Copa Bw a Winning Team

Stefan Kraus (Product Manager Profitability Management)

SAP AG

© Copyright 2000

2 0 0 0 A S U G A n n u a l C o n f e r e n c e & V e n d o r F a i r M a y 7 - 1 0 , 2 0 0 0G e o r g i a W o r l d C o n g r e s s C e n t e r A t l a n t a G e o r g i a

A M E R I C A S ’ S A P U S E R S ’ G R O U P ©Copyright 2000

CO-PA and BW –

A Winning Team

SAP AG 2000 filename (author) / 2

Overview

Concepts of Profitability Analysis

Concepts of SAP Business Information Warehouse (BW)

Profitability Analysis and CRM with BW

Technical Interplay (Extracting and Retracting Functions)Profitability Reporting with Delivered Business ContentBusiness Scenarios

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Interplay between Profitability Analysis and BW

3.13.13.23.23.33.3

An Integrated Business Model for Revenues and CostsIntegration of Master Data and ValuationIntegration of Actual Value Flows and Planning

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Overview





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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


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


Typical Questions in Profitability Analysis

Which are the largest and fastest growing customers?

Did the salesforce reach their contribution margin goal?

What was the success of the most recent sales promotion for a product line?

What is the impact of a pricingstrategy for a group of customers?

Contribution ofIndividual MarketSegments

Margin goals of IndividualSales Entities

Revenue and

Cost Structure

Success of MarketingActivities


Checking Your Planning Results in Reporting


Navigating within Web-reporting

Web-reporting allows nagivating by :

• Menu• Double clicking• Right mouse click

Web-reporting allows nagivating by :

• Menu• Double clicking• Right mouse click


Manual Planning of Annual Goals

Fix SAP Sheet and flexible Customer Sheet

Full Excel Macro functionality available


Overview





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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


YES

Transfer Billings Document to CO-PA: In Detail

NO

Error

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 ...


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“

./.

./.

./.

./.

./.

./.


Overview





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Datawarehousing in BW

Administrator Workbench

BAPIBAPI

3rd party OLAP client

3rd party OLAP client

OLAP processorOLAP processor

Staging EngineStaging Engine

InfoCubesInfoCubesMeta DataRepositoryMeta DataRepository

ODSODS

client

BusinessExplorer

BAPIBAPI

BAPIBAPI

BAPIBAPI


The mySAP.com Landscape

BW

R/3 Financials Non-SAP

CRM SEM APO

Ex

tra

cto

r

Re

tra

cto

r


Portal for a Sales Business Analyst / Tasks

Web browser access

Workplace of a Sales

Business Analyst

BW

R/3 Non-SAP

CRM SEM APO


Reporting in BW


Overview





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Extraction of Data from CO-PA to SAP BW

DataSourceDataSource

Communicationstructure

Communicationstructure

SAP BW Server

OLTP R/3CO-PACO-PA

CO-PAMetadata

Mapping

Flow of Metadata

Flow of Transaction

Data

TransferstructureTransferstructure

Met

adat

au

plo

ad

InfoSourceInfoSource


Retraction of Data from BW to CO-PA

SAP BW Server

OLTP R/3

Flow of Metadata Flow of

Transaction Data

CreateBW Query

Mappingbetweenfield catalog & CO-PA CO-PACO-PA

CO-PACO-PA

Retract data from BW and

back into CO-PA

BW 2.0BAdd-on


R/3

CO-PA in the mySAP.com Landscape

BW

SEM

APO

CRM

Cost D

river

s

Mar

gin

(Cus

tom

er P

rofit

abilit

y)

mySAP.com Reporting

Replication

Short-Term

Production Forecast

Margin (Product P

rofitability

)

Targets

Profitability Key Figures


Overview




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Delivered CO-PA Business Content

Goal: Ready-to-Run Business Content for CO-PA

Scenario 1: Connecting live CO-PA to BW and reporting of live data with queries (for testing) as easy and quickly as possible

Assign elements of your Key Figure Scheme to elements of a delivered CM structure

Extract live data to delivered InfoCube

Report your data with delivered queries

Scenario 2:Providing pre-defined Operating Concern Templates and matching BW InfoCubes for new installations and demos

Use/copy delivered Oper. Concern Templates

Extract demo data/live data to delivered InfoCube

Report data with delivered queries


Scenario 1: Connecting live CO-PA

...a pre-defined InfoCube +

ready-to-run Queries

CO-PAElements of customer-defined

Key Figure Scheme are assigned to...

... pre-defined key figures which are used in ...

SAP BW

Sales Quantity

Gross Revenue

Customer DiscountMaterial DiscountCash Discount

........

........

........

........

........

........

........

........

Sales Quantity

Sales Revenue

Total Sales Discount

Total Dir. Sales Costs

Net Revenue

Cost of Goods Sold

Contribution Margin I

Variances

Contribution Margin II

Total Overhead Costs

Operating Result


Steps: Connecting live CO-PA

Assign elements of Key Figure Scheme to pre-defined key figures which are used in InfoCube

Where: R/3 System -> Transaction SBIW -> Customer-defined DataSource -> Prof. Analysis -> Assign Key Figures

Create DataSource and select the pre-defined key figures which are to be populated in BW

Where: SBIW -> Create DataSource -> Calculated key figures from the key figure scheme (instead of 'value fields' !)

Map DataSource to pre-defined InfoSource 0CO_PA_1

Where: BW System -> Admin Workbench -> InfoSource 0CO_PA_1 -> Transferstructure / Transfer rules

Execute standard steps for connecting Business Content (MetaData Upload, Create InfoPackage, Execute InfoPackage,...) using InfoCube 0COPA_C01 Publishing Key Figures


Scenario 2: Demo Content for BW and Workplace

Workplace

Operating Concern Template S_ GO

BWBW

Infocube (S_GO)

Delivered queries

Extractio

n o

f Demo data

R/3R/3


Delivered Oper. Concern Templates and InfoCubes

Quickstart: simple Operating Concern (basic characteristics and CM)

Template: S_GO / InfoCube: CO-PA: Quickstart (S_GO) 0COPA_C03

Consumer Products: industry-related characteristics and CM

Template: S_ CP / InfoCube: CO-PA: Consumer Products (S_CP) 0COPA_C04

Airline Profitability: industry-specific characteristics and CM

Template: S_AL / InfoCube: CO-PA: Airline Profitability (S_AL) 0COPA_C05


Overview




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CO-CO-PAPA

High-Volume and Cross- Application Reporting


CO-CO-PAPA CO-CO-

PAPA CO-CO-PAPA

Collecting Data from Several R/3 Systems


CO-CO-PAPA

LegacySystem

Collecting Data from Legacy Systems


Overview





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Top TenCustomers

Key CustomerDevelopment

Customer Value - Examples

Customer Lifetime Value Analysis


Customer-Related Revenues and Costs

Customer visits

Order handling& delivery

Service

QuotationsMarketingcampaigns

Time

Net

Pro

fit

Complaints

Collect customer-relatedrevenues and costs

Billing andpayments

Cust:Jones A&P


R/3

Interplay between CRM and CO-PA

CustomerProfitability

CustomerEvaluation in

the Workplace

SAP BW

CO-CO-PAPA

CustomerProfitability

MarketData

Infocubes

Infocubes

Workplace


Customer- Related

Activities

Source-Related Allocation of Customer-Related Costs

Customer

Cu

sto

mer

P

rofi

tab

ilit

y

Net Revenue

Cost of Sales

Customer Service

Order Handling & Delivery Processing

Transport andDistribution

Customer Visits

Customer Complaints

Direct Sales Costs


Source-Related Allocation of Customer-Related Costs

Customer Net Revenue

Cost of Sales

Customer Service

Processing

Direct Sales Costs

Cost CentersCost Centers

SALES &SERVICE

CO-CO-OMOM

Activity alloc.of customer visits

Accruals dependenton order size

Allocation of costs based oncost drivers in CRM

Direct posting FIFI


Example: Customer Direct Costs

R/3

BW

CRM

Cost D

river

s

Replication

Activity Log:#Calls per customer

CO-OM:Total cost per call center

CO-PA:Cost of calls per customer

InfoCube:Cost of calls per customer

CRM-Screen:Cost of calls for a specificcustomer

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Profitability Management Workshops

Workshop Location Date

Performance Tuning in CO-PA Chicago July13 & 14

BW/CO-PA Configuration &Integration

Chicago July17 & 18

SD/COPA Integration Workshop SanFrancisco

October2000

Integrated Profitability Planning SanFrancisco

December2000

Performance Tuning in CO-PA SanFrancisco

January2001

BW/CO-PA Configuration &Integration

SanFrancisco

January2001


Where to sign up

Please check SAPNET for exact dates, location and further details:

http://www.sap.com/usa/education

Use keyword “Workshop”

To register:

Use SAPNET: http://www.sap.com/usa/education

Call Central Registration at 1-888-777-1SAP (1727)

Fax 1-888-FAX-1SAP (329-1727)


Links to Further Information

CO-PA Home page

SAPNet -> Alias 'co-pa'

Factsheets

Profitability Management (mat. no. 50030578)

Sales and Profit Planning in Profit. Analysis (mat. no. 50030579)

CO-PA and SAP BW - A Winning Team (mat. no. 50034426)

Delta Study Guides

SAPNet -> SAP Store / SAPShop -> Knowledge Shop

Copa Bw a Winning Team

Documents

Transcript of Copa Bw a Winning Team