CO-PA Quick Tips- Implementation and Usage

Quick Background

Implementation Tips

Usage Tips in Production Environment

Reporting Tips

FYI

CO-PA Quick Tips Topics

CO-PA Quick Background

CO-PA Quick Tips Topics

CO-PA Quick Background

SAP AG

R

Organizational Structure

Profit Center(master data)

Profitability Segment(master data)

A AA

Operating Concern

Controlling Area(s)

Company Code

Salesorganization

Focus on Markets

Focus on Controlling

Focus on External Accounting

Focus on Sales

Plant Focus on Manufaturing

CO-PA Quick Background

SAP AG

R

Data Flow in Profitability Analysis

FIFI

FinancialAccounting

CO-CO-OMOM

PPPP

Production

CO-CO-PCPC

OverheadManagement

Sales

SDSD

ProductCosting

CO-CO-PAPA

ProfitabilityAnalysis

Assessment

Settlement

Billing Doc

Cost of Goods Sold

Activity Allocation

Order Settlement: Production Variances

Direct Postings from Financial Accounting

CO-PA Quick Background

SAP AG

R

CO-PA Segment Criteria• Up to 50 additional criteria can also be selected• Business segments consist of combinations of characteristics

Product

Customer

Company Code

Billing Type

Business Area

Controlling Area

Toys

Sales Organization

Distribution Channel

Plant

Example: Division = 00Region = SouthProduct Group = Air CylindersState = Texas

CO-PA Quick BackgroundReporting Sources

CO-PA

SD

GL/PCA

Gross Profitability / P&L by PA Segment

Sales Information System

Statutory Reporting: P&L and Balance Sheet by Company or Business Units

CO-PA Quick Background

SAP AG

R

SD-SD-SISSIS

EC-EC-EISEIS

CO-CO-PAPA EC-EC-

PCAPCA

Evaluationof profits

FI-FI-SLSL

Profitability Reporting Options in R/3

account- based

costing- based

Profit centers

PrCtrPrCtr 1 1

PrCtrPrCtr 3 3

PrCtr 2

PrCtrPrCtr 4 4

PrCtrPrCtr 5 5

Productgroup

Distr. channel

Region

Profit. segments

SAP AG

R

Costing Based

Value FieldRevenue 1,000,000Sales Deductions 100,000

--------------Net Revenue 900,000Variable Mat. Costs 400,000Variable Prod. Costs 190,000Production Variances 10,000

--------------Contribution Margin 1 300,000Material Overhead 50,000Production Overhead 50,000

--------------Contribution Margin 2 200,000Res & Development 10,000Marketing Costs 50,000Admininstrative Costs 40,000

--------------Contribution Margin 3 100,000

Account Based

Cost/Revenue Elements800000 Revenue 1,000,000808000 Sales Deductions 100,000

--------------Net Revenue 900,000893000 Cost of Sales 690,000231000 Price Difference Acct. 10,000

651000 R & D Costs 10,000671000 Marketing Costs 50,000655000 Admin. Costs 40,000

--------------Operating Profit 100,000

Types of Profitability Analysis

CO-PA Quick Background

CO-PA Implementation Tips

CO-PA Quick Tips Topics

Operating Concern Industry Templates

CO-PA Implementation Tips

Expanded Info Structure for Characteristics in 4.6c

CO-PA Implementation Tips

Warranty Structure in DI-AIndustry Solution

• Design of Master Data Structure must be in place before starting setup in DEV

• Decide on Characteristics and Value Fields- Characteristics have a max limit- Deleting characteristics is major issue- Build Operating Concern prototype in Sandbox client first- Obtain signoff and begin work in DEV

CO-PA Implementation Tips

• Activate Operating Concern for BOTH Costing based and Account Based PA

• Keep number of PA segments to a minimum - Do not activate Sales Order in PA Segment

• Value Fields mapping to Condition Types- Watch out for Transfer Sign (+/-)- Use Transfer Sign on Rebate Condition

types that can have ‘+’ or ‘-’ values

CO-PA Implementation Tips

• Use Characteristic Derivation rules

- Characteristic derivation refers to the process of determining characteristic values for each COPA transaction

• Let’s see an example of Derivation …

CO-PA Implementation Tips

CO-PA Implementation Tips

• Derivation Rule for Sales Office (KEDR)

• Identify reconciling items between Costing based CO-PA and FI/PCA up front – so no surprises in production environment

Example: There is a lag time between shipping and billing, especially at month end. You accrue outbound freight in FI at the time of shipment/delivery. However, you want to accrue freight in CO-PA at billing since that’s when the data flows into CO-PA from SD. Thisfreight accrual amount is a reconciling item!

CO-PA Implementation Tips

• Transport of CO-PA Configuration and Master Data

-To manage CO-PA properly during both the development and production phases of a project, it is necessary to understand and to be able to successfully manage the movement of CO-PA master data and configuration pieces between different environments (SAP instances and clients)

CO-PA Implementation Tips

Usage Tips

CO-PA Quick Tips Topics

• Activate Operating Concern for BOTH Costing based and Account Based PA

• Business Users want CO-PA reconciled with GL/PCA and SD

• Use Account based reports for reconciling with GL/PCA

• Look for items shipped but not billed for the month

CO-PA Usage Tips

• Make sure Quantity in CO-PA is in sync with SD

- SD Credit Memos not related to returns have a quantity of ‘1’ which flows into CO-PA. Quantity value is now out of sync- Use Reset Value/Quantity Fields (KE4W)

to set the quantity value field to ‘0’

• Look for value fields with transfer sign turned on and verify formula in reporting

CO-PA Usage Tips

Use SD Doc Flow to understand the data flow

CO-PA Usage Tips

Compare the values of the Value Fields ….

CO-PA Usage Tips

… With the Values of the Condition Types inthe Billing Document

CO-PA Usage Tips

• Did you allow Direct Post from FI?-Need to verify these transactions for accuracy

• Run SAP standard reconciliation report - KEAT

CO-PA Usage Tips

KEAT shows reconciliation of COPA-SD-FI-PCA

CO-PA Usage Tips

• Inter-company Scenario

- Cost value field for one company is revenue for other company

- VPRS is Cost value field for shipping company that owns the product

- Revenue value field for shipping company is Cost value field for selling company: - setup contribution margin formula appropriately

CO-PA Usage Tips

CO-PA Usage Tips

• Inter-company Scenario (cont’d)

-Ensure Profit Center substitutions are correctly used, when the profit center structure is different for the companies to prevent out of sync situation between Profit Centers e.g. COGS is okay in total but does not tie out by profit center

• Use Line Item reports (KE91) for reporting on Characteristics not activated in PA Segment e.g. Profitability by Sales Order

• COGS valuation:- Use VPRS: it picks up Moving Average Price from the Material Master- Or, Use valuation in CO-PA- Update COGS from FI

CO-PA Usage Tips

• If you use Sales BOMs, remember you sell the Header BOM but the cost (VPRS) is associated with the individual components

• So,COGS is in sync in total but not by product

• Revenue is assigned to header BOM but cost is assigned to the components. > Use an user exit to update the VPRS for the header BOM

CO-PA Usage Tips

Reporting Tips

CO-PA Quick Tips Topics

• Fine tune the Report Performance Settings

-Use summarization data

-Use summarization levels

- Use frozen data

CO-PA Reporting Tips

CO-PA Reporting Tips

Use Last Saved Data at report run time

CO-PA Reporting Tips

• Use Line Item based reports to get details by Sales Order, and other Characteristics not activated in PA Segment, rather than making these characteristics active in PA Segment

• Set up Key Figures to facilitate reporting

CO-PA Reporting Tips

Key Figure Scheme

CO-PA Reporting Tips

Key Figure Elements

CO-PA Reporting Tips

Use Actual Line Item Display (KE24) to get quick reporting by Sales Order, and otherCharacteristics not activated in PA Segment

CO-PA Reporting Tips

FYI …. Unlisted Tips

CO-PA Quick Tips Topics

Condition Type status must be ‘active’ for value to flow to CO-PA

FYI… Got to know some SD

If VPRS status is ‘inactive’ – value will not flow to CO-PA

FYI… Got to know some SD

VPRS status is ‘active’ if placed at the end – value flows to CO-PA

FYI…. Got to know some SD

New Output Options

FYI…. Report Output

ALV Output Option- Publish to Portal

FYI…. Report Output

Graphical / HTML Output Option

FYI…. Report Output

Post SD Billing Documents Subsequently:

- Activate CO-PA anytime - Fix corrupt CO-PA database

FYI.… CO-PA Activation

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Session Code: [1703]