CO-PA Management

SAP AG 2000 filename (author) / 1

Profitability Management

with


Overview

Imagine you are a Sales Business Analyst

Introduction into Profitability Management

Profitability Reporting in mySAP.com

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Transferring Actual Data to Profitability Analysis33

Profitability Planning 44


Analyze Market DevelopmentAnalyze Market Development

• Market growth / Market share

• Trends in demand and prices

• Trends in technology

• Market growth / Market share

• Trends in demand and prices

• Trends in technology

Portal for a Sales Business Analyst / Tasks

Web browser access

Workplace ofa Sales

Business Analyst

Analyze Sales FiguresAnalyze Sales Figures

• Sales by office / regions and customers

• Sales by products

• Sales by office / regions and customers

• Sales by products

Analyze Profitability and MarginsAnalyze Profitability and Margins

• Gross margins by customer

• Evaluate the efficiency of field service and promotional activities

• Contribution margins by products

• Gross margins by customer

• Evaluate the efficiency of field service and promotional activities

• Contribution margins by products

Sales Budgets Sales Budgets

• Coordinate sales activities by setting goals• Coordinate sales activities by setting goals

Early Warning IndicatorsEarly Warning Indicators

• Analyze the current sales pipeline• Analyze the current sales pipeline


Portal for a Sales Business Analyst / Screens

Web browser access

Workplace ofa Sales

Business Analyst


The Workplace with MiniApps


Overview




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Integrated Business Model to Collect Revenue and Costs

Sales quantitySales revenue- RebatesNet revenue- Direct costs- Var. prod. costsContrib. margin I- Fixed prod. costsContrib. margin II- Variances- Overhead costsOperating profit

Act. Plan

DocumentsValue flows

SDSDTransfer ofbilling docs

FIFI

CO-CO-PCPC

Direct postings Valuationusing costestimates

CO-CO-PCPC FIFI

CO-CO-OMOM

Transfer ofoverhead

Planning

Customizing


Views of Profitability Management

Profit Centers

ProfitabilitySegments

Responsibility Accounting Profitability Analysis byMarket Segments

Revenue 2000Discounts 100COGS 460Contr.Margin 1440Marketing 230...

Revenue 2000Salaries 468Material 230...Profit 1000ROI 12...

Procurement Production Distribution Sales


Profitability Analysis by Market Segments

Reporting Dimensions

CustomerRegion

Sales officeBusiness Unit

Revenue

Cost

Loss

Profit

Sales QuantitySales Revenue Customer discount Sales commission Direct sales costs

Net revenue Direct material costs Variable production costs

Contribution margin I Material overhead Fixed production costs

Contribution margin II Variances

Contribution margin III Overhead costsOperating profit

Sales QuantitySales Revenue Customer discount Sales commission Direct sales costs

Net revenue Direct material costs Variable production costs

Contribution margin I Material overhead Fixed production costs

Contribution margin II Variances

Contribution margin III Overhead costsOperating profit

Product

Determine and analyze the profitability of market segments


Responsibility Accounting by Profit Center

Reporting Dimensions

Profit Centers

Answers

Profit

Sales RevenueSales DeductionsCost of Goods SoldOperating Profit

LiabilitiesAccounts ReceivablesInvested Capital in AssetsInventoryCost of Capital

Return on Investment

Sales RevenueSales DeductionsCost of Goods SoldOperating Profit

LiabilitiesAccounts ReceivablesInvested Capital in AssetsInventoryCost of Capital

Return on Investment

Accounts

ROIEquity TurnoverReturn on SalesEconomic Profit Invested

Capital

Determine and analyze profit, balanceand financial ratios by Profit Center


Integrated Business Model

BusinessProcess

BusinessProcess

ProductionGoods

movementSales/BillingProcurement

VVAALLU U E E F F LLOOWW

PPPP SDSDMMMM MMMM

CO-CO-PCPC

CO-CO-PAPA

FIFI

CO-CO-OMOM

Standard costs

VariancesManufacturingAdministrationMarketing Sales


Organizational Units

ControllingArea

CompanyCodes

Profitability-Segment

OperatingConcern

Profitability-Segment

CompanyCodes

Sales Organization

DistributionChannel

CustomerCustomer

Plant

CompanyCodes

ControllingArea


CUST. GRP.

Basic Concepts of CO-PA

Sales Region NorthProduct Prod1Product Group Electronics Customer Cust1Customer Grp WholesaleState IllinoisSales Rep Miller

CharacteristicsCharacteristics

Revenues 800Discounts 100COGS 650

Value Fields

RevenueDiscounts

COGS

Profitabilitysegment

ValuesValues

RE

GIO

N

PROD. GROUP


PZ PZ

Input

Cust.

Product

Sls rep.

DistrictState

Cust.grp

Prod.grp

Sls reg.Strat.BU

R1

P1

C1

Output

Cust.

Product

Sls rep.

District

State

Cust.grp

Prod.grp

Sls reg.Strat.BU

SR

R1

P1

C1

D1

S1

G1

PZ

SB

Product

Customer group

State

Product group

District

Sales rep. Sales region

Strategicbusiness unit

Customer

Characteristics Derivation Concept

D1 D1 S1 S1

G1 G1

SB SB

SR SR

DERIVATIONSDSD

CO-CO-PAPA

R1

P1

C1


Output

Quantity

Customer Disc.Revenue 10000

1000

10 Quantity 10

Var. prod. costs 5,200Fixed prod. costs 1,800Special handling 200

Revenue 10,000

Sales commision 500

Valuation Concept

InputInput

Billing Document

Customer 1000Product P-100Quantity 10Revenue 10,000Discounts 1,000……

ValuationSDSD CO-CO-

PAPA

Special handling

Sales commision

Fixed prod. costs 1800

500

200

5200 Var. prod. costs 5200


Ergebnisbereich-Templates


Overview




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Sources of Value Fields

SDSD

Cost CenterOrderProcess

Cost Estimate

General Ledger Posting

Billing Document

FIFI

CO-OMCO-OM

PSPS

CO-PACO-PA

WBS ElementNetwork Operation

Additional Costs

QuantityQuantity

Sales RevenuesSales Revenues

Sales DeductionsSales Deductions

Cost of Goods SoldCost of Goods Sold

Variable Cost of Goods MfdVariable Cost of Goods Mfd

Fixed Cost of Goods MfdFixed Cost of Goods Mfd

BonusesBonuses

Freight CostsFreight Costs

Sales and Administration CostsSales and Administration Costs

Marketing CostsMarketing Costs

VariancesVariances

Research & Development CostsResearch & Development Costs

Estimated DiscountsEstimated Discounts

Estimated BonusesEstimated Bonuses

CO-PC-OBJCO-PC-OBJProduction Order Production VariancesProduction Variances

CO-PCCO-PC


YES

Transfer Billings Document to CO-PA: In Detail

NO

Derivation error

Error in account- determination

Cost estimate not found

SDSDHeader : Customer 47

Item 10: Product A

Item 20: Product B

SAVE

Billing-documentSDSD

Infomissing ?

Release toAccounting

COCOPAPA

FI

FI-Docu-ment

Line-item 1

Line-item 2Customer 47Product A

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


Reconciliation Report FI / SD and CO-PA

Rel. 4.5


Kunde/ArtikelKunde/ArtikelKunde/ArtikelKunde/ArtikelKunde/ArtikelKunde/Artikel

Source Related Allocation of Overhead Costs

CompanyCompany

overheadoverhead

Operation ProfitOperation Profit

Customer Group1

Customer Group1

overhead costs sales dept.

CM4CM4

Product Group1

production variances

production variances

CM3CM3

Customer A/Product 1

Customer A/Product 1

revenue

rebates

net revenue

var. prod. costs

CM1

fix prod. costsCM2

Cost CentersCost Centers

cost center“production“

cost centers“sales dept.“

revenue

:::

CM1:

CM2

revenue

:::

CM1:

CM2::

CM3

revenue

:::

CM1:

CM2::

CM3

:::

CM4cost center

“administration“

./.

./.

./.

./.

./.

./.


Direct Posting of Sales Costs


Overview




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Planning on Different Levels

Cost of Goods Sold

Distribution Expenses

MarketingExpenses Sales Organization

Customer Group

Customer Product group

Product

Sales VolumesRevenues


Elements in Planning

Plan Package

Planning Level

Planning Method

Characteristics

Sales Organization: SouthDivisionCustomer GroupProduct

Characteristics

Sales Organization: SouthDivisionCustomer GroupProduct

Characteristic ValuesDivision: Pumps Customer Group: IndustrialProduct: *Period/Year: 01.00 - 12.00Record Type: F

Characteristic ValuesDivision: Pumps Customer Group: IndustrialProduct: *Period/Year: 01.00 - 12.00Record Type: F

Change Planning Data

Planning LayoutCurrencyDistribution KeyNumber Format

Change Planning Data

Planning LayoutCurrencyDistribution KeyNumber Format

Parameter Set


Overview of Planning Framework

Planning method

Parameter set

Parameter set

Definition ScreenPlanning level

Planning package

Planning package

Planning package


New Planning Framework

Status of the planning package

All automatic planning functions included


The CO-PA Planning Functions: Overview

Customizable planning layout Integrated Excel Planning @Web

Manual Planning

Revaluations Valuations Period dist. Forecast

Planning Aids

Event planning Monitoring of

sales deals

Sales and Promotions Budget

Automatic Planning Functions

Transfer of cost center costs/process costs

Settlement of order planning dataand project planning data

Transfer of quantities to/from SOP Transfer of planning data to/from LIS Transfer of planning data to PCA Transfer of planning data to F/GL Retraction of BW-Data

Integrated Planning

Copying/deleting/adapting plans Top-down distribution

Planningin

CO-PA


New Planning Functions in a Process View

Plan

proposal

Annualgoals

Objectives

by ...

Bottom-upplanning

Valuatedplan

Completecontributionmargin plan

Areobjectives attained ?

Reference

data

Copy,

extrapolateRework

Break

-do

wn

Val

uat

e

Agree

Collect

Valuate

Inte

grate

d

transf

ers

of cost

pla

ns

Compare

Initiate

corrections


Two Different Roles

Coordinates and organizes the planning process

Configurates the planning process in the system

Decides what should be planned

Decides who should plan what

Coordinates and organizes the planning process

Configurates the planning process in the system

Decides what should be planned

Decides who should plan what

Contributes his business knowledge as an end user

Receives a personalized view of his planning

Does not need any knowledge of the planning process and technical aspects

Contributes his business knowledge as an end user

Receives a personalized view of his planning

Does not need any knowledge of the planning process and technical aspects

Planning CoordinatorPlanning Coordinator Operative PlannerOperative Planner



Plan

proposal

AnnualGoals

Objectives

by ...

Bottom-upPlanning

Valuatedplan



Reference

data

Copy,

extrapolate

Rework

Break

-do

wn

Val

uat

e

Agree

Collect

Valuate

Inte

grate

d

transf

ers

of cost

pla

ns

Compare

Initiate

corrections


Manual Planning of Annual Goals

Fix SAP Sheet and flexible Customer Sheet

Full Excel Macro functionality available


Planning with a Ratio Scheme

Record type F Year 2000Reference version: Actual data

Record type F Year 2000Reference version: Actual data

CustomerGroup

CustomerGroup

Price(Ratio M1)

Price(Ratio M1)

010203

10.0015.0012.00

Record type F Year 2001Version 1, plan version

CustomerGroup

CustomerGroup

Revenue(Qty * M1)

Revenue(Qty * M1)

Sales Qty.(Plan)

Sales Qty.(Plan)

010203

25,00010,00010,000

250,000150,000120,000

Ratio M1 =

Ratio Scheme A:

Revenue Quantity


Method: Distributing Entire Values

Prod. groupPumpsNonassignedTotalCredit

Revenues 2000 1000 3000-3000

Plan Values Plan Values

ProductP1P2

Prod. groupPumpsPumps

Revenues

Result: Distributed Values

Quantity in '99 100 200

Reference Data

ProductP1P2

Prod. groupPumpsPumps

Value to bedistributed

Result1/3*3000 = 10002/3*3000 = 2000


New Planning Functions from a Process View

Plan

proposal

Annualgoals

Objectives

by ...

Bottom-upPlanning

Valuatedplan



Reference

data

Copy,

extrapolate

Rework

Break

-do

wn

Val

uat

e

Agree

Collect Valuate

Inte

grate

d

transf

ers

of cost

pla

ns

Compare

Initiate

corrections


Classic Layout


Profitability Planning@ Web


Integrated Excel



Plan

Proposal

AnnualGoals

Objectives

by ...

Bottom-upPlanning

ValuatedPlan

CompleteContributionMargin plan

AreObjectives Attained ?

Reference

data

Copy,

extrapolaterework

Break

-do

wn

valu

ate

aggr

ee

collect

valuate

Inte

grate

d

transf

ers

of cost

pla

ns

compare

Initiate

corrections


Integration of Planning

EC-EC-PCAPCA

Internal orders

Cost center CO-CO-OMOM

Projects

PSPS ABC BusinessProcess

CO-CO-PAPA


Overview




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Checking Your Planning Results in Reporting


Extraction of Data from CO-PA to SAP BW

InfoCubes

DataSource (Characteristics / Value fields)DataSource (Characteristics / Value fields)

BW InfoSource (InfoObjects)BW InfoSource (InfoObjects)

SAP BW Server

OLTP R/3CO-PACO-PA

CO-PAMetadata

Mapping

Flow of Metadata

Flow of Transaction

Data

BW 2.0BW 2.0


Web-Enabled Drilldown Reporting

You can draw report data by executing reports

from your personal user's role menu

You can draw report data by executing reports

from your personal user's role menu

With the help of MiniApps, report

data is placed right at your fingertips

With the help of MiniApps, report

data is placed right at your fingertips


The Workplace with MiniApps

CO-PA Management

Documents

Transcript of CO-PA Management