Cooper Tire implemented SAP Material Ledger as part of their initial SAP implementation in order to gain visibility into actual material costs by product, production efficiencies by product, standard and actual inventory values by product, and product level profitability reporting without intercompany markups. Implementing Material Ledger upfront provided a clean system with no open orders and allowed Cooper Tire to have consistent valuation strategies across companies as well as better product cost visibility and analysis on a global level.
AUC is Asset under construction where some assets are in construction phase and cost needs to
capture through internal order for the time being. Once asset is fully completed then cost would
be transferred to another cost object (E.g. Cost center, Order etc...) and settle with final asset.
E.g. XYZ Company constructing building for their office. While construction many expenses are
attached to it. Till the time it is created we cannot charge it in building account hence we need to
create AUC account where cost will be stored.
Assets under construction (AUC) are a special form of tangible assets. They are usually displayed
as a separate balance sheet item and therefore require a separate account determination and their
own asset classes. During the construction phase of an asset, all actual postings are assigned to the
AUC. Once the asset is completed, a transfer is made to the final fixed asset
Account-based COPA is also called a hybrid of general ledger and costing-based COPA. In Account based COPA, you can get a report that is reconciled and consistent with financial accounting. Sales, markeitng and product management details can be obtained from it.
Combined COPA allows organizations to analyze profit-related transactions (such as the invoicing of a customer or consumption through delivery), both in the form of value fields and also in the form of accounts to which posting takes place in financial accounting.
AUC is Asset under construction where some assets are in construction phase and cost needs to
capture through internal order for the time being. Once asset is fully completed then cost would
be transferred to another cost object (E.g. Cost center, Order etc...) and settle with final asset.
E.g. XYZ Company constructing building for their office. While construction many expenses are
attached to it. Till the time it is created we cannot charge it in building account hence we need to
create AUC account where cost will be stored.
Assets under construction (AUC) are a special form of tangible assets. They are usually displayed
as a separate balance sheet item and therefore require a separate account determination and their
own asset classes. During the construction phase of an asset, all actual postings are assigned to the
AUC. Once the asset is completed, a transfer is made to the final fixed asset
Account-based COPA is also called a hybrid of general ledger and costing-based COPA. In Account based COPA, you can get a report that is reconciled and consistent with financial accounting. Sales, markeitng and product management details can be obtained from it.
Combined COPA allows organizations to analyze profit-related transactions (such as the invoicing of a customer or consumption through delivery), both in the form of value fields and also in the form of accounts to which posting takes place in financial accounting.
Automatic Vendor payment advice notes by email with attachment when a payment is made via APP (Automatic payment program by using T-code F110 and email a sap script form as a PDF attachment along with the mail body in the desired language.
SAP Accounting powered by SAP HANA – Moving controlling and finance closer to...John Jordan
New users have traditionally struggled to understand the way SAP separates Financial Accounting and Management Accounting where most legacy systems see the two as one. While it’s easy enough to understand how a payroll account flows from the profit and loss statement into cost center accounting because the account information stays the same, the situation becomes more challenging as a revenue account flows into profitability analysis and is transformed into a value field, or a cost of goods sold account becomes multiple value fields depending on the cost components involved. In its latest product release, SAP is bringing the two worlds closer together. In this session we’ll look at how SAP is addressing these issues with its new product SAP Accounting powered by SAP HANA, part of SAP Simple Finance. This presentation will delve into how the requirements for internal and external reporting are converging and how this convergence impacts SAP Controlling.
This session will cover:
*Changes to report revenue and cost of goods sold by the CO-PA dimensions and how break out the cost of goods sold into multiple accounts
*How overhead is captured and allocated either from cost centers to CO-PA dimensions (assessment) or from high-level to lower-level CO-PA dimensions (top-down distribution)
*The underlying architecture and how FI and CO line items are linked.
*New reports that visualize the transformation of expense into cost of goods sold, work in process, and assets under construction
*How the period close process has been accelerated in SAP Controlling
Get a sneak peak at the first planning applications that allow you to plan costs according to the new paradigm of SAP Simple Finance, where the account is the leading dimension for all accounting activities.
Blogs on Document Splitting at www.veritysolutions.com.au
Document Splitting is a very powerful feature delivered by SAP ECC.
Previous to SAP ECC, if new fields were required to General Ledger SAP had to deliver these new fields in Special Purpose Ledger tables. Profit Centre Accounting in R3 was Special Purpose Ledger table 8*, Joint Venture Accounting was ledger 4*. This essentially meant that data had to be copied from General Ledger table GLT0 to special ledger tables so these could be reported upon. However, technical glitches in code and incorrect usage of functionalities caused imbalances between the main ledger GLT0 and the special purpose ledgers.
SAP customers who wanted to expand the functionality of General Ledger to cater to special business requirements (like reporting General Ledger with another fiscal year variant) had to create custom Special Purpose Ledger tables. For example, if a customer wanted to report by two fiscal year variants, they could report one variant using General Ledger and the other variant using Special Purpose Ledger.
All this disparate ledgers reported the same source information in different views. Customers had to execute several month end jobs to ensure synchronisation of data across all these ledgers. Differences in balances and information between ledgers led to delays in month end close and reporting.
With SAP ECC new GL, SAP Customers can add new fields (which SAP calls “scenarios”) into General Ledger. This allows customers to perform, for example, Profit Centre Accounting and Reporting within General Ledger.
With SAP ECC new GL, SAP Customers can add new ledgers (which SAP calls “parallel accounting”) into General Ledger. This allows customers to report, for example, the same General Ledger data in multiple fiscal year variants.
This replication of data happens in real-time. SAP customers no longer need to execute month end jobs to synchronise data between different ledgers.
Contains most of the standard SAP CS process, related data objects, configuration aspects in Logistics modules SD, PM, and integration touchpoints with FI-CO.
When good receipt (GR) and invoice receipt (IR) is performed, an accounting document gets generated. Movement of material leads to the automatic generation of accounting document and this is referred as MM FI integration.
Quick sap co configuration Internal OrderCapgemini
Internal order is a virtual place for collecting/pooling the costs of a particular activity/task. i.e. it is a method to collect those costs and business transactions related to the task/activity. It is a means of tracking costs of a specific job, service, or task. Periodically the costs which are pooled in an internal order can be settled to an asset or to a cost center or to a GL Account or to an order. Thus, while recording you need not analyze the costs. Just record and pool the costs in internal order. After that (generally at the end of the month) these costs are analyzed and settled for relevant elements (like asset or cost center etc).
This method of recording and settling the costs helps in analyzing the costs of cost center wise, profit center wise or cost element-wise. This level of monitoring can be very detailed but allows management the ability to review Internal Order activity for better-decision making purposes.
Case study material ledger implementation lessons learnedJohannes Le Roux
Material Ledger as implementaion as part of their initial SAP implementation or during a future rollout phase. In this session we’ll cover:
Why implementing SAP Material Ledger as part of your initial SAP implementation will Levegage Material Ledger as a springboard to SAP Profitability and Cost Management software
Automatic Vendor payment advice notes by email with attachment when a payment is made via APP (Automatic payment program by using T-code F110 and email a sap script form as a PDF attachment along with the mail body in the desired language.
SAP Accounting powered by SAP HANA – Moving controlling and finance closer to...John Jordan
New users have traditionally struggled to understand the way SAP separates Financial Accounting and Management Accounting where most legacy systems see the two as one. While it’s easy enough to understand how a payroll account flows from the profit and loss statement into cost center accounting because the account information stays the same, the situation becomes more challenging as a revenue account flows into profitability analysis and is transformed into a value field, or a cost of goods sold account becomes multiple value fields depending on the cost components involved. In its latest product release, SAP is bringing the two worlds closer together. In this session we’ll look at how SAP is addressing these issues with its new product SAP Accounting powered by SAP HANA, part of SAP Simple Finance. This presentation will delve into how the requirements for internal and external reporting are converging and how this convergence impacts SAP Controlling.
This session will cover:
*Changes to report revenue and cost of goods sold by the CO-PA dimensions and how break out the cost of goods sold into multiple accounts
*How overhead is captured and allocated either from cost centers to CO-PA dimensions (assessment) or from high-level to lower-level CO-PA dimensions (top-down distribution)
*The underlying architecture and how FI and CO line items are linked.
*New reports that visualize the transformation of expense into cost of goods sold, work in process, and assets under construction
*How the period close process has been accelerated in SAP Controlling
Get a sneak peak at the first planning applications that allow you to plan costs according to the new paradigm of SAP Simple Finance, where the account is the leading dimension for all accounting activities.
Blogs on Document Splitting at www.veritysolutions.com.au
Document Splitting is a very powerful feature delivered by SAP ECC.
Previous to SAP ECC, if new fields were required to General Ledger SAP had to deliver these new fields in Special Purpose Ledger tables. Profit Centre Accounting in R3 was Special Purpose Ledger table 8*, Joint Venture Accounting was ledger 4*. This essentially meant that data had to be copied from General Ledger table GLT0 to special ledger tables so these could be reported upon. However, technical glitches in code and incorrect usage of functionalities caused imbalances between the main ledger GLT0 and the special purpose ledgers.
SAP customers who wanted to expand the functionality of General Ledger to cater to special business requirements (like reporting General Ledger with another fiscal year variant) had to create custom Special Purpose Ledger tables. For example, if a customer wanted to report by two fiscal year variants, they could report one variant using General Ledger and the other variant using Special Purpose Ledger.
All this disparate ledgers reported the same source information in different views. Customers had to execute several month end jobs to ensure synchronisation of data across all these ledgers. Differences in balances and information between ledgers led to delays in month end close and reporting.
With SAP ECC new GL, SAP Customers can add new fields (which SAP calls “scenarios”) into General Ledger. This allows customers to perform, for example, Profit Centre Accounting and Reporting within General Ledger.
With SAP ECC new GL, SAP Customers can add new ledgers (which SAP calls “parallel accounting”) into General Ledger. This allows customers to report, for example, the same General Ledger data in multiple fiscal year variants.
This replication of data happens in real-time. SAP customers no longer need to execute month end jobs to synchronise data between different ledgers.
Contains most of the standard SAP CS process, related data objects, configuration aspects in Logistics modules SD, PM, and integration touchpoints with FI-CO.
When good receipt (GR) and invoice receipt (IR) is performed, an accounting document gets generated. Movement of material leads to the automatic generation of accounting document and this is referred as MM FI integration.
Quick sap co configuration Internal OrderCapgemini
Internal order is a virtual place for collecting/pooling the costs of a particular activity/task. i.e. it is a method to collect those costs and business transactions related to the task/activity. It is a means of tracking costs of a specific job, service, or task. Periodically the costs which are pooled in an internal order can be settled to an asset or to a cost center or to a GL Account or to an order. Thus, while recording you need not analyze the costs. Just record and pool the costs in internal order. After that (generally at the end of the month) these costs are analyzed and settled for relevant elements (like asset or cost center etc).
This method of recording and settling the costs helps in analyzing the costs of cost center wise, profit center wise or cost element-wise. This level of monitoring can be very detailed but allows management the ability to review Internal Order activity for better-decision making purposes.
Case study material ledger implementation lessons learnedJohannes Le Roux
Material Ledger as implementaion as part of their initial SAP implementation or during a future rollout phase. In this session we’ll cover:
Why implementing SAP Material Ledger as part of your initial SAP implementation will Levegage Material Ledger as a springboard to SAP Profitability and Cost Management software
Resentation for PeopleSoft SCM users group comparing and Standard and Actual Costing for Production Inventories using PeopleSoft Cost Managment functionality.
Running a successful manufacturing business often means being
able to adopt new technology fast and to gain a strong
competitive advantage. ERP is one of the fastest growing
technology that manufacturers are implementing in their
businesses. If you are on a hunt for a new manufacturing ERP
system or are considering changing your current system, this
short guide will let you know the must-have features in ERP -
CBS suite on SAP Business one enables you to manage the entire manufacturing, supply chain efficiently for domestic and global original equipment manufacturers (OEMs) and after-markets.
E-Tourism
Topic: Strategic Hospitality Technology Investment
Overview
Return on investment (ROI)
Reducing expenses and increasing profits
Cash flow and costs
System selection process
Beautifying Inventory and Service Levels at a Cosmetics CompanyTristan Wiggill
Beautifying Inventory and Service Levels at a Cosmetics Company by James Fusco, CPIM.
Presented at the 37th Annual SAPICS Conference for supply chain professionals, Sun City, South Africa on 1 June 2015
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
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Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
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Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
3. Topics
3
• Cooper Tire Strategy and Vision
• Implementation Options
• Lessons Learned at Cooper Tire
• Springboard to SAP Profitability and Cost Management
• Summary
4. Cooper Tire Strategy and Vision
4
• Cooper Tire weighed the pros and cons of activating SAP
Material Ledger as part of their initial SAP implementation or
during a future rollout phase. In this session we’ll cover:
• Why Cooper Tire implemented SAP Material Ledger as part of
their initial SAP implementation
• Leveraging Material Ledger as a springboard to SAP
Profitability and Cost Management software
• Proper master data setup lessons learned
• Best practices for configuring Material Ledger for long term
requirements
• Find out what Cooper Tire would advise companies
embarking on this process including importance of
understanding the impact on finance and non-finance
process teams
5. Cooper Tire Implementation Timeline
5
• 2009: Cooper Tire made the decision to implement an ERP
system
• Feb. 2010: SAP selected
• Aug. – Oct. 2010: Blueprint/requirement gathering
• Requirements gathering process led to decision to
implement SAP Material Ledger
• Oct. 2011: 1st Go Live was in the Mickey Thompson division
(Sales & Dist.)
• Feb. – Nov. 2013: 2nd Go Live in Cooper US (Mfg, Sales, Dist)
• 2014 – 2015: 3rd – 5th go lives in Cooper Mexico, Europe, &
Asia (Mfg, Sales, Dist)
6. Weighing the Pros and Cons of the SAP Material Ledger
SAP – Material Ledger
• Traceability of Actual Material Cost
by product
• Purchase Price Variance
• BOM Usage Variance
• Production Usage Variance
• COGS at actual cost
• Traceability of production
efficiency by product
• Report Standard & Actual Value of
Inventory by product
• Product level Profitability/Gross
Margin Reporting without
Intercompany Markup
6
SAP – Without ML /LEGACY
• NO Traceability of Actual Material
Cost by product
• Purchase Price Variance
• BOM Usage Variance
• Production Usage Variance
• COGS at actual cost
• NO traceability of production
efficiency by product
• NO Report Standard & Actual
Value of Inventory by product
• NO Product level
Profitability/Gross Margin
Reporting without Intercompany
Markup
7. Material Ledger Implementation Basics
• Support externally calculated Double Extension LIFO
• Value Inventory in Multiple Currencies
• Support Different Global Statutory Reporting requirement by
Company Code (FIFO/LIFO)
• Actual Cost by Cost Component by product
• Actual Cost of Material by Product
• Actual Cost of Labor by Product
• Actual Cost of Depreciation by Product
• Actual Cost of Sales
• Actual Cost Component
7
8. Material Ledger Implementation Basics (cont.)
• During the accounting period all material movements are valued
at a standard cost and recorded by material in the material
ledger
• Price Differences (Variances) for each material movement are
recorded
• At the end of the period an actual cost (periodic unit price) is
calculated for each material though out multiple levels of
product produced
• Revaluation of Inventory and Cost of Goods Sold
• Distribution of usage variance is allocated to product
• Revolution of COGS
8
9. Cost Planning Production Actual Costing
Profitability
Analysis
Evaluating master
data
Bill of materials
Routing
Planned prices
Planned activities
Planned yield
Recording logistical
information for
controlling:
Consumptions
Yield & scrap
Purchasing & supplier
invoices
Activities & time
recording
Recalculating the
value flow using
Actual quantity
structure
Actual activity
recording
Multi-level value flow
Actual raw material
prices
Consumption
Revaluation
Distribution of Usage
variances
Reporting Costs and
Contribution Margins
Production costs
Sales Revenues
Actual cost
Component
Dimensions
Regions
Channels
Customers
Product Hierarchy
Streamlining the Cost Process
• SAP Material Ledger streamlined their cost process into a fully
integrated process as seen below:
9
11. 11
• Integrate and align cost structure to reduce cost
• Provides global unit cost information across plants and legal
entities providing an global transparent view of costs and
variances
• Analytical information by scorecards, statutory reports, and
performance analysis
• Provide accurate profitability information
• Maximizes corporate profitability to grow market capitalization
and shareholder value
• Integrate planning with a single model across the enterprise to
improve organizational alignment and financial performance
• Provide real-time information quickly
Material Ledger Benefits
12. Cooper Tire Value Strategy
Cooper Value Strategy Proposal
• If we had to do it again, we would use
the following strategy
Currency /
Visional
Company code
Currency
Legal 10
Group / legal 30
Profit Center 32
Cooper Value Strategy
• Legal valuation
• Legal group valuation
• Group valuation without markup
Currency /
Visional
Company code
Currency
Legal 10
Group / legal 30
Group 31
• Why we would propose a different strategy:
• Less maintenance – Only two cost roles
• Profit center valuation not needed – not using profit center transfer price
12
15. SAP Material Ledger Without Revaluation
15
Cooper Implement Material ledger without revaluation
What Cooper did was used the
accrual method but report the
accrual as part of there inventory
value in there balance sheet
using an inventory direct posting
account
16. SAP Material Ledger Without Revaluation
16
• Cooper implement SAP Material ledger without revaluation
• Used the accrual method, but reported the accrual as part of
their inventory value in their balance sheet using an
inventory direct posting account
www.sap.com AC530 - Training actual costing/Material ledger
17. SAP Material Ledger Without Revaluation (cont.)
17
• If you decide not to revaluate your materials with the actual
price, the amount which would have been posted to the material
stock account is posted to another price difference account
using posting key LKW
• It is up to you which account you choose for this posting
18. Topics
18
• Cooper Tire Strategy and Vision
• Implementation Options
• Lessons Learned at Cooper Tire
• Springboard to SAP Profitability and Cost Management
• Summary
19. • Two methods to implement the Material ledger
• Activate Material Ledger to track material postings
• Ability to do multi-currency inventory valuation
• Recording business transaction
• Structuring value chain – direct product only
• Activate Actual Costing
• Revaluation of inventory based on actual cost
• Multi level variance value chain
• Gross margin analysis using both standard and
actual cost
Implementation Options
19
20. Pro ‘s Con’s
No migration needed activation of all plant for company at
once
High level of Discipline needed when using material ledger
Tracks variances across multiple product levels / plant and
company codes
Organization not ready for complicity and discipline
needed
Tracks purchase material price variances to finished
products on the basis of consumption
Additional training required
Provides historical information on actual cost to facilitate
the estimation of new standard costs from initial go-live
Ability to track multiple valuations and/or currencies at the
material level
Ability to revaluate inventory on the basis of real cost
calculation visibility of variances
Implementation as Part of Initial Phase
20
21. Pro ‘s Con’s
Low level of complexity after initial go-live Migration requirements
• Closing of all open production order
• Closing of all open purchase order
• Conversion and activation by plant
No discipline and restrictions to change cost after initial
go-live
Go-love migration long and slow process
Faster closing process after initial go-live No historical information on actual cost to facilitate the
estimation of new standard costs after initial go-live
Organization do not have to deal with complicity and
discipline after initial go-live
No ability to track multiple valuations and/or currencies at
the material level after initial go-live
No ability to tracks purchase material price variances to
finished products on the basis of consumption after initial
go-live
Implementation After Go live
21
22. Cooper Tire’s Decision to implement Material Ledger
SAP – Material Ledger
• Traceability of Actual Material Cost by
product
• Purchase Price Variance
• BOM Usage Variance
• Production Usage Variance
• COGS at Actual cost
• Traceability of Production efficiency by
product
• Report Standard & Actual Value of
Inventory by product
• Product level Profitability/Gross Margin
Reporting without Intercompany
Markup
22
SAP – Without ML /LEGACY
• NO Traceability of Actual Material Cost
by product
• Purchase Price Variance
• BOM Usage Variance
• Production Usage Variance
• COGS at Actual cost
NO Traceability of Production
efficiency by product
• NO Report Standard & Actual Value of
Inventory by product
• NO Product level Profitability/Gross
Margin Reporting without
Intercompany Markup
23. • Keep all companies with same valuation strategy
• Standard vs. moving average in Sales & Distribution
companies
• Visibility
• Needed better visibility of variance analysis across
production processes
• Better product cost
• Global product cost
• 1 time change management
• Big Bang (kind of)
• Clean System
• No open production order to delete and recreate
• No open purchase order to delete and recreate23
Cooper Tire’s Decision to implement Material Ledger
24. Topics
24
• Cooper Tire Strategy and Vision
• Implementation Options
• Lessons Learned at Cooper Tire
• Springboard to SAP Profitability and Cost Management
• Summary
25. Lessons Learned at Cooper Tire
25
• Avoid those who only believe Material Ledger is difficult
• SAP trainers
• Sapphire sessions
• Consultants
• Cooper Tire Accounting Managers
• Overkill
• Activity revaluation
• Distribution of usage variances
• Trusting the results
• Complexity
• Focus on benefits and future capabilities
• Look at complexity/timeline/cost implementing ML in future
26. Results/Gains from Implementing Material Ledger
26
• Impact of PPV on specific tire line
• Actual cost to support LIFO calculation
• Consolidated location to see In/Out transaction by material
• See actual cost of inventory by cost component
• Inventory valuation visibility without inter-company markup
• Ability to see actual product line profitability without
intercompany mark up’s
27. Results/Negatives from Implementing Material Ledger
27
• Massive volume of data
• Increased time-to-close by at least 1 day maybe more as more
plants go live
• Distribution of usage variances extremely time consuming
• Difficult to validate the accuracy of the posting at a high level
• Difficult for casual/non-users to comprehend
28. Material Ledger – Worth the Expense?
28
• Yes
• Love the level of detail, tons of information!
• No
• Takes too long, not worth the effort
• Maybe
• See the potential, can’t wait for full rollout to be complete
29. Cooper Tire Lessons Learned
• Make the final decision early
• Quality consultant/implementer
• Configure for all potential long term requirements
• Make decision what material will be included
• Actual costing
• Cost component structure
• Understand all ML component
• Integration: The impact that Material Ledger has on other
processes/teams
• Proper master data setup/conversion
• Cutover/client setups
• Ongoing validation/maintenance
29
30. Make The Final Decision Early
• Impacts Currency Profiles
• Based on setup will impact costing process
• Material Master Defaults
• Costing Variants
• Resources
• Make sure you have dedicated resources
• SME’s & Testing Validators
• Make sure test cycles fit material ledger test requirements
30
31. Quality Consultant/Implementer
• Closely review experience
• Check references
• Check results of prior ML implementations
• Contract through life of implementation and beyond
• Most issue happen 3-4 month after go-live
• Training cycle 3-4 months
• Process and discipline related
• Poor master data
• Poor closing processes
• Poor monitoring processes
31
32. Configure For All Potential Long Term Requirements
• Configure for Long Term Needs
• Currency profiles
• Actual cost component split
• LIFO / FIFO
• The impact that Material Ledger has on other processes teams
• Operations
• Inventory Management
• Sales & Distribution
• Basis
32
33. Cutover/Client Set Up
33
• Cutover/Client Set Up
• Demand quite system during client start ups
• Open/close clients to change default setting on price
determination during material load/extensions
• Ensure cutover team understands impact of improper ML
start up
• Master Data Setup
• Solid process established prior to go live
• Importance of status controls
• Product costing prior to material movements
34. Ongoing Validation/Maintenance
34
• Daily/weekly distribution of usage variances
• Set up detailed validation template
• Pick a raw material and follow it through a sale
• Set up high level validation template
35. Resources
35
• Do not underestimate the effort
• Cooper staffing
• One lead business analyst
• Included plant accountant in each implementation
• Learn the process
• Understand data flow and conversion
• One lead consultant – Make that sure that he/she knows
Material Ledger
• Due to conversion, support time ( 3 plus months) and training
required it could require additional business analyst
36. Topics
36
• Cooper Tire Strategy and Vision
• Implementation Options
• Lessons Learned at Cooper Tire
• Springboard to SAP Profitability and Cost Management
• Summary
37. Springboard to SAP PCM
37
• Integrated transaction and analytics solutions
• Totally integrated into transactional processing to PCM
• Cooper Tire phase II to integrate with PCM
Profitability
Analysis
Cost
Planning
Producti
on
Actual
Costing
Evaluating master
data
Bill of materials
Routing
Planned prices
Planned
activities
Planned yield
Recording logistical
information for
controlling:
Consumptions
Yield & scrap
Purchasing &
supplier invoices
Activities & time
recording
Recalculating the
value flow using
Actual quantity
structure
Actual activity
recording
Multi-level value
flow
Actual raw
material prices
Consumption
Revaluation
Distribution of
Usage variances
Reporting
PROFIT
Production costs
Sales Revenues
Actual cost
Component
Dimensions
Regions
Channels
Customers
Product
Hierarchy
Profitability&Cost
Management
Reporting Costs and
Contribution Margins
Being totally integrated into
transactional processing
materials ledger makes ideal
place for Calculating the direct
cost of product
Transferred to the profitability
segment component and
uploaded into SAP BOBJ &
PCM
Combining the strengths of the
controlling components of SAP
ERP with SAP BOBJ & PCM
38. 38
Profitability Analysis Ideal Staging Area
• Profitability Analysis is an ideal staging area for:
• Capturing revenue and sales data at the customer and
product level
• Furthermore, having functionality such as the materials
ledger makes the controlling component the ideal place for
calculating the actual direct cost of products
• Transferred to the profitability analysis component and then
loaded into SAP BusinessObjects Profitability and Cost
Management
• Combining the strengths of costing and profitability reporting
functionality provided a makes it easier to use the two solutions
in tandem, enabling organizations to tailor a cost and
profitability reporting solution to match their needs
39. 39
SAP Best Practice
• Integrate ECC, business intelligence and enterprise
performance management
• SAP BusinessObjects Profitability and Cost Management is the
selected solution on the SAP product road map for delivering
cost and profitability management
• These tools can also be used for detailed scenario modeling,
such as assessing how changing the price of an individual
product or the discount given to an individual customer impacts
profitability
• SAP uses integration with enterprise performance management
delivers true business performance optimization
40. Topics
40
• Cooper Tire Strategy and Vision
• Implementation Options
• Lessons Learned at Cooper Tire
• Springboard to SAP Profitability and Cost Management
• Summary
41. Tracks purchase
material price
variances to
finished products
on the basis of
consumption
Provides historical
information on
Actual Cost to
facilitate the
estimation of new
Standard Costs
Ability to track
multiple valuations
and/or currencies
at the material
level.
Ability to revaluate
inventory on the
basis of real cost
calculation
Enables faster and
more effective
decision making to
management
Tracks variances
Across Multiple
product levels /
plant and Company
codes
Material Ledger Benefits
41
42. CO-CCA
MFG
Cost Center
CO-CCA
MFG Overead
Cost Center
Activity
type
Business
Process
Production
Orders
Actual CC Allocations
Activity Price revaluation
ABC Template Allocation
WIP
Variances
DUV usage variance
Actual Cost Calculation
CO-PA
Documents
Actual Cost
Component
Split
FI-GL
Documents
Revaluation
Inventory
COGS
During the month Month end
Month end closing activity
Material Ledger Actual Costing
MM
Movements
Scrap/Cycle/
Transfer
Material Ledger
• Receipts/Consum
ption
• Price Differences
• Single Level Price
Determination
• Multi level Price
Determination
• Closing Entries
PP-PO
Production
Variances
MM-PO
Price Variance
Variances
Actual Cost Flow Integration
Actual Cost Flow Integration
42
43. Springboard to SAP PCM
43
• Integrated transaction and analytics solutions
• Totally integrated into transactional processing to PCM
• Cooper Tire phase II to integrate with PCM
Profitability
Analysis
Cost
Planning
Producti
on
Actual
Costing
Evaluating master
data
Bill of materials
Routing
Planned prices
Planned
activities
Planned yield
Recording logistical
information for
controlling:
Consumptions
Yield & scrap
Purchasing &
supplier invoices
Activities & time
recording
Recalculating the
value flow using
Actual quantity
structure
Actual activity
recording
Multi-level value
flow
Actual raw
material prices
Consumption
Revaluation
Distribution of
Usage variances
Reporting
PROFIT
Production costs
Sales Revenues
Actual cost
Component
Dimensions
Regions
Channels
Customers
Product
Hierarchy
Profitability&Cost
Management
Reporting Costs and
Contribution Margins
Being totally integrated into
transactional processing
materials ledger makes ideal
place for Calculating the direct
cost of product
Transferred to the profitability
segment component and
uploaded into SAP BOBJ &
PCM
Combining the strengths of the
controlling components of SAP
ERP with SAP BOBJ & PCM
44. Resources
44
• SAP Finance
• www.sap.com/solutions/business-
suite/erp/financials/featuresfunctions/index.epx
• SCN
• www.scn.com
• AC530 - Training actual costing/Material ledger
• Actuhttp://www.sap-press.com/
• al Costing with the SAP Material Ledger - Vanda Reis
• 2011 Edition
45. Key Ideas
45
• Avoid those who only believe ML is difficult
• Keep all companies with same valuation strategy
• Material ledger visibility
• Integrated across multiple level and company codes
• Variances included in all reporting
• One time change management
• Value quantities of inventories with three different valuations
• Legal valuation, group valuation and profit center valuation
46. Questions
• Now:
• Ask questions now for immediate answers
• Later:
• Johannes Le Roux - leroux@jari-consulting.com
• Chris Crim - cacrim@coopertire.com
46
Q&A
47. Disclaimer
SAP®, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver®, Duet®, PartnerEdge, and other SAP® products and
services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in
Germany and in several other countries all over the world. All other product and service names mentioned are the
trademarks of their respective companies. ERP Corp is neither owned nor controlled by SAP.