3. CO Components
Profitability Analysis
Profitability Analysis
Profit
Center
Accounting
Human
Resources
Financial
Accounting
FI
S&D
Sales and
Materials
Management
Materials
Management
CO
PA
CO
OM
EC -
PCA
Distribution
Cost Element Accounting
CO
CEL
HR MM SD
Financial
Accounting
Cost Element Accounting
Cost centers Internal
orders
Profitability
segment
Asset Revenues
Expense
Activity
types
Internal Orders
Company Code (9100 A Ltd, 9200 A1 Ltd)
Operating concern (9100 – A group)
Overhead Cost Controlling Product Cost
Controlling
Standard
Cost Estimate
CO Production
Order
Controlling area (9100 – A group)
4. Overhead Cost Management
Cost Element Accounting Cost Center Accounting
Internal Orders
Cost Elements
Reconcilation with FI
Hierarchies
Cost Centers
Stat. Key Figures
Activity Types
Internal Orders
Orders
Resource Planning
Multiple Currency
Multiple Valuation
Analyze of Plan/
Target/Actual Costs
5. Organizational Units & Master Data
A1 Ltd
9200
A Ltd
9100
HQ
1000
Cost Centers Purchasing
13…
Gen
Services
14…
Company Codes
Orders Cost Objects
Sales and
Marketing
15…
R & T
16…
Other Cost Objects
Operating Concern
Controlling Area
A Grp Operating
Concern (9100)
A Grp Controlling
Area (1000)
Ethylene
Propylene
Pharma Polyolefins Power
Teleco
mmunic
ation
Informa
tion
technol
ogy
Corporate
common
Profit Centers
6. Cost Centre Standard Hierarchy
xx01 - Production
xx02 - Maintenance
xx03 - Utilities
xx04 – Engineering & Projects
xx05 – Quality Assurance
xx06 – Production Planning
xx07 – Production Handling
xx08 –Warehousing & Storage
xx09 –Executive Office
xx10 - Finance
xx11 – Human Resources
xx12 – Information Technology
xx13 - Purchasing
xx14 – General Services
xx15 – Safety & Security
xx16 – Sales & Marketing
xx17 – Research & Technology
xx18 – Company General
A group
Standard
Hierarchy
A Ltd
9100
A1 Ltd
9200
A11 Ltd
9300
A111 Ltd
9400
9101000 – Production Common
9101011 – EG- 1 Plant
9110000 – Finance
9111000 – Human Resources
9111001 – Housing Services
9111002 – Training Centre
Functional Area
Company
Enterprise Cost Center
7. Product Cost
Product Cost
Controlling
Controlling
Profitability Analysis
Profitability Analysis
CO
CO
Standard
Cost Estimate
Revenues
Discounts
Cost Collector
Overhead Cost
Overhead Cost
Controlling
Controlling
•
• Cost Centers
Cost Centers
•
Profit. segments
Cost and Revenue Element Accounting
Flow of actual values in
Profitability Analysis
FI
FI
CO
PA
Product
SD
ML
8. Reporting Dimensions
Customer
Region
Sales office
Business Unit
Revenue
Cost
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
9. Flow from sales and distribution
Business
process
V
V
A
A
L
L
U
U
F
F
L
L
O
O
W
W
Sales/ Billing
SD
SD
Receivables
…
10,000
Sales
810000
10,000 -
E
CO
PA
FI
FI Cost of Goods
Sold
Standard
Price
Product Cost
Estimate
+
11. Flow from CO-PC
Goods Issues
of materials from
stock
Confirmations/
activity allocation
Deliv
ery
to
stock
Warehouse
‘Production Order’
Plan costs
Product Costing
Calculate
variances
CO
PC
CO
PC
MM
Delivery
Variances
...
...
FI
CO
PA
+Actual costs
Settlement
