tfin22 2 en col62 fv inst a4

7/23/2019 Tfin22 2 en Col62 Fv Inst a4

http://slidepdf.com/reader/full/tfin22-2-en-col62-fv-inst-a4 1/257

TFIN22_2Management Accounting II

mySAP ERP Financials

Date

Training Center

Instructors

Education Website

Instructor HandbookCourse Version: 2006 Q2

Course Duration: 2 Day(s)

Material Number: 50080907

Owner: Michael Janning (D034089)

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



Copyright

Copyright © 2007 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.

Trademarks

• Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are

registered trademarks of Microsoft Corporation.

• IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®,

S/390®, AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation.

• ORACLE® is a registered trademark of ORACLE Corporation.

• INFORMIX®-OnLine for SAP and INFORMIX® Dynamic ServerTM are registered

trademarks of Informix Software Incorporated.

• UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group.

• Citrix®, the Citrix logo, ICA®, Program Neighborhood®, MetaFrame®, WinFrame®,

VideoFrame®, MultiWin® and other Citrix product names referenced herein are trademarks

of Citrix Systems, Inc.

• HTML, DHTML, XML, XHTML 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, SAP Logo, R/2, RIVA, R/3, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP

EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo and mySAP.com

are trademarks or registered trademarks of SAP AG in Germany and in several other countries

all over the world. All other products mentioned are trademarks or registered trademarks of

their respective companies.

Disclaimer

THESE MATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLY

DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR APPLIED, INCLUDING

WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A

PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE SERVICE,

INFORMATION, TEXT, GRAPHICS, LINKS, OR ANY OTHER MATERIALS AND PRODUCTSCONTAINED HEREIN. IN NO EVENT SHALL SAP BE LIABLE FOR ANY DIRECT,

INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY

KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST

PROFITS, WHICH MAY RESULT FROM THE USE OF THESE MATERIALS OR INCLUDED

SOFTWARE COMPONENTS.

g20073210102



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 Description

Example text Words or characters that appear on the screen. Theseinclude 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 Emphasized words or phrases in body text, titles of

graphics, and tables

EXAMPLE TEXT Names of elements in the system. These include

report names, program names, transaction codes, tablenames, and individual key words of a programming

language, when surrounded by body text, for example

SELECT and INCLUDE.

Example text 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.

Example text Exact user entry. These are words and characters that

you enter in the system exactly as they appear in the

documentation.

<Example text> Variable user entry. Pointed brackets indicate that you

replace these words and characters with appropriate

entries.

2006/Q2 © 2007 SAP AG. All rights reserved. iii



About This Handbook TFIN22_2

Icons in Body Text

The following icons are used in this handbook.

Icon Meaning

For more information, 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.

iv © 2007 SAP AG. All rights reserved. 2006/Q2



Contents

Course Overview ....... ....... ....... ....... ....... ...... ....... ....... .. vii

Course Goals ....... ........ ........ ........ ........ ....... ........ .....vii

Course Objectives .. .... ... .... .... .... .... .... .... ... .... .... .... .... viii

Unit 1: Structures ....... ....... ....... ....... ...... ........ ...... ....... ... 1

Overview of Operating Concern . ... ... .. ... .. ... ... .. .. ... ... .. ... .. .3

Data Structures........................................................ 22

Unit 2: Master Data ...................................................... 51Introduction to Characteristic Derivation and Valuation.......... 53

Characteristic Derivation............................................. 59

Valuation ....... ........ ........ ....... ........ ........ ....... ........ .. 83

Unit 3: Actual Data...................................................... 127

Flow of Actual Data..................................................129

Integration with Sales Order Management .......................136Transfer of Overhead... ... .... .... .... .... ... .... .... .... .... ... .... 164

Appendix 1: Appendix ...... ....... ....... ....... ....... ....... ..... 207

Index ....................................................................... 241

2006/Q2 © 2007 SAP AG. All rights reserved. v

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-

http://-/?-



Contents TFIN22_2

vi © 2007 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 Duration Details

Unit 1: Structures

Overview of Operating Concern 40 Minutes

Exercise 1: Operating Concerns 10 Minutes

Data Structures 50 Minutes

Exercise 2: Data Structures 15 Minutes

Exercise 3: Maintain the Operating Concern 15 Minutes

Unit 2: Master DataIntroduction to Characteristic Derivation and

Valuation 30 Minutes

Characteristic Derivation 40 Minutes

Exercise 4: Derivation 20 Minutes

Valuation 50 Minutes

Exercise 5: Valuation 10 Minutes

Unit 3: Actual Data

2006/Q2 © 2007 SAP AG. All rights reserved. vii



Course Overview TFIN22_2

Flow of Actual Data 30 Minutes

Integration with Sales Order Management 50 Minutes

Exercise 6: Sales Order Processing 15 MinutesExercise 7: Value Flows between Sales Order

Management and CO-PA 15 Minutes

Transfer of Overhead 50 Minutes

Exercise 8: Cost Center Assessment 10 Minutes

Exercise 9: Internal Orders 15 Minutes

Exercise 10: Activity Allocation 10 Minutes

Course Goals

This course will prepare you to:

• Understand the functions in Profitability Analysis and obtain an insight onhow 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:

• 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:

Revised: in December 2004 for mySAP ERP. Only minor changes have been

made. For example, exercises and solutions have been amended and terminology

has been updated. We have changed the terminology in the course book only and

not in the instructor handbook. Terminology changes are listed in the following

table:

viii © 2007 SAP AG. All rights reserved. 2006/Q2



TFIN22_2 Course Overview

old new

R/3 system SAP system

controlling Management Accounting

SD Sales Order Management

FI Financial Accounting

reporting analytics

SAP Contact(s)

Walldorf

N.A.

Subsidiaries

Andrea Anderson - SAP America

Peter Jones - SAP America

Revisions to Previous Instructor Guide

Created on: 12/29/99

Revised: July, 2003 for Release R/3 Enterprise

For Release R/3 Enterprise, you will find only minor changes in the course

material. Exercises and solutions have been amended and four new graphics

have been integrated:

“Activity Allocation” in “Flow Data” because as of Release R/3 Enterprise, it is

possible to post the cost component split of a price to CO-PA

“Variables in Planning” in “Planning” because you can use variables in either

planning levels or planning packages

“Copying Plan Data: Transformation of Characteristics” in “Planning”, which

highlights a new feature in the copy function.

“Planning sequence” in “Planning,” which shows how you can combine several

automatic planning functions, such as copy and revaluation in one sequence

Besides these new graphics, nothing has changed in the course material.

Course Details

Duration

5 days

The course has been extended to a standard 5-day course as of Release 4.6. There

are a number of optional exercises, which can be used at your discretion.

2006/Q2 © 2007 SAP AG. All rights reserved. ix




The appendix contains a number of additional topics, which are not intended as

part of the course content. Instead, these topics explain concepts that are not

covered in the standard course materials, but that may be discussed by moreexperienced participants.

Course Materials and Other Materials (Training Manual)

Normally, you should make use of the standard presentation material for the

course. To convey difficult concepts, you can also make use of whiteboards, a

flip chart, and an overhead projector.

• Participant handbook

• my SAP ERP system

• SAP Knowledge Warehouse

• Whiteboards• Flip chart

• Overhead projector

Country-Specific Chapters

None

Course Instructor Profiles

Level of Knowledge Required

In-depth knowledge of managerial accounting theory. Familiarity with course

AC040. Basic knowledge of the sales order management module, such as pricing,

sales, and billing, and the financial accounting module.

The course instructor should have already taught other CO courses. Course AC410

is particularly helpful. Note that AC605 should not be the first CO course that

you are holding.

Recommended Preparatory Courses

AC040 Cost Management and Controlling

AC410 Cost Center Accounting

AC415 Overhead Orders

AC505 Product Cost Planning

AC510 Cost Object Controlling for Products

AC515 Cost Object Controlling for Sales Orders

AC610 Profit Center Accounting

The level 2 courses in financial accounting and sales order management are also

recommended. Extensive knowledge of the sales order management module, such

as pricing, sales, and billing, is extremely advantageous.

x © 2007 SAP AG. All rights reserved. 2006/Q2




Recommended Preparatory Online Help

WinHelp documentation for the CO-PA module

CO-PA Implementation Guide

IDES Demo Scripts for CO-PA

Hints on Preparing This Course

To conduct this course successfully, it is a good idea to attend the above

recommended courses and work through the course flow and exercises. Attend the

course when another instructor holds it, and make sure to co-teach the course at

least once before you teach it alone. CO-PA covers a lot of functions in and around

the CO application, with which you will not immediately be familiar. For further

practice, there are excellent demo scripts in the IDES system.

Training System

Required Data

Refer to Example Data for the Instructor section.

User IDs and Password for Course Participants

User IDs: Create your own

Password: INIT

To create participant user IDs, use transaction ZUSR and copy user AC605-99 (!).

This user has been set up with a special authorization profile that prevents users

from maintaining the operating concern tables. If you copy another user, youwill encounter major problems during class. This is because only one operating

concern is available for each course and it should be maintained only by you.

System Preparation

A CATT has been created to post a goods receipt of 10,000 items to the stock

of material P-100 in storage location 0002. This CATT should be executed

automatically before the class, but you should check the balance manually. If no

stock is available, use:

Movement type:

Plant:Storage location:

Material: P-100

Quantity:

Logistics ! Materials management ! Inventory management ! Goods

movement ! Goods receipt ! Other

2006/Q2 © 2007 SAP AG. All rights reserved. xi




Master data, such as the customer numbers for each participant and for the course,

is already available in the training system. The required transaction data also

exists. The course instructor or participants during the course create some of the required transaction data.

If you want to deactivate the locking mechanism to maintain tables, use transaction

SE38 to start the ZSENQOFF program. (The ZSENQON program reactivates

the locking mechanism.) Switch ENQ to off.

Example ABAPs

None

Technical Hints

Since this course covers both the costing-based and account-based approaches

within Profitability Analysis, there are points at which you can choose todemonstrate either approach. As most customers use mainly costing-based

CO-PA, with account-based approach being used additionally or not at all, this

course focuses on the costing-based approach. In fact, account-based PA is

seldom discussed in the presentation materials, but there are a number of optional

exercises that work with account-based PA.

When examples in the system are used, you can assume that the examples are

costing-based. If the account-based approach is used (for example, a report for the

account-based approach is defined), this is stated explicitly.

Most Customizing examples require Customizing in CO-PA. Transaction ORKE

supports all of the menu paths required for configuration. Transaction SPRO

accesses the IMG. The menu paths to access the IMG will not be repeated in

the following scripts.

Example Data

Data in the training system

Operating concern IDEA

Controlling area 1000

Company code 1000

Sales organization 1000

Distribution channel 10

Plant 1000

Storage location 0002, 0001

Shipping point 1000

Division 00

Material P-100, P-101, P-102, P-103, M-01 to

M-20

xii © 2007 SAP AG. All rights reserved. 2006/Q2




Customer 1000, T-CO05 A01 through T-CO05

A20 (participants)

Order type OR, TA (Customer order)

Order type 0450 (Internal order)

Cost center 3200 (Assessment)

Assessment cost element 691000

Primary cost element Various

G/L account 113100

Cost center 4120 (Activity allocation)

Activity type 1412

Currency UNI

Business area 1000

Plan version Various

Costing sheet ACT001

The transaction data for the Actual Data unit is generated using the above

information.

Predefined planning layouts, report forms, and reports for the Planning and

Information System units are available in the IDES system. It is a good idea to

define your own planning layouts, report forms, and reports during the course sothat the participants get a better idea of how this is done. Course-specific reports

and layouts have been created as samples.

This course teaches participants how to set up and use Profitability Analysis and

how to adjust the system to company-specific requirements in the planning and

information system areas. It also introduces the interfaces for the flow of actual

values.

Course Structure and Flow

Units 1 through 3 introduce the Profitability Analysis application and Profitability

Analysis customizing. The Actual Data, Planning, and Information System units

provide further information. Finally, unit 7 takes a closer look at additionalProfitability Analysis functions.

The following paragraphs provide a brief introduction to the important topics

within each unit:

The Profitability Management unit introduces participants to profitability

accounting in the SAP system and highlights the differences between the CO-PA

module and the EC-PCA module. This is done by comparing the two modules

in the light of various criteria.

2006/Q2 © 2007 SAP AG. All rights reserved. xiii




The Structures unit describes the individual structures in Profitability Analysis and

teaches participants how to set up an operating concern in Customizing.

The Master Data unit introduces the concepts of characteristic derivation and

valuation. This unit explains how to customize characteristic derivation and set up

the valuation for costing-based Profitability Analysis.

The Actual Data unit manages the various sources of Profitability Analysis data,

such as billing documents, cost center, cost assessment, and order settlement.

The Planning unit demonstrates the planning methods supported in Profitability

Analysis. Participants are given an overview of the planning functions for manual

and automatic planning. Integrated planning within Profitability Analysis is

outlined extensively.

The Information System unit conveys elaborate information about the drill-down

analytics and its functions. Participants are additionally taught how to create their

own reports and report forms and to use the line item analytics function.

The Tools unit describes the various tools that have often proved essential for the

successful implementation of Profitability Analysis. The topics of Performance

Tuning and Realignments are discussed.

In addition, a lesson has been added to address the Workplace in context with

Profitability Analysis. This lesson is optional and should be given at your

discretion. At the time of publishing, no system strategy for Workplaces was

available and so no demos were created.

You can easily make up time in the Information System unit by reducing the

number of exercises. If you have been particularly quick, you can extend the

course using the numerous exercises provided. The Tools unit can also be handled

either very briefly or extensively, and the exercises should also be seen as optional.

Familiarize the participants with the organizational aspects of the course. Describe

the course goals and the course content. Give participants the opportunity to

introduce themselves to the group, say what relevant experience they have, and

explain what they expect to gain from the course. Show the participants the

overview diagram for the course. This is designed to give an overview of the

course flow. The main business scenario is designed to introduce the example

company, which will be used throughout the course. Further business scenarios

add more information to the initial picture.If participants are unfamiliar with the role-based Easy Access menu, explain some

tips and tricks. You can have participants add a favorite for transactions ORKE

and SPRO, so they do not have to go through the menu path every time.

xiv © 2007 SAP AG. All rights reserved. 2006/Q2



Unit 11 Structures

Explain to the participants how to create characteristics and value fields from

different field sources and define the operating concern attributes. Demonstratehow to copy characteristics and value fields into Data Structure Definition and

generate the operating concern environment. In addition, help them to identify and

set nonsegment level characteristics.

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 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .3Demonstration: Organizational Structures .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .5

Demonstration: Characteristics and Value Fields .. .. .. .. .. .. .. .. .. .. .. . 11

Demonstration: Operating Concern and its Attributes.................. 14Exercise 1: Operating Concerns .. ... .. ... ... .. ... .. ... ... .. .. ... .. ... ... . 17

Lesson: Data Structures ... .... .... ... .... .... .... .... .... .... ... .... .... .... ... 22

2006/Q2 © 2007 SAP AG. All rights reserved. 1

http://-/?-

http://-/?-

http://-/?-

http://-/?-



Unit 1: Structures TFIN22_2

Demonstration: Segment Level and Non-Segment Level

Characteristics ............................................................... 28

Demonstration: Operating Concern Templates.. .. .. .. .. .. .. .. .. .. .. .. .. 30Exercise 2: Data Structures................................................ 33Exercise 3: Maintain the Operating Concern ............................ 39

2 © 2007 SAP AG. All rights reserved. 2006/Q2



TFIN22_2 Lesson: Overview of Operating Concern

Lesson:

2

Overview of Operating Concern

Lesson Duration: 40 Minutes

Lesson Overview

This lesson describes the various organizational units. In addition, it covers the

concepts, characteristics, and value fields of an operating concern. It also defines

an operating concern and its attributes.

Lesson Objectives

After completing this lesson, you will be able to:



operating concern


In this lesson, explain to the participants, the various organizational units. Identify

the basic concepts, characteristics, and value fields of an operating concern. In

addition, describe extensively, an operating concern and its attributes, to the

participants.

Business ExampleThe management of your company wants to implement a profitability accounting

application in the SAP system. As a member of 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 to implement the selected applications.

Both cross-company and company-specific reporting of contribution margins is

required in multiple currencies. Multidimensional analysis of sales information,

cost-of-sales information, production variances, and period cost information is

required for the various market segments. Estimated costs are required for the

actual costs posted only at the month-end. Actual period costs (S, G, and A) for

the various organizational entities are to be reflected at the month-end. Analytics

by value category and by income statement account is required.

For this purpose, you need to identify the operating concern, which represents a

sales and marketing reporting unit for a corporation. You also need to understand

the concept of characteristics and value fields.





Introduction to Organizational Units

Make the participants aware of the fact that only one user at a time can change

the data structures of an operating concern. Because the operating concern has

to be regenerated each time a change is made, no changes should be made to

the operating concern, IDEA. Instruct the participants that they can display the

configuration but must not make any changes. The user master records created

for the course prevent the participants from having the authorization to change

the operating concern.

This topic is designed to give the participants an overview of the organizational

units and the significance of the operating concern. The business scenario

emphasizes that the company is an international company divided into various

legal entities. For this reason, several different currencies are used. The variouscharacteristics and value fields needed are indicated by the different analytics

requirements.

First, explain the relationship between the various organizational units. In

contrast with other CO modules, the sales organization and the corresponding

master data play an important role in CO-PA. Explain that several Controlling

areas can be grouped in one operating concern, however all Controlling areas

must use the same fiscal year variant.

Figure 1: Organizational Units





The operating concern is the key organizational unit within CO-PA. It defines the

extent of the marketing and sales information that can be reported in combination

by this component. One or more controlling areas are assigned to an operatingconcern when organizational structures are defined. In most cases, corporations

have only a single operating concern, which is recommended for the sake of

simplicity and convenience if all controlling areas and company codes share the

same fiscal calendar.

The controlling area is an organizational unit delimiting the independent cost

accounting operations of the organization, such as cost center accounting,

profit center accounting, and order accounting. Company codes are assigned

to controlling areas when organizational structures are defined. Mostly, a 1:1

relationship exists between the company code and the controlling area. Notice

that a controlling area can also incorporate several company codes to take

cross-company cost allocations into account.

The company code is an independent accounting unit within a client. The legal

requirements of a balance sheet or a profit and loss statement are fulfilled on the

company code level. Plants are assigned to company codes when organizational

structures are defined.

The plant represents a production center. It is the primary organizational unit in

operations and manufacturing.

Demonstration: Organizational Structures

Purpose

To demonstrate how to display the operating concern and assign the company

code and the controlling area

System Data

System:

Client:

User ID:

Password:

Set up instructions:

1. In structure maintenance, display the operating concern, IDEA.

IMG ! Enterprise Structure ! Definition ! Controlling ! Create

Operating Concern

2. Under “Assignment”, show how the company code, 1000, is assigned to the

controlling area, 1000, and the controlling area, 1000, is assigned to the

operating concern, IDEA.

IMG ! Enterprise Structure ! Assignment ! Controlling ! Assign

Company Code to Controlling Area





3. Inform the participants that the controlling area can only be assigned to an

operating concern after the operating concern has been generated.

4. Under “Assignment”, show how the plant, 1000, is assigned to the company

code,1000, and how the sales organization, 1000, is assigned to the company

code, 1000.

IMG ! Enterprise Structure ! Assignment ! Logistics - General !

Assign Plant to Company Code

IMG ! Enterprise Structure ! Assignment ! Sales and Distribution !

Assign Sales Organization to Company Code

5. As an alternative or supplemental demonstration, you may want to show the

customizing monitor, a new tool as of Release 4.6. It shows a complete

summary of the organizational assignments for a particular operating

concern.

CO-PA Customizing ! Tools ! Analysis ! Check Customizing Settings

! Overview: Organizational Structures

Basic Concepts: Characteristics and Value Fields

Explain that certain characteristics that are known as the fixed characteristics, are

automatically included in all operating concerns. There are also certain technical

fields, such as posting period, which are also automatically contained in the datastructures. Notice that in account-based profitability analysis, the cost element is a

fixed characteristic. The job of the user is to define any characteristics required

but not already available as fixed characteristics.

Value fields are created based on information requirements. They differ from one

company to the next and only play a role in costing-based Profitability Analysis.

Explain that value fields normally represent a group of cost or revenue elements.

The various accounts for discounts can be grouped into one value field. Value

fields are defined as either a quantity field or an amount field. Mention that the

data structures are valid across all the clients of a system.





Figure 2: Basic Concepts of CO-PA

Characteristics

• Answer the question: What do I want to report on?

• Examples: Divisions, Regions, Products, Customers.

Characteristic Values

• Answer the question: What values can I have for these characteristics?

• Examples: Region South; Region North.

Profitability Segments

• Answer the question: What is the technical definition of my sales channel?

• Examples: Combination of Region North, Product Prod1, Sales Rep Miller.

Value Fields

• Answer the question: What performance measures do I want to track and

analyze?

• Examples: Gross Sales, Surcharges, Discounts, Cost-of-Sales.





Figure 3: Categories of Characteristics

Meaning of Characteristics

Characteristics are the analytic dimensions of the Profitability Analysis. They

define what items or objects the user can evaluate. Several characteristics, such as

sales organization, customer, and product, are predefined automatically for every

operating concern. These are known as fixed characteristics.

In addition to the fixed characteristics, up to 50 non-fixed non fixed characteristics

can be added to an operating concern.

Characteristic maintenance in the field catalog: These non-fixed characteristicsmust be added to the field catalog before they can be used to define a new operating

concern. The characteristics in the field catalog can be accessed in any client.

The field catalog originally contains some suggested characteristics which might

be used in a new operating concern definition. There are two ways to add other

characteristics to the field catalog:

• Choose an existing field from certain SAP tables, which must be five

characters long or less.

• Create a characteristic independently, which should begin with WW and be

four to five characters total.Behind every characteristic, there is potentially a check table with the valid

characteristic values for CO-PA. In this way, the data that flows into CO-PA are

checked. When manually creating a new characteristic in the field catalog, you

can decide whether the system should generate a check table for this.





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. For example, you can copy the fields from the tables for the

customer master records, material master records, and sales documents. You

can also copy the partner roles defined in the structure, PAPARTNER, in the

Sales and Distribution, SD, application as characteristics in Profitability

Analysis.• Newly defined characteristics: You can create ones that are only required

in Profitability Analysis. To derive the values for these characteristics, you

need to define your own derivation strategy.

• Predefined characteristics: In addition to the fixed characteristics, a

number of other predefined characteristics are available in the field catalog

and can be added to your operating concern, if required. These include the

customer group, customer district, and country characteristics.

• Fixed characteristics: A number of fundamental characteristics are

automatically predefined in every operating concern. These include the

product number, company code, billing type, business area, and sales order

characteristics.





Figure 5: Categories of Value Fields

Meaning of Value Fields

• In costing-based Profitability Analysis, value fields store the base quantities

and amounts for reporting. Value fields can either be highly summarized,

such as representing a summary of cost element balances, or highly detailed,

such as representing just one part of a single cost element balance.

• The sales-related key figures (e.g. revenue types, discounts, surcharges) are

normally presented in a very detailed way. By comparison, items based

on periodic costs (for example, period cost types) are aggregated. Unlike

characteristics, there are no fixed value fields for a new operating concern.

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. The value fields in the field catalog can be

accessed in any client. The field catalog originally contains some suggested

value fields, which might be used in a new operating concern. Value fields

can also be defined independently. These should begin with VV..., and

should be four to five characters in total.

• You do not need to create the value fields for calculated items, such as net

sales and contribution margin. These items are normally calculated from the

base values stored in the value fields during the report execution progress.

This minimizes the necessary data storage requirements.

Fixed Basic Key Figures (Account-Based CO-PA only)

• In account-based Profitability Analysis, all values are updated to accounts.

Each amount is stored in up to three different currencies under fixed basic

key figures, which are accessed in reporting.





Figure 6: Value Fields With New Time Aggregation Rules

You can use value fields with the aggregation rules, AVG (average) and LAS (last)

in CO-PA drill-down reports.

You define these value fields when you define the data structures for Profitability

Analysis.

Demonstration: Characteristics and Value Fields

Purpose

To demonstrate the use of characteristics and value fields

System Data

System:

Client:

User ID:

Password:


1. Begin by displaying all characteristics and show the information behind

a characteristic. Example: Customer group. Highlight the type of

characteristic, origin, and explain the concept of a check table.

IMG ! Controlling ! Profitability Analysis ! Structures ! Define

Operating Concern ! Maintain Characteristics: Customer group

Display the fixed fields and explain that fixed fields are delivered by SAP.

Show the technical fields. Explain that they are related to report dimensions

and technical identifiers, which are saved with each record.





2. Create two characteristics. Choose the first characteristic from the table,

MARA (reference table), by selecting the field, “LABOR” (Laboratory or

Office). Create the second characteristic as the user-defined characteristic,WWMGR, and name it “Regional Manager”. It has the data type, CHAR,

and is a three-digit field. Mention the corresponding check tables, T25**,

and the fact that these tables are created either automatically or manually.

Save and Activate each of the characteristics.


Operating Concern ! Maintain Characteristics: Change/Create

Explain some of the other possible options when creating characteristics, for

example, creating characteristics by referring to the ANY data element.

3. Display the list of value fields. Explain that value fields come in two

categories, quantity or currency, and can have various aggregation levels.Example:

Revenue: Each posting made to this field should be SUMMARIZED.

Number of employees: Only the LAST posting for a given period should be

reflected in CO-PA.

Available stock: The AVERAGE number of items on hand should be

reflected in CO-PA.

Create a value field, VVSPE, and name it “Special Handling ”.

Choose “summation” as the aggregation type and “Amount” as the value

field category.

Save and Activate the value field.

In account-based PA, the account number serves as the counterpart to the

value field. Account-based PA works with a fixed basic key figure, meaning

that, in addition to the sales quantity, every posted value on a cost/revenue

element is listed in three currencies.

IMG ! Controlling ! Profitability Analysis ! Structures ! Operating

Concern ! Maintain Value Fields





Defining an Operating Concern and its Attributes

Figure 7: Steps in Defining an Operating Concern

You define the structure of your operating concern when you set up your system.

This is done by selecting the characteristics you want to use in the data structures

of the operating concern.

In costing-based Profitability Analysis, you also need to select the value fields

you want to use.

The structure of an operating concern is valid in all clients.

Figure 8: Defining Operating Concern and Attributes





The attributes are client-specific parameters of an operating concern. They have

different effects, depending on the type of Profitability Analysis you are working

in.

Currency types

Operating concern currency- In costing-based Profitability Analysis, 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.

Company code currency- In addition to the operating concern currency, you have

the option of storing all data in the currency of the relevant company code. This

makes sense if your organization operates internationally and is concerned with

exchange rates that change daily. It allows you to avoid differences due to different

exchange rates and enables you to reconcile your CO-PA data directly with FI.

Profit center valuation In addition to storing data in these two currencies using

the legal company code, valuation view, you can also store data in both of these

currencies valuated from the viewpoint of individual profit centers.

Fiscal year variant

The fiscal year variant determines the number of posting periods for each fiscal

year. Because each controlling area assigned to the operating concern, and each

company code assigned to each of the controlling areas, can have its own fiscal

year variant, the variant you choose for the operating concern must agree with

that for the other areas.

Demonstration: Operating Concern and its Attributes

Purpose

To demonstrate how to create an operating concern and define its attributes

System Data

System:

Client:

User ID:

Password:


1. Create an operating concern named T001. Maintain the attributes and

mention the fiscal year variant and the various currencies that can be

displayed.


Operating Concern ! Maintain Operating Concern





2. Create the data structures for the operating concern, T001. When you are

choosing characteristics, make sure you choose the characteristics you have

created. Similarly, implement this for the value fields.



Change Operating Concern, IDEA, and add the above Characteristics and

Value Fields:

LABOR

WWMGR

VVSPE

STDPR

3. Save, Activate, and Generate the operating concern, at minimum IDEA.

When this takes place, you may want to explain that no one can maintain

the operating concern or make postings to any of its tables because data

tables are being rebuilt. Begin presenting the next graphics as your operating

concern begins the generation process. Note that to get to the “Generate”

step, you need to use the green arrow once. In addition, “Activate” normally

“Saves” as well.





11 Exercise 1: Operating Concerns

Exercise Duration: 10 Minutes

Exercise Objectives

After completing this exercise, 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, Italy, and the United States. For this

reason, it must be able to report sales and profitability both across the corporationin a group currency and in each of the legal entity’s local currency. The sales

managers require summarized sales performance figures, such as revenue,

discounts, and surcharges both along and across the lines of the sales structure,

product lines, and customers. They also need to view sales and marketing costs

along these lines. Describe the options available for the organizational structures

for CO-PA.

Task 1:

1. Check the basic settings and organizational assignments for the IDEAoperating concern using the Customizing Monitor.

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. Select the reporting date for the previous year.

1. Obtain an overview of the order situation with regard to sales characteristics.

Continued on next page





Task 3:

Call the profitability report AC605-ECPCA (Profit Center) in the costing-based

Profitability Analysis. Select the reporting date for the previous year with a plan

version.

1. Obtain an overview of the actual data with regard to sales characteristics.

Profit Center

Strategic Business Unit

Company Code





Solution 1: Operating Concerns

Task 1:

1. Check the basic settings and organizational assignments for the IDEA

operating concern using the Customizing Monitor.

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. The Company Code 1000 is also assigned to the controlling

area 1000.

All have the same fiscal year variant. Controlling Area and Company

Code have the same chart of accounts.All assigned organizational units are listed in the overview of

the organizational structures of the operational concern; detailed

information from the respective master data are also displayed.






Task 2:

Call the profitability report AC605-ORDER (order analysis) in the costing-based

Profitability Analysis. Select the reporting date for the previous year.

1. Obtain an overview of the order situation with regard to sales characteristics.

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.

Execute AC605 – ORDER order using F8 or via Report – Execute. The

report contains the data on incoming sales orders or revenue. The

difference represents the incoming sales orders = order balance still to be processed.

You can evaluate the prorated incoming sales orders or turnover,

differentiated according to strategic business units, sales organizations,

distribution channels and divisions using the assigned characteristics.

Task 3:

Call the profitability report AC605-ECPCA (Profit Center) in the costing-based

Profitability Analysis. Select the reporting date for the previous year with a plan

version.

1. Obtain an overview of the actual data with regard to sales characteristics.

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.

The report contains the data accumulated according to Profit Center.

However, reporting is done here according to cost of sales accounting, position values are not presented in CO-PA.





Lesson Summary

You should now be able to:• Describe the various organizational units


operating concern






Lesson:

16

Data Structures


Lesson Overview

This lesson defines data structures and identifies the transaction data structures. It

also covers the CO-PA database structures and the operating concern templates.

Lesson Objectives



• Identify transaction data structures• Describe the CO-PA database structures and the operating concern templates

In this lesson, you must define the importance of data structures in an operating

concern. You must identify for the participants, the transaction data structures.

You must also 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. As a member of the project team of your company,

you are supposed to advise on the question of whether to implement CO-PA or

EC-PCA in the SAP system. You will be responsible to implement the selected

applications. Both cross-company and company-specific reporting of contribution

margins is required in multiple currencies. The multidimensional analysis of

sales information, cost-of-sales information, production variances, and period

cost information is required for various market segments. Estimated costs are

required for the actual costs posted only at the month-end. Actual period costs (S,

G, and A) for various organizational entities are to be reflected at the month-end.

Reporting by value category and by income statement account is required. For

this purpose, you need to understand the operating concern, data structures, and

segment level and non segment level characteristics.

Defining Data Structures

Explain to the participants that several steps are involved in defining an operating

concern. First, the characteristics and value fields are defined as independent of

any operating concern. Operating concerns are then created on the basis of these

characteristics and value fields.




TFIN22_2 Lesson: Data Structures

Figure 9: Operating Concern Data Structures

Defining Data Structures

To define data structures, copy the required characteristics and value fields to

the operating concern and save them.

Activating the Environment (up to 4.6B Generation)

After you have defined the attributes and data structures of an operating concern,you must activate them and generate the operating environment.

This process generates all the tables, programs, and technical objects required to

support the operating concern you have defined.

After you generate the operating concern and before you activate Profitability

Analysis for data entry, add the valid characteristic values to the check tables

generated for the new characteristics.

Changing the Data Structures

You must reactivate the environment after you change the data structures of an

operating concern. For example, reactivate the environment after you add a newcharacteristic or a value field.

The regeneration process does not affect any existing transaction data. 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.

The regeneration process will not affect any characteristic values that have already

been entered in check tables for user-defined characteristics.





Transaction Data Structures

You may want to draw up a simple example of a sales order. It is important that

participants understand what a profitability segment is and how it is created. The

first thing to explain is that they get dynamically created by the system when a

unique combination of characteristic values is posted to CO-PA:

Sales Order 1000:

Customer 1000 Product X:

Revenue 100,000 Tables: CE1, CE3,CE4

Product Y: Revenue 120,000 Tables:

CE1,CE3,CE4

Sales Order 2000:

Customer 1000 Product X:

Revenue 50,000 Tables: CE1, CE3

Content in CE4: Profitability segment 1

Customer 1000, Product X…

Content in CE3: Profitability segment 1

Revenue 150,000…

Figure 10: CO-PA Transaction Data Structures (1)





Costing-based CO-PA stores its transaction data in its own data tables, which are

created when activating and generating the operating concern. This means that its

data will never affect the execution speed of a report in another CO application.

Account-based CO-PA stores its transaction data in the transaction data tables for

Overhead Cost Management. This means that its data will affect the execution

speed of reports for other CO applications that share the same transaction data

tables.

The definitions of profitability segments for both CO-PA sub modules are stored

in the same table, CE4XXXX, where XXXX = operating concern. The system

always accesses this segment definition table when posting the transaction data for

costing-based or account-based CO-PA.

Profitability segments, which represent the account assignment objects for

profitability analysis, are unique combinations of characteristic values that thesystem creates and numbers automatically from the information in the originating

transactions.

Figure 11: CO-PA Transaction Data Structures (2)

The CE3... and CE4... tables work effectively together to store the summarized

transaction information, both actual and plan, for costing-based ProfitabilityAnalysis.

The CO-PA drill-down reporting tool accesses the data in the CE3... and CE4...

tables. Line item data and the information from the CE1... and CE2... tables can

be accessed through line item display features.





CO-PA Database Structures

Figure 12: CO-PA Database Structures

The data of CO-PA is divided into characteristics and value fields. The

characteristics are stored in the data division of the table, CE4xxxx. The key of

the CE4xxxx basically consists of the profitability segment number that is used as

a join field for the table, CE3xxxx. The key of the table, CE3xxxx, consists of the profitability segment number and the posting-period and some other technical

fields that are not listed. The value fields are specified in the data division.

The table, CE4xxxx, represents the profitability segments, created based on the

business considerations that are defined when an operating concern is created. The

table, CE3xxxx, contains the values posted to the profitability segments that are

additionally available broken down into the posting period. Typical record lengths:

CE4xxxx = 250 bytes, CE3xxxx = 2000 bytes.

Segment Level and Non-Segment Level Characteristics

You first have to name an operating concern and then define its attributes.

Explain the various currency options and the period type, “Weeks”. This period

type stores data in weeks and posting periods, which increases data volumes

drastically. The setting is only possible in costing-based Profitability Analysis.

After the attributes are defined, you can define the data structures for the operating

concern. To do this, select the required value fields and characteristics for the

profitability segment. Then, you must save these, activate them and generate

the data structures. During the generation process, the system creates the tables,





CE1XXXX, through CE8XXXX and check tables. The tables from CE1 through

CE4 are of particular significance for the market segments. It is important to

mention that the data in costing-based profitability analysis is stored in separatetables, and the data for account-based profitability analysis is stored in the same

tables as the other CO modules.

CE4 contains only the characteristic values and profit segment numbers.

CE3 is the table access by drill-down analytics. It contains the profit segment

number, certain technical characteristics, and the values for value fields. CE1

contains all characteristics and value fields as well as technical 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 achieve this by

restricting the selection of characteristics for the profitability segment.

You can to configure the system so that certain characteristics are not used in

defining profitability segments. 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.For example, you must have access to the number of the order that has occurred in

SD in every CO-PA line item (CE1). However, 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. This would create as many summary records as line items.

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. Certain fixed characteristics are generally not used at object

level. However, this can be changed if required.





SAP recommends that data be summarized on a higher level, something other than

the customer or product level, for account-based CO-PA to minimize the number

of summary records. This is because its transaction data is stored in the tables thatare shared with other Management Accounting applications.

Demonstration: Segment Level and Non-SegmentLevel Characteristics

Purpose

To demonstrate the segment level and non segment level characteristics in

Profitability Analysis

System Data

System:

Client:

User ID:

Password:


1. Display the segment level characteristics in Profitability Analysis and

explain the significance and impact of the settings. All characteristics are

contained in this table. You can see that you have set these characteristics

to “not used”, and you have not defined the characteristics at object level

either for the costing-based only or for the costing-based and account-based

profitability analysis. This table works somewhat backwards because you

define here which characteristics should be non segment level. The example

that is normally cited is the sales order number or sales order line number

that you want to see at the line item level but you probably will not want as

a drill-down characteristic.


Profitability Segment Characteristics (Segment-Lvl Characteristics)

Operating Concern Templates

Operating Concern Templates are a new concept from Release 4.6. In previous

Releases, very little example data and configurations were set up for Client 000.

That is why, to test the profitability analysis up to now, a complete configuration

was executed. Templates are a simple option for creating example data for

checking the possibilities of the profitability analysis. Note that the profitability

analysis is often a “Phase II” project and the implementation plan has to be

“justified” to the executive board. This demo tool is a great help here. Quickstart





takes this concept a step further. To create an operating concern quickly, it is

sufficient to simply copy a template or to execute the basic configuration steps

using the documentation.

Figure 14: Operating Concern Templates

CO-PA provides you with operating concern templates, predefined sample

operating concerns, an environment in which to display the Customizing for these

operating concern, make changes to the Customizing settings, and copy them.

S_AL: Template for Route Profitability.

S_GO: Cross Industry Template.

S_CP: Consumer Goods Industry Template.

Operating concern templates offer the following advantages:

They enable you to gain an insight into Profitability Analysis as a demonstration,

without your having to perform extensive Customizing. This means that you can

use the templates as a basis for quickly calling up reports.The operating concern templates simplify the Customizing in the profitability

analysis. If necessary, you can adjust your Customizing settings for an operating

concern template as required, copy these and then use the copied and adjusted

operating concern productively.





Figure 15: Quickstart

Use SAP Operating Concern Templates.

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. Further, operating concerns that have already been

preset are available, allowing Profitability Analysis to be quickly integrated into

your productive system. To do this, you can customize these operating concerntemplates. At any time, you can reset the templates to their original settings.

Start the transaction for operating concern templates. The template for the

consumer industry is loaded automatically.

The details view provides you with an overview of the delivered settings and of

the modifications that you can make. By choosing Application examples, you can

view reports and planning layouts. The system fills them with example data to

demonstrate more clearly how the application works. You can delete the example

data later.

If you want to use an operating concern template for your profitability analysis,

you first have to copy it. You can find this function under “Tools”. This is alsowhere you can choose to reset an operating concern template back to its initial

state.

Demonstration: Operating Concern Templates

Purpose

To demonstrate the use of operating concern templates





System Data

System:

Client:

User ID:

Password:


1. Show operating concern templates and the use of sample data.

CO-PA Configuration ! Structures ! Define Operating Concern !

Sample Operating Concerns Templates ! Use SAP Operating Concern

Templates ! Application Examples ! Prepare Application Examples:

Create Example Data

2. Select a year:

This will generate sample data for reporting and planning. In addition, point

out the context sensitive help on the right Run a sample report.

Execute Application Examples ! Execute Profitability Report: SCPBO.

3. Use the customer group, 01, and the year of your sample data.

4. To access a configuration activity, simply double-click one of the steps.

Note: It has been found several times after the system was upgraded,

or new hot packages installed, that the sample operating concern

has to be reconfigured. If this situation is encountered, confirm to

rebuild the operating concern when prompted. Then, proceed withthe above demonstration. You might also want to show the report,

SCPB0, first to demonstrate the fact that no data exists before you

generate the data for 1999.





25 Exercise 2: Data Structures


Exercise Objectives


• 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, such as gross

revenue, discounts, and surcharges both along as well as across the lines of the

sales structure, product lines, and customers of the company. The sales manager

also wants to view sales and marketing costs along these lines.

Task 1:

In the CO-PA settings menu, display all defined characteristics.

1. What is the table of origin for the Customer Class characteristic?2. 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,

you determine that the following characteristics and value fields are required for

reporting. In the data structures of the operating concern, determine which of

the following items are value fields, non-fixed characteristics, fixed (delivered)

characteristics, and technical fields:

Customer, Customer Group, Material Group, Controlling Area, Cost

Element, Revenue, Customer Discount, Profit Center, Price Reduction, Sales

Organization, Variable Production Costs, Sales District, Posting Date, Fiscal

Year, and Number of Employees.

Note: The overview list contains all user-defined characteristics, default

characteristics, and the characteristics selected from the reference tables.

It does not include fixed characteristics or technical fields.

Assign the list of items in 2-2 to the following groups:

1. Which characteristics are non-fixed characteristics?

2. Which characteristics are fixed characteristics?

3. Which fields are technical fields?

4. Which fields are value fields?

5. What are the aggregation settings for the Number of Employees value field?

Why may you decide to use this field?

6. Display the Strategic Business Unit characteristic. What type of

characteristic is the Strategic Business Unit?

7. Display the REGIO (Region) characteristic. Is the characteristic grouped

with another characteristic?

Why and with what consequences?





Solution 2: Data Structures

Task 1:

In the CO-PA settings menu, display all defined characteristics.

1. 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”.

Search for the characteristic “KUKLA” (customer classification)

2. What is the check table for the Sales District characteristic?

a) Select: BZIRK and Details. The check table is T171.

Task 2:

Based on the requirements of your project team defined in the company scenario,

you determine that the following characteristics and value fields are required for

reporting. In the data structures of the operating concern, determine which of

the following items are value fields, non-fixed characteristics, fixed (delivered)

characteristics, and technical fields:

Customer, Customer Group, Material Group, Controlling Area, Cost

Element, Revenue, Customer Discount, Profit Center, Price Reduction, Sales

Organization, Variable Production Costs, Sales District, Posting Date, FiscalYear, and Number of Employees.

Note: The overview list contains all user-defined characteristics, default

characteristics, and the characteristics selected from the reference tables.

It does not include fixed characteristics or technical fields.

Assign the list of items in 2-2 to the following groups:

1. Which characteristics are non-fixed characteristics?


Operating Concern!

Maintain CharacteristicsSelect Display All Characteristics and Choose Display

Customer Group, Material Group, and Sales District.

2. Which characteristics are fixed characteristics?

a) Extras! Fixed Fields

Customer, Controlling Area, Profit Center, and Sales Organization.






3. Which fields are technical fields?

a) Posting Date, Fiscal Year, and Cost Element

4. Which fields are value fields?

a) IMG! Controlling ! Profitability Analysis ! Structures!

Operating Concern! Maintain Value Fields

Select All Value Fields! Display

Revenue, Customer Discount, Price Reduction, Variable Production

Costs, Number of Employees

5. What are the aggregation settings for the Number of Employees value field?

Why may you decide to use this field?

a) Select No. of Employees and Detail.

LAS (AVG and SUM also possible).

Period values are normally added together in the Information System

and in Profitability Analysis (CO-PA) planning. This means the

aggregation rule is SUM. The aggregation rules, Last value and

Average, are useful only for representing statistical, non-cumulative

values in value fields, when the most recent or average value is required

instead of the sum.

6. Display the Strategic Business Unit characteristic. What type of

characteristic is the Strategic Business Unit?



Select All Characteristics! Display

Select the strategic business unit WWSBU and then Detail:

User-defined field with 8 characters.

7. Display the REGIO (Region) characteristic. Is the characteristic grouped

with another characteristic?






Why and with what consequences?



Select : Display All Characteristics. Select the characteristic REGIO

(not Region before Rel. 4.5) and, in the detailed display, click: Show

compound characteristic

The REGIO characteristic is grouped with the COUNTRY

characteristic. This takes into consideration that the table for

maintaining the master data values for the REGIO characteristic is also

maintained for the COUNTRY characteristic, because region without

country does not have a clear, semantic meaning.

By double-clicking the check table T005S for the REGIO characteristic,

the assignment of the country characteristic becomes visible as part of

the selection.

The result is that, when saving data next to the region, the country is

also saved. When you call a report, the country is also displayed, even

if you have only assigned the REGIO characteristic to the report.





31 Exercise 3: Maintain the Operating

ConcernExercise Duration: 15 Minutes

Exercise Objectives


• 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.

Your sales manager and product manager ask you which data fields you

specifically require for reporting.

Task 1:

Attributes of the Operating Concern

You have decided to use both company code and operating concern currencies in

costing-based PA.

1. Display the currency settings for the operating concern, IDEA. What settings

are configured?

2. 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, Customer, Postal Code

1. Which of these characteristics are selected for the operating concern?

2. Your product manager has requested that the following value fields be made

available in the operating concern:

Sales Order Quantity, Scrap, Marketing Projects

Which of these value fields are configured for the operating concern?






Task 3:

1. Are own profitability segments formed on the “IDEA” operating concern for

the characteristics ORDER or SALES ORDER ITEM?

2. When data are posted into the costing-based and account-based IDEA

profitability analysis for 3 different products, how many data records

are posted in the costing-based,

account-based

profitability analysis?

Task 4:

1. What is the status of the operating concern, IDEA? Why could thisinformation be important?





Solution 3: Maintain the Operating

ConcernTask 1:

Attributes of the Operating Concern

You have decided to use both company code and operating concern currencies in

costing-based PA.

1. Display the currency settings for the operating concern, IDEA. What settings

are configured?

a) You have decided to use both company code and operating concern

currencies in costing-based PA.

Display the currency settings for the operating concern, IDEA. What

settings are configured?


Operating Concern ! Maintain Operating Concern: ’Attributes’ tab

Operating Concern Currency: EURO

Company Code Currency: selected

OpConCurrency, PrCtr-Valuation: selected

CompCodeCurrency, PrCtr-Valuation: selected

2. What is the fiscal year variant for IDEA?

a) What is the fiscal year variant for IDEA?

K4, Calendar Year + 4 special periods






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, Postal Code

1. 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, Customer, and Postal Code

Which of these characteristics are selected for the 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).

Material Group, Customer (fixed characteristic)

2. Your product manager has requested that the following value fields be made


Sales Order Quantity, Scrap, Marketing Projects


a) Your product manager has requested that the following value fields are


Ordered Quantity, Scrap, Marketing Activities, and Annual Rebates.




Choose Display and select the Value Fields tab on the Data Structuretab.

Sales Order Quantity, Scrap, and Marketing Activities.






Task 3:

1. Are own profitability segments formed on the “IDEA” operating concern for

the characteristics ORDER or SALES ORDER ITEM?


Profitability Segment Characteristics (Segment-Lvl Characteristics)

No profitability segments are formed for the characteristics Order and

Sales Order Item. However, this does not mean that the data cannot be

evaluated according to these characteristics. The line item report and

the profitability report based on line items are available for this.

2. When data are posted into the costing-based and account-based IDEA

profitability analysis for 3 different products, how many data records

are posted in the costing-based,

account-based

profitability analysis?

a) As the PRODUCT characteristic was only excluded for the

account-based profitability analysis, when updating

• in the costing-based profitability analysis per product,

• only 1 totals record is updated in the account-based profitability

analysis

by comparison. The reason may have to do with the different

information requirements of the users in the account-based or

costing-based profitability analysis.

Task 4:

1. What is the status of the operating concern, IDEA? Why could this

information be important?

a) What is the status of the operating concern, IDEA? Why could this

information be important?


Operating Concern!

Maintain Operating Concern: ’Environment’ tab

Status = Active

This means that the environment of the operating concern has been

generated, all data tables are active, and attributes created. If any of the

steps, Save, Activate, or Generate have been left out, no postings can

be made to the tables of the operating concern. This would result in an

error in any data transaction that affects the operating concern.





Lesson Summary

You should now be able to:• Define data structures






TFIN22_2 Unit Summary

Unit Summary

You should now be able to:



operating concern








Unit Summary TFIN22_2




TFIN22_2 Test Your Knowledge

39Test Your Knowledge

1. What does a controlling area represent?

2. In costing-based Profitability Analysis, store the

base quantities and amounts for reporting.

Fill in the blanks to complete the sentence.

3. State the importance of the fiscal year variant in an operating concern.

4. Which of the following is the highest reporting level within CO-PA?

Choose the correct answer(s).

! A Operating concern

! B Controlling area! C Company code

! D Plant

5. The characteristics, such as “sales organization”, “customer”, “and product”,

are predefined automatically for every operating concern and are known as

.


6. In costing-based Profitability Analysis, the actual data is always updated in

the company code currency. Determine whether this statement is true or false.

! True

! False




Test Your Knowledge TFIN22_2

7. To define data structures, you need to copy the required characteristics and

value fields to the operating concern.

Determine whether this statement is true or false.

! True

! False

8. -based CO-PA stores its transaction data in its own data

tables, which are created when activating and generating the operating

concern.


9. If you want to implement an operating concern template as a template for

your Profitability Analysis, you first need to copy it using the copy functionunder .


10. What must be done after you generate the operating concern, and before you

activate Profitability Analysis for data entry?

11. Costing-based CO-PA stores its transaction data in the transaction data tables

for Overhead Cost Management.


! True

! False

12. State the advantages of operating concern templates.





41Answers

1. What does a controlling area represent?

Answer: The controlling area is an organizational unit delimiting

theindependent cost accounting operations of the organization, such as cost

center accounting, profit center accounting, and order accounting. Company

codes are assigned to controlling areas when organizational structures are

defined.

2. In costing-based Profitability Analysis, value fields store the base quantities

and amounts for reporting.

Answer: value fields

3. State the importance of the fiscal year variant in an operating concern.

Answer: The fiscal year variant determines the number of posting periods

for each fiscal year. 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. For this reason, the variant you choose for the

operating concern must agree with that for the other areas.

4. Which of the following is the highest reporting level within CO-PA?

Answer: A

Operating concern is the highest reporting level within CO-PA.

5. The characteristics, such as “sales organization”, “customer”, “and product”,

are predefined automatically for every operating concern and are known as

fixed characteristics.

Answer: fixed characteristics

6. In costing-based Profitability Analysis, the actual data is always updated inthe company code currency.

Answer: False

In costing-based Profitability Analysis, the actual data is always updated

in the operating concern currency.





7. To define data structures, you need to copy the required characteristics and

value fields to the operating concern.

Answer: True

To define data structures, copy the required characteristics and value fields to

the operating concern and save them.

8. Costing-based CO-PA stores its transaction data in its own data tables, which

are created when activating and generating the operating concern.

Answer: Costing

9. If you want to implement an operating concern template as a template for your Profitability Analysis, you first need to copy it using the copy function

under Tools.

Answer: Tools

10. What must be done after you generate the operating concern, 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, you need to add the valid characteristic

values to the check tables generated for the new characteristics.

11. Costing-based CO-PA stores its transaction data in the transaction data tables

for Overhead Cost Management.

Answer: False

Account-based CO-PA stores its transaction data in the transaction data

tables for Overhead Cost Management.

12. State the advantages of operating concern templates.

Answer: The advantages of operating concern templates are:

1. They enable you to gain an insight into Profitability Analysis without

the need to perform extensive Customizing.

2. The operating concern templates simplify the Customizing in the

profitability analysis. If necessary, you can adjust your Customizing

settings for an operating concern template as required, copy these and

then use the copied and adjusted operating concern productively.




Unit 2 43 Master Data

This unit covers characteristic derivation and valuation. When you explain

characteristic derivation, explain in-depth the cases in which participants must

define their own derivation steps. In addition, when you explain valuation, explain

extensively that for actual data in particular, valuation is used only if the participant

wants to calculate or estimate values to supplement the existing actual values.

Unit Overview

This unit discusses the concepts of derivation and valuation. It explains the

derivation strategy and how to evaluate the derivation techniques. In addition, it

discusses valuation using product cost information and outlines valuation using a

CO-PA costing sheet.

Unit Objectives


• 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 .......... 53Lesson: Characteristic Derivation .. ... ... .. ... .. ... ... .. ... ... .. .. ... .. ... ... . 59

Demonstration: Check Tables ... ... .. .. ... .. ... ... .. ... .. ... .. ... .. ... ... . 61

Demonstration: Characteristic Derivation ................................ 61Demonstration: Characteristic Derivation with Move ................... 70

Exercise 4: Derivation ... .... ... .... .... .... ... .... .... .... .... .... .... ... .. 73


http://-/?-

http://-/?-

http://-/?-

http://-/?-



Unit 2: Master Data TFIN22_2

Lesson: Valuation................................................................ 83

Demonstration: Valuation Using a Product Cost Estimate. . . .. . . . .. . .. 95

Demonstration: Valuation Using a Costing Sheet .. .. .. .. .. .. .. .. .. .. .. . 98Demonstration: Valuation Strategy........................................ 99Demonstration: Periodic Valuation .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .100

Demonstration: Customizing Monitor .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..102Exercise 5: Valuation... .... .... .... ... .... ... .... ... .... ... .... .... .... ... .103


http://-/?-

http://-/?-



TFIN22_2 Lesson: Introduction to Characteristic Derivation and Valuation

Lesson:

44

Introduction to Characteristic Derivation and Valuation


Lesson Overview

This lesson helps you to understand the concept of characteristic derivation. It

also describes the concept of valuation.

Lesson Objectives




Characteristic derivation is used to determine the value of one characteristic

based on the value of another, provided there is a logical dependency between

the two. It is important for the participant to realize that most derivation steps

are created automatically by the system during generation. Explain extensively

the cases in which the users must define their own derivation steps and the

possibilities that the system offers for doing this.

Valuation can only be used in the costing-based approach and it can be used for

both planning and actual values. Explain that for actual data in particular, valuation

is only used if the user wants to calculate or estimate the values to supplement the

existing actual values. Valuation is also used to read cost estimates for materialsand, as a result, retain the cost component split for the cost of goods manufactured.

This cost component split for the cost of goods manufactured is the only way in

which fixed and variable manufacturing costs can be displayed separately, and

contribution margin accounting according to full and partial costs can be realized.

Business Example


application in the SAP system. As a member of the project team, you are supposed

to advise on the question of whether to implement CO-PA or EC-PCA in the SAP


Mr. Udo, Mrs. Veloce, and Mrs. Schnell require profitability reports for

many characteristics, some of which are available on the selling and invoicing

transactions (the sales organization, sold-to, product, etc.), and some of which are

available only on master records (the product group, state, etc.). Mr. Udo requests

that, for sales reports, the state and country should first of all be determined from

the goods recipient (if there is one for the CO-PA relevant transaction). If not, they

should be derived from the sold-to party. Mrs. 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. In

addition, she requires profitability reports on the special characteristic Strategic

Business Unit, which is only determined via the product group. This specialcategorization of product groups is only used within CO-PA. 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. These costs are not

applied in a costing-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. The detail

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, such as

the margin after fixed costs and the margin after all costs.

For this purpose, an understanding about the characteristic derivation and

valuation concepts is required.

Characteristic Derivation: Central Points

• Some keys point about derivation:

– Derivation supplements or overwrites certain automatically mappedcharacteristic values.

– A derivation strategy is a sequence of steps, where each step uses one

derivation technique to calculate one or more values for one or more

characteristics, respectively.

– Control attributes can be assigned to each step, such as conditions for

execution, reactions when unsuccessful, and overwrite authority.

– Some derivation steps are created by the system at generation time, of

which some are modifiable. Others are created by the configurator

from the beginning.





Evaluation: Central Points

• Some key points about valuation are:

– Valuation supplements the data being passed directly from transactions

into Controlling Profitability Analysis with calculated, retrieved, or

otherwise accessed values.

– A valuation strategy can contain CO-PA costing sheets, Sales Order

Management pricing procedures (in planning), product costing calls,

and user exit calls, in a sequence that can be customized.

– Valuation strategies must be assigned to record types, points of

valuation, and plan versions when applicable to be activated.

– Using valuation is optional. It is merely a tool that can be used in an

attempt to get the most complete and useful information out of CO-PA.

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, billing) creates

line items in CO-PA. 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.





For each sales order management transaction, the system automatically imports

the sales organization, distribution channel, division, customer, product, profit

center, business area, and any sales order management partners for each salesorder or invoice item. Notice that the values for all of these, except customer and

product, can be overwritten with derivation.

In addition to those values determined through the automatic mappings, derivation

can access additional information, such as characteristic values, both on and off

the originating transaction. For example, it could supply the sales district from the

invoice and the product group from the material master.

In addition to the values imported through the manual mappings, valuation can

import information that is off of the originating transaction as well. For example, it

could supply in-depth product cost breakdown information from Product Costing,

which is not available on the sales document.

All CO-PA-relevant transactions are affected by derivation configuration, and

some of these are affected potentially by valuation configuration, which is optional.





Facilitated Discussion

Discussion Questions

Use the following questions to engage the participants in the discussion. Feel free

to use your own additional questions.

Outline the use of characteristic derivation and valuation.





Lesson Summary

You should now be able to:• Explain the derivation concepts





TFIN22_2 Lesson: Characteristic Derivation

Lesson:

48

Characteristic Derivation


Lesson Overview

This lesson helps you to understand the derivation strategy. In addition, it explains

how to evaluate derivation techniques.

Lesson Objectives




In this lesson, establish that the system automatically generates a derivation

strategy when you generate your operating concern. Describe the standard

derivation steps. Next, show the options available for users to add derivation steps.

Underline that this is normally only required for the user-defined characteristics

that were not transferred from an SAP table.

Business Example


application in the SAP system. As a member of the project team of your company,you are supposed to provide advise on the question of whether to implement

CO-PA or EC-PCA in the SAP system. You then will be responsible to implement

the selected applications.

Mr. Udo, Mrs. Veloce, and Mrs. Schnell require profitability reports for

many characteristics, some of which are available on the selling and invoicing

transactions (the sales organization, sold-to, product, etc.), and some of which are

available only on master records (the product group, state, etc.). Mr. Udo requests

that, for sales reports, the state and country should first of all be determined from

the goods recipient (if there is one for the CO-PA relevant transaction). If not,

they should be derived from the sold-to party. Mrs. Veloce is familiar with the

customer hierarchy that is defined in the Sales Order Management and insistson being able to report along the lines of that hierarchy even in the Profitability

Analysis. In addition, she requires profitability reports on the special characteristic

“Strategic Business Unit”, which is only determined via the product group. This

special categorization of product groups has meaning only within CO-PA.

As a result, for reporting, sales organization, distribution channel, division,

sold-to, ship-to, and product, the information is required from each order/invoice

item. The product group and product hierarchy information is required from the

material master record. The country and state are required from either the ship-to





record or the sold-to record. The customer hierarchy information is required for

each business transaction (or simply „transaction") involving a customer. Product

groups are to be categorized into special categories called ‘strategic businessunits’ for reporting.

For this purpose, the characteristic derivation strategy and techniques need to

be used.

Characteristic Derivation Concept

Characteristic Derivation Concept

At this point, question the course participants about the following points: What

characteristics can the system read from one simple sales order? Possible answersare: Item, customer and sales organization. The next question is – where could

the system find values such as the customer group and the product group? In

addition, explain the concept of check tables extensively at this point. Highlight

the fact that most check tables are maintained in other applications but the check

tables for user-defined characteristics need to be maintained by someone with

access to CO-PA configuration. Further, point out that the system “attempts” to

derive all characteristic values.

Figure 17: Characteristic Derivation Concept





For each CO-PA-relevant transaction, if the derivation strategy is complete,

the system tries to derive a characteristic value for each characteristic in the

operating concern. Notice that derivation is not always successful. If the systemcannot determine a characteristic value for a characteristic, then a blank, null, or

unassigned characteristic value is posted.

The total combination of (segment-level) characteristic values for a given

transaction consists of the definition of the relevant profitability segment.

The profitability segment is the account assignment object for the Profitability

Analysis.

Demonstration: Check Tables

PurposeTo demonstrate the steps to check tables

System Data

System:

Client:

User ID:

Password:


1. Show the check table for “Sales District”“.

Application menu ! CO-PA ! Master Data ! Display CharacteristicValues: All Characteristics On/Off ! Referenced Characteristics ! Sales

District ! Define Sales Districts: Execute

Maintain the check table for the characteristic, WWMGR, which you created

in the previous chapter:

001 = Miller

002= Jones

003= Smith

Emphasize that so far we have not instructed the system under which

circumstances Miller, Jones, or Smith will be the Regional Manager.

Demonstration: Characteristic Derivation

Purpose

To demonstrate the characteristic derivation concept





System Data

System:

Client:

User ID:

Password:


1. Create a line item in Profitability Analysis:

Accounting ! Controlling ! Profitability Analysis ! Actual Postings

! Create Line Items

Posting date: Today’s date

Record type: F

Customer:

Sales organization:

Distribution channel:

Company code:

Product: P-100

Plant:

Execute the derivation function. Talk about the derivation analysis function.

Extras ! Derivation Analysis.

Point out that certain fields were derived while others, such as the sales

order reason, were not derived.

Invoiced quantity in sales units: 100 units

Revenue:

Post the document.

Display the line item and call up the characteristics.

Accounting ! Controlling ! Profitability Analysis ! Information System

! Display Line Items ! Actual/Plan.

In a second session, use these characteristic values to explain the derivationtechniques table look-up and the derivation rule. To do this, display the

characteristic derivation function in Customizing and demonstrate three

different views of characteristic derivation.

IMG ! Controlling ! Profitability Analysis ! Master Data !

Characteristic values ! Define Characteristic Derivation.

Explain that the Initial screen displays only customer-specific derivation

steps.





Use “Expand All” to show all derivation steps. Highlight the following

example for each derivation technique:

Standard derivation: Function call: Company Code from plant

Table look-up: Sales district: Sales district from Customer/Sale-

sOrg./Dist.Channel/Division

Derivation rule: Strategic business unit: Product category + Division!Strategic business unit

Show the information behind the table look-up and explain the concept of

a key field (in another application), which accesses the table in which the

target characteristic value is stored. This means the key field values need

to be known if derivation is to be successful for a particular field. The

required field in that table is mapped to a CO-PA characteristic. Customers

usually do not deal with the setting up of table look-ups. However, they must

understand how the look-ups work to be able to decide whether they even

want this type of derivation. A good example is the field “Division”, which

can be derived from the sales order, the customer, or the product.

Show the derivation rule and rule entries. Underline that derivation rules

access only the characteristic values in CO-PA and function on the principle

of source field(s) derive target field(s).

Set up your own derivation rule for the Regional Manager:


Characteristic Values ! Characteristic Derivation ! Display <-> Change:

Create

Choose: Derivation Rules and name them: Regional Manager

from Sales District

Source: Sales District Target: Regional Manager

Save and create “ Rule Entries”.

First turn column On/Off so you can enter from – to values. Next,

enter the following information:

Sales District 00001- 00005 = Regional Manager 001

Sales District DE0010 – GB0025 = 002

Sales District IT0010 – US0025 = 003

Most derivation steps can be modified and enhanced with the following

options:

Properties: Define the system reaction if no value is found. This can be an

error message (default) or no message. An example could be that the sales

district, 00006, is added in the SD module, and a posting is made to the





sales district. The derivation of the regional manager in this case would fail

because no rule entry has been maintained. Should the system post anyway

or issue an error message to the user?

For derivation rules, you can also define effective dates if required.

Condition: This feature controls whether a particular derivation step should

be executed only under certain conditions, for example, if the plant = 1000.

Sequence of operations: Certain derivation steps have to take place before

others can be successfully executed. The Derivation strategy table allows the

user to move steps up or down the list. If you intend to demo this feature,

make sure you do not save your entries. To highlight a derivation step, click

the square to the left. To select the destination, click the description field. Do

not select the square. Next, click the “Move” button. All steps are executed

from the top to the bottom.

Enter another line item to test the Derivation Strategy.

Derivation Strategy and Techniques

Figure 18: Derivation from a Customizing Viewpoint

A derivation strategy consists of a number of different steps, which derive

the different characteristic values. Each derivation step defines the logical

interrelationship between known source characteristics and the characteristics

to be derived.





The system automatically creates a standard derivation strategy for each operating

concern. This strategy contains the derivation steps for all the dependencies that

are already known between characteristics. You can then change this strategy tomeet the requirements of your organization. If you define your own characteristics

that need to be derived from other characteristics, you need to add your own

derivation steps to the standard strategy to define this 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. This step sequence

is known as the derivation strategy.

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,

such as table lookups, derivation rules, region, product and customer hierarchies,

moves, clears, and enhancements. The values for one or more characteristics can

be determined in a single step.





Derivation occurs for every CO-PA-relevant transaction, including direct entry

into CO-PA and external data uploads into CO-PA. Note: For more information on

customer exit functions, see the Appendix.

Figure 20: Standard Derivation of Organizational Units

Certain characteristics, such as division and profit center, have fixed derivation

steps. This means that the system automatically generates nonmodifiable stepsthat 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.

You can use other derivation steps to overwrite the values determined through the

fixed derivation steps. This can be normally achieved with all characteristics,

except for controlling area, company code, product, and customer. These have

fixed, nonmodifiable derivation.

The system incorporates fixed derivation to force, at high levels, or at least

enhance the possibility of reconciliation with data in other modules in the SAP

system, at other levels.





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. For example, an invoice may not contain the purchasing

group for a material that is being sold. Notice that CO-PA can capture this

information for the invoice item using a table lookup.

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. For example, a country value can be determined when a customer

is known. This is because the customer is the only key to the KNA1 table that

contains general customer information, such as addresses.

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. For example, 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.

Using table lookups, 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. For example, 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.





Some table lookups are generated automatically on the basis of a characteristic‘s

definition. These are generated when the operating concern environment is

generated. Notice that the nonfixed lookups can be modified. Other tableslookups, such as the ones for user-defined characteristics must be created from

the beginning.

Figure 22: Derivation Rule

Derivation rules are used to determine characteristic values through user-defined

logic. They are frequently used with user-defined characteristics although they are

not limited to this application.

With derivation rules, characteristic values, known as target values, are determined

directly based on the values of other characteristic values, known as source values.

Similar to other derivation steps, derivation rules can be configured either to apply

for all situations or to only apply when certain conditions are met (for example,

only for sales organization 1000). Accordingly, you can also configure the

derivation rules to produce an error message when a characteristic value cannot bedetermined through the rule entries. You can also ignore the error and proceed.

In contrast to other derivation steps, derivation rule entries can be configured to

be either related to a specific interval or time, which is being time-dependent, or

applicable for all times, which is being time-independent. Derivation rules can be

set up in sequence with other derivation steps and methods to produce complex

derivation logic.





Figure 23: Derivation with Move and Clear

With a move, you can directly transfer a characteristic value or a part of the

characteristic value to another characteristic. Under certain conditions, you can

also move a constant to a characteristic.

In the above example, 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. When certain conditions arise, the clear function is available to

clear a value from a characteristic. In addition, 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.

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.





Customizing Monitor Derivation Analysis

Figure 24: Customizing Monitor: Derivation Analysis

The Customizing Monitor provides an overview of all derivation steps. 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 inderivation.

Demonstration: Characteristic Derivation with Move

Purpose

To demonstrate the steps to perform characteristic derivation with Move

System Data

System:Client:

User ID:

Password:


1. We have set up an example for “Move”. Show the custom step: Ship-to party


Characteristic values ! Characteristic Derivation: Display.

Customizing Monitor:





IMG ! Controlling ! Profitability Analysis ! Tools ! Analysis !

Check Customizing Settings ! Analyze Derivation ! Characteristic

Derivation ! Search for a Regional Manager via: Edit ! Find or scroll down the list.





57 Exercise 4: Derivation


Exercise Objectives


• 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.

Product groups are to be categorized into strategic business units for reporting.

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.

Note: The term characteristic value refers to an actual individual quantity

defined for a particular characteristic. All data transferred to CO-PA

is checked against the valid characteristic values, which are stored in

check tables. These check tables can either already exist in the original

component of the characteristic or can be maintained manually in

the Profitability Analysis. The characteristic derivation describes the

determining of characteristic values for every business transaction that is

relevant for Profitability Analysis.

Task 1:

1. In the CO-PA application menu, display the check tables for each of the

following characteristics, 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. The first screen only shows user-defined derivation steps. You can

expand the display to view all derivation steps, including predefined derivation

steps.

1. Why can some derivation steps be modified and others cannot?






2. Display the derivation rule for the Strategic Business Unit characteristic.

What are the source fields?

In which application do the source fields originate?

3. Strategic Business Unit is a user-defined field in CO-PA.

Rule values have been defined that determine the valid characteristic value

combinations used to derive a new value, the strategic business unit. What is

the rule used to determine the CHEMFOOD strategic business unit?

4. Display the table lookup for the Customer Classification from Customer

characteristic. 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, under Master Data!

Define Characteristic Derivation:

1. Display the MOVE step for the Ship-to Party characteristic.

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 is the attribute for this

derivation step?

What is the purpose of this particular step?






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. As you can see, some of the fields have remained blank. Use the

derivation analysis to view the various derivation steps.

Posting Date: Today’s date

Record Type: F

Point of valuation: 01

Legal view: X

Customer: T-CO05A##

Product: P-100

Plant: 1000

Sales Org.: 1000

Distribution Channel: 10

Company Code: 1000

1. The order reason field is blank. Why?

2. How did the system determine the “Customer Group” field?





Solution 4: Derivation

Task 1:

1. In the CO-PA application menu, display the check tables for each of the

following characteristics, and find two valid values for each characteristic:

Sales District:


a) In the CO-PA application menu, 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: District Name

000001 Northern region

000002 Southern region

000003 Western region

000004 Eastern region


Use the same menu path as above, but select Strategic Business Unit

under user-defined characteristics.

Strat.Business Unit Name:

CHEMAGRA Agricultural Chemicals

CHEMCHEM Chemicals

CHEMFOOD Food chemicalsCOMPINDU Industrial computers






Task 2:

Display the derivation strategy in the Customizing settings of the Profitability

Analysis. The first screen only shows user-defined derivation steps. You can

expand the display to view all derivation steps, including predefined derivation

steps.

1. Why can some derivation steps be modified and others cannot?

a) Display the derivation strategy table in the Customizing settings of

the Profitability Analysis. The first screen only shows user-defined

derivation steps. You can expand the display to view all derivation

steps, including predefined derivation steps.

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, for example, the derivation of

the company code from the sales organization.

2. Display the derivation rule for the Strategic Business Unit characteristic.

What are the source fields?


a) Display the derivation rule for the Strategic Business Unit (SBU)

characteristic. What are the source fields?

Select the derivation rule Prod.Cat. + Industry! SBU. Select Choose.

WWPRC Product Category BRSCH Industry Key


CO-PA

3. Strategic Business Unit is a user-defined field in CO-PA.






Rule values have been defined that determine the valid characteristic value

combinations used to derive a new value, the strategic business unit. What is


a) Strategic Business Unit is a user-defined field in CO-PA.

Rule values have been defined that determine the valid characteristic

value combinations used to derive the strategic business unit. What is


Select the derivation rule Prod.Cat. + Industry ! SBU. Click

Maintain Rule Values.

Product category Industry key

SBU

CHEM FOOD

= CHEMFOOD

4. Display the table lookup for the Customer Classification from Customer



a) Display the table lookup for the Customer Classification from Customer


Select Table Lookup for customer classification from Customer and

then select : KNA1


This field is populated from the customer master general data

table. In this case, the Profitability Analysis derives the customer

classification directly from this table. That is why no special rules

(check tables) are required in the Profitability Analysis.

Task 3:

In the Customizing settings for Profitability Analysis, under Master Data!

Define Characteristic Derivation:

1. Display the MOVE step for the Ship-to Party characteristic.

What are the source and target fields?


derivation rule only under certain conditions. What is the attribute for this

derivation step?







a) In the Customizing settings for Profitability Analysis, under Master

Data ! Define Characteristic Derivation:

Display the MOVE step for the Ship-to Party characteristic. What

are the source and target fields?

To display, click ALL derivation steps: View ! Display All Steps

Select the “move” step for Ship-to Party, and select “Choose”.

Source field: ! CO-PA ! KNDNR ! Choose Customer.

Target field: ! CO-PA ! KUNWE ! Ship-to party


derivation rule only under certain conditions. What is the attributefor this derivation step?

Select the Condition tab. This derivation step is only carried out if

the Ship-to field is blank.


In this case, the Ship-to field is filled with the value in the Customer

field.

Task 4:

To test the derivation strategy, enter a line item for your sample customer andthe product P-100 using the transaction Simulate Evaluation. Select Derivation

to execute. As you can see, some of the fields have remained blank. Use the

derivation analysis to view the various derivation steps.


Record Type: F


Legal view: X

Customer: T-CO05A##

Product: P-100

Plant: 1000

Sales Org.: 1000


Company Code: 1000

1. The order reason field is blank. Why?






a) To test the derivation strategy, enter a line item for your sample

customer and the product P-100 directly in the costing-based

Profitability Analysis. Select Derivation to execute. As you can see,some of the fields have remained blank. Use the derivation analysis to

view the various derivation steps.

The order reason field is blank. Why?

IMG ! Controlling ! Profitability Analysis ! Tools ! Analysis

! Valuation Simulation.

Record Type: F

Posting Date: Today


Choose Continue.

Customer: T-CO05A##

Product: P-100

Company Code: 1000

Plant: 1000

Sales Org.: 1000


Select Derivation, then Extras ! Derivation Analysis. Select values

before/after, order reason is empty

Save the derivation step in the derivation analysis. The Customer

Order Reason field is empty, because the source field Customer

Order Number (initial) is empty. That means that the order reason is

derived from the Sales Order Document field. This is not a sales order

document, but a simulated derivation analysis. That is why the Order

Reason field cannot be created or derived from the simulation.

The derivation of the ORDER REASON field can be reproduced

in Customizing under the derivation rules. IMG! Controlling !

Profitability Analysis! Master Data! Characteristic Values!

Define Characteristic Derivation: Display All Steps.

The order reason is derived per table look-up from the sales document.






2. 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.

The source fields for this derivation step are Customer, Sales

Organization, Distribution Channel, and Division.

The system has derived the customer group from the customer master

record





Lesson Summary

You should now be able to:• Explain the derivation strategy





TFIN22_2 Lesson: Valuation

Lesson:

67

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





Explain that with the valuation function, you can supplement the information

provided directly by a transaction. Valuation can be performed both when

updating actual values and within planning. It is used in costing-based profitability

analysis only because account-based profitability analysis is reconciled with the

Financial Accounting and does not use estimated values.

There are various valuation techniques within CO-PA, such as valuation with

conditions and costing sheets, valuation using material cost estimates, and

valuation using user-defined valuation routines or user exits.

The condition technique can be used to estimate the values that are needed

for analysis in Profitability Analysis but which are not known at the time the

document is posted. As a result, to evaluate a sales transaction, any commissions,

cash discounts, discounts, or freight costs, which are not known at the time of

invoicing, can be estimated.

The product cost estimate technique is used to determine the manufacturing

costs when data is updated to Profitability Analysis. This technique can be used

to supplement the revenues and sales deductions transferred from the invoice in

the case of a sales transaction with the fixed and variable manufacturing cost

components belonging to the product.

User-defined valuation routines are supported to allow you to determine thevalues that cannot be determined using the other two techniques. This allows for

the implementation of user-defined valuation logic, should this be required.

Valuation Using Material Cost Estimates

Valuation using material cost estimates is primarily used to determine the

manufacturing costs when billing documents are transferred to Profitability

Analysis. By valuating transactions using cost estimates from Product Cost

Planning, you can supplement the revenues and sales deductions transferred from

the billing document with the fixed and variable manufacturing cost components





belonging to the product. Transactions can be valuated with up to six different cost

estimates in parallel. This option is available only for the costing key assigned to

“other” characteristics.

The cost component split can be transferred in either the company code currency

or the Management Accounting area currency. The manufacturing costs can be

transferred to Profitability Analysis both according to the cost component split

and the primary cost component split. Based on the customizing settings made for

Product Cost Planning, the cost component split and the primary cost component

split are stored either in the main cost component split or in the auxiliary cost

component split of a cost estimate.

The relevant cost estimates are assigned either on the basis of the material or

material type or on the basis of any other characteristics in an operating concern.

Either using the plant of the CO-PA line item or a special valuation plant stored in

customizing can access the costing data. To set up valuation using material cost

estimates, work through the steps described in Customizing. There, you will also

find further information on this subject.

Valuation Using a Costing Sheet

The condition technique in the case of CO-PA is used to determine estimated

values. Some technical terms need to be explained to familiarize participants with

this technique. Explain that the condition technique is widely used throughout

SAP system. Although participants do not need to become experts on conditions,

they need to have at minimum a basic understanding.

The background for the condition technique is explained extensively in the unit,

Actual Data, and in the online documentation.

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,


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 invoicingtransactions, 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.

Valuation Concept

Valuation: Overview

Emphasize that valuation is relevant only for costing-based CO-PA. In addition,

explain that many value fields will be populated through the Sales Order

Management and Management Accounting interfaces. As a result, valuation will

populate value fields if the data was not transferred from any other source.

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.

Figure 26: Valuation: Overview

Valuation can be used with either actual or planning data. 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. This

enables the automatic calculation of projected revenue and cost-of-sales figures.

Valuation can be configured to function either in real-time, which means at the

time data is first posted to CO-PA, or periodically, which means at some later point

when manually triggered. The periodic evaluation provides advantages when

many postings are executed, thereby causing a higher system load for real-time

evaluation. By putting off the evaluation to a later date, you ease the system.

Similarly, it gives the option of re-evaluating the posted data.





Valuation Strategy and Techniques

Valuation Using Costing Sheets: Customizing

Valuation Using a Costing Sheet

Condition Types – Condition Records

Begin by explaining the terms: Condition type, condition records, access

sequence, and base versus calculated values.

Use the example of the condition type, Outgoing Freight (OUTF). The condition

definition is a surcharge or reduction, meaning the value to be calculated will

either be positive or negative so in the case of freight, it is a freight cost or a

freight charge. The Detail button reveals the plus/minus sign logic, which controls

whether the condition results in an amount that is negative or positive. A negativeamount is a discount and a positive amount is a surcharge. This logic also controls

whenever both positive and negative amounts are possible.

The surcharge or reduction overhead type determines whether a percentage of a

certain value should be calculated or an absolute value multiplied by a quantity

field should be calculated. The issue to be decided is whether the freight should be

10% of COGS or $10 for each pound shipped.

Scales are basically look-up tables for the percentage or quantity-based values.

Examples are weight = 10 pounds, freight rate = 5 USD, weight = 100 pounds and

freight = 8 USD. Scales are not necessary, even when you can only take into

account a flat rate or a percentage.

The Access Sequence is directly related to the condition record. It defines at

which organizational level a particular value is calculated. For example, if the

freight rate in plant 1000, access sequence “Plant” is 10 USD and in Plant 2000

12 $. The condition record itself contains the value.

The costing sheet combines calculated conditions and so called Base Conditions.

Base Conditions are used in calculations. If you therefore want to calculate the

freight based on the COGS, you have to create these as base conditions. The value

for the base condition originates in an application other than CO-PA.

Draw a map:

Condition Type Value Field Costing

Sheet

From/To Source

OUTF =

Outgoing Freight

VV280 Step 60 30 N/A

COGS = Cost of

Goods Sold

VV140 Step 30 SDInterface





Figure 27: Valuation Strategy

The valuation strategy is central to valuation configuration. A valuation strategy

may contain references to multiple valuation techniques, such as costing sheets,

user exits, and product costing information, which are to be applied to a given

COPA-relevant transaction.

You need to decide to what record types, F, A, B, C, and 0-9, and at what points,

known as points of valuation, each valuation strategy should apply. Similarly, if

a strategy is to be applied to planning data, the relevant planning version must

be specified.

The various valuation techniques that populate the value fields in different ways

are:

• With costing sheets, condition types are mapped to value fields.

• From Product Costing, cost components are mapped to value fields.

• Value fields are updated directly through user exits.





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. The results of a product cost estimate can be viewed

in different ways, such as by item, cost element, or cost component. Through

valuation, the product cost estimate information for CO-PC can be transferred into

CO-PA, through cost component values. This function can be used to import

extensive cost-of-sales information into CO-PA for flexible margin reporting.

In configuration, cost components are mapped to value fields. You can map each

component to its own value field or multiple components to a single value field.

You can also map the fixed and variable portions of a component to separate value

fields. 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.





Figure 29: Valuation using Product Costing: Customizing (1)

Using a costing key, you can determine which cost estimate, meaning which

costing variant should be used with which validity date for valuation. By

assigning a costing key, you control which cost estimate, standard, modified

standard, or current cost estimate should be used in which case, depending on the

material, material type, or any other combination of characteristics.

If an entry exists for the material, this has priority over the entry for the material

type. The entry for the material type has priority over any entries defined for

other characteristics.

In the assignment lines, you determine which values of the cost component

structure are transferred to which value fields in the operating concern.






When you define a costing key, you can enter either a costing date or a period or

a value for the period indicator. Using the plan period indicator, you specify the

date for which the system should look for a valid material cost estimate in the

database, for Product Cost Controlling.

The following options are available for the plan period indicator:

0 for the future standard cost estimate.

1 for the current standard cost estimate.

2 for the past standard cost estimate.

3 for the standard cost estimate valid on the posting date.

4 for the standard cost estimate valid on the date of goods issue.

If you enter 0, 1, or 2 for the plan period indicator, the system reads the standard

cost estimate valid on the first day of the period. This refers to the future, current,

or past period for which the standard cost estimate is valid according to theentries in the valuation segment of the relevant material master record. If

you enter 3 or 4 for the plan period indicator, the system reads the standard cost

estimate valid on the given posting date or date of goods issue, regardless of

what is stored in the material master.






In addition to assigning the costing keys to products or material types, you can

assign the costing keys to any combination of characteristics. This allows greater

flexibility and control in using costing keys.

You can use up to three characteristics as source fields”, such as plant, product,

and group. In this way, you do not need to assign costing keys to one specificmaterial or material type. You can also assign costing keys to a combination

of different characteristics. This makes it possible to access the cost of goods

manufactured from different plants, which is useful if you want to use the costs

from the production plant when the product is sold by different sales plants.





Figure 32: Valuation Using Costing Sheets

Costing sheets are a vehicle through which special values can be accessed or

calculated. They are the central piece to the condition technique, a method used

throughout SAP for performing calculations.

Costing sheets consist of a sequence of user-defined condition types, each of

which accesses a value or performs specific calculations, as dictated by thedefinitions of the condition types. Each condition type is mapped to a value field

in the operating concern.





Figure 33: Condition Types - Condition Records

A condition type represents one step in a costing sheet. 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, reductions, or surcharges for a condition type. For example, it can specify

that a sales deduction should be dependent on the quantity sold or a value scale.

Scale basis: The scale basis determines how the system interprets the value or

quantity scale for a condition. Scales can be dependent on a quantity or a currency

amount.





Figure 34: Valuation Using Costing Sheet: Customizing

Base condition types form the basis for calculations. They signify the value fields

that have already been populated through other means. These condition types

must have on their master record, a condition category of “K”, a calculation rule

of “B”, and a condition class of “B”.

Calculation condition types perform calculations on the lines in the costing sheets

that represent subtotals of amounts, such as base amounts. These condition types

actually populate the value fields with values. Notice that their definitions can

vary.

A calculation condition type is assigned an access sequence here with

corresponding condition records. The condition records contains deductions or

additions or absolute values that refer to certain combinations of characteristic

values.

For complete information about how to use the condition technique, refer to

pricing documentation or take a class on pricing or the condition technique.

Demonstration: Valuation Using a Product Cost

EstimatePurpose

To demonstrate the steps to perform valuation using a product cost estimate

System Data

System:

Client:

User ID:





Password:


1. Begin your demonstration by entering another line item. This time focus onthe value fields and point out that certain value fields, such as Material Input,

were populated although there was no billing document.


! Create Line Item


Record type: F

Customer: 1000 1000

Sales organization: 1000 1000

Distribution channel: 10 10

Company code:1000 1000

Product: P-100

Plant:


Record type: F

Execute the valuation function and take a look at the value field, Material

Input.

As of release 4.6, you can analyze how the system populated a value field.

Select:

Extras ! Analyze valuation

2. Open up another session and display the material cost estimate for the

material, P-100:

Costing Variant: PPC1

Plant: 1000 1000

Costing version: 1 1

Valid on: Today

3. Call up the cost Component view for the currently released material cost

estimate.

Accounting ! Controlling ! Product Cost Controlling ! Product Cost

Planning ! Material Costing ! Cost Estimate with Quantity Structure

! Display





To get to the cost component view, you may have to click the “Cost comp”

icon next to the magnifying glass. It will then display in the lower section

of the screen. Explain cost components as high level breakdown of productcost information.

4. In your second session, review the line item in Profitability Analysis:

If you have not done so, execute the valuation function and take a look at the

value field, Material Input.

5. Based on the valuation analysis, show the individual customizing steps,

which lead to this result. You know that the costing key, I10, was used to

populate value field, “Material Input”. Depending on the expertise and

interest in the class, you can spend more or less time on the following

demonstration. This is not an easy topic so be prepared to reiterate the main

points.

Assign costing key to product ! Costing key, I10.

Explain that with this step, you define what type of cost estimate will be

transferred (costing variant) and which date the system will look at. Standard

cost estimates allow the user to define whether to transfer current, future,

or past, and the date control here defines whether the cost estimate should

be brought over as of goods issue date, posting date, or the date on the

material master. Here, you also define which cost component split to use.

Additive costs refer to the costs not included in the quantity structure and

added manually to the cost estimate.

Define access to material costing (costing key I10). This can be doneat the product level, the material type level, or on the level of any other

characteristic, such as Plant . When showing the related tables, explain the

concept of “Point of Valuation” (when) and record type (for what type of

transaction).

Assign value fields (cost component structure, 01). The confusion here is

– where does the cost component structure come from. It is configured in

the Personal Computer and is basically a roll-up of cost elements into higher

level categories – cost components.

IMG ! Controlling ! Profitability Analysis ! Master Data ! Valuation

!

Product Costing ...6. Mention the possibility of assigning the costing key to any other

characteristics. An example has been set up for the material type and material

type/plant level. The advantage of using this table is that you not only decide

for which characteristics product cost information should be pulled but also

determine under which circumstances it should be pulled, such as only if the

plant is 1000. In addition, effective dates are not required in this table.





Demonstration: Valuation Using a Costing Sheet

Purpose

To demonstrate the steps to perform valuation using a costing sheet

System Data

System:

Client:

User ID:

Password:


1. Create a line item in Profitability Analysis:


Record type: F

Customer:

Sales organization:


Company code:

Product: P-100

Plant: 1000 1000

Revenue:

Customer discount:

Price reduction:

Cost of goods sold:

Execute the condition analysis function and display the value field, Outgoing

Freight”.


! Create Line Item

Extras ! Analyze valuation

2. Next, show the individual customizing steps that lead to this result and

explain the terms in their context:

Condition types and Costing sheet i.e. ACT001

Access sequences i.e. Z200

Condition tables i.e. 502





Value field assignment


! Define Conditions and Costing Sheets ...

3. When you get to the condition types, refer to the IMG documentation. Here,

all the options relating to the condition types in CO-PA are described and

examples are given.

Demonstration: Valuation Strategy

Purpose

To demonstrate the valuation strategy

System Data

System:

Client:

User ID:

Password:


1. Show the valuation strategy, 001, and explain the idea behind the individual

steps. Make sure to point out that without a valuation strategy, none of

the above configuration will take effect. Explain the concepts of periodic

revaluation and valuation in planning. Periodic valuation enables users to

select the actual data that has already been posted and revaluate the data

using a valuation strategy specially defined for the point of valuation,

02 – periodic revaluation – actual. With periodic valuation you can use

the updated costs or the actual manufacturing costs to revaluate the line

items posted with standard manufacturing costs at the start of the period.

The difference between the original values of the line item and the newly

determined values is posted to CO-PA as a delta line item.

If periodic valuation is carried out more than one time, a new delta line item

is posted every time a difference is determined. When periodic valuation

has taken place, the Information System can be used to display the updated

values.


! Define and Assign Valuation Strategy

Display the assignment of the valuation strategy, 001, and explain the point

of valuation and the record type.






! Define and Assign Valuation Strategy

Demonstration: Periodic Valuation

Purpose

To demonstrate the steps to perform periodic valuation

System Data

System:

Client:User ID:

Password:


1. Show the periodic valuation function.


! Periodic Adjustments ! Periodic Valuation

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. You can find inconsistencies by looking at the

individual value fields. The report shows you what value flows the value field isinvolved in and what condition types or cost elements it gets its values from. In

all, you can analyze the following actual value flows:

• Transfer of billing documents and incoming sales orders from Sales Order

Management.

• Direct postings from Financial Accounting and operations.

• Order and project settlement from Overhead Cost Orders (CO-OPA), and

the Project System Cost center assessment from Cost Center Accounting

(CO-OM-CCA).

• External data transfer.

Figure 36: Analysis of Valuation

Valuation analysis is available to you when entering of plan or actual data. Notice

that you have the possibility of checking valuation by simulating the entry of single line items. You can specify different valuation points in time and in this

way check different valuation strategies.

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. For further options for the simulation of

billing document transfers, refer to the section, Tools.





Demonstration: Customizing Monitor

Purpose

To demonstrate the steps to use a Customizing Monitor

System Data

System:

Client:

User ID:

Password:


1. IMG ! Controlling ! Profitability Analysis ! Tools ! Analysis !Customizing Monitor ! Valuation Analysis


Record type: Billing document

Execute

Expand the hierarchy in which the first level is the overall valuation strategy

used for this point of valuation and record type, the next level are the

valuation techniques within the valuation strategy, and the following level

shows how a value field will be populated.





81 Exercise 5: Valuation


Exercise Objectives


• Create a link to material costing, to obtain extensive information about the

key cost of manufacturing components, such as material and production labor

• Use costing sheets to determine specific values, such as the cost of packaging

materials

Business ExampleYour controlling manager wants to ensure that sales and product managers

understand the key cost components for the manufactured products.

You want to determine the estimated costs for packing the finished products. This

is normally 1.50 for each unit.

Note: If you implement material costing in your mySAP ERP system,

you can transfer extensive information to CO-PA to calculate and analyze

the estimated cost of sales and different contribution margins, such as

the margin after fixed costs, and the margin after all costs. Valuation

signifies the concept of supplementing the performance information

provided directly by a transaction and allows access to in-depth materialcosting information.

Task 1:

In the Customizing settings for CO-PA, display the entries configured under

Costing Keys for Valuation.

What type of cost estimate is assigned to the costing key, I10?

For which period does the system access the material cost estimate?

Note: Costing keys can be assigned to an individual product, a material

type, or any characteristic, such as a plant. This step defines the level atwhich the system accesses the material costing information. You can

assign a valuation strategy to determine the transactions valuated. To

allocate the estimated production costs, such as materials and labor, to

CO-PA value fields, you can assign the cost components of a material

cost estimate to value fields.

1. Display the costing key assignment for product P-100. Which is the assigned

costing key?






At which point of valuation will the system use the costing key I10 for the

product P-100?

For which costing type does the system use the costing key I10 for the

product P-100?

2. Display the currently released (status FR) standard cost estimate for the

product P-100 in the Product Cost Planning component. Use the costing

variant PPC1. Notice that the costing lot size for the product is 100.

What is the total raw material cost? What is the cost component number

and description?

3. Display the value field assignments for the cost component structure 01.

To which value field is the “raw material” cost component assigned?

Task 2:

To test your valuation strategy, enter a line item for your customer directly in

CO-PA under Profitability Analysis! Actual Postings! Create Line Item. Fill

in the header data as required, and enter product P-100 in plant 1000 in the line

item entry screen. After carrying out derivation, enter 100 pieces in the Invoiced

Quantity field with a Revenue of $100,000. Carry out valuation.


Record Type: F

Point of Valuation 01

Customer: T-CO05A##

Sales Org.: 1000


Company Code: 1000

Product: P-100

Plant: 1000

Invoiced Quantity 100Revenue: 100,000

1. What is the value for Material Input ? Why?

2. Next, execute a valuation analysis: How was the “Material Overhead Costs”

field filled?

Save the line item and write down the document number.






Carry out a valuation analysis:

Extras ! Valuation Analysis

How was the Material Overhead Costs field populated?

Select the “Result of Valuation” tab.

Sort according to the text. Step 10 for Valuation View I10.

Select the “Display Value Field Assignments” tab.

With the costing key I10 that is connected to the costing variant PPC1,

Value field VV250 was connected to cost component 080 in cost component

structure 01.


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 the various cost centers. These costs are not accrued during the month

in FI, but you want to estimate them in CO-PA so that your plant manager can

already estimate the profitability of all plants before the month-end. You can use

valuation to configure the system to calculate the estimated values for packaging

supplies at the time an invoice is billed.

1. Display the costing sheet under Valuation in Customizing. What basis is

used to calculate estimated packaging (OUPA)?2. Display the definition for the condition type OUPA. Which condition type

is used?

3. Which overhead type is used for OUPA?

4. Which rate does the system use to valuate packaging for one piece of the

material P-100 in plant 1000?

Task 4:

1. To verify that the costing sheet has been configured correctly, enter another

line item in the costing-based profitability analysis. Enter your customer andall other relevant information. Enter product P-100. Enter 10 for Invoiced

Quantity, 10,000 for Revenue, and 8,000 in the Cost of Goods Sold field.

Carry out the valuation. What is the value for Dispatch Packaging ?

Task 5:

1. Create a pricing report for the existing condition records.






2. Name your list Z#. For #, use the letter of the alphabet that corresponds

to your group number (no.).

# A B C D E F G H I K L M N O P R S T

No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Name of List: Z#

Title: Pricing report group #

Choose Selected fields.

Select the PLANT field and continue with AND.

Select only table 506 (Access to plant)

Continue with “Continue to List Structure”.

For Positioning, choose: Group Header of Pricing Report.

For Condition Type, choose: Item Level of Pricing Report.

For Text, choose: The key field and the corresponding text are displayed.

Select the “Selection” checkbox, but leave the column for required entries

unselected!

Save your pricing report.

When saving, create a Workbench request with the name AC605GR## after

the system prompts you to do so.

Execute your pricing report.

Task 6:

You can use the Customizing Monitor to analyze in one step all the configuration

settings you have made. It also allows you to evaluate the existing settings, the

use of characteristics, and value fields.

1. Analyze the Customizing settings for the planning data that was entered

manually.

If you have created a sales plan for the billing data manually, how does the

system valuate your data, assuming you are using the version 100?






Field Name or Data Type Values


Plan Version 100

Record Type Billing

2. Now try to establish where the WWSBU characteristic is used in your client.

Which origin and target fields are assigned in this step? Use the Customizing

Monitor to determine this.

Reports:





Solution 5: Valuation

Task 1:

In the Customizing settings for CO-PA, display the entries configured under

Costing Keys for Valuation.

What type of cost estimate is assigned to the costing key, I10?


Note: Costing keys can be assigned to an individual product, a material

type, or any characteristic, such as a plant. This step defines the level at

which the system accesses the material costing information. You can

assign a valuation strategy to determine the transactions valuated. To

allocate the estimated production costs, such as materials and labor, to

CO-PA value fields, you can assign the cost components of a material

cost estimate to value fields.

1. Display the costing key assignment for product P-100. Which is the assigned

costing key?

At which point of valuation will the system use the costing key I10 for the

product P-100?






For which costing type does the system use the costing key I10 for the

product P-100?

a) In the Customizing settings for CO-PA, display the entries configured

under Costing Keys for Valuation.

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 I10?

Select I10 and Details:

Costing variant PPC1 (standard cost estimate)


Released standard cost estimate matching goods issue date.

Note: Costing keys can be assigned to an individual product,

a material type, or any characteristic, such as a plant. This

step defines the level at which the system accesses the

product-costing information. You can assign a valuation

strategy to determine the transactions valuated. To allocate the

estimated production costs, such as materials and labor, to

CO-PA value fields, you can assign the cost components of a

material cost estimate to value.

Display the costing key assignment for product P-100.

Which is the assigned costing key?



Assign Costing Key to Products

Product P-100 is assigned to the costing type I10.

At which point of valuation does the system use the costing key I10 for

the product P-100?

For real-time actual data transfer. Point of valuation = 1

For which record type does the system use the costing key I10 for

the product P-100?

For the record type A (incoming sales orders) and F (billed sales

orders)

2. Display the currently released (status FR) standard cost estimate for the

product P-100 in the Product Cost Planning component. Use the costing

variant PPC1. Notice that the costing lot size for the product is 100.






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 P-100 in the Product Cost Planning component.

Accounting ! Controlling ! Product Cost Controlling ! Product

Cost Planning ! Material Costing ! Cost Estimate with Quantity

Structure ! Display


Material P-100

Plant 1000

Costing variant PPC1Costing version 1

Date Default value

Click Find Cost Estimates (binoculars icon) and make sure the

costing status is set to FR. Choose Execute.

After you have accessed the product cost estimate, click the Cost

Component icon on the toolbar. Click the Cost Comps icon (bottom

right).

What is the total raw material cost? What is the cost component

number and description?

3. Display the value field assignments for the cost component structure 01.

To which value field is the “raw material” cost component assigned?

a) Next, display the value field assignments for cost component structure

01. To which value field is the “raw material” cost component assigned?



Assign Value Fields

Use the cost component layout 01.

Cost component 10 (raw materials) is assigned to value field VV150

(material input).






Task 2:

To test your valuation strategy, enter a line item for your customer directly in

CO-PA under Profitability Analysis! Actual Postings! Create Line Item. Fill

in the header data as required, and enter product P-100 in plant 1000 in the line

item entry screen. After carrying out derivation, enter 100 pieces in the Invoiced

Quantity field with a Revenue of $100,000. Carry out valuation.


Record Type: F


Customer: T-CO05A##

Sales Org.: 1000


Company Code: 1000

Product: P-100

Plant: 1000

Invoiced Quantity 100

Revenue: 100,000

1. What is the value for Material Input ? Why?

a) To test your valuation strategy, enter a valuation simulation for your

customer directly in CO-PA. Fill in the header data as required and

enter the product P-100 in plant 1000 in the entry screen. After carrying

out derivation, enter 100 pieces in the “Invoiced Quantity” field with a

revenue of 100,000. Carry out valuation.

Accounting ! Controlling ! Profitability Analysis ! Tools !

Analyze Value Flows ! Simulate Valuation.


Posting Date Today’s date

Record Type F

Select Continue: Tab “Characteristics”







Customer T-CO05A##

Product P-100

Distribution Channel 10

Plant 1000

Sales Organization 1000

Company Code 1000

Select the Value Fields tab.


Invoiced Quantity 100

Revenue 100000

Select the Origin Data tab.


Goods Issue Date Today’s date

Select Valuation

What is the value for Material Input ? Why?

Compare this with the product costing. The standard cost estimate

for product P-100 in online valuation was assigned to CO-PA via

the costing key. In addition, the cost component 01 is assigned to

the Material Input value field.

2. Next, execute a valuation analysis: How was the “Material Overhead Costs”

field filled?


Carry out a valuation analysis:

Extras ! Valuation Analysis

How was the Material Overhead Costs field populated?

Select the “Result of Valuation” tab.

Sort according to the text. Step 10 for Valuation View I10.

Select the “Display Value Field Assignments” tab.






With the costing key I10 that is connected to the costing variant PPC1,

Value field VV250 was connected to cost component 080 in cost component

structure 01.


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 the various cost centers. These costs are not accrued during the month

in FI, but you want to estimate them in CO-PA so that your plant manager can

already estimate the profitability of all plants before the month-end. You can use

valuation to configure the system to calculate the estimated values for packagingsupplies at the time an invoice is billed.

1. Display the costing sheet under Valuation in Customizing. 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 this period in FI, but you want to estimate

them in CO-PA so that your plant manager can estimate the profitability

of the plants before the month-end. You can use valuation to configure

the system to calculate the estimated values for packaging suppliesat the time an invoice is billed.

Display the costing sheet under the “Valuation” settings in the IMG.

What basis is used to calculate outgoing packaging (OUPA)?


Valuation ! Set Up Conditions and Costing Sheets ! Create

Condition Types and Costing Sheets.

From the Surcharge/reduction list, select the condition type OUPA

(double click).

The overhead rate is calculated on a quantity basis with the

calculation type..

Select ! Records for Cond. Type. The quantity-related overhead

rate is 3.00 per piece.

Hint: The quantity field assigned to the valuation strategy

is used automatically.






2. Display the definition for the condition type OUPA. Which condition type

is used?

a) Display the definition for the condition type OUPA. Which condition

type is used?


Valuation ! Set Up Conditions and Costing Sheets ! Create

Condition Types and Costing Sheets. Select OUPA from the list of

“costing sheets” in the table on the upper left of the screen.

The condition type is Surcharge/reduction.

3. Which overhead type is used for OUPA?

a) Which overhead type is used for OUPA?

This condition type is quantity-based.

4. Which rate does the system use to valuate packaging for one piece of the

material P-100 in plant 1000?

a) Which rate does the system use to valuate packaging for one piece of

the material P-100 in plant 1000?

Select CondRcrds-Access and display the condition record for plant

1000.

Execute ! Choose Plant 1000 ! Display.

Using this condition record, the packaging costs 3 per unit.

Task 4:

1. To verify that the costing sheet has been configured correctly, enter another

line item in the costing-based profitability analysis. Enter your customer and

all other relevant information. Enter product P-100. Enter 10 for Invoiced

Quantity, 10,000 for Revenue, and 8,000 in the Cost of Goods Sold field.

Carry out the valuation. What is the value for Dispatch Packaging ?

a) To verify that the costing sheet has been defined correctly, enter

another line item in the costing-based profitability analysis. Enter your

customer and all other relevant information. Enter product P-100.

Enter 10 for the Invoiced Quantity, 10,000 for Revenue, and 8,000 in

the Cost of Goods Sold field. Carry out the valuation. What is the

value for Dispatch Packaging ?

What value appears in the Dispatch Packaging field? A rate of 30

was calculated, based on the costing sheet.






Task 5:

1. Create a pricing report for the existing condition records.

a) SAP Menu! Accounting ! Controlling ! Profitability Analysis !

Master Data! Condition Lists

2. Name your list Z#. For #, use the letter of the alphabet that corresponds

to your group number (no.).

# A B C D E F G H I K L M N O P R S T

No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Name of List: Z#

Title: Pricing report group #

Choose Selected fields.

Select the PLANT field and continue with AND.

Select only table 506 (Access to plant)

Continue with “Continue to List Structure”.

For Positioning, choose: Group Header of Pricing Report.

For Condition Type, choose: Item Level of Pricing Report.

For Text, choose: The key field and the corresponding text are displayed.

Select the “Selection” checkbox, but leave the column for required entries

unselected!

Save your pricing report.

When saving, create a Workbench request with the name AC605GR## after

the system prompts you to do so.






Execute your pricing report.

a) To execute the pricing report, choose Profitability Analysis! Master

Data! Condition Lists! Execute.

Choose your pricing report Z#.

Choose Execute.

Select the pricing report for plant 1000 in the validity range today to

the maximum date.

The system display a list of the conditions for outgoing packaging

and outgoing freight.

You can display the details of the conditions (spectacles icon).

Task 6:

You can use the Customizing Monitor to analyze in one step all the configuration

settings you have made. It also allows you to evaluate the existing settings, the

use of characteristics, and value fields.

1. Analyze the Customizing settings for the planning data that was entered

manually.

If you have created a sales plan for the billing data manually, how does the

system valuate your data, assuming you are using the version 100?








Plan Version 100

Record Type Billing

a) You can use the Customizing Monitor to analyze in one step all the

configuration settings you have made. It also allows you to evaluate the

existing settings, the use of characteristics, and value fields.

Analyze the Customizing settings for the planning data that was

entered manually.

IMG: Controlling ! Profitability Analysis ! Tools ! Analysis !

Check Customizing Settings

Choose Overview of Valuation:

If you have created a sales plan for the billing data manually, how does

the system valuate your data, assuming you are using the version 100?



Plan Version 100

Record Type Billing Document

Execute.

The system first accesses the costing sheet COPA10, and then the

costing sheet ACT001. It then looks for information about material

cost estimates and finally, it accesses a user exit.

2. Now try to establish where the WWSBU characteristic is used in your client.

Which origin and target fields are assigned in this step? Use the Customizing

Monitor to determine this.






Reports:

a) Now try to establish where the WWSBU characteristic is used in your

client. Which origin and target fields are assigned in this step? Use the

Customizing Monitor to determine this.

IMG: Controlling ! Profitability Analysis ! Tools ! Analysis !

Check Customizing Settings

Choose Where-Used List .


Characteristic WWSBU

Client The current client

Choose Execute and then Information System ! Reports !

Costing-Based

Reporting: IDES-300, IDES-310 – IDES-314

(may vary)





Lesson Summary

You should now be able to:• Understand valuation using the product cost information







Unit Summary














1. supplements automatically mapped characteristic

values. Fill in the blanks to complete the sentence.

2. What all can a valuation strategy contain?

3. supplements the data being passed directly from

transactions into CO-PA with calculated, retrieved, or otherwise accessed

values.


4. What is a derivation strategy?

5. A consists of a number of different

steps, which derive different characteristic values.


6. Characteristic derivation signifies the process to determine the characteristic

values for all CO-PA characteristics.


! True

! False

7. What is a table lookup?





8. The system automatically creates a standard derivation strategy for each

operating concern.


! True

! False

9. What is the Product Costing module used for?

10. The scale basis determines how the system interprets the value or quantity

scale for a condition. These scales can be dependent on a

or a .


11. Identify the actual value flows that can be analyzed using the value field

analysis function.

Choose the correct answer(s).

! A Transfer of billing documents

! B Incoming sales orders from Sales and Distribution

! C Direct postings from Financial Accounting and Materials

Management

! D Actual costs

12. Using a , you can determine which cost estimate

should be used with which validity date for valuation.


13. What do costing sheets consist of?





14. The value field analysis function enables you to analyze all the flows of

actual data to Profitability Analysis.


! True

! False





102Answers

1. Derivation supplements automatically mapped characteristic values.

Answer: Derivation

2. What all can a valuation strategy contain?

Answer: A valuation strategy can contain CO-PA costing sheets, SD pricing

procedures, product costing calls, and user exit calls in a sequence that can

be customized.

3. Valuation supplements the data being passed directly from transactions intoCO-PA with calculated, retrieved, or otherwise accessed values.

Answer: Valuation

4. What is a derivation strategy?

Answer: A derivation strategy is a sequence of steps, where each step uses

one derivation technique to calculate one or more values for one or more

characteristics, respectively.

5. A derivation strategy consists of a number of different steps, which derivedifferent characteristic values.

Answer: derivation strategy

6. Characteristic derivation signifies the process to determine the characteristic


Answer: True

Characteristic derivation signifies the process to determine characteristic


7. 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.





8. The system automatically creates a standard derivation strategy for each

operating concern.

Answer: True

The system automatically creates a standard derivation strategy for each

operating concern. This strategy contains the derivation steps for all the

dependencies that are already known between characteristics. You can then

change this strategy to meet your organization’s requirements.

9. 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.

10. The scale basis determines how the system interprets the value or quantity

scale for a condition. These scales can be dependent on a quantity or a

currency amount.

Answer: quantity, currency amount

11. Identify the actual value flows that can be analyzed using the value field

analysis function.

Answer: A, B, C

The value field analysis function enables you to analyze the actual value

flows, such as transfer of billing documents, incoming sales orders from

Sales and Distribution, direct postings from Financial Accounting and

Materials Management, and external data transfer.

12. Using a costing key, you can determine which cost estimate should be used

with which validity date for valuation.

Answer: costing key

13. What do costing sheets consist of?

Answer: Costing sheets consist of a sequence of user-defined condition

types, each of which accesses a value or performs specific calculations, as

dictated by the definitions of the condition types.





14. The value field analysis function enables you to analyze all the flows of

actual data to Profitability Analysis.

Answer: True

The value field analysis function enables you to analyze all the flows of

actual data to Profitability Analysis. You can find inconsistencies by looking

at individual value fields.




Unit 3105 Actual Data

This unit covers the flow of actual values. Participants should be made aware

of the modules from which Profitability Analysis can be supplied with data.

For costing-based Profitability Analysis in particular, it is important that the participants learn how to maintain the respective interfaces to obtain the

corresponding data. Further, explain the differences between the value flows

from the point of view of costing-based Profitability Analysis and account-based

Profitability Analysis. The selected example processes and the exercises help to

deepen the understanding of the participants.

Unit Overview

This unit explains the flow of actual data. It explains condition types and the

transfer and allocation of costs. In addition, it provides an overview of settlement

orders and discusses direct and automatic posting, variance calculation, andschedule manager.

Unit Objectives


• Explain the flow of actual data in CO-PA

• List the sources of value fields

• Understand the data flow from sales order management to CO-PA

• Outline the concept of a condition type

• Explain the transfer and allocation of costs

• Explain the settlement of orders

Unit Contents

Lesson: Flow of Actual Data...................................................129Demonstration: Steps to set up number assignment .. .. .. .. .. .. .. .. .. 132

Lesson: Integration with Sales Order Management .. .. .. .. .. .. .. .. .. .. .. .. 136

Demonstration: Transferring Data from the SD Module . . . .. .. . . . . .. .142Exercise 6: Sales Order Processing .. .. ... .. .. ... .. ... ... .. .. ... ... .. ... 151


http://-/?-

http://-/?-

http://-/?-

http://-/?-



Unit 3: Actual Data TFIN22_2

Exercise 7: Value Flows between Sales Order Management and

CO-PA........................................................................ 159

Lesson: Transfer of Overhead ................................................164Demonstration: Assessing Cost Center and Process Costs.......... 171Demonstration: Settling Orders... ... .. ... .. .. ... .. .. ... .. ... ... .. .. ... ... 177

Exercise 8: Cost Center Assessment....................................179Exercise 9: Internal Orders................................................185

Exercise 10: Activity Allocation ... ... .. ... .. .. ... .. .. ... .. ... ... .. .. ... ... 193


http://-/?-

http://-/?-



TFIN22_2 Lesson: Flow of Actual Data

Lesson:

106

Flow of Actual Data


Lesson Overview

This lesson should provide you with an understanding of the value flows in the

Profitability Analysis. Furthermore, you will become familiar with the steps

required to prepare the Profitability Analysis for actual value flows.

Lesson Objectives




Value flow: This lesson gives the participants an initial impression of the

actual value flows in Profitability Analysis. Based on the example report for

costing-based or account-based Profitability Analysis, first explain the modules

from which the individual values in a profitability report are derived.

Business Example


application in the SAP system. As a member of the project team, you are supposedto advise on the question of whether to implement CO-PA or EC-PCA in the SAP


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. He asks you to explain

at what point data is posted to CO-PA. Furthermore, he wants to know what order

data are specified in CO-PA.

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, Mr. Cash tries to find out whether the internal orders can be calculated inCO-PA. The logistics department in your company would like to allocate costs

across the two manufacturing plants and the distribution centers in Canada, the

US, and Japan. 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.

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. They have tracked training hours and want to allocate

costs to all the products within the “Blue Bicycle” product group. The product

manager for Taiwan has been informed of price increases for bicycle seats which





are purchased externally, and wonders how that will affect contribution margins.

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.

Value Flows in Actual: Overview and Results

Flow of Actual Values – Overview

Flow of Actual Values – Results

Sources of Value Fields

Explain the steps required to prepare Profitability Analysis for actual value flows.

Demonstrate briefly the number assignment and the function for activating

CO-PA. In addition, explain the concept of the record types and show where (if required) other record types can be configured. A reason may be that data is

manually transferred for planning.

Figure 37: Flows of Actual Values - Overview

Revenues and discounts are transferred to profitability segments in Profitability

Analysis at the point of billing in Sales Order management. 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).

In Overhead Cost Controlling, primary postings are posted to the objects

in Overhead Cost Controlling and allocated to the cost object by the most

source-related means available. 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, this leads to under

absorption or over absorption for the cost centers performing the activity and production variances for the corresponding cost objects, such as production orders.

Production variances: The difference between the actual costs of goods

manufactured and the standard costs determined for cost objects, in this case

production orders, are divided into variance categories and settled to profitability

segments.

Overhead costs remaining on the Overhead Cost Controlling objects are allocated

to the originating profitability segments.

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. The aim is to supply the

sales, marketing, product management, controlling, and corporate planning teams

with decision-support information.

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. As a result, 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. The costs consist of the cost

of goods manufactured, products sold, or services rendered in addition to any

production variances known.





To complete your profitability data, you can also assign overhead costs to

profitability segments in the course of your period-end closing activities.

Demonstration: Steps to set up number assignment

Purpose

To demonstrate the steps to set up the number assignment.

System Data

System:

Client:

User ID:

Password:


1. Show how to set up the number assignment.

IMG ! Controlling ! Profitability Analysis ! Flow of Actual Values !

Initial Steps ! Define Number Range for Actual Postings

Make the participants aware of the fact that this is the number assignment

for costing-based Profitability Analysis and that number assignment for

account-based Profitability Analysis is located under the general Controlling

menu of IMG.

IMG !

Controlling !

General Controlling !

Organization!

Maintain Number Ranges for Controlling Documents

Demonstrate the Activate Profitability Analysis function. Here, you not only

decide to activate PA but also which type of PA to use.

IMG ! Controlling ! Profitability Analysis ! Flow of Actual Values

! Activate Profitability Analysis.

To demonstrate how to define additional record types:

IMG ! Controlling ! Profitability Analysis ! Tools ! Data Transfers

between CO-PA and Other Systems. ! Initial Steps ! Define Record

Types.





Sources of Value Fields

Figure 39: Sources of Value Fields

The value fields in the costing-based CO-PA contain the amounts and quantitiesthat you want to report on. They represent the finest level of detail at which costs

and revenues are broken down. 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. This enables you to calculate the contribution margins that your

organization requires in the Information System.





Facilitated Discussion

Discussion Questions

Use the following questions to engage the participants in the discussion. Feel free

to use your own additional questions.

Outline the flow of actual values in Profitability Analysis.





Lesson Summary

You should now be able to:• Explain the flow of actual data in CO-PA






Lesson:

111

Integration with Sales Order Management


Lesson Overview

In this lesson you will become familiar with the data flow from sales order

management into CO-PA. In addition, the condition type will be explained.

Lesson Objectives




Transferring Data from the Sales Order Management Module

First, explain the classical process flow of a sales order in some detail, including

creating the sales order in the system, the goods issue posting, and billing. Work

on establishing the differences between the two approaches and explain the

possibilities that the costing-based approach offers on account of the valuation

function.

Business Example






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. He asks you

to explain at what point data is posted to CO-PA. He also would like to know

which sales order data is posted in CO-PA.

To fully allocate Research and Development costs which are currently collectedat the product group level using CO internal orders, Mr. Cash inquires whether

internal orders can be settled to CO-PA. To do this, you must explain the flow

of actual values into CO-PA and demonstrate the value flow differences in

costing-based and account-based CO-PA. Furthermore, you must explain the

data flow from sales order management.




TFIN22_2 Lesson: Integration with Sales Order Management

Data Flow from Sales Order Management to CO-PA

Differences in the Data Transfer from Sales Order Management

Sales from Stock: Business Background

Sales from Stock: Transfer Incoming Sales Orders

Sales from Stock: Post delivery

Sales from Stock: Billing

Sales Order Management: Condition Types – Pricing Procedure

Condition Types

Transfer Billing Documents to CO-PA.Reflect on the debits and credits in the various applications and the generic sales

order flow. You also may want to emphasize that you are currently talking only

about the sales from stock and not about make to order or service orders.

Figure 40: Differences in the Data Transfer from Sales Order Management

The interface with the Sales Order Management plays a central role in Profitability

Analysis. In particular, note the differences when data is transferred tocosting-based and account-based Controlling Profitability Analysis (CO-PA).

The main purpose of costing-based CO-PA is to provide sales management with a

tool for analyzing the expected results generated by sales transactions. Its main

feature is the use of value fields and the automatic calculation of anticipated

or accrual data (valuation). The advantage of this method is that the data is

up-to-the-minute.





Account-based CO-PA enables you to reconcile cost and Financial Accounting

at any time at the account level. In contrast to costing-based CO-PA, the system

stores values in cost and revenue elements, which form the common accountstructure for all the Financials applications. All the costs and revenues are posted

to account-based CO-PA simultaneously and using the same valuation approach

as Financial Accounting. The main difference here is that the cost of sales is

transferred at the point of goods issue and not together with the revenues.

Figure 41: Sales from Stock: Business Background

The sales order management application component consists of the functions for

handling quotations, orders, deliveries, and billing. Each of these areas has its own

sales documents, which contain the relevant data for that activity.

The central document in sales order management is the sales order. This order

may be based on the existing inquiries and customer quotations. When you create

an order, the information about the customer and the products or services sold is

stored in the document.

The following information is passed on to all the subsequent documents createdfor this business transaction:

• The delivery is created when the product is shipped to the customer, which

means the goods issue.

• A billing document is created to bill the customer for the goods or services

provided.

This is a central process in the SAP system and the starting point for the data

transfer to Financial Analytics. In some cases, data is transferred to costing-based

and account-based CO-PA at different times using different valuation approaches.





Figure 42: Sales from Stock: Transfer Incoming Sales Orders

You can valuate incoming sales orders as expected revenues and transfer them

from sales order management to costing-based CO-PA to obtain an early analysis

of anticipated profits. As a result, you can create reports that not only reflect the

course of actual profits and contribution margins on the basis of billing documents

but also allow you to analyze these developments on the basis of incoming orders.

To analyze incoming orders, indicate the record type, A, in the report. To analyze

billing data, indicate the record type, F.

The two options available to activate the transfer of incoming orders are:

• Activating on the entry date: Updates the orders under the same period in

which they were created in the system.

• Transfer with the delivery date or the planned settlement date: Displays

the order in CO-PA in the period of the planned delivery or the planned

settlement date and thus represents an billing-related update of the incoming

sales orders.

If you activate Profitability Analysis after you have gone productive with Sales

Order Management, you can post the existing sales orders for the current or past

periods subsequently to CO-PA.

Another function is available to identify the sales orders that are already assigned

to a profitability segment although the order was not yet active and to transfer

these orders to CO-PA.





Figure 43: Sales from Stock: Postings at Delivery

The goods issue is triggered by a delivery in Sales Order Management. This

affects the values in Materials Management and Financial Accounting. Balance

sheet and stock change postings are made in FI when the goods issue is posted.

Note: Note that the posting of the goods issue does not cause any postings

of data into the costing-based CO-PA. The COGS are not transferred into

the CO-PA until transfer of the billing document.





Figure 44: Sales from Stock: Billing

A business transaction is normally concluded in Sales Order Management with

the billing document. The billing data is automatically transferred to Financial

Accounting (FI), where the revenue and receivable postings are made at the same

time.

When a billing document is created, Sales Order Management calculates all salesrevenues, sales deductions, and other values, such as the standard cost using

pricing procedures, and stores these values in condition types. By assigning these

condition types to the value fields in Profitability Analysis, you can have the

system automatically transfer their values to CO-PA.

By valuating this billing data from Sales Order Management using a material

or sales order cost estimate, you can assign further anticipated costs and sales

deductions to this transaction. The billing data is transferred to Profitability

Analysis with the record type, F.

In addition, you can transfer the quantities from the Sales Order Management

quantity fields, such as the sales quantity or gross weight, by assigning them to thecorresponding quantity fields in CO-PA.





Figure 45: Transfer Billing Documents to CO-PA: In Detail

During billing, the system checks whether the data can be updated in FI and in

CO-PA. If one of the two postings cannot be executed due to an error, the other

posting is also not executed. This ensures that data is updated in parallel and the

Profitability Analysis is reconciled with FI. In this way, data is updated in parallel,

thereby reconciling FI and CO-PA. If you choose “Release to Accounting”

(VF02), you can post the invoice in FI and CO-PA after having removed the error.

Demonstration: Transferring Data from the SD Module

Purpose

To demonstrate the steps to transfer data from the sales order management module

System Data

System:

Client:User ID:

Password:


1. Create a sales order:

Order Type: OR

Sales organization:






Division:

Ordering party:

Ship-to party:

Order number: AC605-20

Material: P-100

Order quantity:

Display the conditions in the sales order and refer to the topic, Transferring

incoming sales orders. Explain that a line item in costing-based profitability

analysis is created with the record type, A.

Note: Make sure that the material, P-100, is available in the stock in

the appropriate quantity.

Logistics ! Sales and Distribution ! Sales ! Order ! Create

2. Create the delivery and post the goods issue:

Shipping point:

Selection data: Set to one month later

Order: Current order number

Choose PICKING

Pick quantity:

Choose Post goods issue

Logistics ! Sales and Distribution ! Sales ! Order ! Subsequent

Functions ! Outbound Delivery.

3. Bill the sales order.

Document: Current delivery document number

Choose Save .


Functions ! Billing Document .

4. Display the document flow of the sales order and explain the various

Financial Accounting documents and Management Accounting-documents

from a Profitability Analysis perspective.

Logistics ! Sales and Distribution ! Sales ! Order ! Display

Environment ! Display Document Flow.

5. Explain how the quantities and values from the sales order management

module are mapped to the value fields in Profitability Analysis.





IMG ! Controlling ! Profitability Analysis ! Flows of Actual Values !

Transfer of Billing Documents ! Assign Value Fields.

IMG ! Controlling ! Profitability Analysis ! Flows of Actual Values !

Transfer of Billing Documents ! Assign Quantity Fields.

Note: Draw attention to the fact that a condition type from sales

order management with a value that leads to a posting in the Financial

Accounting module is transferred to costing-based CO-PA only if the

G/L account is defined as a cost element of the categories, 11 or 12.

Condition Types

Sales Order Flow:

Transaction Costing-

based

Account-

based

FI

Create Sales

Order Revenue

Discounts

COS

Record Type

A

Post GoodsIssue

DR COS DR COS

CR Inventory

BillingRevenue

Discounts

COS

Record Type

F CR Revenue

DR Discounts

CR Revenue

DR Discount

DR Customer

AR

Explain again the condition technique, which works similar to the condition

technique explained under the lesson, “Valuation”. Notice that the set-up is alittle bit more elaborate here because you are not posting estimated values but the

values that affect Financial Accounting and Management Accounting. A generic

overview of all the pieces in sales order management Pricing configuration will

have to suffice at this point.

Sales Order Type, i.e. OR! Pricing Procedure, i.e. RV001A! Condition Type(s),

i.e PR00 Price! Value Fields i.e. VV10

Account Key, i.e. ERL





GL Accounts i.e. 800000

Should you be interested in exploring the configuration in more detail, refer to

the SD portion of the implementation guide. You will find most steps under:

Basic Functions

Remind the participants that the product cost information can be retrieved when

transferring sales order management documents. Highlight the differences

between the condition type, VPRS, and other COGS or COGM fields that are

populated through valuation. VPRS can be reconciled to FI –. It is the legal Cost of

Sales, and COGM or COGS may refer to a future or current standard cost estimate.

To familiarize yourself with the concept of customer agreements, there is an

excellent IDES demo script on this topic that you can execute in the training

system if time permits.

Figure 46: Sales order management: Condition Types - Pricing Procedure

A pricing procedure defines the conditions that are permitted for a particular

document and the sequence in which the system takes these conditions into

account during pricing. In addition, you assign the pricing procedures to the

transactions by defining the following dependencies: Customer, controlling area,

profit center, sales organization. In the pricing procedure, you define which

condition types should be taken into account and in which sequence. During

pricing, the SAP System automatically determines the pricing procedure that is

valid for a business transaction and it takes the condition types contained in it

into account one after the other.





Figure 47: Condition Types

A condition type is a representation in the system of some aspect of your daily

pricing activities. For example, you can define a different condition type for each

type of price, discount, or surcharge that occurs in your business transactions.

A condition table defines the combination of fields that identifies an individual

condition record. A condition record is how the system stores the specific

condition data that you enter in the system as condition records. For example,when you enter the price for a product or a special discount for a good customer,

you create individual condition records.

An access sequence is a search strategy that the system uses to find valid data for a

particular condition type. It determines the sequence in which the system searches

for data. The access sequence consists of one or more accesses. The sequence of

the accesses establishes which condition records have priority over others. The

accesses instructs the system where to look first, second, and continue in this way

until it finds a valid condition record. You specify an access sequence for each

condition type for which you create condition records.





Figure 48: Valuation Using Product Costing: Process

Transfer the Material Value at the time of goods issue through the condition,

VPRS.

The condition type VPRS transfers the costs of sales posted at the time of goods

issue into CO-PA. Even when the standard price changes between the time of

goods issue and the billing date, VPRS saves this value and guarantees that thecosts of sales can be reconciled with FI.

Valuation with Product Cost Estimate

Valuation using material cost estimates enables you to determine the cost of goods

manufactured for the product sold whenever a sales document is transferred to

Profitability Analysis. For example, you can find the variable and fixed cost

components for the product sold and compare these to the revenues and sales

deductions transferred from the billing document for the sales transaction. You

can valuate your billing items using the date of goods issue. The customizing is

done in the costing key.





Figure 49: Simulation of the Transfer of Billing Document Data to CO-PA

In the activity, Simulating the Transfer of Documents from Billing, you have

the option of simulating the transfer of billing document data into Profitability

Analysis. Simulation occurs on the basis of the Customizing settings valid at the

time it is carried out. You can view the characteristics and value fields of the line

item to be written to CO-PA.

The function, Valuation analysis, allows you to perform an analysis of the

valuation strategy valid for valuating the billing document data.

You can also restart the simulation of document transfers for the billing documentsthat have already been transferred. Performing this simulation causes no data to be

posted to CO-PA or to other modules.





Figure 50: Reconciliation Report FI / SD and CO-PA

In the sales order management, invoice values are assigned to condition types, in

accounting they are posted to accounts and in the Profitability Analysis they are

positioned in value fields. The CO-PA reconciliation report contains a list of the

corresponding balances for value fields, condition types and P&L accounts. This

list offers you the following fundamental functions:

• Using posted data, you can check and understand, through post-analysis, theassignments in Customizing of the Sales Order Management conditions to

the accounts in FI and to the value fields in CO-PA, as well as the flows of

values resulting from the assignments.

• You can analyze the differences between CO-PA and SD as well as between

CO-PA and FI with a view to locating their origin. This is especially useful

for the reconciliation of FI with the Profitability Analysis. This report can

also be used to check the value flow from order or project settlement. In

the example above, the Delta SD/CO-PA is caused by the fact that accrued

freight is calculated in CO-PA through valuation and has accordingly no

SD counterpart.





Figure 51: Transferring Customer Agreements

During market segment planning and sales and profit planning, you can create

budgets for sales support measures, such as sales promotions and related special

offer discounts. This budget is then used in the Sales Order Management when

conditions, such as special offer discounts, are maintained for the customer

agreement. You can monitor the budgeting process from the assignments within

the customer agreement to the billing document in CO-PA. This is because the

budget assignments are transferred to CO-PA when you maintain the conditions.

You can keep checking the budget assignments by carrying out variance analyses

of the planned and available budget. This allows you to monitor sales promotions

extensively right from the early stages of profitability analysis.

Data can be passed on to CO-PA:

• When the condition record is created as part of the sales agreement

• When the sales order is created

• When the billing document is created

This allows for accurate reporting through all the stages of the process.





125 Exercise 6: Sales Order Processing


Exercise Objectives


• Understand data flow from Sales Order Management to CO-PA

Business Example

Your company is now ready to test the mapping of the SD condition types to the

CO-PA value fields and the effect this has on valuation and derivation.

Task:

Review the condition types mapped to the value fields in your operating concern.

Ensure that both the quantities and values have been mapped to CO-PA so that the

corresponding value fields are populated when a sales order is posted.

Hint: The general sales order processing is executed as follows: Create

a sales order. At this point, the system will determine the price, cost,

discount, and other values based on the SD condition types configured.

After you save the order, the system assigns a sales order number. The next

step is the order delivery process. It includes the tasks to pick the materialsordered, post the goods issue, and create a delivery document for the

actual delivery of the product. Following delivery, a billing document is

created. The order processing from an SD point of view is then completed.

The condition technique used in the Sales and Distribution component

determines the prices and estimated costs (statistical conditions) for the

order.

1. To which value field is the condition type, PR00 (Price), mapped?

2. To which value field is the SD quantity field, FKIMG, mapped?

3. To test your configuration settings, create a standard sales order for your customer as follows:

Standard Order

Order Type: OR

Sales organization: 1000

Distribution channel: 10






Division: 00

Sold-to party: T-CO05A##_ Becker

Ship-to party: T-CO05A##_ Becker

Material: P-100

Qty: 1

4. What is the value for the condition type, PR00, and the condition type,

VPRS?

Save your sales order. Order Number:

5. Check the sales order item you have just generated in CO-PA. Which record

type do you use:

What value is entered in the Revenue field?

6. Edit the delivery now: The delivery process includes the picking process

and goods issue for your sales order.

Note:

- to select a sales order, you must increase the date to “today’s date + 1

month”.

- you navigate to the picking process via! Subsequent functions! Create

transport order . Go into the Create transport order function. Generate the

Transport order item, save it and return to your delivery.

Select Change delivery and click “Post goods issue”

7. Use Subsequent Functions again to create the billing document using the

document number from the previous step.

Billing document number:

8. In CO-PA, display the line item for your billing document. Enter the

customer and the product, P-100, when displaying line items.

What is the total value of revenue:

Why do two lines appear for the line item you have displayed?

From the line item report, how do you drill down to the sales order thatyou originally created?





Solution 6: Sales Order Processing

Task:

Review the condition types mapped to the value fields in your operating concern.

Ensure that both the quantities and values have been mapped to CO-PA so that the

corresponding value fields are populated when a sales order is posted.

Hint: The general sales order processing is executed as follows: Create

a sales order. At this point, the system will determine the price, cost,

discount, and other values based on the SD condition types configured.

After you save the order, the system assigns a sales order number. The next

step is the order delivery process. It includes the tasks to pick the materials

ordered, post the goods issue, and create a delivery document for theactual delivery of the product. Following delivery, a billing document is

created. The order processing from an SD point of view is then completed.

The condition technique used in the Sales and Distribution component

determines the prices and estimated costs (statistical conditions) for the

order.

1. To which value field is the condition type, PR00 (Price), mapped?

a) To which value field is the condition type, PR00 (Price), mapped?

IMG: Controlling ! Profitability Analysis ! Flows of Actual

Values ! Transfer of Billing Documents ! Assign Value Fields !

Maintain Assignment of SD Conditions to CO-PA Value Fields.

The condition type, PR00, is mapped to the value field, VV010

Revenue.

2. To which value field is the SD quantity field, FKIMG, mapped?

a) To which value field is the SD quantity field, FKIMG, mapped?

IMG: Controlling ! Profitability Analysis ! Flows of Actual Values

! Transfer of Billing Documents ! Assign Quantity Fields

The field, FKIMG, is mapped to the value field, VVIQT Invoiced

Quantity.

3. To test your configuration settings, create a standard sales order for your

customer as follows:

Standard Order

Order Type: OR

Sales organization: 1000






Distribution channel: 10

Division: 00

Sold-to party: T-CO05A##_ Becker

Ship-to party: T-CO05A##_ Becker

Material: P-100

Qty: 1

a) To test your configuration settings, create a standard sales order for

your customer as follows:

Logistics ! Sales and Distribution ! Sales ! Order ! Create

Order Type: OR

Sales Organization:

Distribution Channel:

Division 00

Choose Enter.

Sold-to Party: T-CO05A## Becker

Ship-to Party: T-CO05A## Becker

PO Number: GR## Item 10

Material: P-100

Quantity:

Choose Enter.

4. What is the value for the condition type, PR00, and the condition type,

VPRS?

Save your sales order. Order Number:

a) What is the value for the condition type, PR00, and for the condition

type, VPRS?

Select the item and then the Item conditions icon on the sales order screen.

The value for the condition, PR00 (Price), is 2,600.

The value for the condition, VPRS (Cost), is 480.14. (may vary)

Save your sales order. Order number ____________

5. Check the sales order item you have just generated in CO-PA. Which record

type do you use:







a) Check the sales order item you have just generated in CO-PA. Which

record type do you use:

Accounting ! Controlling ! Profitability Analysis ! Information

System ! Display Line Items ! Actual

Sales order: Your order number

! Execute

Select Enter to confirm Line Items: Selection Criteria

The CO-PA document was posted under the record type, A (incoming

sales orders).


Settings ! Layout ! Change

Select Revenue from the column set. The value is 2,600.00.

6. Edit the delivery now: The delivery process includes the picking process

and goods issue for your sales order.

Note:

- to select a sales order, you must increase the date to “today’s date + 1

month”.

- you navigate to the picking process via! Subsequent functions! Create

transport order . Go into the Create transport order function. Generate the

Transport order item, save it and return to your delivery.






Select Change delivery and click “Post goods issue”

a) Edit the delivery now: The delivery process includes the picking

process and goods issue for your sales order.

Select Subsequent Functions in the menu to create the delivery for

your sales order. Use a delivery date of one month from today and

the shipping point, 1000.


Functions ! Outbound Delivery.


Shipping Point 1000

Selection Date Today’s date + 1 monthOrder Your order number

Choose Enter


Adopt Pick Quantity 1

7. Use Subsequent Functions again to create the billing document using the

document number from the previous step.


a) Use Subsequent Functions again to create the billing document using

the document number from the previous step.


Functions ! Billing Document .

Your delivery number appears on the screen. To create the billing

document, select Save.


8. In CO-PA, display the line item for your billing document. Enter the


What is the total value of revenue:







From the line item report, how do you drill down to the sales order that

you originally created?

a) In CO-PA, display the actual line item for your sales order. Enter the



System ! Display Line Item List ! Actual

What is the total value of revenue? $2,600.00


As a result of the currency settings for the operating concern, IDEA,

both the operating concern currency and the company code currency

are stored. Both of them are displayed here.

Record type: F

Period/year: Current

Entered by: Your user ID

Customer: T-CO05A##

Product: P-100

What is the total value of revenue? 2,600.00


As a result of the currency settings for the operating concern IDEA,

both the operating concern currency and the company code currency

are stored. Both of them are displayed here.

From the line item report, how do you drill down to the sales order

that you originally created?

Double-click the line item to select it.

Environment ! Integration ! Display Sales Order





133 Exercise 7: Value Flows between Sales

Order Management and CO-PAExercise Duration: 15 Minutes

Exercise Objectives


• Understand the data flow from Sales Order Management to CO-PA

Business Example

Your company is now ready to test the mapping of the SD condition types to the

CO-PA value fields and the effect this has on valuation and derivation.

Task:

You want to compare the actual data from profitability analysis with the values

posted in Financial Accounting.

Hint: You can use the CO-PA reconciliation report to compare the actual

data from Profitability Analysis with the corresponding values posted

in Financial Accounting.

This enables you to see the value flow to CO-PA when invoicing takes place. It also shows the discrepancies between the applications and allows

you to analyze them.

In Sales Order Management, billing document values are assigned to

condition types, in FI they are posted to accounts and in Profitability

Analysis they are positioned in value fields. The reconciliation report

contains a list of the corresponding balances for value fields, condition

types and P&L accounts.

1. In the SAP menu select Accounting ! Controlling ! Profitability Analysis

under Tools! Analyze Value Flows the function: Check Value Flow in

Billing Document Transfer .


Company Code 1000

Currency Type 00

Billing No. of billing document for your

sales order






Take a look at the color legend. Which color is used to represent the value

fields?

Which color is used to show the discrepancies between Financial Accounting

and CO-PA?

Why is there no corresponding value for Accrued freight in FI, EC-PUA?





Solution 7: Value Flows between Sales

Order Management and CO-PATask:

You want to compare the actual data from profitability analysis with the values

posted in Financial Accounting.

Hint: You can use the CO-PA reconciliation report to compare the actual

data from Profitability Analysis with the corresponding values posted

in Financial Accounting.

This enables you to see the value flow to CO-PA when invoicing takes

place. It also shows the discrepancies between the applications and allowsyou to analyze them.

In Sales Order Management, billing document values are assigned to

condition types, in FI they are posted to accounts and in Profitability

Analysis they are positioned in value fields. The reconciliation report

contains a list of the corresponding balances for value fields, condition

types and P&L accounts.

1. In the SAP menu select Accounting ! Controlling ! Profitability Analysis

under Tools! Analyze Value Flows the function: Check Value Flow in

Billing Document Transfer .


Company Code 1000

Currency Type 00


sales order

Take a look at the color legend. Which color is used to represent the value

fields?

Which color is used to show the discrepancies between Financial Accountingand CO-PA?






Why is there no corresponding value for Accrued freight in FI, EC-PUA?

a) In Customizing for CO-PA, choose Tools! Analysis to analyze the

value flow from the billing documents of your sales order.

IMG ! Controlling ! Profitability Analysis ! Tools ! Analysis !

Check Value Flow in Billing Document Transfer


Company Code 1000

Currency Type 00


sales order

Take a look at the color legend. Which color is used to represent the

value fields?

Information icon

Blue

Which color is used to show the discrepancies between Financial

Accounting and CO-PA?

Red

Why is there no corresponding Financial Accounting value for Accrued

freight ?

The accrued freight costs were calculated when the document was

transferred to CO-PA and were not transferred from the billing

document. You can double-click to drill down to the billing

document and from there go to the Financial Accounting document.

This document contains realized values but not the costing-based

calculations from CO-PA.





Lesson Summary

You should now be able to:• Understand the data flow from sales order management to CO-PA






Lesson:

138

Transfer of Overhead


Lesson Overview

This lesson helps you understand the transfer and allocation of costs. It also

explains settlement of orders.

Lesson Objectives




Transfer of Overhead

Explain the business concept behind assessing the cost center and process costs

in Profitability Analysis. To allow full analysis of the costs that have arisen

in Overhead Cost Controlling, you can periodically transfer the overhead costs

that are not directly attributable to the cost centers or business processes to

Profitability Analysis. These are sometimes referred to as below the line expenses

or SG expenses.

These costs can be allocated to any market segment or profitability segment

and, as a result, to any level of the contribution margin hierarchies. This function

allows you to transfer the sales, marketing, and administration costs, as well as

the variances in service cost centers or production cost centers to Profitability

Analysis. Underline the fact that CO-PA uses the same assessment tool as

Overhead Cost Controlling.

Remind the participants that the product cost information can be retrieved when

transferring sales order management documents. Highlight the differences

between condition type VPRS and other COGS or COGM fields that are populated

through valuation. VPRS can be reconciled to Financial Accounting. It is the legal

Cost of Sales, and COGM or COGS may indicate a future or current standard

cost estimate.

To familiarize yourself with the concept of customer agreements, there is anexcellent IDES demo script on this topic, which you can execute in the training

system if time permits.




TFIN22_2 Lesson: Transfer of Overhead

Business Example






Your corporate operations department would like to allocate costs across the two

manufacturing plants and the distribution centers in Canada, the US, and Japan.

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.

For this reason, you need to execute allocations and settlements of overhead costs.

Transfer and Activity Allocation

Allocating Processes

Describe the process of activity allocations. Mention that this starts from the

Cost Center Accounting screens.

Accounting ! Controlling ! Cost Center Accounting ! Actual Posting !

Activity Allocation ! Enter ! Controlling Area 1000

Comment on the options under screen variant ! profit segment/cost ctr .

After the screen has changed, to show this screen variant, direct your attention tothe Profitability Segment arrow appearing on the receiver side.





Figure 52: Transfer of Overhead Costs: Overview

To show in Profitability Analysis all the costs incurred in Overhead Costs

Controlling, 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. This can be done using periodic assessment.

In addition, you can execute a direct or indirect allocation of internal activities

into CO-PA for Cost Centers and business processes. Along wíth the sender (cost center or process) and the receiver (profitability segment), you enter the

quantity of the activity performed and valuate it with the planned price of the

activity type. The amount that is arrived at is credited to the sender and debited

to the profitability segment receiving the quantity. The amount that is arrived at

is credited to the sender and debited to the profitability segment receiving the

quantity. 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.

If you use the cost component split in Cost Center Accounting or Activity-Based

Costing for price calculation, you can update the prices divided into cost

components during allocations to Profitability Analysis.

Credit object Which time basis

Cost Center Assessment CostCenter Periodical costs

Direct activity allocation Cost center Quantity Price ad-hoc





Indirect activity allocation Cost center Quantity Price periodic

Process assessment Process costs periodic

Template allocation Process Quantity Price periodic

Figure 53: Activity Allocation

You can transfer overhead costs from Cost Center Accounting either on an

activity-allocation or a periodic basis. You can transfer the activities either

directly or indirectly to Profitability Analysis.

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.

You can transfer the cost component split of the prices for each Cost Center to

CO-PA. To do this, you must activate the respective settings in Customizing and

then enter the cost elements in the various value fields.





Figure 54: 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. 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. Reference values for the transfer can be

quantities and values posted in CO-PA or additional cost driver information, suchas the number of sales orders created.

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.

The cost centers and processes are credited by the amount allocated. As a result,

all costs can only be allocated one time. You assess cost center and process costs

in the same way as done within Overhead Cost Controlling, which is by defining

cycles and executing them on a periodic basis. These cycles contain the control

information for the assessment and can be maintained in Customizing.





Figure 55: Defining and Executing an Assessment Cycle

A cycle controls how assessment is processed. It contains all the relevant

information about the senders, receivers, sender rules, receiver rules, and tracing

factors. Each cycle can contain a number of segments. The segment describes a

combination of senders and receivers that are to be processed together.

In theory, you could create one cycle for transferring all the overhead costs to

Profitability Analysis. Notice that for performance reasons as well as for technical

ones, 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. This also

has the advantage that when errors or changes occur, you only need to repeat

the affected cycles.

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.

The sender cost centers or processes are credited in the assessment cost element

specified in the segment of the cycle.

The receiver is defined by a combination of characteristic values, which means a

profitability segment. The values are debited to the profitability segment using the

assessment cost element, such as account-based CO-PA and value fields, such as

costing-based CO-PA, which you specified for each segment of the cycle.





Figure 56: Allocating Processes

In the SAP system, you allocate the process costs incurred for individual

profitability segments, such as a sales organization, to Profitability Analysis.

Notice that here you transfer the valuated process quantities and not the activity

type quantities as with cost centers.

When you create the process allocation, you can specify a profitability segment as

the receiver by selecting the Profit segment field. Then, when you press ENTER,the system displays a dialog box in which you can specify the characteristic values

to which you want to allocate the process.

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.

In account-based CO-PA, the costs are debited with the same allocation cost

element. For costing-based CO-PA, you need to assign this allocation cost element

to the required value field in the PA transfer structure CO.

In dynamic process allocation, you can determine to a great extent, which

profitability segment used the process and, as a result, should receive the processcosts. In this case, 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.

In Customizing, you assign this process template to characteristics, which are used

to select the cost drivers. Then, you need to assign update characteristics, which

ultimately determine the profitability segments to which the business process

costs are allocated.





Demonstration: Assessing Cost Center and ProcessCosts

Purpose

To demonstrate the steps to assess the cost center and process costs

System Data

System:

Client:

User ID:

Password:


1. In Financial Accounting, post expenses (account, 417000) to the cost center

for sales and distribution of pumps (3200).

Document date: Today’s date

Company Code: 1000 (should appear as standard value)

G/L Account:

Amount:

Sign: Debit

Tax code: 0l

Cost center:

Account:

Sign: Credit

Amount:

Choose Post

Accounting ! Financial Accounting !General Ledger ! Posting ! Enter

G/L Account Document

2. Define an assessment cycle, which assigns the cost center, 3200, to Division,01, 02, and 06, in Profitability Analysis, according to the rule, fixed

percentage rates. Explain the effects of the tracing factor field. Explain

the following central points: The assessment of costs is not done via the

Cost Center accounting (“Push”), but via CO-PA (“Pull”). Allocations

cannot cross controlling areas. Assessment is the only value allocation

method available. Distribution and Periodic Reposting do not work in

conjunction with PA. During the allocation run, postings are made to both

account-based and costing-based PA. The record type for the postings made

to costing-based PA is ‘D’. Derivation takes place during the allocation





run. Not all the expenses in CCA have to be allocated to PA. For example,

production-related expenses, such as production labor, is already included

in the cost of goods manufactured. Cycle: H100

Start date:

01/01/XXXX

Controlling area:

Tracing factor:

Select: Attach Segment and create the segment header:

Assessment cost element:

Value field: VV380 (fixed and var.)

Sender values: Rule 1; Percentage 100%

Receiving Tracing Factors: Rule 3

Select Sender/Receiver .

Sender: Cost Center 3200

Receiver: Division 01 to 06

Choose Receiving Tracing Factors.

Maintain the percentage rates and save the cycle.

Accounting ! Controlling ! Profitability Analysis! Actual Postings

! Period End Closing ! Transfer Cost Center Costs/Process Costs !

Assessment: Extras! Cycle! Create

3. Start the cycle you have created, H100, for the current period with updating,

which means not as a test run.

Cycle! Execute

4. Display the plan/actual comparison for the cost center, 3200, and the current

period.

Accounting ! Controlling ! Cost Center Accounting ! Information

System! Reports for Cost Center Accounting

Drill down to the line item and explain the audit trail and object type.

5. Display the line items in Profitability Analysis. Take account of the fact that

in costing-based Profitability Analysis, the assessment is posted under the

record type, D.


! Display Line Item List .





Settlement of Orders

Settlement of Orders

In SAP system, internal orders (CO), sales orders (SD), projects (PS), and

production orders (PP), can be settled to profitability segments. Briefly explain

the various orders in SAP system. Make clear that essentially settlement to

Profitability Analysis always follows the same pattern. Here, the settlement

process is demonstrated using an internal order.

Give the business example of an internal order, which captures the costs for a

trade fair or collects the various marketing costs, such as that of TV, radio, and

newspapers for each product, and settles them to Profitability Analysis. Take some

time to describe the PA transfer structure and its significance for costing-based

Profitability Analysis. Then, draw a diagram to depict the overall picture:

Settlement Structure:

Assignments Source Rec Type Settlement

CE

Supplies 400000 – 417000 PSG 650000 Mktg

Supplies

Personnel 420000 – 431000 PSG 651000 Mktg

Labor

PA Transfer Structure:

Assignments Source Value Field

Supplies 400000 – 417000 VV380 Marketing Expense

Personnel 420000 – 431000 VV381 Marketing Labor





Figure 57: Settlement of Orders

In the SAP system, you settle internal orders, sales orders, projects, as well

as production orders, and run schedules with production cost collectors to

profitability segments. These objects are used for the various purposes that are

relevant to Profitability Analysis.

• Internal orders and projects can be used to control the costs of an internal

activity, such as the costs of an advertising campaign. The costs of the

activity are posted to the order and collected there. At the end of the activity,

they are settled to the appropriate profitability segments, such as the product

range and sales area.

• You can also use Management Accounting orders to calculate the anticipated

values to be able to evaluate the accuracy of your accrual method. First,

you credit the accrual costs calculated in CO-PA to a special cost order for

accruals, currently by manual posting only. When the costs are actually

incurred, 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.

• A third possible use of internal orders or projects is in make-to-order

manufacturing. If you are handling sales orders, a customer project or a

Management Accounting order to which revenue postings are allowed, you

can post costs, such as production costs and S costs, as well as revenue and

sales deductions to the order or project. When the product is complete, the

costs and revenues can be settled to Profitability Analysis. You can also

transfer the accrued values that are particularly important for progress billing.





Figure 58: Settling Orders - Customizing (1)

In a settlement profile, 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, you need to specify an order type. The system uses this order

type to determine which settlement profile and, as a result, which settlement

structure and PA transfer structure to use.

In account-based CO-PA, costs are settled to the settlement cost element specified

in the settlement structure.

In costing-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.





Figure 59: Settling Orders - Customizing (2)

The PA transfer structure contains the assignment of costs and revenues to

the value fields in costing-based CO-PA. PA transfer structures are used in

order settlement, direct postings from FI, and internal activity allocations in

Management Accounting.

A PA transfer structure consists of any number of “assignment lines”. Each

assignment line contains the assignment of one interval or a group of cost or

revenue elements to the required value field.

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.

• The assignments must be unique: Each cost or revenue element can only

occur one time within a PA transfer structure.

Settlement structure: During settlement, the costs incurred under the primary and

secondary cost elements by a sender are allocated to one or more receivers. When

you settle by cost element, you settle using the appropriate original cost element.

An allocation structure consists of one or several settlement assignments. Anassignment defines which costs (Origin: Cost element groups from debit cost

elements) are to be settled to which receiver type (for example, cost center or

order). You have two alternatives in settlement assignment:

• You can assign the debit cost element groups to a settlement cost element.

• You can settle by cost element, which means the debit cost element is the

settlement cost element.





Demonstration: Settling Orders

Purpose

To demonstrate the steps to settle orders

System Data

System:

Client:

User ID:

Password:


1. Create an internal order for the Marketing expenses with the order type,0450, and the settlement rule, Profitability segment.

Order type:

Choose Settlement rule

Choose Detail

Maintain the settlement rule for the profitability segment

Product: P-100

Sales organization:


Division:

Show the Settlement Structure and the PA Transfer structure defaulted for

this order. Save the internal order and make a note of the number.

Accounting ! Controlling ! Internal Orders ! Master Data ! Order !

Create

2. In Financial Accounting, post the marketing cost, 477000, to the order you

have created.

Document date: Today’s date

Company Code: 1000 (should appear as standard value)

Account:

Sign: Debit

Amount:

Tax code: V0

Order: Enter order number.





Account:

Sign: Credit

Amount:

Choose Post

Accounting ! Financial Accounting ! General Ledger ! Posting !

Enter G/L Account Document

3. Settle your order in the current period.

Accounting ! Controlling ! Internal Orders ! Period-End Closing !

Single Functions ! Settlement ! Individual Processing:

4. Display the plan/actual comparison for your order.

Accounting ! Controlling ! Internal Orders ! Information System !

Reports for Internal Orders

5. Display the line item in Profitability Analysis. Take account of the fact

that in costing-based Profitability Analysis, the order settlement is posted

under the record type, C.


! Display Line Items.

6. Go to Customizing and explain the PA transfer structure, 10, and its

connection to the settlement profile, 100.

IMG ! Controlling ! Profitability Analysis ! Flows of Actual Values! Order and Project Settlement .





147 Exercise 8: Cost Center Assessment


Exercise Objectives


• 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, andthe 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 : 1000 C.E.B Berlin

Invoice Number: 1234##

Invoice Amount: 10,000.00

Account Number: 417000 External Services

Account Assignment: Marketing Cost Center

AC605-##

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.

2. 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.







Sender Selection Type 1 (unsplit costs)

CO Area 1000

Tracing factor 1 (costing-based CO-PA)

Attach Segment 1.


Segment Number/Name 1

Assessment Cost Element 692000

Value field VV380

Sender Values Posted Amounts

Share in % 100

Rule for receiver tracing factor 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?





Solution 8: 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. 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 : 1000 C.E.B Berlin

Invoice Number: 1234##

Invoice Amount: 10,000.00 Account Number: 417000 External Services

Account Assignment: Marketing Cost Center

AC605-##

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


a) Post an invoice from CEB Berlin the Marketing firm against this cost

center to pay for a market survey it conducted.

The credit entry in this case is posted to the vendor 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,

1000.

Accounting ! Financial Accounting ! Accounts Payable!

Document Entry! Invoice:


Vendor 1000

Invoice Date Today’s date

Posting Date Today’s date

Amount (due to vendor) 10,000

Account Number 417000

D/C Debit






Amount 10,000

Tax Code 0I

Cost Center AC605-##

Post your document.

Hint: During your posting, several messages may appear that

the account, 417000, is relevant for tax. These are warning

messages. Select Enter to confirm these.

2. 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.



CO Area 1000

Tracing factor 1 (costing-based CO-PA)

Attach Segment 1.

Field Name or Data Type ValuesSegment Number/Name 1


Value field VV380

Sender Values Posted Amounts

Share in % 100

Rule for receiver tracing factor Fixed percentages

Enter 50% as the receiver tracing factor for each product.

a) In the cost-based profitability analysis, apportion the costs for the Cost

Center on products P-101 and P-102. The costs should be divided


Create an allocation cycle, CYC-## , valid as of January 01, XXXX, to

allocate the marketing costs to the Marketing Costs value field. Use the

assessment cost element, 692000, and assessment result marketing.







! Period End Closing ! Transfer Cost Center Costs/Process Costs!

Indirect Activity Allocation: Extras! Cycle! Create


Cycle Name CYC-##

Start Date 1/1/XXXX

Enter:



CO Area 1000

Tracing Factor 1 (costing-based CO-PA)

Attach Segment 1.

Select: Attach Segment: Segment Header


Segment Number/Name 1


Value Field VV380

Sender Values Posted Amountsr

Share in % 100

Rule for Receiver Tracing Factor Fixed percentages

Choose Sender/Receiver.


Cost Center AC605-##

Cost Element 417000

Receivers Products P-101 to P-102

Select the Receiver Tracing Factor tab and enter 50% for each product.

Save your cycle and return to the initial assessment screen.






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.


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.

To execute your cycle, enter its number in the field provided. Deselect

Test Run but select Detailed Lists. Execute your cycle for the current

period.

Display the actual line item you just created for the product, P-101.

Accounting ! Controlling ! Profitability Analysis! Information

System! Display Line Item List ! Actual


Record Type D

Period/Year Current

Entered by Your user ID

Product 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. Only 1 line item was created there.

Reason: No setting for characteristic use in the account-based CO-PA

(see Customizing CO-PA, characteristic use).





153 Exercise 9: Internal Orders


Exercise Objectives


• 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.

Note: In CO, internal orders can be used to collect the costs for specific

projects, such as research and development, or marketing events. 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.

This allows you to separate project costs from recurring expenditures.

Task:

Create an internal order in the company code, 1000, 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, as the costs will be posted to it.

1. Create a settlement rule that determines where the costs for your internal

order are allocated at the period close. The settlement receiver is a

profitability segment. In the settlement information, you need to specify that

the settlement will be made to the material group, 001.Save the internal order number.

Order Number:

2. Charge costs to the internal order with a journal entry in Financial

Accounting. So far, you have incurred the following costs for the Las Vegas

trade fair:

Amount: 1000.00 Cost element: 476000






All costs are exempt from tax, tax code V0. These costs have been paid

from bank account, 113100.

Financial Accounting document number:

3. In the CO internal order application, process the internal order settlement for

the current period to Profitability Analysis.

Amount settled:

4. View the line item you created with the settlement of your internal order

in CO-PA.

Which value fields were populated? Why?

5. In the IMG, view the settlement configuration for the order type, 0450. To

which settlement profile is this order type assigned?

Display the settlement profile settings. What allocation structure is used in

the settlement profile?

Which PA transfer structure is linked to this settlement profile?

6. What is the purpose of the PA transfer structure?

To which value fields are Total Costs assigned?





Solution 9: Internal Orders

Task:

Create an internal order in the company code, 1000, 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, as the costs will be posted to it.

1. Create a settlement rule that determines where the costs for your internal

order are allocated at the period close. The settlement receiver is a

profitability segment. In the settlement information, you need to specify that

the settlement will be made to the material group, 001.

Save the internal order number.






Order Number:

a) Create an internal order to capture the costs for the Fun & Rec Show

in Las Vegas.

Accounting ! Controlling ! Internal Orders! Master Data!

Special Functions! Order ! Create:


Order Type 0450

Short Text Fun & Rec Show

Company Code 1000

Business Area 5000

Profit Center 1000

Check whether the internal order is released.

Select the Control data tab. If the system status is CRTD, click

Release to change the system status to FREE.

Create a settlement rule that determines where the costs for your

internal order are allocated at the period close. The settlement receiver

is a profitability segment. In the settlement information, you need to

specify that the settlement will be made to the material group, 001.

Select Settlement Rule. From the Settlement rule entry screen, select Details. From the Distribution Rules screen, select Profitability. Enter

Material Group, 001, and select Enter to continue. To view the profit

segment number, go back to the distribution rule and choose Hierarchy.

Save the internal order.

Order number:

2. Charge costs to the internal order with a journal entry in Financial

Accounting. So far, you have incurred the following costs for the Las Vegas

trade fair:

Amount: 1000.00 Cost element: 476000


from bank account, 113100.







a) Charge costs to the internal order with a journal entry in Financial

Accounting. So far, you have incurred the following costs for the Las

Vegas trade fair:

Amount:1000.00 Cost Element:


from the bank account, 113100.

Accounting ! Financial Accounting ! General Ledger ! Posting

! Enter G/L Account Document

Header


Document Date Today’s date

Row 1:

G/L Account 476000

D/C Debit

Amount 1000

Tax Code V0

Order Your internal order number

Row 2:


G/L Account 113100

D/C Credit

Amount 1000

Post your document.


3. In the CO internal order application, process the internal order settlement for

the current period to Profitability Analysis.






Amount settled:

a) In the CO internal order application, process the internal order

settlement for the current period to Profitability Analysis.

Accounting ! Controlling ! Internal Orders! Period-End Closing

! Single Functions! Settlement ! Individual Processing:


Purchase Order Number Your order number

Settlement Period Current

Fiscal Year Current

Test Run Not selected

Amount settled: 1000

4. View the line item you created with the settlement of your internal order

in CO-PA.


a) Accounting ! Controlling ! Profitability Analysis! Information

System! Display Line Items! Actual:


Record Type C

Period/Year Current

Entered by Your user ID


Settings! Layout ! Change

Select Marketing Activities from the column set.

Marketing Activities - Based on the configuration of the PA transfer

structure that determines which costs are settled and to which value

field.

5. In the IMG, view the settlement configuration for the order type, 0450. To

which settlement profile is this order type assigned?

Display the settlement profile settings. What allocation structure is used in

the 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.

The settlement profile is 100.

Display the settlement profile settings. 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.


10

6. 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.

The source – cost element group.

The value fields to which each assignment group is settled.

To which value fields the Total Costs are assigned.

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





161 Exercise 10: Activity Allocation


Exercise Objectives


• 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. The Product Engineering group spent 10 hours last month in improving product P-101. Controlling has set a rate of $100.00 per development hour.

Note: In addition to cost center assessments, you can use activities to

allocate the costs from cost centers to Profitability Analysis. 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. Activity prices

can be planned manually or calculated by the system based on planned

or actual costs. Activities can be allocated using a process called Direct

Activity Allocation, which credits the sending cost center and debits one

or more receivers.

Task 1:

1. Create the activity type EH## for the development time in hours. 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. The

activity type category is 1 because the costs are allocated manually. The

secondary cost element, 621000, will debit the activity receiver and credit

the cost center.

Save the activity type.

Task 2:1. Plan the activity price for this activity type for the current fiscal year in

the plan version, 0.

The development department plans to spend 1200 hours R&D time on blue

bicycles.

In Cost Center Accounting, choose Planning ! Activities/Prices to plan a

rate of 100 for the activity type, EH##, and the cost center, 4500.






Task 3:

1. Process the actual activity allocation for the current period to the product,

P-101, in the company code, 1000, and the business area 1000, also in Cost

Center Accounting.

The screen variant, Profitability Segment/Cost Center, allows you to allocate

the costs from a cost center to a profitability segment using an activity type.

Save the document.

Sender: Cost Center, 4500, Activity Type, EH##

Recipient: Profitability segment (product, P-101, company code, 1000,

business area, 1000)

Hours consumed:

Document number:

Task 4:

1. Display the line items you have created during the allocation in CO-PA.


Which value field has been debited with the activity allocation? Why?





Solution 10: Activity Allocation

Task 1:

1. Create the activity type EH## for the development time in hours. Validity

period from 1 January of the current year to 31 December 9999.


activity type category is 1 because the costs are allocated manually. The

secondary cost element, 621000, will debit the activity receiver and credit

the cost center.


a) Create the activity type EH## for the development time in hours.

Validity period from 1 January of the current year to 31 December 9999.


activity type category is 1 because the costs are allocated manually.

The secondary cost element, 621000, will debit the activity receiver

and credit the cost center.

Accounting ! Controlling ! Cost Center Accounting ! Master Data

! Activity Type! Individual Processing ! Create:


Name: Development Hours

Activity Unit H

CCtr Category: *

ATyp Category: 1

Allocation Cost Element: 621000

Price Indicator: 3

Task 2:1. Plan the activity price for this activity type for the current fiscal year in


The development department plans to spend 1200 hours R&D time on blue

bicycles.






In Cost Center Accounting, choose Planning ! Activities/Prices to plan a

rate of 100 for the activity type, EH##, and the cost center, 4500.

a) Plan the activity price for this activity type for the current fiscal year in


The development department plans to spend 1200 hours R&D time on

blue bicycles.

In Cost Center Accounting, choose Planning ! Activities/Prices to

plan a rate of 100 for the activity type, EH##, and the cost center, 4500.

Controlling ! Cost Center Accounting ! Planning ! Activity

Output/Prices! Change:

Field Name or Data Type ValuesVersion 0

Period 1 –12

Fiscal Year Current

Cost Center 4500

Activity Type EH##

Select Form-based.

Select Overview and enter the following:

Plan Activity: 1200

Fixed Price: 100

Save your plan price.

Task 3:

1. Process the actual activity allocation for the current period to the product,

P-101, in the company code, 1000, and the business area 1000, also in Cost

Center Accounting.

The screen variant, Profitability Segment/Cost Center, allows you to allocate

the costs from a cost center to a profitability segment using an activity type.

Save the document.

Sender: Cost Center, 4500, Activity Type, EH##

Recipient: Profitability segment (product, P-101, company code, 1000,

business area, 1000)

Hours consumed:






Document number:

a) Process the actual activity allocation for the current period to the

product, P-101, in the company code, 1000, and the business area,

1000, also in Cost Center Accounting.

You can use a screen variant to allocate the costs from a cost center to a

profitability segment using an activity type. Save the document.

Accounting ! Controlling ! Cost Center Accounting ! Actual

Postings ! Activity Allocation ! Enter:

Select the Profit Segment/Cost Center screen variant and choose

Individual Entry.

Field Name or Data Type ValuesSend. CCtr (Sender Cost

Center)

4500

SAtyTyp (Sender Act.Type) EH##

Total Quantity: 10

Receiver: Choose the profitability segment

Select Profitability segment and choose Enter. Enter product P-101

for Company Code 1000 and Business Area 1000. Post your entry.

Document number:

Task 4:

1. Display the line items you have created during the allocation in CO-PA.








a) Display the line items you have created during the allocation in CO-PA.



System ! Display Line Items ! Actual

Record Type: D

Period/Year : Current

Entered by : Your user ID

Product: P-101


Settings ! Layout ! Change

Select Marketing Activities from the column set.

Marketing Activities. The PA transfer structure, CO, is referenced

during the activity allocation to CO-PA.





Lesson Summary

You should now be able to:• Explain the transfer and allocation of costs






Unit Summary













1. and discounts are transferred to profitability segments in

Profitability Analysis at the point of billing in Sales Order Management.


2. How are production variances calculated?

3. 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.


! True

! False

4. in the costing-based CO-PA contain the amounts

and quantities on which you want to report.


5. The central document in SD is the .


6. What is a condition type?

7. A business transaction is normally concluded in sales order managementwith the .


8. The condition type, transfers the COGS posted at the time of

goods issue to CO-PA.






9. You can transfer the overhead costs from Cost Center Accounting either on

an activity-allocation or a basis.


10. What all can you settle in SAP R/3?

11. The application component

provides an alternative form of overhead control.


12. In , costs are settled to the

settlement cost element specified in the settlement structure.






171Answers

1. Revenues and discounts are transferred to profitability segments in

Profitability Analysis at the point of billing in Sales Order Management.

Answer: Revenues

2. How are production variances calculated?

Answer: The production variances are calculated as the difference between

the actual costs of goods manufactured and standard costs.

3. One of the important tasks in Customizing for the costing-based CO-PA is toassign your costs and revenues to the required value fields.

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. Value fields in the costing-based CO-PA contain the amounts and quantities

on which you want to report.

Answer: Value fields

5. The central document in SD is the sales order.

Answer: sales order

6. What is a condition type?

Answer: A condition type is a representation in the system of some aspect of

your daily pricing activities, such as discount or surcharge, which occurs in

your business transactions.

7. A business transaction is normally concluded in sales order management

with the billing document.

Answer: billing document

8. The condition type, VPRS, transfers the COGS posted at the time of goods

issue to CO-PA.

Answer: VPRS,





9. You can transfer the overhead costs from Cost Center Accounting either on

an activity-allocation or a periodic basis.

Answer: periodic

10. What all can you settle in SAP R/3?

Answer: In SAP system, you settle internal orders (CO), sales orders (SD),

projects (PS), as well as production orders.

11. The Activity-Based Costing application component provides an alternative

form of overhead control.

Answer: Activity-Based Costing

12. In account-based CO-PA, costs are settled to the settlement cost element

specified in the settlement structure.

Answer: account-based CO-PA




TFIN22_2 Course Summary

Course Summary


• 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




Course Summary TFIN22_2




Appendix 1Appendix

Figure 60: Appendix

Figure 61: Master Data : Additional Topics




Appendix 1: Appendix TFIN22_2

Figure 62: 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. This conversion can occur

in two different ways.

First, 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, ensure that theUoM that is selected as standard is also maintained in the material master for all

materials, either as a base UoM or as an alternative UoM.

If you cannot define a uniform standard UoM due to the heterogeneity of the

materials affected, you can define a comparable standard UoM using the methods

for deriving characteristics. To do this, use a characteristic value (such as a

product group) as your basis.

This straightforward feature enables you to compare the different UoMs in CO-PA.




TFIN22_2 Appendix 1: Appendix

Figure 63: Aggregating the Tracing Factor

Normally, 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.

Note that if these tracing factors are subject to significant periodic fluctuations,

you cannot allocate the values according to their cause.

As of Release 4.0A, you can use the Aggregated tracing factor indicator to

eliminate the fluctuations between periods.

Figure 64: CO-PA Derivation: (1)





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).

By supplementing the values determined by automatic mapping, derivation can

access additional information (characteristic values) both within and outside the

originating transaction.

For every COPA-relevant transaction, 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 is not always successful. Unsuccessful derivation for a characteristic

results in the posting of a blank or unassigned characteristic value, or the value

zero.

The total of all characteristic values used at segment level for a particular business

transaction defines the respective profitability segment. The profitability segment

is the CO-PA account assignment object.

The dependant characteristics, such as the customer group and the sales district

can be derived only if the characteristic values for the independent characteristics,

customer, sales organization, distribution channel, and division are all specified.

Figure 65: CO-PA Derivation: (2)

Derivation rules are used to determine characteristic values through user-defined

logic. They are frequently used with user-defined characteristics, although they

are not limited to this application.

With derivation rules, characteristic values (also known as “target values”) are

determined directly based on the values of other characteristic values (known as

“source values”).





As with other derivation steps, derivation rules can be configured to apply to

either all situations or only when certain conditions are met (for example, when

a sales organization is 1000).

If a value cannot be determined by the rule entries, derivation rules can also be

configured to produce an error or to ignore this failure and proceed.

Unlike other derivation steps, derivation rule entries can be configured so

that they apply at a specific interval or time (time-dependent), or at all times

(time-independent).

Derivation rules can be set up in sequence with other derivation steps and methods

to produce complex derivation logic.

If a CO-PA derivation rule is not maintained properly, the system will issue an

error message when CO-PA derivation is performed. An incorrect derivation rule

may prevent billing documents being released to accounting.

Figure 66: Special Characteristics

Figure 67: Product Hierarchy





The product hierarchy entered in the material master is contained in an 18-character

field that is logically divided into different levels. If you simply choose this field

from the reference table, the tables MARA or MVKE, as you would for other characteristics, the Information System cannot recognize its encrypted hierarchical

structure. This means that you can drill down only on one level of the hierarchy.

Figure 68: Transfer "Product Hierarchy" before Rel. 4.5

If you want to drill down through all the levels of the product hierarchy, you

need to represent each of the individual levels as a separate characteristic in

CO-PA. Example: The product hierarchy contains three parts, the first two with

the length 5 and the third with the length 8. This means that the first level of the

product hierarchy is of the length 5, 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. In

CO-PA, you need to define the following three characteristics for these three

levels (in transaction KEA0):

WWPH1 ‘Product Hierarchy. Level 1’ CHAR 5

WWPH2 ‘Product Hierarchy. Level 2’ CHAR 10 (5 + 5 !)

WWPH3 ‘Product Hierarchy. Level 3’ CHAR 18 (5 + 5 + 8 !) Next, you need to inform the system that the characteristics defined above are to be

supplied with the values from a product hierarchy. By maintaining the appropriate

derivation table entries, you can supply these levels automatically with the product

hierarchy contained in the material master. For more information, see SAP Note

62690. In CO-PA, you need to maintain master data for your user-defined fields.

For the above example, enter all the valid product hierarchy elements for all three

characteristics, WWPH1, WWPH2, and WWPH3 (transaction KES1).





Figure 69: Transfer “Product Hierarchy” Release 4.5 (1)

As of Release 4.5, you can transfer the levels of the “Product hierarchy”

characteristic to CO-PA from the material master.

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.

The PAPH1 and PAPH2 fields are generated in CO-PA to correspond to the

product hierarchy levels. With the CO-PA Customizing function “Transfer from

SAP table”, you can transfer the required fields from table MVKE to CO-PA

as characteristics. This enables you to evaluate the individual hierarchy levels

in reporting.

In contrast to when you define your own characteristics, you do not need to

maintain any characteristic values or derivation rules when you adopt the

characteristics from an SAP table.

You can still use any user-defined characteristics for the product hierarchy that

you were already using.





Figure 70: Transfer “Region” from an SAP Table

As of Release 4.5, you can transfer the “Region” field from the customer master

to use it as a characteristic in Profitability Analysis.

The PAREG field is available through the “Transfer from SAP table” function in

CO-PA Customizing, and can be transferred from the customer master (table

KNA1). This field is composed of the characteristic values of country and region.

In contrast to when you define your own characteristics, you do not need tomaintain any characteristic values or derivation rules when you adopt the

characteristics from an SAP table.

You can still use the “Region” characteristic (possibly a user-defined characteristic)

that you were already using.





Figure 71: Customer Hierarchies

In Profitability Analysis, you use particular characteristics to map the customer

hierarchy from SD. You can add these characteristics to your operating concern’s

data structure from the PAPARTNER structure. Each individual level of the

customer hierarchy is assigned to a separate CO-PA characteristic, HIE01, HIE02,

and HIE10.

When you transfer sales orders or billing documents, the customer hierarchy

determined by SD is automatically transferred to CO-PA with the order or

document. In other Profitability Analysis transactions, the customer hierarchy

is derived uisng the customer, sales organization, distribution channel, and

division characteristics. The customer hierarchy category that is assigned to the

corresponding operating concern should always be taken into account.





Figure 72: Determination of the division in SD

Figure 73: Partner functions

You can use the partner functions from SD as characteristics in Profitability

Analysis. Certain standard partner functions are available for this purpose.

Furthermore, you can define your own partner functions in SD. The

customer-defined partner functions can also be transferred to the Profitability

Analysis data structures as characteristics.

A clear distinction must be made between the standard partner functions and the

user-defined partner functions. For both the standard partner functions and the

user-defined partner functions, a further distinction is made between personnel





representative functions and partner functions, which signify the customer master

data table and the KNA1 or LFA1 vendor master data tables. Partner functions,

which refer to the customer master data table or the vendor master data tables,are assigned to the corresponding master data tables (KNA1 or LFA1) as value

tables. Personnel representative functions do not have any value tables. The sales

employee is an example of a personnel representative function, which is available

in the standard system.

For an in-depth explanation of how to transfer partner functions from SD to

CO-PA, see SAP Note 36557.

Figure 74: Value Flows

Figure 75: 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. Even so, note that only certaincondition types in SD can be transferred to CO-PA. These are:

• Revenues and sales deductions, 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, such as the VPRS condition

type, which contains the costs of goods sold. Statistical conditions do not lead

to a posting to a G/L account. In addition, note that only active conditions

are transferred to CO-PA. Inactive conditions are not transferred. If all the

conditions in an item are inactive, the order item is not transferred to CO-PA.





For make-to-order production (the VBRP-VBELV field in the billing document is

filled), data has to be transferred to CO-PA using order settlement.

Figure 76: SD/CO-PA Interface: Plus/Minus Sign Logic

All values are transferred to CO-PA as positive. For credit memos (billing

type G2), all signs are reversed. Only in CO-PA reporting are sales deductions

subtracted from the gross revenues. The reason for this procedure is that the

revenues in the different SAP applications have different plus and minus (+/-)signs. The revenues in the SD component are managed as positive amounts, but in

the FI component they are negative amounts. Since revenues can be transferred to

CO-PA from both systems, the plus and minus signs (+/-) have to be processed.

Note that this solution requires condition types that are managed as negative

amounts in SD, such as discounts, to be assigned to other CO-PA value fields as

positive condition types, such as special revenues.





Figure 77: FI/CO-PA Interface versus SD/CO-PA Interface: Plus/Minus Sign

Logic

Figure 78: Project System: New Analyses in CO-PA

Settlement of incoming sales orders for each billing element.

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”).

Order balance = settled incoming orders together with consideration of revenues

and of the cost of sales already billed.





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 - See the release notes.

Figure 79: How to Compare Estimated Values with Actuals?

When the billing document is released to Accounting, the accrued discount from

the billing document is transferred to costing-based CO-PA using a statistical

“Cash Discount” condition.

The cash discount is calculated during the run of the payment program in FI. To

transfer the actual cash discount to CO-PA, you have two options.

First, you can use automatic account assignment to post actual cash discount

at a higher level into CO-PA.

Second, you can start the “Profit and Loss Readjustment” program (SAPF181) in

your period-closing activities as shown above. Actual cash discount will now be

assigned to the customer level to trace your actual customer profitability.

In both cases, make sure that accrued cash discounts and actual cash discounts are

stored in two different value fields. Reporting must be designed accordingly.





Figure 80: Top Down Distribution of Single Valuation Views

Previously, in top down distribution for actual data, the data used to be distributed

for all the valuation views from legal valuation and profit center valuation.

Currently, individual valuation views can be processed separately within a top

down valuation run.

In cases where you use both valuation views but require details for only one, it is

a good idea to perform top down distribution just for this view. This allows youto reduce runtimes in top down distribution and avoid generating unnecessarily

large volumes of data.





Figure 81: Top Down Distribution of Various Record Types

With top down distribution, you can concurrently distribute data from several

record types, in a single run. This eliminates the need to re-enter the same

parameters for separate runs for each individual record type.

Figure 82: Specifying the Currency Type for Reference Data





Top down distribution offers you more flexibility when entering reference data.

Instead of automatically applying the respective currencies of the reference data,

you can now indicate a fixed reference currency – the company code currency or the operating concern currency.

Figure 83: Reference Data with Various Record Types

In top down distribution, you can select different record types as reference data.

You can specify whether the reference data for the different record types should be

cumulated or handled separately.

If you choose “Cumulate Record Type”, the reference data is summarized at record

type level. This means that the data is processed as if the same record type applied.

If the record type is not cumulated, the number of record types needs to be the

same for the actual data and the reference data. Processing observes the sequence

in which the record types are entered for the multiple selection. 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, see the

following section). (This example is also found in the F1 Help documentation.)





Figure 84: Aggregating Record Types - 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)





Figure 85: Event Planning with Object-Dependent Revaluation Key

Events, such as special sales campaigns, can have a short-term influence on the

sales of products.

As of Release 4.5, events can be taken into account in manual and automatic

sales and profit planning.

From a functional perspective, an event can be seen as a revaluation key linked to

a specific length of time.Events can influence the data of an entire plan or be defined with reference to

specified characteristics, such as a specific region.

Figure 86: Additional Functions





Figure 87: Recommendations on How to Use Excel (1)

When you define your Excel template, you should distinguish between two types

of spreadsheet in Customizing:

• An SAP spreadsheet, 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.

When you plan with the SAP spreadsheet, you should be aware of the specialfeatures:

• You cannot make any further alterations to the position of the data in Excel

when planning. You cannot delete columns or move cells at this stage.

• You can add new entries in the SAP spreadsheet only in the lines below

the totals line.

• To display possible entries, 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.





Figure 88: Recommendations on How to Use Excel (2)

Due to the restrictions of the SAP spreadsheet, a procedure can be followed in

which data is copied from the SAP sheet to a different Excel spreadsheet.

You can use all the Excel functions to create data, depict data with graphics or

calculate data using models.

After you have finished working on the appropriate record, data is transferred back

to the SAP spreadsheet using a macro. For more information, see the appropriateexample in the documentation.

Note: When you develop the macro, it is good idea to test your solution

outside of R/3 Customizing first and then transfer it using Cut and Paste.





Figure 89: Using Attributes to Display More Information

In previous releases, it was possible only to determine how the lead column

should be displayed, such as the key, characteristic name, or both. You can now

use attributes to display further information from the characteristic master data

tables in the lead column.

Choosing “Settings! Characteristic display” allows you to determine how

characteristics are displayed in the lead column. The characteristic name is

displayed in the above example.

If you select the lead column and choose “Settings! Characteristic display!

Lead column”, 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.

Finally, choosing “ Extras! Attributes” allows you to display a dialog box

showing all the attributes for a characteristic.





Figure 90: The Transport Concept (1)

Each independent installation of R/3 is known as an R/3 instance. Normally, there

is a 1:1 ratio between R/3 instances and database servers. In addition, there are at

least three instances for each SAP project: for development, integration testing,

and production activities.

Each operating entity within an instance is called a “client”. There are normally

several clients in any instance, which are used for different tasks, such as“playgrounds”, development, unit testing, and backups. The way in which the

clients and instances are used in a project is known as a client strategy.

The technical operating level of an instance is known as the data dictionary

(DDIC). The DDIC contains objects, such as tables, programs, and data elements,

which are client-independent. This means they pertain to all the clients in an

instance.

Certain objects contain data that is client-dependent. Data can be classified as

master data, configuration data, and transaction data. Master data should be

maintained on the user side of system. Configuration data represents the settings

that define transactions for R/3 Enterprise.

Transaction data is produced by the transactions in R/3 Enterprise. Transporting

indicates the SAP process of moving items between clients within an instance

and among instances.

With transporting, items (such as objects and data) are collected into transportable

bundles, which are then processed at the operating system level by a systems

administrator. Normally, configuration data can be transported between clients

within or among instances. Master data and transaction data, on the other hand,

cannot be transported in this way. However, they do not have to be transported

between clients since they are client-independent.





Figure 91: The Transport Concept (2)

Each independent installation of R/3 is known as an R/3 instance. Normally, there

is a 1:1 ratio between R/3 instances and database servers. In addition, there are at

least three instances for each SAP project: for development, integration testing,

and production activities.

Each operating entity within an instance is called a “client”. There are normally

several clients in any instance which are used for different tasks, such as“playgrounds”, development, unit testing, and backups. The way in which the

clients and instances are used in a project is known as a client strategy.

The technical operating level of an instance is known as the data dictionary

(DDIC). The DDIC contains objects, such as tables, programs, and data elements,

which are client-independent. This means they pertain to all the clients in an

instance.

Certain objects contain data that is client-dependent. Data can be classified as

master data, configuration data, and transaction data. Master data should be

maintained on the user side of system. Configuration data represents the settings

that define transactions for R/3 Enterprise.

Transaction data is produced by the transactions in R/3 Enterprise. Transporting

indicates the SAP process of moving items between clients within an instance

and among instances.

With transporting, items (such as objects and data) are collected into transportable

bundles, which are then processed at the operating system level by a systems

administrator. Normally, configuration data can be transported between clients

within or among instances. Master data and transaction data, on the other hand,

cannot be transported in this way. However, they do not have to be transported

between clients since they are client-independent.





Figure 92: Transports in CO-PA

The transport function for CO-PA is flexible and sophisticated, allowing for a

number of ways to accomplish the required goals.

Option 1: Most CO-PA Customizing changes are automatically included in change

requests when the change management system is active for a client. The change

requests can be transported with standard functions. This approach is encouraged

for small configuration changes, especially deletions. Note: Not all Customizing settings can be transported using this option, as not all

Customizing settings create change requests automatically. However, deletions of

mappings must be transported with this option.

Option 2: Most configuration which takes the form of entries in a table (technically

speaking, that configuration which is modified through view maintenance) can be

selectively added to manually triggered transports. Manually created transports

are triggered by an option in the Table View menu.

Note: This option is for transporting selected entries in a table, such as mappings of

condition types. Again, only some configuration can be transported in this manner.

Option #3: This tool facilitates the transport and ensures consistency in thedevelopment of CO-PA. This transport tool can transport all or some parts of

an operating concern.

Notes: Other such objects are listed below.

Option 4: Copying of certain items, such as reports, forms, line item layouts,

report line structures, and planning layouts, from client to client within an instance

and within an operating concern is possible with an import tool, without going

through any CTS procedures at all.





Figure 93: 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.

• If the receiver is a client in a different SAP instance, then the standard

system-to-system transport method is required to process the transport(s).

• If the receiver is a client in the same instance, then a client has to be copiedin accordance with the transport request. This ignores any client-independent

objects.

It is recommended that you regenerate the operating concern and summarization

levels in the target after transporting any configuration changes. This ensures that

all the necessary items in the DDIC are updated for the change.

The special transport tool can transport Customizing data separately or together.

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, 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. However, the number intervals themselves

have to be transported separately. It is a good idea to use the same number range

intervals in all instances to avoid possible conflicts as a result of transports.





Figure 94: 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.





Figure 95: 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 andactual 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.





Figure 96: 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 notsimulate 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 dataand 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.





Figure 97: Archiving and Deleting CO-PA Data

Profitability Analysis uses the standard ERP system functions to archive and delete

movement data. In the ERP system, archiving means copying data from ERP

datatables to archive files. Deletion means removing data from ERP datatables.

As a result, you can archive with or without deletion. If you archive with deletion,

you can configure the two processes to occur simultaneously or sequentially.

In Profitability Analysis, you can archive or delete line items for selected periods

(although not for the current period). Summary records, on the other hand,can only be deleted once a year. Actual and planning data, as well as data in

costing-based and account-based Profitability Analysis, is archived and deleted

separately. Data records can also be archived and deleted by record type.

Incidentally, there are standard functions in the Implementation Guide to

reorganize or delete the other types of data and other items in CO-PA, such as

frozen data, report definitions, form definitions, planning layouts, and line item

layouts. Note that deleting security data does not delete movement data from the

standard tables but only deletes the “frozen” data for the reports.





Figure 98: SAP Enhancement Concept

The R/3 enhancement tool is used to add customized functions to SAP’s standard

business applications. Through enhancements, customers can implement their own

functions without needing to modify the standard SAP code. Each enhancement

has a specific purpose.

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,

manipulated, and returned. Enhancements also isolate custom functions so they

will not harm SAP transactions nor upgrades.

To use enhancements, custom functions must be programmed into the

enhancements. The enhancements must be assigned to enhancement projects.

In addition, each project must be activated for all of the functions contained inthe related enhancements to take effect.

Figure 99: CO-PA Enhancement Overview (1)





With the COPA0001 enhancement, 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. For example, this enhancementmight be used to determine the value for a special user-defined characteristic,

which is determined by complex logic not achievable through derivation rules.

With the COPA0002 enhancement, you can program the steps to calculate or

retrieve the special values during valuation. Separate calculations can be defined

for the planned and actual data. Calculations are assigned user exit numbers,

which must be placed in active CO-PA valuation strategies for the calculations to

occur during the posting of data. For example, this enhancement might be used

to delete certain values for updating Profitability Analysis, provided that these

are not required (for example, “dummy” products for freight, documentation,

and services).

With the COPA0003 enhancement, you can use characteristic groups in

conjunction with additional conditions (instead of just one report) whenever

manual assignment to a profitability segment is required. This means the same

transaction could require the specification of values for different characteristics

when different situations arise.

For example, you can use this enhancement to determine a characteristic group

according to the account that is posted, so that product-related accounts have the

product number and customer-related accounts have the customer as a required

field in the profit segment.

Figure 100: CO-PA Enhancement Overview (2)

With the COPA0004 enhancement, you can reprogram the exchange rate type

that should be used for currency transaction when actual data is processed in

costing-based CO-PA.





For example, for actual postings you can change the average exchange rate (“M”)

to the bank buying rate (“G”) or the bank selling rate (“B”).

With the COPA0005 enhancement, you can change or define characteristic values

or field values on the interfaces with other applications by using information from

the source document. This cannot be done with the enhancements for derivation

and valuation, since these only use information that is contained in the CO-PA

component.

For example, 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, you can program the special functions for

processing planning data during the manual and automatic planning processes.

Each function is given an exit number, which must be specified when conductingthe tasks to access the required calculations.

For example, this enhancement can be used to for distribution using a

characteristic-specific distribution key, for revaluation using a time-dependent

revaluation factor, or for moving plan/actual variances to future periods.

With the COPA0007 enhancement, you can program special processing

instructions for externally uploaded data only. This means you can modify the

line items that are transferred to costing-based CO-PA over the standard interface

using customized source code.

Figure 101: Recommended Follow-Up Activities

Data Used in the Exercises

Data Data in Training

System

Data in IDES System

Operating Concern IDEA IDEA

Controlling Area 1000 1000

Company Code 1000 1000

Sales Organization 1000 1000

Distribution Channel 10 10

Division 00 00





Products P-100, P-101, P-102,

P-103

P-100, P-101, P-102, P-103

Customer T-CO05A## T-CO05A##

Sales Order Type TA TA

Internal Order Type 0450 0450

Cost Center 4500 4500

Activity Type EH##

Currency UNI UNI

Business Area 5000 5000

Plan Version 100 5## 100




Index AAssignment lines, 90

BBase condition types, 95

C

Calculation condition types,95

Calculation Type, 94Characteristic derivation, 61Characteristic Values, 7Characteristics, 7 – 8CO orders, 174CO-PA relevant transaction,

55Company code, 5Condition type, 94Controlling area, 5Controlling Pr ofitability

Analysis (CO-PA), 86Costing key, 90Costing sheets, 93Customizing Monitor , 70

DDerivation rules, 68Derivation strategy, 64

OOperating concern, 5

Overhead Cost Controlling,130

Overhead Costs Controlling,166

PPA transfer structure, 176

Period indicator , 91Periodic valuation, 86Plant, 5Product Cost Controlling

(CO-PC), 89Product Costing, 88Production variances, 131Profitability Analysis, 86,

131, 137Profitability segment, 61

Ssales order management

transaction, 56Scale Basis, 94settlement profile, 175

TTable lookup, 67

VValuation analysis, 101, 148Valuation configuration, 88Value Fields, 10




Index TFIN22_2




Feedback