Integrated Copa Planning Leveraging Your Sop Forecast 3259

Integrated CO-PA PlanningLeveraging Your SOP Forecast

Michael WolfSenior Manager,

Objective

• Provide an overview of the integrated planning functionality between Sales & Operations Planning (SOP) and Profitability Analysis Planning (CO-PA)

• Explain the setup and configuration requirements of the integration process

• Demonstrate and describe the planning process including an example of the data flow

• Outline tips, pitfalls and benefits of this process

NOT Covered in this Presentation

• Business processes surrounding the creation of a sales plan

• Configuration for Sales & Operations Planning using flexible planning and the Logistics Information System

• Reporting and analysis functions in CO-PA.

Learning Points

• Overview of Sales & Operations Planning (S&OP) integration with CO-Profitability Analysis

• Key steps and configuration settings to set up integrated planning process

• Benefits of integrated planning data to the organization

Agenda

• Introduction to SOP Processes• Key Benefits

• Configuration Requirements• SOP setup• CO-PA configuration

• Profitability Analysis Planning Definition

• Execution of Integrated Planning

• Conclusion

LIS – CO-PAInterface

Sales Planning

Valuation and Analysis

Integrated Planning – Process Overview

Review & Update

Consistent Sales& Financial Plan

Overview of Interface

• The interface between CO-PA and LIS covers all the instances where data that exists in one application should be available in the other application. This allows the user to draw on the functions of both modules to achieve the maximum benefit.

• This interface is typically used to define a production plan iteratively.

• Quantities are entered into LIS/SOP where they are adjusted to fit capacities.

• The sales quantities are sent to CO-PA, where they are used as a basis for a revenue plan.

• Sales quantity plan is created in CO-PA from a revenue-oriented viewpoint.

• This cycle can be repeated as often as necessary.

Introduction to SOP

• Sales and Operations Planning Defined

• Sales and Operations Planning is the management process for developing a company game plan that ensures resource capability meets market demand. Representing "management's handle on the business", Sales and Operations Planning integrates all functions of the business through a "single set of numbers" from which all other detailed plans and schedules can be derived.

• Sales and operations planning – a flexible forecasting and planning tool that can set targets in sales, production, and other parts of the logistics chain. It is particularly well-suited to long and middle-term planning.

Agenda

• Introduction to SOP Processes

• Key Benefits• Configuration Requirements

• SOP setup• CO-PA configuration



• Conclusion

Key Benefits

• Consistency in key data• Sales Planning

Production Planning

Financial Planning

• Single point of data entry• Leverage qty data• Use costing and pricing data

• Ability to incorporate changes in a timely manner• Will help streamline the planning process which will lead

to time and money savings

Agenda


• Key Benefits




• Conclusion

Configuration Requirements

• SOP Setup• Flexible Planning Structures (Not covered in detail)• LIS Transfer Definition – Outbound Data Setup

• CO-PA Configuration• Transfer Definition – Inbound Data Mapping• Valuation Strategy• Material Costing• Planning Workbench

SOP Setup

• Flexible Planning Structures• Info structure created to capture required data• Planning parameters defined for new info structure• Planning type created

• Defines the parameter control for entering SOP data

• Planning hierarchy created• SOP master data • Planning characteristics created

• Plan data ready to be entered

LIS Transfer Definition

• A key activity in the outbound data setup is defining the planning activity key

IMG Path (release 4.6):

Logistics General > Logistics Information System (LIS) > Planning > Functions > Mass Processing > Define Activities

LIS Transfer Definition Steps

Configuration Steps• Create key figure assignment profile• Create characteristics assignment profile• Create the CO-PA transfer profile

Process Steps• Create mass processing activities• Create mass processing job (w/ variant)• Schedule job & monitor post processing results

CO-PA Configuration


Controlling>Profitability Analysis>Master Data>Valuation>Valuation Strategies

Controlling>Profitability Analysis>Integrated Planning > Define LIS Interface

CO-PA Transfer Definition

• All SOP data is stored in LIS info-structures

• Transfer rules are defined to transfer planned quantity data from SOP info-structures to CO-PA• A separate process can be defined to transfer data from CO-PA

into SOP to complete the iterative process

• Some of the CO-PA transfer steps need to be defined as prerequisites for the LIS configuration and vice-verse.

CO-PA Transfer Definition

• Mapping of Characteristics and Value Fields in LIS to corresponding COPA fields


Controlling>Profitability Analysis>Planning> Integrated Planning> Define LIS Interface

CO-PA Transfer DefinitionCharacteristic Assignment

• LIS characteristics to be included in the transfer are assigned to corresponding CO-PA characteristics

CO-PA Transfer DefinitionKey Figure Assignment

• Defined for planning data

• Quantity fields are mapped in this step

CO-PA Transfer DefinitionDefine LIS to CO-PA transfer structure

• Defined for planning data• Key step in assigning the LIS info structure to the

operating concern• Characteristic assignment scheme• Key figure assignment scheme

CO-PA Configuration

• Valuation Strategy• Definition of the rules used during the planning process to

determine the planned values to store in the CO-PA value fields

• Key Valuation Concepts• SD Pricing integration• Material Cost Estimate integration• User Specific via user exits

CO-PA Configuration Details Valuation Strategy

CO-PA Configuration DetailsValuation Strategy

• Revenue value calculation• COPA defined costing sheet (price determination)• Integration with SD pricing procedure

• Same access sequence used in price determination in the billing process

• Can only be used for planned values, not actuals• Fields used in the access sequences MUST be defined as

characteristics in your operating concern for the integration to be successful


• Material cost estimate integration• Aids in the planning of direct material Cost of Sales• Enables the valuation step to calculate material costs• Use the quantity transferred from LIS as the basis for cost

calculation


• Valuation using User Exits• Customer Enhancement COPA0002

• Function Module - EXIT_SAPLKEAB_002• Include – ZXKKEU04• Can be used to create customized routines for use in the planning

processing in CO-PA

• Customer Enhancement COPA0006• Allows users to create their own planning functions

CO-PA ConfigurationAssignment of Valuation Strategy

• Valuation strategy assignment determines when to invoke the integration• Point of valuation (manual or automatic planning)• Record type• Plan version• Valuation strategy

CO-PA Configuration

• Material Costing• Direct material costs can be determined using the stored material

cost estimate from the material master• As defined from your standard cost setting process• Can leverage the same valuation strategy used in transferring actual

cost component details to CO-PA during the billing process.

• Configuration of planning “costing key”

CO-PA ConfigurationCosting Key

Key Assignments:

Assign costing variant

Determination of which cost estimate to transfer

CO-PA ConfigurationCosting Key

• Assignment of Costing Key• Required step to activate the integration of product costing data

with CO-PA planning• Assign at material specific level• Assign at material type level• Custom assignment.

CO-PA ConfigurationCost Component Assignment

• Cost components can be assigned to specific value fields defined in the operating concern

• Leverage existing cost component structure defined in product cost planning configuration.

Agenda


• Key Benefits


• Profitability Analysis Planning Definition• Execution of Integrated Planning

• Conclusion

Profitability Analysis Planning Definition

• Pre-requisites• All CO planning version maintenance is complete and activated for

CO-PA• Number ranges for planning documents are defined

• Profitability Analysis planning definition• Use of SAP’s Planning Framework (t-code KEPM)

• Planning Levels • Planning Package • Planning Method

Profitability Analysis Planning Definition SAP’s Planning Framework

Planning Framework Tips

• Characteristics defined in the planning framework must be consistent between each of the steps• LIS info structures should include key characteristics

• Required Fields• Plant

• Needed for costing data

• Pricing specific characteristics• Needed for SD pricing

reference

Planning Framework Tips

• Characteristics defined in the planning framework must be consistent between each of the steps• CO-PA planning level must include the key characteristics used in

the planning process• The planning layout defined for

the planning method must have consistent characteristics

Agenda


• Key Benefits



• Execution of Integrated Planning• Conclusion

Execution of Integrated Planning

• Due to integrated nature of this process, the sales and operations departments will work closely with the finance department during this planning process.

Execution of Integrated Planning

• 3 step process will be demonstrated1. Enter SOP Unit Plans

2. Transfer SOP Plan Data to COPA

3. Run CO-PA valuation routine

• The integrated planning process results in two planning documents recorded in CO-PA

• One record for quantity

• One record for values

• If quantity changes are recorded in SOP unit planning, the process is repeated and only changed quantity & valuation is recorded in COPA

• Can perform “what if” analysis by using planning simulation

Execution of Integrated Planning Step 1: Enter SOP Unit Plans

• Flexible planning is used – MC93/MC94• Ensure planning hierarchy is completely defined• Monthly quantities are entered by customer / material

Execution of Integrated Planning Step 2: Transfer SOP Plan data to CO-PA

• Use mass processing functionality in flexible planning• Similar to transferring data to demand management (MRP)

• Create and schedule the transfer job• MC8D / MC8E / MC8G

• Monitor transfer results in post processing• MC8J

Key Point:

Check Status & monitor messages

Execution of Integrated PlanningStep 2: Transfer SOP Plan data to CO-PA

Key Point:

Aggregation level must be consistent with the characteristic transfer rules

• Mass Processing Settings

Execution of Integrated PlanningResults transferred to CO-PA

• View results of planning data in CO-PA• Only incremental quantities are transferred with this step

Execution of Integrated PlanningStep 3: Run CO-PA Valuation Routine

• Pre-Requisites for running the valuation routine• SD Pricing maintenance for planning period

• Valuation reads valid pricing data from SD pricing tables

• Current material cost standards• Cost portion of planning data is driven from saved material cost

estimates.


• A key Step to be executed in the planning framework• KEPM – CO-PA Planning Framework• Step found in the planning method


• Analyze planning results• A second plan document is created that includes the revenue

(pricing) value and the Cost of materials value

Execution of Integrated PlanningResults transferred to CO-PA – Additional Quantity

• Quantity has been updated in SOP

• Recorded results in CO-PA

Additional 250 units entered.

New total = 1250

Testing of Valuation in CO-PAValuation Simulation

• Testing & Simulation can be performed to validate CO-PA plan definition settings

• Transaction code KE21S – Simulate Valuation

• Enter Qty and characteristics found in data transfer

Testing of Valuation in CO-PAResults of Simulation

Agenda


• Key Benefits




• Conclusion

LIS – CO-PAInterface

Sales Planning

Valuation and Analysis

Integrated Planning – Process Overview

Review & Update

Consistent Sales& Financial Plan

Conclusion

• Leveraging your SOP planning data will ensure data consistency across planning platforms in SAP

• Existing CO-PA structure and planning tools are utilized• Combined with other planning techniques, multiple planning

scenarios become available• Integration with other SAP functions provides for a complete set

of planning information and reduces data entry• Flexible Planning• SD Pricing• Product Costing• Financial Planning Tools

Q & A

Michael WolfSenior Manager

Hitachi Consulting www.hitachiconsulting.comDirect: 312.372.0672Mobile: [email protected] your next success! ®

2104Session Code:

Integrated Copa Planning Leveraging Your Sop Forecast 3259

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