Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

CO PA PowerPoint

113 views

Published on

  • Be the first to comment

  • Be the first to like this

CO PA PowerPoint

  1. 1. Profitability Analysis CO-PA
  2. 2. Course Objectives  Understand the functions in Profitability Analysis.  Explain Profitability management in SAP.  Understand CO-PA structures and master data.  Identify the source of actual values.  Understand planning.  Use the CO-PA information system.
  3. 3. Module 1: Overview Module 2: Profitability Management Course Map Table of contents Module 5: Actual data flow Module 3: Master Data Module 4: Planning Module 6: Information System
  4. 4. Profitability Analysis at A Grp  Profitability Analysis will enable A Grp to analyze the profitability of market segments according to the following characteristics:  Products  Customers  Sales Districts (i.e. USA West, USA East, Saudi Arabia etc.)  Others Product Sales District Customer
  5. 5. How profitable are individual market segments? Overhead Cost Controlling How can we reduce our overhead?  Are the responsibility areas working efficiently?  How high are the organisational activity costs? Are they within their budgets?  How can we optimise our internal business processes? EC PCA ProfitCenterAccounting How Profitable are Individual areas? Overhead Cost Controlling What costs occur within the organisation? CO CEL CO PA CO OM Profitability Analysis CO PC Product Cost Controlling What are the Manufacturing Costs of a product? CO Module Overview
  6. 6. Product CostProduct Cost ControllingControlling Profitability AnalysisProfitability Analysis COCO Standard Cost Estimate Revenues Discounts Cost Collector Overhead CostOverhead Cost ControllingControlling • • Cost CentersCost Centers • Profit. segments Cost and Revenue Element Accounting Flow of actual values in Profitability Anal. FIFI COCO PAPA Product SD ML
  7. 7. Module 1: Overview Module 2: Profitability Management Course Map Table of contents Module 5: Actual data flow Module 3: Master Data Module 4: Planning Module 6: Information System
  8. 8. Aspects of Profitability Management Revenue 2000 Discounts 100 COGS 230 Contr. Margin 1440 Revenue 2000 Salaries 468 Materials 230 Profit DistributionProductionProcurement Sales Advertising 250 Profitability Analysis By Market segment (Market oriented) Responsibility Accounting (Company oriented) Profit Centers PCA PA Segments External Market Profitability
  9. 9. Terms used in Profitability Analysis  Accounting Methods  Period Accounting  Cost of Sales Accounting  Values  Gross Sales  Net Sales  Variances  Ratios  Economic Profit  Contribution Margin
  10. 10. Methods of Determining Profits Period accounting method Cost of Sales method •Revenues •Sales deductions •Changes in stock •Capitalized internal services • Work in process •Revenues •Sales deductions •Cost of sales (incl. variances for period) Total activities Gross result •Total costs: Material costs Personnel costs Other costs •Sales and distribution costs •Administrative costs •Research & Development Result Result
  11. 11. Aspects of Profitability Management Characteristics CO-PA costing-based EC-PCA profit center Enterprise controlling Aims of profitability accounting Key figures Calculation of profits Reconciliation with FI profit-related key figures posted and imputed values Sales and profitability controlling period accounting and cost-of sales methods cost-of-sales method profit-rel. key fig. balance sheet fig. posted values
  12. 12. Reporting Dimensions CustomerRegion Sales officeBusiness Unit Revenue Cost Loss Profit Sales Quantity Sales Revenue Customer discount Sales commission Direct sales costs Net revenue Direct material costs Variable production costs Contribution margin I Indirect overhead Fixed production costs Contribution margin II Variances Contribution margin III Operating profit Product Determine and analyze the profitability of market segments Profitability Analysis by Market Segment
  13. 13. Module 1: Overview Module 2: Profitability Management Course Map Table of contents Module 5: Actual data flow Module 3: Master Data Module 4: Planning Module 6: Information System
  14. 14. Master Data – Currency of Op. Concern Profitability Accounting (costing based) COCO PAPA Operating Concern 9100 Currency B0 = SAR
  15. 15. Master Data in Profitability Analysis Cost Element Cost Element Accounting Profitability Segment Profitability Analysis Characteristics Value Fields
  16. 16. Product (SBU) Ethylene Glycol Sales District SE AsiaCustomer INDORAMASYNTHETIS Profitability Segments
  17. 17. Master Data in Profitability Analysis Profitability Segment Profitability Segment - object within Profitability Analysis to which costs and revenues are assigned. A profitability segment corresponds to a market segment. You can calculate the profitability of a profitability segment by setting off its sales revenues against its costs. A profitability segment in an operating concern is defined by a combination of characteristic values. Characteristics can be concepts that already exist in the R/3 System (customer, product, sales organization, and so on).
  18. 18. Categories of Characteristics (1) Characteristics delivered by SAP Fixed Characteristics Predefined Characteristics • Characteristics are valid in all clients • Characteristics are available for all Operating Concerns
  19. 19. Categories of Characteristics (2) Characteristics delivered by SAP Characteristics created by Customer Fixed Characteristics Predefined Characteristics Characteristics copied from SAP Reference Tables Custom Characteristics
  20. 20. Categories of Value Fields Value Fields delivered by SAP Value Fields created by Customer Predefined Value Fields Custom Value Fields
  21. 21. Segments
  22. 22. Module 1: Overview Module 2: Profitability Management Course Map Table of contents Module 5: Actual data flow Module 3: Master Data Module 4: Planning Module 6: Information System
  23. 23. CO-PA Planning Objectives  Plan Integration  Plan Versions  Creation of a sales plan using planning level and planning packages  Plan Data Transfer
  24. 24. CO-PA Planning Objectives  Plan Integration  Plan Versions  Creation of a sales plan using planning level and planning packages  Plan Data Transfer
  25. 25. Plan Integration ProductionProduction LTP Profit planningProfit planning – V2 ProductProduct costingcosting Cost of goods manufactured Activity price Sales volume Activity quantities SalesSales planningPlanning SOP Cost centersCost centers Profit planningProfit planning - V1
  26. 26. CO-PA Planning Objectives  Plan Integration  Plan Versions  Creation of a sales plan using planning level and planning packages  Plan Data Transfer
  27. 27. Settings for CO-PAGeneral Version Definition Version Plan Actual 00 Version Locked Currency type Exchange Rate Fiscal year dependent parameters in CO-OM Integrated Planning MP Plan Version ‘0’ SABIC 1. Plan records are posted as line items from respective areas. 1 1. The currency type determines the currency or valuation view in which the amounts are to be displayed or planned. B0 - Operating Concern Currency 2 2. Controls the exchange rate type, i.e. Buying rate, selling rate or P – Standard translation for planning. 1PB0
  28. 28. CO-PA Planning Objectives  Plan Integration  Plan Versions  Creation of a sales plan using planning level and planning packages  Plan Data Transfer
  29. 29. Overview of Planning Framework
  30. 30. Overview of Planning Framework  Maintain Planning Level-Package-Set-Personalization  Copy Sales Plan  Upload of COPA Plan - Offline Planning  Manual Profit Planning  Valuation Planning Method  Event Planning Method  Period Distribution Planning Method  Ratio Planning Method  Planning Forecast  Revaluation Planning Method
  31. 31. CO-PA Planning Objectives  Plan Integration  Creation of a sales plan using planning level and planning packages  Plan Data Transfer
  32. 32. Plan Data Transfer COCO PAPA Microsoft Excel St t SOP Quantities / Revenue
  33. 33. Module 1: Overview Module 2: Profitability Management Table of contents Module 5: Actual data flow Module 3: Master Data Module 4: Planning Module 6: Information System Course Map
  34. 34. Actual Values Overview  Flow of Actuals in Profitability Analysis  Overview  Flow from the Sales and Distribution (SD) Module  Flow from Billing Document  Flow from the FI/MM – direct postings  General Ledger Posting  MM Postings  Flow from the Product Costing  Settlement of Production Variances to PA
  35. 35. Actual Values Overview  Flow of Actuals in Profitability Analysis  Overview  Flow from the Sales and Distribution (SD) Module  Flow from Billing Document  Flow from the FI/MM – direct postings  General Ledger Posting  MM Postings  Flow from the Product Costing  Settlement of Production Variances to PA
  36. 36. Product CostProduct Cost ControllingControlling Profitability AnalysisProfitability Analysis COCO Standard Cost Estimate Revenues Discounts Overhead CostOverhead Cost ControllingControlling • • Cost CentersCost Centers • Internal OrdersInternal Orders Profit. segments Cost and Revenue Element Accounting Flow of actual values in Profitability Anal. FIFI COCO PAPA Product Cost Collector SDSD MM
  37. 37. Quantity Revenues Sales deductions Cost of Goods Sold Freight costs Inventory re-valuation Direct Posting fromDirect Posting from FIFI Source Transaction Value Field Billing DocumentBilling Document Sources of value fields
  38. 38. Actual Values Overview  Flow of Actuals in Profitability Analysis  Overview  Flow from the Sales and Distribution (SD) Module  Flow from Billing Document  Flow from the FI/MM – direct postings  General Ledger Posting  MM Postings  Flow from the Product Costing  Settlement of Production Variances to PA
  39. 39. Business process VV AA LL UU FF LL OO WW 4,975.00- Cost of Goods Sold 462002 Inventory Inventory - Finished Product (FG) 119430 4,975.00 Goods Issue MMMM Flow from sales and distribution (1) E Stock Change Stock COCO PAPA FIFI NO POSTING
  40. 40. Flow from sales and distribution (2) Business process VV AA LL UU FF LL OO WW Sales/Billing SDSD Receivables … 10,000 Sales 810000 10,000 - E COCO PAPA FIFI Cost of Goods Sold Standard Price Product Cost Estimate +
  41. 41. Actual Values Overview  Flow of Actuals in Profitability Accounting  Overview  Flow from the Sales and Distribution (SD) Module  Flow from Billing Document  Flow from the FI/MM – direct postings  General Ledger Posting  MM Postings  Flow from the Product Costing  Settlement of Production Variances to PA
  42. 42. Flow from FI/MM VV AA LL UU FF LL OO WW E COCO PAPA FIFI
  43. 43. Flow from FI/MM VV AA LL UU FF LL OO WW Accr. GR/IR 219914 15.00 Demurrage &Detention 484013 15.00 - E COCO PAPA FIFI
  44. 44. Actual Values Overview  Flow of Actuals in Profitability Accounting  Overview  Flow from the Sales and Distribution (SD) Module  Flow from Billing Document  Flow from the FI/MM – direct postings  General Ledger Postings  MM Postings  Flow from the Product Costing  Settlement of Production Variances to PA
  45. 45. Flow from CO-PC Delivery Goods Issues of materials from stock Confirmations/ activity allocation Delivery tostock Warehouse ‘Production Order’ Plan costs Actual costsProduct Costing Calculate variances COCO PCPC COCO PCPC MMMM ... ... Variances FIFI COCO PAPA + Settlement
  46. 46. Flow from CO-PC Variance Category PA Assignment lines Value FieldCost Element Group + + +
  47. 47. Module 1: Overview Module 2: Profitability Management Table of contents Module 5: Planning Module 3: Master Data Module 4: Actual data flow Module 6: Information System Course Map
  48. 48. Report Output Drilldown List Detail List
  49. 49. Course Summary You should now:  Have an understanding the functions in Profitability Analysis.  Understand CO-PA structures and master data.  Identify the source of actual values.  Understand planning.  Use the CO-PA information system.

×