openSAP_plc1_Week_02_All_Slides.pdf

Week 2: Basic Tool Functions Part I
Unit 1: How to Structure Part I

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© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
How to Structure Part I
Overview
Organize your work Create your costing structure Experience the usability
▪ Projects, calculations and
calculation versions
➢Flexibility
▪ Costing structure maintenance
➢Efficiency
▪ Different ways of creating a costing
structure
➢Openness

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▪ Projects organize calculations and versions for
product cost estimates and simulation.
▪ A project can contain any number of
calculations and their corresponding calculation
versions.
▪ Each calculation has at least one version, and
can have an unlimited number of calculation
versions.
▪ Versions can be frozen.
▪ A version contains the costing structure with
the items to be costed.
Structure objects: project – calculation – version
Version
Calculation 1
Project
Calculation 3
Version 2
Version 1
Version 1
Project
Calculation Version 1
Version 2
Component
Component
Material …
Re-Use
Project
Calculation 2
Project
Calculation Costing structure item
Legend

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▪ Provides project attribute inheritance to new
calculations and versions
▪ Determines the authorizations for the project
and the related calculations and versions
▪ Foundation for reporting and simulation
Structure object: project

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▪ The calculation name and the controlling area
are defined for the entire calculation, and
therefore apply to all versions.
▪ All other data (such as total quantity, costing
structure, costs, several time stamps) can differ
between calculation versions.
▪ A version has time stamps to manage valuation
date and master data updates.
Structure object: calculation

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▪ The costing structure makes up the hierarchical
structure of a calculation version such as bill of
materials and routings that contain the items to
be costed.
▪ Each item is assigned to an item category (icon
in costing structure tree).
▪ The item details are dynamic according to the
item category that is marked in the costing
structure.
Structure object: version

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Structure object: costing structure item
▪ Document, material, internal and
activities, subcontracting, business
process, resources and tools, variable
item, text item, referenced version
▪ Different item details due to category
▪ General data, e.g. organizational data, and
comment field
▪ Quantities and related Unit of Measure,
e.g. total quantity, base quantity, lot size
▪ Prices, e.g. variable, fixed, price unit, price
source, confidence level, multi-currency, local
content
Item categories Item details

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Different ways of creating a costing structure
Import document structures, bills of materials (material BOM,
engineering BOM, order BOM, manufacturing BOM) , and
routings from SAP S/4HANA and SAP ECC
Import from Microsoft Excel
Integration across applications – flexibly adaptable to your needs
Create a structure from scratch, cut, copy, and paste items
within one and across different calculation versions
▪ Import a structure to create a calculation as
a whole, or to update an existing costing
structure at every level
▪ Import from multiple systems

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▫ Extensibility example: Integration of SAP Product
Lifecycle Costing with SAP Engineering Control Center
(single repository for product data generated out of
different engineering authoring tools)
Flexibly adaptable to your needs – integration across applications (examples)
▫ Extensibility example: Integration of SAP Product
Lifecycle Costing with SAP ECC Sales & Distribution
R&D – optimize product development cost Sales – optimize quotation costing

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Flexibly adaptable to your needs – Machine Learning (example)
Plausibility Check Report
▫ Check your calculations quality by running the Plausibility
Check Report that is adaptable to the customer context
(SAP Engineered Service: Quality Checker and Plausibility
Check Report Extension)
▫ All items of a given calculation version will be checked based
on the patterns learned from historical calculation versions.
▫ Deviations from those patterns are anomalies, which indicate
potential errors, such as:
▫ Implausible material prices
▫ Implausible activity durations
▫ Missing items that are usually present under such
assemblies
▫ Unusual cost shares

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System demo

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12
SAP Confidential
Key
Learnings
Projects, calculations, and versions to organize your work
and as a foundation for reporting and analysis
Import bill of materials and routings from multiple sources
into one costing structure, greater data transparency and
consistency
Flexible and efficient maintenance: autocompletion, context-
sensitive editing, search, filter, highlighting, mass change, and
layouts, ease-of-use for complex scenarios

Contact information:
open@sap.com
Thank you.

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Unit 2: How to Structure Part II

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How to Structure Part II
Overview
Manage structure objects Advanced structure objects Variant Matrix
▪ Cockpit view ▪ Define variant matrix
▪ Simulate and calculate variant mix
▪ Lifecycle versions
▪ Variants

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▪ Manage your projects, calculations and
calculation versions and history centrally in the
Cockpit view
▪ Create, open, copy, rename, and search
features, and move calculation versions to
other projects
▪ Icons to identify structure object types
▪ Advanced structure objects: lifecycle versions,
variant matrix
Manage structure objects
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2

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▪ Define project lifecycle volumes as well as
material and activity price surcharges
▪ Mass generation of the lifecycle versions
Advanced structure object: project lifecycle

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▪ Define variant matrix based on a base version,
the “super bill of material”
▪ Simulate and calculate different variant mix by
editing quantities and occurrence
▪ Compare all variants in one view, the “Variants”
view
▪ Create new variants based on existing variants
in the same variant matrix
• (Mass-) Generate new calculation versions
based on variants
▪ Visualize and accept changes in the variant
matrix after changes to the variant base version
Advanced structure object: variant matrix

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System demo

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SAP Confidential
Key
Learnings
Manage your projects, calculations and calculation versions
and history centrally in the Cockpit
Efficient costing and simulation of project lifetime calculations –
Flexible framework for planned demand and production volumes,
and material and activity price surcharges
Efficient costing and simulation of variant mix – Flexible
framework for calculating variants by editing quantities and
occurrence

Unit 3: How to Create Master Data

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Calculation
Create a costing structure from SAP
ERP, SAP PLM, Excel, other data
sources, or manually from scratch, and
analyze the cost breakdown
Administration
Maintain and
manage all master
data and settings in
one conveniently
structured view
Project
Manage the costing project details
My Home
Access the recently used calculation
versions with one click
Cockpit
Manage projects, calculations, and
calculation versions at one central
place
How to Create Master Data
Administration view

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Sources of master data
1. Local Master Data 2. Replicated Master Data
Calculation Version-Specific
Master Data

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Costing and Analysis
▪ Accounts, Account Groups, Material
Account Determination, Valuation
Classes, Overhead Groups, Costing
Sheets, Cost Component Splits
Master data definitions in administration view
Finance
▪ Controlling Areas, Company Codes,
Profit Centers, Business Areas, Cost
Centers, Activity Types and Account
Determination, Activity Prices
Logistics
▪ Plants, Work Centers, Processes,
Material Types, Material Groups,
Materials (General Data), Materials
(Plant-Specific Data), Material Prices,
Customers, Vendors
Global Settings
▪ Languages, Currencies, Exchange
Rate Types, Currency Exchange
Rates, Units of Measure, Material
Price Sources, Activity Price
Sources, Global Default Values

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System demo – Administration view

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Using master data in calculations

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Using master data in calculations

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System demo – Master data in calculations

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Some master data is mainly initially maintained
during system setup
▪ Important: specific sequence according to the
dependencies
Master data: initial setup, regular maintenance
Other master data is frequently maintained
and new entries are added regularly.
Languages
price sources
currencies, units of measure
currency exchange rates and types
controlling areas
company codes, plants
business areas, profit centers
accounts, account groups
activity types, processes, work centers
overhead groups, valuation classes
component splits, costing sheets
global default values
material types, material groups
material data (general and plant-specific)
material prices, activity prices
customers, vendors
material prices, activitiy rates
material (general data, plant-specific data),
customers, vendors
account groups
costing sheets, cost component splits
global default values
user-specific values
default values

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Almost all master data that can be
maintained locally can also be replicated
from SAP ERP
▪ Typically, only the fields of a master data object
are replicated that are relevant to product
costing with SAP PLC
▪ Further sources of master data and additional
source fields are planned to be added in the
future
Master data replication from SAP ERP

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Custom fields for master data (extensibility)

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System demo – Creating custom field for master data

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SAP Confidential
Key
Learnings
Which types of master data are used and where they come
from in SAP Product Lifecycle Costing
How master data is used in calculations
How master data can be displayed, created, and maintained
How master data can be extended by custom-specific fields

Unit 4: How to Calculate

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How to Calculate
Overview
The calculation engine is the cornerstone of SAP Product Lifecycle Costing. To make best use of
the full product functionality, it is important to understand the main calculation algorithms and the
most important fields which influence calculated results.
Import the costing structure
from SAP ERP, Excel, or any
other data source such as
PTC Windchill, or manually
create the costing structure
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4
Simulate cost estimates and create
further versions with more detailed
and up-to-date price information
Calculate and save a first cost
estimate as an initial basis
Determine material and activity prices
according to defined pricing strategy, with
SAP ERP, other source, or locally
maintained prices, or manually set prices
in a calculation

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Calculation algorithm
▪ Bottom up calculation
▪ System calculates using quantity (incl. UOM) for
one assembly * price (incl. UOM) * costing sheet
= total costs for item
▪ Indicators are relevant such as lot size, base
quantity, and other indicators
How to Calculate
How the system calculates
Quantity
▪ The total quantity is defined by the quantity for one
assembly in accordance with the base quantity and
lot size.
▪ The unit of measure for the quantity is also
considered.
Costing Sheet
▪ Second dimension to add costs to the structure
▪ Used to add costs (overhead costs) which cannot
be assigned directly to an item based on a set of
rules maintained in the admin view
Currency
▪ Currency types: transaction currency per item
and a reporting currency per calculation versions
▪ Reporting currency: currency used to calculate
the version total costs. The corresponding
exchange rates and types are taken from the
admin view based on the valuation date

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How to Calculate
Calculation algorithm
Total
Quantity per
UOM X
Quantity for
ONE
Assembly x
Price/UOM
X Base
Quantity
/ Lot Size
=
Total Costs
and Total
Quantity

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▪ Material items: depending on PLANT or GENERAL entry in admin view and validity date
▪ Internal activity: depending on controlling area, details in admin view, and validity date
How to Calculate
How a material price or an internal activity is priced
Material Mat Plant Project Valid To Price
Internal
Activity
Cost
Center
Controlling
Area
Activity
Type
Project Valid To Rate
The system calculates each item based on its settings, e.g. if a material item has a material master price.
The sequence of the pricing strategy AND the validity of the material master price defines which price is
found for the item

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How to Calculate
How overheads are applied to the structure
Material Overhead
Material Controlling
Area
Plant Account*
Account Account
Group
Overhead Base
Overhead
Base
Overhead Amount /
Percentage
Costing Sheet
The system calculates each item based on its settings, e.g. a material item has an account. The account
is assigned to an account group. The account group is used as an overhead base. The overhead base row
gets an overhead
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4

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How to Calculate
Lot size and base quantity
1*10=10 10/3=3,3~4*10=40 10*10/3=33,3
1 PC fixed
The Lot size defines cost such as
set up costs per lot. A machine
needs to be set up every 3 pieces.
The Base quantity specifies the
amount you need for the quantity
for one assembly. 10 min for 3
pieces per 10 assemblies.
The Fixed quantity is a fixed
quantity, not taking the quantity
for one assembly into account.
Lot Size Base Quantity Fixed Quantity

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Activates or deactivates the item
and thereby adjusts the total
costs
How to Calculate
Activate/Deactivate – Valuation Date – Update Button
Determines prices and rates per
valuation date
Gets new prices and rates based
on valuation date and
recalculates
Activate/Deactivate Valuation Date Update Button
These items influence how the system calculates the results of the calculation

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▪ Revenue for part customer-financed items can be entered as negative a value.
This value will influence the total costs. If you do not want this, you need to
deactivate the item.
▪ Investments can be created in the system using a separate account and the item
category “variable item.” Alternatively, investments can be created by using a
separate calculation version on project level.
How to Calculate
How to cover investments and revenue

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Calculation information can be found in the side panel under the category “Calculated Values”
▪ Cost per total quantity = cost w/o overheads
▪ Total cost = cost with overheads
How to Calculate
Where to find calculation information

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How to Calculate
System demo

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SAP Confidential
Key
Learnings
The system calculates bottom up, taking different indicators into
account
Different types of currencies can be used (reporting and
transaction currency)
The system provides several quantity fields that are relevant
for the calculation and can be influenced
Costing sheets are used to add overhead costs to the calculation
Dependent on several entries (valuation date, plant,
controlling area, etc.) the total costs are calculated.
Investments and revenue can be covered by the solution.
The automatic price rate determination defines the specific
total cost
How to Calculate

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