You are on page 1of 25

Actual Value Flow in Profitability

Analysis (CO-PA)

Solution Management ERP Financials


SAP AG
Legal Disclaimer

This presentation is a preliminary version


and not subject to your license
agreement or any other agreement with
SAP. This document contains only
intended strategies, developments, and
functionalities of the SAP® product and is
not intended to be binding upon SAP to
any particular course of business,
product strategy, and/or development.
Please note that this document is subject
to change and may be changed by SAP at
any time without notice. SAP assumes no
responsibility for errors or omissions in
this document.
Contents

Flows of Actual Values


Transferring Billing Data
Transferring Cost Center and Process Costs
Settling Orders and Projects
Allocating Activities from Cost Centers and Processes
Direct Postings from FI
Transferring Incoming Sales Orders
Top-Down Distribution
Flows of Actual Values – Overview

Profit--Center Accounting
Profit EC-
EC-
PCA
CO CO-
CO-
PA
Profit. segments
Profitability Analysis

Overhead Cost Product Cost


Controlling Controlling
• Processes Cost
• Cost Centers object
• Internal Orders
Standard
Cost Estimate
Cost and Revenue Element Accounting
FI Revenues
Discounts
SD
Flow of Actual Values – Results

Costing-Based Account-Based

Value Fields Cost and Revenue Elements


Revenues 1,000,000 800000 Revenues 1,000,000
Sales deductions 100,000 808000 Sales deductions 100,000
-------------- --------------
Net revenues 900,000 Net revenues 900,000
Var. material costs 400,000 893000 Cost of sales 690,000
Var. production costs 190,000 231000 Price differences
Prod. variances 10,000 10,000
--------------
Contribution margin 1 300,000
Material overhead 50,000
Production overhead 50,000
--------------
Contribution margin 2 200,000
Research & develop. 10,000 651000 Research & develop. 10,000
Marketing 50,000 671000 Marketing 50,000
Sales and administration 40,000 655000 Sales and Administration 40,000
-------------- --------------
Contribution margin 3 100,000 Result 100,000
Sources of Value Fields

SD Quantity
Billing Document Sales Revenues & Deductions
Cost of Goods Sold
CO--PC
CO
Variable Cost of Goods Mfd
Cost Estimate
Fixed Cost of Goods Mfd

FI
Bonuses
General Ledger Posting
Freight Costs

CO--OM
CO Cost Center Sales and Administration Costs
Order
Marketing Costs
Process
Variances
PS WBS Element
Network Operation Research & Development Costs

CO--PC
CO PC--OBJ
Production Order Production Variances

CO--PA
CO
Additional Costs Estimated Discounts
Estimated Bonuses
SD: Condition Types - Pricing Procedure

Determine
Pricing Procedure

SD
Sales Order
Header (e.g. Customer) Pricing Procedure
PR00 - Price
DISC - Customer Discount
Item 10 (e.g. Product 1)
VPRS - COGS

Item 20 (e.g. Product 2)


Condition Types
PR00 1000.-
DISC 100.-
VPRS 700.- Pricing

Sales from Stock: Transferring Incoming
Orders

CO-
CO- Condition Types
Sold qty +
PA
Revenue + PR00,
Rebates + DISC, SD
(costing-based)
COGS + VPRS

FI
CO-
CO-
PA

(account-based)

SD 1

Sales
Quantity Flow Order 1
Sales from Stock: Postings Delivery

CO-
CO-
PA

(costing-based)

COGS
X
FI
CO-
CO- Inventory
PA X

(account-based)

SD 1 2

Sales Delivery
Quantity Flow Order 1 1

t
Sales from Stock: Billing

Condition Types Sold qty +


CO-
CO- Revenue +
PR00,
PA SD DISC, Rebates +
VPRS COGS +
(costing-based)

Revenue
COGS
X
X
FI Rebates
CO-
CO- Inventory X
PA X Customer
X
(account-based)

SD 1 2 3

Sales Delivery Billing


Quantity Flow Order 1 1 1

t
Condition Types

Condition type CO-


CO-
PA
SD
Value field
PR00
Revenue
Value 500 USD CO-PA
CO-
Pricing FI Acc.b.
determines
Account Key: ERL Account:
800000

Dependencies:
Customer/Material

Condition Record
1 PC 500
10 PC 497

Account has to be CO-relevant (Revenue or Sales deduction)


Transfer Billings Document to CO-PA: In Detail

FI-Docu-
Billing- ment
SD document
FI
Header : Customer 47 SD

Item 10: Product A Info NO


SAVE missing ?
CO
Item 20: Product B PA

YES Release to Line-item 1


Accounting
Line-item 2
Derivation error Customer 47
Error in account- Product A
determination
Revenue ...
Cost estimate not Disc. ...
found COGS ...
Valuation Using Product Costing: Process

Sold qty +
Revenue +
CO-
CO-
Rebates +
PA Condition
COGS +
TypeVPRS
var.PC +
(costing-based) fixed PC +

COGS Inventory Revenue Rebates Customer


FI
X X X X X
CO-
CO-
PA
Material Product Cost
(account-based) Master Estimates

Valuation

SD
1 2 3
Sales Delivery Billing
Quantity Flow Order1 1 Document

t
Transferring Customer Agreements

CO-
CO- Budget Commitment, Incoming Order Billing Doc.
PA Cust. Agreement
Planning
in CO-PA
(costing-based)

Sales Sales Sales


Promotion Promotion Promotion

SD
Customer agree-
ments transferred
with record type G Sales Order Billing Doc.
Transfer of Overhead Costs: Overview

CO-
CO-
OM
Admin.
Assessment costs
Cost center
Value fields
Field service
Direct /indirect activity allocation
hours

Order/Project Settlement Marketing CO-


CO-
campaign PA
CO-
CO-
ABC Assessment of process costs
Customer
Care
Indirect activity allocation
Process
Special
Template allocation deliveries
Assessing Cost Center and Process Costs

Process
Assessment
Cost Center
CO-
CO-
PA
Cycle

Admininstration

400000 20.000,--
430000 30.000,--
50.000,--
Costing based: Administr. + 50.000,-
630000 - 50.000,--
Account based: 630000 + 50.000,-
Multi-Level Overhead Allocation

Product Group Customer Group Region Division


Cust./Product
1 1 1 1
Sales Rev. Revenue Revenue Revenue Revenue
Sales : : : :
Deductions
: : : :
Net Revenue
: : : :
Var. COGM
CM1 CM1 CM1 CM1
CM1
: : :
Cost Center Fixed
: : :
"Production" COGM
CM2 CM2 CM2 CM2
Overhead : :
Cost Center
Administration/ Administration : :
Sales Sales
CM3 CM3 CM3

Cost Center Overhead


Central Function Branch Office CM4
CM4
Cost Center Overhead
Management
CM5
Settlement of Orders

Customer Group
Research & Business Unit CO-PA
CO-
Development ... Cost. bas.

Material
Input 3000.- Value field assignment
via PA Transfer Structure R&D Costs 8000.-
Services 5000.-

R&D Costs - 8000.- CO-PA


CO-
Acc:658000 Acc. bas.

Acc: 658000 + 8000.-


Settling Orders - Customizing (1)

CO-
CO-
PA
Settlement
Structure
Determine Order
Settlement
Cost Element
Parameters:
Settlement
Settlement Order
Structure
Profile Type
PA Transfer
PA Transfer Structure
Structure
Determine
Value
field
Settling Orders - Customizing (2)

PA Transfer Structure

Source Value Field


Cost Element Group: Assignment Lines
OAS 400000 - 699999 R&D
10 R & D

Settlement Structure

By Receiver
Source Type
Assignment Lines
Cost Element Group: Settlement-
Cost Element
OAS 400000 - 699999
655000
Direct Posting from FI

Customer,
FI Sales Area CO-PA
CO-
Cost. bas.

Bad Debts Expense Value field Assignment


(Acc: 486000) via Selling Exp. 3000.-
3000.- PA Transfer Structure „ FI“

Accounts Receiv.
3000.- CO-PA
CO-
Acc. bas.

Example: Write-off of an Acc: 486000 + 3000.-


uncollectible account
Automatic Account Assignment

Value Flow
Revaluation of material inventories in MM

Price differences in purchasing CO-


CO-
PA
Inventory differences

Currency differences

FI
Automatic Posting
Assignment:

X X Profitability Segment
Reconciliation Report FI / SD and CO-PA

Value Value Difference


in CO-PA in SD CO-PA/SD
Thank you!

© SAP AG 2009. All rights reserved. / Page 24


Copyright 2010 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.
Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.
IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries,
eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+,
POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex,
MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.
Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.
Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other
countries.
Oracle is a registered trademark of Oracle Corporation.
UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.
HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.
Java is a registered trademark of Sun Microsystems, Inc.
JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos
are trademarks or registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and
services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries.
Business Objects is an SAP company.
All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only.
National product specifications may vary.
These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only,
without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group
products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed
as constituting an additional warrant.