can view reports and planning layouts. 23 .

2006/Q2 . All rights reserved.Unit 1: Structures TFIN22_2 24 © 2006 SAP AG.

Fiscal Year. Controlling Area. Variable Production Costs. such as gross revenue. and technical fields: Customer. discounts. Sales District. product lines. Task 1: In the CO-PA settings menu. Cost Element. It does not include fixed characteristics or technical fields. The sales manager also wants to view sales and marketing costs along these lines. fixed (delivered) characteristics. Assign the list of items in 2-2 to the following groups: 1. non-fixed characteristics. and the characteristics selected from the reference tables.TFIN22_2 Lesson: Data Structures Exercise 2: Data Structures Exercise Objectives After completing this exercise. Note: The overview list contains all user-defined characteristics. Which characteristics are non-fixed characteristics? Continued on next page 2006/Q2 © 2006 SAP AG. and surcharges both along as well as across the lines of the sales structure. you will be able to: • Understand the concepts of value fields and characteristics • Evaluate the different sources of characteristics • Explain the settings available for value fields Business Example The following requirements apply for the value fields and characteristics needed for profitability reporting in your organization: Your sales manager requires summarized sales performance figures. 1. determine which of the following items are value fields. default characteristics. All rights reserved. Sales Organization. In the data structures of the operating concern. Price Reduction. Posting Date. 2. display all defined characteristics. Customer Discount. Revenue. 25 . and customers of the company. and Number of Employees. What is the table of origin for the Customer Class characteristic? What is the check table for the Sales District characteristic? Task 2: Based on the requirements of your project team defined in the company scenario. Profit Center. Material Group. you determine that the following characteristics and value fields are required for reporting. Customer Group.

2006/Q2 . 5. 4. Which characteristics are fixed characteristics? Which fields are technical fields? Which fields are value fields? What are the aggregation settings for the Number of Employees value field? Why may you decide to use this field? Display the Strategic Business Unit characteristic. 3. Is the characteristic grouped with another characteristic? Why and with what consequences? 26 © 2006 SAP AG.Unit 1: Structures TFIN22_2 2. What type of characteristic is the Strategic Business Unit? Display the REGIO (Region) characteristic. 7. All rights reserved. 6.

The check table is T171. determine which of the following items are value fields. display all defined characteristics. Posting Date. Profit Center. It does not include fixed characteristics or technical fields. non-fixed characteristics. Controlling Area. Fiscal Year. Note: The overview list contains all user-defined characteristics. Assign the list of items in 2-2 to the following groups: 1. Material Group. All rights reserved. Cost Element. and Sales District. In the data structures of the operating concern. Which characteristics are non-fixed characteristics? a) IMG → Controlling → Profitability Analysis → Structures → Define Operating Concern → Maintain Characteristics Select Display All Characteristics and Choose Display Customer Group. and the characteristics selected from the reference tables.TFIN22_2 Lesson: Data Structures Solution 2: Data Structures Task 1: In the CO-PA settings menu. Search for the characteristic “KUKLA” (customer classification) 2. Material Group. Variable Production Costs. 27 . Price Reduction. and Sales Organization. 2. Sales Organization. Continued on next page 2006/Q2 © 2006 SAP AG. Task 2: Based on the requirements of your project team defined in the company scenario. What is the table of origin for the Customer Class characteristic? a) IMG → Controlling → Profitability Analysis → Structures → Define Operating Concern → Maintain Characteristics Set the indicator for “all characteristics”. default characteristics. and Number of Employees. Revenue. What is the check table for the Sales District characteristic? a) Select: BZIRK and Details. Sales District. Controlling Area. you determine that the following characteristics and value fields are required for reporting. and technical fields: Customer. Customer Group. fixed (delivered) characteristics. 1. Which characteristics are fixed characteristics? a) Extras → Fixed Fields Customer. Customer Discount. Profit Center.

6. Variable Production Costs.Unit 1: Structures TFIN22_2 3. Customer Discount. Which fields are technical fields? a) a) Posting Date. Display the REGIO (Region) characteristic. of Employees and Detail. The aggregation rules. What type of characteristic is the Strategic Business Unit? a) IMG → Controlling → Profitability Analysis → Structures → Define Operating Concern → Maintain Characteristics Select All Characteristics → Display Select the strategic business unit WWSBU and then Detail: User-defined field with 8 characters. LAS (AVG and SUM also possible). Is the characteristic grouped with another characteristic? Continued on next page 28 © 2006 SAP AG. 4. Fiscal Year. Number of Employees Which fields are value fields? 5. when the most recent or average value is required instead of the sum. non-cumulative values in value fields. Price Reduction. and Cost Element IMG → Controlling → Profitability Analysis → Structures → Operating Concern → Maintain Value Fields Select All Value Fields → Display Revenue. 7. This means the aggregation rule is SUM. All rights reserved. 2006/Q2 . What are the aggregation settings for the Number of Employees value field? Why may you decide to use this field? a) Select No. are useful only for representing statistical. Last value and Average. Period values are normally added together in the Information System and in Profitability Analysis (CO-PA) planning. Display the Strategic Business Unit characteristic.

when saving data next to the region. click: Show compound characteristic The REGIO characteristic is grouped with the COUNTRY characteristic. even if you have only assigned the REGIO characteristic to the report. By double-clicking the check table T005S for the REGIO characteristic. The result is that. Select the characteristic REGIO (not Region before Rel. 4. semantic meaning. because region without country does not have a clear. This takes into consideration that the table for maintaining the master data values for the REGIO characteristic is also maintained for the COUNTRY characteristic. the country is also saved. 29 . 2006/Q2 © 2006 SAP AG. All rights reserved. the country is also displayed. the assignment of the country characteristic becomes visible as part of the selection.TFIN22_2 Lesson: Data Structures Why and with what consequences? a) IMG → Controlling → Profitability Analysis → Structures → Define Operating Concern → Maintain Characteristics Select : Display All Characteristics.5) and. When you call a report. in the detailed display.

All rights reserved.Unit 1: Structures TFIN22_2 30 © 2006 SAP AG. 2006/Q2 .

1. Which of these characteristics are selected for the operating concern? Your product manager has requested that the following value fields be made available in the operating concern: Sales Order Quantity. you will be able to: • Determine the attributes of the operating concern • Add characteristics and value fields to the operating concern Business Example You need reports in both the group and company currency because your organization conducts business in foreign countries. Customer. IDEA. Scrap. Your sales manager and product manager ask you which data fields you specifically require for reporting. All rights reserved. What settings are configured? What is the fiscal year variant for IDEA? Task 2: Data Structures of the Operating Concern Your sales manager has asked you to check which of the following characteristics are active for the operating concern: Material Group. 2. Display the currency settings for the operating concern. 2. 31 .TFIN22_2 Lesson: Data Structures Exercise 3: Maintain the Operating Concern Exercise Objectives After completing this exercise. Marketing Projects Which of these value fields are configured for the operating concern? Continued on next page 2006/Q2 © 2006 SAP AG. Task 1: Attributes of the Operating Concern You have decided to use both company code and operating concern currencies in costing-based PA. Postal Code 1.

2006/Q2 . All rights reserved. Are own profitability segments formed on the “IDEA” operating concern for the characteristics ORDER or SALES ORDER ITEM? When data are posted into the costing-based and account-based IDEA profitability analysis for 3 different products. 2. account-based profitability analysis? Task 4: 1.Unit 1: Structures TFIN22_2 Task 3: 1. how many data records are posted in the costing-based. IDEA? Why could this information be important? 32 © 2006 SAP AG. What is the status of the operating concern.

Display the currency settings for the operating concern. What is the fiscal year variant for IDEA? a) What is the fiscal year variant for IDEA? K4. What settings are configured? IMG → Controlling → Profitability Analysis → Structures → Define Operating Concern → Maintain Operating Concern: 'Attributes' tab Operating Concern Currency: EURO Company Code Currency: selected OpConCurrency. Display the currency settings for the operating concern. IDEA. 1. All rights reserved. Calendar Year + 4 special periods Continued on next page 2006/Q2 © 2006 SAP AG. PrCtr-Valuation: selected CompCodeCurrency. 33 .TFIN22_2 Lesson: Data Structures Solution 3: Maintain the Operating Concern Task 1: Attributes of the Operating Concern You have decided to use both company code and operating concern currencies in costing-based PA. What settings are configured? a) You have decided to use both company code and operating concern currencies in costing-based PA. PrCtr-Valuation: selected 2. IDEA.

Scrap. Which of these value fields are configured for the operating concern? IMG → Controlling → Profitability Analysis → Structures → Define Operating Concern → Maintain Operating Concern Choose Display and select the Value Fields tab on the Data Structure tab. Scrap. and Postal Code Which of these characteristics are selected for the operating concern? IMG → Controlling → Profitability Analysis → Structures → Define Operating Concern → Maintain Operating Concern Choose → Display and then select the Characteristics tab on the Data Structure tab. To display the fixed characteristics select Extras → Display Fixed Fields). Sales Order Quantity. Which of these characteristics are selected for the operating concern? a) Data Structures of the Operating Concern Your sales manager has asked you to check which of the following characteristics are active for the operating concern: Material Group. Your product manager has requested that the following value fields be made available in the operating concern: Sales Order Quantity. Postal Code 1. Customer (fixed characteristic) 2. Customer. Marketing Projects Which of these value fields are configured for the operating concern? a) Your product manager has requested that the following value fields are available in the operating concern: Ordered Quantity. Scrap. All rights reserved. and Marketing Activities. Material Group.Unit 1: Structures TFIN22_2 Task 2: Data Structures of the Operating Concern Your sales manager has asked you to check which of the following characteristics are active for the operating concern: Material Group. Customer. 2006/Q2 . Marketing Activities. Continued on next page 34 © 2006 SAP AG. and Annual Rebates.

However. When data are posted into the costing-based and account-based IDEA profitability analysis for 3 different products. and attributes created. Activate. all data tables are active. IDEA? Why could this information be important? a) What is the status of the operating concern. This would result in an error in any data transaction that affects the operating concern. Are own profitability segments formed on the “IDEA” operating concern for the characteristics ORDER or SALES ORDER ITEM? a) IMG → Controlling → Profitability Analysis → Structures → Define Profitability Segment Characteristics (Segment-Lvl Characteristics) No profitability segments are formed for the characteristics Order and Sales Order Item. What is the status of the operating concern. All rights reserved. only 1 totals record is updated in the account-based profitability analysis by comparison. or Generate have been left out. The line item report and the profitability report based on line items are available for this. Task 4: 1. IDEA? Why could this information be important? IMG → Controlling → Profitability Analysis → Structures → Define Operating Concern → Maintain Operating Concern: 'Environment' tab Status = Active This means that the environment of the operating concern has been generated. 2006/Q2 © 2006 SAP AG. account-based profitability analysis? a) As the PRODUCT characteristic was only excluded for the account-based profitability analysis. The reason may have to do with the different information requirements of the users in the account-based or costing-based profitability analysis. how many data records are posted in the costing-based. If any of the steps. Save. when updating • • in the costing-based profitability analysis per product. 2.TFIN22_2 Lesson: Data Structures Task 3: 1. 35 . this does not mean that the data cannot be evaluated according to these characteristics. no postings can be made to the tables of the operating concern.

All rights reserved. 2006/Q2 .Unit 1: Structures TFIN22_2 Lesson Summary You should now be able to: • Define data structures • Identify transaction data structures • Describe the CO-PA database structures and the operating concern templates 36 © 2006 SAP AG.

characteristics and value fields. 37 . All rights reserved.TFIN22_2 Unit Summary Unit Summary You should now be able to: • Describe the various organizational units • Understand the basic concepts. of an operating concern • Define an operating concern and its attributes • Define data structures • Identify transaction data structures • Describe the CO-PA database structures and the operating concern templates 2006/Q2 © 2006 SAP AG.

2006/Q2 . All rights reserved.Unit Summary TFIN22_2 38 © 2006 SAP AG.

TFIN22_2 Test Your Knowledge Test Your Knowledge 1. □ □ □ □ 5. such as “sales organization”. 4. Determine whether this statement is true or false. 6. 39 . In costing-based Profitability Analysis. are predefined automatically for every operating concern and are known as . Which of the following is the highest reporting level within CO-PA? Choose the correct answer(s). base quantities and amounts for reporting. the actual data is always updated in the company code currency. A B C D Operating concern Controlling area Company code Plant The characteristics. Fill in the blanks to complete the sentence. “and product”. Fill in the blanks to complete the sentence. “customer”. store the 3. □ □ True False 2006/Q2 © 2006 SAP AG. In costing-based Profitability Analysis. All rights reserved. What does a controlling area represent? 2. State the importance of the fiscal year variant in an operating concern.

Determine whether this statement is true or false. under Fill in the blanks to complete the sentence. Determine whether this statement is true or false. you need to copy the required characteristics and value fields to the operating concern. □ □ 8. 9. 40 © 2006 SAP AG. you first need to copy it using the copy function . To define data structures. and before you activate Profitability Analysis for data entry? 11. True False -based CO-PA stores its transaction data in its own data tables. If you want to implement an operating concern template as a template for your Profitability Analysis. Costing-based CO-PA stores its transaction data in the transaction data tables for Overhead Cost Management.Test Your Knowledge TFIN22_2 7. Fill in the blanks to complete the sentence. 2006/Q2 . State the advantages of operating concern templates. 10. which are created when activating and generating the operating concern. What must be done after you generate the operating concern. □ □ True False 12. All rights reserved.

For this reason. “and product”. Which of the following is the highest reporting level within CO-PA? Answer: A Operating concern is the highest reporting level within CO-PA. such as “sales organization”. profit center accounting. the actual data is always updated in the operating concern currency. “customer”. 2. are predefined automatically for every operating concern and are known as fixed characteristics. What does a controlling area represent? Answer: The controlling area is an organizational unit delimiting theindependent cost accounting operations of the organization. Answer: The fiscal year variant determines the number of posting periods for each fiscal year. the variant you choose for the operating concern must agree with that for the other areas. Each controlling area assigned to the operating concern and each company code assigned to each of those controlling areas can have its own fiscal year variant. Answer: False In costing-based Profitability Analysis. Answer: value fields 3. All rights reserved. 41 . The characteristics. 2006/Q2 © 2006 SAP AG. 5. In costing-based Profitability Analysis. 4. Company codes are assigned to controlling areas when organizational structures are defined. and order accounting. such as cost center accounting. In costing-based Profitability Analysis.TFIN22_2 Test Your Knowledge Answers 1. the actual data is always updated in the company code currency. Answer: fixed characteristics 6. State the importance of the fiscal year variant in an operating concern. value fields store the base quantities and amounts for reporting.

11. To define data structures. which are created when activating and generating the operating concern. All rights reserved. Answer: The advantages of operating concern templates are: 1. Costing-based CO-PA stores its transaction data in its own data tables. If you want to implement an operating concern template as a template for your Profitability Analysis. and before you activate Profitability Analysis for data entry? Answer: After you generate the operating concern and before you activate Profitability Analysis for data entry. 8. 2.Test Your Knowledge TFIN22_2 7. What must be done after you generate the operating concern. you need to copy the required characteristics and value fields to the operating concern. Costing-based CO-PA stores its transaction data in the transaction data tables for Overhead Cost Management. you can adjust your Customizing settings for an operating concern template as required. you first need to copy it using the copy function under Tools. copy these and then use the copied and adjusted operating concern productively. If necessary. Answer: Costing 9. The operating concern templates simplify the Customizing in the profitability analysis. 42 © 2006 SAP AG. copy the required characteristics and value fields to the operating concern and save them. Answer: False Account-based CO-PA stores its transaction data in the transaction data tables for Overhead Cost Management. 2006/Q2 . 12. They enable you to gain an insight into Profitability Analysis without the need to perform extensive Customizing. Answer: True To define data structures. you need to add the valid characteristic values to the check tables generated for the new characteristics. Answer: Tools 10. State the advantages of operating concern templates.

. 48 Exercise 4: Derivation .................. 67 Exercise 5: Valuation.... 81 2006/Q2 © 2006 SAP AG. you will be able to: • • • • • • • Explain the derivation concepts Explain the valuation concepts Explain the derivation strategy Evaluate derivation techniques Understand valuation using the product cost information Outline valuation using a CO-PA costing sheet Use the Customizing Monitor to perform valuation analysis Unit Contents Lesson: Introduction to Characteristic Derivation and Valuation .. 44 Lesson: Characteristic Derivation ........................................ In addition.................................. 57 Lesson: Valuation ....... It explains the derivation strategy and how to evaluate the derivation techniques............................. Unit Objectives After completing this unit..... it discusses valuation using product cost information and outlines valuation using a CO-PA costing sheet........ 43 .......................................................................... All rights reserved..........Unit 2 Master Data Unit Overview This unit discusses the concepts of derivation and valuation....

Here. they should be derived from the sold-to party. which is only determined via the product group. If not. Mrs. Schnell require profitability reports for many characteristics. The Product Costing module is being used. she requires profitability reports on the special characteristic Strategic Business Unit.). Mr. the state and country should first of all be determined from the goods recipient (if there is one for the CO-PA relevant transaction). you will be able to: • • Explain the derivation concepts Explain the valuation concepts Business Example The management of your company wants to implement a profitability accounting application in the SAP system. sold-to. Mrs. and Mrs.). some of which are available on the selling and invoicing transactions (the sales organization. Mr Cash. It also describes the concept of valuation.can be determined with sufficient accuracy. etc. and some of which are available only on master records (the product group. Veloce is familiar with the customer hierarchy that is defined in the Sales Order Management and insists on being able to report along the lines of that hierarchy even in the Profitability Analysis. Lesson Objectives After completing this lesson. price and cost information should be read by the system and automatically applied to the planned quantities. You then will be responsible to implement the selected applications.Unit 2: Master Data TFIN22_2 Lesson: Introduction to Characteristic Derivation and Valuation Lesson Overview This lesson helps you to understand the concept of characteristic derivation. for sales reports. requests that sales quantities be planned with regard to the material requirements in the profitability analysis. Udo requests that. As a member of the project team. Veloce.and thus the profit . These costs are not applied in a costing-based way in FI. 2006/Q2 . you are supposed to advise on the question of whether to implement CO-PA or EC-PCA in the SAP system. All rights reserved. so that the respective revenues and cost of sales . state. The true freight costs are not known at the time of invoicing but are known only at the period-end when the invoices have been received from the freight vendors. but are calculated in the profitability analysis. Mr. The detail 44 © 2006 SAP AG. product. Udo. who is responsible for company planning. etc. This is why Mrs Schnell was able to estimate the expected final result for her plant already before the end of the month. This special categorization of product groups is only used within CO-PA. In addition.

All rights reserved. Some derivation steps are created by the system at generation time. For this purpose. reactions when unsuccessful. It is merely a tool that can be used in an attempt to get the most complete and useful information out of CO-PA. – – Evaluation: Central Points • Some key points about valuation are: – Valuation supplements the data being passed directly from transactions into Controlling Profitability Analysis with calculated. in a sequence that can be customized. of which some are modifiable. A valuation strategy can contain CO-PA costing sheets. Others are created by the configurator from the beginning.TFIN22_2 Lesson: Introduction to Characteristic Derivation and Valuation results are to be imported into CO-PA so that true cost-of-sales can be analyzed extensively and different types of margins can be calculated and analyzed. Sales Order Management pricing procedures (in planning). and overwrite authority. – – – 2006/Q2 © 2006 SAP AG. such as conditions for execution. and user exit calls. an understanding about the characteristic derivation and valuation concepts is required. and plan versions when applicable to be activated. A derivation strategy is a sequence of steps. points of valuation. where each step uses one derivation technique to calculate one or more values for one or more characteristics. product costing calls. 45 . Characteristic Derivation: Central Points • Some keys point about derivation: – – Derivation supplements or overwrites certain automatically mapped characteristic values. such as the margin after fixed costs and the margin after all costs. Valuation strategies must be assigned to record types. Using valuation is optional. Control attributes can be assigned to each step. or otherwise accessed values. retrieved. respectively.

can be overwritten with derivation. In addition to those values determined through the automatic mappings. All CO-PA-relevant transactions are affected by derivation configuration. division. For each sales order management transaction. Notice that the values for all of these. customer. and any sales order management partners for each sales order or invoice item. profit center. it could supply the sales district from the invoice and the product group from the material master. such as characteristic values. billing) creates line items in CO-PA. For example. distribution channel. 2006/Q2 . For example. both on and off the originating transaction. which is optional. The data created in CO-PA are defined by automatic and manual assignments as well as the configuration of the characteristic derivation and the valuation.Unit 2: Master Data TFIN22_2 Example of Characteristic Derivation and Valuation Figure 16: Example: Example of the Characteristic Derivation and Valuation Every CO-PA relevant activity in the SAP system (for example. 46 © 2006 SAP AG. valuation can import information that is off of the originating transaction as well. business area. which is not available on the sales document. except customer and product. All rights reserved. product. it could supply in-depth product cost breakdown information from Product Costing. and some of these are affected potentially by valuation configuration. derivation can access additional information. In addition to the values imported through the manual mappings. the system automatically imports the sales organization.

All rights reserved. 47 .TFIN22_2 Lesson: Introduction to Characteristic Derivation and Valuation Lesson Summary You should now be able to: • Explain the derivation concepts • Explain the valuation concepts 2006/Q2 © 2006 SAP AG.

In addition. which is only determined via the product group. Veloce is familiar with the customer hierarchy that is defined in the Sales Order Management and insists on being able to report along the lines of that hierarchy even in the Profitability Analysis. for sales reports. for reporting. sold-to. they should be derived from the sold-to party. division. Udo. Product groups are to be categorized into special categories called ‘strategic business units’ for reporting. Schnell require profitability reports for many characteristics. Mrs. Mrs. Udo requests that. The customer hierarchy information is required for each business transaction (or simply „transaction") involving a customer. 48 © 2006 SAP AG. she requires profitability reports on the special characteristic “Strategic Business Unit”. the characteristic derivation strategy and techniques need to be used. All rights reserved.). some of which are available on the selling and invoicing transactions (the sales organization.). the state and country should first of all be determined from the goods recipient (if there is one for the CO-PA relevant transaction). product. distribution channel. The product group and product hierarchy information is required from the material master record. If not. This special categorization of product groups has meaning only within CO-PA. and Mrs. Mr. you will be able to: • • Explain the derivation strategy Evaluate derivation techniques Business Example The management of your company wants to implement a profitability accounting application in the SAP system. Veloce. As a member of the project team of your company. and product. 2006/Q2 . sales organization. etc. ship-to. Lesson Objectives After completing this lesson. As a result. The country and state are required from either the ship-to record or the sold-to record. sold-to. For this purpose. the information is required from each order/invoice item. you are supposed to provide advise on the question of whether to implement CO-PA or EC-PCA in the SAP system. In addition. it explains how to evaluate derivation techniques. Mr. and some of which are available only on master records (the product group. state. etc. You then will be responsible to implement the selected applications.Unit 2: Master Data TFIN22_2 Lesson: Characteristic Derivation Lesson Overview This lesson helps you to understand the derivation strategy.

The profitability segment is the account assignment object for the Profitability Analysis. All rights reserved. The total combination of (segment-level) characteristic values for a given transaction consists of the definition of the relevant profitability segment. 49 . Notice that derivation is not always successful. if the derivation strategy is complete. If the system cannot determine a characteristic value for a characteristic. the system tries to derive a characteristic value for each characteristic in the operating concern. or unassigned characteristic value is posted.TFIN22_2 Lesson: Characteristic Derivation Characteristic Derivation Concept Figure 17: Characteristic Derivation Concept For each CO-PA-relevant transaction. 2006/Q2 © 2006 SAP AG. then a blank. null.

The system automatically creates a standard derivation strategy for each operating concern.Unit 2: Master Data TFIN22_2 Derivation Strategy and Techniques Figure 18: Derivation from a Customizing Viewpoint A derivation strategy consists of a number of different steps. you need to add your own derivation steps to the standard strategy to define this derivation. If you define your own characteristics that need to be derived from other characteristics. which derive the different characteristic values. You can then change this strategy to meet the requirements of your organization. 50 © 2006 SAP AG. 2006/Q2 . All rights reserved. This strategy contains the derivation steps for all the dependencies that are already known between characteristics. Each derivation step defines the logical interrelationship between known source characteristics and the characteristics to be derived.

The values for one or more characteristics can be determined in a single step. clears. This step sequence is known as the derivation strategy. including direct entry into CO-PA and external data uploads into CO-PA.TFIN22_2 Lesson: Characteristic Derivation Figure 19: Options for Derivation Steps The system goes through a sequence of steps in attempting to locate a characteristic value for each characteristic for a COPA-relevant transaction. The steps are performed in a customizable sequence to maximize the possibilities to locate or determine valid characteristic values. The following items can be configured for each step: • • • • Conditions under which the step should be executed Whether or not initial values are allowed for source fields in a step Whether or not the step should overwrite an existing characteristic value Whether or not an error message should generate if the step is unsuccessful Each step normally represents one of the customizable derivation techniques. Note: For more information on customer exit functions. Derivation occurs for every CO-PA-relevant transaction. region. such as table lookups. moves. see the Appendix. 2006/Q2 © 2006 SAP AG. All rights reserved. derivation rules. product and customer hierarchies. and enhancements. 51 .

52 © 2006 SAP AG. such as division and profit center. at high levels.Unit 2: Master Data TFIN22_2 Figure 20: Standard Derivation of Organizational Units Certain characteristics. have fixed derivation steps. and customer. except for controlling area. nonmodifiable derivation. at other levels. product. 2006/Q2 . These have fixed. or at least enhance the possibility of reconciliation with data in other modules in the SAP system. This can be normally achieved with all characteristics. You can use other derivation steps to overwrite the values determined through the fixed derivation steps. company code. This means that the system automatically generates nonmodifiable steps that may be used to determine their values. These may take the form of one of the six standard derivation techniques or may be function calls. The system incorporates fixed derivation to force. All rights reserved.

an invoice may not contain the purchasing group for a material that is being sold. This is because the customer is the only key to the KNA1 table that contains general customer information. For example. Using table lookups. such as addresses. a country value can be determined when a customer is known. For example. Notice that CO-PA can capture this information for the invoice item using a table lookup. For example. Table lookups can be performed when the key of the table to be accessed can be filled with the characteristic values that are already known to CO-PA for the transaction. All rights reserved. you can access entire field values or parts of field values for the fields in the tables in which keys can be filled with the known characteristic values for transactions. the derivation lookup for product hierarchy could be configured to import the entire product hierarchy value or only the first several characters of the hierarchy into CO-PA. For example. 53 . 2006/Q2 © 2006 SAP AG.TFIN22_2 Lesson: Characteristic Derivation Figure 21: Derivation through Table Lookup A table lookup is a derivation method used by CO-PA to access the characteristic values from SAP master data tables when this information is not available on the originating transaction. you can configure the table lookup for the characteristic country to find the country value for the ship-to instead of the country value for the sold-to. The ability to customize table lookup derivation allows the configurator to control exactly which types of characteristic values are used to access other characteristic values.

or applicable for all times. derivation rules can be configured either to apply for all situations or to only apply when certain conditions are met (for example. Figure 22: Derivation Rule Derivation rules are used to determine characteristic values through user-defined logic. Other tables lookups. Notice that the nonfixed lookups can be modified. are determined directly based on the values of other characteristic values. derivation rule entries can be configured to be either related to a specific interval or time. Derivation rules can be set up in sequence with other derivation steps and methods to produce complex derivation logic. Similar to other derivation steps. which is being time-independent. which is being time-dependent. They are frequently used with user-defined characteristics although they are not limited to this application. you can also configure the derivation rules to produce an error message when a characteristic value cannot be determined through the rule entries. known as target values. Accordingly. characteristic values. These are generated when the operating concern environment is generated. known as source values. With derivation rules. only for sales organization 1000). 2006/Q2 . All rights reserved. 54 © 2006 SAP AG. In contrast to other derivation steps.Unit 2: Master Data TFIN22_2 Some table lookups are generated automatically on the basis of a characteristic‘s definition. You can also ignore the error and proceed. such as the ones for user-defined characteristics must be created from the beginning.

The system automatically generates a move derivation step to move the dummy profit center value from EC-PCA into CO-PA if no profit center can be determined by other steps. you can directly transfer a characteristic value or a part of the characteristic value to another characteristic. the sold-to value is copied into the ship-to value with the move function if the ship-to field is originally not populated by any previous derivation step. you can also move a constant to a characteristic. In the above example. the clear function is available to clear a value from a characteristic. the employee value is cleared to “not assigned” when the product is a specific value because the employees should not get sales credit for certain items. All rights reserved. 2006/Q2 © 2006 SAP AG. When certain conditions arise. 55 .TFIN22_2 Lesson: Characteristic Derivation Figure 23: Derivation with Move and Clear With a move. Under certain conditions. In addition.

2006/Q2 . Additional functions are available when you use the SAP list viewer to display derivation analysis. You can search for specific value fields and determine their use in derivation. All rights reserved. 56 © 2006 SAP AG.Unit 2: Master Data TFIN22_2 Customizing Monitor Derivation Analysis Figure 24: Customizing Monitor: Derivation Analysis The Customizing Monitor provides an overview of all derivation steps.

These check tables can either already exist in the original component of the characteristic or can be maintained manually in the Profitability Analysis. The first screen only shows user-defined derivation steps. 57 . you will be able to: • Customize derivation techniques and place them in a sequence to obtain characteristic values from desired sources for all CO-PA-relevant transactions • Test and analyze the derivation strategy settings Business Example The country and area are required from either the ship-to record (if there is one) or the sold-to record. and find two valid values for each characteristic: Sales District: Strategic Business Unit: Task 2: Display the derivation strategy in the Customizing settings of the Profitability Analysis. In the CO-PA application menu. The characteristic derivation describes the determining of characteristic values for every business transaction that is relevant for Profitability Analysis. including predefined derivation steps. which are stored in check tables. All rights reserved.TFIN22_2 Lesson: Characteristic Derivation Exercise 4: Derivation Exercise Objectives After completing this exercise. You can expand the display to view all derivation steps. Task 1: 1. display the check tables for each of the following characteristics. Note: The term characteristic value refers to an actual individual quantity defined for a particular characteristic. 1. Why can some derivation steps be modified and others cannot? Continued on next page 2006/Q2 © 2006 SAP AG. Your Sales Manager requires reports for the customer group and sales district and would like to know whether the values for these fields can be read directly from customer master and sales document tables. Product groups are to be categorized into strategic business units for reporting. All data transferred to CO-PA is checked against the valid characteristic values.

Display the derivation rule for the Strategic Business Unit characteristic. 4. What is the rule used to determine the CHEMFOOD strategic business unit? 3. Display the table lookup for the Customer Classification from Customer characteristic. Display the MOVE step for the Ship-to Party characteristic. What is the attribute for this derivation step? What is the purpose of this particular step? Continued on next page 58 © 2006 SAP AG. Rule values have been defined that determine the valid characteristic value combinations used to derive a new value. 2006/Q2 . What is the table of origin for this characteristic? Why are there no rule values for this characteristic? Task 3: In the Customizing settings for Profitability Analysis.Unit 2: Master Data TFIN22_2 2. What are the source and target fields? An attribute has been maintained for this characteristic. to apply the derivation rule only under certain conditions. What are the source fields? In which application do the source fields originate? Strategic Business Unit is a user-defined field in CO-PA. All rights reserved. under Master Data → Define Characteristic Derivation: 1. the strategic business unit.

some of the fields have remained blank. 2. Today's date F 01 X T-CO05A## P-100 1000 1000 10 1000 The order reason field is blank. As you can see.TFIN22_2 Lesson: Characteristic Derivation Task 4: To test the derivation strategy. enter a line item for your sample customer and the product P-100 using the transaction Simulate Evaluation. Select Derivation to execute. 59 .: Distribution Channel: Company Code: 1. Posting Date: Record Type: Point of valuation: Legal view: Customer: Product: Plant: Sales Org. Why? How did the system determine the “Customer Group” field? 2006/Q2 © 2006 SAP AG. All rights reserved. Use the derivation analysis to view the various derivation steps.

Business Unit CHEMAGRA CHEMCHEM CHEMFOOD COMPINDU Name: Agricultural Chemicals Chemicals Food chemicals Industrial computers District Name Northern region Southern region Western region Eastern region Continued on next page 60 © 2006 SAP AG.Unit 2: Master Data TFIN22_2 Solution 4: Derivation Task 1: 1. display the check tables for each of the following characteristics. display the check tables for each of the following characteristics. and find two valid values for each characteristic: Accounting → Controlling → Profitability Analysis → Master Data → Characteristic Values → Display Characteristic Values → All Characteristics On/Off → referenced characteristics → Sales District → Define Sales Districts: Sales District: Sales District: 000001 000002 000003 000004 Strategic Business Unit: Use the same menu path as above. In the CO-PA application menu. All rights reserved. 2006/Q2 . and find two valid values for each characteristic: Sales District: Strategic Business Unit: a) In the CO-PA application menu. Strat. but select Strategic Business Unit under user-defined characteristics.

IMG: Controlling → Profitability Analysis → Master Data → Define Characteristic Derivation: View → Display All Steps Why can some derivation steps be modified and others cannot? Nearly all fixed characteristics have programmed derivation steps that cannot be changed for technical reasons. The first screen only shows user-defined derivation steps. Select Choose. + Industry → SBU. Strategic Business Unit is a user-defined field in CO-PA. the derivation of the company code from the sales organization. including predefined derivation steps. including predefined derivation steps. You can expand the display to view all derivation steps. All rights reserved. for example. Continued on next page 2006/Q2 © 2006 SAP AG.Cat. You can expand the display to view all derivation steps. What are the source fields? Select the derivation rule Prod. The first screen only shows user-defined derivation steps. What are the source fields? In which application do the source fields originate? a) Display the derivation rule for the Strategic Business Unit (SBU) characteristic. 2.TFIN22_2 Lesson: Characteristic Derivation Task 2: Display the derivation strategy in the Customizing settings of the Profitability Analysis. 61 . WWPRC Product Category BRSCH Industry Key In which application do the source fields originate? CO-PA 3. Why can some derivation steps be modified and others cannot? a) Display the derivation strategy table in the Customizing settings of the Profitability Analysis. 1. Display the derivation rule for the Strategic Business Unit characteristic.

Product category Industry key SBU CHEM FOOD = CHEMFOOD 4.Unit 2: Master Data TFIN22_2 Rule values have been defined that determine the valid characteristic value combinations used to derive a new value. Task 3: In the Customizing settings for Profitability Analysis. All rights reserved. under Master Data → Define Characteristic Derivation: 1.Cat. What is the attribute for this derivation step? Continued on next page 62 © 2006 SAP AG. Display the MOVE step for the Ship-to Party characteristic. In this case. What is the rule used to determine the CHEMFOOD strategic business unit? Select the derivation rule Prod. the strategic business unit. What is the table of origin for this characteristic? Why are there no rule values for this characteristic? a) Display the table lookup for the Customer Classification from Customer characteristic. Click Maintain Rule Values. What are the source and target fields? An attribute has been maintained for this characteristic. 2006/Q2 . That is why no special rules (check tables) are required in the Profitability Analysis. the Profitability Analysis derives the customer classification directly from this table. to apply the derivation rule only under certain conditions. What is the table of origin for this characteristic? Select Table Lookup for customer classification from Customer and then select : KNA1 Why are there no rule values for this characteristic? This field is populated from the customer master general data table. + Industry → SBU. What is the rule used to determine the CHEMFOOD strategic business unit? a) Strategic Business Unit is a user-defined field in CO-PA. Display the table lookup for the Customer Classification from Customer characteristic. Rule values have been defined that determine the valid characteristic value combinations used to derive the strategic business unit.

click ALL derivation steps: View → Display All Steps Select the “move” step for Ship-to Party. This derivation step is only carried out if the Ship-to field is blank. Target field: → CO-PA → KUNWE → Ship-to party An attribute has been maintained for this characteristic. and select “Choose”. As you can see. What is the purpose of this particular step? In this case. Posting Date: Record Type: Point of valuation: Legal view: Customer: Product: Plant: Sales Org. Task 4: To test the derivation strategy. under Master Data → Define Characteristic Derivation: Display the MOVE step for the Ship-to Party characteristic. to apply the derivation rule only under certain conditions. Today's date F 01 X T-CO05A## P-100 1000 1000 10 1000 The order reason field is blank. Why? Continued on next page 2006/Q2 © 2006 SAP AG. Select Derivation to execute. What are the source and target fields? To display. some of the fields have remained blank. All rights reserved. enter a line item for your sample customer and the product P-100 using the transaction Simulate Evaluation.: Distribution Channel: Company Code: 1. Source field: → CO-PA → KNDNR → Choose Customer. What is the attribute for this derivation step? Select the Condition tab.TFIN22_2 Lesson: Characteristic Derivation What is the purpose of this particular step? a) In the Customizing settings for Profitability Analysis. the Ship-to field is filled with the value in the Customer field. Use the derivation analysis to view the various derivation steps. 63 .

Why? IMG → Controlling → Profitability Analysis → Tools → Analysis → Valuation Simulation. because the source field Customer Order Number (initial) is empty. IMG → Controlling → Profitability Analysis → Master Data → Characteristic Values → Define Characteristic Derivation: Display All Steps. The order reason field is blank. The derivation of the ORDER REASON field can be reproduced in Customizing under the derivation rules. but a simulated derivation analysis. As you can see. Record Type: Posting Date: Point of valuation: Choose Continue. Select Derivation to execute. The order reason is derived per table look-up from the sales document. order reason is empty Save the derivation step in the derivation analysis. Select values before/after. then Extras → Derivation Analysis. Continued on next page 64 © 2006 SAP AG.Unit 2: Master Data TFIN22_2 a) To test the derivation strategy. This is not a sales order document. 2006/Q2 . All rights reserved. That means that the order reason is derived from the Sales Order Document field.: Distribution Channel: T-CO05A## P-100 1000 1000 1000 10 F Today 01 Select Derivation. Use the derivation analysis to view the various derivation steps. some of the fields have remained blank. The Customer Order Reason field is empty. That is why the Order Reason field cannot be created or derived from the simulation. enter a line item for your sample customer and the product P-100 directly in the costing-based Profitability Analysis. Customer: Product: Company Code: Plant: Sales Org.

Sales Organization. How did the system determine the “Customer Group” field? a) How did the system determine the “Customer Group” field? Select the icon next to the table lookup to view the Sales Office.TFIN22_2 Lesson: Characteristic Derivation 2. All rights reserved. Distribution Channel. 65 . The source fields for this derivation step are Customer. The system has derived the customer group from the customer master record 2006/Q2 © 2006 SAP AG. and Division.

Unit 2: Master Data

TFIN22_2

Lesson Summary
You should now be able to: • Explain the derivation strategy • Evaluate derivation techniques

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TFIN22_2

Lesson: Valuation

Lesson: Valuation
Lesson Overview
This lesson helps you to understand valuation using the product cost information. It also outlines the valuation using a CO-PA costing sheet.

Lesson Objectives
After completing this lesson, you will be able to: • • • Understand valuation using the product cost information Outline valuation using a CO-PA costing sheet Use the Customizing Monitor to perform valuation analysis

Business Example
The management of your company would like to implement a profitability accounting application in the SAP system. As a member of your the project team, you are supposed to advise on the question of whether to implement CO-PA or EC-PCA in the SAP system. You then will be responsible for implementing the selected applications. Mrs. Schnell has requirements for profitability reports along the lines of many characteristics, some of which are available on the selling and invoicing transactions, such as the sales organization, sold-to, and product, and some of which are available only on master records, such as the product group and state. True freight costs are not known at the time of invoicing but are known only at the month-end when the invoices are received from the freight vendors. These costs are not applied in a cost-based way in FI, but are calculated in the profitability analysis. This is why Mrs. Schnell was able to estimate the expected final result for her plant already before the end of the month. Mr. Cash, who is responsible for company planning, requests that sales quantities be planned with regard to the material requirements in the profitability analysis. Here, price and cost information should be read by the system and automatically applied to the planned quantities, so that the respective revenues and cost of sales - and thus the profit can be determined with sufficient accuracy. The Product Costing module is being used, and the detail results are to be imported into CO-PA. This is to analyze true cost-of-sales extensively, and to analyze and calculate the types of margins, such as the margin after fixed costs and the margin after all costs. As a result, freight and packaging costs are to be estimated for each line item on each order/invoice (transaction-based billing). Revenue and COGS are to be projected automatically for the materials with planned quantities in aggregate. The Detail Product Costing information is to be brought in for each line item on each order/invoice (transaction-based billing). For this purpose, the valuation strategy and techniques need to be used.

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Valuation Concept

Figure 25: Valuation Concept

In costing-based Profitability Analysis, you can configure a function known as valuation to supplement the performance information provided directly by a transaction. The additional information may be estimated, calculated, or retrieved from a different source. For example, you can set your system so that it automatically calculates the internal commissions and freight costs that are to be expected in the respective business transaction, when you transfer billing data into CO-PA. In this way, you can evaluate the expected profit from the business transactions without all actual data having been posted. Similarly, you can access the detailed product costing information.

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you ease the system.TFIN22_2 Lesson: Valuation Figure 26: Valuation: Overview Valuation can be used with either actual or planning data. 69 . All rights reserved. This enables the automatic calculation of projected revenue and cost-of-sales figures. or periodically. thereby causing a higher system load for real-time evaluation. 2006/Q2 © 2006 SAP AG. It is often used in Controlling Profitability Analysis (CO-PA) planning to access the pricing and product cost information for the products that have planned quantities. Valuation can be configured to function either in real-time. it gives the option of re-evaluating the posted data. which means at the time data is first posted to CO-PA. Similarly. which means at some later point when manually triggered. The periodic evaluation provides advantages when many postings are executed. By putting off the evaluation to a later date.

and at what points. which are to be applied to a given COPA-relevant transaction. and product costing information. and 0-9. known as points of valuation. B. A. A valuation strategy may contain references to multiple valuation techniques. All rights reserved. The various valuation techniques that populate the value fields in different ways are: • • • With costing sheets. Value fields are updated directly through user exits. condition types are mapped to value fields. C. 2006/Q2 .Unit 2: Master Data TFIN22_2 Valuation Strategy and Techniques Figure 27: Valuation Strategy The valuation strategy is central to valuation configuration. if a strategy is to be applied to planning data. user exits. each valuation strategy should apply. such as costing sheets. You need to decide to what record types. From Product Costing. Similarly. cost components are mapped to value fields. F. 70 © 2006 SAP AG. the relevant planning version must be specified.

or cost component. You can map each component to its own value field or multiple components to a single value field. All rights reserved. This function can be used to import extensive cost-of-sales information into CO-PA for flexible margin reporting. such as by item. cost element. This function exists so that cost-of-sales can be analyzed extensively in CO-PA and multiple margin values can be calculated and analyzed in CO-PA. the product cost estimate information for CO-PC can be transferred into CO-PA. 2006/Q2 © 2006 SAP AG. You can also map the fixed and variable portions of a component to separate value fields. cost components are mapped to value fields. 71 . The results of a product cost estimate can be viewed in different ways.TFIN22_2 Lesson: Valuation Figure 28: Product Cost Estimates in Product Costing The Product Cost Controlling (CO-PC) module is used to generate the product cost estimates for materials. In configuration. through cost component values. Through valuation.

standard. depending on the material. this has priority over the entry for the material type. By assigning a costing key. material type. you determine which values of the cost component structure are transferred to which value fields in the operating concern. The entry for the material type has priority over any entries defined for other characteristics. If an entry exists for the material. In the assignment lines. you can determine which cost estimate. modified standard. or current cost estimate should be used in which case. you control which cost estimate. meaning which costing variant should be used with which validity date for valuation. or any other combination of characteristics. 72 © 2006 SAP AG. 2006/Q2 .Unit 2: Master Data TFIN22_2 Figure 29: Valuation using Product Costing: Customizing (1) Using a costing key. All rights reserved.

2006/Q2 © 2006 SAP AG. 4 for the standard cost estimate valid on the date of goods issue. you specify the date for which the system should look for a valid material cost estimate in the database. for Product Cost Controlling. 1 for the current standard cost estimate. you can enter either a costing date or a period or a value for the period indicator. The following options are available for the plan period indicator: 0 for the future standard cost estimate. This refers to the future. current. 1. 73 . If you enter 3 or 4 for the plan period indicator.TFIN22_2 Lesson: Valuation Figure 30: Valuation using Product Costing: Customizing (2) When you define a costing key. regardless of what is stored in the material master. Using the plan period indicator. 3 for the standard cost estimate valid on the posting date. or 2 for the plan period indicator. All rights reserved. the system reads the standard cost estimate valid on the first day of the period. If you enter 0. the system reads the standard cost estimate valid on the given posting date or date of goods issue. or past period for which the standard cost estimate is valid according to the entries in the valuation segment of the relevant material master record. 2 for the past standard cost estimate.

You can also assign costing keys to a combination of different characteristics. You can use up to three characteristics as source fields”. All rights reserved. In this way. This allows greater flexibility and control in using costing keys. and group. such as plant. you do not need to assign costing keys to one specific material or material type. This makes it possible to access the cost of goods manufactured from different plants. 74 © 2006 SAP AG. 2006/Q2 . you can assign the costing keys to any combination of characteristics. which is useful if you want to use the costs from the production plant when the product is sold by different sales plants.Unit 2: Master Data TFIN22_2 Figure 31: Valuation using Product Costing: Customizing (3) In addition to assigning the costing keys to products or material types. product.

Costing sheets consist of a sequence of user-defined condition types. each of which accesses a value or performs specific calculations. Each condition type is mapped to a value field in the operating concern. They are the central piece to the condition technique. a method used throughout SAP for performing calculations. 2006/Q2 © 2006 SAP AG.TFIN22_2 Lesson: Valuation Figure 32: Valuation Using Costing Sheets Costing sheets are a vehicle through which special values can be accessed or calculated. 75 . All rights reserved. as dictated by the definitions of the condition types.

76 © 2006 SAP AG. Scale basis: The scale basis determines how the system interprets the value or quantity scale for a condition. What calculation the system carries out in that step depends on the following control indicators: • • • • Condition category Calculation type Condition class Scale basis Calculation type: The calculation type determines how the system calculates prices. 2006/Q2 . Scales can be dependent on a quantity or a currency amount.Condition Records A condition type represents one step in a costing sheet. reductions. For example. it can specify that a sales deduction should be dependent on the quantity sold or a value scale. All rights reserved.Unit 2: Master Data TFIN22_2 Figure 33: Condition Types . or surcharges for a condition type.

refer to pricing documentation or take a class on pricing or the condition technique. All rights reserved. For complete information about how to use the condition technique. 2006/Q2 © 2006 SAP AG. Calculation condition types perform calculations on the lines in the costing sheets that represent subtotals of amounts. A calculation condition type is assigned an access sequence here with corresponding condition records. These condition types actually populate the value fields with values. such as base amounts. Notice that their definitions can vary. These condition types must have on their master record. The condition records contains deductions or additions or absolute values that refer to certain combinations of characteristic values. 77 . and a condition class of “B”. a condition category of “K”. They signify the value fields that have already been populated through other means.TFIN22_2 Lesson: Valuation Figure 34: Valuation Using Costing Sheet: Customizing Base condition types form the basis for calculations. a calculation rule of “B”.

The report shows you what value flows the value field is involved in and what condition types or cost elements it gets its values from. and the Project System Cost center assessment from Cost Center Accounting (CO-OM-CCA).Unit 2: Master Data TFIN22_2 Customizing Monitor Valuation Analysis Figure 35: Customizing Monitor Valuation Analysis The value field analysis function enables you to analyze all the flows of actual data to Profitability Analysis. Direct postings from Financial Accounting and operations. Order and project settlement from Overhead Cost Orders (CO-OPA). In all. • 78 © 2006 SAP AG. External data transfer. You can find inconsistencies by looking at the individual value fields. you can analyze the following actual value flows: • • • Transfer of billing documents and incoming sales orders from Sales Order Management. All rights reserved. 2006/Q2 .

For further options for the simulation of billing document transfers. 2006/Q2 © 2006 SAP AG. Notice that you have the possibility of checking valuation by simulating the entry of single line items.TFIN22_2 Lesson: Valuation Figure 36: Analysis of Valuation Valuation analysis is available to you when entering of plan or actual data. All rights reserved. refer to the section. 79 . You can specify different valuation points in time and in this way check different valuation strategies. Tools. To analyze the valuation errors during billing document transfer. you can execute a simulation of previously transferred billing documents and then analyze the results of your valuation strategies.

All rights reserved. 2006/Q2 .Unit 2: Master Data TFIN22_2 80 © 2006 SAP AG.

TFIN22_2 Lesson: Valuation Exercise 5: Valuation Exercise Objectives After completing this exercise. Display the costing key assignment for product P-100. you can transfer extensive information to CO-PA. To allocate the estimated production costs. I10? For which period does the system access the material cost estimate? Note: Costing keys can be assigned to an individual product. 81 . This is normally 1. a material type.50 for each unit. and the margin after all costs. to CO-PA value fields. you will be able to: • Create a link to material costing. such as plant. Task 1: In the Customizing settings for CO-PA. All rights reserved. to calculate and analyze the estimated cost of sales and different contribution margins. such as materials and labor. Which is the assigned costing key? Continued on next page 2006/Q2 © 2006 SAP AG. You can assign a valuation strategy to determine the transactions valuated. Note: If you implement material costing in your SAP system. you can assign the cost components of a material cost estimate to value fields. This step defines the level at which the system accesses the material costing information. 1. such as the cost of packaging materials Business Example Your controlling manager wants to ensure that sales and product managers understand the key cost components for the manufactured products. or any characteristic. You want to determine the estimated costs for packing the finished products. such as the margin after fixed costs. Valuation signifies the concept of supplementing the performance information provided directly by a transaction and allows access to in-depth material costing information. display the entries configured under Costing Keys for Valuation. What type of cost estimate is assigned to the costing key. to obtain extensive information about the key cost of manufacturing components. such as material and production labor • Use costing sheets to determine specific values.

: Distribution Channel: Company Code: Product: Plant: Invoiced Quantity: Revenue: 1.000 What is the value for Material Input? Why? Next. To which value field is the raw material cost component assigned? Task 2: To test your valuation strategy. 2. P-100? 2. Today's date F 01 T-CO05A## 1000 10 1000 P-100 1000 100 100. PPC1. and enter product P-100 in plant 1000 in the line item entry screen. I10. P-100. execute a valuation analysis: How was the “Material overheads” field filled? Save the line item and write down the document number. Display the value field assignments for the cost component structure.000. I10.Unit 2: Master Data TFIN22_2 What is the point of valuation at which the system will use the costing key. 2006/Q2 . Use the costing variant. in the Product Cost Planning component. for the product. P-100? What is the costing type for which the system will use the costing key. After carrying out derivation. enter a line item for your customer directly in CO-PA under Tools → Analyze Value Flows → Simulate Valuation. enter 100 pieces in the Invoiced Quantity field with a Revenue of $100. Display the currently released (status FR) standard cost estimate for the product. Posting Date: Record Type: Point of valuation Customer: Sales Org. Notice that the costing lot size for the product is 100. 01. Carry out valuation. What is the total raw material cost? What is the Cost Component number and description? 3. for the product. Fill in the header data as required. Continued on next page 82 © 2006 SAP AG. All rights reserved.

1.TFIN22_2 Lesson: Valuation Carry out a valuation analysis: Extras → Valuation Analysis How was the Material Overhead field populated? Select the “Result of valuation” tab. Create a conditions list for the existing condition records. 2.000 in the Cost of Goods Sold field. P-100? Task 4: 1. Value field VV250 was connected to cost component 080 in cost component structure 01. that is connected to the costing variant PPC1. All rights reserved. 4. What is the value for Dispatch Packaging? Task 5: 1. 83 . With the costing key I10. Save the line item and write down the document number. what rate does the system use to estimate the packaging for one piece of the material. You can use valuation to configure the system to calculate the estimated values for packaging supplies at the time an invoice is billed. Which condition type is used? What overhead type is used for OUPA? In the plant. Display the costing sheet under the Valuation settings in the IMG.000 for Revenue. In this entry you will manually enter 10 for the Invoiced Quantity. OUPA. Select the “Display Value Field Assignments” tab. Enter product P-100. Enter your customer and all other associated information. Continued on next page 2006/Q2 © 2006 SAP AG. 1000. 3. Task 3: The true costs for packaging and accessories are not known at the time of invoicing but are known at the month-end when the packaging materials are posted and allocated to various cost centers. Sort according to the text. These costs are not accrued during the month in FI but they are to be estimated in CO-PA so that your Plant Manager can estimate true profitability of all plants prior to the month-end. To verify that the costing sheet has been configured correctly. Carry out valuation. 10. enter another line item in CO-PA. and 8. Step 10 for Valuation View I10. What basis is used to calculate estimated packaging (OUPA)? Display the condition record for the condition type.

When saving. how does the system valuate your data. and value fields. Select for condition type: Position level of the condition list. # A B C D E 2 3 4 5 F 6 G H I 7 8 9 K K M N O P R S T No. use the i-th letter of the alphabet that corresponds to your group number. but leave the column for required entries unhighlighted! Save your condition list. 100? Continued on next page 84 © 2006 SAP AG. 1 10 11 12 13 14 15 16 17 18 Z# Condition list group # Name of the list: Header: Choose selected fields Highlight the PLANT field and continue via AND. assuming you are using the version. create a realignment request with the name AC605GR## after the system requests that you do so. It also allows you to evaluate the existing settings. Analyze the Customizing settings for the planning data entered manually. Highlight “Selection”. Name your condition list Z#.Unit 2: Master Data TFIN22_2 2. Select for the text: Key field and text. Task 6: You can use the Customizing Monitor to analyze in one step all the configuration settings you have made. 2006/Q2 . For #. the use of characteristics. Select for positioning: Group header of the condition list. All rights reserved. If you decided to create a sales plan for the billed orders manually. Execute your condition list. 1. Highlight only table 506 (access to plant) Continue via “continue to list structure”.

All rights reserved.TFIN22_2 Lesson: Valuation Field Name or Data Type Point of Valuation Plan Version Record Type 2. Reports: 2006/Q2 © 2006 SAP AG. 85 . Values 03 100 Billing Next. WWSBU. Which origin and target fields are assigned in this step? Use the Customizing Monitor to establish this. you try to establish where the characteristic. is used in your client.

or any characteristic. All rights reserved. Which is the assigned costing key? What is the point of valuation at which the system will use the costing key.Unit 2: Master Data TFIN22_2 Solution 5: Valuation Task 1: In the Customizing settings for CO-PA. 2006/Q2 . such as plant. P-100? Continued on next page 86 © 2006 SAP AG. such as materials and labor. You can assign a valuation strategy to determine the transactions valuated. you can assign the cost components of a material cost estimate to value fields. This step defines the level at which the system accesses the material costing information. I10. display the entries configured under Costing Keys for Valuation. to CO-PA value fields. a material type. To allocate the estimated production costs. I10? For which period does the system access the material cost estimate? Note: Costing keys can be assigned to an individual product. 1. What type of cost estimate is assigned to the costing key. Display the costing key assignment for product P-100. for the product.

To allocate the estimated production costs. PPC1. for the product. P-100. which is the Standard Cost Estimate For which period does the system access the material cost estimate? Released standard cost estimate matching goods issue date. such as materials and labor. is assigned to the costing key. P-100. A. in the Product Cost Planning component. a material type. you can assign the cost components of a material cost estimate to value. such as a plant. I10. P-100? a) In the Customizing settings for CO-PA. Note: Costing keys can be assigned to an individual product. Continued on next page 2006/Q2 © 2006 SAP AG. Display the costing key assignment for product P-100. for the product. to CO-PA value fields. You can assign a valuation strategy to determine the transactions valuated. IMG: Controlling → Profitability Analysis → Master Data → Valuation → Set Up Valuation Using Material Cost Estimate → Define Access to Standard Cost Estimates What type of cost estimate is assigned to the costing key. or any characteristic. display the entries configured under Costing Keys for Valuation. All rights reserved. P-100? For real-time actual data transfer. Which is the assigned costing key? IMG: Controlling → Profitability Analysis → Master Data → Valuation → Set Up Valuation Using Material Cost Estimates → Assign Costing Keys to Products Product. incoming sales orders. I10. Display the currently released (status FR) standard cost estimate for the product. 2. for the product. and F. I10. P-100? For the record type. PPC1. 87 . What is the point of valuation at which the system will use the costing key. This step defines the level at which the system accesses the product-costing information. Notice that the costing lot size for the product is 100.TFIN22_2 Lesson: Valuation What is the costing type for which the system will use the costing key. I10. Use the costing variant. PV = 1 What is the record type for which the system will use the costing key. billed sales orders. I10? Select I10 and Details: Costing Variant.

Choose Execute. Continued on next page 88 © 2006 SAP AG. Display the value field assignments for the cost component structure. click the Cost Component icon on the toolbar. 01.Unit 2: Master Data TFIN22_2 What is the total raw material cost? What is the Cost Component number and description? a) Display the currently released (status FR) standard cost estimate for the product. What is the total raw material cost? What is the Cost Component number and description? 3. 10. Cost component. Material Input. To which value field is the raw material cost component assigned? a) Next. P-100. Click the Cost Comps icon (bottom right). Raw Materials is assigned to Value Field. To which value field is the “raw material” cost component assigned? IMG: Controlling → Profitability Analysis → Master Data → Valuation → Set Up Valuation Using Material Cost Estimate → Assign Value Fields Use the cost component layout 01. VV150. After you have accessed the product cost estimate. Accounting → Controlling → Product Cost Controlling → Product Cost Planning → Material Costing → Cost Estimate with Quantity Structure → Display Field Name or Data Type Material Plant Costing Variant Costing Version Date Values P-100 1000 PPC1 1 Leave Default Click Find Cost Estimates (Binoculars icon) and make sure the costing status is set to FR. display the value field assignments for cost component structure 01. 2006/Q2 . All rights reserved. in the Product Cost Planning component.

Accounting → Controlling → Profitability Analysis → Tools → Analyze Value Flows → Simulate Evaluation. and enter product P-100 in plant 1000 in the line item entry screen. Carry out valuation. enter 100 pieces in the Invoiced Quantity field with a Revenue of $100. as required.: Distribution Channel: Company Code: Product: Plant: Invoiced Quantity: Revenue: 1.000. Today's date F 01 T-CO05A## 1000 10 1000 P-100 1000 100 100. Fill in the header data as required. enter 100 pieces in the “Invoiced Quantity” field with a revenue of 100.000. Carry out valuation. Posting Date: Record Type: Point of valuation Customer: Sales Org.TFIN22_2 Lesson: Valuation Task 2: To test your valuation strategy. enter a line item for your customer directly in CO-PA under Tools → Analyze Value Flows → Simulate Valuation. All rights reserved. enter a valuation simulation for your customer directly in CO-PA. and enter the product P-100 in plant 1000 in the entry screen. After carrying out derivation. 89 . Field Name or Data Type Posting Date Record Type Values Today's date F Select Continue: Tab “Characteristics” Continued on next page 2006/Q2 © 2006 SAP AG.000 What is the value for Material Input? Why? a) To test your valuation strategy. Fill in the header data. After carrying out derivation.

Field Name or Data Type Invoiced Quantity Revenue Select the Origin data tab. In addition. Select the “Display Value Field Assignments” tab.Unit 2: Master Data TFIN22_2 Field Name or Data Type Customer Product Distribution Channel Plant Sales organization Company code Select the Value fields tab. Field Name or Data Type Goods Issue Date Select Valuation Values T-CO05A## P-100 10 1000 1000 1000 Values 100 100000 Values Today's date What is the value for Material Input? Why? Compare this with the product costing. execute a valuation analysis: How was the “Material overheads” field filled? Save the line item and write down the document number. All rights reserved. Carry out a valuation analysis: Extras → Valuation Analysis How was the Material Overhead field populated? Select the “Result of valuation” tab. Next. Continued on next page 90 © 2006 SAP AG. 2. the Material Input value field has been mapped to cost component 01 of the cost estimate. Sort according to the text. The standard cost estimate for product P-100 in online valuation was assigned to CO-PA via the costing key. 2006/Q2 . Step 10 for Valuation View I10.

All rights reserved. You can use valuation to configure the system to calculate the estimated values for packaging supplies at the time an invoice is billed. Display the costing sheet under the Valuation settings in the IMG. You can use valuation to configure the system to calculate the estimated values for packaging supplies at the time an invoice is billed. Save the line item and write down the document number. These costs are not accrued during the month in FI but they are to be estimated in CO-PA so your plant manager can estimate true profitability for her plants prior to the month-end. Type. select the condition type OUPA (double click). The addition is calculated quantity-dependent with the calculation type. What basis is used to calculate estimated packaging (OUPA)? IMG: Controlling → Profitability Analysis → Master Data → Valuation → Set Up Conditions and Costing Sheets → Create Condition Types and Costing Sheets. Continued on next page 2006/Q2 © 2006 SAP AG. From the Surcharge/reduction list. a) Task 3: The true costs for packaging and accessories are not known at the time of invoicing but are known at the month-end when the packaging materials are posted and allocated to various cost centers. Select → Records for Cond. 91 . that is connected to the costing variant PPC1. Value field VV250 was connected to cost component 080 in cost component structure 01.TFIN22_2 Lesson: Valuation With the costing key I10.00 per pc. Hint: The quantity field assigned to the valuation strategy is used automatically .. The quantity-related addition is 3. What basis is used to calculate estimated packaging (OUPA)? a) The true costs for packaging and accessories are not known at the time of invoicing but are known at the month-end when the packaging materials are posted and allocated to the various cost centers. These costs are not accrued during the month in FI but they are to be estimated in CO-PA so that your Plant Manager can estimate true profitability of all plants prior to the month-end. Display the costing sheet under the Valuation settings in the IMG. 1.

what rate does the system use to estimate the packaging for one piece of the material. Task 4: 1. P-100? a) In the plant 1000. 3. P-100? Select CondRcrds-Access and display the condition record for plant 1000. What is the value for Dispatch Packaging? What value appears in the Dispatch Packaging field? A rate of 30 was calculated. OUPA. the packaging costs 3 per unit.000 for Revenue. Continued on next page 92 © 2006 SAP AG. 10. Execute → Choose Plant 1000 → Display. 1000. What is the value for Dispatch Packaging? a) To verify that the costing sheet has been configured correctly. Display the condition record for the condition type. 4. OUPA. Carry out valuation. In the plant. Select OUPA from the list of “pricing procedures” in the table on the upper left of the screen.000 for Revenue.000 in the Cost of Goods Sold field. and 8. Enter your customer and all other associated information. In this entry you will manually enter 10 for the Invoiced Quantity. what rate does the system use to estimate packaging for one piece of the material.000 in the Cost of Goods Sold field. Enter your customer and all other associated information. and 8. To verify that the costing sheet has been configured correctly. based on the costing sheet. Which condition type is used? a) Display the condition record for the condition type. Enter product P-100. Carry out valuation. Using this condition record. enter another line item in CO-PA. enter another line item in CO-PA. What overhead type is used for OUPA? a) What overhead type is used for OUPA? This condition type is quantity-based.Unit 2: Master Data TFIN22_2 2. The condition type is Surcharge/Reduction. All rights reserved. Enter product P-100. 10. 2006/Q2 . Which condition type is used? IMG: Controlling → Profitability Analysis → Master Data → Valuation → Set Up Conditions and Costing Sheets → Create Condition Types and Costing Sheets. In this entry you will manually enter 10 for the Invoiced Quantity.

For #. Select for positioning: Group header of the condition list. Execute your condition list. All rights reserved. When saving. Select for the text: Key field and text. Analyze the Customizing settings for the planning data entered manually. 1. use the i-th letter of the alphabet that corresponds to your group number. but leave the column for required entries unhighlighted! Save your condition list. 1 10 11 12 13 14 15 16 17 18 Z# Condition list group # Name of the list: Header: Choose selected fields Highlight the PLANT field and continue via AND.TFIN22_2 Lesson: Valuation Task 5: 1. Highlight “Selection”. Continued on next page 2006/Q2 © 2006 SAP AG. Select for condition type: Position level of the condition list. It also allows you to evaluate the existing settings. SAP Menu → Accounting → Controlling → Profitability Analysis → Master Data → Condition Lists Name your condition list Z#. and value fields. the use of characteristics. Create a conditions list for the existing condition records. create a realignment request with the name AC605GR## after the system requests that you do so. 93 . Highlight only table 506 (access to plant) Continue via “continue to list structure”. a) Task 6: You can use the Customizing Monitor to analyze in one step all the configuration settings you have made. a) 2. # A B C D E 2 3 4 5 F 6 G H I 7 8 9 K K M N O P R S T No.

Which origin and target fields are assigned in this step? Use the Customizing Monitor to establish this. Values 03 100 Billing Document 2. IMG → Controlling → Profitability Analysis → Tools → Analysis → Check Customizing Settings Choose Overview of Valuation : If you decided to create a sales plan for the billed orders manually. 100? Field Name or Data Type Point of Valuation Plan Version Record Type a) Values 03 100 Billing You can use the Customizing Monitor to analyze in one step all the configuration settings you have made. Continued on next page 94 © 2006 SAP AG. you try to establish where the characteristic. how does the system valuate your data.Unit 2: Master Data TFIN22_2 If you decided to create a sales plan for the billed orders manually. It also allows you to evaluate the existing settings. how does the system valuate your data. it accesses a user exit. assuming you are using the version. Next. 100? Field Name or Data Type Point of Valuation Plan Version Record Type Execute. and value fields. assuming you are using the version. Analyze the Customizing settings for the planning data entered manually. the use of characteristics. The system first accesses the Costing Sheet. ACT001. 2006/Q2 . COPA10. All rights reserved. and then the Costing Sheet. WWSBU. It then looks for information about material cost estimates and finally. is used in your client.

TFIN22_2 Lesson: Valuation Reports: a) You now try to establish where the WWSBU characteristic is used in your client. 95 . Field Name or Data Type Characteristic Client Values WWSBU Current Client Select Execute. Which origin and target fields are assigned in this step? Use the Customizing Monitor to establish this. and then Information System → Reports → Costing-Based Reporting: IDES-300. All rights reserved. IMG → Controlling → Profitability Analysis → Tools → Analysis → Check customizing settings Choose Where-Used List. IDES-310 – IDES-314 (may vary) 2006/Q2 © 2006 SAP AG.

All rights reserved. 2006/Q2 .Unit 2: Master Data TFIN22_2 Lesson Summary You should now be able to: • Understand valuation using the product cost information • Outline valuation using a CO-PA costing sheet • Use the Customizing Monitor to perform valuation analysis 96 © 2006 SAP AG.

97 .TFIN22_2 Unit Summary Unit Summary You should now be able to: • Explain the derivation concepts • Explain the valuation concepts • Explain the derivation strategy • Evaluate derivation techniques • Understand valuation using the product cost information • Outline valuation using a CO-PA costing sheet • Use the Customizing Monitor to perform valuation analysis 2006/Q2 © 2006 SAP AG. All rights reserved.

Unit Summary TFIN22_2 98 © 2006 SAP AG. 2006/Q2 . All rights reserved.

which derive different characteristic values. What all can a valuation strategy contain? 3. All rights reserved. supplements the data being passed directly from transactions into CO-PA with calculated. Determine whether this statement is true or false. supplements automatically mapped characteristic 2. What is a derivation strategy? 5. or otherwise accessed values. 4. retrieved. □ □ 7. A consists of a number of different steps. Characteristic derivation signifies the process to determine the characteristic values for all CO-PA characteristics. Fill in the blanks to complete the sentence. Fill in the blanks to complete the sentence. 6.TFIN22_2 Test Your Knowledge Test Your Knowledge 1. Fill in the blanks to complete the sentence. values. True False What is a table lookup? 2006/Q2 © 2006 SAP AG. 99 .

2006/Q2 . All rights reserved. Using a . □ □ 9. □ □ □ □ A B C D Transfer of billing documents Incoming sales orders from Sales and Distribution Direct postings from Financial Accounting and Materials Management Actual costs 12. Choose the correct answer(s). These scales can be dependent on a or a . you can determine which cost estimate should be used with which validity date for valuation. What do costing sheets consist of? 100 © 2006 SAP AG. 11. Fill in the blanks to complete the sentence. Determine whether this statement is true or false. The scale basis determines how the system interprets the value or quantity scale for a condition.Test Your Knowledge TFIN22_2 8. The system automatically creates a standard derivation strategy for each operating concern. 13. True False What is the Product Costing module used for? 10. Identify the actual value flows that can be analyzed using the value field analysis function. Fill in the blanks to complete the sentence.

□ □ True False 2006/Q2 © 2006 SAP AG. The value field analysis function enables you to analyze all the flows of actual data to Profitability Analysis.TFIN22_2 Test Your Knowledge 14. All rights reserved. Determine whether this statement is true or false. 101 .

Answer: derivation strategy 6. Answer: Derivation 2. Valuation supplements the data being passed directly from transactions into CO-PA with calculated. Answer: True Characteristic derivation signifies the process to determine characteristic values for all CO-PA characteristics. Characteristic derivation signifies the process to determine the characteristic values for all CO-PA characteristics. or otherwise accessed values. 5. retrieved. What all can a valuation strategy contain? Answer: A valuation strategy can contain CO-PA costing sheets. 7. What is a derivation strategy? Answer: A derivation strategy is a sequence of steps. What is a table lookup? Answer: A table lookup is a derivation technique that is utilized by CO-PA to access the characteristic values from SAP master data tables. 3. Derivation supplements automatically mapped characteristic values. which derive different characteristic values. SD pricing procedures. 102 © 2006 SAP AG. product costing calls. respectively. where each step uses one derivation technique to calculate one or more values for one or more characteristics. and user exit calls in a sequence that can be customized. Answer: Valuation 4. All rights reserved.Test Your Knowledge TFIN22_2 Answers 1. 2006/Q2 . A derivation strategy consists of a number of different steps.

2006/Q2 © 2006 SAP AG. 103 . 10. The system automatically creates a standard derivation strategy for each operating concern. Using a costing key. 9. each of which accesses a value or performs specific calculations. What is the Product Costing module used for? Answer: The Product Cost Controlling (CO-PC) module is used to generate the product cost estimates for materials. such as transfer of billing documents. C The value field analysis function enables you to analyze the actual value flows. currency amount 11. B. Answer: costing key 13. direct postings from Financial Accounting and Materials Management. incoming sales orders from Sales and Distribution. What do costing sheets consist of? Answer: Costing sheets consist of a sequence of user-defined condition types. you can determine which cost estimate should be used with which validity date for valuation. Identify the actual value flows that can be analyzed using the value field analysis function. as dictated by the definitions of the condition types. This strategy contains the derivation steps for all the dependencies that are already known between characteristics.TFIN22_2 Test Your Knowledge 8. The scale basis determines how the system interprets the value or quantity scale for a condition. Answer: quantity. and external data transfer. You can then change this strategy to meet your organization's requirements. Answer: True The system automatically creates a standard derivation strategy for each operating concern. 12. All rights reserved. These scales can be dependent on a quantity or a currency amount. Answer: A.

You can find inconsistencies by looking at individual value fields. Answer: True The value field analysis function enables you to analyze all the flows of actual data to Profitability Analysis. 104 © 2006 SAP AG. 2006/Q2 . All rights reserved.Test Your Knowledge TFIN22_2 14. The value field analysis function enables you to analyze all the flows of actual data to Profitability Analysis.

........... It explains condition types and the transfer and allocation of costs........... Unit Objectives After completing this unit................ it provides an overview of settlement orders and discusses direct and automatic posting............106 Lesson: Transfer of Overhead ................................ variance calculation............... and schedule manager......................................... you will be able to: • • • • Explain the flow of actual data in CO-PA List the sources of value fields Explain the transfer and allocation of costs Explain the settlement of orders Unit Contents Lesson: Flow of Actual Data... In addition................ 111 Exercise 6: Cost Center Assessment........127 Exercise 8: Activity Allocation..135 2006/Q2 © 2006 SAP AG..........Unit 3 Actual Data Unit Overview This unit explains the flow of actual data............................................ 105 ...121 Exercise 7: Internal Orders.... All rights reserved..........

Lesson Objectives After completing this lesson. The product manager for Taiwan has been informed of price increases for bicycle seats which are purchased externally. Your corporate controller asks you to explain the differences in the actual value flows in the costing-based and account-based profitability analysis. Your Japanese sales manager is very familiar with the sales order process.Unit 3: Actual Data TFIN22_2 Lesson: Flow of Actual Data Lesson Overview This lesson should provide you with an understanding of the value flows in the Profitability Analysis. and Japan. you will be able to: • • Explain the flow of actual data in CO-PA List the sources of value fields Business Example The management of your company wants to implement a profitability accounting application in the SAP system. They can track the services they provided at the division level and want to ensure that Logistics costs are included in the contribution margin reports. he wants to know what order data are specified in CO-PA. The logistics department in your company would like to allocate costs across the two manufacturing plants and the distribution centers in Canada. you will become familiar with the steps required to prepare the Profitability Analysis for actual value flows. Furthermore. you are supposed to advise on the question of whether to implement CO-PA or EC-PCA in the SAP system. As a member of the project team. They have tracked training hours and want to allocate costs to all the products within the “Blue Bicycle” product group. 2006/Q2 . 106 © 2006 SAP AG. He asks you to explain at what point data is posted to CO-PA. Furthermore. All rights reserved. and wonders how that will affect contribution margins. Mr. You then will be responsible to implement the selected applications. He also wants to analyze the cost of production variances due to the scrap and use of reflectors for the three models within the ‘Blue Bicycle’ product group. Your Marketing department has spent an extensive amount of time training the world wide sales force and product management on the advantages of the new 'Blue Bicycle' product line. the US. In order to be able to allocate completely the spending levels for research and development that are currently collected at the production group level via internal orders. Cash tries to find out whether the internal orders can be calculated in CO-PA.

All rights reserved. are divided into variance categories and settled to profitability segments. The actual cost of goods manufactured is also allocated to the cost object. and the cost centers that perform the activity are credited. From the viewpoint of Profitability Analysis. such as production orders. In Overhead Cost Controlling. Overhead costs remaining on the Overhead Cost Controlling objects are allocated to the originating profitability segments.Overview Revenues and discounts are transferred to profitability segments in Profitability Analysis at the point of billing in Sales Order management. this leads to under absorption or over absorption for the cost centers performing the activity and production variances for the corresponding cost objects. Quantities sold are valuated at the same time with the standard cost of goods manufactured according to the cost component split from Product Cost Controlling (CO-PC). Production variances: The difference between the actual costs of goods manufactured and the standard costs determined for cost objects. in this case production orders. primary postings are posted to the objects in Overhead Cost Controlling and allocated to the cost object by the most source-related means available.TFIN22_2 Lesson: Flow of Actual Data Value Flows in Actual: Overview and Results Figure 37: Flows of Actual Values . 2006/Q2 © 2006 SAP AG. 107 .

Unit 3: Actual Data TFIN22_2 Figure 38: Flow of Actual Values – Results The method of determining period operating results in Profitability Analysis is based on the assumption that the success of a company can be measured primarily on the basis of its transactions with other companies. As a result. 108 © 2006 SAP AG. The costs consist of the cost of goods manufactured. 2006/Q2 . product management. To complete your profitability data. The aim is to supply the sales. controlling. the products sold are transferred to CO-PA in accordance with the cost of sales accounting method and provide the information about the sales revenue and sales deductions. This net revenue is compared with the cost of sales. and corporate planning teams with decision-support information. marketing. products sold. you can also assign overhead costs to profitability segments in the course of your period-end closing activities. This sales-oriented approach in Controlling Profitability Analysis means that no contribution to the success of the organization is made until a sales transaction is completed. All rights reserved. or services rendered in addition to any production variances known.

They represent the finest level of detail at which costs and revenues are broken down. This enables you to calculate the contribution margins that your organization requires in the Information System.TFIN22_2 Lesson: Flow of Actual Data Sources of Value Fields Figure 39: Sources of Value Fields The value fields in the costing-based CO-PA contain the amounts and quantities that you want to report on. One of the most important tasks in Customizing for the costing-based CO-PA is to assign your costs and revenues to the required value fields. All rights reserved. 109 . 2006/Q2 © 2006 SAP AG.

All rights reserved.Unit 3: Actual Data TFIN22_2 Lesson Summary You should now be able to: • Explain the flow of actual data in CO-PA • List the sources of value fields 110 © 2006 SAP AG. 2006/Q2 .

you need to execute allocations and settlements of overhead costs. you are supposed to advise on the question of whether to implement CO-PA or EC-PCA in the SAP system. 2006/Q2 © 2006 SAP AG. They can track the services they provided at the division level and want to ensure that the Logistics costs are included in the contribution margin reports. Lesson Objectives After completing this lesson.TFIN22_2 Lesson: Transfer of Overhead Lesson: Transfer of Overhead Lesson Overview This lesson helps you understand the transfer and allocation of costs. You then will be responsible for implementing the selected applications. you will be able to: • • Explain the transfer and allocation of costs Explain the settlement of orders Business Example The management of your company would like to implement a profitability accounting application in the SAP system. For this reason. the US. It also explains settlement of orders. and Japan. 111 . All rights reserved. As a member of your the project team. Your corporate operations department would like to allocate costs across the two manufacturing plants and the distribution centers in Canada.

2006/Q2 . Credit object Cost Center Assessment CostCenter Direct activity allocation Which time basis Periodical costs Cost center Quantity Price ad-hoc 112 © 2006 SAP AG. you can update the prices divided into cost components during allocations to Profitability Analysis. This means that a transport activity can be directly posted to particular customers without the need to be posted to a cost center or an order. This can be done using periodic assessment. The amount that is arrived at is credited to the sender and debited to the profitability segment receiving the quantity. you enter the quantity of the activity performed and valuate it with the planned price of the activity type.Unit 3: Actual Data TFIN22_2 Transfer and Activity Allocation Figure 40: Transfer of Overhead Costs: Overview To show in Profitability Analysis all the costs incurred in Overhead Costs Controlling. In addition. you can transfer to Controlling Profitability Analysis (CO-PA) the particular overhead costs for the cost centers and the business processes that are not allocated to the inventory. If you use the cost component split in Cost Center Accounting or Activity-Based Costing for price calculation. you can execute a direct or indirect allocation of internal activities into CO-PA for Cost Centers and business processes. All rights reserved. Along wíth the sender (cost center or process) and the receiver (profitability segment). The amount that is arrived at is credited to the sender and debited to the profitability segment receiving the quantity.

You can transfer the cost component split of the prices for each Cost Center to CO-PA. All rights reserved. you must activate the respective settings in Customizing and then enter the cost elements in the various value fields. You can transfer the activities either directly or indirectly to Profitability Analysis. 113 .TFIN22_2 Lesson: Transfer of Overhead Indirect activity allocation Process assessment Template allocation Cost center Quantity Price periodic Process costs periodic Process Quantity Price periodic Figure 41: Activity Allocation You can transfer overhead costs from Cost Center Accounting either on an activity-allocation or a periodic basis. You can use a PA transfer structure to control the secondary cost element of activity allocation in the value fields for costing-based profitability analysis. 2006/Q2 © 2006 SAP AG. To do this.

all costs can only be allocated one time.Unit 3: Actual Data TFIN22_2 Figure 42: Assessing Cost Center and Process Costs The Overhead Cost Controlling Activity-Based Costing (CO-OM-ABC) application component provides an alternative form of overhead control that is particularly useful when indirect activities generate a large share of the value added to products. which is by defining cycles and executing them on a periodic basis. 114 © 2006 SAP AG. 2006/Q2 . The assessment of cost center costs function allows you to transfer the variances in production cost centers as well as the costs in sales and administrative cost centers to Profitability Analysis. These cycles contain the control information for the assessment and can be maintained in Customizing. You assess cost center and process costs in the same way as done within Overhead Cost Controlling. All rights reserved. Reference values for the transfer can be quantities and values posted in CO-PA or additional cost driver information. As a result. such as the number of sales orders created. The cost centers and processes are credited by the amount allocated. It uses cost drivers to allocate the internal activities to the overhead processes. which can then be transferred to profitability segments using the process assessment function.

2006/Q2 © 2006 SAP AG. which you specified for each segment of the cycle. A cycle can contain the sender cost centers or sender processes from one controlling area and can use the values from either costing-based or account-based Profitability Analysis as tracing factors. and tracing factors. it is a good idea to create several cycles and process them sequentially in the order entered. You should divide your assessment into separate cycles if you want to allocate the different areas of your organization to CO-PA at different times. Each cycle can contain a number of segments. It contains all the relevant information about the senders. you only need to repeat the affected cycles. receiver rules. such as account-based CO-PA and value fields.TFIN22_2 Lesson: Transfer of Overhead Figure 43: Defining and Executing an Assessment Cycle A cycle controls how assessment is processed. The segment describes a combination of senders and receivers that are to be processed together. This also has the advantage that when errors or changes occur. such as costing-based CO-PA. Notice that for performance reasons as well as for technical ones. receivers. The receiver is defined by a combination of characteristic values. In theory. sender rules. All rights reserved. which means a profitability segment. The values are debited to the profitability segment using the assessment cost element. 115 . The sender cost centers or processes are credited in the assessment cost element specified in the segment of the cycle. you could create one cycle for transferring all the overhead costs to Profitability Analysis.

you need to assign update characteristics. such as a sales organization. as a result. When you create the process allocation. 116 © 2006 SAP AG. In this case. Then. 2006/Q2 . In account-based CO-PA. to Profitability Analysis. In Customizing. All rights reserved. which ultimately determine the profitability segments to which the business process costs are allocated. which are used to select the cost drivers. Notice that here you transfer the valuated process quantities and not the activity type quantities as with cost centers. should receive the process costs.Unit 3: Actual Data TFIN22_2 Figure 44: Allocating Processes In the SAP system. In dynamic process allocation. The process quantity is then valuated using the planned price for that process and credited to the cost center as actual data with the allocation cost element that was assigned to the relevant business process. the system displays a dialog box in which you can specify the characteristic values to which you want to allocate the process. Then. you can use a process template to define the formulae and functions that select the cost drivers from Profitability Analysis or other sources to assign the costs most accurately to their cause. you allocate the process costs incurred for individual profitability segments. the costs are debited with the same allocation cost element. you can determine to a great extent. you need to assign this allocation cost element to the required value field in the PA transfer structure CO. you can specify a profitability segment as the receiver by selecting the Profit segment field. which profitability segment used the process and. you assign this process template to characteristics. when you press ENTER. For costing-based CO-PA.

such as the product range and sales area. All rights reserved. When the product is complete. you can post costs. such as production costs and S costs. At the end of the activity. as well as production orders. A third possible use of internal orders or projects is in make-to-order manufacturing. such as the costs of an advertising campaign. projects. You can also use Management Accounting orders to calculate the anticipated values to be able to evaluate the accuracy of your accrual method. You can also transfer the accrued values that are particularly important for progress billing. as well as revenue and sales deductions to the order or project. • Internal orders and projects can be used to control the costs of an internal activity.TFIN22_2 Lesson: Transfer of Overhead Settlement of Orders Figure 45: Settlement of Orders In the SAP system. the costs and revenues can be settled to Profitability Analysis. you credit the accrual costs calculated in CO-PA to a special cost order for accruals. When the costs are actually incurred. you settle internal orders. a customer project or a Management Accounting order to which revenue postings are allowed. The costs of the activity are posted to the order and collected there. If you are handling sales orders. 117 . they are posted to that order as well so that the difference between the anticipated costs and the actual costs can be displayed at the order level. • • 2006/Q2 © 2006 SAP AG. they are settled to the appropriate profitability segments. These objects are used for the various purposes that are relevant to Profitability Analysis. sales orders. First. and run schedules with production cost collectors to profitability segments. currently by manual posting only.

Customizing (1) In a settlement profile. which settlement structure and PA transfer structure to use. you define which receivers are allowed for order settlement. You define a default settlement structure and a default PA transfer structure. When you create an order. In costing-based CO-PA. The system uses this order type to determine which settlement profile and. you need to specify an order type. as a result.Unit 3: Actual Data TFIN22_2 Figure 46: Settling Orders . 118 © 2006 SAP AG. costs are settled to the settlement cost element specified in the settlement structure. All rights reserved. 2006/Q2 . In account-based CO-PA. costs are settled from the original cost elements to the value fields to which they are assigned in the PA transfer structure.

TFIN22_2 Lesson: Transfer of Overhead Figure 47: Settling Orders . PA transfer structures are used in order settlement. An assignment defines which costs (Origin: Cost element groups from debit cost elements) are to be settled to which receiver type (for example. An allocation structure consists of one or several settlement assignments. You can settle by cost element. Settlement structure: During settlement. direct postings from FI. the costs incurred under the primary and secondary cost elements by a sender are allocated to one or more receivers. cost center or order). 2006/Q2 © 2006 SAP AG. All rights reserved. The assignments must be unique: Each cost or revenue element can only occur one time within a PA transfer structure. Each assignment line contains the assignment of one interval or a group of cost or revenue elements to the required value field. you settle using the appropriate original cost element. and internal activity allocations in Management Accounting. When you settle by cost element. 119 . A PA transfer structure must meet the following criteria: • • It must be complete: All the cost and revenue elements that can receive costs or revenues must be assigned to a value field in the PA transfer structure. You have two alternatives in settlement assignment: • • You can assign the debit cost element groups to a settlement cost element. which means the debit cost element is the settlement cost element.Customizing (2) The PA transfer structure contains the assignment of costs and revenues to the value fields in costing-based CO-PA. A PA transfer structure consists of any number of “assignment lines”.

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Lesson: Transfer of Overhead

Exercise 6: Cost Center Assessment
Exercise Objectives
After completing this exercise, you will be able to: • Allocate costs using Cost Center Assessment

Business Example
The costs of a marketing survey conducted by an outside service provider are to be allocated from the marketing cost center to the products, P-101 and P-102. Note: The primary source of the data for CO-PA is normally sales order management billing. The primary source of period costs, such as sales and administration costs, for CO-PA is normally Cost Center Accounting. With cost center assessments, you can allocate responsibility-oriented costs across profitability segments for P&L reporting.

Task:
Post an invoice from the marketing company CEB Berlin against this cost center to pay for a market survey it conducted. AC605-## The credit entry in this case will be posted to the vendor account number, and the debit entry will be posted against the cost center using the external services account number. The posting is made in the company code, 1000. Vendor : Invoice Number: Invoice Amount: Account Number: Account Assignment: 1000 1234## 10,000.00 417000 Marketing Cost Center AC605-## External Services C.E.B Berlin

1.

In the costing-based profitability analysis, apportion a cost assessment for the Cost Center to products P-101 and P-102. The costs should be divided equally between the two products. Create an allocation cycle, CYC-##, starting January 01, XXXX, to allocate the marketing costs to the Marketing Costs value field. Use the assessment cost element, 692000, Marketing Assessments.

2.

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Field Name or Data Type Sender Selection Type CO Area Tracing factor Attach Segment 1. Field Name or Data Type Segment Number/Name Assessment Cost Element Value field Sender Values Share in % Rule for receiver tracing factor

Values 1 (unsplit costs) 1000 1 (costing-based CO-PA)

Values 1 692000 VV380 Posted Amounts 100 Fixed percentages

Enter 50% as the receiver tracing factor for each product. 3. Execute your allocation cycle without the test mode for the current period. Display the actual line item you just created, P-101, in the costing-based and account-based profitability analysis. Which record type was used to post the line item? What is the value in the Marketing Costs field? How many line items have been posted in the account-based or costing-based CO-PA?

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© 2006 SAP AG. All rights reserved.

2006/Q2

123 . AC605-## The credit entry in this case will be posted to the vendor account number. apportion a cost assessment for the Cost Center to products P-101 and P-102. The costs should be divided equally between the two products. The posting is made in the company code. In the costing-based profitability analysis.B Berlin 1. Vendor : Invoice Number: Invoice Amount: Account Number: Account Assignment: 1000 1234## 10.00 417000 Marketing Cost Center AC605-## External Services C. 1000. Accounting → Financial Accounting → Accounts Payable → Document Entry → Invoice: Field Name or Data Type Vendor Invoice Date Posting Date Amount (due to vendor) Account Number D/C Values 1000 Today's date Today's date 10. The credit entry in this case is posted to the vendor account number. All rights reserved.TFIN22_2 Lesson: Transfer of Overhead Solution 6: Cost Center Assessment Task: Post an invoice from the marketing company CEB Berlin against this cost center to pay for a market survey it conducted. 1000. a) Post an invoice from CEB Berlin the Marketing firm against this cost center to pay for a market survey it conducted. and the debit entry will be posted against the cost center using the external services account number. and the debit entry is posted against the cost center using the external services account number. The posting is made in the company code.000.000 417000 Debit Continued on next page 2006/Q2 © 2006 SAP AG.E.

CYC-## . apportion the costs for the Cost Center on products P-101 and P-102. All rights reserved. XXXX. starting January 01. valid as of January 01. to allocate the marketing costs to the Marketing Costs value field. a) In the cost-based profitability analysis. 10. Use the assessment cost element. 2006/Q2 . Create an allocation cycle. 692000. Create an allocation cycle. to allocate the marketing costs to the Marketing Costs value field. 2. 417000. Field Name or Data Type Segment Number/Name Assessment Cost Element Value field Sender Values Share in % Rule for receiver tracing factor Values 1 692000 VV380 Posted Amounts 100 Fixed percentages Values 1 (unsplit costs) 1000 1 (costing-based CO-PA) Enter 50% as the receiver tracing factor for each product.000 0I AC605-## Hint: During your posting. several messages may appear that the account. and assessment result marketing. is relevant for tax. Field Name or Data Type Sender Selection Type CO Area Tracing factor Attach Segment 1. These are warning messages. Continued on next page 124 © 2006 SAP AG. The costs should be divided equally between the two products. CYC-##. Marketing Assessments. Use the assessment cost element. XXXX.Unit 3: Actual Data TFIN22_2 Amount Tax Code Cost Center Post your document. 692000. Select Enter to confirm these.

All rights reserved. 125 . Field Name or Data Type Cost Center Cost Element Receivers Values AC605-## 417000 Products P-101 to P-102 Select the Receiver Tracing Factor tab and enter 50% for each product. Select: Attach Segment: Segment Header Field Name or Data Type Segment Number/Name Assessment Cost Element Value Field Sender Values Share in % Values 1 692000 VV380 Posted Amountsr 100 Values 1 (unsplit costs) 1000 1 (costing-based CO-PA) Values CYC-## 1/1/XXXX Rule for Receiver Tracing Factor Fixed percentages Choose Sender/Receiver.TFIN22_2 Lesson: Transfer of Overhead Accounting → Controlling → Profitability Analysis → Actual Postings → Period End Closing → Transfer Cost Center Costs/Process Costs → Indirect Activity Allocation: Extras → Cycle → Create Field Name or Data Type Cycle Name Start Date Enter: Field Name or Data Type Sender Selection Type CO Area Tracing Factor Attach Segment 1. Continued on next page 2006/Q2 © 2006 SAP AG. Save your cycle and return to the initial assessment screen.

characteristic use). Accounting → Controlling → Profitability Analysis → Information System → Display Line Item List → Actual Field Name or Data Type Record Type Period/Year Entered by Product Values D Current Your user ID P-101 Which record type was used to post the line item? D What is the value for General Marketing Costs? 5000 How many line items have been created in the costing-based or account-based CO-PA? Goto the account-based CO-PA. P-101. Display the actual line item you just created. enter its number in the field provided. Which record type was used to post the line item? What is the value in the Marketing Costs field? How many line items have been posted in the account-based or costing-based CO-PA? a) Execute your allocation cycle without the test mode for the current period. in the costing-based and account-based profitability analysis. P-101. Execute your allocation cycle without the test mode for the current period. 126 © 2006 SAP AG. Execute your cycle for the current period. 2006/Q2 . To execute your cycle. All rights reserved.Unit 3: Actual Data TFIN22_2 3. Reason: No setting for characteristic use in the account-based CO-PA (see Customizing CO-PA. Deselect Test Run but select Detailed Lists. Only 1 line item was created there. Display the actual line item you just created for the product.

Order Number: 2. you will be able to: • Allocate the costs collected on an internal order to profitability analysis Business Example Your sales manager has planned to participate in a number of trade fairs this year. The costs for the trade fairs are collected on internal orders to track the cost for each fair separately from the recurring cost center costs. as the costs will be posted to it. to capture the costs for the Fun & Rec Show in Las Vegas. Order Type: 0450 Exhibitions Short Text: FUN & REC SHOW Business Area: 5000 Profit Center: 1000 Make sure you release the internal order. 127 .00 Cost element: 476000 Continued on next page 2006/Q2 © 2006 SAP AG. Charge costs to the internal order with a journal entry in Financial Accounting. In the settlement information. Task: Create an internal order in the company code. 1. such as research and development. Note: In CO. 1000. or marketing events. So far. All rights reserved. you have incurred the following costs for the Las Vegas trade fair: Amount: 1000. They allow you to view and monitor costs on an alternate controlling object and periodically settle these costs to a cost center or profitability segment. internal orders can be used to collect the costs for specific projects. 001. Create a settlement rule that determines where the costs for your internal order are allocated at the period close. Save the internal order number. you need to specify that the settlement will be made to the material group. The settlement receiver is a profitability segment.TFIN22_2 Lesson: Transfer of Overhead Exercise 7: Internal Orders Exercise Objectives After completing this exercise. This allows you to separate project costs from recurring expenditures.

2006/Q2 . These costs have been paid from bank account. All rights reserved. 0450. process the internal order settlement for the current period to Profitability Analysis. View the line item you created with the settlement of your internal order in CO-PA. What allocation structure is used in the settlement profile? Which PA transfer structure is linked to this settlement profile? 6. In the CO internal order application.Unit 3: Actual Data TFIN22_2 All costs are exempt from tax. Amount settled: 4. Financial Accounting document number: 3. Which value fields were populated? Why? 5. What is the purpose of the PA transfer structure? To which value fields are Total Costs assigned? 128 © 2006 SAP AG. To which settlement profile is this order type assigned? Display the settlement profile settings. 113100. view the settlement configuration for the order type. In the IMG. tax code V0.

129 . you need to specify that the settlement will be made to the material group. All rights reserved. The settlement receiver is a profitability segment. 001. to capture the costs for the Fun & Rec Show in Las Vegas.TFIN22_2 Lesson: Transfer of Overhead Solution 7: Internal Orders Task: Create an internal order in the company code. In the settlement information. 1. Continued on next page 2006/Q2 © 2006 SAP AG. Create a settlement rule that determines where the costs for your internal order are allocated at the period close. Save the internal order number. as the costs will be posted to it. 1000. Order Type: 0450 Exhibitions Short Text: FUN & REC SHOW Business Area: 5000 Profit Center: 1000 Make sure you release the internal order.

tax code V0. click Release to change the system status to FREE. These costs have been paid from bank account. Order number: 2.00 Cost element: 476000 All costs are exempt from tax. you need to specify that the settlement will be made to the material group. So far. select Profitability. To view the profit segment number. Select Settlement Rule. Accounting → Controlling → Internal Orders → Master Data → Special Functions → Order → Create: Field Name or Data Type Order Type Short Text Company Code Business Area Profit Center Values 0450 Fun & Rec Show 1000 5000 1000 Check whether the internal order is released. From the Settlement rule entry screen. Enter Material Group. In the settlement information. 001. 2006/Q2 . From the Distribution Rules screen.Unit 3: Actual Data TFIN22_2 Order Number: a) Create an internal order to capture the costs for the Fun & Rec Show in Las Vegas. If the system status is CRTD. Create a settlement rule that determines where the costs for your internal order are allocated at the period close. Charge costs to the internal order with a journal entry in Financial Accounting. Save the internal order. select Details. 001. Select the Control data tab. you have incurred the following costs for the Las Vegas trade fair: Amount: 1000. go back to the distribution rule and choose Hierarchy. Continued on next page 130 © 2006 SAP AG. The settlement receiver is a profitability segment. All rights reserved. 113100. and select Enter to continue.

you have incurred the following costs for the Las Vegas trade fair: Amount:1000. Financial Accounting document number: 3. 131 . Values 113100 Credit 1000 476000 Debit 1000 V0 Your internal order number Values Today's date Continued on next page 2006/Q2 © 2006 SAP AG. All rights reserved. Accounting → Financial Accounting → General Ledger → Posting → Enter G/L Account Document Header Field Name or Data Type Document Date Row 1: G/L Account D/C Amount Tax Code Order Row 2: Field Name or Data Type G/L Account D/C Amount Post your document. 113100. tax code V0. In the CO internal order application. These costs have been paid from the bank account. So far. process the internal order settlement for the current period to Profitability Analysis.TFIN22_2 Lesson: Transfer of Overhead Financial Accounting document number: a) Charge costs to the internal order with a journal entry in Financial Accounting.00 Cost Element: All costs are exempt from tax.

Marketing Activities . In the IMG. Which value fields were populated? Why? a) Accounting → Controlling → Profitability Analysis → Information System →Display Line Items → Actual: Field Name or Data Type Record Type Period/Year Entered by Values C Current Your user ID Values Your order number Current Current Not selected Which value fields were populated? Why? Settings → Layout → Change Select Marketing Activities from the column set. 5. view the settlement configuration for the order type. What allocation structure is used in the settlement profile? Continued on next page 132 © 2006 SAP AG. To which settlement profile is this order type assigned? Display the settlement profile settings. 2006/Q2 . process the internal order settlement for the current period to Profitability Analysis. Accounting → Controlling → Internal Orders → Period-End Closing → Single Functions → Settlement → Individual Processing: Field Name or Data Type Purchase Order Number Settlement Period Fiscal Year Test Run Amount settled: 1000 4. All rights reserved. 0450.Based on the configuration of the PA transfer structure that determines which costs are settled and to which value field. View the line item you created with the settlement of your internal order in CO-PA.Unit 3: Actual Data TFIN22_2 Amount settled: a) In the CO internal order application.

TFIN22_2 Lesson: Transfer of Overhead Which PA transfer structure is linked to this settlement profile? a) To which settlement profile is this order type assigned? IMG:Controlling → Internal Orders → Order Master Data → Define Order Types: Select 'Detail' for the order type 0450. 133 . To which value fields the Total Costs are assigned. The source – cost element group. The settlement profile is 100. Which PA transfer structure is linked to this settlement profile? 10 6. IMG: Controlling → Profitability Analysis → Flows of Actual Values → Order and Project Settlement → Define PA Transfer Structure for Settlement Select : Structure 10 → Assignment lines Select: All costs → Value fields VV410 – Marketing Activities 2006/Q2 © 2006 SAP AG. What is the purpose of the PA transfer structure? To which value fields are Total Costs assigned? a) The transfer structure determines the value fields to which costs will be settled to. It consists of: The settlement assignment – groups costs together. Display the settlement profile settings. All rights reserved. Which allocation structure is used in the settlement profile? IMG: Controlling → Internal Orders → Actual Postings → Settlement → Maintain Settlement Profiles: Select Profile 100 The CO allocation structure relevant for account-based CO-PA is A1. The value fields to which each assignment group is settled.

2006/Q2 . All rights reserved.Unit 3: Actual Data TFIN22_2 134 © 2006 SAP AG.

Continued on next page 2006/Q2 © 2006 SAP AG. Controlling has set a rate of $100. will debit the activity receiver and credit the cost center. EH##. Task 2: 1. All rights reserved. you can use activities to allocate the costs from cost centers to Profitability Analysis. The secondary cost element. Task 1: 1. Save the activity type. In Cost Center Accounting. The Product Engineering group spent 10 hours last month in improving product P-101. choose Planning → Activities/Prices to plan a rate of 100 for the activity type. The activities in the SAP system are normally defined as the productive output of a cost center and can be measured in time increments or units. you will be able to: • Allocate the costs from Overhead Cost Accounting to CO-PA using activity types Business Example Your R&D cost center manager wants to allocate R&D costs to products whenever possible. and the cost center. Note: In addition to cost center assessments. 0. The development department plans to spend 1200 hours R&D time on blue bicycles.TFIN22_2 Lesson: Transfer of Overhead Exercise 8: Activity Allocation Exercise Objectives After completing this exercise. Activity prices can be planned manually or calculated by the system based on planned or actual costs.00 per development hour. 621000. The activity type category is 1 because the costs are allocated manually. 4500. Create the activity type EH## for the development time in hours. which credits the sending cost center and debits one or more receivers. Validity period from 1 January of the current year to 31 December 9999. All the cost center categories should be able to use this activity. 135 . Plan the activity price for this activity type for the current fiscal year in the plan version. Activities can be allocated using a process called Direct Activity Allocation.

and the business area 1000. The screen variant. EH## Recipient: Profitability segment (product. Save the document. 1000) Hours consumed: Document number: Task 4: 1. P-101. in the company code. Profitability Segment/Cost Center. 4500. All rights reserved. Process the actual activity allocation for the current period to the product. also in Cost Center Accounting. 1000. company code. 2006/Q2 . allows you to allocate the costs from a cost center to a profitability segment using an activity type. Which record type was used to post the line item? Which value field has been debited with the activity allocation? Why? 136 © 2006 SAP AG. 1000. Sender: Cost Center. Display the line items you have created during the allocation in CO-PA. Activity Type. business area. P-101.Unit 3: Actual Data TFIN22_2 Task 3: 1.

Save the activity type. The activity type category is 1 because the costs are allocated manually. Plan the activity price for this activity type for the current fiscal year in the plan version. Create the activity type EH## for the development time in hours. All rights reserved. All the cost center categories should be able to use this activity. Accounting → Controlling → Cost Center Accounting → Master Data → Activity Type → Individual Processing → Create: Save the activity type. 0. 621000. The activity type category is 1 because the costs are allocated manually. The secondary cost element. Validity period from 1 January of the current year to 31 December 9999. will debit the activity receiver and credit the cost center. Validity period from 1 January of the current year to 31 December 9999. All the cost center categories should be able to use this activity. will debit the activity receiver and credit the cost center. The secondary cost element. a) Create the activity type EH## for the development time in hours. The development department plans to spend 1200 hours R&D time on blue bicycles. 621000. 137 . Name: Development Hours Activity Unit CCtr Category: ATyp Category: Allocation Cost Element: Price Indicator: H * 1 621000 3 Task 2: 1.TFIN22_2 Lesson: Transfer of Overhead Solution 8: Activity Allocation Task 1: 1. Continued on next page 2006/Q2 © 2006 SAP AG.

EH##. 4500. EH##. All rights reserved. choose Planning → Activities/Prices to plan a rate of 100 for the activity type. Select Overview and enter the following: Plan Activity: Fixed Price: Save your plan price. The screen variant. in the company code. Controlling → Cost Center Accounting→ Planning → Activity Output/Prices→ Change: Field Name or Data Type Version Period Fiscal Year Cost Center Activity Type Select Form-based. 1000.Unit 3: Actual Data TFIN22_2 In Cost Center Accounting. choose Planning → Activities/Prices to plan a rate of 100 for the activity type. P-101. also in Cost Center Accounting. and the business area 1000. Sender: Cost Center. allows you to allocate the costs from a cost center to a profitability segment using an activity type. 4500. The development department plans to spend 1200 hours R&D time on blue bicycles. 1000. Process the actual activity allocation for the current period to the product. 4500. 0. Profitability Segment/Cost Center. Save the document. In Cost Center Accounting. company code. business area. 1200 100 Values 0 1 –12 Current 4500 EH## Task 3: 1. P-101. EH## Recipient: Profitability segment (product. and the cost center. and the cost center. 1000) Hours consumed: Continued on next page 138 © 2006 SAP AG. 2006/Q2 . Activity Type. a) Plan the activity price for this activity type for the current fiscal year in the plan version.

Display the line items you have created during the allocation in CO-PA. in the company code. Field Name or Data Type Send. Save the document. 1000. P-101. All rights reserved.TFIN22_2 Lesson: Transfer of Overhead Document number: a) Process the actual activity allocation for the current period to the product.Type) Total Quantity: Receiver: Values 4500 EH## 10 Choose the profitability segment Select Profitability segment and choose Enter. also in Cost Center Accounting. CCtr (Sender Cost Center) SAtyTyp (Sender Act. Enter product P-101 for Company Code 1000 and Business Area 1000. Document number: Task 4: 1. 1000. and the business area. 139 . Which record type was used to post the line item? Continued on next page 2006/Q2 © 2006 SAP AG. Post your entry. You can use a screen variant to allocate the costs from a cost center to a profitability segment using an activity type. Accounting → Controlling → Cost Center Accounting → Actual Postings → Activity Allocation → Enter: Select the Profit Segment/Cost Center screen variant and choose Individual Entry.

CO. All rights reserved. 140 © 2006 SAP AG. Marketing Activities. The PA transfer structure. Which record type was used to post the line item? Accounting → Controlling → Profitability Analysis → Information System →Display Line Items → Actual Record Type: Period/Year : Entered by : Product: D Current Your user ID P-101 Which value field has been debited with the activity allocation? Why? Settings → Layout → Change Select Marketing Activities from the column set. is referenced during the activity allocation to CO-PA.Unit 3: Actual Data TFIN22_2 Which value field has been debited with the activity allocation? Why? a) Display the line items you have created during the allocation in CO-PA. 2006/Q2 .

141 . All rights reserved.TFIN22_2 Lesson: Transfer of Overhead Lesson Summary You should now be able to: • Explain the transfer and allocation of costs • Explain the settlement of orders 2006/Q2 © 2006 SAP AG.

2006/Q2 . All rights reserved.Unit Summary TFIN22_2 Unit Summary You should now be able to: • Explain the flow of actual data in CO-PA • List the sources of value fields • Explain the transfer and allocation of costs • Explain the settlement of orders 142 © 2006 SAP AG.

In . Fill in the blanks to complete the sentence. Determine whether this statement is true or false. All rights reserved. Fill in the blanks to complete the sentence. True False in the costing-based CO-PA contain the amounts and quantities on which you want to report. The provides an alternative form of overhead control. You can transfer the overhead costs from Cost Center Accounting either on basis. costs are settled to the settlement cost element specified in the settlement structure. How are production variances calculated? 3. application component 8. Fill in the blanks to complete the sentence.TFIN22_2 Test Your Knowledge Test Your Knowledge 1. 6. Fill in the blanks to complete the sentence. 143 . and discounts are transferred to profitability segments in Profitability Analysis at the point of billing in Sales Order Management. □ □ 4. One of the important tasks in Customizing for the costing-based CO-PA is to assign your costs and revenues to the required value fields. an activity-allocation or a Fill in the blanks to complete the sentence. 5. 2. What all can you settle in SAP R/3? 7. 2006/Q2 © 2006 SAP AG.

sales orders (SD). you settle internal orders (CO).Test Your Knowledge TFIN22_2 Answers 1. All rights reserved. 7. Value fields in the costing-based CO-PA contain the amounts and quantities on which you want to report. 3. What all can you settle in SAP R/3? Answer: In SAP system. costs are settled to the settlement cost element specified in the settlement structure. In account-based CO-PA. You can transfer the overhead costs from Cost Center Accounting either on an activity-allocation or a periodic basis. The Activity-Based Costing application component provides an alternative form of overhead control. Answer: True One of the important tasks in Customizing for the costing-based CO-PA is to assign your costs and revenues to the required value fields. 4. projects (PS). Revenues and discounts are transferred to profitability segments in Profitability Analysis at the point of billing in Sales Order Management. as well as production orders. Answer: periodic 6. One of the important tasks in Customizing for the costing-based CO-PA is to assign your costs and revenues to the required value fields. Answer: Revenues 2. Answer: account-based CO-PA 144 © 2006 SAP AG. Answer: Value fields 5. How are production variances calculated? Answer: The production variances are calculated as the difference between the actual costs of goods manufactured and standard costs. Answer: Activity-Based Costing 8. 2006/Q2 .

and report forms 2006/Q2 © 2006 SAP AG. reports. 145 . All rights reserved.TFIN22_2 Course Summary Course Summary You should now be able to: • • • • Understand the functions in Profitability Analysis and obtain an insight on how to implement the component Set up the structures of an operating concern and examine characteristic derivation and valuation Explain how the integration works between Sales Order Management. Financial Accounting. and Management Accounting Create planning layouts.

Course Summary TFIN22_2 146 © 2006 SAP AG. All rights reserved. 2006/Q2 .

Appendix 1 Appendix Figure 48: Appendix Figure 49: Master Data : Additional Topics 2006/Q2 © 2006 SAP AG. 147 . All rights reserved.

use a characteristic value (such as a product group) as your basis. All rights reserved. This conversion can occur in two different ways. 148 © 2006 SAP AG. you can define the standard UoM in such a way that the UoM transferred from the source quantity field's previous applications can be converted into the standard CO-PA UoM for all materials. When you do this. either as a base UoM or as an alternative UoM. This straightforward feature enables you to compare the different UoMs in CO-PA.Appendix 1: Appendix TFIN22_2 Figure 50: Working with a Standard Unit of Measure Working with standard units of measure (UoM) allows you to convert different UoMs into a single UoM of universal application. ensure that the UoM that is selected as standard is also maintained in the material master for all materials. To do this. First. 2006/Q2 . you can define a comparable standard UoM using the methods for deriving characteristics. If you cannot define a uniform standard UoM due to the heterogeneity of the materials affected.

TFIN22_2 Appendix 1: Appendix Figure 51: Aggregating the Tracing Factor Normally. you cannot allocate the values according to their cause. Note that if these tracing factors are subject to significant periodic fluctuations. 149 . All rights reserved. periodic allocation is carried out using tracing factors defined specifically in the period concerned. This means that the periodic sender values posted are settled on the basis of the tracing factors defined in this period. Figure 52: CO-PA Derivation: (1) 2006/Q2 © 2006 SAP AG.0A. you can use the Aggregated tracing factor indicator to eliminate the fluctuations between periods. As of Release 4.

or the value zero. 150 © 2006 SAP AG. The dependant characteristics. although they are not limited to this application. By supplementing the values determined by automatic mapping. customer. With derivation rules. All rights reserved. Derivation is not always successful.Appendix 1: Appendix TFIN22_2 Characteristic derivation refers to the system's attempts to determine the characteristic values for the characteristics for all COPA-relevant transactions (supplementing the automatic mappings). distribution channel. Figure 53: CO-PA Derivation: (2) Derivation rules are used to determine characteristic values through user-defined logic. They are frequently used with user-defined characteristics. For every COPA-relevant transaction. The total of all characteristic values used at segment level for a particular business transaction defines the respective profitability segment. characteristic values (also known as “target values”) are determined directly based on the values of other characteristic values (known as “source values”). the system will attempt to derive a characteristic value for each and every characteristic in the operating concern if the derivation configuration is complete. derivation can access additional information (characteristic values) both within and outside the originating transaction. The profitability segment is the CO-PA account assignment object. Unsuccessful derivation for a characteristic results in the posting of a blank or unassigned characteristic value. and division are all specified. such as the customer group and the sales district can be derived only if the characteristic values for the independent characteristics. 2006/Q2 . sales organization.

TFIN22_2 Appendix 1: Appendix As with other derivation steps. Figure 54: Special Characteristics Figure 55: Product Hierarchy 2006/Q2 © 2006 SAP AG. the system will issue an error message when CO-PA derivation is performed. or at all times (time-independent). 151 . when a sales organization is 1000). Unlike other derivation steps. If a value cannot be determined by the rule entries. If a CO-PA derivation rule is not maintained properly. An incorrect derivation rule may prevent billing documents being released to accounting. All rights reserved. derivation rule entries can be configured so that they apply at a specific interval or time (time-dependent). Derivation rules can be set up in sequence with other derivation steps and methods to produce complex derivation logic. derivation rules can also be configured to produce an error or to ignore this failure and proceed. derivation rules can be configured to apply to either all situations or only when certain conditions are met (for example.

2006/Q2 . If you simply choose this field from the reference table. enter all the valid product hierarchy elements for all three characteristics. In CO-PA. WWPH2. the Information System cannot recognize its encrypted hierarchical structure.Appendix 1: Appendix TFIN22_2 The product hierarchy entered in the material master is contained in an 18-character field that is logically divided into different levels. the first two with the length 5 and the third with the length 8. Figure 56: Transfer "Product Hierarchy" before Rel. Level 1' CHAR 5 WWPH2 ‘Product Hierarchy. By maintaining the appropriate derivation table entries. you need to define the following three characteristics for these three levels (in transaction KEA0): WWPH1 ‘Product Hierarchy. 4. WWPH1. as you would for other characteristics. This means that the first level of the product hierarchy is of the length 5. This means that you can drill down only on one level of the hierarchy. the tables MARA or MVKE. see SAP Note 62690. and WWPH3 (transaction KES1). you need to inform the system that the characteristics defined above are to be supplied with the values from a product hierarchy. In CO-PA. Level 2' CHAR 10 (5 + 5 !) WWPH3 ‘Product Hierarchy.5 If you want to drill down through all the levels of the product hierarchy. Example: The product hierarchy contains three parts. For more information. Level 3' CHAR 18 (5 + 5 + 8 !) Next. you need to maintain master data for your user-defined fields. For the above example. the second one of the length 10 (because it is composed of the first two parts) and the third level is of the length 18. you can supply these levels automatically with the product hierarchy contained in the material master. you need to represent each of the individual levels as a separate characteristic in CO-PA. All rights reserved. 152 © 2006 SAP AG.

you do not need to maintain any characteristic values or derivation rules when you adopt the characteristics from an SAP table. you can transfer the levels of the “Product hierarchy” characteristic to CO-PA from the material master.5 (1) As of Release 4. In contrast to when you define your own characteristics. The levels of the product hierarchy are defined in Customizing under: Logistics General→ Basic Data Logistics: Material Master → Material → Data Relevant to Sales → Define Product Hierarchies. With the CO-PA Customizing function “Transfer from SAP table”. 153 . The PAPH1 and PAPH2 fields are generated in CO-PA to correspond to the product hierarchy levels. 2006/Q2 © 2006 SAP AG. All rights reserved.TFIN22_2 Appendix 1: Appendix Figure 57: Transfer “Product Hierarchy” Release 4. This enables you to evaluate the individual hierarchy levels in reporting.5. you can transfer the required fields from table MVKE to CO-PA as characteristics. You can still use any user-defined characteristics for the product hierarchy that you were already using.

you do not need to maintain any characteristic values or derivation rules when you adopt the characteristics from an SAP table. In contrast to when you define your own characteristics.Appendix 1: Appendix TFIN22_2 Figure 58: Transfer “Region” from an SAP Table As of Release 4.5. 154 © 2006 SAP AG. This field is composed of the characteristic values of country and region. All rights reserved. you can transfer the “Region” field from the customer master to use it as a characteristic in Profitability Analysis. You can still use the “Region” characteristic (possibly a user-defined characteristic) that you were already using. 2006/Q2 . and can be transferred from the customer master (table KNA1). The PAREG field is available through the “Transfer from SAP table” function in CO-PA Customizing.

2006/Q2 © 2006 SAP AG. HIE02. In other Profitability Analysis transactions. 155 . and HIE10. All rights reserved. the customer hierarchy is derived uisng the customer.TFIN22_2 Appendix 1: Appendix Figure 59: Customer Hierarchies In Profitability Analysis. When you transfer sales orders or billing documents. You can add these characteristics to your operating concern's data structure from the PAPARTNER structure. you use particular characteristics to map the customer hierarchy from SD. and division characteristics. Each individual level of the customer hierarchy is assigned to a separate CO-PA characteristic. the customer hierarchy determined by SD is automatically transferred to CO-PA with the order or document. sales organization. HIE01. distribution channel. The customer hierarchy category that is assigned to the corresponding operating concern should always be taken into account.

Furthermore. a further distinction is made between personnel 156 © 2006 SAP AG. All rights reserved. For both the standard partner functions and the user-defined partner functions. 2006/Q2 . Certain standard partner functions are available for this purpose. The customer-defined partner functions can also be transferred to the Profitability Analysis data structures as characteristics.Appendix 1: Appendix TFIN22_2 Figure 60: Determination of the division in SD Figure 61: Partner functions You can use the partner functions from SD as characteristics in Profitability Analysis. A clear distinction must be made between the standard partner functions and the user-defined partner functions. you can define your own partner functions in SD.

These are: • • Revenues and sales deductions. which contains the costs of goods sold. the G/L account for which was created in CO with the cost element types 11 = “Revenue” or 12 = “Sales deduction” Conditions that are defined as statistical in SD. Personnel representative functions do not have any value tables. 2006/Q2 © 2006 SAP AG. Inactive conditions are not transferred. 157 . Even so. which refer to the customer master data table or the vendor master data tables. Statistical conditions do not lead to a posting to a G/L account. For an in-depth explanation of how to transfer partner functions from SD to CO-PA. Figure 62: Value Flows Figure 63: SD/CO-PA interface (transfer of sales revenue/revenue deductions) The system accesses only those condition types in SD that have been assigned to a CO-PA value field in CO-PA Customizing. which signify the customer master data table and the KNA1 or LFA1 vendor master data tables. If all the conditions in an item are inactive. such as the VPRS condition type. are assigned to the corresponding master data tables (KNA1 or LFA1) as value tables. Partner functions. The sales employee is an example of a personnel representative function. In addition. note that only active conditions are transferred to CO-PA. see SAP Note 36557. note that only certain condition types in SD can be transferred to CO-PA. which is available in the standard system.TFIN22_2 Appendix 1: Appendix representative functions and partner functions. the order item is not transferred to CO-PA. All rights reserved.

the plus and minus signs (+/-) have to be processed. 158 © 2006 SAP AG. all signs are reversed. Note that this solution requires condition types that are managed as negative amounts in SD. All rights reserved. data has to be transferred to CO-PA using order settlement. 2006/Q2 . to be assigned to other CO-PA value fields as positive condition types. Since revenues can be transferred to CO-PA from both systems. The revenues in the SD component are managed as positive amounts. The reason for this procedure is that the revenues in the different SAP applications have different plus and minus (+/-) signs. Only in CO-PA reporting are sales deductions subtracted from the gross revenues. such as special revenues.Appendix 1: Appendix TFIN22_2 For make-to-order production (the VBRP-VBELV field in the billing document is filled). such as discounts. but in the FI component they are negative amounts. For credit memos (billing type G2). Figure 64: SD/CO-PA Interface: Plus/Minus Sign Logic All values are transferred to CO-PA as positive.

159 . 2006/Q2 © 2006 SAP AG. Copying the revenues and costs relating to incoming orders into CO-PA so that an expected result can be derived from the orders that belong to the current period (taxable under the indicator “processing type”).TFIN22_2 Appendix 1: Appendix Figure 65: FI/CO-PA Interface versus SD/CO-PA Interface: Plus/Minus Sign Logic Figure 66: Project System: New Analyses in CO-PA Settlement of incoming sales orders for each billing element. All rights reserved. Order balance = settled incoming orders together with consideration of revenues and of the cost of sales already billed.

make sure that accrued cash discounts and actual cash discounts are stored in two different value fields. you have two options. Reporting must be designed accordingly. In both cases. Actual cash discount will now be assigned to the customer level to trace your actual customer profitability. 160 © 2006 SAP AG. First.Appendix 1: Appendix TFIN22_2 You can monitor the history of the value of incoming orders by distinguishing: • • • • New orders Changed orders Cancellations Change of plans Analysis is possible in CO-PA and in the Information System. Customizing settings . All rights reserved.See the release notes. you can use automatic account assignment to post actual cash discount at a higher level into CO-PA. you can start the “Profit and Loss Readjustment” program (SAPF181) in your period-closing activities as shown above. 2006/Q2 . the accrued discount from the billing document is transferred to costing-based CO-PA using a statistical “Cash Discount” condition. Figure 67: How to Compare Estimated Values with Actuals? When the billing document is released to Accounting. Second. The cash discount is calculated during the run of the payment program in FI. To transfer the actual cash discount to CO-PA.

In cases where you use both valuation views but require details for only one. 2006/Q2 © 2006 SAP AG. it is a good idea to perform top down distribution just for this view. Currently. All rights reserved. This allows you to reduce runtimes in top down distribution and avoid generating unnecessarily large volumes of data. in top down distribution for actual data. individual valuation views can be processed separately within a top down valuation run.TFIN22_2 Appendix 1: Appendix Figure 68: Top Down Distribution of Single Valuation Views Previously. the data used to be distributed for all the valuation views from legal valuation and profit center valuation. 161 .

All rights reserved. in a single run. This eliminates the need to re-enter the same parameters for separate runs for each individual record type. Figure 70: Specifying the Currency Type for Reference Data 162 © 2006 SAP AG. you can concurrently distribute data from several record types. 2006/Q2 .Appendix 1: Appendix TFIN22_2 Figure 69: Top Down Distribution of Various Record Types With top down distribution.

If you choose “Cumulate Record Type”. Processing observes the sequence in which the record types are entered for the multiple selection. 163 . This means that the data is processed as if the same record type applied.TFIN22_2 Appendix 1: Appendix Top down distribution offers you more flexibility when entering reference data.) 2006/Q2 © 2006 SAP AG. All rights reserved. you can select different record types as reference data. the number of record types needs to be the same for the actual data and the reference data. Figure 71: Reference Data with Various Record Types In top down distribution. you can now indicate a fixed reference currency – the company code currency or the operating concern currency. If the record type is not cumulated. see the following section). Instead of automatically applying the respective currencies of the reference data. (This example is also found in the F1 Help documentation. You can specify whether the reference data for the different record types should be cumulated or handled separately. Actual data with the first record type is thus distributed in accordance with the reference data of the record type occurring first in the sequence (for a detailed example. the reference data is summarized at record type level.

2006/Q2 .Appendix 1: Appendix TFIN22_2 Figure 72: Aggregating Record Types . All rights reserved.Example Additional Costing: Aggregation without Transaction Type 100 = 1000*10/ (10+40+50) 400 = 1000*40/ (10+40+50) 500 = 1000*50/ (10+40+50) 3000 1600 = 2000*80/ (80+20) 400 = 2000*20/ (80+20) Additional Costing: Aggregation with Transaction Type 360 = 1000*(10+80) / ((10+80)+(40+50+20)+50) 440 = 1000*(40+50+20) / ((10+80)+(40+50+20)+50) 200 = 1000*50 / ((10+80)+(40+50+20)+50) 1080 = 3000*(10+80) / ((10+80)+(40+50+20)+50) 1320 = 3000*(40+50+20) /((10+80)+(40+50+20)+50) 600 = 3000*50 / ((10+80)+(40+50+20)+50) 720 = 2000*(10+80) / ((10+80)+(40+50+20)+50) 880 = 2000 *(40+50+20) /((10+80)+(40+50+20)+50) 400 = 2000 *50 / ((10+80)+(40+50+20)+50) 164 © 2006 SAP AG.

All rights reserved. From a functional perspective. Events can influence the data of an entire plan or be defined with reference to specified characteristics. As of Release 4. an event can be seen as a revaluation key linked to a specific length of time. such as a specific region. events can be taken into account in manual and automatic sales and profit planning. can have a short-term influence on the sales of products. 165 . such as special sales campaigns.TFIN22_2 Appendix 1: Appendix Figure 73: Event Planning with Object-Dependent Revaluation Key Events. Figure 74: Additional Functions 2006/Q2 © 2006 SAP AG.5.

You can add new entries in the SAP spreadsheet only in the lines below the totals line. To display possible entries. which is used to transfer data to R/3 Enterprise Further Excel spreadsheets in which the planner processes the data Macros are used to transfer data between the sheets. 166 © 2006 SAP AG. You cannot delete columns or move cells at this stage.Appendix 1: Appendix TFIN22_2 Figure 75: Recommendations on How to Use Excel (1) When you define your Excel template. you should be aware of the special features: • • • • You cannot make any further alterations to the position of the data in Excel when planning. All rights reserved. you should distinguish between two types of spreadsheet in Customizing: • • An SAP spreadsheet. 2006/Q2 . When you plan with the SAP spreadsheet. you can use the button in the R/3 environment designed for this purpose. All other R/3 planning functions require you to select the required line in Excel and to perform the required function in the R/3 menu bar.

167 .TFIN22_2 Appendix 1: Appendix Figure 76: Recommendations on How to Use Excel (2) Due to the restrictions of the SAP spreadsheet. All rights reserved. After you have finished working on the appropriate record. You can use all the Excel functions to create data. it is good idea to test your solution outside of R/3 Customizing first and then transfer it using Cut and Paste. For more information. a procedure can be followed in which data is copied from the SAP sheet to a different Excel spreadsheet. data is transferred back to the SAP spreadsheet using a macro. depict data with graphics or calculate data using models. 2006/Q2 © 2006 SAP AG. Note: When you develop the macro. see the appropriate example in the documentation.

a dialog box appears prompting you to select the attributes to be displayed in the additional columns of the report list. The “City” attribute was selected in the above example.Appendix 1: Appendix TFIN22_2 Figure 77: Using Attributes to Display More Information In previous releases. 2006/Q2 . Finally. such as the key. The characteristic name is displayed in the above example. If you select the lead column and choose “Settings → Characteristic display → Lead column”. or both. You can now use attributes to display further information from the characteristic master data tables in the lead column. All rights reserved. 168 © 2006 SAP AG. characteristic name. choosing “Extras → Attributes” allows you to display a dialog box showing all the attributes for a characteristic. it was possible only to determine how the lead column should be displayed. Choosing “Settings → Characteristic display” allows you to determine how characteristics are displayed in the lead column.

Transaction data is produced by the transactions in R/3 Enterprise. cannot be transported in this way. Normally. In addition. Transporting indicates the SAP process of moving items between clients within an instance and among instances. All rights reserved. and production activities. there is a 1:1 ratio between R/3 instances and database servers. which are client-independent. configuration data can be transported between clients within or among instances. 169 . items (such as objects and data) are collected into transportable bundles. which are used for different tasks.TFIN22_2 Appendix 1: Appendix Figure 78: The Transport Concept (1) Each independent installation of R/3 is known as an R/3 instance. Master data should be maintained on the user side of system. Configuration data represents the settings that define transactions for R/3 Enterprise. integration testing. unit testing. there are at least three instances for each SAP project: for development. and backups. The DDIC contains objects. 2006/Q2 © 2006 SAP AG. such as tables. programs. Normally. development. and transaction data. such as “playgrounds”. configuration data. Master data and transaction data. There are normally several clients in any instance. With transporting. The technical operating level of an instance is known as the data dictionary (DDIC). Data can be classified as master data. on the other hand. However. This means they pertain to all the clients in an instance. Each operating entity within an instance is called a “client”. Certain objects contain data that is client-dependent. they do not have to be transported between clients since they are client-independent. The way in which the clients and instances are used in a project is known as a client strategy. which are then processed at the operating system level by a systems administrator. and data elements.

on the other hand. and data elements. programs. items (such as objects and data) are collected into transportable bundles. The way in which the clients and instances are used in a project is known as a client strategy. such as “playgrounds”. The technical operating level of an instance is known as the data dictionary (DDIC). Master data should be maintained on the user side of system. Transporting indicates the SAP process of moving items between clients within an instance and among instances. However. Certain objects contain data that is client-dependent. With transporting. Each operating entity within an instance is called a “client”. Normally. they do not have to be transported between clients since they are client-independent. Normally. There are normally several clients in any instance which are used for different tasks. which are client-independent. such as tables. development. configuration data can be transported between clients within or among instances. Master data and transaction data. cannot be transported in this way. 2006/Q2 . which are then processed at the operating system level by a systems administrator. integration testing. and backups. Configuration data represents the settings that define transactions for R/3 Enterprise. This means they pertain to all the clients in an instance. there are at least three instances for each SAP project: for development. there is a 1:1 ratio between R/3 instances and database servers. and production activities. and transaction data. All rights reserved. 170 © 2006 SAP AG. unit testing. configuration data. The DDIC contains objects.Appendix 1: Appendix TFIN22_2 Figure 79: The Transport Concept (2) Each independent installation of R/3 is known as an R/3 instance. In addition. Data can be classified as master data. Transaction data is produced by the transactions in R/3 Enterprise.

This approach is encouraged for small configuration changes. All rights reserved. This transport tool can transport all or some parts of an operating concern. such as reports. report line structures. Manually created transports are triggered by an option in the Table View menu. line item layouts. The change requests can be transported with standard functions. Option 1: Most CO-PA Customizing changes are automatically included in change requests when the change management system is active for a client. 171 . Option #3: This tool facilitates the transport and ensures consistency in the development of CO-PA. that configuration which is modified through view maintenance) can be selectively added to manually triggered transports. forms. Notes: Other such objects are listed below. allowing for a number of ways to accomplish the required goals. as not all Customizing settings create change requests automatically. Option 4: Copying of certain items. However. without going through any CTS procedures at all. Option 2: Most configuration which takes the form of entries in a table (technically speaking. from client to client within an instance and within an operating concern is possible with an import tool.TFIN22_2 Appendix 1: Appendix Figure 80: Transports in CO-PA The transport function for CO-PA is flexible and sophisticated. deletions of mappings must be transported with this option. such as mappings of condition types. Note: Not all Customizing settings can be transported using this option. Note: This option is for transporting selected entries in a table. Again. and planning layouts. especially deletions. 2006/Q2 © 2006 SAP AG. only some configuration can be transported in this manner.

However. It is recommended that you regenerate the operating concern and summarization levels in the target after transporting any configuration changes. The special transport tool can transport Customizing data separately or together. All rights reserved. This ignores any client-independent objects. the number intervals themselves have to be transported separately. 2006/Q2 . It is a good idea to use the same number range intervals in all instances to avoid possible conflicts as a result of transports. 172 © 2006 SAP AG. such as number range groups and plan structures Note that number range groups and their assignments to record types are transported with the transport tool. • • If the receiver is a client in a different SAP instance. This ensures that all the necessary items in the DDIC are updated for the change.Appendix 1: Appendix TFIN22_2 Figure 81: CO-PA Transport Tool – Operating Concern The method used to process transports generated by the three CTS-relevant transport options (remember that this excludes the import tool) depends on the location of the receiver. You can transport the following objects: • • • • • Client-independent structures for data structures and summarization levels Client-dependent configuration for actual postings and planning Derivation and valuation configuration pieces Table entries for check tables and derivation rules Miscellaneous. If the receiver is a client in the same instance. then a client has to be copied in accordance with the transport request. then the standard system-to-system transport method is required to process the transport(s).

TFIN22_2

Appendix 1: Appendix

Figure 82: Authorization Concept

The authorization concept in the ERP system can be described as follows: • SAP delivers certain authorization objects with the standard system. These authorization objects consist of up to 10 fields, each of which represents an element that has to be protected, such as “Operating concern”, “Form”, and “Activity”.

Authorizations are defined by selecting an authorizations object and assigning corresponding values to the relevant fields. Authorizations contain specific combinations of values that are to be allowed for the fields of an object during a transaction that accesses that particular object. You can summarize different authorizations in one profile, and these authorizations can be assigned either to the users directly or to profiles. (These profiles can then be assigned to users or more compex profiles.) These frequently represent a collection of all the authorizations an individual needs to perform the job. A user can have more than one assigned profile. This means that it is possible to define profiles as a set of duties and then assign the profiles to all persons by the duties they perform or are responsible for.

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Appendix 1: Appendix

TFIN22_2

Figure 83: Authorization Objects in CO-PA

Profitability Analysis uses the standard R/3 functions for authorizations. A number of predefined authorization objects are shipped with the standard system. You can use these to create authorizations and profiles and protect the Customizing and application functions in the CO-PA components. For example, most CO-PA users will be authorized only to enter planning data and execute reports. Cost accountants may be allowed to perform cost center assessments and other allocations to CO-PA. Other support employees may also be authorized to create line items directly, update derivation rule entries, or make assignment changes. To restrict data in CO-PA, you need to create custom authorization objects for certain characteristics, value fields, and key figures. The default settings for an operation concern state that all data is unprotected (freely accessible) at data level until a custom authorization object is created for a field or combination of fields. For example, you can create an authorization object to protect information about individual sales employees (such as sales commission) or about certain product costing information. Different authorization objects are used for planning data and actual data. If you want to protect both data types, you have to create two objects. R/3 Enterprise delivers the standard profile, K_RKE_ALL, which contains full authorizations for all the delivered CO-PA authorization objects. This means that a user with this profile can perform any function in CO-PA, provided that no custom authorization objects have been created. If objects have been created, then authorizations for them have to be created and added to this or another assigned profile.

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© 2006 SAP AG. All rights reserved.

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Appendix 1: Appendix

Figure 84: External Data Transfer to CO-PA

Data can be uploaded directly into costing-based CO-PA through the external data upload feature. You may need to do this if a company is not implementing the SD module but wants sales details in CO-PA to take advantage of the module's multidimensional reporting capabilities. It might also be used to load historic data in CO-PA or to load the data for company divisions that do not use the ERP system productively. With this feature, data is uploaded directly from text files on the operating system level into the costing-based CO-PA transaction data tables. The feature does not simulate the manual line item create feature. The records in the text file must be of a consistent format, where each field is allocated a fixed number of characters, and where records are not separated by characters or carriage returns. If you upload data through the external data interface, you need to define the structure of the file to be uploaded and assign the fields of that structure to the fields of the operating concern. The fields are mapped to each other through the aid of assignment groups. This allows different mappings for data to be uploaded to the same structure. The configuration described above is set in Customizing, but the transfer itself is conducted in the application menu. The function is available for both actual data and planning data. However, you have to transfer these separately. Derivation, valuation, and validation occur during the upload, just as they would for any other transaction that transfers data to CO-PA. Any records that do not pass the validation checks are written to an error file, which can be corrected. These files can then be uploaded to the CO-PA component. This procedure can occur only once for each file, since the system monitors the files to avoid data being duplicated. Each file can be uploaded to CO-PA only once because the system logs the files to ensure that the data is not duplicated. Multiple files can be uploaded into CO-PA at the same time for maximum performance.

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form definitions. 2006/Q2 . can only be deleted once a year. Incidentally. archiving means copying data from ERP datatables to archive files. All rights reserved. and line item layouts. planning layouts. as well as data in costing-based and account-based Profitability Analysis. Deletion means removing data from ERP datatables. If you archive with deletion. Summary records. you can archive or delete line items for selected periods (although not for the current period). In the ERP system. As a result. Note that deleting security data does not delete movement data from the standard tables but only deletes the “frozen” data for the reports. such as frozen data. Data records can also be archived and deleted by record type. Actual and planning data. you can configure the two processes to occur simultaneously or sequentially. on the other hand. is archived and deleted separately. In Profitability Analysis.Appendix 1: Appendix TFIN22_2 Figure 85: Archiving and Deleting CO-PA Data Profitability Analysis uses the standard ERP system functions to archive and delete movement data. you can archive with or without deletion. 176 © 2006 SAP AG. report definitions. there are standard functions in the Implementation Guide to reorganize or delete the other types of data and other items in CO-PA.

Enhancements also isolate custom functions so they will not harm SAP transactions nor upgrades. The enhancements must be assigned to enhancement projects. Enhancements are beneficial because they provide the exits and entrances at the appropriate places in R/3 along with the necessary data that may be used. each project must be activated for all of the functions contained in the related enhancements to take effect. All rights reserved. Each enhancement has a specific purpose. and returned. Figure 87: CO-PA Enhancement Overview (1) 2006/Q2 © 2006 SAP AG.TFIN22_2 Appendix 1: Appendix Figure 86: SAP Enhancement Concept The R/3 enhancement tool is used to add customized functions to SAP's standard business applications. manipulated. 177 . To use enhancements. customers can implement their own functions without needing to modify the standard SAP code. custom functions must be programmed into the enhancements. Through enhancements. In addition.

2006/Q2 . so that product-related accounts have the product number and customer-related accounts have the customer as a required field in the profit segment.Appendix 1: Appendix TFIN22_2 With the COPA0001 enhancement. For example. 178 © 2006 SAP AG. For example. you can program the steps to calculate or retrieve the special values during valuation. documentation. Calculations are assigned user exit numbers. All rights reserved. This means the same transaction could require the specification of values for different characteristics when different situations arise. With the COPA0002 enhancement. provided that these are not required (for example. which must be placed in active CO-PA valuation strategies for the calculations to occur during the posting of data. you can use characteristic groups in conjunction with additional conditions (instead of just one report) whenever manual assignment to a profitability segment is required. With the COPA0003 enhancement. Figure 88: CO-PA Enhancement Overview (2) With the COPA0004 enhancement. “dummy” products for freight. you can program steps to determine characteristic values during derivation. These steps can be given step IDs and sorted in your derivation strategy as required. this enhancement might be used to determine the value for a special user-defined characteristic. For example. Separate calculations can be defined for the planned and actual data. you can use this enhancement to determine a characteristic group according to the account that is posted. you can reprogram the exchange rate type that should be used for currency transaction when actual data is processed in costing-based CO-PA. and services). this enhancement might be used to delete certain values for updating Profitability Analysis. which is determined by complex logic not achievable through derivation rules.

179 . Figure 89: Recommended Follow-Up Activities Data Used in the Exercises Data Operating Concern Controlling Area Company Code Sales Organization Distribution Channel Division Data in Training System IDEA 1000 1000 1000 10 00 Data in IDES System IDEA 1000 1000 1000 10 00 2006/Q2 © 2006 SAP AG. For example. or for moving plan/actual variances to future periods. All rights reserved. which must be specified when conducting the tasks to access the required calculations. With the COPA0005 enhancement. With the COPA0007 enhancement. This means you can modify the line items that are transferred to costing-based CO-PA over the standard interface using customized source code.TFIN22_2 Appendix 1: Appendix For example. since these only use information that is contained in the CO-PA component. this enhancement might be used to change the characteristic values being derived for an FI journal entry to CO-PA based on information in the allocation field or the text field of the document. With the COPA0006 enhancement. for revaluation using a time-dependent revaluation factor. this enhancement can be used to for distribution using a characteristic-specific distribution key. for actual postings you can change the average exchange rate (“M”) to the bank buying rate (“G”) or the bank selling rate (“B”). you can program the special functions for processing planning data during the manual and automatic planning processes. you can program special processing instructions for externally uploaded data only. Each function is given an exit number. This cannot be done with the enhancements for derivation and valuation. For example. you can change or define characteristic values or field values on the interfaces with other applications by using information from the source document.

2006/Q2 . P-102. All rights reserved. P-101. P-103 T-CO05A## TA 0450 4500 EH## UNI 5000 100 5## P-100.Appendix 1: Appendix TFIN22_2 Products Customer Sales Order Type Internal Order Type Cost Center Activity Type Currency Business Area Plan Version P-100. P-101. P-102. P-103 T-CO05A## TA 0450 4500 UNI 5000 100 180 © 2006 SAP AG.

49 S sales order management transaction. 72 B Base condition types. 50 V Valuation analysis. 77 Overhead Cost Controlling. 70 Production variances. 3 Controlling Profitability Analysis (CO-PA). 53 D Derivation rules. 72 Costing sheets.Index A Assignment lines. 117 CO-PA relevant transaction. 4–5 CO orders. 73 Periodic valuation. 118 T Table lookup. 69 Plant. 54 Derivation strategy. 76 Controlling area. 3 Product Cost Controlling (CO-PC). 68. 77 Calculation Type. 7 O Operating concern. 56 P PA transfer structure. 76 Characteristic derivation. 46 Scale Basis. 3 2006/Q2 © 2006 SAP AG. 70 Value Fields. 71 Product Costing. 119 Period indicator. 108 Profitability segment. 79 Valuation configuration. 112 C Calculation condition types. All rights reserved. 107 Profitability Analysis. 3 Condition type. 4 Characteristics. 76 settlement profile. 181 . 75 Customizing Monitor. 69 Costing key. 49 Characteristic Values. 46 Company code. 107 Overhead Costs Controlling.

2006/Q2 .Index TFIN22_2 182 © 2006 SAP AG. All rights reserved.

please record them in the appropriate place in the course evaluation. 183 .Feedback SAP AG has made every effort in the preparation of this course to ensure the accuracy and completeness of the materials. If you have any corrections or suggestions for improvement. 2006/Q2 © 2006 SAP AG. All rights reserved.

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