CO-PA Quick Tips- Implementation and Usage
Quick Background
Implementation Tips
Usage Tips in Production Environment
Reporting Tips
FYI
CO-PA Quick Tips Topics
CO-PA Quick Background
CO-PA Quick Tips Topics
CO-PA Quick Background
SAP AG
R
Organizational Structure
Profit Center(master data)
Profitability Segment(master data)
A AA
Operating Concern
Controlling Area(s)
Company Code
Salesorganization
Focus on Markets
Focus on Controlling
Focus on External Accounting
Focus on Sales
Plant Focus on Manufaturing
CO-PA Quick Background
SAP AG
R
Data Flow in Profitability Analysis
FIFI
FinancialAccounting
CO-CO-OMOM
PPPP
Production
CO-CO-PCPC
OverheadManagement
Sales
SDSD
ProductCosting
CO-CO-PAPA
ProfitabilityAnalysis
Assessment
Settlement
Billing Doc
Cost of Goods Sold
Activity Allocation
Order Settlement: Production Variances
Direct Postings from Financial Accounting
CO-PA Quick Background
SAP AG
R
CO-PA Segment Criteria• Up to 50 additional criteria can also be selected• Business segments consist of combinations of characteristics
Product
Customer
Company Code
Billing Type
Business Area
Controlling Area
Toys
Sales Organization
Distribution Channel
Plant
Example: Division = 00Region = SouthProduct Group = Air CylindersState = Texas
CO-PA Quick BackgroundReporting Sources
CO-PA
SD
GL/PCA
Gross Profitability / P&L by PA Segment
Sales Information System
Statutory Reporting: P&L and Balance Sheet by Company or Business Units
CO-PA Quick Background
SAP AG
R
SD-SD-SISSIS
EC-EC-EISEIS
CO-CO-PAPA EC-EC-
PCAPCA
Evaluationof profits
FI-FI-SLSL
Profitability Reporting Options in R/3
account- based
costing- based
Profit centers
PrCtrPrCtr 1 1
PrCtrPrCtr 3 3
PrCtr 2
PrCtrPrCtr 4 4
PrCtrPrCtr 5 5
Productgroup
Distr. channel
Region
Profit. segments
SAP AG
R
Costing Based
Value FieldRevenue 1,000,000Sales Deductions 100,000
--------------Net Revenue 900,000Variable Mat. Costs 400,000Variable Prod. Costs 190,000Production Variances 10,000
--------------Contribution Margin 1 300,000Material Overhead 50,000Production Overhead 50,000
--------------Contribution Margin 2 200,000Res & Development 10,000Marketing Costs 50,000Admininstrative Costs 40,000
--------------Contribution Margin 3 100,000
Account Based
Cost/Revenue Elements800000 Revenue 1,000,000808000 Sales Deductions 100,000
--------------Net Revenue 900,000893000 Cost of Sales 690,000231000 Price Difference Acct. 10,000
651000 R & D Costs 10,000671000 Marketing Costs 50,000655000 Admin. Costs 40,000
--------------Operating Profit 100,000
Types of Profitability Analysis
CO-PA Quick Background
CO-PA Implementation Tips
CO-PA Quick Tips Topics
Operating Concern Industry Templates
CO-PA Implementation Tips
Expanded Info Structure for Characteristics in 4.6c
CO-PA Implementation Tips
Warranty Structure in DI-AIndustry Solution
• Design of Master Data Structure must be in place before starting setup in DEV
• Decide on Characteristics and Value Fields- Characteristics have a max limit- Deleting characteristics is major issue- Build Operating Concern prototype in Sandbox client first- Obtain signoff and begin work in DEV
CO-PA Implementation Tips
• Activate Operating Concern for BOTH Costing based and Account Based PA
• Keep number of PA segments to a minimum - Do not activate Sales Order in PA Segment
• Value Fields mapping to Condition Types- Watch out for Transfer Sign (+/-)- Use Transfer Sign on Rebate Condition
types that can have ‘+’ or ‘-’ values
CO-PA Implementation Tips
• Use Characteristic Derivation rules
- Characteristic derivation refers to the process of determining characteristic values for each COPA transaction
• Let’s see an example of Derivation …
CO-PA Implementation Tips
CO-PA Implementation Tips
• Derivation Rule for Sales Office (KEDR)
• Identify reconciling items between Costing based CO-PA and FI/PCA up front – so no surprises in production environment
Example: There is a lag time between shipping and billing, especially at month end. You accrue outbound freight in FI at the time of shipment/delivery. However, you want to accrue freight in CO-PA at billing since that’s when the data flows into CO-PA from SD. Thisfreight accrual amount is a reconciling item!
CO-PA Implementation Tips
• Transport of CO-PA Configuration and Master Data
-To manage CO-PA properly during both the development and production phases of a project, it is necessary to understand and to be able to successfully manage the movement of CO-PA master data and configuration pieces between different environments (SAP instances and clients)
CO-PA Implementation Tips
Usage Tips
CO-PA Quick Tips Topics
• Activate Operating Concern for BOTH Costing based and Account Based PA
• Business Users want CO-PA reconciled with GL/PCA and SD
• Use Account based reports for reconciling with GL/PCA
• Look for items shipped but not billed for the month
CO-PA Usage Tips
• Make sure Quantity in CO-PA is in sync with SD
- SD Credit Memos not related to returns have a quantity of ‘1’ which flows into CO-PA. Quantity value is now out of sync- Use Reset Value/Quantity Fields (KE4W)
to set the quantity value field to ‘0’
• Look for value fields with transfer sign turned on and verify formula in reporting
CO-PA Usage Tips
Use SD Doc Flow to understand the data flow
CO-PA Usage Tips
Compare the values of the Value Fields ….
CO-PA Usage Tips
… With the Values of the Condition Types inthe Billing Document
CO-PA Usage Tips
• Did you allow Direct Post from FI?-Need to verify these transactions for accuracy
• Run SAP standard reconciliation report - KEAT
CO-PA Usage Tips
KEAT shows reconciliation of COPA-SD-FI-PCA
CO-PA Usage Tips
• Inter-company Scenario
- Cost value field for one company is revenue for other company
- VPRS is Cost value field for shipping company that owns the product
- Revenue value field for shipping company is Cost value field for selling company: - setup contribution margin formula appropriately
CO-PA Usage Tips
CO-PA Usage Tips
• Inter-company Scenario (cont’d)
-Ensure Profit Center substitutions are correctly used, when the profit center structure is different for the companies to prevent out of sync situation between Profit Centers e.g. COGS is okay in total but does not tie out by profit center
• Use Line Item reports (KE91) for reporting on Characteristics not activated in PA Segment e.g. Profitability by Sales Order
• COGS valuation:- Use VPRS: it picks up Moving Average Price from the Material Master- Or, Use valuation in CO-PA- Update COGS from FI
CO-PA Usage Tips
• If you use Sales BOMs, remember you sell the Header BOM but the cost (VPRS) is associated with the individual components
• So,COGS is in sync in total but not by product
• Revenue is assigned to header BOM but cost is assigned to the components. > Use an user exit to update the VPRS for the header BOM
CO-PA Usage Tips
Reporting Tips
CO-PA Quick Tips Topics
• Fine tune the Report Performance Settings
-Use summarization data
-Use summarization levels
- Use frozen data
CO-PA Reporting Tips
CO-PA Reporting Tips
Use Last Saved Data at report run time
CO-PA Reporting Tips
• Use Line Item based reports to get details by Sales Order, and other Characteristics not activated in PA Segment, rather than making these characteristics active in PA Segment
• Set up Key Figures to facilitate reporting
CO-PA Reporting Tips
Key Figure Scheme
CO-PA Reporting Tips
Key Figure Elements
CO-PA Reporting Tips
Use Actual Line Item Display (KE24) to get quick reporting by Sales Order, and otherCharacteristics not activated in PA Segment
CO-PA Reporting Tips
FYI …. Unlisted Tips
CO-PA Quick Tips Topics
Condition Type status must be ‘active’ for value to flow to CO-PA
FYI… Got to know some SD
If VPRS status is ‘inactive’ – value will not flow to CO-PA
FYI… Got to know some SD
VPRS status is ‘active’ if placed at the end – value flows to CO-PA
FYI…. Got to know some SD
New Output Options
FYI…. Report Output
ALV Output Option- Publish to Portal
FYI…. Report Output
Graphical / HTML Output Option
FYI…. Report Output
Post SD Billing Documents Subsequently:
- Activate CO-PA anytime - Fix corrupt CO-PA database
FYI.… CO-PA Activation
Thank you for attending!Please remember to complete and return your evaluation form following this session.
Session Code: [1703]