co over view and cca processes
TRANSCRIPT
-
8/4/2019 CO Over View and CCA processes
1/44
Controlling Module
Overview
-
8/4/2019 CO Over View and CCA processes
2/44
CCA - Cost Center Accounting
PC- Product Costing
OPA - Order Project Accounting
PA - Profitability Analysis
ABC- Activity Based CostingEC-PCA - Enterprise Controlling -
Profit center Accounting
EC-EIS - Enterprise Controlling -Executive Information system
SAP R/3 CO sub-modules
COCOEC-EC-
EISEISCO-CO-
OPAOPA
CO-CO-
CCACCACO-CO-
ABCABC
EC-EC-
PCAPCA
CO-CO-
PCPC
CO-CO-
PAPA
-
8/4/2019 CO Over View and CCA processes
3/44
Application-
independent
unit: Top
level
Physical
structure
Application-
independent
unit: Top
level
Physical
structure
Smallest Unit
in CO to
Capture the
Cost
Smallest Unit
in CO to
Capture the
Cost
This is
orgn.
controlling
unit.
This is
orgn.
controlling
unit.
Top level
logical unit
in SAP.
It is
superset
of all CC
, BA, CA etc.
Top level
logical unit
in SAP.
It is
superset
of all CC
, BA, CA etc.
Legal unit
for which
we need
to publish
annual
accounts
Legal unit
for which
we need
to publish
annual
accounts
Line of
Business:
e.g. Petro
& Polymer
Can take BS
& P&L
Not used
Line of
Business:
e.g. Petro
& Polymer
Can take BS
& P&L
Not used
FIFI COCOFinancial accountingFinancial accounting ControllingControlling
Client CompanyCompany BusinessBusiness ControllingControlling OperatingOperating CostCostcodecode areaarea areaarea concernconcern centercenter
Organizational Units in the SAP System
-
8/4/2019 CO Over View and CCA processes
4/44
Assignment of Company Code and Controllingarea
-
8/4/2019 CO Over View and CCA processes
5/44
CO System Objectives
Effective Overhead CostManagement
through
Detailed Planning ofOverhead Costs
Tracing actual costs to theirorigin - tight integration
Comprehensive analysis ofperformance (Plan vs Actual)
Support for budgetorycontrol
Support for Strategic CostManagement
through
Accurate product costinformation
Instant Profitability analysis ofbusiness segments (CO-PA)
Performance monitoring bysetting product cost standardsand measurement of actuals
Cost Estimation for new productsand orders
-
8/4/2019 CO Over View and CCA processes
6/44
Cost
Center
PA
Account AssignmentObjects
(Cost Objects)
Profitability
Segment
Internal
Order
CCA
OPA
(i.e. Cost Objects)
Production
Order/SalesOrder
PCBusiness
Process
ABC
-
8/4/2019 CO Over View and CCA processes
7/44
Cost Center Accounting - What does it do?
Cost Center Planning
Cost Allocation
Planned Activity Price
Actual Cost Booking
FI / TR
MM
PP
SD
Expense Variance Analysis / Activity
Prices
CO-PC
-
8/4/2019 CO Over View and CCA processes
8/44
Profit Center Accounting
Cost
Center GL Account
Equity Share
CapitalBank
Unrealized
Forex
Gain / Loss
Loans
Balance Sheet items
Cost
Sales
Order
Other
Income
Income
Profit Center
Profitability
ROCE
Ratios
AccessibilityControlAssets
Production
Cost Center
-
8/4/2019 CO Over View and CCA processes
9/44
Product Cost flow
Production /
ProcessOrder
Profitability
segments
Pro
duc
ts
Market
segments
Regio
ns
Sales
Order
Cost
Allocation
Input
Material
StockMaterial Issues
Co.
Area
Mfg.
Services
Mfg.
Opera-
tions
Business
Support
at Mfg.
Location
Mktg,
Sales
&
Distn
Business
Support
at HO
WIP
FG
Stock
Settlement
Revenues&
costs
of
sale
Assessment
Cost Allocation
-
8/4/2019 CO Over View and CCA processes
10/44
Profitability Analysis - An External View
10
Company Market
Billing DocumentSD
Profitability AnalysisCO-PA
Key Sales Figures:Revenues, Cost of Sales...
Market Segments:Customer, Product,
Product Group,Distribution Channel
CO-CO-
PAPA
SDSD
The goal of CO-PA is to determine the profitability of market segments:
-
8/4/2019 CO Over View and CCA processes
11/44
Integration with other Modules
11
Overhead Cost Controlling
Product CostControlling
Cost Center Acc.
OverheadOrder
Accounting
CostObject
CO
Profitabilitysegments
ActivityBased
Costing
ProfitabilityAnalysis
FI AA
FI MM PP
HR
HR
FI SD
SD
SD
MM
PP
PP
ProfitCenterAcc.
ProfitCenter
PrCtrPrCtr 1 1
PrCtrPrCtr 3 3
PrCtr 2
PrCtrPrCtr 4 4
PrCtrPrCtr 5 5
Cost&
RevenueElementAccounting
-
8/4/2019 CO Over View and CCA processes
12/44
What is Master Data in CCA
Cost element: Similar to a/c head in FI. Bank charges is
a cost element.
Cost Centers: POY-CP is a cost center.
Standard Hierarchy:Tree structure containing all thecost centers in a controlling area from the Controlling (CO)standpoint.
Statistical Key Figures: Its a basis of allocation. E.g.
NO of employees is the basis of allocation for Personnelcost.
-
8/4/2019 CO Over View and CCA processes
13/44
The Standard Hierarchy
13
-
8/4/2019 CO Over View and CCA processes
14/44
What is Master Data in CCA
Activity type: This is a unit of measuring the activity levelin Production or utility cost center, e.g. Spinning hours isan activity type. This is measured in terms of how manyhours the resources related to Spinning activity type run to
produce any product.
-
8/4/2019 CO Over View and CCA processes
15/44
Cost Center Cost Object
Activity Type
Activity types define functions or services performed by a cost center, and are used
to allocate that cost centers costs to other cost objects.
Not all cost centers have activities (outputs).
Activity types are frequently used in the allocation of overhead to production.
Allocation
Activity Types
15
-
8/4/2019 CO Over View and CCA processes
16/44
Planning Goals
Planning structures forthe companys future
Controlling businesstransactions
Monitor efficiency
Base for valuation of
companys activities
16
-
8/4/2019 CO Over View and CCA processes
17/44
Sales Forecast(Sales volumes or amounts)
(SD)
ProductionPlanning
(PP) PlannedActivities(Routing)
PP/PCA
Planned Capacity
(PP)Are we physically able toproduce?
MRPMaterials RequirementPlanning
(MM/PP)
Overhead/CostCenter
Planning
(CO-CCA))
Planned
ProductCost
(PC)
Profit Plan
(EC orPA)
Integrated Planning Cycle
17
-
8/4/2019 CO Over View and CCA processes
18/44
CCA PLANNING
Step 1:Cost element planning (cost center budget)
Step 2:
Activity planning (similar planning the cost center wisemachine hours)
Step 3:SKF planning (planning the basis of allocation on every
cost center)
-
8/4/2019 CO Over View and CCA processes
19/44
PLAN ACTIVITY PRICE CALCULATION
ACTIVITY PRICE: Definition:Activity Price is the per hour rate of the
activity being produced at the production / utility costcenter. For example the power unit rate
How do we arrive at this:
Take the input:Cost center budget
Allocate the Business support & manufacturing support cost
Take the plan activity output.
-
8/4/2019 CO Over View and CCA processes
20/44
COST ALLOCATION
Distribution: Cost distribution on the basis of pre-decided ratios. Forexample we shall distribute the Process common costs to process costcenters.
Assessment: Cost allocation on the basis of pre-decided ratios. Forexample we shall assess the accounts department cost to process
common cost centersActivity Allocation: Allocating the activity quantities to various
receivers. For example allocating the Power Units from Power costcenters to production cost centers.
Surcharge: In case the cost is rather insignificant, and the activity
definition and monitoring is not worth the effort, we may applysurcharge (i.e. fix percentage of production costs).
-
8/4/2019 CO Over View and CCA processes
21/44
Allocations: Cycles and Segments
Cycle
Segment
Segment
11
Segm
ent
Segm
ent
22
Segment
Segment
33
Sender Receiver
Cycle
Cost Center: Admin BuildingsCost Center: Admin Buildings
Allocation: 100% actual costsAllocation: 100% actual costs
Cost Center: EnergyCost Center: Energy
Allocation: 30% actual costsAllocation: 30% actual costs
Cost Center: EnergyCost Center: Energy
Allocation: 70% actual costsAllocation: 70% actual costs
Administration Cost CentersAdministration Cost Centers
Tracing factor: mTracing factor: m 22 floor spacefloor space
Administration Cost CentersAdministration Cost Centers
Tracing factor: mTracing factor: m 22 heated spaceheated space
Production Cost CentersProduction Cost CentersTracing factor:Tracing factor: Gas consumptionGas consumption
per meter readingper meter reading
21
-
8/4/2019 CO Over View and CCA processes
22/44
-
8/4/2019 CO Over View and CCA processes
23/44
PERIOD END PROCESSING IN CO
ONLINE FLOW OF ENTRIES IN CO FROM VARIOUSOTHER MODULES
REPOSTING OF COST
REPOSTING OF LINE ITEMSACTIVITY ALLOCATION
ACTUAL ALLOCATION CYCLES
ACTUAL ACTIVITY PRICE CALCULATION
CCA REPORTS
-
8/4/2019 CO Over View and CCA processes
24/44
CCA REPORTS
PLAN V/S ACTUAL CC COMPARISON
CC PLAN/ACTUAL LINE ITEMS
YEARLY PLAN / ACTUAL ACTIVITY RATES
UTILITY FIXED / VARIABLE COST REPORTSMONTHLY UTILITY QTY REPORTS
CC YEARLY / QUARTERLY COMPARISON REPORT
TARGET /ACTUAL COMPARISON REPORT
DISPLAY CC/CE/ACTIVITY TYPE
-
8/4/2019 CO Over View and CCA processes
25/44
Information System: Overview
25
-
8/4/2019 CO Over View and CCA processes
26/44
The Report Tree
User Settings
Planning Reports
Reports for
Variance Analysis
Comparison Reports
Other Report Groups
26
-
8/4/2019 CO Over View and CCA processes
27/44
Cost Centers: Actual / Plan / VarianceArea: Cost CentersArea: Statistical Key FiguresCost Center: VariancesPlanning overview
Cost elements /Cost centers
4110 4130Service cost centers
4210Shop floor area . . .
Actual
30,00070,000
100,000
Plan abs.
35,00060,00095,000
Plan var.
5,00010,000
5,000
Standard Reports
27
-
8/4/2019 CO Over View and CCA processes
28/44
Interactive Information System
400000 Material consum.Cost Elements Actual Cost Plan Cost Var.(abs.) Var.(%)
100,000.- 100,000.-
Line items 400000 100,000.- USD
FI DocumentFI Document 40
50
400000 Material consum.
113100 Bank
100,000.-
100,000.-
28
-
8/4/2019 CO Over View and CCA processes
29/44
Extract Management
CurrentExtract Archive
R/3R/3
Database
Database
Datasource
Report
Extract
Administration
29
-
8/4/2019 CO Over View and CCA processes
30/44
Profit Center Accounting
Overview
-
8/4/2019 CO Over View and CCA processes
31/44
EC-Profit Center Accounting
Profit Center Accounting: OverviewProfit Center Accounting: OverviewMaster DataMaster Data
Profit Center PlanningProfit Center Planning
Actual PostingsActual Postings
Information SystemInformation System
-
8/4/2019 CO Over View and CCA processes
32/44
Profit Center Accounting
-
8/4/2019 CO Over View and CCA processes
33/44
Profit Center Accounting
ObjectivesObjectives
Enable Division wise Accounting requirementsEnable Division wise Accounting requirements
ROCE of each Reliance plantROCE of each Reliance plant
Profitability Analysis of functional areasProfitability Analysis of functional areas
Analysis of Key Accounting RatiosAnalysis of Key Accounting Ratios
Profitability Reports & Performance AnalysisProfitability Reports & Performance Analysis
EC-PCA-Master Data
-
8/4/2019 CO Over View and CCA processes
34/44
EC-PCA-Master Data
Creating, Changing and Displaying a Profit CenterCreating, Changing and Displaying a Profit CenterStandard HierarchyStandard Hierarchy
Profit Center GroupsProfit Center Groups
Profit Center Accounting
-
8/4/2019 CO Over View and CCA processes
35/44
Profit Center Accounting
Codification Strategy of Profit CentersCodification Strategy of Profit Centers
5 digits code5 digits code
Intelligence built up in codingIntelligence built up in coding
First 2 digits for Product GroupFirst 2 digits for Product Group
Second 2 digits for LocationSecond 2 digits for Location
Last digit for PlantLast digit for Plant
EC-PCA-Maintaining Accounts
-
8/4/2019 CO Over View and CCA processes
36/44
EC PCA Maintaining Accounts
Revenue and Cost ElementsRevenue and Cost ElementsAccount GroupsAccount Groups
-
8/4/2019 CO Over View and CCA processes
37/44
EC-PCA-Assignments to Profit Centers - 1
MaterialsMaterialsCost CentersCost Centers
Internal OrdersInternal Orders
Production OrdersProduction Orders
EC-PCA-Assignments to Profit Centers - 2
-
8/4/2019 CO Over View and CCA processes
38/44
EC PCA Assignments to Profit Centers 2
Maintenance OrdersMaintenance OrdersProjects / WBSProjects / WBS
AssetsAssets
Sales OrdersSales Orders
Assignment Monitor (1KE4)Assignment Monitor (1KE4)
EC-PCA-Data Transfer Other Modules
-
8/4/2019 CO Over View and CCA processes
39/44
EC PCA Data Transfer Other Modules
From Financial AccountingFrom Financial AccountingFrom Sales and DistributionFrom Sales and Distribution
From Materials ManagementFrom Materials Management
Goods Movements Between Profit CentersGoods Movements Between Profit Centers
Transfer from ControllingTransfer from Controlling
Transfer from Investment Management /AssetTransfer from Investment Management /Asset
ManagementManagement
EC-PCA-Data Transfer Within PCA
-
8/4/2019 CO Over View and CCA processes
40/44
C C a a a s e C
Subsequent Analysis and Posting of Actual DataSubsequent Analysis and Posting of Actual DataPrerequisites for Transferring Actual Data
Creating Profit Center DocumentsCreating Profit Center Documents
Transferring/Creating Statistical Key FiguresTransferring/Creating Statistical Key Figures
EC-PCA-Periodic Activities
-
8/4/2019 CO Over View and CCA processes
41/44
Balance Sheet Items in Profit Center AccountingBalance Sheet Items in Profit Center Accounting
Carrying Balances ForwardCarrying Balances Forward
Assessment and DistributionAssessment and Distribution
Information System
-
8/4/2019 CO Over View and CCA processes
42/44
y
Executing reportsExecuting reports
OverviewOverview
Report Tree and Report ListReport Tree and Report List
Displaying line item reports
-
8/4/2019 CO Over View and CCA processes
43/44
p y g p
Actual Line Item ReportActual Line Item ReportPlan Line Item ReportPlan Line Item Report
Summary records and the master data indexSummary records and the master data index
Displaying Summary RecordsDisplaying Summary Records
-
8/4/2019 CO Over View and CCA processes
44/44
Open for Discussion