CO PA PowerPoint

Profitability AnalysisCO-PA

Course Objectives

Understand the functions in Profitability Analysis. Explain Profitability management in SAP. Understand CO-PA structures and master data. Identify the source of actual values. Understand planning. Use the CO-PA information system.

Module 1: Overview

Module 2: Profitability Management

Course Map

Table of contents

Module 5: Actual data flow

Module 3: Master Data

Module 4: Planning

Module 6: Information System

Profitability Analysis at A Grp

Profitability Analysis will enable A Grp to analyze the profitability of market segments according to the following characteristics: Products Customers Sales Districts (i.e. USA West,

USA East, Saudi Arabia etc.) Others

Product

Sales Distri

ct

Cu

sto

mer

How profitable are individual market segments?

Overhead Cost ControllingHow can we reduce our overhead?

Are the responsibility areas working efficiently?

How high are the organisational activity costs? Are they within their budgets?

How can we optimise our internal business processes?

ECECPCAPCA

Pro

fit Cen

ter A

cc

ou

ntin

g

How Profitable are

Individual areas ?

Overhead Cost Controlling

What costs occur within the organisation?COCO

CELCEL

COCOPAPA

COCOOMOM

Profitability Analysis

COCOPCPC Product

CostControlling

What are the

Manufacturing

Costs of a product?

CO Module Overview

Product CostProduct CostControllingControlling

Profitability AnalysisProfitability Analysis

COCO

StandardCost Estimate

RevenuesDiscounts

Cost Collector

Overhead Cost Overhead Cost

ControllingControlling

••

Cost CentersCost Centers•

Profit. segments

Cost and Revenue Element Accounting

Flow of actual values in Profitability Anal.

FIFI

COCOPAPACOCOPAPA

Product

SD

ML

Module 1: Overview


Course Map

Table of contents



Module 4: Planning


Aspects of Profitability Management

Revenue 2000

Discounts 100

COGS 230

Contr. Margin 1440

Revenue 2000

Salaries 468

Materials 230

Profit

DistributionProductionProcurement Sales

Advertising 250

Profitability Analysis By Market segment

(Market oriented)

Responsibility Accounting

(Company oriented)

Profit Centers

PCAPCA PAPA

Segments

External Market

Profitability

Terms used in Profitability Analysis

Accounting Methods Period Accounting Cost of Sales Accounting

Values Gross Sales Net Sales Variances

Ratios Economic Profit Contribution Margin

Methods of Determining Profits

Period accounting methodCost of Sales method

•Revenues•Sales deductions•Changes in stock•Capitalized internal services• Work in process

•Revenues•Sales deductions•Cost of sales

(incl. variances for period)

Total activitiesGross result

•Total costs:

Material costs

Personnel costs

Other costs

•Sales and distribution costs•Administrative costs•Research & Development

Result Result

Aspects of Profitability Management

CharacteristicsCO-PA

costing-based

EC-PCA

profit center

Enterprise

controlling

Aims of

profitability

accounting

Key figures

Calculation

of profits

Reconciliation

with FI

profit-related

key figures

posted and

imputed values

Sales and

profitability

controlling

period accounting

and cost-of sales

methods

cost-of-sales

method

profit-rel. key fig.

balance sheet fig.

posted values

Reporting Dimensions

CustomerRegionSales officeBusiness Unit

Revenue

Cost

Loss

Profit

Sales QuantitySales Revenue

Customer discountSales commissionDirect sales costs

Net revenueDirect material costsVariable production costs

Contribution margin IIndirect overheadFixed production costs

Contribution margin IIVariances

Contribution margin III

Operating profit

Product

Determine and analyze the profitability of market segments

Profitability Analysis by Market Segment

Module 1: Overview


Course Map

Table of contents



Module 4: Planning


Master Data – Currency of Op. Concern

Profitability Accounting(costing based)

COCOPAPACOCOPAPA

Operating Concern9100

CurrencyB0 = SAR

Master Data in Profitability Analysis

Cost ElementCost

ElementAccounting

Profitability Segment

ProfitabilityAnalysis

CharacteristicsValue Fields

Product (SBU)

Ethylene Glycol

Sales Distri

ct

SE Asia

Cu

sto

mer

IND

O R

AM

A S

YN

TH

ET

IS

Profitability Segments

Master Data in Profitability Analysis

Profitability Segment

Profitability Segment - object within Profitability Analysis to whichcosts and revenues are assigned. A profitability segment corresponds to a market segment. You can calculate the profitability of a profitability segment by setting off its sales revenues against its costs. A profitability segment in an operating concern is defined by a combination of characteristic values. Characteristics can be concepts that already exist in the R/3 System (customer, product, sales organization, and so on).

Categories of Characteristics (1)

Characteristics delivered by SAP

Fixed Characteristics

Predefined Characteristics

• Characteristics are valid in all clients

• Characteristics are available for all Operating Concerns

Categories of Characteristics (2)

Characteristics delivered by SAP

Characteristics created

by Customer

Fixed Characteristics

Predefined Characteristics

Characteristics copied from SAP Reference Tables

CustomCharacteristics

Categories of Value Fields

Value Fields delivered by SAP

Value Fields created

by Customer

Predefined Value Fields

Custom Value Fields

Segments

Module 1: Overview


Course Map

Table of contents



Module 4: Planning


CO-PA Planning Objectives

Plan Integration Plan Versions Creation of a sales plan using planning level and planning

packages Plan Data Transfer




Plan Integration

ProductionProductionLTP

Profit planningProfit planning – V2

ProductProduct

costingcosting

Cost of goods

manufactured

Activity price

Sales

volume

Activity quantities

Sales Sales

planningPlanningSOP

Cost centersCost centers

Profit planningProfit planning - V1




Settings for CO-PAGeneral Version Definition

Version

Plan

Actual

00 Version Locked

Currency type

Exchange Rate

Fiscal year dependentparameters in CO-OM

Integrated Planning

MP

Plan Version ‘0’ SABIC

1. Plan records are posted as line items from respective areas.

1

1. The currency type determines the currency or valuation view in which the amounts are to be displayed or planned.B0 - Operating Concern Currency

2

2. Controls the exchange rate type, i.e. Buying rate, selling rate or P – Standard translation for planning.

1P B0




Overview of Planning Framework

Overview of Planning Framework

Maintain Planning Level-Package-Set-Personalization Copy Sales Plan Upload of COPA Plan - Offline Planning Manual Profit Planning Valuation Planning Method Event Planning Method Period Distribution Planning Method Ratio Planning Method Planning Forecast Revaluation Planning Method


Plan Integration Creation of a sales plan using planning level and planning


Plan Data Transfer

COCOPAPACOCOPAPA

Microsoft ExcelSt

t

SOP

Quantities /Revenue

Module 1: Overview


Table of contents



Module 4: Planning


Course Map

Actual Values Overview

Flow of Actuals in Profitability Analysis Overview Flow from the Sales and Distribution (SD) Module

Flow from Billing Document

Flow from the FI/MM – direct postings General Ledger Posting MM Postings

Flow from the Product Costing Settlement of Production Variances to PA






Product CostProduct CostControllingControlling

Profitability AnalysisProfitability Analysis

COCO

StandardCost Estimate

RevenuesDiscounts

Overhead Cost Overhead Cost ControllingControlling

••

Cost CentersCost Centers

• Internal OrdersInternal Orders

Profit. segments

Cost and Revenue Element Accounting

Flow of actual values in Profitability Anal.

FIFI

COCOPAPACOCOPAPA

ProductCost Collector

SDSD

MM

Quantity Revenues

Sales deductions Cost of Goods Sold

Freight costsInventory re-valuation

Direct Posting from Direct Posting from FIFI

Source TransactionValue Field

Billing DocumentBilling Document

Sources of value fields






Business process

VVAALLU U

F F LLOOWW

4,975.00-

Cost of Goods Sold 462002

Inventory Inventory - Finished Product (FG)

119430

4,975.00

Goods Issue

MMMMMMMM

Flow from sales and distribution (1)

E

Stock

Change Stock

COCOPAPACOCOPAPA

FIFI

NO POSTING

Flow from sales and distribution (2)

Business process

VVAALLU U

F F LLOOWW

Sales/Billing

SDSD

Receivables…

10,000

Sales810000

10,000 -

E

COCOPAPACOCOPAPA

FIFI Cost of Goods Sold

StandardPrice

Product Cost

Estimate

+


Flow of Actuals in Profitability Accounting Overview Flow from the Sales and Distribution (SD) Module




Flow from FI/MM

VVAALLU U

F F LLOOWW

E

COCOPAPACOCOPAPA

FIFI

Flow from FI/MM

VVAALLU U

F F LLOOWW

Accr. GR/IR219914

15.00

Demurrage &Detention

484013

15.00 -

E

COCOPAPACOCOPAPA

FIFI


Flow of Actuals in Profitability Accounting Overview Flow from the Sales and Distribution (SD) Module


Flow from the FI/MM – direct postings General Ledger Postings MM Postings


Flow from CO-PC

Delivery

Goods Issuesof materials from stock

Confirmations/ activity allocation

De

live

ry

to s

toc

k

Warehouse

‘Production Order’

Plan costs Actual costsProduct Costing

Calculate variances

COCOPCPC

COCOPCPC

MMMM

...

...

Variances

FIFI

COCOPAPACOCOPAPA

+

Settlement

Flow from CO-PC

VarianceCategory

PA Assignmentlines

Value FieldCost Element Group

+

+

+

Module 1: Overview


Table of contents

Module 5: Planning




Course Map

Report Output

Drilldown List

Detail List

Course Summary

You should now: Have an understanding the functions in Profitability

Analysis. Understand CO-PA structures and master data. Identify the source of actual values. Understand planning. Use the CO-PA information system.

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