PROGRESS ANDTHRIVE SAFELYCOPA SessionShamsa Jabeen | Sr. Officer ControllingMarch 28th, 2016

Organizational Elements: FI/CO Comparison

Financial Accounting (FI)Focuses on “what” we spend money forFinancial accountingExternal reporting based on IAS standard

• Company financial statements• Business area financial

statements

Controlling (CO)Focuses on “what” we spend money Management accountingInternal reporting based on management requirements

• Cost Centers• Profit Centers

Cost Elements Groups

• Logical groupings of primary and secondary cost elements• Facilitates reporting, planning and allocating costs

Total Costs

Total Primary Costs

Wages Utilities Materials

Total Secondary

Costs

Internal Order

Settlement

Cost Elements (continued)

Income Statement

Expense A/C

Revenue A/C

Balance Sheet

FIGL A/C

COCost Estimate

Primary Cost elements

Secondary Cost elements

Primary Cost elements

Secondary Cost elements to

update COPA

Overview of Controlling Profitability Analysis (CO-PA)

Collects Revenues and Costs from various modules in order to analyze profitability.

CO-PA can capture and hold data in two ways—costing based and account based.

Inherits the characteristics that are associated with those revenues and costs (value field).

Examples of characteristics are customers, Product, Region, Salesperson, etc.

Data Flows into CO-PA

SD Billing DocumentQuantitiesRevenues

Cost of Sales

CO-PC Cost estimate Variable cost of COGMFixed cost of COGM

FI G/L account posting RebateFreight

CO OrdersSales, Admin. Costs,

Marketing Cost and ProductionVariances

Billing Document Postings

Sales Conditions is also Mapped to an account key and subsequently a G/L Account

Sales Conditions is Mapped to a Value Field

If a value field is not mapped to a sales conditions, the billing document is not passed to FI.

Sales conditions detailsSale

Cond. Description Value Field Acct. Assg. Grp Account key G/L

Account G/L Description

ZCA0 Credit Adjustment VV100 Export Revenue/ Inter Co. Export/

Inter Co. Local Service Charges 132203Claim Expenses Reimbusrement

ZCC0 Cylinder Charges VV408 Export Revenue/ Inter Co. Export/

Inter Co. LocalRev. Cylinder Charge 121790Contra COGS Packaging

Charges Export

ZDA0 Debit Adjustment VV100 Export Revenue/ Inter Co. Export/

Inter Co. Local Service Charges 132203Claim Expenses Reimbursement

ZDC0 Documntation Charges VV440 Export Revenue/ Inter Co. Export/

Inter Co. Local Doc. Charges 132204Attestation Charges Reimbursement

ZFC0 Finance Charges VV405 Export Revenue/ Inter Co. Export/

Inter Co. Local Finance Charges 132201Bank Charges Reimbursement

ZKA0 Additional Freight VV435 Export Revenue/ Inter Co. Export/

Inter Co. LocalRev. additional freight 132200Freight Expenses

Reimbursement

ZOC0 Other Charges VV409 Export Revenue/ Inter Co. Export/ Inter Co. Local

Rev. Other Charges 132202Export Expenses

Reimbursement

ZPC0 Packaging Charges VV410 Export Revenue/ Inter Co. Export/

Inter Co. LocalRev. Pack. charges 121790Contra COGS Packaging

Charges Export

ZTC0 Tech / Cert. Charges VV445 Export Revenue/ Inter Co. Export/

Inter Co. Local Tech Charges 132202Export Expenses Reimbursement

At the time of PGI (COGS Dr.) which will be updated in ACT_TOTAL_COGS VALUE FIELD'

At the time of billing SALES Cr. updated in SALES Value (Value field)

Finance Postings• Finance transactions are assigned to a PA transfer structure.• This PA transfer structure includes source and target objects• Source objects are cost elements (or groups) • Target objects are value fields• When posting a finance document, click on the Prof.Seg. Arrow and enter

the characteristics

Cost Accounting Allocation

Posting Types of Cost Allocation• Costs will be allocated to particular Cost Centers• There are three different types of cost allocation:

• Direct Reposting• Percentage Allocation• Statistical Key Figures

COIN- CO Through-postings from FIKOAO- Actual settlement RKIB- Actual Periodic Repostings RKU1- Repost costs

Statistical Key Figures• Provide the foundation for accurate and effective cost allocations between

cost objects• Utilized to support internal cost allocations involving allocations,

assessments and distributions• Examples: number of employees, units of KWAT and MMBTU

Cost center Activity

(20 Hours)

6 Hours Plying Department

Knitting Department

PU & DottingDepartment4 Hours

10 Hours

Distribution Cycle

• Method for periodically allocating primary cost elements• Primary cost elements maintain their identities in both the sending and

receiving objects• Sender and receiver cost centers are fully documented in a unique control

(CO) document

Assessments Cycle

• A method of allocating both primary and secondary cost elements

• Primary and/or secondary cost elements are grouped together and transferred to receiver cost centers through use of a secondary cost element

• Sender and receiver cost centers are fully documented in a unique controlling (CO) document

Reposting Cycle

Primary cost elementsComing from FI

Secondary cost elementTo update COPA

COPA Assessments Cycle

Secondary cost element

Cost element group

THANK YOU