Archit BBP CO-PA V1 30112010

Project: ARCHIT
ARCH Pharmalabs Limited
Business Blueprint
Profitability Analysis
BBP_CO-PA_V1.0
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DOCUMENT NUMBER:BBP_CO_V.1
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TITLE: Controlling CO-PA Business Blue Print

ADDENDUM/AMENDMENT #: New Document
SUPERSEDES: N/A
Document Control
Document ID
ZTL/2010/PRJ-252/CO/03
Compliance Status
Mandatory
Security Classification
Company Restricted
Issue Date
10th December, 2010
Document Status
Draft,
Prepared by
J B Babu
Quality Review
J N R ao
Authorized by
Srinivasan A
Distribution
Bhushan P Arch Pharmalabs Limited
Document History
V1.0
Revised,
APPROVAL
Final
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ACTIVITY
NAME
PREPARED BY:
Mr. J. B. Babu.
TITLE
Zensar
Consultant
REVIEWED BY:
Ms. Himanshi Parekh
CO CTM- Arch
REVIEWED BY:
Mr. Govind Joshi
Project
Manager Arch
Mr. Sreenivasan A.
Zensar
SIGNATURE /
DATE
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SUPERSEDES: N/A
APPROVED BY:
Mr. Bhushan Punekar
CO BPO
Mr. Paresh Jain
( Project Leader)
VP- IA & IT
Controls
AUTHORISED BY:
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Table of Content
1
Introduction.................................................................................................................6
Operating Concern.....................................................................................................7
Data Structure............................................................................................................7
3.1
3.2
3.3
Master Data..............................................................................................................12
4.1
4.2
Characteristics:.............................................................................................................. 8
Value Fields:..................................................................................................................9
Characteristic Derivation..............................................................................................12
Valuation using material costing..................................................................................12
COGS from Valuation Type..........................................................................................13
CO-PA Planning:.......................................................................................................15
5.1 Planning Layout........................................................................................................... 15
5.2 Planning Framework....................................................................................................17
5.2.1
Planning Level......................................................................................................17
5.2.2
Planning Packaging..............................................................................................17
5.2.3
Parameter set ..................................................................................................18
5.2.4
Overhead Planning ..........................................................................................18
Flow of Actual Data to CO-PA..................................................................................20

6.1
6.2
6.3
6.4
6.5
6.6
6.7
7
8
PA Transfer Structure...................................................................................................20
Transfer of Billing Documents:.....................................................................................22
Production Variances:..................................................................................................27
Settling Projects / Orders:............................................................................................27
Direct Posting from Financial Accounting:...................................................................27
Periodic Overhead Allocations:....................................................................................28
CO-PA Manual Document entry:..................................................................................29
Information System in CO-PA..................................................................................29

Enhancement/GAPS................................................................................................30
8.1 Derivation of SCE at Depot Plant................................................................................30
8.2 Derivation of Manufactured plant :...............................................................................31
in case of sales happened from the depot, system does not have the manufacturing plant for
that materials directly. This need to be derived through the batch. Since the batch numbering
is plant specific, the manufacturing plant will be derived with the enhancement....................31
8.3 Exclusion of Standard Cost Estimate:..........................................................................31
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Other than Valuation Type MFG, normally system pass the standard cost estimate to all the
valuation types, based on the Costing assignment to the Material Type. The COGS Value
need to be passed on to Key Material Value field in case of Valuation Type other then MFG.
.............................................................................................................................................. 31
8.4 : Project/Sales order Settlement:.................................................................................31
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Introduction
CO-PA is a tool to analyze the sales results of an organization. It is enable to evaluate the
market segments structured according to products, customers, orders or any combination of
these with respect to contribution margin.
The aim of this is to provide your sales, marketing, planning, and management organizations
with information to internal accounting and decision-support from a market-oriented viewpoint.
It collects data such as revenues from sales order/billing document and costs from process
order, cost center or internal order.
Profitability Analysis can be defined in two ways:
Costing-based Profitability Analysis
Account-based Profitability Analysis
In Costing-based Profitability Analysis it groups costs and revenues according to value fields
with costing based valuation approach.
In Account-based Profitability Analysis it groups costs and revenue elements with accountbased valuation approach which means always reconciled with Financial Accounting.
The major difference between Account based and Costing-based Profitability Analysis is when
post goods issue is happened values will be transferred to COPA in Account-based Profitability
Analysis, where as in case of Costing-based Profitability Analysis sales data will be transferred
only after billing documents posted. Thus it recognizes the revenue only after billing process is
completed to form contribution margin.
When it collects costs and revenues it also collects the associated characteristics and value
fields which help in framing the relevant reports.
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Using CO-PA module, various levels of reports can be generated in the following combinations;
Profit of certain product
Profit of certain product in a certain region
Profit of certain product in a certain region by a certain customer
Profit of certain product in a certain region by a certain sales person etc.,
Plan vs actual profitability analysis
Reports Can be drawn based on the WBS Elements
Operating Concern
An Operating Concern represents an organizational unit in the company for which the sales
market has a uniform structure. It is the valuation level for Profitability Analysis (CO-PA).
The operating concern is the highest reporting level within CO-PA, it defines the limit of sales
and marketing information, which can be reported together from this module. One or more
controlling areas are assigned to an operating concern when organizational structures are
defined.
1000
- Arch Operating Concern
Fiscal year
- V3 April March with 4 Special Period
Currency
- INR Indian Rupees
Data Structure
In Profitability Analysis master data such as Characteristics and Value Fields are directly linked
to structures. The combination of particular characteristics values forms the actual analysis of
object called Profitability Segment.
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The data structure will organize the costs and revenues onto how it will be displayed or
analysed.1000- ARCH operating concern will be used in order to determine the structure of
profitability segments. The data structure is defined by Characteristics and Value Fields as
described in the subsequent narratives.
3.1 Characteristics:
Characteristics are nothing but those aspects we want to break down the profit logically such as
a customer, a region, a sales office etc can be defined as a characteristic on which profitability
analysis is to be performed.
Characteristics are SAP Delivered and Customer specific.
In Arch Pharmalabs Limited some of the individual characteristics will be grouped as below and
derived from the Sales Document and its dependent master data:
The following are the Characteristics used for Arch.
Characteristic starting with WW are
created specific to Arch:
Field
Description
Table
Field
AUART
AUGRU
BONUS
BRSCH
BWTAR
BZIRK
CHARG
COPA_KOSTL
EFORM
GEBIE
KDGRP
KMBRND
KMVTNR
KMWNHG
Sales Doc. Type

Order reason
Vol. rebate grp
Industry
Valuation Type
Sales district
Batch
Cost center
Form of manufacture
Area
Customer group
Brand
Sales employee
Main material group
VBAK
VBAK
MVKE
KNA1
VBAP
KNVV
VBAP
AUART
AUGRU
BONUS
BRSCH
BWTAR
BZIRK
CHARG
KNVV
KDGRP
PAPARTNER
VRTNR
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KMZONE
KTGRD
KTGRM
LAND1
MAABC
MATKL
MTART
MVGR1
MVGR2
MVGR3
PAPH1
PAPH2
PAPH3
PARTNER
PRART
PRODH
PSPHI
SORHIST
VKBUR
VKGRP
Zone
AcctAssgGr
Acct asgnmt grp
Country
ABC Indicator
Material Group
Material Type
MaterialGroup 1
MaterialGroup 2
MaterialGroup 3
ProdHier01-1
ProdHier01-2
ProdHier01-3
Partner
Proj.type
Prod.hierarchy
Current proj no
Sales ord.hist.
Sales Office
Sales Group
SUPERSEDES: N/A
KNVV
VBAP
KNA1
MARC
MARA
MARA
MVKE
MVKE
MVKE
MVKE
MVKE
MVKE
KTGRD
KTGRM
LAND1
MAABC
MATKL
MTART
MVGR1
MVGR2
MVGR3
PAPH1
PAPH2
PAPH3
PRPS
MVKE
PRPS
PRART
PRODH
PSPHI
KNVV
KNVV
VKBUR
VKGRP
3.2 Value Fields:

Value Fields are the detailed elements that form part of the analysis report. For example sales
revenue, costs, overheads can be defined as value fields that form part of the profitability
analysis report for a particular segment. Value Fields starting VV are created specific to Arch.
Value Field
Description
ABSMG
ERLOS
MRABA
PRABA
RABAT
AUSFR
Sales quantity
Revenue
Qty discount
Price reduction
Other Discounts
Outgoing Freight
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VSVP
UMSLZ
PROVV
VWGK
VTRGK
VRPRS
VV100
VV101
VV102
VV103
VV104
VV111
VV112
VV119
VV200
VV201
VV205
ROHST
VV210
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV340
VV350
VV355
VV360
VV500
VV505
VV510
VV550
VV560
VV565
Dispatch Packag.
Licensing Fees
Ext. Commission
Admin. Overhead
Sales Overhead
COGS
Sales Qty-SKU
Job Wrok(Con)-Extern
Job Wrok(Con)-Intern
Services Income
Other Income
Insurance -collected
Freight Collected
Excise Duty on Sales
Discount
Incentive
Commission
Raw materials
Other Deductions
CC Material Key
CC Matetial- Solvent
CC Material- Other
CC Material- Packing
CC Overhead- Labour
CC Overhead- Power
CC Overhead- Water
CC Overhead- Fuel
CC Overhead-OtherMfg
Variance - Material
Variance - Overhead
Variance - Remaining
R & D Expenses
Admin Expenses
Corporate Overheads
Selling Expenses
Price variance
Unabsorbed Product C
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VV570
VV575
VV580
VV585
VV600
VV605
VV349
VV348
VV120
VV336
SUPERSEDES: N/A
Unabsorbed Overheads
Inventory Revaluation
Inventory written of
Job-work-out-Charges
Depreciation Other
Financial Cost
Cost Of Purchas z100
Job-work-in-OH Cost
Excise Exp On Sales
Overhead-Liq Nitroze
In Sales pricing procedures, certain condition types are defined as statistical in some pricing
procedures and the same condition types are real conditions in other pricing procedures.
To eliminate the statistical condition type flow to the billing document, we have use the condition
type elimination configuration. It is possible where ever separate billing type is available for
statistical conditions.
GAP : Where ever the billing type clarity is not available, CO-PA exit need to be written to
eliminate the statistical condition type flow to the CO-PA.
For example Excise Revenue is real condition in domestic revenue. But the same condition type
is statistical in deemed exports pricing procedure. For both the cases one billing document type
zf10 is being used.
3.3 Characteristic Derivation

The following fields data will not be followed by the system automatically. These need
to be derived or enhanced through user exits.
Derivation:
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Valuation Type
Batch
Manufacturing Plant
SUPERSEDES: N/A
- BWTAR
- CHARG
- WW100
These values need to be derived through enhancements or derivation rules.
Master Data
4.1 Valuation using material costing

Material Cost Estimate will be transferred from Product Cost Controlling to determine the cost of
goods manufactured in Profitability Analysis, against billing document. The breakdown of these
costs in CO-PC is usually more detailed than that required in CO-PA. The cost component
structure can be transferred to CO-PA, to identify the cost of goods Manufactured. The following
will be the value field assignment against the Cost Component Structure.
Operating Point of
Concern
Valuation
1000
01
1000
01
1000
01
1000
01
1000
01
1000
01
1000
01
1000
01
1000
01
1000
01
Cost
Compt
Structure
10
10
10
10
10
10
10
10
10
Cost
Component
10
20
30
40
50
60
64
68
69
10
70
Name of Cost Comp.

Material - Key
Material - Solvent
Material - Other
Material - Packing
Overhead Labour
Overhead Power
Overhead Water
Overhead Fuel
Overhead liquid
nitrogen
Overhead - Other Mfg
Fixed &
Variable
3
3
3
3
3
3
3
3
3
Value
Field
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV335
VV340
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1000
1000
1000
1000
1000
1000
1000
1000
1000
03
03
03
03
03
03
03
03
03
10
10
10
10
10
10
10
10
10
10
20
30
40
50
60
64
68
69
1000
03
10
70
SUPERSEDES: N/A
Material - Key
Material - Solvent
Material - Other
Material - Packing
Overhead Labour
Overhead Power
Overhead Water
Overhead Fuel
Overhead liquid
nitrogen
Overhead - Other Mfg
3
3
3
3
3
3
3
3
3
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV335
VV340
Point of Valuation 01- Actual data and 03- Planned data

If the Standard cost estimate is not available, system will give error at the time of creating the
billing document. To avoid the same user has to maintain the elimination rule through
transaction code KE4H.
When sale is being made from Depot plant to customer, system has to identify the
corresponding manufacturing plant based on the Batch number and need to assign the
manufacturing plant in one of Characteristic field.
4.2 COGS from Valuation Type

Using the condition type technique, values can be flown to CO-PA. It is possible to make
provisions in CO-PA along with Revenues. The finished goods are having the split valuation.
Based on the material delivery to customer, it is required to identify the corresponding material
value from the valuation type.
Condition Table
900 - CO Area/CoCode/Val. Type Consist of the following fields:

Controlling Area
Company Code
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Valuation Type
Access sequence 0010 - Arch Valuation Type has been defined and assigned the Condition
Type 900- CO Area/CoCode/Val. Type.
Condition Type Z100 - Arch Val-COGS as Pricing condition and will be assigned the Access
Sequence 0010.
Costing Sheet Z00001- Arch COPA Costing Sheet COGS will be assigned the condition
Type Z100.
Valuation field VRPRS will be assigned to the Condition Type Z100.
A condition Record will be created to transfer the value based on the valuation type (Tcode
KE41) in the following combination:
Condition Type
Z100
Controlling Area
1000
Company Code
1000
Valid From
Date
Valuation TypeDOM, IMP, JOB,DOMEP,IMPEP

Valuation Type MFG is not being considered as Standard cost estimate need to be
transferred.
CO-PA Planning:
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Planning in Profitability Analysis allows planning sales, revenue and profitability data for any
selected profitability segments. Display the entire planning process of the company in different
ways, depending on the business demands.
Sales and profit planning is generally perceived as an integrated process involving different
roles within profitability and sales accounting. Distinctions are often made between the different
approaches used, such as central top-down planning and local bottom-up planning.
The planning tool in Profitability Analysis offers all those involved in the planning process a
uniform, graphical planning interface that is straightforward and modern.
An iterative sales and profit planning process consisting of a number of individual planning
steps, in which existing planning data is copied, projected into the future, revaluated, adjusted
manually, and distributed top-down until they obtain a sales and profit plan that fulfills the
enterprise's requirements. To support the individual steps of a planning process, the planning
tool for Profitability Analysis offers a wide range of planning methods and planning aids that can
be used to create planning data and to modify it to suit the company needs. These include
automatic methods that allow you to produce data automatically for an entire plan or to carry out
changes on that data, and functions that allow you to enter planning data manually.
The following are the basic data required to carry out the CO-PA planning, in SAP system:
5.1 Planning Layout

The entry screens for sales and profit planning are defined. These definitions are referred to as
"planning layouts" and represent structures of rows and columns.
Planning layout is created via automatic generation from the parameter set for the planning
method Enter Planning Data. The only planning layouts that you need to create manually are
those with complex lead columns containing several characteristics that are specified by row.
To meet the Archs CO-PA planning the following layout will be defined:
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PLANYEAR Arch Sales Plan Yearly, which will consist of the following structure:
Characteristic 1 - Customer
Characteristic 2 - Product
Characteristic 3 - Plant
Characteristic 4 - Sales Organisation
Characteristic 5 Division
Characteristic 5 Company Code
Value Field 1 - Quantity-Base UOM - Unit of Measure
Value Field 2 - Quantity-Base UOM
Value Field 4 - Sales Revenue
Value Field 5 - Other Revenue
Value Field 6 - Excise Duty Recovered
Value Field 7 - Outgoing Freight
Value Field 8 - Sales Commission
Value Field 9 - Discount
Value Field 10 - Insurance
Value Field 11 - Clearing Charges
Value Field 12 CC Material -Key
Value Field 13 - CC Material - Solvents
Value Field 14 - CC Material - Other
Value Field 15 CC Material- Packing
Value Field 16 CC Overhead - Labour
Value Field 17 CC Overhead - Power
Value Field 18 CC Overhead - Water
Value Field 19 CC Overhead - Fuel
Value Field 20 - CC Overhead Other Mfg
Value fields assigned with Characteristic values are as follows:
Plan/Act. Indicator
- 1 Planning data
Version
- 0 Plan/actual version
General Data Selection 1 - Record Type
General Data Selection 2 - From Period/year
General Data Selection 2 - To Period/year
General Data Selection 3 - CO Area
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5.2 Planning Framework

In COPA Planning Frame work allows, to structure planning according to the planning
requirements. The following are the planning elements:
5.2.1
Planning Level
The planning level to determine the level at which planning is to occur. In the planning level will
be specified the characteristics for planning. Planning level needs to be synchronized with
planning layout, lead column and general data selection:
ZARCH - Arch Pharmalabs COPA Planning: Consist of the following Characteristics:
Controlling Area
Company Code
Sales Organization
Division
Period / Year
Plant
Customer
Product
Record Type
Version
5.2.2
Planning Packaging
Characteristic values will be specified in a planning package. In this way, you determine the
market segment for which planning is to take place for a particular period. A planning package
can thereby be seen as a work package that determines which planning objects are relevant to
a specific planner.
ZP001 - Planning Package
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5.2.3
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Parameter set
A parameter set contains all the settings necessary for executing a planning method. The
Layout for planning method execution is configured in Parameter Set. To enter or display your
planning data Microsoft Excel can be used as interface in Parameter set.
ZPS001 - Arch Parameter Set
Parameter Set Consist of the following parameters:
Planning layout
Currency
Valuation
Excel Interface
5.2.4
ZARCHYEAR
- INR
- Automatic Valuation
- Based on need basis it can be activated in parameter set
Overhead Planning
In Financial accounting Arch will get the broader view for Revenues & Expenses. In Controlling,
the same is analysed in detail with the help of various cost objects like Cost Center, Process
orders, Profitability Segments, etc.
These expenses are then allocated further in Controlling. For example, If one department is
providing services to another department, the cost from the service provider cost center (Sender
cost center) should be allocated to receiver cost center. The cost of Production department
should be charged to a product based on the Machine hours or Labour hours etc. The transfer
of cost from One cost object like Cost center, Process order to another is called Allocation
Allocation of Cost from Cost Center to CO-PA
This document explains the process for Assessment of Planned costs from Cost center to
Profitability Analysis. This is a method of internal cost allocation by which costs of a sender
Cost center are allocated to receiver PA Segments. This is done by defining Assessment cycles.
In cycles we have several segments (Sub-cycles). In each segment, we have to define sender
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Cost center , receiver PA Segment(s) & a basis of allocation. The basis of allocation can be of
following types
TYPE
Fixed basis
Fixed basis
Fixed basis
Variable basis
Variable basis
Variable basis
Variable basis
Variable basis
Variable basis
BASIS
Fixed percentage
Fixed portions (Ratio)
Fixed amount
Actual cost of receiver
Planned cost of receiver
Actual SKF of receiver
Planned SKF of receiver
Actual Activities of receiver
Planned Activities of receiver
Source of Cost
Before the start of the year, Cost expenses plan will be prepared for each cost center. This
expense plan then will be maintained in the system, part of the Cost Center Planning process.
Basis of allocation & Receiver

The following cost centers will allocate the cost to CO-PA.
Sending CC
Material Adjustments
Marketing / Sales -Logistics
Cost
Admin Cost
Corporate Cost centers
Remark
Total cost
Total cost
Value Field
VV580
VV550
Total cost
Total cost
VV505
VV510
Based on the above nature of expenses, the rules need to be defined in the CO-PA assessment
cycle, the same will be executed in planning. The rules used for Actual data allocation would be
applied for Planned data allocation.
While defining the rules, Profit center (field) is mandatory & must be updated in CO-PA.
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After allocating the Planned costs from these cost centers, the balance in the senders would be
zero.
Flow of Actual Data to CO-PA
Profitability Analysis can receive actual data from the following R/3 applications:
SD (customer agreements, sales orders, goods issues, billing documents)
CO-OM (assessment of cost center and process costs, activity and process allocation,
order settlement)
CO-PC (valuation using material cost estimates, settlement of cost objects, production
variances)
FI (general ledger postings)
Each CO-PA-relevant transaction in SAP (such as invoicing) triggers the creation of line items in
COPA. The data posted in CO-PA is determined through automatic and manual mappings, and
through derivation and valuation configuration.
6.1 PA Transfer Structure
In SAP System, the following data can be settled to Profitability Segments:
Internal orders
Sales orders
Projects
Process order
- Component CO
- Component SD
- Component PS
- Component PP-PI
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To settle the order or project to a profitability segment, a settlement rule must be assigned in
the respective sender objects. Maintain the master data for the order or project, necessary
settlement profile.
The settlement profile of the order, must allow settling to profitability segments.
PI01 - Process order
PA Transfer Structure Z0- Arch Process Order -COPA
Z0 - Arch Process Order -COPA
Line
ID
110
120
130
140
150
160
170
180
190
210
220
230
240
250
260
270
280
290
Line Description
Mat-Input price variance
Mat-Input quantity variance
Mat-Resource-usage
variance
Mat-Remaining input
variance
Mat-Mixed-price variance
Mat-Output price variance
Mat-Lot size-/fixed-cost
varia
Mat-Remaining variance
Mat-Scrap
OH-Input price variance
OH-Input quantity variance
OH-Resource-usage
variance
OH-Remaining input
variance
OH-Mixed-price variance
OH-Output price variance
OH-Lot size-/fixed-cost
varian
OH-Remaining variance
OH-Scrap
Sender CE
Group
MATCOST
MATCOST
Variance
Type
PRIV
QTYV
MATCOST
RSUV
MATCOST
MATCOST
MATCOST
INPV
MXPV
OPPV
MATCOST
MATCOST
MATCOST
SECCOST
SECCOST
LSFV
REMV
SCRP
PRIV
QTYV
SECCOST
RSUV
SECCOST
SECCOST
SECCOST
INPV
MXPV
OPPV
SECCOST
SECCOST
SECCOST
LSFV
REMV
SCRP
ZPS1 - Project Settlement PSG

PA Transfer Structure Z1- PA Transfer Structure PS
Variance Description
Input Price Variance
Input Quantity Variance
Resource-Usage
Variance
Remaining Input
Variance
Mixed-Price Variance
Output Price Variance
Lot SizeVar/FixedCostVar
Remaining Variance
Scrap
Input Price Variance
Input Quantity Variance
Resource-Usage
Variance
Remaining Input
Variance
Mixed-Price Variance
Output Price Variance
Lot SizeVar/FixedCostVar
Remaining Variance
Scrap
Value
Field
VV350
VV350
VV350
VV350
VV350
VV350
VV350
VV350
VV350
VV355
VV355
VV355
VV355
VV355
VV355
VV355
VV355
VV355
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Line
ID
10
50
Line Description
Production Costs
Sender Cost
Elements
90031150 to
90031160
Revenues
90050100
SUPERSEDES: N/A
Value Field
VRPRS
ERLOS
6.2 Transfer of Billing Documents:

When billing document data is posted, the online transfer function transfers the values directly
into Profitability Analysis. In the process, it uses the record type F to generate a line item
automatically in Profitability Analysis for each item on the billing document. For each line item a
CO-PA document will be created.
The Sales and Distribution Module (SD) calculates revenues during billing with the help of a
pricing mechanism, and then enters it in the billing document. If sales deductions are known
(granted discounts, planned cash discount), these are also recorded in the billing document. In
addition, the stock value of the product (delivered price for wholesale or retail goods, or cost of
goods manufactured for in-house products) can also be determined. The system transfers all
the characteristics defined in Profitability Analysis contained in the billing document, along with
the customer and product numbers, from the document to the CO-PA line item. It also performs
Characteristic derivation for those fields for which derivation logic has been defined. Based on
the assignment of Condition type to Value field, the Revenue elements will be transferred to
corresponding value fields.
Incoming sales orders, as expected revenues can be transferred them from SD to CO-PA in
order to obtain an early estimate of anticipated profits. By analyzing this data characteristic, and
value fields, organization
will get early profitability results for individual segments of the
business. The Sales Order data can be viewed with Record Type A
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SD Condition Type and Value Field Mapping

Conditio
n Type
ZC02
ZC06
ZCON
ZD02
ZECD
ZFR1
ZI02
ZOIC
ZP01
ZP03
ZP05
ZP06
ZPPS
ZTPP
JEXP
JECS
JA1X
VPRS
Condition Text
Inland Comm Amt Item
Oversea Com Amt Item
Conversion Charges
Discount Amount Item
Imp Duty- Unload Pt
Freight Amount Item
Insurance Amt Item
Other Incidental Chg
Basic Price-Dom
Job Work Rate
Depot Base Price
CIF Price
Project Service Cost
Third Party Price
IN: A/R BED %
IN A/R E-Cess
A/R Sec & Hr ECS
Internal price
Value Fields
VV205
VV205
VV101
VV200
ERLOS
VV112
VV111
VV104
ERLOS
VV101
ERLOS
ERLOS
VV103
ERLOS
VV119
VV119
VV119
VRPRS
Assignment of SD Quantity Field

SD Condition Type
FKIMG
Billed Quantity
FKLMG Billing qty in SKU
Quantity Value Field

ABSMG
Quantity-Sales UOM
VV100
Quantity-Base UOM
The following values fields have been reset (to zero) for the billing types:
Bill
Doc
Type
ZF56
ZF57
Description
Deemed Export
Merchant Export
Value
field
VV119
VV119
Description
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ZG2D
ZG2D
ZG2D
ZG2D
ZG2D
ZG2D
ZG2D
ZG2D
ZG2D
ZG2D
ZG2D
ZG2D
ZG2D
ZG2D
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZG2E
ZL2D
ZL2D
ZL2D
ZL2D
ZL2D
ZL2D
ZL2D
ZL2D
ZL2D
ZL2D
ZL2D
ZL2D
ZL2D
ZL2D
Dom Credit Memo

Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Exp Credit Memo
Dom Debit Memo
Dom Debit Memo
Dom Debit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
Dom Credit Memo
ABSMG
VRPRS
VV100
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV340
VV348
VV349
ABSMG
VRPRS
VV100
VV119
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV340
VV348
VV349
ABSMG
VRPRS
VV100
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV340
VV348
VV349
Sales quantity
COGS
Sales Qty-SKU
CC Material - Key
CC Material- Other
CC Overhead- Labour
CC Overhead- Power
CC Overhead- Water
CC Overhead- Fuel
Job-work-in-OH Cost
Sales quantity
COGS
Sales Qty-SKU
CC Material - Key
CC Material- Other
CC Overhead- Labour
CC Overhead- Power
CC Overhead- Water
CC Overhead- Fuel
Job-work-in-OH Cost
Sales quantity
COGS
Sales Qty-SKU
CC Material - Key
CC Material- Other
CC Overhead- Labour
CC Overhead- Power
CC Overhead- Water
CC Overhead- Fuel
Job-work-in-OH Cost
SUPERSEDES: N/A
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ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZL2E
ZPG2
ZPG2
ZPG2
ZPG2
ZPG2
ZPG2
ZPG2
ZPG2
ZPG2
ZPG2
ZPG2
ZPG2
ZPG2
ZPG2
ZPL2
ZPL2
ZPL2
ZPL2
ZPL2
ZPL2
ZPL2
ZPL2
ZPL2
ZPL2
ZPL2
ZPL2
ZPL2
ZPL2
Exp Debit Memo

Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp Debit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Credit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
Exp PS Debit Memo
ABSMG
VRPRS
VV100
VV119
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV340
VV348
VV349
ABSMG
VRPRS
VV100
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV340
VV348
VV349
ABSMG
VRPRS
VV100
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV340
VV348
VV349
Sales quantity
COGS
Sales Qty-SKU
CC Material - Key
CC Material- Other
CC Overhead- Labour
CC Overhead- Power
CC Overhead- Water
CC Overhead- Fuel
Job-work-in-OH Cost
Sales quantity
COGS
Sales Qty-SKU
CC Material - Key
CC Material- Other
CC Overhead- Labour
CC Overhead- Power
CC Overhead- Water
CC Overhead- Fuel
Job-work-in-OH Cost
Sales quantity
COGS
Sales Qty-SKU
CC Material - Key
CC Material- Other
CC Overhead- Labour
CC Overhead- Power
CC Overhead- Water
CC Overhead- Fuel
Job-work-in-OH Cost
SUPERSEDES: N/A
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ZREX
ZS2D
ZS2D
ZS2D
ZS2D
ZS2D
ZS2D
ZS2D
ZS2D
ZS2D
ZS2D
ZS2D
ZS2D
ZS2D
ZS2D
ZS2E
ZS2E
ZS2E
ZS2E
ZS2E
ZS2E
ZS2E
ZS2E
ZS2E
ZS2E
ZS2E
ZS2E
ZS2E
ZS2E
Exp Cr for Returns

Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Dom Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
Exp Cr Memo Cancel
VV119
ABSMG
VRPRS
VV100
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV340
VV348
VV349
ABSMG
VRPRS
VV100
VV300
VV305
VV310
VV315
VV320
VV325
VV330
VV335
VV340
VV348
VV349
SUPERSEDES: N/A

Sales quantity
COGS
Sales Qty-SKU
CC Material - Key
CC Material- Other
CC Overhead- Labour
CC Overhead- Power
CC Overhead- Water
CC Overhead- Fuel
Job-work-in-OH Cost
Sales quantity
COGS
Sales Qty-SKU
CC Material - Key
CC Material- Other
CC Overhead- Labour
CC Overhead- Power
CC Overhead- Water
CC Overhead- Fuel
Job-work-in-OH Cost
6.3 Production Variances:

Variances typically occur, when you valuate your materials with standard prices. At the end of
the period, these standard costs are then compared with the actual costs incurred, and this
comparison forms the basis for a detailed variance analysis. The variances are finally
transferred to CO-PA at the end of the period to produce a factually correct representation of the
results.
The variances will be transferred to CO-PA, through transfer structure maintained Z0.
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6.4 Settling Projects / Orders:

As period end activity Sales orders, projects as well as process orders will be settled to
profitability segments. These objects are used for various purposes relevant to Profitability
Analysis.
Internal orders and projects can be used to control the costs of an internal activity, such
as the costs of an advertising campaign. The costs of the activity are posted to the order
and collected there. At the end of the activity, they are settled to the appropriate
profitability segments, such as the product range and sales area.
Project is made in make-to-order and is settled to Profitability Segments. Sales orders

will be settled to CO-PA to settle the job work in costs to the profitability analysis. The
Project balances will be transferred to CO-PA through transfer structure Z1.
6.5 Direct Posting from Financial Accounting:

Directly post primary postings to profitability segments, if required and is directly identifiable.
This allows to post like sales deductions or actual costs that are first accrued at the end of the
period for the purposes of estimating profits - such as annual rebates or freight costs - to the
appropriate Profitability segments at a later point in time. Post the actual costs to the original
profitability segment (sales order or combination of product and customer), or - if a detailed
assignment is not necessary or no longer possible - to any higher level in Profitability Analysis
(actual freight posted to the division).
If the process requires the dual postings to both a profitability segment and a cost center or
statistical order, the real posting always goes to the profitability segment. The other object is
posted only for statistical purposes.
Double postings can make sense if, for example, to post expenses for a marketing campaign to
a profitability segment that represents a certain product group and sales region, and at the
same time need to see the data in the relevant sales cost center for statistical purposes.
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SUPERSEDES: N/A
GAP : While making direct posting to the CO-PA, System does not validate for the characters to
be entered in the document. User has to key in the characters properly.
6.6 Periodic Overhead Allocations:

To reflect all the actual costs from Overhead Cost Controlling in Profitability Analysis, transfer
the cost center costs, which are not directly attributable to the production process. Transfer
these costs to any profitability segments and thus assign them to any level of contribution
margin hierarchies.
Transferring Cost Center Costs
It is possible to transfer the overhead costs to Profitability Analysis such as the variances of
process order (as a single whole, not according to variance categories) and the costs for sales
and administrative cost centers. Cost center costs are always transferred to one profitability
segment (value field) in one segment.
It is also possible to transfer postings that are made in Financial Accounting to cost centers and
profitability segments at the same time. In this case, the postings are statistical in Cost Center
Accounting, while the true costs are stored in Profitability Analysis. The system ignores these
statistical costs in Cost Center Accounting when assessing costs to Profitability Analysis
Overhead Allocation
Assessment cycles allocate planned or actual costs for cost centers to profitability segments in
CO-PA on the basis of reference values, percentages, or fixed amounts.
6.7 CO-PA Manual Document entry:

Data is usually transferred to Profitability Analysis automatically. However, in some cases it may
be necessary to enter line items manually (for example, in order to correct postings). By creating
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SUPERSEDES: N/A
characteristics groups and value field groups and assigning them to record types, can reduce
the number of the characteristics or value fields need to enter and achieve the desired amount.
Information System in CO-PA
The CO-PA information system uses an online reporting tool - called "drilldown reporting" ,
which allows to evaluate the data collected in Profitability Analysis. With this tool we can select
the desired dataset according to any of the characteristics in our CO-PA system.
It is possible to display several profitability segments for any key figure, or several key figures
for any profitability segment.
The CO-PA information system provides a number of different ways to analyze profitability data.
We can define and display profitability reports to analyze the characteristics that are contained
in the segment level for an operating concern.
When defining the profitability report, it is possible to specify the different analysis criteria mainly
by selecting characteristics and value fields.
Some of the MIS reports for Sales and Profitability Analysis of ARCH would be generated
through CO-PA.
The following is the report expected from the system and need to be generated through report
tools:
Gross Sales
Less: Excise Duty
Net Sales Level I
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Less: Discount/Commission
Less: Freight Outward / Octroi
Net Sales Level II
Less: Cost of Goods Sold (R.M. Cost, Direst Cost, Power/Fuel, Manufacturing Ohds)
Net Contribution
Enhancement/GAPS
8.1 Derivation of SCE at Depot Plant

When the billing document is posted to FI, the cost component structure of product is to be
transferred to arrive at the cost break up for further contribution analysis. As the standard cost
estimate for the finished goods are generally released to Valuation Type MFG at manufacturing
plants, the cost break up is not available at the depot plants. These products are stock
transferred to Depot Plants and delivered and billed to the customer. System can not derive the
cost break up in CO-PA document as no cost estimate exists at Depot Plant valuation area
level.
An enhancement in CO-PA valuation segment is required to derive the cost break up in the
billing document based on the standard cost estimate of the origin plant in which it is
manufactured
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8.2 Derivation of Manufactured plant :

in case of sales happened from the depot, system does not have the manufacturing plant for
that materials directly. This need to be derived through the batch. Since the batch numbering is
plant specific, the manufacturing plant will be derived with the enhancement.
8.3 Exclusion of Standard Cost Estimate:

Other than Valuation Type MFG, normally system pass the standard cost estimate to all the
valuation types, based on the Costing assignment to the Material Type. The COGS Value need
to be passed on to Key Material Value field in case of Valuation Type other then MFG.
8.4 : Project/Sales order Settlement:

While settling the order / project System is not posing the Valuation Type /Material Code. The
same need to be derived and passed into the line item. In the same manner system is not
updating the Sales document type, distribution channel and division in PS settlements.

Archit BBP CO-PA V1 30112010

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Project: ARCHIT

ARCH Pharmalabs Limited

Business Blue Print

TITLE: Controlling CO-PA Business Blue Print

10th December, 2010

Bhushan P Arch Pharmalabs Limited

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TITLE: Controlling CO-PA Business Blue Print

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TITLE: Controlling CO-PA Business Blue Print

Mr. Paresh Jain

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TITLE: Controlling CO-PA Business Blue Print

Flow of Actual Data to CO-PA..................................................................................20

Information System in CO-PA..................................................................................29

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TITLE: Controlling CO-PA Business Blue Print

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TITLE: Controlling CO-PA Business Blue Print

Costing-based Profitability Analysis

Account-based Profitability Analysis

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TITLE: Controlling CO-PA Business Blue Print

Profit of certain product

Profit of certain product in a certain region

Profit of certain product in a certain region by a certain customer

Profit of certain product in a certain region by a certain sales person etc.,

Plan vs actual profitability analysis

Reports Can be drawn based on the WBS Elements

- Arch Operating Concern

- V3 April March with 4 Special Period

- INR Indian Rupees

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TITLE: Controlling CO-PA Business Blue Print

Characteristic starting with WW are

created specific to Arch:

Sales Doc. Type

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3.2 Value Fields:

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3.3 Characteristic Derivation

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These values need to be derived through enhancements or derivation rules.

4.1 Valuation using material costing

Name of Cost Comp.

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Point of Valuation 01- Actual data and 03- Planned data

4.2 COGS from Valuation Type

900 - CO Area/CoCode/Val. Type Consist of the following fields:

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Valuation TypeDOM, IMP, JOB,DOMEP,IMPEP

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5.1 Planning Layout

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