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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
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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
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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.
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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.
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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
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Contents TFIN22_2
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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
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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:
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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.
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Course Overview TFIN22_2
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.
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TFIN22_2 Course Overview
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
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Course Overview TFIN22_2
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
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TFIN22_2 Course Overview
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.
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Course Overview TFIN22_2
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.
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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
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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
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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:
• Describe the various organizational units
• Understand the basic concepts, characteristics and value fields, of an
operating concern
• Define an operating concern and its attributes
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.
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Unit 1: Structures TFIN22_2
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
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TFIN22_2 Lesson: Overview of Operating Concern
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
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Unit 1: Structures TFIN22_2
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.
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TFIN22_2 Lesson: Overview of Operating Concern
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.
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Unit 1: Structures TFIN22_2
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.
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TFIN22_2 Lesson: Overview of Operating Concern
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.
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Unit 1: Structures TFIN22_2
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.
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TFIN22_2 Lesson: Overview of Operating Concern
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:
Set up instructions:
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.
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Unit 1: Structures TFIN22_2
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.
IMG ! Controlling ! Profitability Analysis ! Structures ! Define
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
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TFIN22_2 Lesson: Overview of Operating Concern
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
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Unit 1: Structures TFIN22_2
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:
Set up instructions:
1. Create an operating concern named T001. Maintain the attributes and
mention the fiscal year variant and the various currencies that can be
displayed.
IMG ! Controlling ! Profitability Analysis ! Structures ! Define
Operating Concern ! Maintain Operating Concern
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TFIN22_2 Lesson: Overview of 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.
IMG ! Controlling ! Profitability Analysis ! Structures ! Define
Operating Concern ! Maintain Operating Concern
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.
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Unit 1: Structures TFIN22_2
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TFIN22_2 Lesson: Overview of Operating Concern
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
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Unit 1: Structures TFIN22_2
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
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TFIN22_2 Lesson: Overview of Operating Concern
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.
Continued on next page
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Unit 1: Structures TFIN22_2
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.
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TFIN22_2 Lesson: Overview of Operating Concern
Lesson Summary
You should now 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
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Unit 1: Structures TFIN22_2
Lesson:
16
Data Structures
Lesson Duration: 50 Minutes
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
After completing this lesson, you will be able to:
• Define data structures
• 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.
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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.
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Unit 1: Structures TFIN22_2
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)
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TFIN22_2 Lesson: Data Structures
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.
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Unit 1: Structures TFIN22_2
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,
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TFIN22_2 Lesson: Data Structures
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.
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Unit 1: Structures TFIN22_2
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:
Set up instructions:
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.
IMG ! Controlling ! Profitability Analysis ! Structures ! Define
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
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TFIN22_2 Lesson: Data Structures
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.
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Unit 1: Structures TFIN22_2
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
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TFIN22_2 Lesson: Data Structures
System Data
System:
Client:
User ID:
Password:
Set up instructions:
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.
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Unit 1: Structures TFIN22_2
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TFIN22_2 Lesson: Data Structures
25 Exercise 2: Data Structures
Exercise Duration: 15 Minutes
Exercise Objectives
After completing this exercise, you will be able to:
• 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?
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Unit 1: Structures TFIN22_2
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?
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TFIN22_2 Lesson: Data Structures
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?
a) IMG! Controlling ! Profitability Analysis ! Structures! Define
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.
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Unit 1: Structures TFIN22_2
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?
a) IMG! Controlling ! Profitability Analysis ! Structures! Define
Operating Concern! Maintain Characteristics
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?
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TFIN22_2 Lesson: Data Structures
Why and with what consequences?
a) IMG! Controlling ! Profitability Analysis ! Structures! Define
Operating Concern! Maintain Characteristics
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.
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Unit 1: Structures TFIN22_2
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TFIN22_2 Lesson: Data Structures
31 Exercise 3: Maintain the Operating
ConcernExercise Duration: 15 Minutes
Exercise Objectives
After completing this exercise, you will be able to:
• 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?
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Unit 1: Structures TFIN22_2
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?
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TFIN22_2 Lesson: Data Structures
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?
IMG ! Controlling ! Profitability Analysis ! Structures ! Define
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
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Unit 1: Structures TFIN22_2
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?
IMG ! Controlling ! Profitability Analysis ! Structures ! Define
Operating Concern ! Maintain 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
available in the operating concern:
Sales Order Quantity, Scrap, Marketing Projects
Which of these value fields are configured for the operating concern?
a) Your product manager has requested that the following value fields are
available in the operating concern:
Ordered Quantity, Scrap, Marketing Activities, and Annual Rebates.
Which of these value fields are configured for the operating concern?
IMG ! Controlling ! Profitability Analysis ! Structures ! Define
Operating Concern ! Maintain Operating Concern
Choose Display and select the Value Fields tab on the Data Structuretab.
Sales Order Quantity, Scrap, and Marketing Activities.
Continued on next page
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TFIN22_2 Lesson: Data Structures
Task 3:
1. Are own profitability segments formed on the “IDEA” operating concern for
the characteristics ORDER or SALES ORDER ITEM?
a) IMG! Controlling ! Profitability Analysis ! Structures! Define
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?
IMG ! Controlling ! Profitability Analysis ! Structures ! Define
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.
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Unit 1: Structures TFIN22_2
Lesson Summary
You should now be able to:• Define data structures
• Identify transaction data structures
• Describe the CO-PA database structures and the operating concern templates
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TFIN22_2 Unit Summary
Unit Summary
You should now 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
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Unit Summary TFIN22_2
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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
.
Fill in the blanks to complete the sentence.
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
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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.
Fill in the blanks to complete the sentence.
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 .
Fill in the blanks to complete the sentence.
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.
Determine whether this statement is true or false.
! True
! False
12. State the advantages of operating concern templates.
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TFIN22_2 Test Your Knowledge
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.
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Test Your Knowledge TFIN22_2
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.
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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
After completing this unit, you will be able to:
• 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
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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
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TFIN22_2 Lesson: Introduction to Characteristic Derivation and Valuation
Lesson:
44
Introduction to Characteristic Derivation and Valuation
Lesson Duration: 30 Minutes
Lesson Overview
This lesson helps you to understand the concept of characteristic derivation. It
also describes the concept of valuation.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the derivation concepts
• Explain the valuation concepts
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
The 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.
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
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Unit 2: Master Data TFIN22_2
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.
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TFIN22_2 Lesson: Introduction to Characteristic Derivation and Valuation
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.
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Unit 2: Master Data TFIN22_2
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.
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TFIN22_2 Lesson: Introduction to Characteristic Derivation and Valuation
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.
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Unit 2: Master Data TFIN22_2
Lesson Summary
You should now be able to:• Explain the derivation concepts
• Explain the valuation concepts
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TFIN22_2 Lesson: Characteristic Derivation
Lesson:
48
Characteristic Derivation
Lesson Duration: 40 Minutes
Lesson Overview
This lesson helps you to understand the derivation strategy. In addition, it explains
how to evaluate derivation techniques.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the derivation strategy
• Evaluate derivation techniques
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
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 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
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Unit 2: Master Data TFIN22_2
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
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TFIN22_2 Lesson: Characteristic Derivation
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:
Set up instructions:
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
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Unit 2: Master Data TFIN22_2
System Data
System:
Client:
User ID:
Password:
Set up instructions:
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.
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TFIN22_2 Lesson: Characteristic Derivation
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:
IMG ! Controlling ! Profitability Analysis ! Master Data !
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
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Unit 2: Master Data TFIN22_2
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.
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TFIN22_2 Lesson: Characteristic Derivation
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.
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Unit 2: Master Data TFIN22_2
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.
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TFIN22_2 Lesson: Characteristic Derivation
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.
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Unit 2: Master Data TFIN22_2
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.
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TFIN22_2 Lesson: Characteristic Derivation
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.
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Unit 2: Master Data TFIN22_2
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:
Set up instructions:
1. We have set up an example for “Move”. Show the custom step: Ship-to party
IMG ! Controlling ! Profitability Analysis ! Master Data !
Characteristic values ! Characteristic Derivation: Display.
Customizing Monitor:
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TFIN22_2 Lesson: Characteristic Derivation
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.
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Unit 2: Master Data TFIN22_2
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TFIN22_2 Lesson: Characteristic Derivation
57 Exercise 4: Derivation
Exercise Duration: 20 Minutes
Exercise Objectives
After completing this exercise, you will be able to:
• 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?
Continued on next page
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Unit 2: Master Data TFIN22_2
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?
Continued on next page
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TFIN22_2 Lesson: Characteristic Derivation
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?
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Unit 2: Master Data TFIN22_2
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:
Strategic Business Unit:
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
Strategic Business Unit:
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
Continued on next page
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TFIN22_2 Lesson: Characteristic Derivation
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?
In which application do the source fields originate?
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
In which application do the source fields originate?
CO-PA
3. Strategic Business Unit is a user-defined field in CO-PA.
Continued on next page
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Unit 2: Master Data TFIN22_2
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?
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
the rule used to determine the CHEMFOOD strategic business unit?
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
characteristic. What is the table of origin for this characteristic?
Why are there no rule values for this characteristic?
a) Display the table lookup for the Customer Classification from Customer
characteristic. What is the table of origin for this characteristic?
Select Table Lookup for customer classification from Customer and
then select : KNA1
Why are there no rule values for this characteristic?
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?
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?
Continued on next page
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TFIN22_2 Lesson: Characteristic Derivation
What is the purpose of this particular 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
An attribute has been maintained for this characteristic, to apply the
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.
What is the purpose of this particular step?
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.
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?
Continued on next page
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Unit 2: Master Data TFIN22_2
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
Point of valuation: 01
Choose Continue.
Customer: T-CO05A##
Product: P-100
Company Code: 1000
Plant: 1000
Sales Org.: 1000
Distribution Channel: 10
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.
Continued on next page
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TFIN22_2 Lesson: Characteristic Derivation
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
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Unit 2: Master Data TFIN22_2
Lesson Summary
You should now be able to:• Explain the derivation strategy
• Evaluate derivation techniques
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TFIN22_2 Lesson: Valuation
Lesson:
67
Valuation
Lesson Duration: 50 Minutes
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
After completing this lesson, you will be able to:
• Understand valuation using the product cost information
• Outline valuation using a CO-PA costing sheet
• Use the Customizing Monitor to perform valuation analysis
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
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Unit 2: Master Data TFIN22_2
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,
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 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
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TFIN22_2 Lesson: Valuation
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
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Unit 2: Master Data TFIN22_2
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.
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TFIN22_2 Lesson: Valuation
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
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Unit 2: Master Data TFIN22_2
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.
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TFIN22_2 Lesson: Valuation
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.
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Unit 2: Master Data TFIN22_2
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.
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TFIN22_2 Lesson: Valuation
Figure 30: Valuation using Product Costing: Customizing (2)
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.
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Unit 2: Master Data TFIN22_2
Figure 31: Valuation using Product Costing: Customizing (3)
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.
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TFIN22_2 Lesson: Valuation
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.
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Unit 2: Master Data TFIN22_2
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.
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TFIN22_2 Lesson: Valuation
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:
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Unit 2: Master Data TFIN22_2
Password:
Set up instructions:
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.
Accounting ! Controlling ! Profitability Analysis ! Actual Postings
! Create Line Item
Posting date: Today’s date
Record type: F
Customer: 1000 1000
Sales organization: 1000 1000
Distribution channel: 10 10
Company code:1000 1000
Product: P-100
Plant:
Posting date: Today’s date
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
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TFIN22_2 Lesson: Valuation
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.
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Unit 2: Master Data TFIN22_2
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:
Set up instructions:
1. Create a line item in Profitability Analysis:
Posting date: Today’s date
Record type: F
Customer:
Sales organization:
Distribution channel:
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”.
Accounting ! Controlling ! Profitability Analysis ! Actual Postings
! 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
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TFIN22_2 Lesson: Valuation
Value field assignment
IMG ! Controlling ! Profitability Analysis ! Master Data ! Valuation
! 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:
Set up instructions:
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.
IMG ! Controlling ! Profitability Analysis ! Master Data ! Valuation
! Define and Assign Valuation Strategy
Display the assignment of the valuation strategy, 001, and explain the point
of valuation and the record type.
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Unit 2: Master Data TFIN22_2
IMG ! Controlling ! Profitability Analysis ! Master Data ! Valuation
! Define and Assign Valuation Strategy
Demonstration: Periodic Valuation
Purpose
To demonstrate the steps to perform periodic valuation
System Data
System:
Client:User ID:
Password:
Set up instructions:
1. Show the periodic valuation function.
Accounting ! Controlling ! Profitability Analysis ! Actual Postings
! Periodic Adjustments ! Periodic Valuation
Customizing Monitor Valuation Analysis
Figure 35: Customizing Monitor Valuation Analysis
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TFIN22_2 Lesson: Valuation
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.
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Unit 2: Master Data TFIN22_2
Demonstration: Customizing Monitor
Purpose
To demonstrate the steps to use a Customizing Monitor
System Data
System:
Client:
User ID:
Password:
Set up instructions:
1. IMG ! Controlling ! Profitability Analysis ! Tools ! Analysis !Customizing Monitor ! Valuation Analysis
Point of valuation: 01
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.
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TFIN22_2 Lesson: Valuation
81 Exercise 5: Valuation
Exercise Duration: 10 Minutes
Exercise Objectives
After completing this exercise, you will be able to:
• 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?
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Unit 2: Master Data TFIN22_2
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.
Posting Date: Today’s date
Record Type: F
Point of Valuation 01
Customer: T-CO05A##
Sales Org.: 1000
Distribution Channel: 10
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.
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TFIN22_2 Lesson: Valuation
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.
Save the line item and write down the document number.
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.
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Unit 2: Master Data TFIN22_2
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?
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TFIN22_2 Lesson: Valuation
Field Name or Data Type Values
Point of Valuation 03
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:
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Unit 2: Master Data TFIN22_2
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?
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 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?
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TFIN22_2 Lesson: Valuation
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)
For which period does the system access the material 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?
IMG: Controlling ! Profitability Analysis ! Master Data !
Valuation ! Set Up Valuation Using Material Cost Estimate !
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.
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Unit 2: Master Data TFIN22_2
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
Field Name or Data Type Values
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?
IMG: Controlling ! Profitability Analysis ! Master Data !
Valuation ! Set Up Valuation Using Material Cost Estimate !
Assign Value Fields
Use the cost component layout 01.
Cost component 10 (raw materials) is assigned to value field VV150
(material input).
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TFIN22_2 Lesson: Valuation
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.
Posting Date: Today’s date
Record Type: F
Point of Valuation 01
Customer: T-CO05A##
Sales Org.: 1000
Distribution Channel: 10
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.
Field Name or Data Type Values
Posting Date Today’s date
Record Type F
Select Continue: Tab “Characteristics”
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Unit 2: Master Data TFIN22_2
Field Name or Data Type Values
Customer T-CO05A##
Product P-100
Distribution Channel 10
Plant 1000
Sales Organization 1000
Company Code 1000
Select the Value Fields tab.
Field Name or Data Type Values
Invoiced Quantity 100
Revenue 100000
Select the Origin Data tab.
Field Name or Data Type Values
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?
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.
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TFIN22_2 Lesson: Valuation
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.
Save the line item and write down the document number.
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)?
IMG: Controlling ! Profitability Analysis ! Master Data !
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.
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Unit 2: Master Data TFIN22_2
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?
IMG: Controlling ! Profitability Analysis ! Master Data !
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.
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TFIN22_2 Lesson: Valuation
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.
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Unit 2: Master Data TFIN22_2
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?
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TFIN22_2 Lesson: Valuation
Field Name or Data Type Values
Point of Valuation 03
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?
Field Name or Data Type Values
Point of Valuation 03
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.
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Unit 2: Master Data TFIN22_2
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 .
Field Name or Data Type Values
Characteristic WWSBU
Client The current client
Choose Execute and then Information System ! Reports !
Costing-Based
Reporting: IDES-300, IDES-310 – IDES-314
(may vary)
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TFIN22_2 Lesson: Valuation
Lesson Summary
You should now be able to:• Understand valuation using the product cost information
• Outline valuation using a CO-PA costing sheet
• Use the Customizing Monitor to perform valuation analysis
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Unit Summary TFIN22_2
Unit Summary
You should now be able to:
• 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
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TFIN22_2 Test Your Knowledge
99Test Your Knowledge
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.
Fill in the blanks to complete the sentence.
4. What is a derivation strategy?
5. A consists of a number of different
steps, which derive different characteristic values.
Fill in the blanks to complete the sentence.
6. Characteristic derivation signifies the process to determine the characteristic
values for all CO-PA characteristics.
Determine whether this statement is true or false.
! True
! False
7. What is a table lookup?
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Test Your Knowledge TFIN22_2
8. The system automatically creates a standard derivation strategy for each
operating concern.
Determine whether this statement is true or false.
! 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 .
Fill in the blanks to complete the sentence.
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.
Fill in the blanks to complete the sentence.
13. What do costing sheets consist of?
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TFIN22_2 Test Your Knowledge
14. The value field analysis function enables you to analyze all the flows of
actual data to Profitability Analysis.
Determine whether this statement is true or false.
! True
! False
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Test Your Knowledge TFIN22_2
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
values for all CO-PA characteristics.
Answer: True
Characteristic derivation signifies the process to determine characteristic
values for all CO-PA characteristics.
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.
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TFIN22_2 Test Your Knowledge
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.
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Test Your Knowledge TFIN22_2
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.
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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
After completing this unit, you will be able to:
• 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
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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
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TFIN22_2 Lesson: Flow of Actual Data
Lesson:
106
Flow of Actual Data
Lesson Duration: 30 Minutes
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
After completing this lesson, you will be able to:
• Explain the flow of actual data in CO-PA
• List the sources of value fields
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
The management of your company wants to implement a profitability accounting
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
system. You then will be responsible to implement the selected applications.
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
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Unit 3: Actual Data TFIN22_2
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
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TFIN22_2 Lesson: Flow of Actual Data
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.
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Unit 3: Actual Data TFIN22_2
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:
Set up instructions:
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.
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TFIN22_2 Lesson: Flow of Actual Data
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.
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Unit 3: Actual Data TFIN22_2
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.
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TFIN22_2 Lesson: Flow of Actual Data
Lesson Summary
You should now be able to:• Explain the flow of actual data in CO-PA
• List the sources of value fields
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Unit 3: Actual Data TFIN22_2
Lesson:
111
Integration with Sales Order Management
Lesson Duration: 50 Minutes
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
After completing this lesson, you will be able to:
• Understand the data flow from sales order management to CO-PA
• Outline the concept of a condition type
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
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,
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 for implementing the
selected applications.
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.
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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.
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Unit 3: Actual Data TFIN22_2
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.
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TFIN22_2 Lesson: Integration with Sales Order Management
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.
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Unit 3: Actual Data TFIN22_2
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.
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TFIN22_2 Lesson: Integration with Sales Order Management
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.
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Unit 3: Actual Data TFIN22_2
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:
Set up instructions:
1. Create a sales order:
Order Type: OR
Sales organization:
Distribution channel:
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TFIN22_2 Lesson: Integration with Sales Order Management
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 .
Logistics ! Sales and Distribution ! Sales ! Order ! Subsequent
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.
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Unit 3: Actual Data TFIN22_2
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
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TFIN22_2 Lesson: Integration with Sales Order Management
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.
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Unit 3: Actual Data TFIN22_2
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.
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TFIN22_2 Lesson: Integration with Sales Order Management
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.
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Unit 3: Actual Data TFIN22_2
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.
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TFIN22_2 Lesson: Integration with Sales Order Management
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.
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Unit 3: Actual Data TFIN22_2
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.
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TFIN22_2 Lesson: Integration with Sales Order Management
125 Exercise 6: Sales Order Processing
Exercise Duration: 15 Minutes
Exercise Objectives
After completing this exercise, you will be able to:
• 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
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Unit 3: Actual Data TFIN22_2
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?
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TFIN22_2 Lesson: Integration with Sales Order Management
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
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Unit 3: Actual Data TFIN22_2
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:
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TFIN22_2 Lesson: Integration with Sales Order Management
What value is entered in the Revenue field?
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).
What value is entered in the Revenue field?
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.
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Unit 3: Actual Data TFIN22_2
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.
Logistics ! Sales and Distribution ! Sales ! Order ! Subsequent
Functions ! Outbound Delivery.
Field Name or Data Type Values
Shipping Point 1000
Selection Date Today’s date + 1 monthOrder Your order number
Choose Enter
Field Name or Data Type Values
Adopt Pick Quantity 1
7. Use Subsequent Functions again to create the billing document using the
document number from the previous step.
Billing document number:
a) Use Subsequent Functions again to create the billing document using
the document number from the previous step.
Logistics ! Sales and Distribution ! Sales ! Order ! Subsequent
Functions ! Billing Document .
Your delivery number appears on the screen. To create the billing
document, select Save.
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?
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TFIN22_2 Lesson: Integration with Sales Order Management
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
customer and the product, P-100, when displaying line items.
Accounting ! Controlling ! Profitability Analysis ! Information
System ! Display Line Item List ! Actual
What is the total value of revenue? $2,600.00
Why do two lines appear for the line item you have displayed?
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
Why do two lines appear for the line item you have displayed?
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
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Unit 3: Actual Data TFIN22_2
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TFIN22_2 Lesson: Integration with Sales Order Management
133 Exercise 7: Value Flows between Sales
Order Management and CO-PAExercise Duration: 15 Minutes
Exercise Objectives
After completing this exercise, you will be able to:
• 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 .
Field Name or Data Type Values
Company Code 1000
Currency Type 00
Billing No. of billing document for your
sales order
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Unit 3: Actual Data TFIN22_2
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?
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TFIN22_2 Lesson: Integration with Sales Order Management
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 .
Field Name or Data Type Values
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 Accountingand CO-PA?
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Unit 3: Actual Data TFIN22_2
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
Field Name or Data Type Values
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?
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.
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TFIN22_2 Lesson: Integration with Sales Order Management
Lesson Summary
You should now be able to:• Understand the data flow from sales order management to CO-PA
• Outline the concept of a condition type
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Unit 3: Actual Data TFIN22_2
Lesson:
138
Transfer of Overhead
Lesson Duration: 50 Minutes
Lesson Overview
This lesson helps you understand the transfer and allocation of costs. It also
explains settlement of orders.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the transfer and allocation of costs
• Explain the settlement of orders
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.
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TFIN22_2 Lesson: Transfer of Overhead
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,
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 for implementing the
selected applications.
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.
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Unit 3: Actual Data TFIN22_2
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
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TFIN22_2 Lesson: Transfer of Overhead
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.
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Unit 3: Actual Data TFIN22_2
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.
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TFIN22_2 Lesson: Transfer of Overhead
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.
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Unit 3: Actual Data TFIN22_2
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.
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TFIN22_2 Lesson: Transfer of Overhead
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:
Set up instructions:
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
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Unit 3: Actual Data TFIN22_2
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.
Accounting ! Controlling ! Profitability Analysis ! Information System
! Display Line Item List .
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TFIN22_2 Lesson: Transfer of Overhead
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
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Unit 3: Actual Data TFIN22_2
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.
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TFIN22_2 Lesson: Transfer of Overhead
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.
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Unit 3: Actual Data TFIN22_2
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.
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TFIN22_2 Lesson: Transfer of Overhead
Demonstration: Settling Orders
Purpose
To demonstrate the steps to settle orders
System Data
System:
Client:
User ID:
Password:
Set up instructions:
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:
Distribution channel:
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.
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Unit 3: Actual Data TFIN22_2
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.
Accounting ! Controlling ! Profitability Analysis ! Information System
! 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 .
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TFIN22_2 Lesson: Transfer of Overhead
147 Exercise 8: Cost Center Assessment
Exercise Duration: 10 Minutes
Exercise Objectives
After completing this exercise, you will be able to:
• 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.
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Unit 3: Actual Data TFIN22_2
Field Name or Data Type Values
Sender Selection Type 1 (unsplit costs)
CO Area 1000
Tracing factor 1 (costing-based CO-PA)
Attach Segment 1.
Field Name or Data Type Values
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?
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TFIN22_2 Lesson: Transfer of Overhead
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
equally between the two products.
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:
Field Name or Data Type Values
Vendor 1000
Invoice Date Today’s date
Posting Date Today’s date
Amount (due to vendor) 10,000
Account Number 417000
D/C Debit
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Unit 3: Actual Data TFIN22_2
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.
Field Name or Data Type Values
Sender Selection Type 1 (unsplit costs)
CO Area 1000
Tracing factor 1 (costing-based CO-PA)
Attach Segment 1.
Field Name or Data Type ValuesSegment 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.
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
equally between the two products.
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.
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TFIN22_2 Lesson: Transfer of Overhead
Accounting ! Controlling ! Profitability Analysis ! Actual Postings
! Period End Closing ! Transfer Cost Center Costs/Process Costs!
Indirect Activity Allocation: Extras! Cycle! Create
Field Name or Data Type Values
Cycle Name CYC-##
Start Date 1/1/XXXX
Enter:
Field Name or Data Type Values
Sender Selection Type 1 (unsplit costs)
CO Area 1000
Tracing Factor 1 (costing-based CO-PA)
Attach Segment 1.
Select: Attach Segment: Segment Header
Field Name or Data Type Values
Segment Number/Name 1
Assessment Cost Element 692000
Value Field VV380
Sender Values Posted Amountsr
Share in % 100
Rule for Receiver Tracing Factor Fixed percentages
Choose Sender/Receiver.
Field Name or Data Type Values
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.
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Unit 3: Actual Data TFIN22_2
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?
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
Field Name or Data Type Values
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).
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TFIN22_2 Lesson: Transfer of Overhead
153 Exercise 9: Internal Orders
Exercise Duration: 15 Minutes
Exercise Objectives
After completing this exercise, you will be able to:
• 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
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Unit 3: Actual Data TFIN22_2
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?
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TFIN22_2 Lesson: Transfer of Overhead
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.
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Unit 3: Actual Data TFIN22_2
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:
Field Name or Data Type Values
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
All costs are exempt from tax, tax code V0. These costs have been paid
from bank account, 113100.
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TFIN22_2 Lesson: Transfer of Overhead
Financial Accounting document number:
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:
All costs are exempt from tax, tax code V0. These costs have been paid
from the bank account, 113100.
Accounting ! Financial Accounting ! General Ledger ! Posting
! Enter G/L Account Document
Header
Field Name or Data Type Values
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:
Field Name or Data Type Values
G/L Account 113100
D/C Credit
Amount 1000
Post your document.
Financial Accounting document number:
3. In the CO internal order application, process the internal order settlement for
the current period to Profitability Analysis.
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Unit 3: Actual Data TFIN22_2
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:
Field Name or Data Type Values
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.
Which value fields were populated? Why?
a) Accounting ! Controlling ! Profitability Analysis! Information
System! Display Line Items! Actual:
Field Name or Data Type Values
Record Type C
Period/Year Current
Entered by Your user ID
Which value fields were populated? Why?
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?
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TFIN22_2 Lesson: Transfer of Overhead
Which PA transfer structure is linked to this 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.
Which PA transfer structure is linked to this settlement profile?
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
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Unit 3: Actual Data TFIN22_2
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TFIN22_2 Lesson: Transfer of Overhead
161 Exercise 10: Activity Allocation
Exercise Duration: 10 Minutes
Exercise Objectives
After completing this exercise, you will be able to:
• 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.
Continued on next page
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Unit 3: Actual Data TFIN22_2
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 record type was used to post the line item?
Which value field has been debited with the activity allocation? Why?
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TFIN22_2 Lesson: Transfer of Overhead
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.
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.
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.
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.
Accounting ! Controlling ! Cost Center Accounting ! Master Data
! Activity Type! Individual Processing ! Create:
Save the activity type.
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 plan version, 0.
The development department plans to spend 1200 hours R&D time on blue
bicycles.
Continued on next page
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Unit 3: Actual Data TFIN22_2
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 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.
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:
Continued on next page
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TFIN22_2 Lesson: Transfer of Overhead
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.
Which record type was used to post the line item?
Continued on next page
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Unit 3: Actual Data TFIN22_2
Which value field has been debited with the activity allocation? Why?
a) Display the line items you have created during the allocation in CO-PA.
Which record type was used to post the line item?
Accounting ! Controlling ! Profitability Analysis ! Information
System ! Display Line Items ! Actual
Record Type: D
Period/Year : Current
Entered by : Your user ID
Product: P-101
Which value field has been debited with the activity allocation? Why?
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.
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TFIN22_2 Lesson: Transfer of Overhead
Lesson Summary
You should now be able to:• Explain the transfer and allocation of costs
• Explain the settlement of orders
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Unit Summary TFIN22_2
Unit Summary
You should now be able to:
• 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
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TFIN22_2 Test Your Knowledge
169Test Your Knowledge
1. and discounts are transferred to profitability segments in
Profitability Analysis at the point of billing in Sales Order Management.
Fill in the blanks to complete the sentence.
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.
Determine whether this statement is true or false.
! True
! False
4. in the costing-based CO-PA contain the amounts
and quantities on which you want to report.
Fill in the blanks to complete the sentence.
5. The central document in SD is the .
Fill in the blanks to complete the sentence.
6. What is a condition type?
7. A business transaction is normally concluded in sales order managementwith the .
Fill in the blanks to complete the sentence.
8. The condition type, transfers the COGS posted at the time of
goods issue to CO-PA.
Fill in the blanks to complete the sentence.
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Test Your Knowledge TFIN22_2
9. You can transfer the overhead costs from Cost Center Accounting either on
an activity-allocation or a basis.
Fill in the blanks to complete the sentence.
10. What all can you settle in SAP R/3?
11. The application component
provides an alternative form of overhead control.
Fill in the blanks to complete the sentence.
12. In , costs are settled to the
settlement cost element specified in the settlement structure.
Fill in the blanks to complete the sentence.
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TFIN22_2 Test Your Knowledge
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,
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Test Your Knowledge TFIN22_2
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
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TFIN22_2 Course Summary
Course Summary
You should now 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
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Course Summary TFIN22_2
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Appendix 1Appendix
Figure 60: Appendix
Figure 61: Master Data : Additional Topics
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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.
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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)
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Appendix 1: Appendix TFIN22_2
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”).
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TFIN22_2 Appendix 1: Appendix
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
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Appendix 1: Appendix TFIN22_2
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).
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TFIN22_2 Appendix 1: Appendix
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.
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Appendix 1: Appendix TFIN22_2
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.
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TFIN22_2 Appendix 1: Appendix
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.
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Appendix 1: Appendix TFIN22_2
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
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TFIN22_2 Appendix 1: Appendix
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.
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Appendix 1: Appendix TFIN22_2
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.
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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.
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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.
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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.
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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
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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.)
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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)
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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)
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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.
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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
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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
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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
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Index TFIN22_2
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