Actual Value Flow in ProfitabilityAnalysis (CO-PA)

Solution Management ERP FinancialsSAP AG

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

Contents

FIFICost and Revenue Element Accounting

Overhead CostOverhead CostControllingControlling

Product CostProduct CostControllingControlling

Profitability AnalysisProfitability Analysis Profit. segmentsCOCO

StandardCost Estimate

RevenuesDiscounts

Costobject

COCO--PAPA

ECEC--PCAPCA

SDSD

ProfitProfit--Center AccountingCenter Accounting

ProcessesProcesses Cost CentersCost Centers Internal OrdersInternal Orders

Flows of Actual Values Overview

Costing-Based

Value FieldsRevenues 1,000,000Sales deductions 100,000

--------------Net revenues 900,000Var. material costs 400,000Var. production costs 190,000Prod. variances 10,000

--------------Contribution margin 1 300,000Material overhead 50,000Production overhead 50,000

--------------Contribution margin 2 200,000Research & develop. 10,000Marketing 50,000Sales and administration 40,000

--------------Contribution margin 3 100,000

Flow of Actual Values Results

Account-Based

Cost and Revenue Elements800000 Revenues 1,000,000808000 Sales deductions 100,000

--------------Net revenues 900,000893000 Cost of sales 690,000

231000 Price differences10,000

651000 Research & develop. 10,000671000 Marketing 50,000655000 Sales and Administration 40,000

--------------Result 100,000

Sources of Value Fields

SDSD

Cost CenterOrderProcess

Cost Estimate

General Ledger Posting

Billing Document

FIFI

COCO--OMOM

PSPS

COCO--PAPA

WBS ElementNetwork Operation

Additional Costs

Quantity

Sales Revenues & Deductions

Cost of Goods Sold

Variable Cost of Goods Mfd

Fixed Cost of Goods Mfd

BonusesFreight Costs

Sales and Administration Costs

Marketing Costs

Variances

Research & Development Costs

Estimated Discounts

Estimated Bonuses

COCO--PCPC--OBJOBJ Production Order Production Variances

COCO--PCPC

SD: Condition Types - Pricing Procedure

Sales OrderPricing ProcedurePR00 - PriceDISC - Customer DiscountVPRS - COGS

SDSD

Header (e.g. Customer)

Item 10 (e.g. Product 1)

Pricing

DeterminePricing Procedure

Item 20 (e.g. Product 2)Condition TypesPR00 1000.-DISC 100.-VPRS 700.-

11

SalesOrder

Sales from Stock: Transferring IncomingOrders

SDSD

Sold qty +Revenue +Rebates +COGS +

Condition Types

PR00,DISC,VPRS

(account-based)

Quantity Flow

COCO--PAPA

(costing-based)

SDSD

COCO--PAPA

FIFI

tXCOGS

XInventory

Sales from Stock: Postings Delivery

1

1

SalesOrder 1

2

Delivery

(account-based)

Quantity Flow

COCO--PAPA

(costing-based)

SDSD

COCO--PAPA

FIFI

tX

X

XRevenue

Customer

RebatesX

COGS

XInventory

Sales from Stock: Billing

Sold qty +Revenue +Rebates +COGS +

SDSD

Condition Types

PR00,DISC,VPRS

1

1

SalesOrder 1

2

Delivery1

3

Billing

(account-based)

Quantity Flow

COCO--PAPA

(costing-based)

SDSD

COCO--PAPA

FIFI

COCO--PAPAAcc.b.Acc.b.

Condition Types

Condition Record1 PC 50010 PC 497

Dependencies:Customer/Material

Condition type

SDSDCOCO--PAPA

Value fieldRevenue

Pricingdetermines

PR00

Value 500 USD

Account Key: ERL

FIFI

Account:800000

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

YES

NO

Derivation error

Error in account-determination

Cost estimate notfound

SDSDHeader : Customer 47

Item 10: Product A

Item 20: Product B

SAVE

Billing-documentSDSD

Infomissing ?

Release toAccounting

COCOPAPA

FI

FI-Docu-ment

Line-item 1

Line-item 2Customer 47Product A

Revenue ...Disc. ...COGS ...

Transfer Billings Document to CO-PA: In Detail

11SalesOrder

3Billing

Document1

2Delivery

t

X XXRevenue CustomerRebates

XCOGS

XInventory

Valuation Using Product Costing: Process

ConditionTypeVPRS

Sold qty +Revenue +Rebates +COGS +var.PC +fixed PC +

MaterialMaster

Product CostEstimates

Valuation

(account-based)

Quantity Flow

COCO--PAPA

(costing-based)

SDSD

COCO--PAPA

FIFI

Transferring Customer Agreements

Budget Commitment,Cust. Agreement

Incoming Order Billing Doc.

Sales Order Billing Doc.

SalesPromotion

SalesPromotion

SalesPromotion

Planningin CO-PA

Customer agree-ments transferredwith record type G

SDSD

COCO--PAPA

(costing-based)

Specialdeliveries

Transfer of Overhead Costs: Overview

Process

Cost centerAssessment

Assessment of process costs

Value fields

Admin.costs

Field servicehours

CustomerCare

Direct /indirect activity allocation

Order/Project Settlement

Template allocation

COCO--OMOM

COCO--PAPA

COCO--ABCABC

Marketingcampaign

Indirect activity allocation

Admininstration

400000430000

630000Costing based: Administr. + 50.000,-

Account based: 630000 + 50.000,-

20.000,--30.000,--50.000,--

- 50.000,--

Cycle

Assessment

Assessing Cost Center and Process Costs

Cost Center

Process

COCO--PAPA

Division1

Overhead

CM5

Region1

OverheadBranch Office

CM4

Customer Group1

OverheadAdministration

SalesCM3

Product Group1

FixedCOGMCM2

Cust./Product

Cost CenterManagement

Revenue

:

:

:

CM1

Sales Rev.Sales

DeductionsNet Revenue

Var. COGM

CM1

Revenue

:

:

:

CM1

:

:

CM2

Revenue

:

:

:

CM1

:

:

CM2

:

:

CM3

Revenue

:

:

:

CM1

:

:

CM2

:

:

CM3

CM4Cost Center

Central Function

Cost CenterAdministration/

Sales

Cost Center"Production"

Multi-Level Overhead Allocation

Acc: 658000 + 8000.-

Settlement of Orders

Research &Development

Customer GroupBusiness Unit

...COCO--PAPA

Cost. bas.Cost. bas.

R&D Costs 8000.-

MaterialInput 3000.-Services 5000.-

R&D Costs - 8000.-Acc:658000

Value field assignmentvia PA Transfer Structure

COCO--PAPAAcc. bas.Acc. bas.

Settling Orders - Customizing (1)

Order

Parameters:SettlementStructurePA TransferStructurePA Transfer

Structure

SettlementProfile

DetermineValuefield

OrderType

COCO--PAPA

SettlementStructure

DetermineSettlement

Cost Element

Settling Orders - Customizing (2)

Source

Assignment Lines

Value Field

Cost Element Group:

OAS 400000 - 699999 10 R & DR & D

PA Transfer StructurePA Transfer Structure

Settlement StructureSettlement Structure

Source

Cost Element Group:

OAS 400000 - 699999

Assignment Lines

By ReceiverType

Settlement-Cost Element

655000

Acc: 486000 + 3000.-

Direct Posting from FI

Customer,Sales Area COCO--PAPA

Cost. bas.Cost. bas.

Selling Exp. 3000.-Value field Assignment

viaPA Transfer Structure FI

COCO--PAPAAcc. bas.Acc. bas.

FIFI

Bad Debts Expense(Acc: 486000)

Accounts Receiv.

Example: Write-off of anuncollectible account

3000.-

3000.-

? Revaluation of material inventories in MM

? Price differences in purchasing

? Inventory differences

? Currency differences

X X

COCO--PAPA

Automatic PostingAssignment:Profitability Segment

FIFI

Value Flow

Automatic Account Assignment

Valuein CO-PA

Valuein SD

DifferenceCO-PA/SD

Reconciliation Report FI / SD and CO-PA

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