Profitability Analysis

Profitability Analysis: Configuration Guide

Content
Profitability Analysis : Configuration Guide.....................................................................................4 1 Installation................................................................................................................................4 .1.1 Structures.........................................................................................................................4 1.1.1 Import Operating Concern from Source Client 000 (if necessary)...............................4 1.1.2 Check and Activate Source Operating Concern..........................................................5 1.1.3 Copy Operating Concern from delivery client..............................................................6 1.1.4 Set Operating Concern................................................................................................6 1.1.5 Maintain Characteristics..............................................................................................8 1.1.6 Generate Target Operating Concern...........................................................................9 1.1.7 Assign controlling area to operating concern.............................................................11 .1.2 Master Data....................................................................................................................11 1.2.1 Maintain Characteristic Values .................................................................................12 1.2.2 Define Characteristic Derivation................................................................................14 1.2.3 Maintain Planning Versions for Valuation..................................................................16 1.2.4 Valuation...................................................................................................................18 .1.2.4.1 Set Up Conditions and Costing Sheets...........................................................18 .1.2.4.1.1 Create Condition Types and Costing Sheets...........................................18 .1.2.4.2 Valuation Strategies........................................................................................19 .1.2.4.2.1 Define and Assign Valuation Strategy.....................................................19 .1.3 Planning..........................................................................................................................20 1.3.1 Initial steps................................................................................................................20 .1.3.1.1 Assign Value Fields........................................................................................20 1.3.2 Manual Entry of Planning Data..................................................................................21 .1.3.2.1 Define Planning Layout...................................................................................21 1.3.3 Forecast....................................................................................................................23 .1.3.3.1 Maintain Forecast Profile................................................................................23 .1.3.3.2 Define Ratios and Ratio Schemes..................................................................24 1.3.4 Integration Plan-Allocations CCA to CO-PA..............................................................25 .1.3.4.1 Plan Settlement: Receiving Version in CO-PA................................................26 .1.3.4.2 Create Plan Assessment................................................................................26 .1.4 Planning Framework.......................................................................................................27 1.4.1 Define Planning Levels..............................................................................................28 1.4.2 Define Planning Packages........................................................................................30 1.4.3 Define Planning Methods (Parameter Set)................................................................31 .1.5 Flows of Actual Values....................................................................................................33 1.5.1 Transfer of Billing Documents...................................................................................34

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Profitability Analysis: Configuration Guide .1.5.1.1 Assign Value Fields........................................................................................34 .1.5.1.2 Assign Quantity Fields....................................................................................34 1.5.2 Transfer of Overhead................................................................................................35 .1.5.2.1 Create Actual Assessments CCA to CO-PA...................................................35 .1.5.2.2 Settlement of Production Variances................................................................36 .1.5.2.2.1 Define PA Transfer Structure for Variance Settlement............................36 .1.5.2.2.2 Assign PA Transfer Structure to Settlement Profile.................................37 .1.6 Information System.........................................................................................................37 1.6.1 Report Components..................................................................................................37 .1.6.1.1 Define Key Figure Schemes...........................................................................37 .1.6.1.2 Define Variables for Reports...........................................................................39 .1.6.1.3 Define Forms for Profitability Reports.............................................................40 .1.7 Manually Create Profitability Report................................................................................41 .1.8 Activate Profitability Analysis..........................................................................................43 .1.9 Troubleshooting in CO-PA..............................................................................................43

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Profitability Analysis: Configuration Guide

Profitability Analysis : Configuration Guide

1 Installation

.1.1 Structures 1.1.1 Import Operating Concern from Source Client 000 (if necessary)

Use
The Operating Concern DC00 is based on the the delivery Operating Concern S001. The first step is to copy operating concern S001 to DC00 using transaction Copy Operating Concern including Customizing (KECP).

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction code IMG Menu KECP IMG: Controlling -> Profitability Analysis -> Structures -> Define Operating Concern -> Sample Operating Concerns -> Copy Operating Concern including Customizing

2. On Import Operating Concern screen, enter the necessary data. Field name SAP Template Sample Operating Concern Source Client Copy to Target Client Test Mode Overwrite No Flag No Flag R YOUR CLIENT R S001 (EXAMPLE OPERATING CONCERN 1) 000 Description R./O./D. User action and values Comment

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Profitability Analysis: Configuration Guide Settings 3. Copy (F8)

1.1.2

Check and Activate Source Operating Concern

Use
Check and activate in customizing, whether the operation concern S001 has been generated. If not, generate operating concern S001.

Prerequisite
The operating concern S001 must have been transferred from client 000 to the current client.

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction code IMG Menu KEA0 IMG: Controlling -> Profitability Analysis -> Structures -> Define Operating Concern -> Maintain Operating Concern

2. On Maintain Operating Concern screen, enter the necessary data. Field name Operating Concern ENTER 3. There is yellow light in the field Status. Click the icon Display <-> Change and accept the caution information. 4. Click the button Activate Data Structure and go into Activate Data Source: Characteristic Screen. Choose icon Activate. 5. Click the icon back and accept the information Do you wish to generate the operating concern environment? 6. Check the light of Status. Now it turns to green. Description R./O./D. R User action and values S001 (EXAMPLE OPERATING CONCERN 1) Comment

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Profitability Analysis: Configuration Guide

1.1.3

Copy Operating Concern from delivery client

Use Prerequisite
The sample operating concern S001 must have been generated.

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction code IMG Menu KECP IMG: Controlling -> Profitability Analysis -> Structures -> Define Operating Concern -> Sample Operating Concerns -> Copy Operating Concern including Customizing

2. On Copy Operating Concern screen, enter the necessary data. Field name Copy from Source Operating Concern Source Client Copy to Target Operating Concern Target Client Data Structures Generate Environment Customizing Test Mode Flag Flag Flag No Flag R DC00 R S001 (EXAMPLE OPERATING CONCERN 1) YOUR CLIENT Description R./O./D. User action and values Comment

R O O O O

YOUR CLIENT

3. Copy (F8) and accept the warning information.

1.1.4

Set Operating Concern

The Operating Concern "DC00" has to be set before defining the structures.

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Profitability Analysis: Configuration Guide

Procedure
1 To carry out the activity, choose one of the following navigation options: Transaction code IMG Menu KEA0 IMG: Controlling -> Profitability Analysis -> Structures -> Define Operating Concern -> Maintain Operating Concern

2 Maintain the Data Structure of the Operating Concern as: Description: BP Operating Concern

3Maintain the attributes of the Operating Concern as: Fiscal year: K4 (Calendar year with 4 special periods)

Local currency: CNY

4There is yellow light in the field Status. Click the icon Display <-> Change and accept the caution information. 5 Click the button Activate Data Structure and go into Activate Data Source: Characteristic Screen. Choose icon Activate. 6Click the icon back and accept the information Do you wish to generate the operating concern environment? 7 Check the light of Status. Now it turns to green. 8 Back to IMG 9 To carry out the activity, choose one of the following navigation options: Transaction code IMG Menu KEBD IMG: Controlling -> Profitability Analysis -> Structures -> Set Operating Concern

10On Set Operating Concern screen, enter the necessary data. Field name Operating Concern Type of Profit. Description R./O./D. R User action and values DC00 costing-based Comment

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Profitability Analysis: Configuration Guide Analysis 11Enter

1.1.5 Use

Maintain Characteristics

The characteristics of the Operating Concern represent objects or market segments that can be used as a basis for performing evaluations. The characteristics also represent reference objects for allocating costs in Profitability Analysis. This enables source-related cost allocation at the level responsible, according to direct costs and contribution margin accounting. The table below displays the name and meaning of the characteristic, as well as how it is used in a different application and in each company code.

Note
Additionally to the below mentioned characteristics there are fixed characteristics existing in every Operating Concern. They are used to transfer organizational structures to the profitability analysis (e.g. company code, controlling area, plant, sales organization)

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction code IMG Menu KEA5 IMG: Controlling -> Profitability Analysis -> Structures -> Maintain Operating Concern ->Characteristics

2. On Edit Characteristic: Start Create Characteristic screen, enter the necessary data. Field name Chars from Operating Concern Click Button Chang 3. On Change Characteristic Overview screen, choose icon create. On Pop up window Create Chr: Assignment enter the necessary data. Description R./O./D. R User action and values DC00 Comment

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Profitability Analysis: Configuration Guide Choose user-defined fields, enter the necessary data: Field name Description R./O./D. Char. With own value maintenance Create Icon Key of the characteristic R R

User action and values e.g. WWPG1 Flag

Comment

On Edit Characteristic screen, enter the necessary data. Field name Description Short text Heading Data type/length 5. Save and activate using the icons Description R./O./D. R R R R User action and values e.g.Product Hierarchy 1 e.g. Prod.Hier1 e.g. Product Hierarchy 1 e.g. NUMC / 5 Comment

The following Characteristics should be created:

Charact. WWPG1 WWPG2 Description Product Hierarchy 1 Product Hierarchy 2 Short Text Prod.Hier1 Prod.Hier2 Dtype NUMC NUMC Lngt h 5 10 Origin Table Origin Field

1.1.6 Use

Generate Target Operating Concern

The Operating Concern "DC00" is defined by means of attributes and data structures. The controlling area DC00 is assigned to the Operating Concern DC00. The characteristics and value fields represent data structures or master data for the Operating Concern. If the operating concern DC00 has the green lights in Environ. screen, then ignore this step.

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction code IMG Menu KEA0 IMG: Controlling -> Profitability Analysis -> Structures ->

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Profitability Analysis: Configuration Guide Define Operating Concern -> Maintain Operating Concern 2. On Maintain Operating Concern Data Structures screen, check the following data. Field name Description Use Icon Display <-> Change Description Use Button Change Data Structure 3. On Chars tab, transfer the following fields from right to left:
Characteristic WWPG1 WWPG2 Description Product Hierarchy 1 Product Hierarchy 2

R./O./D.

User action and values

Comment

BP Operating Concern

If the fields are already in the left side, please skip this step. Go to Value Fields tab, transfer the following fields from right to left:
Value Fields KWMKDP KWFOEN KWABLG KWABMG KWABPR KWABSG KWABST Description Marketing division Research & Developmt Lot size variances Quantity variances Price variances Other variances Resource-usage var.

If the fields are already in the left side, please skip this step. Press Icon Activate, Green arrow back and accept the information to generate the operating concern. 4. On Maintain Operating Concern Attribute screen, check the following data. Field name Description Use Icon Display <-> Change Operating concern Choice of Currency R CNY R./O./D. User action and values Comment

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Profitability Analysis: Configuration Guide currency Fiscal year variant Calendar year, 4 spec. periods R K4

5. On Maintain Operating Concern Environment screen, check the necessary data. Field name Description Use Icon Cross Client Part Status to generate Use Icon Clientspecific Part Status to generate R./O./D. R User action and values Make sure the light is green Comment

Make sure the light is green

1.1.7 Use

Assign controlling area to operating concern

In this activity, you allocate the controlling areas that you want to be able to analyze together in Profitability Analysis to an operating concern.

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu 2. Make the following entries: COAr OpCo KEKK Enterprise Structure Assignment Controlling Assign controlling area to operating concern

BP01

DC00

Result
Operating Concern (DC00) is assigned to the controlling area (BP01)

.1.2 Master Data Use

In this step you make all the basic settings that determine the basic structure and contents of Profitability Analysis in your system.

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Profitability Analysis: Configuration Guide

In short, you need to define the following:

How the relevant segments of your organization are to be created (so-called "profitabilty segments"). You can do this using the characteristic derivation function. What values should be determined automatically by means of valuation. You can do this using the valuation functions.

1.2.1

Maintain Characteristic Values

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction code Menu KES1 IMG: Controlling -> Profitability Analysis -> Master Data -> Characteristic Values -> Maintain Characteristic Values

2. On Change Characteristic Values screen, enter the necessary data. Field name Description Select the characteristic which needs to be maintained Icon New entries Characteristics in Chinese (Log on using ZH as language)
1 WWPG1 WWPG2 01 02

R./O./D.

User action and values

Comment

01 (WWPG1)

00001 00002

02 (WWPG2)

0000100001 0000100002 0000100003 0000200001

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Profitability Analysis: Configuration Guide 0000200002 0000200003

Characteristics in English (Log on using EN as language)

1 WWPG1 WWPG2 Product Hierarchy 1 Product Hierarchy 2

Product Hierarchy 1 (WWPG1) 00001 00002 Food Product Food Trading

Product Hierarchy 2 (WWPG2) 0000100001 0000100002 0000100003 0000200001 0000200002 0000200003 Pastries, Bread Frozen vegetables Prepared food Perishable Food Non-perishable Food Beverages

3. To carry out the activity, choose one of the following navigation options: Transaction code Menu V/76 IMG: Logistics General -> Material Master -> Settings for Key Fields -> Data Relevant to Sales and Distribution -> Define Product Hierarchies -> Maintain: Product hierarchy

4. On Change View Materials: Product Hierarchies: Overview screen, Select icon New entries. Maintain the following new data: For ZH Version: 00001 00002 And then: 0000100001 0000100002 0000100003

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Profitability Analysis: Configuration Guide 0000200001 0000200002 0000200003 For EN Version: 00001 00002 And then: 0000100001 0000100002 0000100003 0000200001 0000200002 0000200003 Pastries, Bread Frozen vegetables Prepared food Perishable Food Non-perishable Food Beverages Food Product Food Trading

1.2.2 Use

Define Characteristic Derivation

In this step, you set up the derivation of characteristic values. Derivation lets you find values for certain characteristics automatically based on the known values of other characteristics, where these characteristics are logically dependent on one another. When an operating concern is generated, the system produces a standard derivation strategy containing all known dependencies between characteristics. You can display these by choosing "View -> Display all steps". If you use the derivation step type "Derivation rule", some additional entry options are available: 1. Under "Maintain rule values", you enter which values in the target fields should be placed in which characteristic values of the source fields. 2. 3. Under "Characteristics", you can make additional entries which, for example, make it possible to enter a validity date for the step In characteristic derivation the way characteristic values are located is settled. This is done for Sales and area managers, as well as the product hierarchy. Product hierarchy The single levels of the product hierarchy are determined from the source field material number and the corresponding field for product hierarchy in the material master. Technically it is done by a table lookup.

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Profitability Analysis: Configuration Guide

Prerequisites
All characteristics values have been entered and operating concern has been generated successfully.

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KEDR Controlling Profitability Analysis Master Data Define Characteristic Derivation

2. On screen Characteristic derivation: Display Strategy enter the necessary data:

Field name Description Icon display/change Icon create step Enter table name Enter rule description R./O./D. R R R R User action and values Enter change Choose Table lookup in pop up window -> enter MARA Product Hierarchy 2 from Product number 2 Comment

3. For Product Hierarchy 2: On screen Characteristic derivation: Change Table Lookup

View Definition (Assignment of table fields to target fields) enter the necessary data: Field name Origin Field name Icon Characteristic derivation: Change Field Attributes entire field content part of field content from character position (begin at 0) Number of characters field length 10 No flag Set flag X Description R./O./D. R R User action and values MARA PRDHA Comment

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Profitability Analysis: Configuration Guide Name origin Field name 4. Save R R R Product hierarchy CO-PA WWPG2

5. For Product Hierarchy 1: On screen Characteristic derivation: Change Table Lookup

View Definition (Assignment of table fields to target fields) enter the necessary data: Field name Description Enter rule description R./O./D. R User action and values Product Hierarchy 1 from Product number 1 Origin Field name Icon Characteristic derivation: Change Field Attributes entire field content part of field content from character position (begin at 0) Number of characters field length Name origin Field name 6. Save R R R 5 No flag Set flag X R R MARA PRDHA Comment

Product hierarchy CO-PA WWPG1

Result
Characteristic derivation are created

1.2.3 Use

Maintain Planning Versions for Valuation

You can use versions to create independent data groupings in planning and in actual.

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Profitability Analysis: Configuration Guide

Procedure
4. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu OKEQ Controlling General Controlling Organization Maintain Versions

5. Make the following entries: 6. General Version Definition Version Name Record Planning data X Exclusive use 0

YB1

Plan version:Consumer Products Operating Concern DC00 Name

Settings in Operating Concern, select Yes at the information and enter the following data: Version Exchange Rate Type M Derivation Date 2004.01.0 1 M 2004.01.01 B0 Currency Type B0

YB1

Plan version:Consumer Products Plan/actual version Version Description Plan version: revision 3 Plan version: Consumer Products Year

DC00

Controlling Area Settings, select Yes at the information and enter the following data: Controlling Area BP01 Version Record Planning Data X Valuation View 0

BP01

YB1

Setting by fiscal year Controlling Area Version Copying Allowed Exchange Rate Type Value Date Integrated Planning Version for indirect act. alloc. 0

DC00

YB1

2003

2004.01.01

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Profitability Analysis: Configuration Guide Save.

1.2.4 .1.2.4.1

Valuation Set Up Conditions and Costing Sheets .1.2.4.1.1 Create Condition Types and Costing Sheets

Use
In this step you define condition types to use in Profitability Analysis (CO-PA) and CO-PA-specific costing sheets.

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu 8KEV Controlling Profitability Analysis Master Data Valuation Set Up Conditions and Costing Sheets Create Condition Types and Costing Sheets

2. On screen Pricing Maintain Condition Types Condition types enter the necessary data: Field name Condition type Description Access sequence Price M Master acc to price control 3. Save 4. On screen Pricing Maintain Condition Types Pricing procedure enter the necessary data: Field name Description Icon Create R./O./D. R User action and values Double click Comment X X Description Icon Create R./O./D. R User action and values Double click YB1S BP price control BP no external value set Flag set Flag Comment

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Profitability Analysis: Configuration Guide

Pricing Procedure Step Cntr CTyp From To Rqm Description

R R O R O O O O

YB1000 BP acc. Price Cont 10 00 YB1S 00 00 00 BP price control BP

5. Save

.1.2.4.2

Valuation Strategies .1.2.4.2.1 Define and Assign Valuation Strategy

Use
In this step, you can define your valuation strategies and assign them to a point of valuation.

The quantities transfered from the invoice are valuated with the costs calculated in the product cost estimate. If a valuation strategy calls for valuation using material costing, the system uses the point of valuation to control which cost estimate is read and how the cost components are assigned to value fields in CO-PA. The Valuation is executed on 4 points in the value flow. 1. Realtime valuation of actual data 2. Manual planning 3. Automatic planning The valuation strategy YB1 " BP Val.stand.cost estimate" enables the valuation by product cost estimate. This is done for real valuation of actual data from billing, with reference to the value field "ABSMG Sales Volume".

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KE4U Controlling Profitability Analysis Master Data Valuation Valuation Strategies Define and Assign Valuation Strategy

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Profitability Analysis: Configuration Guide

1. Make the following entries: Valuation Strategy Val YB1 YB2 Details OpCo DC00 DC00 DC00 OpCo DC00 DC00 DC00 Val YB1 YB1 YB2 PV R 01F 03F 04F YB1 YB1 Sq Ap 10 20KE 10V Ver YB1000 YB0010 Val Strat. YB1 YB1 YB2 Costin Field name ABSMG ABSMG ABSMG Material Costing X Name BP Val.stand.cost estimate BP BP Val. Revenue Plan BP

Assignment of Valuation Strategy

.1.3 Planning 1.3.1 .1.3.1.1 Use Procedure

1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KE4M Controlling Profitability Analysis Planning Initial Steps Assign Quantity Fields

Initial steps Assign Value Fields

2. Make the following entries: OpCo FKIMG Ap CTyp Field name Sales quantity

Billed quantity ABSMG

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Profitability Analysis: Configuration Guide

1.3.2 .1.3.2.1 Use

Manual Entry of Planning Data Define Planning Layout

Sales planning in CO-PA is done on two levels. Level 10: Strategic planning comprises a very high level where the sales quantity by product category is planned on a long term basis. Level 20: Overview Planning is target setting on Overview level. This level is planned at the product hierarchy level 1.

For each planning level a form on Report Painter Basis has to be built.

Procedure
1. To carry out the activity, choose one of the following navigation options: IMG Menu Transaction code IMG: Controlling -> Profitability Analysis -> Planning -> Manual Entry of Planning Data ->Define Planning Layout KE14

2. On Report Painter: Create Planning Layouts for Sales & Profit Planning screen, enter the necessary data. Field name Planning Layout Description Description R./O./D. R R User action and values YB000 Plan Sales per Category BP - 3. Enter 4. Build up the two layouts according with the Report Painter Two planning layouts need to be created. The layouts are defined for sales organization DC00, but could be enlarged easily for more sales organizations: Planning Layout YB000 YB100 Description BP PLD SALES PER CAT BP - BP PLD SALES PER ORI Comment

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Profitability Analysis: Configuration Guide BP - Planning Layout YB000 has the following layout. SALES PLAN CATEGORY . Grand Total . Total Prod. Goods . Pastries, Bread Frozen vegetables Prepared food . Total Trading . Perishable Food Non-perishable Food Beverages . . . . . Note! White fields are Entry fields only. Blue fields are calculated through Valuation. Planning Layout YB100 has the following layout: Sales quantity Reven ue

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Profitability Analysis: Configuration Guide SALES PLAN CATEGORY . Food Product . Food Trading . Grand Total . . . Sales quantity Revenue

1.3.3 .1.3.3.1

Forecast Maintain Forecast Profile

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KE1T Controlling Profitability Analysis Planning Planning Aids Forecast Profile Maintain Forecast Profiles

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Profitability Analysis: Configuration Guide 2. Make the following entries: Forecast prof. Description Forecast strat. Alpha factor Beta factor Gamma factor Hist. periods Periods/season Weighting group YB01 BP Forecast Profile BP 13 0,00 0,00 0,00 3 0

.1.3.3.2

Define Ratios and Ratio Schemes

Use
Ratios let you simulate price and quantity changes in planning. A ratio is the quotient between two value fields, such as sales revenue divided by quantity. The calculation type is only relevant for single ratios in manual planning, not for ratio schemes! Which calculations are carried out (such as price = revenue/quantity, revenue = quantity * price or quantity = revenue/price) when you change one or more of these fields manually depends on a number of factors: which of the fields are in the layout and can be entered manually which fields were changed which calculation type was chosen when you defined the ratio

If you change one of the three fields and the other two either can be entered or cannot be entered or are not even in the layout the system cannot decide which of the two fields should be calculated. +n this case the calculation type determines which field should be calculated: Value changed manually Value recalculated Calculation type 1: Revenue Price Quantity Revenue

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Profitability Analysis: Configuration Guide Price Revenue Calculation type 2: Revenue Quantity Quantity Revenue Price Revenue If you change one of the fields and only one of the other two fields can be entered manually, the system assumes that it should calculate the field that cannot be entered manually, regardless of which calculation type was chosen.

Procedure
7. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KE1I Controlling Profitability Analysis Planning Planning Aids Define Ratios and Ratio Schemes

8. Make the following entries: Ratio YB1 Description Sales Price / Quant. / Ratio Scheme YB10 Text Sales Price per Quantity Category level BP / - No. 1 Ratio YB1 Description Sales Price / Quant. / Access Level WWPG2 Name Product Hierarchy 2 Short text Price/Quan Numerator ERLOS Demoninator ABSMG Calc type 2

1.3.4

Integration Plan-Allocations CCA to CO-PA

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Profitability Analysis: Configuration Guide

.1.3.4.1

Plan Settlement: Receiving Version in CO-PA

Procedure
9. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KEPV Controlling -> Profitability Analysis -> Planning -> Integrated Planning -> Transfer Cost Center Planning/Process Planning -> Initial Steps -> Assign Receiver Plan Version

10. Make the following entries: 0 YB1 0 0 0 0 0 2002 Plan version: change 1 2002 2003 2004 2005 2006 2007 YB1 YB1 YB1 YB1 YB1 YB1

.1.3.4.2 Use

Create Plan Assessment

Planned data are transferred through cycles from cost center accounting.

Procedure
To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KEU1 Controlling -> Profitability Analysis -> Planning -> Integrated Planning -> Transfer Cost Center Planning/Process Planning -> Assess Cost Center Costs / Process Costs -> Define Structure of Cost Center Assessment/Process Cost Assessment

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Profitability Analysis: Configuration Guide Make the following entries: Header: Operating concer Status Cycle Starting date Text CO area TF basis Sender version Receiver vers. Segments: Sender percentage Ass. CE DC00 saved YB01 01.01.2003 BP01 1 0 YB1 Plan version: Consumer Products Costing-based Profitability To 31.12.9999 BP Plan Assessm. CO-PA BP Operating Concern

Name

Text

Sender rule 1Posted amounts 1Posted amounts 1Posted amounts 1Posted amounts

Rec. rule 3Fixed percentages 3Fixed percentages 3Fixed percentages 3Fixed percentages

Value Field

BP BP01-01 Management BP01-02 BP Sales BP01-03 BP Marketing BP01-04 BP R & D

100 94200080VWGK 100 94200100VTRGK 100 94200090KWMKDP 100 94200110KWFOEN

.1.4 Planning Framework

In this step, you set up the initial planning screen and thereby specify the architecture to be used in planning. The initial planning screen consists of the following elements: Planning level Planning package Planning method Parameter set

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Profitability Analysis: Configuration Guide

1.4.1

Define Planning Levels

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KEPM IMG: Controlling -> Profitability Analysis -> Planning -> Planning Framework -> Set Up Planning Framework Planning Framework - Overview: Edit -> Planning Levels -> Create 2. On Planning Levels: Create screen, enter the necessary data.

Field name Key

Description

Description

R./O./D User action and . values

R R 10 STRATEGIC PLANNING BP -

Comment

3. Enter 4. On Planning Levels: Create View Characteristics screen, Charact. Tab select the following parameters.

Field name
Period/year Product Hierarchy 2 Record type Sales org. Unit Sales qty Version

Description

R./O./D User action and . values

Comment

5. On Planning Levels: Create View Characteristics screen, Selection Tab enter the necessary data.

Field name
Period/year Product Hierarchy 2 Record type

Description

R./O./D User action and . values

O O O F

Comment

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Profitability Analysis: Configuration Guide Sales org. Unit Sales qty Version 6. Save 7. On Planning Framework - Overview screen: Edit -> Planning Levels -> Create On Planning Levels: Create screen, enter the necessary data. O O O YB1

Field name Key

Description

Description

R./O./D User action and . values

R R 20 OVERALL PLANNING BP -

Comment

8. Enter 9. On Planning Levels: Create View Characteristics screen Charact. Tab, select the following parameters.

Field name
Period/year Product Hierarchy 1 Record type Sales org. Unit Sales qty Version

Description

R./O./D User action and . values

Comment

10. On Planning Levels: Create View Characteristics screen Selection Tab, enter the necessary data.

Field name
Period/year Product Hierarchy 1 Record type Sales org. Unit Sales qty Version 11. Save

Description

R./O./D User action and . values

O O O O O O YB1 F

Comment

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Profitability Analysis: Configuration Guide

1.4.2

Define Planning Packages

Procedure
1. To carry out the activity, choose one of the following navigation options: Menu IMG: Controlling -> Profitability Analysis -> Planning -> Planning Framework -> Set Up Planning Framework Select Planning Level 10 -> Right Mouse Button: Create Planning Package Transaction code KEPM

2. On Planning Package: Create screen, enter the necessary data.

Field name Key

Description

Description

R./O./D User action and . values

R R YB12003 PLAN CATEGORIES 2003 BP - 2003

Comment

3. Enter 4. On Planning Package: Create View Characteristics screen, select the following parameters.

Field name
Period/year Product Hierarchy 2 Record type Sales org. Unit Sales qty Version

Description

R./O./D User action and . values

2003.001 3003.012 0000100001 0000200002 F Your Sales Org. PC YB1

Comment

5. Save and proceed in the same way for Year 2004.

6. To carry out the activity, choose one of the following navigation options:

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Profitability Analysis: Configuration Guide Menu IMG: Controlling -> Profitability Analysis -> Planning -> Planning Framework -> Set Up Planning Framework Select Planning Level 20 -> Right Mouse Button: Create Planning Package Transaction code KEPM

7. On Planning Package: Create screen, enter the necessary data.

Field name Key

Description

Description

R./O./D User action and . values

R R YB22003 PLAN OVERALL 2003 BP - 2003

Comment

8. Enter 9. On Planning Package: Create View Characteristics screen, select the following parameters.

Field name
Period/year Product Hierarchy 3 Record type Sales org. Unit Sales qty Version

Description

R./O./D User action and . values

O O O O O O 2003.001 3003.012 00001 - 00002 F Your Sales Org. PC YB1

Comment

10. Save and proceed in the same way for Year 2004.

1.4.3

Define Planning Methods (Parameter Set)

Procedure
1. To carry out the activity, choose one of the following navigation options:

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Profitability Analysis: Configuration Guide Menu IMG: Controlling -> Profitability Analysis -> Planning -> Planning Framework -> Set Up Planning Framework Select Planning Level 10 -> Doubleclick Planning Package YB12003 -> Select Enter Planning Data -> Right Mouse Button -> Create Parameter Set Transaction code KEPM

2. On Planning Package: Create screen, enter the necessary data.

Field name Key

Description

Description

R./O./D User action and . values

R R YB12003 ENTER PLANNING DATA FOR CAT

Comment

3. Enter 4. On Parameter Set View Settings screen, select the following parameters.

Field name
Layout Currency Distrib. profile for top down Automat. Valuation Zero suppression Distribution key currency Distribution key quantities Access Active

Description

R./O./D User action and . values

R R O YB000 CNY

Comment

No Flag No Flag

O O R R O 2 2

No Flag

Save and proceed in the same way for Year 2004. 5. To carry out the activity, choose one of the following navigation options:

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Profitability Analysis: Configuration Guide Menu IMG: Controlling -> Profitability Analysis -> Planning -> Planning Framework -> Set Up Planning Framework Select Planning Level 20 -> Doubleclick Planning Package YB22003 -> Select Enter Planning Data -> Right Mouse Button -> Create Parameter Set Transaction code KEPM

6. On Planning Package: Create screen, enter the necessary data.

Field name Key

Description

Description

R./O./D User action and . values

R R YB22003 ENTER PLANNING DATA FOR BRANDS

Comment

7. Enter 8. On Parameter Set View Settings screen, select the following parameters.

Field name
Layout Currency Distrib. profile for top down Automat. Valuation Zero suppression Distribution key currency Distribution key quantities Access Active

Description

R./O./D User action and . values

R R O YB100 CNY

Comment

No Flag No Flag

O O R R O 2 2

No Flag

Save and proceed in the same way for Year 2004.

.1.5 Flows of Actual Values

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Profitability Analysis: Configuration Guide

1.5.1 .1.5.1.1

Transfer of Billing Documents Assign Value Fields

Procedure
11. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KE4I Controlling -> Profitability Analysis -> Flows of Actual Values -> Transfer of Billing Documents -> Assign Value Fields

12. Make the following entries: CTyp HD00 MWST PI01 PI02 PR00 VA00 VA01 YB00 RC00 SKTO BO03 HA00 HB00 K004 K005 K007 K031 R100 RB00 VPRS Name Freight Output Tax Inter-company Price Inter-company % Price Variant Price Variant Price BP Complain Handling Quantity Discount Cash Discount Customer Rebate Percentage Discount Discount (Value) Material Customer/Material Customer Discount Price Grp/Mat.Pr.Grp 100% discount Discount (Value) Cost Val. fld AUSFR ERLOS ERLOS ERLOS ERLOS ERLOS ERLOS ERLOS MRABA PRABA RABAT RABAT RABAT RABAT RABAT RABAT RABAT RABAT RABAT VRPRS Description Outgoing freight Revenue Revenue Revenue Revenue Revenue Revenue Revenue Quantity discount Price reduction Other discounts Other discounts Other discounts Other discounts Other discounts Other discounts Other discounts Other discounts Other discounts Stock value

.1.5.1.2 Procedure

Assign Quantity Fields

13. To carry out the activity, choose one of the following navigation options: Transaction Code 14. Make the following entries: Operating Field name Name Field name KE4M

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Profitability Analysis: Configuration Guide Concern DC00 FKIMG Billed Quantity ABSMG Name Sales Quantity

1.5.2 .1.5.2.1

Transfer of Overhead Create Actual Assessments CCA to CO-PA

Procedure
15. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu 16. Make the following entries: Header: Operating concer Status Cycle Starting date Text CO area TF basis Segments: Sender percentage Ass. CE DC00 saved YB02 01.01.2003 BP01 1 Costing-based Profitability To 31.12.9999 BP Actual Assessm. CO-PA BP Operating Concern KEU1 Controlling -> Profitability Analysis ->

Name

Text

Sender rule 1Posted amounts 1Posted amounts 1Posted amounts 1Posted amounts

Rec. rule 3Fixed percentages 3Fixed percentages 3Fixed percentages 3Fixed percentages

Value Field

BP BP02-01 Management BP02-02 BP Sales BP02-03 BP Marketing BP02-04 BP R & D

100 94200080VWGK 100 94200100VTRGK 100 94200090KWMKDP 100 94200110KWFOEN

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Profitability Analysis: Configuration Guide

.1.5.2.2

Settlement of Production Variances .1.5.2.2.1 Define PA Transfer Structure for Variance Settlement

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KEI1 Controlling -> Profitability Analysis -> Flows of Actual Values -> Settlement of Production Variances -> Define PA Transfer Structure for Variance Settlement

2. Make the following entries: PA Y2 PA Y2 Y2 Y2 Y2 Y2 PA Y2 Y2 Y2 Y2 Y2 PA Y2 Y2 Y2 La EN PAA La 10EN 20EN 30EN 40EN 50EN PAA COAr Group name 10DC00 ACC_CAZH 20DC00 ACC_CAZH 30DC00 ACC_CAZH 40DC00 ACC_CAZH 50DC00 ACC_CAZH PAA OpCo Q 10DC00 20DC00 30DC00 F 1 1 1 Val. fld 3KWABPR 3KWABMG 3KWABST Text BP Production Variances Text BP Price variances BP Quantity variances BP Resource-usage variances BP Lot-size variances BP Remaining variances VCat 1 4 6 22 11

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Profitability Analysis: Configuration Guide Y2 Y2 40DC00 50DC00 1 1 3KWABLG 3KWABSG

.1.5.2.2.2 Assign PA Transfer Structure to Settlement Profile Procedure

1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu OKO7 Controlling -> Profitability Analysis -> Flows of Actual Values -> Settlement of Production Variances -> Assign PA Transfer Structure to Settlement Profile

2. Make the following entries: Nr. SProf. 1YB01 PA Y2

.1.6 Information System 1.6.1 .1.6.1.1 Use

A key figure scheme is a collection of formulas used to define key figures. The individual formulas are called "elements" and can be based on single database fields as well as other elements in the same key figure scheme. All database fields are defined in each scheme and are numbered 9001 through 9999. The elements that you define can be assigned numbers from 1 through 8999. In a formula, you can use the usual arithmetic operations (+, -, *, /) and parentheses. You can also define a formula using a function call. In addition to defining the contents of an element (formula and text), you can connect certain display parameters. For example, an element can have a specific display factor and decimal format. In theory, you can define the necessary formulas in one key figure scheme. However, it makes more sense to define different schemes for different analysis purposes. Also, each key figure scheme should have a unified purpose. For example, you can create a key figure scheme that contains all your contribution margins. The following example shows how you might set up different key figure schemes: Sales managers are interested in a key figure scheme based on the figures "Sales" and "Contribution margin" that contains key figures which can be calculated on that basis, such as contribution margin / sales.

Report Components Define Key Figure Schemes

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Profitability Analysis: Configuration Guide Production managers are more interested in differentiating between different types of costs (variable production costs, setup costs, etc.). The resulting ratios (key figures) are more production oriented, such as setup costs / total cost. For each group you should define separate key figure schemes. In the solution provided by SMB Consumer Products a key figure scheme is defined to reflect the contribution margin scheme.

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction code Menu KER1 IMG: Controlling -> Profitability Analysis -> Information System -> Report Components -> Define Key Figure Schemas

2. On Change View: key Figures Scheme: Details screen, Select Button New Entries, enter the necessary data. Field name Operating concern Key figure scheme Medium Length Text Description R./O./D. R R R User action and values DC00 Y1 BP KEY FIGURE SCHEMA BP Comment

3. Save 4. Doubleclick Elements of the key figure scheme 5. Build up the following key figure scheme as follows: Z0010 Sales volume = + Z9001 Sales quantity (ABSMG); Z0020 Gross Sales = + Z9002 Revenue (ERLOS); Z0030 Qty discount = + Z9003 Qty discount (MRABA); Z0040 Other discounts = + Z9005 Other discounts (RABAT); Z0050 Price reduction = + Z9004 Price reduction (PRABA); Z0060 OutgoingFreight = + Z9006 OutgoingFreight (AUSFR); Z0070 Stock value = + Z9012 Stock value (VRPRS); Z0090 Net Sales after Dedu = + Z9002 Revenue (ERLOS) - Z9003 Qty discount (MRABA) - Z9004 Price reduction (PRABA) - Z9005 Other discounts (RABAT) - Z9006 OutgoingFreight (AUSFR); Z0100 Price variances = + Z9017 Price variances (KWABPR); Z0110 Quantity variances = + Z9016 Quantity variances (KWABMG); Z0120 Lot size variances = + Z9015 Lot size variances (KWABLG); Z0130 Resource-usage var. = + Z9019 Resource-usage var. (KWABST); Z0140 Other variances = + Z9018 Other variances (KWABSG);

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Profitability Analysis: Configuration Guide Z0190 Production Variances = + Z9016 Quantity variances (KWABMG) + Z9017 Price variances (KWABPR) + Z9019 Resource-usage var. (KWABST) + Z9015 Lot size variances (KWABLG) + Z9018 Other variances (KWABSG); Z0200 Admin. overhead = + Z9010 Admin. overhead (VWGK); Z0210 Sales overhead = + Z9011 Sales overhead (VTRGK); Z0220 Marketing division = + Z9013 Marketing division (KWMKDP); Z0230 Research & Developmt = + Z9014 Research & Developmt (KWFOEN); Z0290 OVERHEAD = + Z9014 Research & Developmt (KWFOEN) + Z9013 Marketing division (KWMKDP) + Z9010 Admin. overhead (VWGK) + Z9011 Sales overhead (VTRGK);

.1.6.1.2 Procedure

Define Variables for Reports

1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KE3E Controlling -> Profitability Analysis -> Information System -> Define Variables for Reports

2. Make the following entries: Appl KE KE KE KE T Field name Name of va 1GJAHR 1GJAHR 1PERDE 1PERDE &BISGJAHR R O 2 Field name F T Fixed Offs Leng Leng value I 0 0 0 0 0 0 0 0 0 0 0 0 Q Curr. Un.

&VONGJAHR 2 &BISPER &VONPER 2 2

La EN EN EN EN

Appl T KE KE KE KE

Field name Name of va 1GJAHR 1GJAHR 1PERDE 1PERDE &BISGJAHR &VONGJAHR &BISPER &VONPER

Short text Description To Fiscal Year From Fiscal Year To Period From Period

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Profitability Analysis: Configuration Guide

.1.6.1.3 Use

Define Forms for Profitability Reports

A form is used as a framework for the report in which is defined which Characteristics and Value fields are being used. The following forms as basis for the profitability reports have been created. The contribution margin scheme is based on the logic of the Key Figures Scheme. Form YB10 Description P & L Actual vs Plan P/L

Procedure
1. To carry out the activity, choose one of the following navigation options: Transaction code IMG Menu KE34 IMG: Controlling -> Profitability Analysis -> Information System -> Report Components -> Define Forms -> Define Forms for Profitability Reports

2. On Report Painter: Create Forms screen, enter the necessary data. Field name Forms Description R./O./D. R User action and values YB10 P & L Actual vs Plan Comment

Description R 3. Enter 4. Build up the three forms with the Report Painter Form P&L Actual vs. Plan Sales volume . Gross Sales . Net Sales after Dedu . Production Variances . OVERHEAD YB10

P & L Actual vs Plan

Actual Plan Diff. Diff. % XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX YB10 P/L

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Profitability Analysis: Configuration Guide P/L

XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX . . . . XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX

.1.7 Manually Create Profitability Report

Use
General SAP Reporting is tool that allows you to create report variants quickly and easily. The modules used for this purpose are characteristics (combinations of characteristic attributes form the profitability segment) and value fields/key figures which refer to a certain period of time in their plan/actual differentiation. Predefined standard reports can be stored in a report tree in SAP. The report tree must be maintained by COPA and can include the following report types: In addition to the defined standard reports, every user with authorization to use SAP Reporting can create reports within profitability analysis. Ad-hoc reports are easy to generate and provide statements on business transactions that are not specified precisely by means of a general query. Individual characteristics and value fields, as well as stored calculation rules (key figure scheme) can be accessed here. Form reports are complex report structures that serve specific analysis purposes and that have a standardized structure and layout. They can, however, be used variably, for various periods or organizational units, for example.

Standard reports/report tree

Ad-hoc reports

Form reports

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Profitability Analysis: Configuration Guide As an example of a form report, reports YB10 P & L Actual vs. Plan has been created.

Procedure
17. To carry out the activity, choose the following navigation options: Transaction Code IMG Menu KE31 Controlling -> Profitability Analysis -> Information System -> Create Profitability Report

18. The reports delivered are based on the forms created: YB10 P & L Actual vs. Plan 19. Enter the following data Report Text Report with form Form 20. Icon Create in Line Report with form In view Characters select all characters In view Variables maintain the following values BP01 1 12 2003 2003 Sales Org. BP01 January December 2003 (current year) 2003 (current year) YB102003 BP P & L Actual vs. Plan 2003 P/L 2003 x YB10

Sales org. From Period To Period From Fiscal Year To Fiscal Year 5. Save

Proceed in the same way for year 2004 Forms: Form P&L Actual vs. Plan Sales volume . Gross Sales . Net Sales after Dedu . Production Variances . OVERHEAD YB10 P & L Actual vs Plan

Actual Plan Diff. Diff. % XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX XXX.XXX.XXX

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Profitability Analysis: Configuration Guide

.1.8 Activate Profitability Analysis Procedure

1. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu KEKE Controlling -> Profitability Analysis -> Flows of Actual Values -> Activate Profitability Analysis

2. Make the following entries: COAr DC00 Year 1999 P I 2 OpCo DC00 P

.1.9 Troubleshooting in CO-PA Use

This sections describes how to use SAPNote 446279 to fix inconsistencies in the derivation rules in CO-PA. They might occur in case of client copies, installation of different operating concerns via BC Set with different derivation rules. Please use the report RKEDRCHECK described in this section to check whether you have inconsistencies in you operating concern.

Procedure
21. To carry out the activity, choose one of the following navigation options: Transaction Code IMG Menu SA38 Troubleshooting in CO-PA

22. On the Screen ABAP Execute Program fill in the program name RKEDRCHECK and choose Execute (F8). 23. On the following screen Characteristic Derivation: Check table, two options are offered to the user: Description 1. Check in all clients 2. Delete inconsistent steps 24. Choose Check in all clients and choose Execute (F8) to see whether you have inconsistencies in your system.

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Profitability Analysis: Configuration Guide 25. Choose Back (F3). 26. In case you had inconsistencies mark Delete inconsistent steps and choose Execute (F8). 27. Save your entries and choose Back

Result
The inconsistencies in the derivation tables have been removed.

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