Ac610 (Pca) Erp

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© SAP AG AC610 Preface-1

? SAP AG 2003

AC610 Profit Center Accounting

? SAP AG

THE BEST-RUN BUSINESSES RUN SAP

© SAP AG 2003

AC610Profit Center Accounting

? SAP R/3 Enterprise

? 2003/Q3

? Material number 50061572

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? SAP AG 2003

Copyright 2003 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted inany form or for any purpose without the express permission ofSAP AG. The information contained herein may be changedwithout prior notice.

All rights reserved.

Copyright

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Course Prerequisites

? Basic knowledge and experience in Controlling/Financial Accounting

? Knowledge of Overhead Cost Controlling,Product Cost Controlling and ProfitabilityAnalysis

? SAP01 – R/3 Overview (recommended)

? AC040 Cost and Revenue Accounting

? AC410 Cost Center Accounting (recommended)

? Good working knowledge of Windows operatingenvironment

? Knowledge of Report Painter / Report Writer

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? SAP AG 2003

Target group

? Training course AC610 is intended for:

? Project team members responsible for implementing

Profit Center Accounting

? Accounting personal responsible for profitabilityreporting

? Duration: 3 days

Notes to the user

? The training materials are not teach-yourself programs. They complement the course instructor's

explanations. On the sheets, there is space for you to write down additional information.

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© SAP AG AC610 1-1

? SAP AG 1999

Contents:

? Course Goals

? Course Objectives

? Course Content

? Course Overview Diagram

? Main Business Scenario

Course Overview

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Aims of the course

This course will prepare you to:

? understand the business purpose of Profit CenterAccounting

? describe and maintain Profit Center Accountingglobal settings, including master data

? identify the various sources of actual data, use therelevant transactions, and process the resultingtransaction data

? understand plan integration and use the associatetools

? summarize, analyze and evaluate profit center data

? understand the fundamentals of the transfer pricingsolution

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Course Objectives

On completion of this course, you will be able to? set up the Profit Center Accounting application

? differentiate between Profit Center Accountingand Profitability Analysis

? use the essential functions of Profit CenterAccounting in the context of Planning and

Actual business processes

?

understand the business purpose of ProfitCenter Accounting as it relates to ProfitabilityManagement

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Unit 5 Transfer Prices

Unit 6 Profit Center Planning

Unit 7 Information System

Unit 8 Conclusion

Unit 1 Course Overview

Unit 2 Profitability Management

Unit 3 Master Data

Unit 4 Actual Data

Preface

Appendix

Course Content

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Master Data

Information

System

Transfer Prices

Actual Data

Profit Center PlanningProfitability

Management

Course Overview Diagram

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Main Business Scenario

? After several months of using the R/3 System,IDES Management has decided to startprofitability reporting.

? You are the employee of the IDES companywho has the task of evaluating how useful itwould be for the company to implement ProfitCenter Accounting.

? You will be responsible for the implementationof this application and manage it once it is inproduction.

? You have been working for some time inCO/FI. Armed with this experience, you want tofind out how to use Profit Center Accountingfor the orientation of the entire Controllingdepartment at IDES.

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Profitability Management

Contents:

? Definition of Profitability Management

? Profitability reporting options in the R/3 System

? Business purposes of CO-PA and EC-PCA

? Aspects of Profitability Management Approaches

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Profitability Management: Objectives

On completion of this unit, you will be able to

? describe the business purposes of ProfitabilityAnalysis and Profit Center Accounting in theR/3 System

? identify information which can be obtained inProfitability Analysis and Profit Center Accounting

? clarify the aspect and scope of profitability

management in the R/3 System

? At the end of this unit, the course participant should be able to accomplish these tasks.

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Profitability Management: Course Overview Diagram

Actual Data

Master Data

Information

System

Transfer Prices

Profit Center Planning

Profitability

Management

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Business Scenario: based

? Both cross-company and company-specific reporting is

required, in multiple currencies

? The set up of profit and loss reporting is multidimensionaland covers elements of the sales force, product lines,customers and other organizational units.

? Profitability information, including sales revenues, cost of

goods sold, (of the products sold), overheads andproduction variances, is analyzed.

? At the end of the period the overheads are settled to theprofitability segment.

? Reports on financial key figures, including cash flow, ROI

and EVA (Economic Value Added) are required.

? The corporation has legal entities in Germany, Italy, and the United States. It therefore requires the

ability to report sales and profitability both across the corporation in a corporate currency and withineach of the legal entities in their local currencies.

? The sales managers require summarized sales performance figures, like revenue, discounts, andsurcharges both along as well as across the lines of the company's sales structure, product lines, andcustomers.

? They also require both costs of goods sold and accountable fixed costs along these lines as well.The distinction of non-period costs (such as freight costs and insurance) is only made in Controlling.The ensuing overheads are settled to the distribution channels and areas of responsibility using defined

tracing factors.

? Enterprise Controlling requires a profitability report divided according to areas of responsibility. To

achieve more efficient financial controlling, it is absolutely essential to perform an analysis of balancesheet items and produce corresponding key figures.

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Terminology in Profitability Management

? SAP AG

Standard

Costing

FullAbsorption

Costing

Actual CostsActual Costs

Cost-of-Sales

Accounting

Non-cumu-lative Values

Non-cumu-lative Values

MarginsMargins

Return onInvestment

Return onInvestment

EconomicProfit

EconomicProfit

Cashflow

Cashflow

ContributionMargin

ContributionMargin

GrossSales

GrossSales

NetRevenue

NetRevenue

VariancesVariances

FixedCosts

VariableCosts

Direct Costs

SalesDeductions

SalesDeductionsPeriod

Accounting

PeriodAccounting

Plan CostsPlan CostsOverhead Costs

EVAEVA

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Methods of Profitability Management

Factory output

CostCost--of of --Sales AccountingSales Accounting

RevenueSales deductions

Changes in stock value levelsin a finished productCapitalized internal activities

Changes to work in process…

Material costsPersonnel costs

DepreciationOther costs

RevenueSales deductions

Cost of sales…

Gross results

Operating profit Operating profit

Period AccountingPeriod Accounting

Sales and Marketing costsAdministration costs

Research and development

? The two accounting methods used for calculating profit are the cost-of-sales method and the period

accounting method. Regardless of the different methods of calculation used, both methods lead to thesame operating profit.

? With the cost-of-sales method, the emphasis is on matching the revenues for goods and/or services provided (the value that a company gains as a result of sales) against the related expenses for thoseitems (the value that is lost when products are transferred out of the company). Therefore, this

accounting method displays profit and loss information in a manner optimized for conducting marginanalyses, and as such it is optimal for profitability and sales accounting.

? With the period accounting method, the emphasis is on summarizing the activity and situational change

over a period of time, for a given organizational unit. Therefore, this accounting method presents therevenues and primary expenses that have been incurred during a given period of time and the changes instock value levels in a finished product, work-in-process, and capitalized activities. This method is

therefore better suited for the needs of production cost management.

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Profit Center

Profitabilitysegments

Profitability Report byAreas of Responsibility

Profitability Analysis byMarket Segments

Revenue 2000.00Conditions 100.00Cost ofgoods sold 460.00Contr. margin I 1440.00Sales costs 230.00.. .

Revenue 2000.00Personnel costs 468.00Material costs 230.00...Operating profit 1000.00Capital 12000.00ROI 12 %.. .

Procurement Storage Production Sales

Views of Profitability Management

Cost ofGoods Sold

? Classic profitability and sales accounting

CO-PA lets you analyze the profitability of your market segments, structured according to products,customers, orders, and summarizations of these and other characteristics. The aim is to provide your

sales, marketing, planning, and management organizations with decision-support from a market-oriented viewpoint. (information supply function)

? Enterprise Controlling

Profit Center Accounting provides information on operating profit at the level of areas of responsibility.These can be structured according to various criteria - by product division, location, function(production, sales) and so on.

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Which are the largest and

fastest growing customers?

(Key accounts)

Has the distribution chain reached

its contribution margin goal?

What was the success of the

sales promotion for a product

line?(Marketing profitability statement)

What is the impact of a pricing strategy for the revenue and

contribution margin

of a specific customer group?

Contributionof individual

market segments

Contribution margingoals of individualdistribution chains

PriceSensitivity

Success of

MarketingActivities

Typical Questions in Profitability Analysis

? The best way to illustrate the purpose of Profitability Management in the R/3 System is to think about

the following typical questions:

How much is: - the revenue

- the cost of goods manufactured

- the contribution margin

- the administrative and sales costs

- operating profit

for defined market segments.

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Profitability Analysis by Market Segments

Reporting Dimensions (Characteristics)

Customer Region

Sales OfficeBusiness Unit

Revenue

Costs

L o s s

P r o f i t

Sales Quantity

Revenue

Customer discount

Sales commission

Direct sales costs

Net revenue

Direct material costs

Direct costs of production

Contribution margin I

Material overheads

Production overheadsContribution margin II

Variances

Contribution margin III

Overhead Costs

Operating Profit

Product

Determine and analyze the

profi tabi l i ty of market segments

? Profitability Analysis makes it possible to provide an analysis of profit for any segment of the sales

market. Close cooperation between Marketing/Sales & Distribution and profitability and salesaccounting is absolutely essential for defining the characteristics (profitability segments) which form

these segments.

? The market segments and key figures (values, quantities) to be analyzed can be freely definable, soallowing maximum flexibility in market evaluation.

? Key figures are generally sales quantities, revenues, conditions, costs of goods manufacturedand so on.

? Profitability Analysis is carried out using a graphical navigation instruments, Drilldown Reporting,

which makes it possible to navigate comfortably within the multidimensional data contained in the profitability segments.

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Typical Questions in Profit Center Accounting

What is the operating profit for a profit center?

What value contribution does aProfit Center achieve as part of a

value-oriented-driven business?

Which responsibility areasexceeded their plan last month?

What goods and services are

exchanged at what price (transfer price) between profit centers?

Contribution of an organizational

unit

Profitability(EVA)

Internalexchange

of

services

CostManagement(Cost Center)

? The best way to illustrate the purpose of Profitability Management with Profit Center Accounting is to

think about some of the typical questions which can be answered.

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Profitability Accounting by Area of Responsibility

Objects to be Evaluated

Profit Center

Profit

Revenue

Sales Deductions

Cost of Goods Sold

Admin./Sales Overheads

Operating Profit

Accounts Payable

Accounts Receivables

Assets

Warehouse Stocks

Invested CapitalCost of Capital

Return on Investment

Accounts

ROI

Equity Turnover Return on SalesReturn on Net

Assets InvestedCapital

Determine and analyze profit, balance

and financial ratios by Pro fi t Center

? EC-PCA lets you analyze profit and loss for profit centers.

A profit center represents an independent organizational subunit that operates practically independentlyon the market, bears responsibility for its own costs and revenues, and can be expanded to become an

investment center. (Company within the company). Certain balance sheet items (assets, stock ofsemifinished and finished goods, payables, receivables) can be transferred to Profit Center Accountingon a periodic basis. The profit center approach therefore embodies the increasing rapprochement

between internal and external accounting, functioning as a connecting link between the two accountingconcepts.

ROI, EVA and cash flow analyses are therefore possible at profit center level.

? Derivation of profit centers is carried out on the basis of the assignment of warehouse stock, costobjects and overhead objects to the relevant profit centers. (Assignment in the material master, cost

center master, internal order, production order, sales order, sales order item, project, WBS element, product cost collector, network).

All profit-relevant business transactions are updated "statistically" in Profit Center Accounting at thesame time they are processed in the original components of the R/3 System. (Parallel accounting

system).

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Profitability Analysis

Value fields/cost or rev. elements

Revenue 1 000 000

Sales deductions 100 000--------------

Net revenuesNet revenues 900 000900 000

Direct material costs 400 000Direct costs of production 190 000Prod. variances by

variance categories 10 000--------------

Contribution margin 1Contribution margin 1 300 000300 000Material overheads 50 000Production overheads 50 000

--------------Contribution margin 2Contribution margin 2 200 000200 000

Research & develop. 10 000Marketing 50 000

Sales and administration 40 000--------------

Operating ProfitOperating Profit 100 000100 000


Cost and Revenue Elements800000 Revenues 1 000 000808000 Sales Deduction 100 000

--------------

Net revenuesNet revenues 900 000900 000893000 Cost of goods sold 690 000231000 Price differences 10 000

651000 Research & develop. 10 000671000 Marketing 50 000655000 Sales and

administration 40 000

--------------Operating ProfitOperating Profit 100 000100 000 ((--))160000 Acc. Payables (Delta) 800 000 (-)140000 Acc. Receivables

(Delta) 1 200 000300000 Stock (Delta) 450 000… --------------

Cash FlowCash Flow 750 000750 000

Cost of CapitalCost of Capital (11%) 82 000

Economic Value Added (EVA)Economic Value Added (EVA) 18 00018 000(Operating Profit / Cost of Capital)(Operating Profit / Cost of Capital)

Reporting

? Period operating results for defined profitability segments of Profitability Analysis are determined

methodically in accordance with cost of sales accounting.

? The provision of condition types from SD (Sales and Distribution), or cost components from costing,

allows a detailed analysis of the control factor "Operating Profit" for market segments divided by salesmarket (a multidimensional profitability segment of combined characteristic values represents a certainmarket segment), thus creating the prerequisites for an efficient target-group-oriented handling of the

market.

? To complete the cost reporting, the "classic" overheads of the overhead objects (cost centers, internalorders, processes) are periodically settled to the profitability analysis. The product variances, split by

reason for variance, are transferred to the profitability analysis during the settlement (periodic or fullsettlement) of the run schedule headers or production orders.

? Profit Center Accounting allows a profitability report by period or cost-of-sales accounting. If youdecide to use the CSA you need to define and determine functional areas which contain the relevantcost components as functional costs (cost of goods manufactured, sales costs, administrative costs,research and development costs). Specific balance sheet accounts can also be displayed on profit center

level (Investment Center) opening up a range of possibilities for financial analysis and allowing cashflow analyses and other profitability indicators to be displayed, for example Return on Investment(return on sales x equity turnover = return on net assets). This provides the basis for a value-oriented

management approach. (EVA analyses).

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FIFI

Cost and Revenue Accounting

Overhead CostControlling

Product CostSAP AG Controlling

ProfitabilityAnalysis

COCO

RevenueDiscounts

CostObject

ECEC--PCAPCA

SDSD


? Processes? Cost Centers? Internal Orders

Value Flow in Profit Center Accounting

PPPP MMMM

Stock WithdrawalOrder Delivery

? Internally, all profit-related business processes are also represented in Profit Center Accounting, in

addition to being mapped in the classic R/3 revenue and cost accounting modules (overhead costcontrolling, production cost controlling, profitability analysis).

? Profit Center Accounting is part of Enterprise Controlling and thus acts more or less as a 'background parallel controlling'. Your postings are defined as statistical because a profit center is not normallydirectly assigned. (Exception: P & L statement accounts, balance sheet accounts).

? You can transfer to Profit Center Accounting in realtime and directly (online), or by subsequent postingto the period end using special subsequent posting programs.

? You need to activate online data transfer in the profit center settings for the controlling area.

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? Profit Center ? Profit Center Groups

?

Accounts

ProfitabilityProfitabilityAnalysisAnalysis

COCO

ECEC--PCAPCA

Profit Center AccountingProfit Center Accounting

? Profitability Segments

? Characteristics? Characteristic Values? Characteristic Hierarchies

? Value Fields or Cost/Revenue Elements

COCO--PAPA

Objects in Profitability Management

? The objects for analysis in CO-PA are the individual profitability segments which are dynamically

formed and represent a specific combination of characteristic values (values of the defined reportingdimensions = characteristics).

? Profitability segments are often combinations of product, customer and sales structure information withcertain account assignment objects/organizational units (company codes, controlling areas, profitcenters).

? The profitability analysis is forced to follow the methodical approach of cost-of-sales accounting (CSA)(which is the classic reporting instrument for profitability and sales accounting with contribution marginaccounting and analysis of fixed cost allocation), although not the structure schema according to § 275

para.3 German GAAP required for external reporting. In parallel characteristic hierarchies you cansummarize using different characteristics.

? Profit centers primarily represent operational areas of responsibility therefore the primary aim of ProfitCenter Accounting is to determine a quasi external year-end financial statement (profit and lossstatement, balance sheet) for this 'company within the company' (segment reporting). Traditionally, the

profitability report is carried out in accordance with the period accounting

(PA, cf. § 275 para.2 German GAAP).

Profit Center Accounting can also be illustrated according to CSA by defining and determiningfunctional areas (= FI organizational units). It is possible to summarize profit centers to profit center

groups in the standard hierarchy and also in alternative hierarchies.

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Order Cost ObjectsProject

Cost Center

ControllingArea

CompanyCodes

Profit Center Profit Center Profit Center

Profitability

Segment

Profitability

Segment

OperatingConcern

Profitability

Segment

Cost Center Cost Center

CompanyCodes

SalesOrganization

Plant

CompanyCodes

Organizational Units and Master Data

? The operating concern is the highest level of reporting used as a basis within CO-PA. It defines the

profitability information which can be analyzed at this level. One or more controlling areas are assignedto an operating concern when organizational structures are defined. Often, corporations have only a

single operating concern, which is recommended for the sake of simplicity and convenience if allcontrolling areas and company codes share the same fiscal calendar (account-based profitabilityanalysis). This restriction can be removed for costing-based profitability analysis if there is no

assessment executed from the cost center accounting to the profitability analysis.

? The controlling area is an organizational unit delimiting the organization's independent costaccounting operations (cost center accounting, profit center accounting, and order accounting).

Company codes are assigned to controlling areas when organizational structures are defined. Often,a 1:1 relationship exists between the company code and the controlling area. However, a controllingarea can also incorporate several company codes. This way you can take into account cross-company

cost allocations.

? The company code is an independent accounting unit within a client. The legal requirements of a balance sheet or profit and loss statement are fulfilled on the company code level. Plants are assigned to

company codes when organizational structures are defined.

? A plant is an organizational unit within Logistics and the company maps this unit in terms of procurement, production, maintenance and materials planning.

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DEM Dollar Euro

Company codecurrency

Transactioncurrency

Profit Center currency

ProfitabilityAnalysis

Operating concerncurrency


Account-based

Costing-based


Transaction

currencyControlling areacurrency

COCO--PAPA

ECEC--PCAPCA

Parallel Currencies in Profitability Management

? In costing-based CO-PA, all amounts are stored at minimum in an operating concern currency, which

is specified in the operating concern attributes.

? It is also possible to configure the attributes to store values in the local currency as well; this has the

effect of doubling the stored transaction data, though.

? Account-based CO-PA stores all transactions in three currencies: the transaction currency, the localcurrency, and the controlling area currency.

? Profit Center Accounting can store transactions in the transaction currency, the local currency, and aspecial profit center accounting currency (e.g. group currency for the profit center local currency).

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Different Views of a Corporation (*)

Profit Center Division 3

Division 2

Division 1

Division 4

TP

TP

TP

Group

Company Code 3

Salescompanies

Company Code 2

ProductionFinished goods

Company Code 1ProductionSemi-finishedprods

TP

TP

Legal

(Intracompany andintercompany)

(Intercompany)

? Different decision-makers in a company need different types of information.

? For this reason, those responsible for the individual group companies require profitability data to berepresented from the viewpoint of each company code and to match the income statement from

external reporting.

? For the group head office, the group as a whole is generally the most important view. This means thatthe basis for decision-making requires the group to be represented as a business unit and to eliminate

intercompany profits.

? Especially if company units such as profit centers are to be run like independent companies, the profitcenter managers require the equivalent type of information. In such cases, exchanges between profit

centers within a company are also taken into consideration.

(*) The Group can be seen here as a controlling area and should therefore not be confused with the term

Group in the context of external reporting (§ 290 German GAAP)

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Group(= Controllingarea)

Company 3Company 3

Legal

Company 1Company 1 Company 2Company 2

Group

Profit Center 1

Profit Center 2

Parallel Valuation Views

Profit Center Group

? The view of the individual company and the valuation of business transaction according to legal

reporting requirements only represents one of several possible perspectives. The legal valuation view isdetermined by commercial and tax accounting regulations.

? In addition to this legal view, though, successful corporate and group management needs otherinformation that shows business activities from the point of view of the whole group or of individual

profit centers.

? Corporate controlling for the entire group requires you to valuate these business transactions usinggroup production costs (group view). Moreover, in many groups the management structures do notcorrespond to the individual legal accounting units. Internal prices guide the activities of the individual

profit centers according to market principles. Consequently, value flows represented from the point ofview of profit centers are vital for management in terms of 'internal' profitability management.

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Summary I

CO-PA

costing-based

CO-PA

account-based

EC-PCA

Profi t Center

Market

Profi tabi l i ty

Market

Profi tabi l i ty

Enterpr ise

Control l ing

Cost-of-Sales

Account ing

Cost-of-Sales

Account ing

COS & Period

Account ing

Profitabil ity

Segments

Profi tabi l i ty

Segments

Profi t

Center

Profit-Related

Key Figures

Profit-Related

Key Figures

Profit-Related

and Financial

Key Figures

Aims of ProfitabilityAccounting

Method

Objects to beanalyzed

Key Figures

Comparison

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Summary II

CO-PAcosting-based

CO-PAaccount-based

EC-PCAProfi t Center

Operat ing Con cern,

Company Code

Transaction,

CompCode/CO Area

Contro l l ing Area

Transaction,

CompCod e/CO Area

Profit Center

Operating

Concern

Contro l l ing

Area

Control l ing

Area

Account-based

values o nly

trouble-free

Pos ted Values Posted Values

Currencytranslation

Organizational

Units

Reconciliation

with FI

Comparison

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Profitability Management: Unit Summary

You are now able to:

? demonstrate the aims and potential of ProfitabilityManagement

? identify the objects to be "controlled" in Profit CenterAccounting and Profitability Analysis

? explain the financial key figures that can be created

within Profit Center Accounting

? understand organizational structures, and currencyand valuation approaches

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Master Data

Contents:

? Profit Center Accounting Settings

? Master Data

? Profit Center Assignments

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Master Data: Objectives


? describe the steps to set up Profit Center Accounting:

? maintain the controlling area settings

? create the dummy profit center

? create the standard hierarchy

? create profit centers and profit center groups

? create additional master data

? assign objects to profit centers

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Actual Data

Master Data

Information

System

Transfer Prices


Profitability

Management

Master Data: Course Overview Diagram

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Master Data: Business Scenario

? The IDES corporation has decided to implement

Profit Center Accounting.

? The year-end financial statement (balancesheet, profit and loss statement) is to beextended to include areas of responsibility

? Both P&L and balance sheet information needsto be able to be consolidated by company code,line of business and along regional criteria.

? Your project team wants to understand how the

profit center account assignment is derived fordifferent controlling objects.

? IDES Corporate has legal entities in Germany, Italy and the United States, and requires P&L and

balance sheet item reporting across the corporation in various currencies.

? Carrie Cash, the accountant on your project team, asks you to explain what entity is represented by a

profit center. She also wonders about the options available for grouping cost centers together forreporting.

? Carrie also wonders what needs to be set up in Profit Center accounting as far as account numbers for

both P&L and balance sheet accounts are concerned.

? Randy Sales wants to get an understanding where the system will find the profit center for revenuerelated postings.

? Your production managers are interested in tracking production variances, as well as inventory valuesfor each of their profit centers.

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? Controlling Area Settings

Topic

Master Data: Topic I

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Standard Hierarchy

Eliminating internal business volume

Controlling Area 10001000

Dummy Profit Center 99999999

H1H1

.

.

.

.

.

.

.

.

.

.

CO Europe

Dummy ProfitCenter

Controlling Area Settingsfor Profit Center Accounting (1)

Controlling Area Settings

? SAP AG 2003

? Profit Center Accounting takes its data primarily from business transactions in other Accounting and

Logistics components. Certain parameters of the controlling area must be in place in order for you to beable to use the functions within Controlling and Enterprise Controlling. You can maintain these

parameters in Customizing for the relevant Accounting component.

? The first step is to set the name of the standard hierarchy for the profit centers. The system creates thetop node or group of the standard hierarchy automatically when you save your settings. You can then

maintain it to create the lower level nodes required to complete your hierarchy.

? The dummy profit center is also entered here for information. This is used for all postings to objectsfor which no profit center has been found. Both the standard hierarchy and dummy profit center are

covered in more detail in the master data discussion.

? Elimination of internal business ensures that the system will not post transaction data between objects

of the same type (cost centers, internal orders) which are assigned to the same profit center.

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Controlling Area Settings for Profit Center Accounting (2)


Uni

CO Europe

30 Group currency

From yr Active Indicator

1994

Profit Center Local Currency

Store Transaction Currency

Costing View

Profit center local currency type

ALE Distribution Method

Legal valuation

No distribution to other systems

Control indicator

Controlling Area Settings

? In the profit center local currency type field, you select whether to use the controlling area currency

(20), the group currency (30), or a special profit center currency (90) as the EC-PCA report currency. Ifyou choose the last option, you must define the required profit center currency.

? The system will automatically record transaction data in Profit Center Accounting in both the currencyof the company code (local currency) and the profit center local currency. If you also want to store thedata in the transaction currency, check the Store transaction currency box.

? The valuation view defines the valuation approach used to value material inventories and goodsmovement. In EC-PCA, you choose one of the following views in each controlling area:?With the legal view, you valuated material stocks and goods movements with the same valuation

approach used in the legally independent units (company codes).?With the group view, you valuate goods movements within affiliated companies using a group cost

of goods manufactured. Here, for example, the receiving profit center receives a semi-finished good

without profit markup from the sending profit center, meaning that no revenues are shown with this

approach.?With the profit center view, you can show internal revenues in EC-PCA. Transfer prices are

automatically found for goods movements between profit centers and shown as internal revenue andinternal costs in EC-PCA. In this case, a goods withdrawal crossing profit centers is shown as aquasi-sale in Profit Center Accounting, while it is a consumption posting from the company code

view.? The control indicator flag activates Profit Center Accounting in the controlling area beginning with

the specified fiscal year. If this indicator is not set, no data will be transferred to Profit Center

Accounting.? The distribution method determines which data is stored in which system.

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? SAP AG 2003

? Master Data

Topic

Master Data: Topic II

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Regional Profit Center Structure

Functional Area-Oriented Profit Center Structure

Product-Oriented Profit Center Structure

Business Unit Profit Center Structure

The Profit Center Structure

? Profit Center Accounting supports a division of the enterprise into areas of responsibility for profits.

You can divide your enterprise according to the following aspects:

geographical division of profit centers (locations, regions, and so on)

product-related division of profit centers (divisions, product lines, and so on)

functional division of profit centers (production, sales and distribution, research, and so on)

? Mixed forms of these structures are also possible. You can, for example, opt for a regional structure

based on business locations and then subdivide each location by the products made there

? To define this organizational structure, create the profit center master data accordingly. Forevaluations at a higher level of aggregation, you can combine profit center groups. The standard

hierarchy is a special profit center group. In addition to this, you can define alternative groups.

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H1IDESIDES EuropeEurope

H1010H1010

Vehicles

1110Model R1100

H2000H2000Corporate

H2300H2300Finance andFinance and

Admin.Admin.

H2100H2100InternalServices

H1110H1110

Motorcycles

H1120H1120

Bicycles

1220Model RX7

1000Model BX4

1210Model MX3

1200Model CV2

H1200H1200

2100Seats

H1210H1210

Bicycle

Parts

H1220H1220

Sportwear

2200Shirts

H1230H1230

Helmets

H1000H1000StockStockProductsProducts

2300MotorcycleHelmets

H1300H1300

Sales and

Marketings

H1400H1400

Technical

Department

Accessories

The Profit Center Standard Hierarchy

? You must define a hierarchical profit center structure before you create profit centers. This structure is

called the standard hierarchy. The standard hierarchy is a tree structure for grouping all profit centerswhich belong to a controlling area. When creating a profit center, you must assign it to a group (node)

of the standard hierarchy. This ensures (in particular for reconciliation purposes) that all the profitcenters of the controlling area are grouped in one node.

? You can maintain the standard hierarchy in Customizing or from the application menu. Customizing

also provides a function which allows you to create profit center groups by copying cost center groups.If your cost center structure is similar to your profit center structure, you can use this function to copythe cost center standard hierarchy to create your profit center standard hierarchy.

? In addition to the standard hierarchy, you can define alternative hierarchies, for example for evaluation purposes. You can also create alternative hierarchies by copying alternative cost center groups.

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Profit Center - Master Data

Validity

Period

Company Code

Assignment

BasicData

Address/

CommunicationsData

Profit Center Profit Center

? A profit center is defines at controlling area level. When creating a profit center, you enter the name of

the profit center and the period of validity. Profit center master data is time-based; therefore, you cancreate different data for different periods of time. You can copy the master data information from an

existing profit center.

? You maintain the important master data on the basic screen, such as the profit center name anddescription, the person in charge, and the department.

? The hierarchy area field defines the assignment to a node in the standard hierarchy.

? By selecting the lock indicator, you can lock the profit center against any postings, for the specifiedtime interval. If an account assignment object is assigned to a locked profit center and you attempt to

post to it, the system will display an error message and does not post the data.

? You can enter more information for the profit center on additional screens, such as address andcommunication data and long text.

? By default, a profit center is assigned to all the company codes within the controlling area. You canexclude certain company codes for a profit center by not selecting these company codes. If you attemptto post data to profit centers in company codes which are not assigned to the profit center in question,

the system will not carry out such postings. The assignment is also relevant for transferring the profitcenter/company code combination as a consolidation unit to EC-CS.

? If your profit center and cost center structures are the same, you can copy cost center master records to

create new profit centers and then modify them as required. To accomplish this, nodes must have beencreated on the profit center standard hierarchy which are identical to the nodes on the cost centerstandard hierarchy. You cannot use this function to overwrite existing profit centers.

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Profit Center - The Dummy Profit Center

Indicators:Validity

Period

BasicData

Address/

CommunicationsData

Dummy ProfitCenter

Dummy ProfitDummy Profit

Center Center

? In practice you may inadvertently forget to assign a particular object to a profit center. If postings are

made to this object, the corresponding data is posted to the dummy profit center in Profit CenterAccounting. This ensures that reconciliation between EC-PCA and Financial Accounting is still

possible. You can also discover missing assignments by analyzing the postings to the dummy profitcenter. Profit Center Accounting lets you allocate the data from the dummy profit center to regular

profit centers using distribution and assessment.

? This procedure is almost the same as that for creating normal profit centers - the only differences being:

?You do not specify a validity period. It is automatically valid for the maximum validity period.

?You cannot copy the dummy profit center from an existing profit center.

?A switch identifying it as the dummy profit center is automatically set (in the "indicator" folder).

?

You change and display the dummy profit center using the normal maintenance transactions for profitcenters.

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Collective Master Data Processing

ProfitProfit

Center Center ProfitProfit

Center Center ProfitProfit

Center Center

ProfitProfit

Center Center

Selection variantSelection variant

Company CodeCompany Code

AssignmentAssignmentMaster DataMaster Data

ProcessingProcessing

Profit Center Profit Center Comp. Cd1Comp. Cd1 Comp.Comp. Cd2Cd2

BicyclesBicycles XX

Sportswear Sportswear XX

Profit Center Profit Center Dept.Dept. Pers. resp.Pers. resp.

BicycleBicycle Sports N.N.Sports N.N.

Sportswear Sportswear Sports N.N.Sports N.N.

? Mass maintenance is particularly useful when you need to adapt existing data to a change in

circumstances, for example, if master data fields (e.g. department, person responsible) or company codeassignments are to be changed.

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Profit Center AccountingProfit Center Accounting

Example: International Chart of Accounts

Revenueelements

Primarycost

elements

5Secon-

darycost

elementse.g.

Assess-ment

6Secon-

darycost

elementse.g.

Int. activityalloc.

ControllingControlling

0 Asset/long-

term

capital

1Currentfinancialassets

andshort-term

capital

2Non-opert.

expenses/revenues

3Materialstock/Proc.costs

Financial AccountingFinancial Accounting

7Finishedand

semi-finishedproducts

8Revenue/Change

in

stockcurrentinternal

activities

9Closing

Financial AccountingFinancial Accounting

1Current

financial

assetsand

short-termcapital

2Non-

opert.expenses/revenues

3Materialstock/Proc.costs

Accounts in Profit Center Accounting

4Expenseaccounts

(Cost

elements)

? Profit Center Accounting is based on the chart of accounts which is assigned to the relevant controlling

area. These accounts include:

?Those from Financial Accounting which are used in Controlling (revenue and primary cost elements)

?Cost elements which are only used in Controlling (secondary cost elements )

?Accounts from FI which are not used in Controlling (payables/receivables, material stocks, work in process, assets and so on)

? You can maintain revenue and cost elements directly in Profit Center Accounting.

? As with profit centers, you can define any number of hierarchical structures of accounts for use in theinformation system, allocations, and planning. These structures, called account groups, are maintained

in the same way as profit center groups. Unlike profit centers, however, a standard hierarchy of

accounts is not required.? Account groups for Profit Center Accounting can be copies from existing cost element groups or

balance sheet/P&L structures.

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Type 01Type 01

Periods 1 2 3 . . . 12Employees 20 20 20 20

Counter no. 1300 1355 1275 1325Type 02Type 02

? A measurable quantity that can be assigned to cost centers,activity types, overhead orders, business processes and profit

centers? Used as an allocation base (”Tracing Factor”) in overhead cost

allocations

? Two categories: Type 1 = Fixed, Type 2 = Totals

? Can be linked to Logistics Information System (LIS)

Statistical Key Figures

? SAP AG 1999

? Statistical key figures are values or quantities (e.g. number of phone calls, sq. m. area, number of

employees) that give further details on the setup, the consumption or performance output of costcenters, internal orders, processes or profit centers.

? You can post statistical key figures both in the plan and in the actual.

? You can use statistical key figures both as an allocation base for periodic distributions, assessments oractivity allocations, and to create key figures (ratios e.g. personnel costs per employee).

? You define a statistical key figure as a fixed value or a totals value:

?The fixed value is carried over from the period in which it is posted to all subsequent periods of thesame fiscal year. You need enter a new posting only when the value changes. Fixed values are

defined when key figures remain constant over a significant period of time. (e.g. Number ofemployees in a cost center)

?The totals value is not transferred to the following period but must be entered for each individual

period and is preferable for statistical key figures whose values fluctuate in individual periods. (e.g.such as kilowatt hours of electricity consumption)

? Statistical key figures can be transferred from the Logistics Information System by linking a key figure

from LIS (e.g. order receipts) to a statistical key figure (e.g. in Cost Center Accounting).

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Master Data Groups

PHR2PHR2F2F2 F3F3 ExemptExemptSalariedSalariedF1F1PHR1PHR1

BicyclesBicycles As sets Assets EmployeesEmployees

WagesWages SalariesSalaries

PersonnelPersonnel

DomesticDomestic

RevenueRevenue

ForeignForeign

ProfitProfit

centerscentersAccount Group Profit Center Account Group Stat. Key Figures

? Profit center groups are alternative hierarchies to the standard hierarchy. You can use these in

reporting, distribution and assessment, or various planning functions. In contrast to the standardhierarchy, these profit center groups do not have to contain all the profit centers in the controlling area.

On the contrary, profit center groups let you select only certain profit centers and structure themhierarchically to allow you more flexibility.

? You can define any number of hierarchical structures of accounts for use in the information system and

for planning. These structures are called "account groups ". You can create new account groups as wellas display or change existing ones. However you can copy account groups from cost element groups inCO or balance sheet/P&L structures in FI.

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? Profit Center Assignments

Topic

Master Data: Topic III

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Cost Center,Cost Center,

BusinessBusiness

processprocess

Cost ObjectsCost Objects

Internal Order Internal Order ProjectProject

Sales Order

Material

ProfitabilityProfitability

SegmentSegment

Asset

Production Order

Profit

Center

ProfitCenter

Profit Center Assignments

? Assign all account assignment objects which incur costs and revenues to profit centers. These

assignments also determine the transfer of balance sheet items to the individual profit centers.

? As a result of the assignment logic, the profit center is normally not posted to explicitly. Instead, data is

derived from primary account assignment objects (cost centers, internal orders).

? Generally, postings of costs and revenues to Profit Center Accounting are based on the assignment ofsales orders/production orders and cost objects. Overhead costs are based on the assignment of the

account assignment objects in Overhead Management (cost centers, internal orders, and so on) to profitcenters.

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Assignment of Controlling Objects

Asset

Internal order,Maintenanceorder

Cost center,Businessprocess

Cost objects

NameName

ResponsibleResponsible

Master record

ProfitCenter

ProfitCenter

Profitability

Segment

? You assign Overhead Cost Controlling objects (cost centers, internal orders, projects, business

processes) to profit centers in order to observe the value flow between Financial Accounting andOverhead Cost Controlling from a profit center point of view.

? When you assign a controlling object to a profit center, the system makes sure that the controlling areais the same for the object and the profit center.

? Cost centers and business processes are assigned to a profit center in the Master Record Basic Data

screen.

? The validity period of the profit center must completely contain that of the cost center or business process.

? Additionally, the assignment of a cost center or internal order to a profit center also implicitly assignsall assets assigned to this cost center or internal order to the profit center as well.

? You link internal orders to a profit center in the Order Master Data Assignments screen. Maintenanceorders of the Plant Maintenance component are assigned to a profit center the same way as internalorders.

? Cost objects are used in Product Cost Accounting to collect and store costs which cannot be assigned to

objects on a lower level (orders, projects or cost centers). However, in certain circumstances, you mayneed to assign a cost object to a profit center. The assignment logic used here is the same as that usedfor assigning cost centers.

? In contrast to other assignment objects, profitability segments do not have master records. A profitability segment is a combination of characteristics, such as a customer, product, plant, distributionchannel, and so on. One of these characteristics is always the profit center.

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ProjectProjectDefinitionDefinition

Default Profit

Center for WBSelements

ProfitCenter Profit

Center

ProfitProfitCenter Center

ProfitCenter ProfitCenter

WBSWBS--ElementElement





Assigning Projects

? Projects are generally used to carry out common tasks. This makes it possible for several profit centers

to be involved in a single project, for example constructing a ship. One profit center might beresponsible for producing the engine, while another would be responsible for the internal fittings. Profit

center are therefore assigned to the various data-bearing structures in the project rather than to the project definition itself. These structures are:

?work breakdown structure element (WBS element)

?network header

?network activities

? In the project definition or the project profile, you can enter a profit center which is to be used as the

default for the individual WBS elements. You can overwrite this value in the individual structures. If aWBS element is not assigned to a profit center, the system posts to the dummy profit center.

? If a network header is not assigned to a profit center, the profit center is taken from the corresponding

WBS element.

? If a network activity is not assigned to a profit center, the profit center is derived from thecorresponding WBS element, provided that the activity is assigned to a WBS element. Otherwise the

profit center is taken from the network header.

? The assignment of these structures to a profit center makes it possible for you transfer work in processfrom projects to Profit Center Accounting, as well as seeing all costs and revenues in the derived profit

centers.

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ProfitCenter IIProfitCenter II

ProfitProfitCenter IIICenter III

ProfitProfitcenter Icenter I

Material B

Material C

Plant II Plant IIIMaterial A Plant I

Assigning Materials

? The assignment of the material masters to profit centers is the basis for the assignment of sales and

production orders. Furthermore, it forms the foundation for internal goods movement transactions andfor the transfer of material stocks to Profit Center Accounting.

? Materials are always assigned to a profit center at the plant level. The example illustrates some of theoptions this approach provides:

?A profit center that represents a material, crossing all plants (Profit Center I)

?A profit center that represents a plant, including all materials for the plant (Profit Center II)

?A profit center that represents a material for a specific plant (Profit Center III)

? The plant is assigned to a company code, which is in turn assigned to a controlling area. This

controlling area must be the same as the controlling area to which the profit center belongs.

? You can assign materials directly in the material master or use the fast assignment function.

? Material maintenance is divided into several views. If your material has the Sales: General/Plant Data

view, you enter the profit center in the General plant parameters of this view. If this view is notrelevant for this material (for example, with raw materials), you maintain the profit center in the Storage2 view, also in the General plant parameters. However, it is always the same Profit Center which is

shown in different views.

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Assigning Production and Sales Orders

Sales Order

Production Order

ProfitCenter

ProfitCenter

Plant I Material A

Material Master

General Plant ViewGeneral Plant ViewGeneral Plant View Costing ViewCosting ViewCosting View

? A production order contains its assignment to a profit center in the order master record. For PP

production orders or process orders, you can find the profit center field under Header ? Assignment.For CO production orders, it is located on the initial screen.

? When you create a production order, the default profit center is taken from the master record (general plant parameters) of the material being produced. For process orders, the system proposes the profitcenter for the main product in the order. Consequently, you do not normally have to enter the profit

center manually.

? All the primary and secondary costs posted to the production order are passed on to the assigned profitcenter, along with the credit posted when the production order is delivered or settled. This assignment is

also used for transferring work in process to Profit Center Accounting.

? Production orders are carried out in a plant. Each plant is assigned to a company code, which in turn

belongs to a controlling area. This controlling area and the controlling area of the profit center must bethe same.

? In sales orders , each order item is assigned separately to a profit center. You can find the profit centerfield under the menu option Edit? I tem? Account Assignment . The default profit center is the

profit center is the one of the material being sold. Consequently, you do not normally have to enter the profit center manually.

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ProfitCenters

ProfitCenters

Substitution

DivisionSales Organization

Customer

Sales Order Sales Order SDSD

Assignment Through Substitution

? SAP AG 2003

? Defaulting the profit center in a sales order item from the material master plant data assumes a product-

oriented division of profit centers (based on the material), a geographical division (based on the plant),or a combination of both.

? If you wish to structure your company from a sales-oriented rather than a production-oriented view, youcan also determine a profit center from the available fields in the sales order header or item with thehelp of substitution rules.

? The following is a partial list of the fields from the sales order and related information which can beused to derive the profit center assignment:

?Sales Organization

?Sales office

?Sales district

?Distribution Channel?Business Area

?Customer

?Customer group

?Storage Location

? If the system finds a valid substitution for a sales order, it uses this instead of the default found usingthe assignment on the material master record.

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? Material

? Cost Centers

? Orders (CO, PP, PM, SD)

? Work Breakdown Structure

? Cost Objects

? Business Processes

Check Assignments for:Check Assignments for:

Material FastMaterial FastAssignmentAssignment

Profit CentersProfit Centerswithoutwithout

Cost CentersCost Centers

Objects perObjects perProfit Center Profit Center

Monitoring Assignments

NotNotAssignedAssigned

? The assignment monitor provides you with an overview of all the assignments you have made to profit

centers and supports you when you make or change assignments. For example, you can call up a list ofall cost centers which have not been assigned to a profit center or profit center group, or a list of cost

centers which are assigned to a particular profit center or profit center group. From here, you can jumpfrom there directly to the transaction for changing the object.

? The fast entry material menu makes it possible to assign a large number of material numbers to a profit

center quickly.

? The menu Orders lets you analyze the following types of order: internal orders (CO), imputed costorders (CO), CO production orders, PPS production orders, process orders, network headers and

maintenance orders.

? The Cost objects menu contains the general cost objects as well as the cost objects for process

manufacturing.? Incorrect assignments lead to incorrect transaction data in Profit Center Accounting, which usually can

only be corrected with great difficulty. You should therefore check your assignments very carefully

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Master Data: Unit Summary

You are now able to

? describe the steps required to set up Profit CenterAccounting

? create the profit center accounting organizational

structure

? profit center - master data

? standard hierarchy

? profit center groups

? assign and verify the assignment of objects to profit

centers

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Exercise Data

Key to Symbols in the Exercises and Solutions

Exercises

Solutions

Objectives

Business Scenario

Tips & Tricks

Warning or Caution

Data in the Exercises

Type of Data Data in the Training System


Company Code 1000

Plant 1000Sales Organization 1000

Distribution Channel 10

Division 0001

Profit Center 1402 Administration

1010 High Speed Pumps

Cost Centers 4298 Engineering/Design4100 Technical Service

Activity Type 1410 Repair Hours

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Account Numbers Balance Sheet:

156000 Advances – Travel Ex479100 Other exp., finance

113100 Bank792000 Stock of finished products21000 Fixtures and Fittings

P&L:800000 Revenues

802000 Revenues893015 Cost of goods sold410000 Products: Consume

415000 External procurement430000 Salaries

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Exercises

Unit: Master Data

Topic: Controlling Area Settings

On completion of these exercises, you will be able to

? make the settings for Profit Center Accounting in the controlling area

The steering committee of the project wants information on thecontrolling area settings for assessing whether introducing Profit Center

Accounting involves extensive organizational changes in the system.

1-1 Display the profit center settings for controlling area 1000.

1-2 Check the settings for the elimination of internal business volume by answering the

following questions.

1-2-1 Is the elimination of internal business volume active?

____________________________________________________________

1-2-2 What effect does activating the elimination of internal business volume have

on profit center postings?

____________________________________________________________

1-3 Check the settings for the currency by answering the following questions.

1-3-1 Which currency type and which currency is managed in Profit Center

Accounting?

____________________________________________________________

1-3-2 Which currency type would you have to choose in order to assign a separatelocal currency to Profit Center Accounting?

____________________________________________________________

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1-4 What is the name of the profit center standard hierarchy?

__________________________________________________________________

1-5 What valuation view would you have to set if you had opted for the transfer prices inProfit Center Accounting?

__________________________________________________________________

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Unit: Master Data

Topic: Master Data


? create profit center master data in the standard hierarchy

? create profit center groups

? check how account groups are used in the information system and planning

The functional set up of Profit Center Accounting in the company should

organize the value added process so that it is accountable.

The profit centers for administration and sales are set up with thisintention. In addition, profit center planning should be automated as far as

possible. For this, you enter reference data in a profit center set upspecifically for this purpose.

Furthermore, you need a profit center group and also account groups forthe information system and planning functions.

2-1 Change the standard hierarchy H1 in the Profit Center Accounting master data by first

going to the nodes H1 ? HE ? H9500 ? AC610 ? GR## (## corresponds to

your group number). Then create the profit center master data in the following tasks.2-1-1 Create the following profit center master data:

Profit

Center

Analysis

Period

Name Long Text Person

Respons.

91## 01.01.curr. FYto 31.12.9999

Sales Profit centersales

Sam Sales

92## 01.01.curr. FY

to 31.12.9999

Adminstration Profit center

administration

Andy Admin

93## 01.01. curr.FY to

31.12.9999

Planning Referenceprofit center

planning

Peter Plan

2-1-2 Which activation status do these profit centers have currently and what are theconsequences?

____________________________________________________________

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2-1-3 Activate the profit centers you created!

____________________________________________________________

2-1-4 In the Company Codes tab page, check whether your profit centers are

assigned to Company Code 1000.

____________________________________________________________

2-1-5 Display profit center 1010 using the search function in the standard hierarchy.

To which node is this profit center assigned?

____________________________________________________________

2-2 Create the profit center group PLAN## with the description Group ## Planning outside of the standard hierarchy.

Assign the following profit centers:

Profit Center Group Description Assigned Profit

Center

PLAN## Group ## Planning 91## Sales

92## Administration

2-3 Relevant account groups have already been transferred for reporting purposes fromFinancial Accounting. Check these account groups in the following detail questions.

2-3-1 In the account group for the Profit and Loss Statement with the name3000000.INT, check whether domestic gross revenues are displayed withaccount 800000 when this group is used in reporting.

____________________________________________________________

2-3-2 Account 21000 displays the acquisition value for fixtures and fittings in thefinancial statements in Financial Accounting . Check whether account 21000

exists in the account group for Tangible Assets with the name 1032000.INT.

____________________________________________________________

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Unit: Master Data

Topic: Assignments


? analyze profit center assignments using the Assignment Monitor

? distinguish between and use the different assignment options

The cost center structure in sales and administration corresponds closely

with the profit center structure so that corresponding assignments should be entered. In CO-OM, internal orders represent trade show and

marketing activities, which should also be visible in Profit CenterAccounting. Secondary costs posted within the CO-OM period-end

closing are also of interest to those responsible for the profit center. To beable to display a ROI in Profit Center Accounting, it must also be possible to assign assets to the profit centers. The work required to

maintain these assignments must not be too great, hence the request forsupport tools for maintenance and control purposes.

3-1

3-1-1 Create the following cost centers using individual processing in the master datamenu for Cost Center Accounting as of the start of the current fiscal year.

CostCenter

Name Description PersonResponsible

CostCenter

Category

Hier-archy

Area

CompanyCode

BusinessArea

ProfiCente

T91## Sales Cost centersales

Sam Sales 3 H-AC610

1000 1000 91##

T92## Administration Cost center

administration

Andy

Admin

4 H-

AC610

1000 1000 NO

ENTR

Skip the warning message when saving cost center T92## by pressing the enter pushbutton

3-1-2 Which profit center would currently be determined by the system if a postingwas made to cost centers T91## or T92##?

____________________________________________________________

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3-2

3-2-1 Create the following trade show order using the Order Manager in the masterdata menu for internal orders.

Order Type Short Text CompanyCode BusinessArea ProfitCenter

0450 Trade show

civil

engineeringgroup ##

1000 1000 91##

Make a note of the order number: ________________________________

3-2-2 Go the Control Data tab page and release the order so that the system statusallows actual postings. Which profit center would the system currently

determine?

____________________________________________________________

3-3 The fleet operating costs for a road show truck are to be debited to sales. Sam Sales

also wants to see the asset values on the profit center.

3-3-1 Create the master data for a fleet asset in Financial Accounting in Asset

Accounting using the following data.

Asset Class Company Code

3100 1000

In the General tab page, specify the description Road Show Truck Group ##.

Then go to the Time-dependent tab page and enter the following data.

Make a note of the order number: _______________________________

Business Area Cost Center

1000 T91##

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3-3-2 Which profit center would currently be determined if a posting was made tothe asset?

____________________________________________________________

3-4 The Materials Management for the pumps division is assigned to profit center 1010High Speed Pumps . Check the material assignment using the Assignment Monitor inthe master data menu for Profit Center Accounting.

3-4-1 Start the Assignment Monitor for materials to check whether the FinishedProduct P-100 Pump is assigned to profit center 1010. Is this the case?

Go from the Assignment Monitor to the material master of P-100. View the profit center field in the material master. Is it possible to make a change at this

point?

____________________________________________________________

3-5 Check whether the assignment of the cost centers to the profit centers is complete.

3-5-1 Call the Assignment Monitor for non-assigned cost centers . Start thetransaction by selecting the administration cost centers and without displayingthe assigned cost centers. Is cost enter T92## assigned to a profit center?

____________________________________________________________

3-5-2 Assign cost center T92## to profit center 92##.

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Solutions

Unit: Master Data

Topic: Controlling Area Settings

The solutions contain the following abbreviations for menu paths:

Application:

PCA: Accounting ? Controlling ? Profit Center Accounting or

Accounting ? Enterprise Controlling ? Profit Center Accounting

Customizing:

IMG: Tools ? Customizing ? IMG ? Edit Project Profit center Customizing:

ORK2: First IMG and then

Controlling ? Profit Center Accounting or

Enterprise Controlling ? Profit Center Accounting or

Transaction ORK2

1-1 Display the profit center settings for controlling area 1000.

ORK2: Basic Settings ? Controlling Area Settings ? Maintain Controlling AreaSettings

Controlling area 1000

1-2 Check the settings for the elimination of internal business volume by answering thefollowing questions.

1-2-1 Is the elimination of internal business volume active?

The elimination of internal business volume is active.

1-2-2 What effect does activating the elimination of internal business volume haveon profit center postings?

If, when a posting is made to actual account assignment objects of the

same origin object type (e.g. cost centers), the same profit center is

assigned to these, then an internal business volume exists. If theelimination of internal business volume indicator is set, this posting is not

reflected in Profit Center Accounting.

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1-3 Check the settings for the currency by answering the following questions.

1-3-1 Which currency type and which currency is managed in Profit CenterAccounting?

Profit Center Accounting in controlling area 1000 uses currency type 30(Group currency). The currency EUR is linked to this currency type.

1-3-2 Which currency type would you have to choose in order to assign a separate

local currency to Profit Center Accounting?

Currency type 90 allows you to enter any currency in the controlling area

settings of Profit Center Accounting.

1-4 What is the name of the profit center standard hierarchy?

The profit center standard hierarchy in controlling area 1000 is H1.

1-5 What valuation view would you have to set if you had opted for the transfer prices in

Profit Center Accounting?

If transfer prices are managed, the profit center valuation setting is mandatory.

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Unit: Master Data

Topic: Master Data

2-1 Change the standard hierarchy H1 in the Profit Center Accounting master data by first

going to the nodes H1 ? HE ? H9500 ? AC610 ? GR## (## corresponds toyour group number). Then create the profit center master data in the following tasks.

2-1-1 Create the following profit center master data:

PCA: Master Data ? Standard Hierarchy ? Change

In the standard hierarchy, navigate to the following nodes

H1 / HE / H9500 / AC610 / GR##

Select on the node GR## and then for each row in the table below chooseEdit / Create Profit Center

Enter the data from the table below in the corresponding master data

fields.

ProfitCenter

AnalysisPeriod

Name Long Text PersonRespons.

91## 01.01.curr.FY to

31.12.9999

Sales Profit centersales

Sam Sales

92## 01.01.curr.

FY to

31.12.9999

Adminstration Profit center

administration

Andy Admin

93## 01.01. curr.

FY to

31.12.9999

Planning Reference

profit center

planning

Peter Plan

2-1-2 Which activation status do these profit centers have currently and what are the

consequences?

The profit centers are inactive. They can neither be assigned to accountassignment objects nor be posted to.

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2-1-3 Activate the profit centers you created!

Choose Edit / Activate.The system displays the Standard hi erarchy for profi t centers Change

window.

Set the indicator before profit centers 91##, 92## and 93##.

Choose Activate icon.

Afterwards save the changes you made to the standard hierarchy.

2-1-4 In the Company Codes tab page, check whether your profit centers are

assigned to Company Code 1000.

Double-Click profit center 91##. In the Detail s for Profi t Center window,

select the Company Codes tab page. Make sure that the indicator is set forcompany code 1000 in the Assigned column. Repeat these steps for profit

centers 92## and 93##.

2-1-5 Display profit center 1010 using the search function in the standard hierarchy.To which node is this profit center assigned?

Show the Object Manager if you cannot see the F ind by subscreen.Click on Profi t Center in the F ind by window.

Enter the value 1010 in the Prof it Center input field and confirm.

The Object Manager displays the search result.Double-click on the search result 1010.

The navigation window displays profit center 1010 H igh Speed Pumps

with the higher-level node H1020 Pumps .

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2-2 Create the profit center group PLAN## with the description Group ## Planning

outside of the standard hierarchy.

PCA: Master data ? Profit Center Group ? Create

Enter the PLAN## in the Create Prof it Center Group : I niti al Screen screen and

confirm by pressing enter.In the next screen, enter the description of the profit center group Group ##

Planning.

Click on the top node PLAN##.

Choose Edit / Profit Center / Insert Profit Center.In the following input template, enter the following profit centers below one

beneath the other.

Afterwards save the profit center group PLAN##.

Profit Center Group Description Assigned ProfitCenter

PLAN## Group ## Planning 91## Sales

92## Administration

2-3 Relevant account groups have already been transferred for reporting purposes fromFinancial Accounting. Check these account groups in the following detail questions.

2-3-1 In the account group for the Profit and Loss Statement with the name3000000.INT, check whether domestic gross revenues are displayed withaccount 800000 when this group is used in reporting.

PCA: Master Data ? Account Group ? Display

Enter 3000000.INT in the display account group initial screen and

confirm by pressing enter.Choose Edit / Account / Find...

Enter account number 800000.

Account 800000 is located in the group3000000.INT / 3010000.INT / 3011000.INT / 3011010.INT

Each of these nodes displays account 800000 in the information system.

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2-3-2 Account 21000 displays the acquisition value for fixtures and fittings in thefinancial statements in Financial Accounting. Check whether account 21000

exists in the account group for Tangible Assets with the name 1032000.INT.

PCA: Master Data ? Account Group ? Display

Enter 1032000.INT in the display account group initial screen and

confirm by pressing enter.Choose Edit / Account / Find...

Enter account number 21000.

Account 21000 is located in the group1032000.INT / 1032030.INT / 1032031.INT

Each of these nodes displays account 21000 in the information system.

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Unit: Master Data

Topic: Assignments

3-1

3-1-1 Create the following cost centers using individual processing in the master datamenu for Cost Center Accounting as of the start of the current fiscal year.

Accounting ? Controlling ? Cost Center Accounting ? Master Data ?

Cost Center ? Individual Processing ? Create

Cost

Center

Name Description Person

Responsible

Cost

Center

Category

Hier-

archy

Area

Company

Code

Business

Area

Profit

Center

T91## Sales Cost centersales

Sam Sales 3 H-AC610

1000 1000 91##

T92## Administration Cost centeradministration

AndyAdmin

4 H-AC610

1000 1000 NOENTR

Skip the warning message when saving cost center T92## by pressing the enter pushbutton.

3-1-2 Which profit center would currently be determined by the system if a postingwas made to cost centers T91## or T92##?

If a posting is made to cost center T91##, the system determines profitcenter 91##. If, on the other hand, a posting is made to cost center T92##,

the dummy profit center is determined since no profit center is defined in

the master record of T92##.

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3-2

3-2-1 Create the following trade fair order using the order manager in the master datamenu for internal orders.

Accounting ? Controlling ? Internal Orders ? Master Data ? Order

Manager

Choose Master Data / Create.

Order Type Short Text Company

Code

Business

Area

Profit

Center

0450 Trade show

civilengineering

group ##

1000 1000 91##

Save the order.

Make a note of the order number: ________________________________

3-2-2 Go the Control Data tab page and release the order so that the system status

allows actual postings. Which profit center would the system currentlydetermine?

Chose Master Data / Change. Select the Control Data tab. Select theRelease button. Save the changes.

Profit center 91## is entered in the master data of the order. If a posting is

made to this order, the system determines this profit center.

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3-3 The fleet operating costs for a road show truck are to be debited to sales. Sam Sales

also wants to see the asset values on the profit center.

3-3-1 Create the master data for a fleet asset in Financial Accounting in AssetAccounting using the following data.

Accounting?

Financial Accounting?

Fixed Assets?

Asset?

Create?

Asset

Asset Class Company Code

3100 1000

Click on the Master Data pushbutton

In the General tab page, specify the description Road Show Truck Group ##.

Then go to the Time-dependent tab page and enter the following data.

Save the asset.

Make a note of the asset number:________________________________

3-3-2 Which profit center would currently be determined if a posting was made tothe asset?

Cost center T91## is assigned to the asset in the asset master record. Profitcenter 91## is entered in the master record for this cost center. The system

determines this profit center.

3-4 The Materials Management for the pumps division is assigned to profit center 1010

High Speed Pumps . Check the material assignment using the Assignment Monitor inthe master data menu for Profit Center Accounting.

3-4-1 Start the Assignment Monitor for materials to check whether the Finished

Product P-100 Pump is assigned to profit center 1010. Is this the case?

Go from the Assignment Monitor to the material master of P-100. View the profit center field in the material master. Is it possible to make a change at this

point?

PCA: Master Data ? Assignment Monitor or

ORK2: Assignments to Profit Centers ? Check Assignments

Business Area Cost Center

1000T91##

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Choose Assignment Monitor / Material / Assigned Materials

Enter material type FERT and profit center 1010

Click the Execute icon.Check whether the list includes material P-100.

Double-click on material P-100.

You are in the transaction for changing the material master in the Costing

1 tab page.You will also see the same profit center in the Sales/General Plant Data tab

page (sales organization 1000 and distribution channel 10) and the PlantData/Storage 2 tab page ( plant 1000).

Do not make any changes to material master P-100.

Go back to the Prof it Center Accounti ng: Assignment Monitor screen.

3-5 Check whether the assignment of the cost centers to the profit centers is complete.

3-5-1 Call the Assignment Monitor for non-assigned cost centers . Start the

transaction by selecting the administration cost centers and without displayingthe assigned cost centers. Is cost enter T92## assigned to a profit center?

PCA: Master Data ? Assignment Monitor or

ORK2: Assignments to Profit Centers ? Check Assignments

Choose Assignment Monitor / Cost centers / Nonassigned Cost Center Category: 4

Date: Current dateOptions: Deactivate Display assigned cost centers also

Press the Execute icon.Cost center T92## has not been assigned to any profit center up to now.Stay in this list.

3-5-2 Assign cost center T92## to profit center 92##.

In the EC-PCA: Non-Assigned Cost Centers screen, double-click on cost

center T92##.

You are in the Change Cost Center transaction.

In the profit center field, enter profit center 92## Administration.

Confirm the field change with Yes Save cost center T92##

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Actual Data

Contents:

? A Systematic View of Profit Center Determination

? Data Flow from Financial Accounting

? Data Flow from Materials Management

? Data Flow from CO

? Transfer from Sales and Distribution

? Functional Areas in EC-PCA

? Period-End Closing in EC-PCA

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Actual Data: Objectives


? understand and configure the characteristic-orientated profit center determination

? understand the document-orientated profit centerdetermination in different R/3 modules

? understand how postings are made to functionalareas in FI and EC-PCA

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Actual Data: Course Overview Diagram

Actual Data

Master Data

Information

System

Transfer Prices


Profitability

Management

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Actual Data: Business Scenario

?

Explain the data flow in Profit Center Accounting? Outline the value flow from the Sales and Distribution

module

? Outline what effects Materials Management/Logistics-related processes have in Profit Center Accounting

? Describe the integration between FinancialAccounting and Profit Center Accounting with regardto the transfer of balance sheet items

?

Demonstrate direct postings and allocations withinProfit Center Accounting

? Mr. Udo, your Japanese sales manager, is very familiar with the sales order process. He asks you to

explain at what point during this process data is posted to Profit Center Accounting. He is alsointerested how the profit center is derived from the billing document.

? Costs for research and development are currently collected at product group level using CO internalorders. Carrie Cash is therefore interested in how internal order settlement affects Profit CenterAccounting.

? Your corporate Logistics department allocates costs for the two manufacturing plants and thedistribution centers in Canada, the US and Japan. They want to ensure that their plant profit centermanager maintains visibility of these expenses. In addition Logistics wants asset and warehouse stocks

to be displayed for certain production profit centers. (Product Cost Management)

? Carrie Cash, for her part, wants to analyze balance sheet items such as material and asset lists, but also

down payments, cash accounts and mainly customer and creditor OIs at profit center level in order todetermine certain financial key figures such as Return on Investment (ROI= product of profit-sales ratioand equity turnover) or Cash Flow (= internal financing volumes).

? Randy Sales points out that there are currently a number of miscellaneous sales for the Motorcycle

Product line which are posted to a ‘clearing’ profit center. During the period-end closing activities inProfit Center Accounting (assessment, distribution), the accumulated amounts are to be "transfer

posted" if possible specific to product group to the allocation profit center via a cause-specific

”allocation key”.

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? A Systematic View of Profit Center Determination

Topic:

Actual Data: Topic I

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Document-Dependent Profit Center Determination

Profit Center Determinationin Source Document

Subsequent Documents

Indirect Profit CenterAssignment

Dynamic Profit Center

Assignment

FI

MM FI-AA SD

FI

MM FI-AA SD

Profit Center EC-

PCA

? To begin with, the system determines a profit center on the basis of the origin of the document and any

special conditions. It does so by one of the following methods:

? The system assigns the profit center dynamically, on the basis of certain characteristics in the document

itself . When this method is used, the currently assigned profit center is always dete rmined.

? The system assigns the profit center indirectly, on the basis of certain characteristics in a precedingdocument . When this method is used, the system does not take into account any assignment changes

occurring after the date of the preceding document.

? Example:

?When you make a goods receipt posting in Profit Center Accounting, the system takes over the

profit center from the corresponding order. In the order, the system finds the profit center which isassigned to the material/plant combination it contained on the order document date.

?It could be that another profit center has been assigned to this material/plant combination in the

period between the order document date and the goods receipt posting document date. If so, whenyou make the goods receipt posting, the system still takes over the profit center which was assignedon the order document date.

?The course material for the respective components show the integrated value flows in Profit CenterAccounting.

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Characteristics-Dependent Profit CenterDetermination

Balance SheetAccount

Balance Sheet

P&L Account

P&L

EC-PCA

FI

CO

$SecondaryCost Element$

PrimaryCost Element /RevenueElement

Profit Center ?

? For all types of document, the system checks whether one of the following cases applies: The profit

center assignment which may arise from this step always has priority over the assignment determined instep 1 on the basis of document type.

? In the order shown below, the system checks whether:

? ... substitutions have been set for profit centers in FI or CO.The profit center determined using the substitutions is always used.

? ... the data to be transferred is a cost or revenue element. The profit center will always be determinedfrom the master record of the real (not statistical) CO object assigned to it.

? ... the data is from balance sheet or profit and loss accounts which have been set for transfer to Profit

Center Accounting and no profit center has been set in the corresponding document. The profitcenter which was directly assigned to the corresponding accounts (see Customizing for Profit Center

Accounting, Transaction 3KEH) is used or which was assigned to the corresponding accounts by aderivation rule (see Customizing for Profit Center Accounting, Transaction 3KEI).

? ... the data comes from P&L accounts, which affect logistical processes (that is, which are transferredin the standard system) and for which no profit center is set in the corresponding document, the data

is posted to the Dummy Profit Center.

? ... you have changed the Profit Center field for the corresponding original document, using theSAP customer enhancement PCA00001. The data is posted to the profit center you require.

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BusinessBusiness

ProcessProcess

VV

AALL

UU

EE

FF

LL

OO

WW

FIFI

Transfer of Selected Balance Sheet Items

Transaction Processing Period-End Closing

Periodic or Periodic or

Realtime Transfer Realtime Transfer

ECEC--PCAPCA

? You can analyze selected balance sheet items on a profit center. The profit center can thus be

expanded to become an investment center. This allows you to calculate key figures which compare thesuccess of the profit center with its fixed capital (Return on Investment).

? The balance sheet items are transferred to Profit Center Accounting at the end of the period inconjunction with other period closing activities or, except for payables/receivables, in realtime(at the time of posting).

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Balance Carry Forward

Balance Sheet Items in Profit Center Accounting

Realtime Transfer

Work In Process

Inventory Values

Other Balance Sheet Items

Periodic Transfer

Periodic Transfer

Asset Values

Work In Process

Accounts Receivable/Payable

Inventory Values

RealtimeTransfer

Asset Values

? The following balance sheet items can be transferred online in realtime:

?Material stocks (raw materials, semi-finished and finished products)

?Assets

?Work in process

? You first need to enter the accounts you want to transfer to Profit Center Accounting in the Customizingtransaction for balance sheet and profit and loss accounts. In addition you also have to transfer the

opening balances from the source application once. After the opening balance has been created, thechanges can be posted online to Profit Center Accounting. At the end of the year, you need to carryforward the balances for the balance sheet items that were posted in realtime to Profit Center

Accounting.

?

If you run a periodic transfer, the system overwrites any corresponding data that was already transferredto Profit Center Accounting. For example, if certain material stocks have already been transferred in

realtime and you want to run a periodic transfer for the same period, the system first deletes the datathat was already transferred. When this happens, you lose the information on the inventory postingdocuments for each transaction. The transfer programs only create one posting per transfer object that

contains the difference to the previous balance.

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Value Flows of Actual Values

Costing-BasedProfitability Analysis

CO-PA

MM

HR

FICO-OPA

CO-CCA

PP

Production

SD

Sales

External

Accounting

Mirroring of FI and CO Documents

PrCtr5

PrCtr4PrCtr1

PrCtr3

PrCtr2

Delivery

ProfitabilityCO-

PC

Overhead Costs

Controlling

? Before you can analyze your profits by profit center, the system needs to summarize all the profit-

related postings in profit centers.

? The profit-related components of the period accounting method (revenues, sales deductions, change in

stock of finished and semi-finished goods, change in work in process, capitalized internal activ ities, primary costs and secondary costs) are transferred directly from the R/3 component FI, SD, MM, CO,IM and FI-AA to Profit Center Accounting.

? Once you have transferred actual data to Profit Center Accounting, you can analyze it immediatelyaccording to the period accounting approach using the Standard Reports in the information system.

? To calculate profits according to the cost-of-sales approach, you need to access the characteristic

Functional Area, which is derived in FI or CO. If this derivation is active in FI or CO, the functionalarea is updated for each posting, making it possible to calculate profits according to the cost-of-sales

approach in Profit Center Accounting.? When Profit Center Accounting is active, the system only allows those postings which can be

transferred to a profit center without errors. This automatically ensures that your data is complete andreconciled with the other components.

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? Data Flow from Financial Accounting

Topic:

Actual Data: Topic II

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Balance Sheet Accounts/P & L Statement Accountswithout Cost Element

PrCtr 1111

Profit Center Determination

FI Substitution

Manual Posting

IMG: Additional Balance Sheet and

P&L Accounts with Derivation Rule

AccountFinancialRequire-ments

1,500EC-PCA

Account

Financial

Requirements

Bank

Amount

1,500

-1,500

Profit Center

1111

FI

? You can analyze selected balance sheet items by profit center. The persons in charge of the profit center

are therefore responsible not only for the success but also the fixed capital of the profit center. It is also possible to calculate key figures which compare the success of the profit center with its fixed capital

(Return On Investment).

? Balance sheet items can be transferred periodically or online in realtime.

? The system posts balance postings directly to Profit Center Accounting from online postings which

directly affect the balances of assets, materials and work in process. If you manage line items in ProfitCenter Accounting, the system updates a profit center document for each reference document (e.g. FIdocument).

? Enter the accounts that you want to transfer to Profit Center Accounting in the Customizing transactionfor additional balance sheet and profit and loss accounts.

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FI Substitution

Profit Center from AccountAssignment Object

Dummy Profit Center

P&L Account with Primary Cost Element

Account Amount CO Account Assignment Profit Center

Raw Material 500 CCtr1000 3333

CO Acct Cost ElementAssgmt Amount

CCtr1000 Raw Materials500

Profit Center Account Amount3333 Raw Materials 500

EC-PCA

FI

CO

? When you post data directly in Financial Accounting, all primary cost elements require an additional

assignment to a CO object.

? The assignment of this CO object (cost center, order, and so on) to a profit center ensures that the data is

passed on to Profit Center Accounting. However, you can also directly enter the profit center in the FI posting

? It is recommended that you define your cost elements so that the profit center field appears on the

account assignment screen in Financial Accounting. This makes it possible for you to verify theassignment.

? Using the document display function in Financial Accounting, you can display the documents

which are created in Profit Center Accounting as a result of the posting under the menu option Environment/Document Environment/Accounting Documents.

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FI Substitution

Revenue-GeneratingAccount AssignmentObject

Automatic account

assignment of RevenueElements

Dummy Profit Center

Revenue Account Assignment in FI

Account Amount Profit Center

Bank 10,000Revenue -10,000 2222

Revenue ElementType 11/12

ProfitCenter Account Amount2222 Revenue -10,000

EC-PCA

FI

CO

? If you are not using the SD Module, you can post revenues directly in Financial Accounting. To do so,

you need to create the account as a revenue element or a sales deduction.

? If you are using account-based Profitability Analysis, you also need to make an assignment to a

profitability segment. In this case, you must specify the profit center of the profitability segment.

? Without account-based Profitability Analysis, the system updates the field ”Profit center” directly to aso-called ”reconciliation object” in Controlling.

? In the latter case, the posting to the reconciliation object is treated as the real posting. Consequently, the profit center assignment is statistical here as well.

? The reconciliation object is a combination of company code, business area and profit center.

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FIFI

VV

AALL

UU

EE

FF

LL

OO

WW

Real Estate Assets

100

Real Estate Assets

100

Periodic Transfer

ECEC--

PCAPCA

BusinessBusiness

ProcessProcessTransaction Processing:

Acquisition of Asset

Period-End Closing:Transfer of Asset

Values

Online

Value Flow from Asset Management

? Periodic Transfer: Assets are assigned to profit centers indirectly via their assignment to an internal

order or cost center. The program transfers the acquisition and manufacture costs as well asaccumulated depreciation.

? The transfer takes place in connection with your period closing activities in Asset Accounting. The program transfers only posted depreciation, and can only be executed after the posting run is completedin Asset Accounting.

? Assets are assigned to profit centers indirectly via their assignment to an internal order or cost center.

? You can transfer asset balances as often as you wish, since the system deletes previously transferreddata before each transfer. However, note that if you have transferred stocks in realtime in the same

month, you will lose the stock posting documents that were created during those transfers.To set up the realtime transfer, proceed as follows:

?Enter the accounts that you want to transfer to Profit Center Accounting in the Customizing table foradditional balance sheet and profit and loss accounts.

?Create the opening balance for assets by executing the transfer program.

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? Data Flow from Materials Management

Topic:

Actual Data: Topic III

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Purchase Order

MaterialP-109

Purchase Order with Account Assignment

Quantity Material Account Amount Account Assignment Profit Center 10 Pcs M-109 410000 10,000 K-109 2222

MM

Purchase Order without Account Assignment

Quantity Material Account Amount Profit Center 10 Pcs M-109 410000 10,000 1111 Profit

Center 1111Cost Center

K-109

Profit Center 2222

? The profit center to which the data should be posted depends on which materials and which CO objects

are involved.

? In the case of a purchase order to warehouse, the profit center is taken from the material master per

purchase order item.

? The profit center which is determined is forwarded to the goods receipt for purchase order.

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Purchase Order Material Amount Profit Center

M-109 10,000 2222

Goods Receipt for Purchase Order

Goods Receipt

Material Quantity Profit Center M-109 10 Pcs 2222

Profit Center

fromPurchaseOrder

Expense

GR/IR

10,000

10,000

Profit Center 2222

MM

EC-

PCAFI

Expense 10,000

? When you post a purchase order, the system posts the goods usage immediately upon goods receipt if

the purchase order has an account assignment.

? The GR/IR account is the clearing account for goods received and invoices received.

? This gives you the costs of the material consumption in the corresponding profit centers.

? The appendix contains an overview of special cases of MM-goods movements with dynamic or indirect profit center determination

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Purchase Order Material Amount Profit Center

M-109 10,000 2222

Goods Receipt for Purchase Order

Invoice ReceiptMaterial Amount Profit Center M-109 10,000 2222

Customer

10000,-

GR/IR

10,000

Profit Center 2222

MM

EC-PCA

FI

Reconciliation AcctCustomer 10,000

Profit Center

fromPurchaseOrder

PeriodicTransfer

Liabilities

? When a goods receipt posting is made, the profit center is always determined indirectly via the

preceding document.

? If the amount on the invoice is different from the standard price of the material purchased, price

differences arise when you post the invoice receipt. These price differences are assigned to the profitcenter of the material purchased, provided that it is a non-assigned purchase order. That is, the pricedifference was not created as a cost element

? If your price difference account is defined as a cost element, the amount is posted to the profit center ofthe corresponding CO object.

? Payables and receivables can only be transferred to Profit Center Accounting periodically

(see Period-End Closing in EC-PCA).

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BusinessBusiness

ProcessProcess

FIFI

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Goods Movement

Internal

70

Plant BPlant AMaterial Transfer

Goods MovementInternal

100

Internal Revenue

100

100

Goods MovementInternal

Goods IssueInternal

70

70

Price Difference

30

Price Difference

30

Repostings

PPPP MMMM

ECEC--PCAPCA

? Internal goods movements in Logistics (stock transfers, materials usage for production orders, and so

on) can lead to an exchange of goods between profit centers. To be able to show the material flowcorrectly in Profit Center Accounting, you need to look at the profit center as an independent company.

This means that a sale is made by the sending profit center, while the receiving profit center posts agoods receipt.

? This way of looking at postings in Profit Center Accounting cannot be achieved based solely on the

original posting. You therefore need to make an additional account assignment. Using accountdetermination rules which you can define in Customizing, the system generates and updates additional

posting lines in Profit Center Accounting based on the original document. The source document is not

changed. Therefore this has no effect on Financial Accounting (FI). However, note that these lines arealso updated in FI if your organization is using transfer prices and storing the profit center valuationmethod in FI (see the example below).

? For some goods movements, it does not make sense to make an additional posting. These goodsmovements are given a special handling. The table that contains these exceptions is fully maintainedand delivered by SAP in the standard R/3 System. You only need to define special handling if you

require this for movement types that you defined yourself.

? You enter the accounts that you need in order to represent internal goods movements in Profit CenterAccounting for each controlling area. These accounts must be defined already in Financial Accounting

(FI).

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? Data Flow from Controlling

Topic:

Actual Data: Topic IV

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BusinessBusiness

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Primary Costs

FIFI

Utility Expense

PrCtr 1PrCtr 1PrCtr 2

Utility Expense 500500

Vendor

500

Utility Expense

500

COCO--OMOM

Transaction Processing:Post Vendor Invoice

? All primary postings to account assignment objects in Controlling are posted to profit centers using the

same cost element.

? Elimination of internal business volume: You can have the system ignore transaction data between

account assignment objects of the same type which are assigned to the same profit center. If you want touse elimination of internal business, you need to select a flag in Customizing under”PCA Controlling area settings”.

? Statistical Key Figures: In addition to the transaction data in accounting, you also can transfer StatisticalKey Figures from the account assignment objects in CO to PCA. In addition to transferring statisticalkey figures, you can also create them manually in PCA.

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BusinessBusiness

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Secondary Costs

PrCtr 1PrCtr 1PrCtr 2

Machine Costs - 500

5 Hours * 10 (Machine Hour Rate)

Transaction Processing:Internal Activity

Allocation

Machine Costs 5005 Hours * 10 (Machine Hour Rate)

Profit

Center 2

Profit

Center 2

ProfitCenter 1

Profit

Center 1

Machine Costs

500

Machine Costs

500

Production Order

Cost Center

ECEC--PCAPCA

COCO--OMOM

COCO--PCPC

? For allocations in cost accounting (distribution, assessment, cost allocation, transfers, order settlement,

calculation of imputed costs and overhead), the following records are updated in Profit CenterAccounting:

?The profit center of the crediting account assignment object is ”credited” using the same costelement, and the profit center of the object to be debited is used as the partner profit center.

?In addition, the profit center of the ”receiver” is debited using the same cost element, and the profit

center of the sender is used as the partner profit center.

? All the secondary transfers between CO objects are selected and represented in the assigned profitcenters. (e.g. utilization of cost center services for a production order)

? The exchange of services between profit centers results from service links crossing profit centers forexample within CO (e.g. cost center X which is assigned to profit center 1 produces V for the

production order Y which is asigned to profit center 2). If elimination of internal business volume isactive, Profit Center Accounting only reflects those services which are provided by one profit center foranother one or between different Controlling object types (e.g. cost center and internal order).

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FIFI

PPPPMMMM

Material Expense

500

Consumption Production Order

Material Expense 500

CO-PC – Goods Issue

ECEC--PCAPCA

Material Expense

500

Material Expense

500

COCO--PCPC

? The above example shows the withdrawal of a material from the warehouse for a production order. The

profit center is determined based on the materials produced.

? Example: Profit center for production order: 1000

Profit center for material (raw material) withdrawn: 1200

Posting with profit center and partner profit center account assignment with a raw

material withdrawal for a production order for EUR 10,000:

400000 material expense 10,000 (profit center:1000; partner profit center: 1200)

to

300000 raw materials 10,000 (profit center:1200; partner profit center:1000)

(Raw materials is a balance sheet account and must therefore either be defined for thetransfer to Profit Center Accounting in the Customizing table (realtime transfer) or be provided for periodic transfer).

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BusinessBusiness

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FIFI

PPPP MMMM

Finished Products

450

450

Factory Output

450

Expense

500

Factory Output - 450

Factory Output

CO-PC – Confirmation / Settlement

50

Price Difference

50

50

- 50

Price Difference

50

Expense

500

Expense 500

Production Order

ECEC--PCAPCA

Delivery to Stock

Production Order

COCO--PCPC

? The above example shows the settlement of a production order to the make-to-stock inventory. When

the "production order" is settled, the CO object "production order" is credited (- 450); the finishedgoods inventory is "debited" with an inward movement of the same amount. The differences between

debit and credit (500 - 450 = 50) which result on the production order are posted to a price differenceaccount.In this instance the posting is:

Price difference account 50 to Factory output 50and is reflected both in Financial Accounting and also in Profit Center Accounting.The CO object "production order" is credited with this 50 at the same time.

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BusinessBusiness

ProcessProcess

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FIFI

Production

Work in Process

Change in Work in Process

CO-PC – Work in Process

1000

1000Production Expense 1000

Change in Work in Process

1000

PPPP

Period-End Closing:Calculate Workin Process

ECEC--PCAPCA

COCO--PCPC

COCO--PCPC

? The work in process is calculated in order to determine the cost of goods manufactured of unfinished

goods still in production. You create work in process periodically for each run schedule header, production order or process order based on posted service consumption for semifinished and finished

products which have not yet been confirmed. The work in process calculated is posted periodically inFinancial Accounting, where the following accounts are assigned:

?Value of unfinished products (balance sheet account)

?Change to work in process (profit and loss account)

?The postings are transferred in the same way in Profit Center Accounting. The profit center accountassignment is taken from the master record of the corresponding production order.

? Additional note: The account "Change to work in process" is not defined as a cost element, since the production order is only credited when final settlement is performed for the order. The posting is still

made in Profit Center Accounting with this account, however, because the movement is needed in orderto display profits using the period accounting method.

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? Transfer from Sales and Distribution

Topic:

Actual Data: Topic V

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BusinessBusiness

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Transfer from Sales and Distribution (1)

FIFI

700

Cost of Sales

Cost of Sales

700

Finished Goods Inventory

700

MMMM

Goods Issue

Costs ofSales 700

(Account-BasedProfitabilityAnalysis)

ECEC--PCAPCA

COCO--PAPA

? The assignment of a sales order to a profit center is passed from the sales order to the delivery note and

then on to the billing document. The change in stock is posted to the profit center upon goods issue.

? If account-based Profitability Analysis (CO-PA) is active in your system, the G/L account for changes

in stock must be defined as a cost element. If account-based CO-PA is not active, you must define thisaccount as a profit and loss account. The system still ensures that the goods issue posting is passed on tothe profit center. The following data is transferred from bills and debit and credit memos to Profit

Center Accounting:

?Revenues

?Sales deductions (shipping, rebates, etc.)

?Accruals (e.g. from rebate agreements)

?

The profit center is assigned at the item level of the sales order.? The Financial Accounting document and the profit center document are supplied from the original

document in SD via the same interface.

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BusinessBusiness

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Transfer from Sales and Distribution (2)

FIFI

SD/BillingDocument

SDSD

1000

Revenues

1000

Revenues

1000

Revenues - 1000

Receivables (Customers)

ECEC--PCAPCA

COCO--PAPA

? A simplified example of a logistical SD process with the generated profit center postings.

? Additional note: The balance sheet account of the material must be provided for the transfer to ProfitCenter Accounting.

? Outbound delivery of the order with goods issue postingFI posting: Costs of goods sold to inventoryPCA posting: Profit center from sales order item

Cost of goods soldProfit center from materialBalance sheet account

? Billing documentFI posting: Receivables to revenues

PCA posting: Profit center from sales order item Revenues? Additional note: Receivables can only be transferred periodically to Profit Center Accounting

(see Period-End Closing in EC-PCA).

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? Functional Areas in EC-PCA

Topic:

Actual Data: Topic VI

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Assignment of Functional Areas in P&L

Period Accounting

(in thousands)

Sales Revenues 5,463

Change in Stock (Layer) + 1

Total Operating Profit 5,464Material Expense 2,606

Personnel Expense 1,263

Depreciation 219Other Expenses 1,262

Total Expenditure 5,350Net Operating Profit 114

Cost-of-Sales Accounting(in thousands)Sales Revenues 5,463

Production Costs 3,374Sales Costs 1,278

Administration Costs 324Research & Dev. Costs 373

Cost of Sales 5,349

Net Operating Profit 114

FUNCTIONAL AREAS

Production Sales Administration R & D

StockLayer 1

3,374

2,606565 340 139 219140 23 21 35

64 915 164 1193,375 1,278 324 373

? When you use the period accounting approach, the system breaks down the operating results by

revenue and cost element. This makes it possible to recognize which factors of production cause thecosts which are incurred. The total costs for the period can then be compared to the total revenues

earned during the same period. The costs of the services produced in the period but not yet sold(increases in stock ) are added to the sales revenue, and the services performed in previous periods,however, only offset in the period under review (reduction in stock), are deducted. This sum, together

with the capitalized internal activities and the changes to work in process, yields the total result for the period.

? The more market-oriented cost-of-sales approach compares the costs to the corresponding quantity

structure of the revenues. Revenues are only compared to the costs incurred for the quantity of goods orservices sold. When products are sold from stock, it may be that the costs were incurred during a

previous period. In this approach, no distinction is made between different cost elements. Instead,

resource usage is divided according to the functions R & D, production, sales and administration.

? To calculate profits according to the cost-of-sales approach, you need to access the characteristicFunctional Area, which is derived in FI or CO. Since you can define these functional areas and the

rules by which they are used, you need to define your own reports if you want to use the cost-of-salesapproach.

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Cost-of-Sales Accounting Overview

P & L

Sales Revenues1

Cost of GoodsSold

2

Production

Orders

3Variances

CostCenters

3c

3a

Profitability

Segments

3b

3b

4

5

Functional AreaSalesAdministration

R&D...

SD

FIOther Expenses

MM

Fert

VT

VW

...

? In addition to the FI-GL general ledger, another ledger is managed in FI-SL. In this ledger you can

update all the FI-relevant business transactions.

? In contrast to the general ledger, the transaction figures are divided by functional area.

? This slide shows you the following example postings:

?Sales revenues from SD (1)

?Cost of goods sold from MM goods issue (2)

?Production variances from the settlement of the production order (3)

?All debits and credits of all the production cost centers (overabsorption/underabsorption) (3a)

?All postings to cost centers affecting the functional areas Sales, Administration and

Research & Development (3b)?Adjustment postings from the reconciliation ledger back to FI-SL in the case of

secondary cross-functional area postings (3c)

?Postings to profitability segments (4)

?Other expenses (5)

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Functional Area Derivation Options

40 Expense 0400 1000 1050 Balance Sheet

Account10-

Account Functional Area CO-Object Amount

ManualEntry

Master Recordof the CO Object

Master Recordof the P&L Account

Substitution

Document

Sequence "The winner takes it all"

Items

? If cost-of-sales accounting is activated for a company code, a functional area is determined when P&L

postings are made.

? No functional area is determined when postings are made to balance sheet accounts or when statistical

key figures are entered in Controlling.

? The derived functional area is transferred to the line items of Profit Center Accounting.

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? Period-End Closing in EC-PCA

Topic:

Actual Data: Topic VII

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BusinessBusiness

ProcessProcess

Transfer of Statistical Key Figures

PrCtr PrCtr 11PrCtr 2

ECEC--PCAPCA

Period-End ClosingTransfer of Statistical

Key Figures

ProfitCenter 1

Profit

Center 1

Number of Employees 10

Number of Sales Orders:355

SDSD

Number of Employees: 10

Number of Sales Orders: 355

SDSD

COCO--OMOM

COCO--OMOM

? In addition to the monetary data in accounting, you can also transfer Statistical Key Figures from the

account assignment objects in Controlling to Profit Center Accounting. Statistical key figures can betransferred from the following objects:

?Cost centers

?Cost centers/activity types

?Orders

?Cost objects

? Networks/network activities

?WBS elements

?

Sales document (sales order items)? A Customizing table determines which key figures can be transferred from which objects to Profit

Center Accounting. This means that you can choose not to transfer certain key figures which are

unnecessary in EC-PCA, such as those used solely in Cost Center Accounting as tracing factors for periodic allocations.

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Item 1Item 2Item 3

Carry out period-closing activities for payables and receivables in FI(payables and receivables are split according to profit center)

Start transfer program in Profit Center Accounting

Sales order

ECEC--PCAPCA

Profit Center AProfit Center BProfit Center C

100020003000

Transfer of Payables / Receivables

Customers

6000

Cus. Profit Center C

3000

Cus. Profit Center B

2000

SDSD

Cus. Profit Center A

1000

1

2

FIFI

? Before you can transfer payables and receivables, you first need to calculate the payables and

receivables to be split in Financial Accounting. In this step, the payables and receivables are brokendown according to profit center and business area based on sales order line item assignments.

? Within PCA you can transfer the data to Profit Center Accounting. You receive a list of all the companycodes in the current controlling area. Select the required company codes and choose the periods youwant to transfer. The system then posts the payables and receivables to Profit Center Accounting

under the reconciliation accounts of the general ledger. No FI documents are created in the process.

? If you select line items, the system writes a line item for each customer and each supplier.

? After the program has run you receive an error log. You can analyze the posted data using standard

reports in Profit Center Accounting.

? Note : The program first transfers the closing balance of payables and receivables. It also determines the

final balance of the previous period and updates this with a minus ("-") sign. As a result, the summaryrecords in each period contain the movements in the payables and receivables, as shown exactly inFinancial Accounting.

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BusinessBusiness

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Distribution and assessmentwork in the same way as

Cost Center Accounting

Distribution / Assessment

Profit Center

Sales Admin

Profit Center

Sales Admin

Profit Center Sports Cars


Period-End ClosingDistribution

Profit Center Motorcycles

ECEC--PCAPCA

? Allocation (assessment and distribution) of overhead costs is usually performed at period closing. This

is usually done directly in CO and reflected in the data in Profit Center Accounting.

? If you have a service profit center or allocation center in your profit center hierarchy, you may need to

assess or distribute costs again in Profit Center Accounting.

? Under certain circumstances it may also be necessary to allocate revenues and sales deductions.You can do this as well in Profit Center Accounting.

? Often you have to allocate further certain balance sheet items (raw materials, real estate and so on),which you first posted to a single profit center, to several receiving profit centers.

? Assessing or distributing data in Profit Center Accounting only makes sense after you have completed

all the period closing activities in the applications which supply EC-PCA withdata (FI, CO, SD, MM, etc.). You should also post any additional profit center data manually,

such as PCA Statistical Key Figures, before allocating.

? Distribution and assessment work the same way as in Overhead Management, but affectPCA postings only.

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. . . . .

Sender 2

. . . . .

Sender 1

Sender 2

. . . . .

. . . . .Sender 2

. . . . .

Segment 1

R u l e s

R u l e s

Sender 1

Sender 1Receiver 1

Receiver 2

Receiver 4

Receiver 3

Create Distribution / Assessment

Cycle 3Cycle 3

Cycle 2

Cycle 1

. . . . .Sender 2

. . . . .

Sender 1

Sender 2

. . . . .

Sender 2

. . . . .Sender 2

. . . . .

Segment 1

R u l e s

R u l e s

Sender 1

Sender 1Receiver 1

Receiver 2

Receiver 4

Receiver 3. . . . .

Sender 2

. . . . .

Sender 1

Sender 2

. . . . .

Sender 2

. . . . .Sender 2

. . . . .

Segment 1

R u l e s

R u l e s

Sender 1

Sender 1Receiver 1

Receiver 2

Receiver 4

Receiver 3

Cycle 1

? When you define a distribution or assessment, you collect all the sender-receiver relationships in

segments. You then store these segments in different cycles, which are stored with a time reference.

? As of Release 4.6 allocation cycles can be defined at the controlling area level.

? The allocation can be processed interactively in a cycle. If no percentage remaining values are defined,and all accounts are involved in the allocation, the sender profit centers are all completely emptied.

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BusinessBusiness

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Enter Profit Center Documents

Profit Center Bicycles

Profit Center Motorcycles

8000

Revenue

Transaction ProcessingEnter Profit Center

Postings

8000

Revenue

? You can use this function to import external data to Profit Center Accounting via batch input.

? You can also use it to create the opening balance for transferring additional balance sheet items to ProfitCenter Accounting.

? You can create your own document entry layout in Customizing or take one of the standard layouts.

? Enter the company code and the document type. If you wish, you can also enter a different date to beused for currency translation. The system assigns a document number internally. If you wish, you can

also enter a transaction currency and a basic unit of measure. Enter the currencies and quantities as wellas an account assignment for each document line. For credit postings, you must enter a minus sign(”- ”) after the amount.

? The documents you create here are only updated in Profit Center Accounting. No postings are made inFI or in the Special Purpose Ledgers.

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Balance Carry Forward

Balance Sheet Account300001150,000

Fiscal Year 2002 Fiscal Year 2003

Balance Sheet Account300001150,000

P&L Statement Account43000112,000

Balance CarryForward

Retained EarningsAccount900000

12,000

? If you want to post material stocks, assets, work in process or additional balance sheet items to Profit

Center Accounting by transaction, you need to carry balances forward during the course of year- endclosing. Otherwise this step is optional.

? When you carry balances forward, the profit and loss accounts are carried forward to the carry-forwardaccount defined in Customizing for each P&L statement account type, while the balance sheet accountsare carried forward to balance sheet accounts. Postings are divided according to controlling area, profit

center, origin object type and transaction. Balance sheet accounts are carried forward under the sameaccount and divided according to controlling area, profit center, partner profit center, partner company,functional area, transaction, depreciation area (for assets) and results analysis version (for work in

process).

? Once you have activated the function for carrying balances forward in Profit Center Accounting inCustomizing, the system performs it automatically for all postings which are transferred from Financial

Accounting or entered manually in Profit Center Accounting.

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Average Balance Ledger

Balance in

Thousands

0

5

10

15

20

25

30

35

1 2 ... 29 30

Averagebalance

Thou.

Days

Weighting

? All transactions carried out during a period are stored with a date weighting in the average balance

ledger. This means that a transaction that takes place on the first day of the period is updated with a fullweighting, whereas later transactions are weighted according to when in the period they occurred (days

remaining in period, divided by days in period).

? The average balance ledger (8Z) only contains weighted transactions by period. To calculate theaverage balance for a period, the system needs to take the opening balance into account as well. This

opening balance is taken from the profit center ledger "8A".

? Example: At the beginning of period 2, account balance = 10,000 Number of days in period 2: 28

Inward movement on 2/15: 10,000=> weighted movement: 10,000 * 14 days / 28 days = 5,000Inward movement on 2/22: 10,000

=> weighted movement: 10,000 * 7 days / 28 days = 2,500This yields an average balance for period 2 of 17,500

? You can only update the average balance ledger if you update accounts in realtime. If you transfer these

periodically, you can only see the balances as of the end of the period. It is no longer possible todetermine when during the period the transactions were carried out.

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Actual Data: Unit Summary

You are now able to:? explain the differences in the way P&L statement

accounts and balance sheet accounts aretransferred

? understand how profit centers are determinedin FI, MM, CO and SD

? configure the characteristics-dependent profitcenter determination

? carry out period-end closing in EC-PCA

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Exercises

Unit: Actual Data

Topic: Data Flow from Financial Accounting


? understand the profit center determination when postings are made in

Financial Accounting to balance sheet accounts and P&L statementaccounts.

The project team needs to clarify the prerequisites for transferring lineitems of postings in FI online to Profit Center Accounting. Using a G/L

account posting, you want to test which profit center is determined when

no profit center is set by substitution in the line item.

1-1 Check whether the system settings allow online postings and line items in ProfitCenter Accounting.

__________________________________________________________________

1-2 Check whether the following accounts were created as a balance sheet account or as a

P&L statement account with cost element in the master data for Financial Accounting

in Company Code 1000. Then check whether cost elements exist for these accountsin the master data menu for Cost Element Accounting in CO. Complete the following

table.

Account Balance SheetAccount or

P&L Statement

Account?

Cost ElementCreated?

Cost ElementCategory?

156000

479100430000

415000

800000

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1-3 To test the way the FI interface works, enter G/L account postings in the general

ledger for Financial Accounting. Enter the following documents in Company Code1000 using the Current Date as the document date.

1-3-1 Enter the following posting:

G/L Acct D/C Amount inDoc. Curr. Profit Center

156000 Debit 10,000 91##

156000 Debit 20,000 No entry


113100 Credit 60,000

Save the document and make a note of the document number.

_________________________________________________

1-3-2 Call the report Profit Center: Actual Line Items in the information systemfor Profit Center Accounting and start the report with the parameters Record

Type 0, Version 0, Controlling Area 1000, Company Code 1000, current

Posting Period, current Fiscal Year, and enter the document from task 1-3-1in the Reference Document Number field.

1-3-3 Which line items were transferred to Profit Center Accounting and which

profit centers were determined by the system? List system settings to support

your answer.

____________________________________________________________

____________________________________________________________

____________________________________________________________

1-3-4 Which line items were not transferred? List system settings to support your

answer.

____________________________________________________________

____________________________________________________________

____________________________________________________________

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1-3-5 Enter the following CO-relevant posting

G/L Acct D/C TaxCode

Amount in Doc.Curr.

CostCenter

Order

430000 Debit 20,000 T92##

430000 Debit 15,000 T91##

415000 Debit V0 2,500 Order number

Trade ShowCivil

Engineering

Group ##

415000 Debit V0 1,000 4298

113100 Credit 39,000


____________________________________________

1-3-6 Call the report Profit Center: Actual Line Items in the information systemfor Profit Center Accounting and start the report with the parameters RecordType 0, Version 0, Controlling Area 1000, Company Code 1000, current


1-3-7 Which line items were transferred to Profit Center Accounting and which profit centers were determined by the system? Give reasons to support your

answer.

____________________________________________________________

____________________________________________________________

____________________________________________________________

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1-3-8 Enter the following manual revenue posting

G/L Acct D/C Amount inDoc. Curr.

TaxCode

ProfitCenter

ProfitabilitySegment

800000 Credit 15,000 0o 91## Sales org.

1000Division01

800000 Credit 10,000 0o No

entry

Sales org.

1000

802000 Credit 5,000 0o Noentry

Sales org.1000

113100 Debit 30,000


_______________________________________________________


Type 0, Version 0, Controlling Area 1000, Company Code 1000, currentPosting Period, current Fiscal Year, and enter the document from task 1-3-8

in the Reference Document Number field.

1-3-10 Which line items were transferred to Profit Center Accounting and which profit centers were determined by the system? Give reasons to support youranswer.

____________________________________________________________

____________________________________________________________

____________________________________________________________

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1-4 You want to obtain an overall view of the costs and revenue situation at profit center

level. To do this, call the list-orientated report Profit Center Group:Plan/Actual/Variance in the information system for Profit Center Accounting and

start the selection with the following parameters:

Field Name Value


Fiscal Year Current fiscal year

Period 1-12

Plan Version 0

Profit Center Group GR##

Profit and LossAccounts Group

3000000.INT

Balance Sheet Account

Group

1000000.INT

What can you say about the current revenue situation of your profit center?

__________________________________________________________________

Which values posted in the financial statements can you find?

__________________________________________________________________

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Unit: Actual Data

Topic: Value Flow from Asset Management


? explain how fixed asset accounts are transferred online to Profit CenterAccounting.

The profit center managers want to see asset postings online to the profit

center with the aim of displaying financial key figures. You check therelevant system settings for the road show truck which has been created

in asset class 3100.

2-1 You want to transfer balance sheet account postings on assets to Profit Center

Accounting.

2-1-1 Has balance sheet account 21000 been defined for the online transfer? Which

default profit center is generated? In what instance is the default profit centertransferred to the line item concerned?

____________________________________________________________

____________________________________________________________

____________________________________________________________

2-1-2 Post the acquisition of the asset in company code 1000 in Asset Accounting

of Financial Accounting by executing the acquisition posting withautomatic offsetting entry.

Field Name Values

Existing Asset Asset number of road show

truck ##Amount Posted 80,000

Document Date Current date

Posting Date Current date

Save the document.

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2-1-3 In the information system for Profit Center Accounting, call the list-orientatedreport Profit Center Group: Plan/Actual/Variance and start the selection

with the following parameters:

Was the asset posting transferred?

____________________________________________________________

Double-click on the totals row of account 21000 to go to the report Profit

Center: Actual Line Items and display the Asset field in the current displayvariant. Which asset is in the line item?

____________________________________________________________

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Unit: Actual Data

Topic: Data flow from Materials Management

On completion of these exercises, you will be able to? understand the profit center determination in relation to purchase

orders and the corresponding goods receipts and invoice receipts

In purchasing, purchase orders are also posted to the respective CO

account assignment objects. They are intended to inform the purchasingmanager about the profit center determination. The financial accounting

manager is interested in the profit center determination in relation togoods receipt postings and invoice receipts for the respective purchaseorders.

3-1 First check the profit center assignment of material M-05 in plant 1000 and then create

a purchase order to the debit of the cost center administration.

3-1-1 Which profit center is assigned to material M-05 in plant 1000?

3-1-2 Create a purchase order in Logistics in Purchasing for Materials Management.

The vendor is known.

Field Name Values

Vendor 1000

Purchasing Organization 1000

Purchasing Group 001

Company Code 1000

Enter the following Purchase Order Item.

Field Name Values

Account AssignmentCategory

K Cost Center

Material M-05

PO Quantity 1

Plant 1000

Storage Location 0001

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Go to the Account Assignment tab page in the item. Enter cost center T92## asthe account assignment object and check the entry in the profit center field.

Which profit center was assigned?

____________________________________________________________

Save the purchase order and make a note of the purchase order number.

____________________________________________________________

3-2 Enter a goods receipt for purchase order.

3-2-1 Enter a goods receipt for purchase order in the Inventory Management of

Logistics. Use the purchase order number from task 3-1-2. Check the Account Assignment tab page. Which profit center has been determined by the system?Give reasons to support your answer.

____________________________________________________________

____________________________________________________________

Post the goods receipt and make a note of the number of the materialdocument.

____________________________________________________________

3-2-2 In the information system for Profit Center Accounting, call the interactive

report Profit Center Group: Plan/Actual/Variance with the following

parameters:

Field Name Values

From Period 1

To Period 12


Plan Version 0

Profit CenterValues 92##

Profit and Loss AccountsGroup

3000000.INT

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In reporting for Profit Center Accounting, in addition to the classic

Report Painter reports there are also drilldown reports which allowyou to navigate easily between report characteristics and thehierarchy displays of the respective characteristics. Furthermore, you

can define a report interface with the option of branching to other

reports. Detailed information on defining drilldown reports is givenin the Information System unit.

If necessary, expand the account hierarchy to account 410000. Determine the

origin object of this posting by moving the account to the characteristic OriginObject.

____________________________________________________________

To find out which cost center is hidden behind this posting, you must branch to

the line items. Call the report Profit Center: Actual Line Items and thenchange the current display variant by displaying the Cost Center field. Whichcost center is visible in the line item?

____________________________________________________________

Double-click on the line item to reach the source document. What document isthis?

____________________________________________________________

3-3 Enter an MM invoice receipt for purchase order.

3-3-1 In the Materials Management Menu, enter an Incoming Invoice forLogistics Invoice Verification.

Enter the following Basic Data for the transaction Invoice :

Field Name Values

Invoice Date Current date


Tax Code V0 (0% domestic input tax)

In the field for the Purchase Order/Scheduling Agreement , enter the purchase

order number from task 3-1-2 and confirm.Change the tax code to V0 in the item.

Enter the amount from the invoice item in the basic data.Save and make a note of the document number.

____________________________________________________________

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3-3-2 Display the Invoice Document in the Further Processing menu. Go to thefollow-on documents.

Which FI posting was generated?

____________________________________________________________

Was a profit center document generated? Give reasons to support your answer.

____________________________________________________________

____________________________________________________________

____________________________________________________________

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Unit: Actual Data

Topic: Transfer from Controlling

On completion of these exercises, you will be able to? carry out a direct activity allocation and the settlement of an internal

order.

? understand the profit center determination in relation to direct activityallocation and settlements of internal orders.

At the trade show you experience technical problems with the exhibits.

The repair work is carried out by a service cost center. The trade fairorder is debited with repair costs using direct activity allocation.

After the trade show has ended, the total costs should be posted to thesales cost center.

4-1 Carry out a direct activity allocation.

4-1-1 Technical problems occurred at the trade show Civil Engineering Group ## which were dealt with by a technician from cost center 4100. Thecorresponding activity type is 1410 Repair Hours. First determine which price

is allocated by calling the report Cost Centers: Activity Prices in Cost CenterAccounting for the current period. How much is the price per hour for cost

center/activity type 4100/1410 in the current period (version 0)?

4-1-2 Which profit center is assigned to cost center 4100?

____________________________________________________________

4-1-3 Which profit center is assigned to the order Trade Show Civil EngineeringGroup ##?

____________________________________________________________

4-1-4 Post the activity allocation in Cost Center Accounting. The technician reported10 Repair Hours . Make a note of the document number.

____________________________________________________________

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4-2-5 In reporting for Profit Center Accounting, call the report Profit Center:

Actual Line Items with the following parameters.

Field Name Values

Record Type 0

Version 0


Company Code 1000

Posting Period Current Period


Reference Document Number Document from task 4-1-4

Which profit center was credited and what is the partner profit center? Givereasons to support your answer.

____________________________________________________________

____________________________________________________________

____________________________________________________________

Which profit center was debited and what is the partner profit center? Givereasons to support your answer

____________________________________________________________

____________________________________________________________

____________________________________________________________

4-2 After the work has been completed, the total trade show costs should be settled to cost

center T91##.

4-2-1 Which profit center is assigned to the order Trade Show Civil EngineeringGroup ## and which profit center is assigned to cost center T91##?

Order : ____________________________________________________

Cost center : _________________________________________________

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4-2-2 In the master data for the order, define the following Settlement Rule:

Cat.: SettlementReceiver

% Settlement Type

CTR T91## 100 Ful

Save the order.

4-2-3 Settle the order in the Period-End Closing of the Internal Orders in UpdateMode . The settlement should be carried out in the Current Period. Choose

the processing type Automatic.

After settlement has been completed, go from the basic list to the Detail Lists. Who is the sender and who is the recipient of the settlement?

Sender: _____________________________________________________

Recipient: __________________________________________________

Stay in the detail lists and display the generated Accounting Documents.

Which accounting documents were generated?

____________________________________________________________

____________________________________________________________

Choose the Profit Center Document.Which profit center was debited and which profit center was credited?

Debit: ___________________________________________________

Credit: __________________________________________________

4-2-4 The elimination of internal business volume is active. Why can profit center

91## be both the sender and also the recipient of the settlement?

____________________________________________________________

____________________________________________________________

____________________________________________________________

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Unit: Actual Data

Topic: Transfer from Sales and Distribution


? create a standard sales order and process the entire order.

? understand the profit center derivation of characteristics in relation to

standard sales orders

The financial accounting and logistics managers want an explanation ofhow sales are posted from standard sales orders to Profit CenterAccounting. They are also interested in the interaction between the sales

process and postings in Financial Accounting.

Order processing consists of the following steps: You create a sales order.At this point, the system determines price, costs, discounts and other

values based on the SD configuration. After you have saved the order, thesystem assigns an order number. The next step is the delivery processwhereby the ordered materials are picked and a transfer order is created,

the goods issue is posted and also lastly a delivery document is createdfor the physical delivery of the product. After the delivery, a billing

document is created, which ends the order processing from an SD pointof view.

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5-1 Create a standard sales order in the Sales and Distribution component and see how the

sales costs are updated in Profit Center Accounting.

5-1-1 Enter a sales order with the following parameters:

Field Name Value

Order Type TA

Sales Organization 1000


Division 00

Sold-to Party T-CO05A##

Ship-to Party T-CO05A##

PO Number PUMP ##

Material P-100

Order Quantity 50

Check the account assignment of this order item in the item details. Which profit center is assigned? Give reasons to support your answer.

____________________________________________________________

____________________________________________________________

Since the sales order items are to be assigned to the Sales and Distribution profit center 91##, enter this as the profit center account assignment in the

item.Afterwards save the document and make a note of the document number.

____________________________________________________________

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5-1-2 Create an outbound delivery for the sales order.Use the following parameters:

Field Name Value

Shipping Point 1000

Selection Date Current date + 1 month

Order Order number from task 5-1-1


____________________________________________________________

Change the outbound delivery you have just saved and create a transfer orderusing the subsequent functions in order to carry out the logistical functions for

transportation planning and shipment completion (in particular picking).Use the following parameters:

Field Name Value

Warehouse Number 010

Delivery Document number of delivery

Activate Item Set indicator

Foreground/Backgrnd System-Guided

Post the transfer order. No entries are necessary since picking is carried out

automatically.

Change the outbound delivery again and carry out the Goods Issue Posting.

5-2 Display the sales order in order to check the subsequent documents of this order.

5-2-1 Display the sales order and check the subsequent documents from within thisscreen. How many subsequent documents were generated?

____________________________________________________________

____________________________________________________________

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5-2-2 Display the document for goods issue delivery. From there, analyze the postedFI document. Which posting was generated?

____________________________________________________________

____________________________________________________________

5-2-3 Also check the corresponding PCA document posted in parallel. Which lineitem was posted to which profit center?

____________________________________________________________

____________________________________________________________

5-3 The last step is to create a billing document.

5-3-1 Bill the sales order from task 5-1-1. For this, enter the document number of theoutbound delivery from task 5-1-2. Make a note of the number of the billing

document.

____________________________________________________________

5-3-2 Display the sales order and check the subsequent documents from within this

screen. How many subsequent documents were generated?

____________________________________________________________

5-3-3 Display the posted accounting document. Which posting was generated?

____________________________________________________________

____________________________________________________________

5-3-4 Go from the accounting document to the profit center document. Which lineitem was posted to which profit center?

____________________________________________________________

____________________________________________________________

5-3-5 Why were the receivables not transferred to Profit Center Accounting?

____________________________________________________________

____________________________________________________________

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Unit: Actual Data

Topic: Functional Areas in EC-PCA

On completion of these exercises, you will be able to? identify the functional area that was transferred to EC-PCA.

In Financial Accounting, the individual company codes use functional

areas in order to display the profit and loss statement in accordance withthe cost of sales accounting. This option should also be made available to

those responsible for the profit center. Check which functional areas weretransferred to Profit Center Accounting.

6-1 Check profit center documents for functional areas.

6-1-1 Execute the line item report of Profit Center Accounting with the following parameters:

Field Name Value

Record Type 0

Version 0


Company Code 1000

Posting Period Current period


Profit Center 91## Sales

Show the Functional Area field in the current display variant.Then sort the lines by account number.Which functional area was determined when posting with cost element

430000?

____________________________________________________________

____________________________________________________________

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Which functional area was determined when posting with revenue element800000?

____________________________________________________________

____________________________________________________________

6-1-2 Call the line item report for profit center 92## Administration.

Which functional area was determined when posting cost element 430000?

____________________________________________________________

____________________________________________________________

6-2 How do you derive a functional area in the R/3 System?

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

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Unit: Actual Data

Topic: Period-End Closing in EC-PCA

On completion of these exercises, you will be able to? create a cycle for distribution in EC-PCA.

The revenues are collected on the sales profit center. Management

periodically submits fixed amounts which are posted to the non-sales profit centers monthly. Distribution is to be used to keep the revenue

element visible.

7-1 Analyze the current status of the profit and loss statement on the profit centers ofgroup GR##.

7-1-1 In the information system of Profit Center Accounting, start the list-orientated

report Profit Center Group: Plan/Actual/Variance with the following parameters:

Field Name Value



Period 1 – 12

Plan Version 0

Profit Center GR##

Profit and Loss

Accounts Group

3000000.INT Profit and Loss Statement


Group

1000000.INT Assets

7-1-2 What is your assessment of the ‘performance’ of profit center 91##?

____________________________________________________________

____________________________________________________________

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What is your assessment of the ‘performance’ of profit center 92##?

____________________________________________________________

____________________________________________________________

7-2 Define a distribution in EC-PCA in order to allocate revenues.

7-2-1 Create a distribution in the period-end closing of EC-PCA. Use the following parameters:

Field Name Value

Cycle PCA##

Start Date 01.01.current fiscal year

Enter the following data in the header data of the cycle:

Field Name Value

Text Revenue Distribution PCA##


Company Code 1000

Attach a segment and enter the following segment data.

Field Name Value

Segment Name PCA##SEG

Revenue Distribution Group

##

Enter posted amounts of 100% in the actual as the sender values and fixed

amounts as the receiver tracing factor.

Go to the Senders/Receivers tab page and enter the following allocationrelationship:The posted amounts on account 800000 should be statistically distributed from

profit center 91## to 92##. Work in version 0.

Go to the Receiver Tracing Factor tab page so that you can enter the fixedvalue to be allocated. Enter EUR as the transaction currency and –30,000 asthe revenue amount.

Save the cycle.

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7-2-2 Execute cycle PCA## in the current period of the current fiscal year in updatemode. Use document type V0.

Who is the sender of the allocation?

____________________________________________________________

____________________________________________________________

Who is the receiver of the allocation?

____________________________________________________________

____________________________________________________________

7-3 Analyze the effects of the distribution in reporting.



Field Name Value



Period 1 – 12

Plan Version 0





Group

1000000.INT Assets


____________________________________________________________

____________________________________________________________


____________________________________________________________

____________________________________________________________

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7-3-2 Which actual account assignment objects had the revenues posted to them?Check the corresponding generated accounting documents of the profit center

line item of the distribution.

____________________________________________________________

____________________________________________________________

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Solutions

Unit: Actual Data

Topic: Data Flow from Financial Accounting

1-1 Check whether the system settings allow online postings and line items in Profit

Center Accounting.

ORK2: Profit Center Accounting ? Basic Settings ? Controlling Area Settings

? Activate Direct Postings ? Set Control Parameters for Actual Data

Both online transfer and also line item transfer is set in controlling area 1000.

1-2 Check whether the following accounts were created as a balance sheet account or as aP&L statement account with cost element in the master data for Financial Accounting

in Company Code 1000. Then check whether cost elements exist for these accountsin the master data menu for Cost Element Accounting in CO. Complete the following

table.

Account master records in Financial Accounting:

Accounting ? Financial Accounting ? General Ledger ? Master Records ?

Individual Processing ? Centrally

The information on whether the account is a balance sheet account or a P&L

statement account can be found in the Type/Description tab page.

Cost element master records in Controlling:

Accounting ? Controlling ? Cost Element Accounting ? Master Data ? Cost

Element ? Individual Processing ? Display

If a cost element exists, this is displayed by the system and you can see the costelement category in the master record. If no cost element exists, the system

displays the error message Cost element does not exist in contr oll ing area 1000.

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Account Balance Sheet

Account or

P&L StatementAccount?

Cost Element

Created?

Cost Element

Category?

156000 Bal ance sheetaccount No -

479100 P&L statement

account

No -


account

Yes 01 Pr imar y costs


account

Yes 01 Pr imary costs


account

Yes 11 Revenues

1-3 To test the way the FI interface works, enter G/L account postings in the generalledger for Financial Accounting. Enter the following documents in Company Code

1000 using the Current Date as the document date.

1-3-1 Enter the following posting:

Accounting ? Financial Accounting ? General Ledger ? Document

Entry ? Enter G/L Account Document

Document date: Current date

Enter the following list of line items.


Profit Center

156000 Debit 10,000 91##



113100 Credit 60,000

Post the document and make a note of the document number.

_________________________________________________

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Type 0, Version 0, Controlling Area 1000, Company Code 1000, currentPosting Period, current Fiscal Year, and enter the document from task 1-3-1in the Reference Document Number field.

PCA: Information System ? Reports for Profit Center Accounting ?

Line Item Reports ? Profit Center: Actual Line Items

Record Type: 0Version: 0

Controlling Area: 1000

Company Code: 1000Posting Period: Current period

Fiscal Year: Current fiscal year

Reference document number: From task 1-3-1

1-3-3 Which line items were transferred to Profit Center Accounting and which profit centers were determined by the system? List system settings to support

your answer.

ORK2: Profit Center Accounting ? Actual Postings ? Choose Additional

Balance Sheet and P&L Accounts ? Choose Accounts

Account 156000 is entered and assigned to the default profit center 1402.

10,000 EUR was posted to profit center 91## because this is what youmanually entered in the original line item.

20,000 EUR was posted to profit center 1402 because this profit center isthe default profit center for account 156000 and no manual profit centeraccount assignment was specified in the line item.

1-3-4 Which line items were not transferred? List system settings to support youranswer.

Accounts 479100 and 113100 were not transferred to Profit Center

Accounting since you did not manually enter a profit center in the originalposting. In addition, account 479100 is not entered in table Additional

Balance Sheet and Profi t + Loss Accounts . Hence no default profit center

can be determined.

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1-3-5 Enter the following CO-relevant posting


Entry ? Enter G/L Account Document.

Document Date: Current date


G/L Acct D/C Tax

Code

Amount in

Doc. Curr.

Cost

Center

Order

430000 Debit 20,000 T92##

430000 Debit 15,000 T91##

415000 Debit V0 2,500 Order number

Trade Show

Civil

EngineeringGroup ##

415000 Debit V0 1,500 4298

113100 Credit 39,000


____________________________________________

1-3-6 Call the report Profit Center: Actual Line Items in the information system

for Profit Center Accounting and start the report with the parameters Record

Type 0, Version 0, Controlling Area 1000, Company Code 1000, current




Record Type: 0

Version: 0Controlling Area: 1000

Company Code: 1000

Posting Period: Current periodFiscal Year: Current fiscal year


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answer.

An amount of 20,000 EUR was posted to profit center 92## in account430000 since you entered cost center T92## as the account assignment

object in the line item. Profit center 92## is entered in this cost centermaster record.

An amount of 15,000 EUR was posted to profit center 91## in account430000 since you entered cost center T91## as the account assignment

object in the line item. Profit center 91## is entered in this cost center

master record.

In addition, an amount of 2,500 EUR was posted to profit center 91## in

account 415000 since profit center 91## is entered in the order Trade

Show Civil Engineering Group ##.

An amount of 1,500 EUR was posted to the dummy profit center 9999 in

account 415000 since no profit center is entered in the master record ofcost center 4298.

1-3-8 Enter the following manual revenue posting


Entry ? Enter G/L Account Document.

Document Date: Current date



TaxCode

ProfitCenter

ProfitabilitySegment

800000 Credit 15,000 0o 91## Sales org.1000

Division01

800000 Credit 10,000 0o No entry Sales org.

1000

802000 Credit 5,000 0o No entry Sales org.1000

113100 Debit 30,000


_______________________________________________________

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Type 0, Version 0, Controlling Area 1000, Company Code 1000, currentPosting Period, current Fiscal Year, and enter the document from task 1-3-8in the Reference Document Number field.



Record Type: 0Version: 0

Controlling Area: 1000Company Code: 1000Posting Period: Current period

Fiscal Year: Current fiscal year



answer.

ORK2: Profit Center Accounting? Actual Postings ? Maintain

Automatic Account Assignment of Revenue Elements.

Profit center 9000 is defined as the profit center default account

assignment for revenue element 800000.

No profit center default account assignment is defined for revenue element

802000.

An amount of 15,000 EUR was posted to profit center 91## in account800000 because you manually assigned profit center 91## in the line item.

An amount of 10,000 EUR was posted to profit center 9000 in account

800000 because the system determined the profit center default accountassignment as no profit center had been assigned manually.

An amount of 5,000 EUR was posted to the dummy profit center 9999 inaccount 802000 because neither a manual profit center account

assignment nor an entry in the profit center default account assignmenthad been made.

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1-4 You want to get an overall view of the costs and revenue situation at profit center

level. To do this, call the list-orientated report Profit Center Group:Plan/Actual/Variance in the information system for Profit Center Accounting and

start the selection with the following parameters:

PCA: Information System ? Reports for Profit Center Accounting ? List-

Orientated Reports ? Profit Center Group: Plan/Actual/Variance

Field Name Value



Period 1-12

Plan Version 0



3000000.INT

Balance Sheet AccountGroup

1000000.INT

What can you say about the current revenue situation of your profit center?

Both profit center 91## and also 92## are currently yielding a loss.

Which posted values with regard to the financial statements can be determined?

Financial statement item 156000 is displayed on profit center 91##. This allows a

return on investment to be calculated, based on the report definition, by dividing

the profit center profit or loss by the fixed capital.In this example, the profit or loss is displayed by account group 3000000.INT

(Profit and Loss Statement), whereas the fixed capital is represented by account

group 1000000.INT (Assets).

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Unit: Actual Data

Topic: Value Flow from Asset Management

2-1 You want to transfer balance sheet account postings on assets to Profit Center

Accounting.

2-1-1 Has balance sheet account 21000 been defined for the online transfer? Whichdefault profit center is generated? In what instance is the default profit center

transferred to the line item concerned?

ORK2: Profit Center Accounting ? Actual Postings ? Choose Additional

Balance Sheet and P&L Accounts ? Choose Accounts

Account 21000 is entered and 9990 defined as the default profit center.

The system determines the default profit center when a cost center that

does not have a profit center entered in its master record is entered in theasset master record.

2-1-2 Post the acquisition of the asset in company code 1000 in Asset Accounting

of Financial Accounting by executing the acquisition posting withautomatic offsetting entry.

Accounting ? Financial Accounting ? Fixed Assets ? Posting ?

Acquisition ? External Acquisition ? Acquis. w/Autom. Offsetting Entry

Field Name Values

Existing Asset Asset number of road showtruck ##

Amount Posted 80,000-

Document Date Current date


Save the document.

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2-1-3 In the information system for Profit Center Accounting, call the list-orientatedreport Profit Center Group: Plan/Actual/Variance and start the selection


PCA: Information System? Reports for Profit Center Accounting? List-

Orientated Reports? Profit Center Group: Plan/Actual/Variance

Field Name Value



Period 1-12

Plan Version 0

Profit Center 91##

Profit and Loss

Accounts Group

3000000.INT


Group

1000000.INT

Was the asset posting transferred?

Scroll in the balance sheet postings section.

The amount posted was posted to account 21000 of profit center 91##.

Double-click on the totals row of account 21000 to go to the report Profit

Center: Actual Line Items and display the Asset field in the current layout.

Which asset is in the line item?

Double-click on the line for account 21000.

Choose the report Prof it Center: Actual L ine Items You will then see the posted line items in the ABAP List Viewer display.

Choose Settings / Layout / Current

Click the Asset field in the Column Set

Show the selected field in Columns.Transfer by pressing enter.

In the line item display, you can see the asset number of the road show

truck group ## in the Assets column.

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Unit: Actual Data

Topic: Data flow from Materials Management

3-1 First check the profit center assignment of material M-05 in plant 1000 and then create

a purchase order to the debit of the cost center administration.

3-1-1 Which profit center is assigned to material M-05 in plant 1000?

Logistics ? Materials Management ? Material Master ? Material ?

Display ? Display Current

Material M-05

Click the Select view(s) pushbutton.

Choose the view Costing 1.Enter the plant 1000.Profit center 9999 is assigned to M-05.

3-1-2 Create a purchase order in Logistics in Purchasing for Materials Management.The vendor is known.

Logistics ? Materials Management ? Purchasing ? Purchase Order ?

Create ? Vendor/Supplying Plant Known

Enter the following header data of the purchase order

Field Name Values

Vendor 1000

Purchasing Organization 1000

Purchasing Group 001

Company Code 1000

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Enter the following Purchase Order Item.

Field Name Values

Account AssignmentCategory

K Cost Center

Material M-05

PO Quantity 1

Plant 1000

Storage Location 0001

Confirm by pressing enter.

Go to the Account Assignment tab page in the item. Enter cost center T92## as

the account assignment object. Confirm by pressing enter and check the entryin the profit center field. Which profit center was assigned?

Profit center 92## from the master record of cost center T92## was

assigned.

Save the purchase order and make a note of the purchase order number.

____________________________________________________________

3-2 Enter a goods receipt for purchase order.

3-2-1 Enter a goods receipt for purchase order in the Inventory Management ofLogistics. Use the purchase order number from task 3-1-2. Check the Account Assignment tab page. Which profit center has been determined by the system?Give reasons to support your answer.

Logistics ? Materials Management ? Inventory Management ? Goods

Movement ? Goods Receipt ? For Purchase Order ? PO Number

Known

Enter the purchase order number from task 3-1-2 and confirm.

Click the Account Assignment tab page in the purchase order item.

Cost center T92## and profit center 92## are transferred from thepurchase order.

Set the indicator for I tem OK.

Post the goods receipt and make a note of the number of the materialdocument.

____________________________________________________________

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3-2-2 In the information system for Profit Center Accounting, call the interactivereport Profit Center Group: Plan/Actual/Variance with the following

parameters:


Interactive Reporting ? Profit Center Group: Plan/Actual/Variance

Field Name Values

From Period 1

To Period 12


Plan Version 0

Profit CenterValues 92##

Profit and Loss AccountsGroup 3000000.INT

Execute the report. The graphical report output of a drilldown report is

displayed on screen.

In reporting for Profit Center Accounting, in addition to the classic

Report Painter reports there are also drilldown reports which allowyou to navigate easily between report characteristics and thehierarchy displays of the respective characteristics. Furthermore, you

can define a report interface with the option of branching to otherreports. Detailed information on defining drilldown reports is givenin the Information System unit.

If necessary, expand the account hierarchy to account 410000. Determine the

origin object of this posting by moving the account to characteristic Origin

Object.

Move account 410000 using drag and drop to the characteristic Origin

Object.

In the drilldown list you will then see the values of the origin object cost

center posted to account 410000.

To find out which cost center is hidden behind this posting, you must branch tothe line items. Call the report Profit Center: Actual Line Items and then

change the current layout by displaying the Cost Center field. Which costcenter is visible in the line item?

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Click the value posted for the origin object Cost Center in the actual

column.

Choose Goto / Call reportSelect the report Prof it-Center: Actual L ine I tems

You will then see the line item in the ABAP List Viewer display.

Choose Settings / Layout / Current

Select the Cost center field in the Column Set

Click the Show selected f ields icon. Transfer by pressing enter.

In the line item you can see the entry T92## in the cost center field.

Double-click on the line item to reach the source document. What document isthis?

The original document is the material document for the goods receipt forpurchase order from task 3-2-1.

3-3 Enter an MM invoice receipt for purchase order.

3-3-1 In the Materials Management Menu, enter an Incoming Invoice for

Logistics Invoice Verification.

Logistics ? Materials Management ? Logistics Invoice Verification ?

Document Entry ? Enter Invoice

Enter the following Basic Data for the transaction Invoice:

Field Name Values

Invoice Date Current date


Tax Code V0 (0% domestic input tax)

In the field for the Purchase Order/Scheduling Agreement , enter the purchase

order number from task 3-1-2 and confirm.Change the tax code to V0 in the item.

Enter the amount from the invoice item in the basic data.Save and make a note of the document number.

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In the field for the Purchase Order/Scheduling Agreement,

Enter the purchase order number from task 3-1-2.

Confirm by pressing enter.In the invoice item, scroll to the right to the Tax code column.

Change the tax code to V0.

Display the amount of the invoice item.

Go to the Basic data tab page.Enter the same amount as in the invoice item.

Post the incoming invoice.Make a note of the document number.

____________________________________________________________

3-3-2 Display the Invoice Document in the Further Processing menu. Go to thefollow-on documents.

Logistics ? Materials Management ? Logistics Invoice Verification ?

Further Processing ? Display Invoice Document

Enter the document number from task 3-3-1.Enter the current fiscal year.

Click the Display doc. pushbutton.

The system displays the invoice document.

Which FI posting was generated?

Click the Foll ow-on documents... pushbuttonSelect Accounting document.

The posting record is:GR/IR to creditor

Was a profit center document generated? Give reasons to support your answer.

No profit center document was generated because payables can only be

transferred periodically to Profit Center Accounting.

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Unit: Actual Data

Topic: Transfer from Controlling

4-1 Carry out a direct activity allocation.

4-1-1 Technical problems occurred at the trade show Civil Engineering Group ## which were dealt with by a technician from cost center 4100. Thecorresponding activity type is 1410 Repair Hours. First determine which price

is allocated by calling the report Cost Centers: Activity Prices in Cost CenterAccounting for the current period. How much is the price per hour for cost

center/activity type 4100/1410 in the current period (version 0)?

Accounting ? Controlling ? Cost Center Accounting ? Information

System ? Reports Cost Center Accounting ? Prices ? Cost Centers:

Activity Prices

Field Name Values

Cost Center 4100

Activity Type 1410

Version 0


Period Current period

Price Unit 1

Execute the report.The price differs depending on the period

4-1-2 Which profit center is assigned to cost center 4100?


Cost Center ? Individual Processing ? Display

Cost center 4100

Select the current period.

Profit center 1600 is entered in the master record.

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4-1-3 Which profit center is assigned to the order Trade Show Civil EngineeringGroup ##?

Accounting ? Controlling ? Internal Orders ? Master Data ? Special

Functions ? Order ? Display

Enter the order number for Trade Show Civil Engineering Group ## andconfirm by pressing enter.

Profit center 91## is entered in the master record.

4-1-4 Post the activity allocation in Cost Center Accounting. The technician reported10 Repair Hours . Make a note of the document number.

Accounting ? Controlling ? Cost Center Accounting ? Actual Postings

? Activity Allocation ? Enter

Choose the screen variant Order

Enter the following data.

Send.CCtr:

SAtyTyp Rec. Order TotalQuantity

4100 1410 Order numberTrade Show Civil

Engineering Group

##

10

Post the activity allocation.

Make a note of the document number.

____________________________________________________________

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4-1-5 In reporting for Profit Center Accounting, call the report Profit Center:

Actual Line Items with the following parameters.



Field Name Values

Record Type 0

Version 0


Company Code 1000



Reference Document Number Document from task 4-1-4

Which profit center was credited and what is the partner profit center? Givereasons to support your answer.

Profit center 1600 was credited since this is entered in the master record

of sender cost center 4100. The partner profit center is 91## because this is

entered in the receiver order of the activity allocation.

Which profit center was debited and what is the partner profit center? Givereasons to support your answer

Profit center 91## was debited since this is entered in the master record of

the receiver order of the activity allocation. The partner profit center 1600

is entered in sender cost center 4100.

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4-2 After the work has been completed, the total trade show costs should be settled to cost

center T91##.

4-2-1 Which profit center is assigned to the order Trade Show Civil Engineering

Group ## and which profit center is assigned to cost center T91##?


Functions ? Order ? Display

Order: Profit center 91##


Cost Center ? Individual Processing ? Display

Cost center : Profit center 91##

4-2-2 In the master data for the order, define the following Settlement Rule:


Functions ? Order ? Change

Enter the order number from Trade Show Civil Engineering Group ##

and confirm by pressing enter.Click the Settl ement rul e pushbutton


Cat.: Settlement

Receiver

% Settlement Type

CTR T91## 100 Ful

Save the order.

4-2-3 Settle the order in the Period-End Closing of the Internal Orders in Update

Mode . The settlement should be carried out in the current period. Choose the

processing type Automatic.

Accounting ? Controlling ? Internal Orders ? Period-End Closing ?

Single Functions ? Settlement ? Individual Processing

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Field Name Values

Order Order number Trade Show CivilEngineering Group ##

Settlement Period Current period


Processing Type Automatic

Not a test run

Execute

After settlement has been completed, go from the basic list to the Detail Lists.

Who is the sender and who is the recipient of the settlement?

Choose Goto / Detail lists.

Sender: Order Trade Show Civil Engineering Group ##

Recipient: Cost Center T91##

Stay in the detail lists and display the generated Accounting Documents.Which accounting documents were generated?

Click the Accounti ng documents pushbutton.

A Controlling document and a profit center document were generated.

Choose the Profit Center Document.

Which profit center was debited and which profit center was credited?

Double-click on Prof it center document .

Debit: Profit center 91##

Credit: Profit center 91##

4-2-4 The elimination of internal business volume is active. Why can profit center91## be both the sender and also the recipient of the settlement?

The elimination of internal business volume only filters postings in whichthe sender and the recipient belong to the same origin object. However, in

this instance, the sender belongs to the origin object Cost Center and the

recipient belongs to the origin object Order. Therefore, this posting istransferred to Profit Center Accounting.

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Unit: Actual Data

Topic: Transfer from Sales and Distribution

Order processing consists of the following steps: You create a sales order.

At this point, the system determines price, costs, discounts and othervalues based on the SD configuration. After you have saved the order, thesystem assigns an order number. The next step is the delivery process

whereby the ordered materials are picked and a transfer order is created,the goods issue is posted and also lastly a delivery document is created

for the physical delivery of the product. After the delivery, a billingdocument is created, which ends the order processing from an SD pointof view.

5-1 Create a standard sales order in the Sales and Distribution component and see how thesales costs are updated in Profit Center Accounting.

5-1-1 Enter a sales order with the following parameters

Logistics ? Sales and Distribution ? Sales ? Order ? Create


Field Name Value

Order Type TA

Sales Organization 1000


Division 00


Sold-to Party T-CO05A##

Ship-to Party T-CO05A##PO Number PUMP ##

Material P-100

Order Quantity 50

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Confirm by pressing enter.Check the account assignment of this order item in the item details. Which

profit center is assigned? Give reasons to support your answer.

Choose Goto / Item / Account assignment.

Profit center 1010 was automatically determined by the system because it

is entered in the master record of material P-100.

Since the sales order items are to be assigned to the Sales and Distribution profit center 91##, enter this as the profit center account assignment in the

item.Afterwards save the document and make a note of the document number.

You are in the Account Assignment tab page of the item data of the

standard order.

Delete profit center 1010 from the Profit Center field and enter profitcenter 91## instead.

Confirm by pressing enter.Save the order.Make a note of the number of the sales and distribution document.

____________________________________________________________

5-1-2 Create an outbound delivery for the sales order.

Logistics ? Sales and Distribution ? Sales ? Order ? Subsequent

Functions ? Outbound Delivery

Use the following parameters:

Field Name Value

Shipping Point 1000

Selection Date Current date + 1 month

Order Order number from task 5-1-1



____________________________________________________________

Change the outbound delivery you have just saved and create a transfer orderusing the subsequent functions in order to carry out the logistical functions for

transportation planning and shipment completion (in particular picking).

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Use the following parameters

Logistics ? Sales and Distribution ? Sales ? Order ? Subsequent

Functions ? Outbound Delivery

Choose Outbound Delivery / Change.

Enter the document number of the outbound delivery.Choose Subsequent Functions / Create Transfer Order.


Field Name Value

Warehouse Number 010

Delivery Document number of delivery

Activate Item Set indicator

Foregrounf/Backgrnd System-Guided


Post the transfer order. No entries are necessary since picking is carried out

automatically.

Post the transfer order.

Change the outbound delivery again and carry out the Goods Issue Posting.

Logistics ? Sales and Distribution ? Sales ? Order ? SubsequentFunctions ? Outbound Delivery

Choose Outbound Delivery / Change.Enter the document number of the outbound delivery.


Click the Post goods issue pushbuttonThis completes the logistical outbound delivery and the generation of the

associated documents.

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5-2 Display the sales order in order to check the subsequent documents of this order.

5-2-1 Display the sales order and check the subsequent documents from within thisscreen. How many subsequent documents were generated?

Logistics ? Sales and Distribution ? Sales ? Order ? Display

Enter the order number from task 5-1-1 and confirm by pressing enter.Choose Environment / Display document flow.

Four documents were generated:

Standard orderDelivery

WM transfer order

Goods issue delivery

5-2-2 Display the document for goods issue delivery. From there, analyze the posted

FI document. Which posting was generated?

Select the document for goods issue delivery.

Click the Displ ay document pushbutton.

The system displays the material document for goods issue delivery.Click the Accounting Documents pushbutton. Select Accounti ng document.

Posting: 894025 Inv Change – OEM to 792000 Finished Goods Inventory Exit the FI document.

5-2-3 Also check the corresponding PCA document posted in parallel. Which line

item was posted to which profit center?

Select the Profit center doc.

894025 Inv Change was posted to profit center 91##.

792000 Unfinished Products of revenue posted to profit center 1010.

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5-3 The last step is to create a billing document.

5-3-1 Bill the sales order from task 5-1-1. For this, enter the document number of theoutbound delivery from task 5-1-2. Make a note of the number of the billing

document.

Logistics ? Sales and Distribution ? Sales ? Order ? ? Subsequent

Functions ? Billing Document

If necessary, enter the document number of the outbound delivery fromtask 5-1-2 in the document column.

Save the billing document.

Make a note of the document number.

____________________________________________________________

5-3-2 Display the sales order and check the subsequent documents from within this

screen. How many subsequent documents were generated?

Logistics ? Sales and Distribution ? Sales ? Order ? Display

Enter the order number from task 5-1-1 and confirm by pressing enter.

Choose Environment / Display document flow.

Six documents have been posted in the meantime.

Standard order

DeliveryWM transfer order

Goods issue deliveryInvoice

Accounting document

5-3-3 Display the posted accounting document. Which posting was generated?

Click Accounting document.

Click the Display document pushbutton.

Accounts Receivables T-CO05A## to 800000 Revenues

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5-3-4 Go from within the accounting document to the profit center document. Whichline item was posted to which profit center?

You are in the accounting document.

Choose Environment / Document environment / Accounting documents

Select profit center document.

Account 800000 is posted to profit center 91##.

5-3-5 Why were the receivables not transferred to Profit Center Accounting?

Receivables can only be transferred periodically to Profit Center

Accounting.

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Unit: Actual Data

Topic: Functional Areas in EC-PCA

6-1 Check profit center documents for functiona l areas.

6-1-1 Execute the line item report of Profit Center Accounting with the following parameters:



Enter the following data and execute the report.

Field Name Value

Record Type 0

Version 0


Company Code 1000



Profit Center 91## Sales

Show the functional area field in the current layout.

You are in the ABAP List Viewer display of the profit center line items.

Choose Settings / Layout / Current...

Select the Functional area column in the Column Set .Click on Show selected f ields.

Transfer by pressing enter.

Then sort the lines by account number.

Which functional area was determined when posting with cost element430000?

You are in the ABAP List Viewer display of the profit center line items.

Select the Account Number column.

Choose Edit / Sort in Descending Order

Functional area 0300 Sales was determined.

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Which functional area was determined when posting with revenue element800000?

Functional area 0050 Sales was determined

6-1-2 Call the line item report for profit center 92## Administration.



Enter the following data and execute the report.

Field Name Value

Record Type 0

Version 0

Controlling Area 1000Company Code 1000



Profit Center 92## Administration

Which functional area was determined when posting cost element 430000?

Functional area 0400 Administration was determined.

6-2 How do you derive a functional area in the R/3 System?

Manual posting Substitution at time of cost-of-sales accounting

Master record of P&L statement accountMaster record of CO object

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Unit: Actual Data

Topic: Period-End Closing in EC-PCA

7-1 Analyze the current status of the profit and loss statement on the profit centers of

group GR##.

7-1-1 In the information system of Profit Center Accounting, start the list-orientatedreport Profit Center Group: Plan/Actual/Variance with the following

parameters:


List-Orientated Reports ? Profit Center Group: Plan/Actual/Variance

Field Name Value



Period 1 – 12

Plan Version 0

Profit Center GR##

Profit and Loss

Accounts Group



Group

1000000.INT Assets

You can see the report layout for the profit center group GR##

7-1-2 What is your assessment of the ‘performance’ of profit center 91##?

In the Variation window select profit center 91##.

If all the postings have been made in accordance with the exercises, profit

center 91## obtains a profit in accordance with account group3000000.INT.


In the Variation window, select profit center 92##.

Profit center 92## does not obtain a profit since no revenues were posted

online from the actual transactions.

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7-2 Define a distribution in EC-PCA in order to allocate revenues.

7-2-1 Create a distribution in the period-end closing of EC-PCA. Use the following parameters:

PCA: Actual Postings ? Period-End Closing ? Distribution

Choose Extras / Cycle / Create

Field Name Value

Cycle PCA##

Start Date 01.01.current fiscal year


Enter the following data in the header data of the cycle:

Field Name Value

Text Revenue Distribution PCA##


Company Code 1000

Attach a segment and enter the following segment data.

Click the Attach Segment pushbutton.

Field Name ValueSegment Name PCA##SEG

Revenue Distribution Group

##

Enter posted amounts of 100% in the actual as the sender values and fixed

amounts as the receiver tracing factor.

Field Name Value

Sender rule Posted Amounts

Share in % 100 %

Actual button Act. vals

Receiver rule Fixed amounts

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Go to the Senders/Receivers tab page and enter the following allocationrelationship:

The posted amounts on account 800000 should be statistically distributed from profit center 91## to 92##. You work in version 0.

Click the Sender/Receivers tab page

Enter the data specified in the previous paragraph.

Go to the Receiver Tracing Factor tab page so that you can enter the fixed

value to be allocated. Enter EUR as the transaction currency and –30,000 asthe revenue amount.

Click the Receiver Tracing F actor tab page.

Enter the currency key EUR.

Enter –30,000 as the fixed amount.Note that the amount must be entered with a negative sign since revenues

are posted to Profit Center Accounting with a negative sign.

Save the cycle.

7-2-2 Execute cycle PCA## in the current period of the current fiscal year in update

mode. Use document type V0.

PCA: Actual Postings ? Period-End Closing ? Distribution

Enter the following data:

Field Name Value

Period Current period


Document Type V0

Not a test run

Detailed lists Activate

Cycle PCA##

Execute icon

Who is the sender of the allocation?

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Click the Sender pushbutton. The sender of the allocation is account 800000 with profit center 91##

since distributions allocate specific to the cost element.Click the Basic L ist pushbutton to return to the basic list.

Who is the receiver of the allocation?

You are in the basic list of the distribution.

Click the Receiver pushbutton.

The receiver of the allocation is account 800000 with profit center 92##

since distributions allocate specific to the cost element.

7-3 Analyze the effects of the distribution in reporting.





Field Name Value



Period 1 – 12

Plan Version 0


Profit and Loss

Accounts Group



Group

1000000.INT Assets

Press the Execute icon.


Profit center 91## has submitted revenues to profit center 92##.


Profit center 92## has received revenues from profit center 91##.

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7-3-2 Which actual account assignment objects had the revenues posted to them? Forthis, check the generated accounting documents of the profit center line item of

the distribution in profit center 92##.

You are in the report view of report Profit Center Group:

Plan/Actual/Variance

In the Variation window, navigate to profit center 92##.

Double-click on the report row of account 800000.

Select Profit Center: Actual Line ItemsYou will see the profit center line item of the distribution.

Choose Extras / FI/CO Documents.

The system displays the error message "ocument display does not exist for

object type L()" .

This means that there are no documents in accounting. Therefore, no

actual objects were posted to. The distribution in Profit Center

Accounting only posts statistically within Profit Center Accounting.

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? SAP AG 2003

Transfer Prices

Contents:

? Definition of Transfer Prices in R/3

? Parallel Valuation Approaches

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Transfer Prices: Objectives

On completion of this unit, you will be able to:

? understand the concept of transfer prices in R/3

? outline the significance of transfer prices havewithin Profit Center Accounting

? describe multiple valuation approaches in R/3

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Transfer Prices: Course Overview Diagram

Master Data

Information

System

Transfer Prices

Actual Data


Profitability

Management

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Transfer Prices: Business Scenario

? Profit center managers are interested in trackinginternal revenues between the entities (profitcenters) within the corporation.

? The delivery of goods from one profit center toanother should be conducted at a set transferprice (e.g. market price).

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CorporateExecutiveBoard

?

BRA

Division A

Division B

J

America Europe/Africa Asia

MEX

D

USAF

I

Strategic Enterprise Control

Legal view – that of the independent legal companies

Group view – that of the organization as a whole

Profit center view – that of the decentralized responsibility areas

?

The profitability of a company can vary considerably depending on the perspective that has beenchosen.

? Group controlling focuses primarily on the organization as a whole, that is, rather than seeing theindividual companies of the whole group, it sees the group (in this context identical to the controlling

area) as a single company. (Fiction of the unit)

? For the individual affiliated companies, prominence is given to the profit performance from a legal point of view (commercial and tax trading report in accordance with German HGB or local GAAP).

? Those responsible for the profit centers are primarily interested in the profitability of their own profitcenter. (Profit center view). You manage the profit center practically like an in dependent company.("Company within a company").

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Group(= ControllingArea)

Company 3Company 3Company 3

Legal

Company 1Company 1Company 1 Company 2Company 2Company 2

Group

Profit Center 1

Profit Center 2

Parallel Valuation Views

Profit Center

? The view of the individual company and the valuation of business transactions according to legal

reporting requirements only represents one of several possible perspectives. Commercial and taxconsiderations play a dominant role in the legal reporting requirements of the individual companies.

? In addition to this legal view, though, successful corporate and group management also needsaccounting information that shows business activities from the point of view of the whole group or ofindividual profit centers.

? It is essential for group controlling for the entire group that you valuate these business transactionsusing group production costs (group view). Moreover, in many groups the management structures donot necessarily coincide with the independent accounting units. An internal moving average price

system guides the activities of the individual profit centers according to market principles.Consequently, value flows represented from the point of view of profit centers are vital for the purposesof profit center management and profitability.

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? SAP AG 2003

Definition of a Transfer Price

A transfer price is a price used to valuatethe transfer of goods and services

between independent organizational units.

A transfer price is a price used to valuatethe transfer of goods and services

between independent organizational units.

? There are transfer prices in each of these views, calculated on the basis of a different valuation

approach.

? (Currently transfer pricing has only been realized in R/3 for goods movements and also for fixed pricing

within the scope of projects.)

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Transfer Prices in the R/3 System

Controlling Area (= Group)

PCAPCA

FIFI

COCO

Transfer Price from the Group Viewpoint = Group Cost of Goods Manufactured

Transfer Price from the Profit Center Viewpoint = Moving Average Price

Transfer Price from the Legal Viewpoint = Sales and Purchase Price

Company Code

Profit Center

? For the purpose of parallel valuation in R/3, the corporate group is represented by the controlling area.

The transfer prices from the group view result from a group cost estimate.

? In the profit center view, transfer prices are the prices negotiated by the managers or other criteria.

? The legal view is the viewpoint of the individual company, represented by the company code. Thetransfer prices for this view are the sales and purchase prices.

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Parallel Valuation Approaches – Example (I)

ProductionOrder

SalesOrder

Cost Center

ProductionOrder

Semifinished

Products

Raw

Material

OutboundDelivery

Warehouse

Finished

Products

? We will use a multistage production process to demonstrate how parallel value flows are updated

throughout the system.

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Assumed Plan = Actual => No Variances

ProductionOrder

SalesOrder

Cost Center

ProductionOrder

Semifinished

Product

Raw

Material

OutboundDelivery

Warehouse

Finished

Product

Company Code 3

Parallel Valuation Approaches - Example (II)

Company Code 2

PrCtr3

120

CCtr 20

L 120

G 90P 140

L 120

G 90P 140

100

Company Code 1

PrCtr1 PrCtr2

75

L 70

G 70P 75

L 70

G 70P 70

PrCtr4

L 220

G 90P 240

220

240

L 70

G 70

P 70

? The example corporate structure shown above will demonstrate the use of parallel valuation approaches

for a multistage production process.

? From the viewpoint of the profit centers involved, the goods transfer from profit center 1 to profit center

2 appears as a sale valuated with a special price 75 defined in PCA.

? The goods withdrawal from profit center 2 for an order in profit center 3 is a sale from both the profitcenter viewpoint and the legal viewpoint, and is valuated separately using the appropriate PCA price

and legal price. The same is true for the stock transfer from the finished goods warehouse to theoutbound delivery warehouse.

? For cross-company code transfers between profit centers, you currently need to define the prices for

both the legal and the profit center viewpoints in SD.

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Profit Center 1 Profit Center 2

PCA

Transfer Price150

Quantity Flow

Parallel Value Flow

120

MaterialProductionOrder

Logistics

FI/CO

Transfer Price150

Transfer Prices in Profit Center Accounting (1)

? If you choose to use profit center valuation in PCA, you can define transfer prices for goods movements

between profit centers.

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0001 C- - -

5.5%

Plant Product Group TP Markup

0001 A X2000002 B X300- - -

1200 EUR1300 EUR

Plant Material Rec.PrCtr Transfer Price

0001 A0001 B

TP MarkupPlant Material

5%6.25%

Flexible Transfer Pricing

? If your organization decides to use transfer prices in the profit center viewpoint, you can calculate

special moving average prices for all goods movements between profit centers.

? This transfer price is a negotiated price between profit centers. It may be based, for example, on the

external market price, or it may be determined as a markup on the cost of goods manufactured as seenfrom the group view or legal view. These markups can depend on a number of factors, such as the profitcenters involved, the product, plant, date, and so on.

? But it would most likely be too much work to store a transfer price for each individual material. To savetime, you can group materials under one representative material, and only maintain the transfer price forthis material. This technique makes it possible to maintain transfer prices on the basis of an ABC

analysis, assigning the A parts an explicit market price or markup and allocating all C parts usingacross-the-board markups at product group level.

? You define transfer prices for Profit Center Accounting using the pricing function from the Sales andDistribution (SD) application component.

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Transfer Prices in Profit Center Accounting (2)

Profit Center 1 Profit Center 2

PCA

Quantity Flow

Parallel Value Flow

120

MaterialProductionOrder

Logistics

FI/CO

MaterialConsumption 150.00

Internal Revenue:- 150

Cost of Sales + 120.00Inventory - 120.00

? Based on a transfer price set at 150.00, the sender profit center records an internal revenue in this

amount. This is set off against the "cost of sales", which is calculated based on the internal change instock. The receiver profit center records an expense of the same amount. The corresponding accounts

have to be maintained in Customizing for Profit Center Accounting.

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Transfer Prices: Unit Summary

You are now able to:

? explain the transfer pricing concept

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Contents:? Planning Overview

? Planning Configuration

? Integrated Planning

? Planning Process

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Profit Center Planning: Objectives


? understand Profit Center Planning integrationin the R/3 System

? perform Manual Planning in Profit CenterAccounting

? describe the use of plan versions

?

copy existing data

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Actual Data

Master Data

Information

System

Transfer Prices


Profitability

Management

Profit Center Planning: Course Overview Diagram

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Profit Center Planning: Business Scenario

? Revenue and selected balance sheet items areplanned at profit center level

? Sales and cost plans are transferred fromProfitability Analysis and Cost Center Accountingto Profit Center Accounting

? Planned overhead expenses are allocated withinProfit Center Accounting

? You have already completed your cost center planning in Overhead Cost Controlling. Now it is time to

plan revenues for your two manufacturing and distribution facilities. Each facility manager isresponsible for planning his or her own revenues, expenses and those assets which are directly related to

the facilities. In addition, planned corporate overhead (planned secondary cost allocation) is allocated inthe group.

? Overhead costs for the facilities are planned at the relevant cost center. You want to utilize the R/3 plan

integration feature to automatically post these costs to the appropriate profit center.

? Overhead costs are planned in a corporate cost center, which is assigned to an allocation profit center.For planning purposes the costs are allocated to each facility based on square footage.

? Revenues for each of the locations is expected to increase by 5% in comparison to the previous year.For this purpose, the revenue figures from the previous year are copied over.

? Some key assets are to be planned manually by each facility manager.

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? Planning Overview

Topic:

Profit Center Planning: Topic I

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Planning in Profit Center Accounting

Sales PlanningRevenue Planning

Sales & ProfitPlanning

COCO--PAPA

AssetsInventory

RevenueCOGS

AdminR & D

ProjectPlanning

COCO-- PSPS

Prelim. PlanningProgram Planning

PPPP

Primary Cost Planning

Secondary Cost PlanningActivity Type Planning

Primary Cost PlanningSecondary Cost Planning

Process Planning

COCO--ABCABC

ECEC--PCAPCA

COCO--OMOM

? To make it possible to control and analyze internal areas of responsibility effectively, you should limit profit center planning to those values which can be influenced directly by the profit centers. Since the

concrete organizational structure and scope of your company's responsibility areas depends largely onindividual factors, it is necessary to create as flexible and multi-dimensional a plan as possible

? Profit center planning is an integral part of your overall company planning. The integral character of

business planning is particularly apparent within the context of Profit Center Accounting, as the planning data used here is largely created in other applications (such as Cost Center Accounting) andcan be supplemented or changed in Profit Center Accounting. Profit center planning is part of short-

term business planning and thus encompasses a span of one fiscal year. Short-term business planninggenerally consists of the following partial plans:

?Sales plan

?Revenue plan

?Production plan

?Cost plan

? During the profit center planning process, these individual planning areas are combined into anintegrated planning network. You can use various plan versions in order to depict various planningscenarios.

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Final

Plan

Plan Data Transfer

PlanAllocations

Manual Entry

Copy existing data

New Plan

Upload from Excel

Planning Methods in PCA

? Profit center planning is a process that is handled differently in almost every company. Industry-specific

characteristics, unique organizational structures and responsibilities mean that you have to individuallytailor the planning process for your particular company.

? The planning process is not a one-time activity, but rather an iterative process, which is usually performed in several steps. You need to pay special attention to the sequence in which the planningactivities are carried out, and which planning areas need to be coordinated with one another.

? The overall planning process is therefore supported by a number of different planning methods. Profitcenter planning offers you the following methods of planning:

?copying existing plan or actual data to a plan

? posting plan data by period or simultaneously by transaction from other applications

?manual planning of profit centers?distribution and assessment of data between profit centers

?various plan reports for comparison of different plan versions

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? Planning Configuration

Topic:

Profit Center Planning: Topic II

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Settings for PCAGeneral Version Definition

Version

Plan

Actual

00 Version Locked

Line Items

Online Data Transfer

Exchange Rate

Fiscal Year-DependentParameters in CO-OM

Integrated Planning

MM

Plan Versions

? The plan data in Profit Center Accounting is stored in different plan versions. This makes it possible to

store various plan data in parallel for the same profit center. For example, you can make a distinction between an operational plan and a strategic plan, or between an optimistic plan and a pessimistic plan.

You can display different plan versions as well as actual version in the planning transaction, and usethis data to calculate new plan data. You can also analyze and compare your plan versions in theinformation system (Reporting).

? If you want to transfer plan data from other components of the R/3 System, such as Cost CenterAccounting, you need to maintain the proper control parameters for Profit Center Accounting.

? A plan version is always valid for all of the CO Module. When you define a plan version, you also have

to maintain specific parameters for the applications in which you want to use it. If the "version locked"flag is active, the plan version is locked and cannot be changed. This makes it possible for you to

protect a plan against changes when you have finished maintaining it. The "online data transfer"

indicator controls whether the plan data should be transferred automatically in Profit Center Accounting by activity. If the indicator is not active, you need to transfer the postings by fiscal year . The "lineitems" indicator controls whether plan line items are updated. The line item documents record every

change made to a plan. You also need to specify an exchange rate type to determine which rate thesystem should use to translate the plan data manually entered in that version.

? The exchange rate type is only relevant for plan data, which is manually entered.

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AccountName

Distr.

Key

Domestic Revenue

Foreign RevenueCost of Sales

Net Profit

AccountNumber

800000

810000893015

?

Value in LocalCurrency

Text

Avail.

Define Planning Layouts

Period: 1 - 12 Year: 2000Version: 0 Company Code: 1200 Profit Center: 1100

You have two basic options for defining the lead column(s):

? You can define each row separately. You choose, for example, the characteristic account and enter * to

choose all of its values or XYZ for a specific value. You can also choose a value field to place the valuefields in rows.

? You can define the whole lead column by not selecting any characteristic value (*). The user will be presented with a blank row and can enter specific characteristic values. This option also makes it possible for you to define more than one lead column.

? Value columns are defined using key figure, such as profit center currency or local currency. Youdecide whether you want the value fields to appear in the rows or in the columns when you define the

first element of the layout. Once made, this setting cannot be reversed. When you define a value field ina row or column, you can also specify characteristics to limit the value field.

You can choose from among the following attributes:- Distribution key to distribute the aggregated values to periods

- Units for the value field (either a currency or a unit)

? In addition to the planning columns, you can also define formula columns and formula rows. Forexample, you can have the system calculate the contribution margin in a formula row or column.

? General data selection: Here you specify settings which are valid for the entire planning layout. In alayout for cost and revenue planning, you choose the characteristics such as "version", "period", "fiscalyear" and "profit center" in the general data selections.

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Account Plan 1 Plan 2 Variance

800000810000

Distribution Key 11

Document Type P0P0

Profile

SAP801

Layout 8A-111

Layout 8A-112Account Actual Plan

800000810000

Layout 8A-113

Funct. Area Account# Pft. Ctr. Currency

Planning Profile

? Planner profiles are used to control the planning process. They are structured hierarchically. In a

planner profile, you specify which planning layout will be used for each planning area (balance sheetaccounts, costs/revenues or statistical key figures). You can only plan using planning layouts if you

work with a planner profile. A planner profile contains a number of defaults (parameters) for manual planning. These structures are:

?the planning layout(s)

?default values for the distribution key

?the planning document type

?defaults for the variables in the planning layouts

? When you enter planning data, the system asks you to specify values for all the variables defined in the

selected planning layout. When you enter planning data, the system asks you to specify values for allthe variables defined in the selected planning layout. Of course, you can also overwrite these defaults,

provided that they have not been locked.

? By assigning an authorization group to a planner profile, you can control what objects your users areauthorized to process. This is particularly important in the case of decentralized planning scenarios. If

necessary, define an individual planner profile for each planner, and assign the profile to anauthorization group. This allows you to assure that each planner can only plan in the area for whichhe/she is authorized to do so.

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? Integrated Planning

Topic:

Profit Center Planning: Topic III

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Sales 100,000

Discounts 5,000Cost of Sales 50,000

Marketing Expenses 10,000Admin. Expenses 15,000Number of Sales Orders 1,000

Profit Center PlanProfit Center Plan

MRP

CostCenter

Profitability Analysis

SOP

St

t

Business

Process

ProjectsNetworks

Plan Integration in Profit Center Accounting

InternalOrder

Internal

Order

? Profit center planning is a part of short-term business planning and thus encompasses a span of one

fiscal year. Short-term business planning generally consists of the following partial plans:

?Sales plan

?Master production schedule

?Cost plan

?Revenue plan

? Sales Plan: The starting point for short-term planning is the sales plan, in which you determine thequantities you expect to sell during the planning period. The sales plan is usually created by the salesdepartment. The planned sales quantities are then passed on to production planning so that the planned

capacities and activities can be coordinated. Master Production Plan: The master production plan is

worked out in close coordination with the sales plan. It determines both the capacities and the quantityrequirements for raw materials and operating supplies. The planned activities established here are

forwarded to the cost centers, which must supply these capacities in the form of activity units.Furthermore, the cost center managers must plan the costs to be incurred and the activity inputs to betaken from other cost centers based on the planned capacities and activities. Cost Plan (Cost Center

Plan) Once the activity units have been planned, it is necessary to plan the costs expected for theseactivities. Sales and Profit Plan: The planned costs and sales quantities can then be used to derived

planned contribution margins. The costs from cost center planning and the planned sales quantities

(valuated based on the expected revenue) are used in sales revenue planning.

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Internal Order Internal Order

Plan Profit Center

Revenue 100,000.00Marketing 50,000.00

Administration 10,000.00…

…

Cost Center

ProjectsNetworks

St

t SOP / MRP

ProfitabilityCosting

On-line Plan Data Transfer

AND/ORSubsequent Posting

Subsequent Posting

Business

Process

Plan Data Transfer

? It is possible to transfer plan data in realtime from CO objects (such as cost centers, business processes,

internal orders and projects/networks) to Profit Center Accounting for each R/3 activity. If you do nottransfer plan data for CO objects to Profit Center Accounting online, you can post this data en bloc, for

single objects or for a single plan version and fiscal year.

? If you are not working with line items, you always have to post all the objects of the selected type whenyou repeat the transfer. You can post the following objects: cost centers, internal orders, projects,

business processes, networks, general cost objects, profitability segments, SOP orders, MRP orders, realestate objects.

? Planned overhead (planned primary costs, results analysis, distribution, planned secondary costs,

assessment, and so on) is posted to profit centers via the assignment of cost centers and internal orders.For make-to-order production using the R/3 Projects System, you can transfer the plan data from WBSelements or from networks. Profitability analysis lets you transfer revenues from revenue planning. It is

possible to transfer planned values and quantities periodically from costing-based Profitability Analysis(CO-PA) to Profit Center Accounting. (Previously it was only possible to post plan data subsequentlyfrom account-based CO-PA.)

? SOP orders and MRP orders are account assignment objects in sales and production planning. Their purpose is to provide a rough plan of the production activities required to realize the planned sales. The production plan for product groups is divided among the individual products, which are assigned to

profit centers.

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? Planning Process

Topic:

Profit Center Planning: Topic VI

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Planning Layout

Lead Columns Value Columns Attributes

Header – General Data Selection

Manual Planning - Planning Layouts

? You can use special screen layouts - so-called "planning layouts" - to enter costs, revenues, balance

sheet values, and statistical key figures manually. You can use the standard planning layouts in the R/3System or define your own layouts.

? The use of planning layouts for defining planning screens has the following advantages:

?You can define more than one lead column.

?Flexible value columns let you:

Plan more than one column

Plan quarters, half years, or years

Centralize or decentralize your planning

Plan in different currencies?You can define formulas in individual columns.

? You define your planning layouts in Customizing.

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Integration of Microsoft Excel

Excel integration for:

1. Actual Data as Proposal2. Offline Planing

3. Upload from Excel

? The integration of Microsoft Excel into profit planning means that you can use Excel functions such as

those for additional calculations, graphics and printing, while the R/3 System ensures the consistency ofthe data centrally, providing central functions such as derivation and valuation.

? To perform local planning, you can save Excel sheets that have been created in a R/3 system locally ona PC or laptop and then work on them in Excel outside the R/3 environment. The data can then beloaded back into the R/3 System afterwards using the upload function.

? Integrated Excel is based on the principle that you link cells in the SAP planning layouts with the cellsin the Excel sheet by defining an Excel template in Customizing.

? This involves a number of special features, which are explained in the following slides and notes.

For more information, see the explanatory notes in the documentation.

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Formula Planning

Forms for CalculatingCost/Revenues

StocksStatistical Key Figures

Actual Data1

Assignment to Profit Centers2

Determine and PostPlan Data

3

Plan Data

Profit Center

Template

? The formula planning supports the manual planning. The formula planning allows you to utilize

mathematical dependencies to plan costs/revenues, balance sheet accounts, and statistical key figuresfor your profit centers. You can define the mathematical relationships in the form of formulas in

templates that are independent of the profit centers. This way you can use the same formulas over andover for different profit centers.

? You can plan costs/revenues, balance sheet accounts, and statistical key figures. You can use whatever

plan or actual data available to calculate these.

? You create a template and assign the required profit centers to it in the master data maintenance.

? A template is evaluated for a profit center or a profit center group by company code.

? The SAP R/3 System applies the formulas defined in the template and uses these to calculate therequired values. Each individual row in the created template is calculated for the corresponding profit

center. The system creates a planning record for the cost element/revenue element, the balance sheetitem, or the statistical key figures on the corresponding profit center.

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Template

Formula Planning – Template Definition

Example: You want to calculate revenues for profit centers based on the

number of employees and an entered average revenue peremployee.

Type Object Plan Amount Plan Quantity Activation

P&L Account 800000 Formula ACTIVE

Stat. Key FigureNumber of employees

XAverage revenueper employee

? You can create templates for the formula planning of profit centers in the PCA environment.

? In the application menu of Profit Center Accounting, choose Master Data / Profit Center / Individual Processing / Change. In the initial screen, select the profit center to which you want to assign a

template. You can also use collective processing to assign templates in the profit center master record.

? Enter the name of the template you want to use for the planning on the profit center in the Template field of the Indicators tab page. All templates created in the PCA environment can be used.

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Plan

Actual

Plan

Revaluation + 10%Source Data

Target Data

10,000

10,000

11,000

Copy Plan

? This function lets you copy existing transaction data as a template for a new plan. For example, it might

be useful to use the actual values of the current year as a basis for you plan for the coming year. Theonly things you need to specify are the source and target data parameters.

? You can revaluate the selected source data, both in terms of amounts and quantities, when you copy it toyour plan. To do so, enter revaluation factors in the fields provided. If the available entry possibilitiesare insufficient, you can define a user exit to revaluate the data according to your needs. If you specify

revaluation, you can correct the values by adding or subtracting a certain percentage. For example, youcan create a plan for 1999 by copying the 1998 actual data and adding 5%. To do this, you need to entera revaluation factor which calls for a 5% increase.

? You also need to specify whether the system should overwrite existing data in the target plan, orwhether it should be added to the data you copy.

? Source plan data: Here you enter the record type, company code, and fiscal year you want to plan.Specify the plan version from which you want to copy the data, if copying plan data. With this recordtype, you specify whether you are copying plan or actual values.

? Target data: Enter the record type, company code and fiscal year to which you want to copy the data,

and specify the plan version.

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Profit Center Sales Admin

Profit Center Sales Admin



Profit Center

Motorcycles

Plan Allocations

Plan AllocationsBusinessBusiness

ProcessProcess

ECEC--PCAPCA

? The assessment and the distribution function is the same for actual and for plan data (see Unit 4)

? Plan closing consists of the following functions:

? plan assessment

? plan distribution.

? You start plan assessment or plan distribution when you have finished planning completely. Thetransfer of all planned values from other CO applications which are to be transferred to Profit Center

Accounting must be complete, as must direct planning in Profit Center Accounting.

? The allocation functions "assessment" and "distribution" let you transfer plan or actual transactions(revenues, costs, balance sheet items) from one profit center to other profit centers.

? In Profit Center Accounting, you can only allocate data within one company code. In addition, each

assessment or distribution cycle must be assigned to one company code only.

? Transaction data is always assessed with one assessment cost element. During distribution, both credit

and debit postings are made to the same account. You can use other posted values, quantities orstatistical key figures as a basis for allocations in Profit Center Accounting.

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Exercises

Unit: Profit Center Planning

Topic: Planning Configuration


? analyze the version settings for the component EC-PCA.

? define planning layouts and planner profiles.

The overall business planning of the R/3 System is to be transferred toProfit Center Accounting in order to keep the time and effort required toenter planning data to a minimum. You want to inform the planning /

organization manager of how easily planning can be handled in theversion concept. In addition, you will demonstrate the organizational

structure of planning using the tools planning layout and planner profile.

1-1 Check the version settings for planning in EC-PCA.

1-1-1 Check version 0 to see whether the online transfer is set in the Profit CenterAccounting settings. Also find out whether plan line items are written.

____________________________________________________________

____________________________________________________________

____________________________________________________________

1-1-2 Check version 610 to see whether the online transfer is set in the Profit Center

Accounting settings. Also find out whether plan line items are written.

____________________________________________________________

____________________________________________________________

____________________________________________________________

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1-2 The number of team members is entered using a statistical key figure directly on the

profit centers to be planned. In the following tasks define the appropriate data entrylayout and planner profile.

1-2-1 The data entry layout STAT## for the number of team members should look asfollows.

The header data shows the following values

Field Name Values

Fiscal Year Variable entry

Period Variable entry From To

Company Code Variable entry

Version Variable entry

Statistical Key Figure Variable entry

The headers of the data entry columns are arranged in this sequence.

Profit Center Profit Center Description Quantity Unit

###### #################### #### ##

Define planning layout STAT## for statistical key figures. The characteristicProfit Center defines the lead column. When accessing the planning layout,

you should be able to select both individual profit centers and also profit center

groups. The display should show both the key and also the characteristicdescription. The Unit column shows the unit of measure of each of thestatistical key figures have been entered.The characteristics for the header data are entered in the general selections.

The user should be able to enter all variables of the characteristics of theheader data. Save the planning layout.

1-2-2 Create a planner profile AC610-## Planner profile AC610 Group ##. This planner profile allows the entry of costs/revenues and statistical key figures

with document type P0. The standard layout 8A-101 should be used for costand revenue planning. To enter the statistical key figures, use the layout

created in task 1-2-1. Save the planner profile.

1-2-3 To test your definitions, set planner profile AC610-## and then call layout

STAT## for entering statistical key figures in the planning of Profit CenterAccounting. Do not enter any data yet.

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Topic: Integrated Planning

On completion of these exercises, you will be able to? transfer planning data from the cost center planning online and post it

subsequently specific to the version.

In cost center planning there are two plan scenarios which are posted in

different versions. Planning in version 0 is very advanced so that allchanges to the planning data should be immediately visible in Profit

Center Accounting.Version 610 is still in the rough planning stage. After this rough stage of planning has been completed, the planning data should be transferred

from Cost Center Accounting to Profit Center Accounting.

2-1 Look at the results of tasks 1-1-1 and 1-1-2 again.

2-1-1 In which version is planning data transferred online and in which version is itnot transferred?

Version 0: ________________________________________________

Version 610: ________________________________________________

2-1-2 In the information system for Profit Center Accounting, call the list-orientatedreport Profit Center Group: Plan/Plan/Variance with the following parameters:

Field Name Values



Period 1 – 12

Plan Version (1) 0

Plan Version (2) 610

Profit Center GR##

Profit and Loss Accounts Group 3000000.INT

Balance Sheet Account Group 1000000.INT

What do you discover?

____________________________________________________________

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2-2 Enter planning data in the cost planning of Cost Center Accounting in version 0.

2-2-1 First set planner profile SAPALL.

2-2-2 Enter primary costs for cost center T91##.

For this, use layout 1-101. Access the entry screen with the following data:

Field Name Values

Version 0

Period 1 – 12


Cost Center T91##

Cost Element From 410000

Cost Element To 430000

Enter the following primary costs in the layout.

Cost Element Plan Fixed Costs

415000 36,000

430000 180,000

Save the data.


Field Name Values



Period 1 – 12

Plan Version (1) 0


Profit Center GR##




____________________________________________________________

____________________________________________________________

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2-3 Enter planning data in the cost planning of Cost Center Accounting in Version 610.

2-3-1 Enter primary costs for cost center T92##.For this, use layout 1-101. Access the entry screen with the following data:

Field Name Values

Version 610

Period 1 – 12


Cost Center T92##




Cost Element Fixed Planned Costs

410000 12,000

430000 120,000

Save the data.


Field Name ValuesControlling Area 1000


Period 1 – 12

Plan Version (1) 0


Profit Center GR##




____________________________________________________________

____________________________________________________________

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2-4 After the rough planning of version 610 has been completed, the values are transferred


2-4-1 In the planning menu of profit center planning, start the planning data transferfor cost center T92## in version 610 for the current fiscal year in update mode.Existing data should be deleted. Display the log.

Which data was transferred?

____________________________________________________________

____________________________________________________________

____________________________________________________________

2-4-2 In the information system for Profit Center Accounting, call the list-orientated

report Profit Center Group: Plan/Plan/Variance with the following parameters:

Field Name Values



Period 1 – 12

Plan Version (1) 0


Profit Center GR##Profit and Loss Accounts Group 3000000.INT



__________________________________________________________

__________________________________________________________

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Topic: Planning Process

On completion of these exercises, you will be able to? enter manual revenues and costs and also statistical key figures at

profit center level.

? Define and execute formula planning in Profit Center Accounting.

In planning, the number of team members is entered directly at the levelof the profit center using statistical key figures.

Manually entered planning data for the cost and revenue planning is alsoincluded in Profit Center Accounting in addition to the planning data

already transferred from Cost Center Accounting.

Revenue planning is automated using formula planning. The revenueshould be posted as an approximate value as the planned revenue per

team member multiplied by the number of team members.

The resulting plan scenario should also be used in the parallel planscenario.

3-1 Enter the number of team members at profit center level.

3-1-1 Set the planner profile AC610-## in profit center planning.

3-1-2 Enter the number of team members for profit centers 91## and 92##. Use thefollowing parameters for accessing layout STAT##:

Field Name Values

Version 0

Period 1 – 12


Company Code 1000

Profit Center Group PLAN##Statistical key fig. 9100

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Enter the following data in layout STAT##.

Profit Center Quantity

91## 100

92## 25

Save the data by choosing the Update Run icon.

3-1-3 In the information system for Profit Center Accounting, call the list-orientatedreport Profit Center: Statistical Key Figures with the following parameters.

Field Name Values



Period 1 – 12

Plan Version 0

Profit Center Value 91##

Statistical Key Figure Value 9100

How many team members are assigned in the plan to profit center 91##?

____________________________________________________________

3-1-4 Repeat the report call for the report from task 3-1-3 for profit center 92##.


____________________________________________________________

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3-2 The costs of goods sold are planned directly manually at the level of profit center sales

91##.

3-2-1 Enter the costs of goods sold under cost element 893015 manually in cost

planning. Use layout 8A-101 with the following parameters.

Field Name ValuesVersion 0

Period 1 – 12


Company Code 1000

Profit Center 91##

Account Number 893015

Enter the costs of goods sold.

Profit Center In Profit Center Currency

91## 4,800,000


3-2-2 In the information system for Profit Center Accounting, call the report ProfitCenter Group: Plan/Actual/Variance by Origin with the following parameters.

Field Name Values



Period 1 – 12

Plan Version 0




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Each posting in Profit Center Accounting is differentiated by originobjects (e.g. Profit Center, Cost Center and so on) both in the actual

and also in the plan at totals record level. This makes it possible todisplay the costs and revenues by origin object in the informationsystem. The characteristic Origin Object is also available in the

definition of planning layouts. Hence it is also possible, for example,

to enter planned revenues according to billing data (origin object 5).

Which origin object returns the planned costs for cost element 893015?

____________________________________________________________

____________________________________________________________

Which origin object returns the planned costs for cost elements 415000 and

430000?

____________________________________________________________

____________________________________________________________

Why was the planning data posted when there were different origin objects?

____________________________________________________________

____________________________________________________________

____________________________________________________________

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3-3 Revenue planning in the company is not only carried out manually, but is to be

automated using formula planning. The planning/organization manager wants only anaverage revenue per team member to be entered manually on a reference profit center,

which is then updated to the individual profit centers with the formula planning.

3-3-1 Set planner profile SAP801 in Profit Center Accounting.

3-3-2 Management expects a revenue of 120,000 per team member in order to meetthe business targets. Enter this value on profit center 93## Planning. Uselayout 8A-111 with the following parameters:

Field Name Values

Version 0

Period 1 – 12


Company Code 1000

Profit Center 93## Planning


Enter the planned average revenue per team member.

Note that revenues must be entered with a negative sign.

Account Number In Profit Center Currency

800000 -120,000

Save the data the data by choosing the Update Run icon.

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3-3-3 Define template SALES## in the PCA environment in order to calculate the planned revenues on profit centers 91## and 92##.

The number of team members in the plan has been saved with the

statistical key figure 9100 for profit center 91## and 92##. The planned average revenue can be found on profit center 93## under

cost element 800000. The planned revenue for 91## or 92## iscalculated by multiplying the average revenue from 93## by thenumber of team members for 91## or 92##. This relationship is

defined in a template, which must be defined in the master record ofthe profit center to be planned before formula planning is executed.

After you have accessed the template definition, enter "Revenue Planning" asthe name of the template.

Enter a formula line with the following parameters:

Field Name Values

Type P&L Account

Object 800000

Go to the formula editor by double-clicking on the Plan Amount Per Periodfield.

In the formula editor you can enter mathematical relationships

freely. To make accessing SAP data simpler, you can use functionswhich map predefined accesses that only require parameters to

specify the access data.

To define the revenue formula, you need the two functions"CostsRevenuesInventories" and "QtyStatKeyFigure".

"CostsRevenuesInventories" returns the planning data of a profitcenter.

"QtyStatKeyFigure" returns the quantity of a statistical key figure ofa profit center.

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Call CostsRevenuesInventories function and assign the following parameters:

Field Name Values

Company_Code 1000

Plan_Actual_Indicator 1

Profit_Center 93##

Account_No 800000

Version 0

Fiscal_Year Enter the current fiscal year

Check the function by choosing the Check icon and confirm by choosing the

Continue icon.

In the formula editor you can then see the expression for the

"CostsRevenuesInventories" function which returns the average revenue of profit center 93##.

Then add the multiplication sign. Don't forget the blank character.

Next, insert the "QtyStatKeyFigure" function with the following parameters:

Field Name Values

Company Code 1000

1. (Periodic Calc. of Values),

2. (Total Fisc Year)

1

0: Actual, 1: Plan 1

Profit Center Enter the text

“ProfitCenter”

Statistical key fig. 9100

Version 0


Check the function by choosing the Check icon and confirm by choosing theContinue icon.

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In the formula editor you can now see the complete formula whichmultiplies two function values. The first function returns the planned

revenues of profit center 93##, whereas the second function returnsthe quantity of the statistical key figure 9100. The function takes thequantity of the statistical key figure from the respective profit center

in whose master record the template is defined.

Confirm the formula in the editor.Save the SALES## template.

3-3-4 Assign template SALES## to the master records of profit center 91## and92##.

3-3-5 In the information system for Profit Center Accounting, call the report ProfitCenter Group: Plan/Actual/Variance with the following parameters:

Field Name Values



Period 1 – 12

Plan Version 0

Profit Center Group PLAN##



Display cost element 800000. Which planning data has been posted to profitcenter 91## and profit center 92##?

____________________________________________________________

____________________________________________________________

3-3-6 Execute the formula planning in company code 1000 for the profit centergroup PLAN## in all the periods of the current fiscal year in version 0 inupdate mode.

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3-3-7 Call the report from task 3-3-5 again and check cost element 800000 for profitcenters 91## and 92##.

Which values were posted?

91##: _______________________________________________________

92##: _______________________________________________________

Explain how each of these values comes about.

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

3-4 The planning data of profit center 91## should be used as a template for planning inversion 610.

3-4-1 First call the list-orientated report Profit Center Group: Plan/Plan/Variance


Field Name Values

Controlling Area 1000Fiscal Year Current fiscal year

Period 1 – 12

Plan Version (1) 0





How much is the plan total in version 0?

____________________________________________________________


____________________________________________________________

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3-4-2 Copy the planned costs and revenues of profit center 91## from version 0 toversion 610. Restrict the selection to all periods of the current fiscal year in

company code 1000. The copied data should replace existing data and beincreased by 2%.In the selection criteria, restrict the accounts to be copied to account group

3000000.INT.

3-4-3 Call the report from task 3-4-1 again and check the plan total for profit center91## in version 0 and version 610.


____________________________________________________________


____________________________________________________________

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Solutions


Topic: Planning Configuration

1-1 Check the version settings for planning in EC-PCA.


ORK2: Profit Center Accounting ? Planning ? Basic Settings for

Planning ? Plan Versions ? Maintain Plan Versions

Select version 0.In the dialog structure, double-click on Settings for Prof it-Center-Profi t

Center Accounting .

Both the online transfer and also the writing of plan line items areactivated in the current fiscal year.


ORK2: Profit Center Accounting ? Planning ? Basic Settings for

Planning?

Plan Versions?

Maintain Plan Versions

Select version 610.

In the dialog structure, double-click on Settings for Prof it-Center-Profi t

Center Accounting .The online transfer is not activated in the current fiscal year. Writing plan

line items, on the other hand, is activated.

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1-2 The number of team members is entered using a statistical key figure directly on the

profit centers to be planned. In the following tasks define the appropriate data entrylayout and planner profile.

1-2-1 The data entry layout STAT## for the number of team members should look asfollows.

ORK2: Profit Center Accounting ? Planning ? Manual Planning ? Planning Layout ? Maintain Planning Layout for Statistical Key Figures

Choose Create planning layout for statistical key figures

Enter STAT## Nbr. of team members

Click on the Create pushbutton

You are in the Report Painter view for defining planning layouts.

Choose Edit / Gen. data selection / Gen. data selectionSelect the following characteristics and transfer these to the selected

characteristics

Field Name Values

Fiscal Year Variable entry

Period Variable entry From To

Company Code Variable entry

Version Variable entry

Statistical Key Figure Variable entry

Set the variable on/off indicator for each characteristic. Make sure for the

characteristic Period that the indicator is also set for the To column.

Click the Confirm pushbutton.

The headers of the data entry columns are to be arranged in this sequence.

Profit Center Profit Center Description Quantity Unit

###### #################### #### ##

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Define planning layout STAT## for statistical key figures. The characteristicProfit Center defines the lead column. When accessing the planning layout,

you should be able to select both individual profit centers and profit centergroups. The display should show both the key and the characteristicdescription. The Unit column shows the unit of measure of each of the

statistical key figures have been entered.

The characteristics for the header data are entered in the general selections.The user should be able to enter all variables of the characteristics of theheader data. Save the planning layout.

Double-click on the column header Lead column .

Transfer the characteristic Profit Center to the selected characteristics.

Set the SET on/off indicator and the Vari able on/off indicator . This allowsthe variable entry of profit center groups when accessing the layout.

Click the Lead column pushbutton.

Select Characteristic value and Name and confirm by pressing enter.Click the Confirm pushbutton in order to exit the definition of the lead

column.

Double-click on the Column 1 column header.

Select the key figure Quantity .

Click the Change shor t, middle and long texts icon

Enter Quantity as the short text.Click the Copy shor t text pushbutton and confirm.

Click the Confirm pushbutton in order to exit the column definition.

Position the cursor after the Quantity column.

Choose Edit / Element / Insert element.

Select attribute.

Choose unit.

Click the Confirm pushbutton in order to close the column definition.

Save the planning layout.

1-2-2 Create a planner profile AC610-## Planner profile AC610 Group ##. This

planner profile allows the entry of costs/revenues and statistical key figureswith document type P0. The standard layout 8A-101 should be used for costand revenue planning. To enter the statistical key figures, use the layout

created in task 1-2-1. Save the planner profile.

ORK2: Profit Center Accounting ? Planning ? Manual Planning ?

Define Planner Profiles

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Choose EC-PCA Maintain planner profile

Click the New entr ies pushbutton.

Profile: AC610-##

Description: Planner profile AC610 Group ##

Confirm by pressimg enter.

Select AC610-##.

In the dialog structure, double-click on Profit Center Accounting.Click the New entr ies pushbutton.

For the first row:

Select costs/revenues in the planning area column.

For the second row

Select statistical key figures in the planning area column.Select P0 in the document type column.


Select planning area costs/revenues.In the dialog structure, double-click on Layouts for Prof it Center

Accounting .

Click the New entr ies pushbutton.Select layout 8A-101 .


In the dialog structure, double-click on Prof it Center Accounting .

Select the planning area Statistical key figures .

In the dialog structure, double-click on Layouts for Prof it Center

Accounting .Click the New entr ies pushbutton

Select layout STAT##.


Save the planner profile AC610-##.

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1-2-3 To test your definitions, set planner profile AC610-## and then call layoutSTAT## for entering statistical key figures in the planning of Profit Center

Accounting. Do not enter any data yet.

PCA: Planning ? Set Planner Profile

Enter AC610-## and confirm. This sets the planner profile.

PCA: Planning ? Statistical Key Figures ? Change


Version 0

Period 1 – 12Current fiscal year

Company Code 1000


Statistical Key Figure 9100Form-Based


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Topic: Integrated Planning

2-1 Look at the results of tasks 1-1-1 and 1-1-2 again.

2-1-1 In which version is planning data transferred online and in which version is itnot transferred?

Version 0: Online transfer

Version 610: No online transfer

2-1-2 In the information system for Profit Center Accounting, call the list-orientated

report Profit Center Group: Plan/Plan/Variance with the following parameters:


List-Orientated Reports ? Profit Center Group: Plan/Plan/Variance

Field Name Values



Period 1 – 12

Plan Version (1) 0


Profit Center GR##



Execute the report.


No planning data has been posted yet!

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2-2-1 First set planner profile SAPALL.

Accounting ? Controlling ? Cost Center Accounting ? Planning ? SetPlanner Profile

Enter planner profile SAPALL and confirm.

2-2-2 Enter primary costs for cost center T91##.

Accounting ? Controlling ? Cost Center Accounting ? Planning ?

Cost and Activity Inputs ? Change

Use layout 1-101. Access the initial screen with the following data:

Field Name Values

Version 0

Period 1 – 12


Cost Center T91##



Click the Overview screen icon.

Enter the following primary costs in the layout:


415000 36,000

430000 180,000

Post the data.

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Field Name Values



Period 1 – 12

Plan Version (1) 0


Profit Center GR##




The costs of cost center T91## were posted online to profit center 91##since the online transfer of planning data is set in version 0.


2-3-1 Enter primary costs for cost center T92##.For this use layout 1-101. Access the entry screen with the following data:

Accounting ? Controlling ? Cost Center Accounting ? Planning ?

Cost and Activity Inputs ? Change

Field Name Values

Version 610

Period 1 – 12


Cost Center T92##



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410000 12,000

430000 120,000

Post the data.




Field Name ValuesControlling Area 1000


Period 1 – 12

Plan Version (1) 0


Profit Center GR##




The planned costs of version 610 were not posted online to profit center92##.

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2-4 After the rough planning of version 610 has been completed, the values are transferred


2-4-1 In the planning menu of profit center planning, start the planning data transferfor cost center T92## in version 610 for the current fiscal year in update mode.Existing data should be deleted. Display the log.

PCA: Planning ? Plan Data Transfer ? CO Plan Data


Field Name Values

Version 610


Objects Cost Centers Activate

Cost Center T92##

Existing Data Delete

Test Run Deactivate

Click the Execute icon.Confirm the deletion message with Yes.

Which data was transferred?

In version 610, planned costs of cost elements 410000 and 430000 wereposted from cost center T92## to the assigned profit center 92##.

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2-4-2 In the information system for Profit Center Accounting, call the list-orientatedreport Profit Center Group: Plan/Plan/Variance with the following

parameters:



Field Name Values



Period 1 – 12

Plan Version (1) 0

Plan Version (2) 610Profit Center GR##



What do you discover?Profit center 91## contains posted planning data in version 0.

Profit center 92## contains posted planning data in version 610.

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Topic: Planning Process

3-1 Enter the number of team members at profit center level.

3-1-1 Set the planner profile AC610-## in profit center planning.


Enter AC610-## and confirm.

3-1-2 Enter the number of team members for profit centers 91## and 92##. Use the

following parameters for accessing layout STAT##

PCA: Planning ? Statistical Key Figures ? Change


Field Name Values

Version 0

Period 1 – 12


Company Code 1000


Statistical key fig. 9100


Enter the following data in layout STAT##.

Profit Center Quantity91## 100

92## 25


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3-1-3 In the information system for Profit Center Accounting, call the list-orientatedreport Profit Center: Statistical Key Figures with the following parameters.


List-Orientated Reports ? Profit Center: Statistical Key Figures


Field Name Values



Period 1 – 12

Plan Version 0


Statistical Key Figure Value 9100

Execute.

How many team members are assigned in the plan to profit center 91## ?

100 team members

3-1-4 Repeat the report call for the report from task 3-1-3 for profit center 92##.


25 team members

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3-2 The costs of goods sold are planned directly manually at the level of profit center sales

91##.

3-2-1 Enter the costs of goods sold under cost element 893015 manually in cost

planning. Use layout 8A-101 with the following parameters.

PCA: Planning ? Costs/Revenues ? Change


Field Name Values

Version 0

Period 1 – 12


Company Code 1000

Profit Center 91##


Enter the costs of goods sold.

Profit Center In Profit Center Currency

91## 4,800,000


3-2-2 In the information system for Profit Center Accounting, call the report ProfitCenter Group: Plan/Actual/Variance by Origin with the following parameters.


List-Orientated Reports ? Profit Center Group: Plan/Actual/Variance by

Origin


Field Name Values



Period 1 – 12Plan Version 0




Execute.

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Each posting in Profit Center Accounting is differentiated by origin

objects (e.g. Profit Center, Cost Center and so on) both in the actualand also in the plan at totals record level. This makes it possible todisplay the costs and revenues by origin object in the information

system. The characteristic Origin Object is also available in thedefinition of planning layouts. Hence it is also possible, for example,

to enter planned revenues according to billing data (origin object 5).

Which origin object returns the planned costs for cost element 893015?

The data was posted with origin object Profit Center.

Which origin object returns the planned costs for cost elements 415000 and430000?

The data was posted with origin object Cost Center.

Why was the planning data posted when there were different origin objects?

The costs of cost element 893015 Costs of goods sold were entered in ProfitCenter Accounting.

The costs of cost elements 415000 and 430000 were transferred from the

cost center planning.

3-3 Revenue planning in the company is not only carried out manually, but is to be

automated using formula planning. The planning/organization manager wants only an

average revenue per team member to be entered manually on a reference profit center,which is then updated to the individual profit centers with the formula planning.

3-3-1 Set planner profile SAP801 in Profit Center Accounting.


Enter SAP801 and confirm.

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3-3-2 Management expects a revenue of 120,000 per team member in order to meetthe business targets. Enter this value on profit center 93## Planning. Use

layout 8A-111 with the following parameters.

PCA: Planning ? Costs/Revenues ? Change


Field Name Values

Version 0

Period 1 – 12


Company Code 1000

Profit Center 93##



Enter the planned average revenue per team member.

Note that revenues must be entered with a negative sign.

Account Number In Profit Center Currency

800000 -120,000


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3-3-3 Define template SALES## in the PCA environment in order to calculate the planned revenues on profit centers 91## and 92##.

The number of team members in the plan has been saved with the

statistical key figure 9100 for profit center 91## and 92##. The planned average revenue can be found on profit center 93## under

cost element 800000. The planned revenue for 91## or 92## iscalculated by multiplying the average revenue from 93## by thenumber of team members for 91## or 92##. This relationship is

defined in a template, which must be defined in the master record ofthe profit center to be planned before formula planning is executed.

ORK2: Profit Center Accounting ? Planning ? Formula Planning ?

Maintain Templates.

Choose Create Template .


Field Name Values

Template SALES##

Environment PCA


After you have accessed the template definition, enter "Revenue Planning" asthe name of the template.

Enter a formula line with the following parameters

Field Name Values

Type P&L Account

Object 800000


Go to the formula editor by double-clicking on the plan amount per periodfield.

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In the formula editor you can enter mathematical relationshipsfreely. To make accessing SAP data simpler, you can use functions

which map predefined accesses that only require parameters tospecify the access data.

To define the revenue formula, you need the two functions

"CostsRevenuesInventories" and "QtyStatKeyFigure"."CostsRevenuesInventories" returns the planning data of a profit

center."QtyStatKeyFigure" returns the quantity of a statistical key figure ofa profit center.

Call the CostsRevenuesInventories function and assign the following

parameters:Double-click on the CostsRevenuesInventories function in the screensection Functions for Type P&L Account .

The system displays the new window Create Template PCA / Sales## .

Enter the following parameters:

Field Name Values

Company_Code 1000

Plan_Actual_Indicator 1

Profit_Center 93##

Account_No 800000

Version 0

Fiscal_Year Enter the current fiscal year

Check the function by choosing the Check icon and confirm by choosing theContinue icon.

In the formula editor you can then see the expression for the"CostsRevenuesInventories" function which returns the average revenue of

profit center 93##.Then add the multiplication sign. Don't forget the blank character.

Position the cursor after the formula in the formula editor.Insert a blank character by choosing space bar.

Click the I nsert * icon.

Insert a blank character by choosing space bar.

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Afterwards, insert the "QtyStatKeyFigure" function with the following parameters.

Double-click on the QtyStatKeyFigure function in the screen sectionFunctions for Type P&L Account .

The system displays the new window Create Template PCA / Sales##.


Field Name Values

Company Code 1000

1. (Periodic Calc. of Values),2. (Total Fisc Year)

1

0: Actual, 1: Plan 1

Profit Center Enter the text

”ProfitCenter”

Statistical Key Figure 9100

Version 0

Fiscal Year Enter the current fiscal year

In the formula editor you can now see the complete formula which

multiplies two function values. The first function returns the plannedrevenues of profit center 93##, whereas the second function returnsthe quantity of the statistical key figure 9100. The function takes the

quantity of the statistical key figure from the respective profit centerin whose master record the template is defined.

Confirm the formula in the editor.

Click the Confi rm Plan amount per period icon.

Save the SALES## template.

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3-3-4 Assign template SALES## to the master records of profit center 91## and92##.

PCA: Master Data ? Profit-Center ? Individual Processing ? Change

Enter 91## and confirm.

Click the Indicators tab page.

Enter template SALES## in the Form. Planning Temp. field.Save the master record.

Activate the master record.

Enter 92## and confirm.

Click the Indicators tab page.

Enter template SALES## in the Form. Planning Temp. field.

Save the master record.Activate the master record.

3-3-5 In the information system for Profit Center Accounting, call the report ProfitCenter Group: Plan/Plan/Variance with the following parameters




Field Name Values

Controlling Area 1000Fiscal Year Current fiscal year

Period 1 – 12

Plan Version 0




Display cost element 800000. Which planning data has been posted to profitcenter 91## and profit center 92##?

No revenues have been posted yet to profit centers 91## and 92##.

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3-3-6 Execute the formula planning in company code 1000 for the profit centergroup PLAN## in all the periods of the current fiscal year in version 0 in

update mode.

PCA: Planning ? Execute Formula Planning


Field Name Values

Company Code 1000


Version 0

Period 1 – 12


Test Run not activated

Detail Lists Activate

Execute.

3-3-7 Call the report from task 3-3-5 again and check cost element 800000 for profitcenters 91## and 92##.

Which values were posted?

91##: 12,000,000

92##: 3,000,000

Explain how each of these values comes about.

91##: 100 planned team members x 120,000 revenue

92##: 25 planned team members x 120,000 revenue

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3-4 The planning data of profit center 91## should be used as a template for planning in

version 610.

3-4-1 First call the list-orientated report Profit Center Group: Plan/Plan/Variancewith the following parameters:

PCA: Information System ? Reports for Profit Center Accounting ? List-Orientated Reports ? Profit Center Group: Plan/Plan/Variance


Field Name Values



Period 1 – 12

Plan Version (1) 0





Execute the report.


It varies depending on the postings.


It must be zero.

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3-4-2 Copy the planned costs and revenues of profit center 91## from version 0 toversion 610. Restrict the selection to all periods of the current fiscal year in

company code 1000. The copied data should replace existing data and beincreased by 2%.In the selection criteria, restrict the accounts to be copied to account group

3000000.INT.

PCA: Planning ? Copy Data to Plan


Field Name Values

Planning Area Cost/revenues

Copy From Record Type Plan

Copy From Version 0

Copy From Company Code 1000

Copy From Fiscal Year Current fiscal year

Copy To Version 610

Copy To Company Code 1000

Copy To Fiscal Year Current fiscal year

Periods 1 – 12

Revaluation Factors Currencies 1.02

Document Type R0

Click the Selection cri ter ia pushbutton.


Field Name Values

Profit Center 91##

Account Group 3000000.INT

Click the Copy data to plan icon.Skip the warning message stating that planning data already exists for

ledger 8A.

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3-4-3 Call the report from task 3-4-1 again and check the plan total for profit center91## in version 0 and version 610.

For execution, see task 3-4-1.


The amount can vary depending on the postings.


It must be 2% higher than in version 0. You can check that in the Var.

(%) column.

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Information System

Contents:

? Overview

? Data structures for Report Painter and ReportWriter reports

? Reporting with drilldown reporting

? Line item reports

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Information System: Objectives


? use the report tools used in Profit CenterAccounting

? understand the data structure in the informationsystem of Profit Center Accounting

? define drilldown reports

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Information System: Course Overview Diagram

Master Data

InformationSystem

Transfer Prices

Actual Data


Profitability

Management

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Information System: Business Scenario

?

Outline the options available for reportingPCA data.

? Report on financial key figures such as Returnon Investment, or Return on Net Assets.

? Explore the standard reports.

? Analyze plan/actual comparisons of profitcenters.

? Access the original documents.

? Your project team now has a clear understanding of the actual and plan data flow in Profit Center

Accounting. You now outline the options available for reporting PCA data. As you know, a number ofstandard reports are delivered with the R/3 system. Your team members are especially interested in

analyzing plan/actual comparisons of the profit centers they are responsible for. They want to be surethat they can view certain line items where plan/actual variances are above 15 % in detail. In additionthey would like to ‘drill down’ to the originating documents. You explain the options available with

standard reports.

? Your VP of Finance is interested in certain financial key figures, such as Return on Investment. Afterlooking at the standard reports you decide that only slight modifications are needed in order to receive

the key figures you require. Your team decides to use Report Writer and Report Painter in order toenhance the existing standard reports. You are particularly interested in the formatting, extract and

printing options in the reporting tools.

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? Overview

Topic:

Information System: Topic I

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Information System: Overview

Line Item

Reports

Drilldown

Reports

List-Oriented

Reports

Master Data

Index

StandardTotals Record

Reports

Profit

CenterReport

? You can analyze all the transaction data stored in the profit center tables using the Standard Reports or

your own Drilldown Reports and Report Painter reports. (You do this by accessing the totals recordtable GLPCT). If you store line items in Profit Center Accounting, you can call up a line item report

from the summary report and then access the original documents from their applications of origin (SD,MM, FI, CO).

? The master data index provides you with an overview of the master data in Profit Center Accounting

postings for each revenue or cost element broken down by profit center.

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Standard Reports

Interactive Reporting

Plan/Actual Variance

Current Period/Accumul. Year ComparisonReturn on Investment

Characteristics:

Profit Center (Groups)Accounts (Groups)Partner Profit Center

Company CodePlant

VersionPeriod

List-Oriented Reports

Plan/Actual Variance

Period BreakdownQuarterly BreakdownStat. Key Figures

Characteristics:

Profit Center (Groups)Accounts (Groups)Partner Profit Center

Company CodePlant

VersionPeriod

Special Reports

Line Item Reports

Open ItemsAverage Balances by

- Period

- Year Master Data IndexTotals Records

Data Transfer to EIS:- Plan Data

- Actual Data

? The standard reports and report groups are found in the libraries 8A2, 8A3 and 8A4. They can roughly

be divided into the following groups:

? The area profitability reports display the profits for the selected profit center(s). These are not broken

down into revenue and costs elements. Typical reports of this type are the plan/actual comparisons, a period breakdown or profit center Return on Investment . These reports are meant to give the user aquick overview and serve as a springboard to the other report types.

? The group reports display the profits of a profit center group broken down according to the selectedrevenue and cost elements. These reports are meant to provide the persons in charge of profit centerswith a more detailed analysis of their area of responsibility. These reports also let you use the function

Variation.In addition, some of the reports also display selected balance sheet items (fixed assets, current assets,

payables) and the return on investment calculated from that, broken down according to the selected

revenue and cost elements.

? The profit center reports contain the individual profit centers broken down and summarized accordingto a profit center group.

? Another type of report is the plan/actual according to accounts reports for Profit Center Accounting.These reports contain the postings for each account broken down by profit center.

? Alternative report currency reports contain a number of the above reports which you can execute in any

currency.

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? Data structures for Report Painter andReport Writer reports

Topic:

Information System: Topic II

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***** Account / Profit Center Plan/Actual *****

Variance (abs)

100,000 -

100,000 -

200,000 -

50,000 -50,000

100,000 -100,000 -

50,000 -

10,000

40,000 -

4,000 -

Plan

700,000

200,000

900,000

150,000-150,000-300,000-

600,000-150,000

0

150,000

15,000

Reporting period. . . .Profit Center

Profit Center-Rev/Cost Element

01 to 03/20031010 Motorcycle Production

Date 31.03.03

800000 Revenue - Domestic

810000 Revenue - Foreign

Sales Revenues

893000 Inv. Change Semi-Fin.893020 Inv. Change Raw Mat.895000 Factory Output

Inventory ChangeMaterial Consumption655100 Overhead

**

**

**

*

Actual

800,000

300,000

1,100,000

200,000-

100,000-400,000-700,000-

100,00010,000

110,000

11,000

- Accounts / Profit Center / Plan – Actual ComparisonAccounts / Profit Center / Plan – Actual Comparison

List-oriented Reports: Report Painter

? The Information System offers you the option of evaluating posted data according to various criteria.

The R/3 System contains a range of standard reports. In addition to standard reports you can also usetools, e.g. drilldown reporting, to define your own reports.

? In the information system you can evaluate posted transaction data online immediately after processingin the R/3 System and follow its origins down to the document level.

? For more extensive data selection you can execute all reports available online in the background at

predefined times or schedule them using the Schedule Manager.

? For further information on Report Painter/Report Writer refer to Appendices.

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Concepts of Report Painter:

Library

ReportReport

Reporting Group? CharacteristicsCriteria for Selection(Profit Center, Version,...)

? Key figuresValue fields of the selected

data

? Predefined key figuresCombination of key figures

and characteristics

? The Report Painter uses a graphical report structure as the basis for the report definition. This structure

consists of rows and columns and looks like the report as it will finally appear when you execute it.

? The library determines which database fields (characteristics, key figures, predefined columns) can be

used in Report Painter and Report Writer reports. All Report Painter and Report Writer reports must beassigned to a library.

? You define the report columns using the characteristics, key figures and predefined columns selected

for the library that the report uses.

? You define the report rows using the characteristics selected for the library selected for the report.

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Reporting Table GLPCT

Reporting tableGLPCT

Database tables

GLPCT GLPCA GLPCPTotals Records ACTUAL Line Items Plan Line Items

? Three database tables, GLPCT, GLPCA and GLPCP, are hidden behind reporting table GLPCT. This is

fixed in the tax tables of the Report Writer.

? Table GLPCT contains the totals records of Profit Center Accounting, whereas GLPCA comprises the

actual line items and GLPCP the plan line items.

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Access Structure of the Report Writer

Physicaltables

GLPCT

Totals RecordsCharacteristics

Key Figures

GLPCA

Actual Line ItemsGLPCP

Plan Line ItemsCharacteristicsKey Figures

Reporting table GLPCT

Report Writer

Library 8A2CharacteristicsKey Figures

8A3CharacteristicsKey Figures

? Characteristics and key figures from line item tables GLPCA and GLPCP are also available when a

library is created for reporting table GLPCT, and not just fields from totals record table GLPCT.

? Use only characteristics and key figures from totals record table GLPCT in reports. Otherwise line

items are selected which can lead to performance problems.

? Which table is actually read depends on the key figure used in the report.

? Library 8A2 contains the characteristics and key figures from the totals record table and should be

copied for in-house reports.

? Library 8A3 contains characteristics and key figures from the line item tables and should only be usedin special cases and with good reason as otherwise this can cause serious performance problems. For

example, periodically transferred values are displayed using standard reports which access thecharacteristics and key figures from the line item table via library 8A3.

? Reporting table GLPCOP contains characteristics and key figures which are required for reporting open

items and which are stored in special database tables. Library 8A4 contains these characteristics and keyfigures.

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Report / Report Interface

Report PCAPlan/ActualBy Origin

Example: Branching to cost center reports via the typeof origin object

Report/ReportInterface

Report CCAPlan/ActualVariance

Reporting Group1SIP

Library1VK

Table CCSS

Reporting Group8A2F

Library8A2

Table GLPCT

? The report/report interface lets you execute other Report Painter report groups, ABAP reports,

drilldown reports and transactions from a displayed report list.

? Once you have selected an individual cell, a line, a column or a block, you can branch directly to

another Profit Center Accounting standard report, by choosing Goto ?? Call up report . The values in theselected area of the report serve as selection criteria for the report you call up.

? Profit Center Accounting Reporting allows you to access original reports of Cost Center Accounting

when searching for the cause of certain profit dimensions. An example of this is shown on the slide.

? Note that, when branching from the profit center reports, the selected values will only be passed onautomatically as selection criteria if you call up a different profit center report or a cost center report.

Otherwise, you branch to the selection screen of the report you called up instead.

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CurrentExtract

Datasource

Extract

administration

Information System: Data Source

Archive

Report

R/3

Database

R/3

Database

? When you save reports in extracts , you have quick access to the stored data. Extracts of reports for

groups (for example, profit center groups) also support navigation within the group. If you create anextract for a group, you can use it to call up a report for each individual profit center in the group.

? You can choose to access existing extracts for a Report Painter report, which allows you to display areport (for a closed period, for example) with a significantly shorter runtime.

?You can also choose to select data from the database, which allows you to create an ad hoc report

using the latest information.

? When you use an extract to display the line items of a report row, the R/3 System automaticallyaccesses the latest records from the database.

? To create extracts, you can answer the dialog window query with Yes when leaving the completedreport. The selection parameters and the time of report creation automatically characterize the extract.

? In extract management, you determine whether and how the report call-ups access existing extracts.

? Additional note: Another alternative is to read data from the archive, using reports to display archivedinformation.

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? Reporting with drilldown reporting

Topic:

Information System: Topic III

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Net Results

PeriodFunctional Area

Origin Object

Interactive Reporting: Drilldown Reporting

Plan/Actual Variance Plan Profit Center 1000

Period 1 - 7, 1999

Account Number

800000 Revenue 1,000,000 1,200,000 20%895000 COGS 750,000 850,000 13%

420000 Salaries 100,000 110,000 10%…

Navigation

Plan Actual Variance

? Drilldown reporting allows you to analyze your data according to different characteristics and key

figures. As with the Report Painter, drilldown reporting is based on the concepts "characteristic" and"key figure":

?Characteristics are non-numeric fields. They represent the criteria according to which you can selectdata records. Examples of characteristics are "Controlling area", "Fiscal year" and"Profit center". Characteristic values are the instances of these characteristics, such as fiscal

year 1998, 1997, and so on.

?Key figures are numerical fields that you can analyze in your reports. Examples of key figures arecosts and revenues or balance sheet balances in a certain currency or activity quantities.

? You can analyze a number of key figures for a single combination of characteristic values as well assingle key figures for a number of combinations of characteristic values. A combination of

characteristic values is generally referred to as an "object" (example: profit center X, revenue/costelement 400000 in period 6).

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Profit Center Functional Area

Account

Profit Center Profit Center PlanPlan ActualActual800000 Revenues 100000 120000

810000 Discounts 5000 7000

895000 COS 60000 65000420000 Salaries 15000 16000470000 Rent 10000 10000

P l a n t

A c c o u n t

F u n c t i o

n a l

A r e a

Profit Center Functional AreaAccount

C o m p a n y

C o d e

P r o f i t C e n t e r

O r i g i n

O b j e

c t

Profit Center 1000Account

800000

Key FiguresKey FiguresPlan 100000Actual 120000

Variance 20000

Variance % 20%

Concepts of Drilldown Reporting

? Drilldown reporting lets you use the same graphical user interface as the Report Painter for defining the

basic structure of your reports. You can then apply this structure, or "form", to any number of drilldownreports.

? Drilldown reporting provides you with a number of user-friendly functions for navigating through yourreports, for example, you can switch between different list types (drilldown list/detail list), limit youranalysis to a single characteristic value, or summarize the data for all values of a characteristic.

? Characteristics determine how your data can be classified. The SAP organizational units Controllingarea, Company code, Business area, are examples of characteristics. The time reference (fiscal year,

period) is also a characteristic.

? Your application contains a number of key figures which may be relevant for analysis purposes. Keyfigures include not only stored values and quantities, but also values which are calculated from these

based on formulas which you can define. Examples of key figures:? Value: Costs, sales, sales deductions

? Quantity: Number of employees, sales quantity

? Calculated value: Sales per employee and contribution margin

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Functions in Drilldown Reporting

Graphic

Print

E-Mail

Currency Translation

Microsoft Word

Hierarchies

Other Reports

Microsoft Excel01 Retail 1,000,00002 Who les al e 2,500,000

03 Brokers 1,500,00004 Mail order 1,000,000

Profit Center

DisplayMaster Data

Attributes

Street AddressCity, State

? The functions of drilldown reporting are divided into three levels so that you can give each user only

those functions that he or she requires.

? Level 1 contains the basic functions of drilldown reporting, plus it lets you send reports by SAPmail.

This level is designed for users who do not require the full functionality of drilldown reporting.

? Level 2 contains the rest of the drilldown functions, plus it lets you display graphics and downloadreports to Microsoft Excel.

? All functions offers you all the functions in drilldown reporting, including the print setup function andthe functions for saving report data and defining exceptions. This level is designed for users who needto print and modify reports in addition to all the interactive drilldown functions.

? You can define the desired level for each user by entering the parameter RLV (0 = All functions,1 = Level 1, 2 = Level 2) in his or her user parameters.

? Remember: The individual function levels are subjected to an authorization check.

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Formatting Options

01 Cars 1,000,000 800,000 20%02 Cycles 250,000 150,000 16%

03 Parts 100,000 70,000 30%

CurrencyTranslation

100$ ¥

Number

Format FactorDecimal Places

CharacteristicDisplay

KeyName & Key

Name

Sort

Ascending

Descending

Totals

Row

Totals Row

HighlightUnderscore

? You can make a number of settings directly from a displayed report list to define how the data should

be displayed and printed. These settings include changing the currency, the characteristic display, howtotals rows are displayed, sorting functions (such as sort columns), switching display variants (such as

cumulative on/off), and various print settings.

? Currency: This function translates the displayed currency to any other currency for the selectedcolumn(s). The currency translation key is used to automatically find the exchange rate. You define

currency translation keys in Customizing

? Sort: With this function you can sort the rows of the list in ascending or descending order according tothe values contained in the column where you have positioned the cursor. The system displays a dialog

box in which you can decide whether you want to sort the column or column group alphabeticallyaccording to the key or text of the characteristic values, the key figure or, where applicable, a hierarchyor hierarchy display

? Number Format: You can change the number format and the +/- sign for individual columns. Whatsettings you can make depends on the report and the list type displayed (drilldown or detail list).

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Exception Reporting

Revenue % Var.Profit Center

10002000

300040005000

6000

1300,000

1600,000

2450,0002700,000

1200,000

1600,000

1012

232514

13

Variance < 12 %Variance > 20 %

Revenue

Germany

USAFrance

SwitzerlandItaly

Remaining

amount

170,000

150,000120,450

115,000109,250

120,000

==============================================

The 5 leading company codes

Company Code

? An exception condition is an exception which determines whether an object is unusual. You can create

exceptions or exception conditions in a report related to a user-defined key figure in a cell or a column.

? These exceptions consist of two threshold values which define the upper and lower tolerance range. If a

numeric value for this object exceeds or falls below a certain threshold value, it is highlighted in anappropriate color (green or red). There are essentially two types of exceptions . You can define anexception either for a specific cell (intersection of the line and column) or for an entire column. An

exception is always created on the drilldown list. Once you have defined an exception, it is analyzed onthe detail list where you can change it.

? Relative key figures, for example variances, can normally be compared on different drilldown levels.

Therefore it makes sense to define just one exception for the column. This means that the exception isanalyzed on each list of the report regardless of the drilldown level. The above example shows a list ofthe revenue for 2000 for different countries and the variance for 1999 derived from this. An exception is

defined for the percentage variance 1999/2000 column. A breakdown for the USA then shows for thecorresponding regions the revenue for 2000 and the percentage variance. The exception defined in thesecond column is also analyzed on the second list, i.e. the exception is analyzed both in the list of the

individual countries and in the list of the respective regions. By comparison, an exception for a cell causes the exception to be displayed only on the list on which you have created this exception. Thismeans that the exception is no longer analyzed just for any breakdown of the list of the report.

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Report Types in Drilldown Reporting

? Basic Report

Quick, Easy to Define?Select variables

?Select characteristics

?Select key figures

? Form Report

Specially formatted reports with

?Layout based on a standardized "form"

?Special formatting options (color, dividing lines, etc.)

?Use of variables

? The drilldown reporting tool was designed to provide you with simple means for defining

straightforward reports while still offering all the functions necessary for you to create more complex,formatted reports. Consequently, a distinction is made between two different types of report.

? Basic reports are often used to run a quick, ad hoc analysis to look for a specific effect. These structureshave predefined basic structures that can be used generically.

? Form reports, on the other hand, are more complex and can be designed according to their specific

purpose. These reports are often used for official reports and are especially suited for printing.

? Form reports are defined on the basis of so-called ”forms”, which are separate objects that can be usedfor a number of reports. There are different types of form, which differ in terms of what elements are

defined where in their structure.

? Basic reports do not require the use of a form. When you define a basic report, you simply need to

select the characteristics, characteristic values, and key figures that you want to analyze.

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Basic Report

Profit Center RevenueCost of

goods sold

1000

2000

3000

Selection of variables, characteristics and key figures

The selected characteristics span over amulti-dimensional data cube

Characteristicvalues

Key Figures

? The report definition functions can be accessed in Customizing as well as via the application menu.

From the selection screen, you can access all the steps for processing in the report definition in anysequence.

? The initial screenoffers the variables Period (from/to), Plan/Actual indicator, Version and Record type(costing-based approach) for all basic reports.

? The characteristic selection gives you a list showing all the characteristics for the operating concern.

Here you can select the characteristics that you require for your analysis. This defines the dimensions ofthe data cube that you want to analyze. If characteristic groups have been created for the operatingconcern, the system displays the Characteristic group input field. If you make an entry in this field, the

system no longer displays all the characteristics of the operating concern but instead only those of thecorresponding characteristic group.

? On the key figure(s) selection screen, when you enter a key figure scheme in the costing-basedapproach the system displays first a list of all the calculated key figures in the key figure scheme(see the slide on defining key figures). You can add the value fields of the operating concern to the keyfigure selection by choosing the Value Fields key. In the account-based approach, the system displays a

list of all fixed basic key figures on the key figure(s) selection screen.

? If you want to delete a report you can do this from the change transaction. However if you want todelete an entire group of reports, it is simpler to do this in the Customizing via Reports.

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Variables: Overview

Global Variables

From Period

To Period

can be used inevery form

From Period

To Period

Local variables

form-related

Sales Organization

?

?

?From Period

?From Period ?Sales Organization

Entry during

thereport

execution

? Variables allow you more flexibility in defining your forms and reports. Variables are report or form

parameters which you do not want to specify until you define or execute a report. You can use differentmethods for replacing variables. Depending on how often you want to use them, you can define your

variables globally or locally.

? If you want to create a variable which you only need in one particular form or report, you can create alocal variable. Local variables are only known within the relevant form or report. If you define a local

variable in a form, it is also valid for every report which uses that form.

? On the other hand, if you define a variable in the report definition, it is only valid for that one report. Ifyou use a variable frequently, you can define it globally. This makes it possible to use global variables

in all your forms and reports. Global variables are maintained in the Customizing. If you then want touse global variables in a form or in a report, these are displayed for selection in the input help.

? Additional note: Note that when you change an existing global variable, this may affect a number ofreports and forms which already use it.

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FormsForms

Architecture of Drilldown Reporting

Create

ChangeChangeExecute

Drilldown Report

Key FiguresKey Figures CharacteristicsCharacteristics

? You can use characteristics, key figures, and forms to define a report. The result when you display the

report is a number of lists and graphics that you can call up and analyze interactively.

? A form determines the content and the formal structure of a report list. A form can be thought of as a

semifinished report, which you complete by specifying characteristics and key figures when you definethe individual report. You can specify characteristics in the form as well as in the report. Key figures,however, can only be contained in either the form or the report.

? Drilldown reporting in PCA provides you with easy-to-use functions for navigating through the dataset.For example, you can move from one segment to the next level or the next segment at the same level,deactivate a level of the drilldown hierarchy, and switch between detail lists and overview lists. You

also have a number of other functions available for editing online reports (conditions, sort orders,ranking lists, and so on). And you can send report lists by fax or electronic mail, or download them toMicrosoft Word or Microsoft Excel.

? In addition to the various interactive functions for online lists, drilldown reporting also provides specialfunctions for defining the report layout for printing (page breaks, headers and footers, underscores, andmore).

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Different Types of Forms

Plan Actual Var. Plan - rev Actual - rev Plan Act Var

RevenueCosts

One axis without

key figure

One axis with

key figure

Two axes

(matrix)

Create report with form

? There are specifically three form types:

?Form with one axis (without key figure)

In the form with one axis (without key figure) you define either the rows or columns of the form

with characteristics. The Basic screen function brings you first to an empty list with columns.

?Form with one axis (with key figure)

In the form with one axis (with key figure) you define either the rows or columns of the form with

key figures and characteristics. The Basic screen function brings you first to an empty list withrows.

?Form with two axes (with key figure)

In the form with two axes (with key figure) you define both the rows and the columns of the form

with key figures and characteristics. The Basic screen function brings you to an empty list withrows and columns. Whether the rows or the columns contain the key figures is optional and

depends on what you want to report on. The characteristics can be both in the columns and in therows.

? When you create a form, specify the name and the type of the form that you want to edit.

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One Axis without Key Figure

Plan Actual Var.

Plan Actual Var.Key FigureRevenue

Costs

Form

Revenue Costs

Plan Act Var Plan Act Var

Profit

Center

1000

2000

Report: Detail list for Profit Center 1000

Report: Drilldown listCreating a report

Characteristics:Profit Center

Company Code …

Key Figures:Revenue, costs

? In the form with one axis (without key figure) only characteristics are selected in the columns. You do

this by defining characteristics and characteristic values. It is also possible to use a form to define othercolumns within a form (for example, variance as the difference between plan and actual). The

characteristics selected in the form thus specify the column contents.

? The key figures and the drilldown characteristics, i.e. of the characteristics whose characteristic valuesyou want to use to navigate in the report, are selected in the report definition.

? The drilldown list gives you a two-line column header containing the key figures in the first row andlisting under each the characteristics selected in the form (plan, actual, variance). The rows contain thevalues of the drilldown characteristics.

? The detail list shows the characteristics (in the columns) and the key figures (in the rows) that wereselected in the form. The detail list reports again on a selected characteristic value.

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One Axis with Key Figure

1000Key FigurePlan - rev

Actual - rev

Plan – rev Actual - revProfitCenter

1000

2000

Report: Drilldown list

Form

Creating a report

Characteristics:Profit Center,

Company Code ...

Plan - revActual - rev

? In the form with one axis (with key figure) you define in the form rows the key figures linked to the

characteristics (for example, plan – rev, actual – rev). You can further restrict these key figures bydefining characteristics and their values.

? In the report definition only the drilldown characteristics are then selected.

? In the drilldown list, the key figures linked to the characteristics form the columns for the forms,whereas the values of the drilldown characteristics form the rows.

? The detail list consists of one column and contains the selected characteristic that you want to report on,whereas the key figures are located in the rows.

? Additional note: In the form with one axis (with key figure) you define either the rows or columns of

the form. The basic screen brings you first to an empty list with rows. You can however always invertthe form using the column display function, i.e. you can decide whether you define the rows or columns

for this form type.

? Note that you define the detail list when you define a form. This means that the position of the elementsspecified in the form corresponds to the position in the detail list. Therefore the key figures are specifiedin the rows by default for the form with one axis (with key figure).

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Two Axes (Matrix)

Plan Act Var Key FigureRevenue

Costs

Revenue Costs

Plan Act Var Plan Act Var

Profit

Center

1000

2000

Report: Drilldown list

Plan Act Var

RevenueCosts Form

Report: Detail list for Profit Center 1000

Creating a report

Characteristics:Profit Center,Company Code, ...

? In the form with two axes (matrix) both the rows and the columns are defined with key figures or

characteristics. The key figures have to be displayed either in the rows or in the columns of the form, but not in both at the same time. However you can use characteristics to define rows and columns.

? In the report definition only the drilldown characteristics are then selected.

? The slide shows the two levels in the columns of the drilldown list, i.e. the first row containing the keyfigures and the second row containing the characteristics (plan, actual and variance) selected in the

form. The rows contain the values of the drilldown characteristics.

? The detail list shows the characteristics (in the columns) and the key figures (in the rows) that wereselected in the form. The detail list reports again on a selected characteristic value.

? Additional note: Note that you have a range of functions for all types of forms for defining the layoutand the settings according to your needs (color setting, number format, separators, free text and many

others).

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Drilldown Reporting

Drilldown list

HTML header

Detail area

? You can analyze a number of key figures for a single combination of characteristic values as well as

single key figures for a number of combinations of characteristic values. A combination ofcharacteristic values is generally referred to as an "object" (example: profit center X, revenue/cost

element 400000 in period 6).

? In addition, you can compare different sets of data (such as plan/actual, different plan versions or fiscalyears, and so on) to examine the differences.

? Drilldown reporting lets you use the same graphical user interface as the Report Painter for defining the basic structure of your reports. You can then apply this structure, or "form", to any number of drilldownreports.

? Drilldown reporting provides you with a number of user-friendly functions for navigating through yourreports, for example, you can switch between different list types (drilldown list/detail list), limit your

analysis to a single characteristic value, or summarize the data for all values of a characteristic. It also provides additional functions for processing the report list interactively (display conditions, exceptionrules, sorting functions, "top n" lists, and more). You can also display graphics, send report pages usingSAPmail, and download reports to the SAP XXL List Viewer and Microsoft Word for Windows.

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? SAP AG 1999

Profit Center

Company Code

From Period

To Period

Selection ScreenSave combinationof parameters asselection variant

ExecuteExecute Online ...Online ...

……or or in the Backgroundin the Background

Define Variant Group

ScheduleVariant Group

1000

1000

001/1998

A s s i g

n V a r i a n t

Executing Reports

? When you execute a drilldown report online, the system displays a selection screen where you specify

what data you want to see. You can define selection variants to simplify this process. A selectionvariant contains a set of selection parameters and other settings for a report.

? You can also use selection variants to execute reports in the background. You do this by first defining avariant group and entering a number of selection variants for different reports in that group. Then youcan schedule the entire variant group for background processing.

? Thus a variant group lets you combine separate tasks into one step:

?Schedule different combinations of variables for one report

?Schedule variants for different reports

? You can schedule a job once you have defined the variant group and selected the desired reports. This

job can also be scheduled for execution in regular intervals. For more information, see thedocumentation BC Computing Center Management System.

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? Line Item Reporting

Topic:

Information System: Topic IV

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Display Line Items: Initial screen

Company Code

Profit Center

Account

Functional Area

to

to

1000

890000400000

1SAP

1010 1020to

to

Display variant

Line Item Report: Selection

? The actual line item report lets you select individual postings according to various selection criteria

(profit center, revenue/cost element, posting date). It is only available if your system stores actual lineitems for the relevant controlling area and fiscal year. The line items are stored in table GLPCA.

? The actual line item report also functions as a list of actual costs because it displays posting documents.All the selected line items are shown in list form. You can decide how much detail you require in thereport as you can analyze the line items with varying degrees of detail.

? Relevant information of a report, such as selected fields and their sequence, is stored in the displayvariant. Several standardized display variants are defined in the SAP system. Further display variantscan be defined interactively at the application level.

? Plan Line Items: It is possible to display plan line items in Profit Center Accounting, provided that yoursystem stores plan line items for the desired controlling area and fiscal year (defined in Customizing). If

this is the case, the plan line items are stored in table GLPCP.

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Line Item Report: Display Maintenance

4220

4220

4220

4220

4230

4230

4230

4230

42304230

4230

4230

619000

619000

620000

620000

619000

619000

619000

620000

620000625000

625000

625000

819,083

105,500

1001,000

1476,111

1102,800

105,500

5,500

3,125

35,001

77,747

10,000

82,030

h

h

h

h

h

h

h

h

hh

h

h

Pr.Ctr. Account Total Quantity Entered UnitPr.Ctr. Account Total Quantity Entered Unit

Cost Element

Total quantity entered

Value

Unit

Currency

Screen VariantScreen Variant Display Variant

Cost Center

? The R/3 System offers several standard display variants. The function Display variants lets you change

the column structure of the list. The field selection includes a number of additional fields from the profitcenter line items (e.g. information about the cost center, orders), additional currencies, and so on. You

can also choose groups of fields from the field selection by changing the Field group. From the set of allavailable fields (including customer-specific fields) you can choose as many as you want for acompany-specific display variant.

? Depending on the width of a column the R/3 System automatically displays the short text version or thelong text version of the field name, using your logon language if available for the report.

? Once you have executed a line item report, you have the following display options:

?Horizontal scrolling by column

?Hide/show columns

?Change order of columns

?Sort list according to certain criteria

?Totals for value columns

?Subtotals for each object in a column

?Original Document Display

?Filter Function

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Information System: Unit Summary

You are now able to

? use the report tools used in Profit CenterAccounting

? understand the data structure in the informationsystem of Profit Center Accounting

? define drilldown reports

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Exercises

Unit: Information System

Topic: Overview


? use standard reports and check the information they contain.

The department managers want to be informed about which reportingrequirements are covered by standard reports.

1-1 Check the usability of drilldown reports of interactive reporting.1-1-1 Call the report Profit Center Group: Plan/Actual/Variance with the following

parameters:

Field Name Values

Period 1 – 12


Plan Version 0



1-1-2 The system displays the report layout. The breakdown is sorted by the account

numbers of account group 3000000.INT.

Change the breakdown of the values by double-clicking on the characteristic

Profit Center in the "Navigation" window.

You can now see a hierarchy display of the profit centers to which postingshave been made.

Expand hierarchy GR## and break down the view by account number for profit center 91## by moving profit center 91## to the characteristic Account

Number using drag and drop.

You can now see the profit and loss statement of profit center 91##.

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To see the accounts within group 3000000.INT, expand the subtree using theright mouse button.

You find this display confusing and only want to have just the accountswithout hierarchy characteristics displayed. Deactivate the hierarchy display

for the characteristic Account Number.

The displayed result only displays the costs and revenues for profit center91##. You want to see the total values again. Cancel the selection for costcenter 91##.

You can now see the account breakdown for profit center group GR##.

You want to break down the total values by functional area. Double-click onthe characteristic Functional Area.

You can now see the overall result broken down by functional area.

Some postings were not assigned.

Find out which account numbers were not assigned to any functional area bymoving the Not Assigned Values to the characteristic Account Number using

drag and drop.

Which accounts were not assigned to any functional area in the actual?

____________________________________________________________

____________________________________________________________

Why were no functional areas assigned to the plan values?

____________________________________________________________

____________________________________________________________

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1-2 You want to check master data entries in the information system.

1-2-1 Call the special report Profit Center: Master Data Index for profit center groupGR##.

1-2-2 Change the layout by including the "PrCtr Formula Planning Template"

column.

1-2-3 To which profit centers has template SALES## been assigned in the master

record?

____________________________________________________________

____________________________________________________________

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Topic: Data Structures in The Report Painter


? understand which reporting tables are accessed by Report Painterstandard reports.

The IT manager wants to have an overview of the options provided by theReport Painter for creating own reports. You want to provide him with an

overview of the access structures.

2-1 Analyze a Report Writer report in terms of the technical definition.

2-1-1 Call the list-orientated report Profit Center Group: Plan/Actual/Variance withany parameters.

2-1-2 Call the technical information for the report in the report display. Which tableand which library does this report use?

Table: ____________________________________________________

Library: __________________________________________________

2-1-3 Display library 8A2 in the application menu of Profit Center Accounting usingthe tools of the information system.

Never make changes to the libraries of the standard delivery. Youcan use these as a template if necessary.

Go to the characteristics of this library. Check the characteristic RHOART(Type of origin object) and KOSTL (Cost Center).Can you analyze the characteristic RHOART using reports of report group

8A2?

_________________________________________________________

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Can you analyze the characteristic KOSTL using reports of report group8A2?

_________________________________________________________

Display the basic key figures of report group 8A2. Click on the

documentation icon for the basic key figure KSL.

What can you say about this?

_________________________________________________________

_________________________________________________________

_________________________________________________________

2-2 Check the report/report interface of a Report Writer report.

2-2-1 Call the report Profit Center Group: Plan/Actual/Variance by Origin with thefollowing parameters:

Field Name Values



Period 1 – 12

Plan Version 0

Profit Center GR##



2-2-2 Call the technical information for this report. Which table and which library

does this report use?

Table: _____________________________________________________

Library: __________________________________________________

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2-2-3 Check the values with the origin object Cost Center. Were salary costs postedwith account number 430000?

____________________________________________________________

2-2-4 You want to analyze which cost centers caused this amount. Set the cursor on

this cell and go via the report/report interface to the report Cost Centers:Actual/Plan/Variance

Which cost centers were posted to?

____________________________________________________________

Display the technical information for this report. Which table and whichlibrary does this report use?

Table: _____________________________________________________

Library: __________________________________________________

2-2-5 Compare the technical information of the two reports. What do you discover?

____________________________________________________________

____________________________________________________________

____________________________________________________________

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Topic: Reporting with Drilldown Reporting


? define basic reports

? define form reports

Those responsible for the profit center often want information on certain

postings to be provided by telephone. You define a basic report whichallows you to navigate via the required characteristics.

At period-end closing reporting, the managers request a printed

plan/actual/comparison. You define a form report in order to control the

output format.

3-1 Define a basic report.

3-1-1 Define the basic report AC610## Basic Report Group## which allows you to

navigate with the following characteristics:

Field Name Values


Profit Center Can be selected with local variable PRCTR

Ledger No entry

Company Code No entry

Account Number No entry

Origin Object No entry

Costs and revenues should only be displayed in profit center local currency.

It should be possible to enter all variables on execution of the report.

For the graphical output, the screen should be divided into an informationwindow, a navigation window and a drilldown window.

Save report AC610##. Do not enter a hierarchy for the characteristics Profit

Center and Account Number.

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3-1-2 Execute report AC610## with the following parameters:

Field Name Values

Profit Center 91##

Period 1 – 12Fiscal Year Current fiscal year

Plan/Actual Indicator 0

Version 0

3-1-3 Which characteristics are displayed in the information output area?

____________________________________________________________

____________________________________________________________

Break down the report by account number. Has an amount been posted to

account 800000?

____________________________________________________________

Which origin objects can you identify for account 800000?

____________________________________________________________

____________________________________________________________

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3-2 The profit center managers often also want to know the source document for certain

postings.

3-2-1 Change the basic report AC610##. Add Transaction KE5Z "Profit Center:

Actual Line Items" to the report/report interface.Save the document.

3-2-2 Execute report AC610## with the following parameters:

Field Name Values

Profit Center 91##

Period 1 – 12



Version 0

Break down the report by account number.Display the line items for account 430000. Go to the original document of anyline item.

____________________________________________________________

3-3 Create a form report for plan/actual/comparisons. Management requires twomanagement-orientated cost amounts to lay down the performance-related bonus

payments for the profit center managers.

3-3-1 Define the form on which the report is based.

First the system displays the following overview:

Lead column Actual PLAN VAR ABS

Sales Account 800000 Account 800000 ACTUAL -

PLAN

COGS Account 893015 Account 893015 ACTUAL -PLAN

Contribution

margin I

Sales + COGS Sales+COGS ACTUAL -

PLAN

Personnel SET 3060000.INT SET 3060000.INT Actual - Plan

Contributionmargin II

Contribution margin I+ Personnel

Contribution margin I+ Personnel

ACTUAL -PLAN

Create form AC610FORM## Form Group ## as a matrix.

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Define the general selections of the form before the actual layout:

Field Name Values

From Period Local variable FROMPER

To Period Local variable TOPER

Fiscal Year Local variable YEAR


Confirm the general selections.

Go to the variable definition and name the variables as follows:

Name Description

FROMPER From PeriodYEAR Fiscal Year

TOPER To Period

Define the ACTUAL column as the key figure costs/revenues in profit centerlocal currency restricted to the characteristic plan/actual indicator 0 (actual

values)

Define the plan column as the key figure costs/revenues in profit center local

currency restricted to the characteristic plan/actual indicator 1 (plan values)

and version 0.

Define the ABW ABS column as formula ACTUAL – PLAN.

Delete column 4.

Define the first row as the characteristic row with account number 800000domestic revenues. The row text should be sales.

Define the second row as the characteristic row with account number 893015Cost of goods sold. The row text should be COGS.

Define the third row as the formula Sales + COGS. This is necessary becausesales are posted with a negative sign in Profit Center Accounting. The row text

should be contribution margin I.

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Define the fourth row as the characteristic row with the SET 3060000.INT personnel expense. The row text should be personnel.

Define the fifth row as the formula contribution margin I + personnel. The rowtext should be contribution margin II.

Save the form.

3-3-2 Create the report AC610FORM## Coverage Group ## with formAC610FORM##.

Define ledger and profit center as the navigation characteristics. Do not make

any further entries.

Fill the variables with the data of the current period of the current fiscal year.

Make sure that all the variables can be entered at execution. For the outputchoose the graphical output with the output areas information, navigation,

breakdown and detail.

Save the document.

3-3-3 Execute report AC610FORM## for the current period of the current fiscal

year.

Where do you see the layout definition from the form?

____________________________________________________________

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To see the accounts within group 3000000.INT, expand the subtree using theright mouse button.

Click using the right mouse button on 3000000.INT and choose Expand

subtree .

You find this display confusing and only want to have just the accounts

without hierarchy characteristics displayed. Deactivate the hierarchy displayfor the characteristic Account Number.

Click the Hierarchy... icon. .Click the Choose H ierarchy selection pushbutton.

Choose No hierarchy and confirm by pressing enter.

The displayed result only displays the costs and revenues for profit center91##. You want to see the total values again. Cancel the selection for cost

center 91##.

Click using the right mouse button on the profit center characteristic 91##

in the list of navigation characteristics.

Choose Cancel selection.

You can now see the account breakdown for profit center group GR##.

You want to break down the total values by functional area. Double-click onthe characteristic Functional Area.

Double-click on the characteristic Functional Area in the list of navigation

characteristics.

You can now see the overall result broken down by functional area.

Some postings were not assigned.

Find out which account numbers were not assigned to any functional area bymoving the Not Assigned Values to the characteristic Account Number using

drag and drop.

Move Not Assigned using drag and drop to the characteristic Account

Number

Which accounts were not assigned to any functional area in the actual?

Account 800000 and 893015 do not have any assigned functional areas.

Why were no functional areas assigned to the plan values?

The characteristic Functional Area was not considered when the planning

data was entered. Planning only took place at account level.

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1-2 You want to check master data entries in the information system.

1-2-1 Call the special report Profit Center: Master Data Index for profit center groupGR##.


Special Functions ? Profit Center: Master Data Index

Enter GR## as the profit center group.

Execute the report.

1-2-2 Change the layout by including the column "PrCtr Formula PlanningTemplate".

Choose Settings / Layout / ChangeSelect the PrCtr F ormula Planning Template field in the column set.

Click on the Show selected f ields icon.

Transfer the selection by pressing enter.

1-2-3 To which profit centers has template SALES## been assigned in the masterrecord?

Template SALES## is assigned to the master records of profit center 91##

and 92##.

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Topic: Data Structures in The Report Painter

2-1 Analyze a Report Writer report in terms of the technical definition.

2-1-1 Call the list-orientated report Profit Center Group: Plan/Actual/Variance withany parameters.



Execute the report using any parameters.

2-1-2 Call the technical information for the report in the report display. Which table

and which library does this report use?

Choose Extras / Technical information...

Table: GLPCT

Library: 8A2

2-1-3 Display library 8A2 in the application menu of Profit Center Accounting using

the tools of the information system.

Never make changes to the libraries of the standard delivery. Youcan use these as a template if necessary.

PCA: Information System ? Tools ? Report Painter ? Report

Writer ? Library ? Display

Enter Library 8A2.

Go to the characteristics of this library. Check the characteristic RHOART(Type of origin object) and KOSTL (Cost Center).

Can you analyze the characteristic RHOART using reports of report group8A2?

Click the Characteristics pushbutton. The system displays a list of characteristics.

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Scroll down to the characteristic RHOART (Type of origin object).

The characteristic is selected, that is, it is used in the reports for

library 8A2.

Scroll to the characteristic KOSTL (Cost Center)

The characteristic is not selected, that is, it is not used in the reports

for library 8A2.

Display the basic key figures of report group 8A2. Click on thedocumentation icon for the basic key figure KSL.

What can you say about this?

Click the Basic key figures pushbutton.Set the cursor on the basic key figure KSL (Amount in profit center

LC).

Click the Documentation icon.

The key figure KSL refers to the table fields KSLVT and KSL01 toKSL16 of the totals record table GLPCT. In this instance, the databasetable is referenced and not the Report Painter structure. Fields

KSLVT and KSL01 to KSL16 are the technical database fields for

balance carryforward and period values in the totals record table.

2-2 Check the report/report interface of a Report Writer report.

2-2-1 Call the report Profit Center Group: Plan/Actual/Variance by Origin with thefollowing parameters:

PCA: Information System ? Reports for Profit Center Accounting ? List-Orientated Reports ? Profit Center Group: Plan/Actual/Variance by

Origin


Field Name Values


Fiscal year Current fiscal year

Period 1 – 12

Plan Version 0

Profit Center GR##



Execute the report.

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2-2-2 Call the technical information for this report. Which table and which librarydoes this report use?


Table: GLPCT

Library: 8A2

2-2-3 Check the values with the origin object Cost Center. Were salary costs posted

with account number 430000?

Values have been posted.

2-2-4 You want to analyze which cost centers caused this amount. Set the cursor on

this cell and go via the report/report interface to the report cost centers:

Actual/Plan/Variance

Set the cursor on the actual amount with account number 430000.

Click on the Call up report icon.

Choose the report Cost Centers: Actual/Plan/Variance .

Which cost centers were posted to?

Salary costs were posted to the cost enters T91## Sales and T92##

Administration.

Display the technical information for this report. Which table and whichlibrary does this report use?


Table: CCSS Report Table for Overhead Costs Table

Library: 1VK Cost Centers -Absorption Costing

2-2-5 Compare the technical information of the two reports. What do you discover?

The report Profit Center Group: Plan/Actual/Variance by Origin accesses

the report table GLPCT in Profit Center Accounting.

The report Cost Centers: Actual/Plan/Variance accesses the report tables

of Cost Center Accounting. The characteristic Cost Center is not in fact

listed in the totals records of Profit Center Accounting.

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Topic: Reporting with Drilldown Reporting

3-1 Define a basic report.

3-1-1 Define the basic report AC610## Basic Report Group## which allows you tonavigate with the following characteristics.

PCA: Information System ? Tools ? Drilldown reporting ? Create

Report

Enter AC610## Basic report group 01

Click report type Basic report.

Click the Create pushbutton.

Field Name Values


Profit Center Can be selected with local variable PRCTR

Ledger No entry

Company Code No entry

Account Number No entry

Origin Object No entry

Enter the value 1000 for the characteristic Controlling Area.

Click the Vari able on/off indicator for the characteristic Profit Center.

The system displays the Var iable selection window.Enter PRCTR as the local variable and confirm. Variable PRCTR is thus

only known in report AC610##.

Select the characteristics Company Code , Account Number and Origin

Object in the list of Avai lable character istics .

Click the Add characteri stic icon.

Costs and revenues should only be displayed in profit center local currency.

Click the Key fi gures tab page.Select the key figure Costs/revs in PCLC in the list of Available key fi gures .

Click the Add key figur e icon.

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It should be possible to enter all variables on execution of the report.

Click the Variables tab page.

Make sure that the Entr y at Execution indicator is set for all variables.Alternatively, you can specify default values at execution for every

variable.

For the graphical output, the screen should be divided into an informationwindow, a navigation window and a drilldown window.

Click the Output Type tab page.

Click Graphical report -output .

Choose the combination I nfo control, navigation control, dri ll down control

under output areas.

Save report AC610##. Do not enter a hierarchy for the characteristics Profit

Center and Account Number.

Click Save. Confirm the hierarchy selection. Make sure that no hierarchy is enteredfor the characteristics Profit Center and Account Number.

3-1-2 Execute report AC610## with the following parameters.

PCA: Information System ? Tools ? Drilldown Reporting? Execute

report

Select report AC610##.

Execute the report.Enter the following parameters:

Field Name Values

Profit Center 91##

Period 1 – 12



Version 0

Execute the report.

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3-1-3 Which characteristics are displayed in the information output area?

The characteristic values for controlling area 1000 and profit center 91##are fixed characteristic values. This is the reason why they are displayed

in the information output area. No navigation is possible via these

characteristics.

Break down the report by account number. Has an amount been posted toaccount 800000?

Double-click on the characteristic Account Number in the navigation

output area.

Account 800000 has been posted to.

Which origin objects can you identify for account 800000?

Move account 800000 using drag and drop to the characteristic Origin

Object in the navigation output area.Profit center 91## was posted in account 800000 with the origin objectsProfit Center, Billing Document and Accounting Profitability Segment.

3-2 The profit center managers often also want to know the source document for certain

postings.

3-2-1 Change the basic report AC610##. Add Transaction KE5Z "Profit Center:Actual Line Items" to the report/report interface.

Save the document.

PCA: Information System ? Tools ? Drilldown Reporting ? ChangeReport

Double-click on report AC610##.

Select the Options tab page.

Click the Report assignment pushbutton.

The system displays the Assign Reports window.

Click the I nsert r ow icon.

The system displays the Add Dr il ldown Report window.

Click the Other report type pushbutton.

Select TR Transaction.

Enter transaction code KE5Z and confirm.

Save the report assignment.

Save report AC610##.

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3-2-2 Execute report AC610## with the following parameters.


report

Select report AC610##.

Execute the report.


Field Name Values

Profit Center 91##

Period 1 – 12



Version 0

Break down the report by account number.

Double-click on the characteristic Account Number in the navigation

output area.

Display the line items for account 430000. Go to the original document of anyline item.

Click on the actual costs with account 430000.

Click on the Call up report icon. The assigned item report is started

immediately.Double-click on the line items.

The system displays the original G/L account document.

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3-3 Create a form report for plan/actual/comparisons. Management requires two

management-orientated cost amounts to lay down the performance-related bonus payments for the profit center managers.

3-3-1 Define the form on which the report is based.First the system displays the following overview:

Lead column Actual PLAN VAR ABS

Sales Account 800000 Account 800000 ACTUAL -PLAN

COGS Account 893015 Account 893015 ACTUAL -

PLAN

Contributionmargin I

Sales + COGS Sales+COGS ACTUAL -PLAN

Personnel SET 3060000.INT SET 3060000.INT ACTUAL -

PLAN

Contributionmargin II

Contribution marginI + Personnel

Contribution marginI + Personnel

ACTUAL -PLAN

Create form AC610FORM## Form Group ## as a matrix.

PCA: Information System ? Tools ? Drilldown Reporting ? Create

Form

Enter AC610FORM01 Form Group 01.

Click on Two axes (matrix)

Click on the Create pushbutton.

The system displays the Report Painter interface for defining forms.

Define the general selections of the form before the actual layout.

Choose Edit / Gen. data selection / Gen. data selection

Field Name Values

From Period Local variable FROMPER

To Period Local variable TOPERFiscal Year Local variable YEAR


Select the characteristics Fiscal Year, Period and CO Area in the list of

Avail able characteristics .

Click on the Move selected to left icon

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Click on the Vari able on/off indicator for the characteristic Fiscal Year.

Enter YEAR in the Local variable field and confirm.

Click the Variable on/off indicator for characteristic Period.

Enter FROMPER in the Local Variable field and confirm.

Click the Vari able on/off indicator for characteristic period in the To

column.Enter TOPER in the Local Variable field and confirm.

Enter the value 1000 for the characteristic Controlling Area.

Confirm the general selections.

Click the Confirm pushbutton.

Go to the variable definition and name the variables as follows.

Choose Extras / Variables /Variables definition

Enter the following descriptions for the variables:

Name Description

FROMPER From Period

YEAR Fiscal Year

TOPER To Period

Confirm.

Define the ACTUAL column as the key figure costs/revenues in profit centerlocal currency restricted to the characteristic plan/actual indicator 0 (actualvalues)

Double-click on Column 1 .

Choose Characteristics .

Select the characteristic plan/actual/indicator in the list of Available

characteristics .Click on the Move selected to left icon.

Enter the value 0 for the actual values for the selected characteristic

plan/actual indicator.Click the Change shor t, middle and long texts icon.

Enter ACTUAL as the short text.

Click the Copy shor t text pushbutton and confirm.Click the Confirm pushbutton in order to complete the column definition.

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Define the Plan column as the key figure costs/revenues in profit center local

currency restricted to the characteristics plan/actual indicator 1 (plan values)and version 0

Double-click on Column 2.

Choose Characteristics .

If not already selected, select the characteristic plan/actual/indicator in the

list of Avai lable character istics and click on the Move selected to lef t icon.

Enter the value 1 for plan values for the selected characteristic plan/actual

indicator.

Select the characteristic version in the list of Avai lable characteristics .

Click on the Move selected to lef t icon.

Enter the value 0 for the selected characteristic version.

Click the Change shor t, middle and long texts icon.Enter PLAN as the short text.Click the Copy shor t text pushbutton and confirm.

Click the Confirm pushbutton in order to complete the column definition.

Define the VAR ABS column as the formula ACTUAL – PLAN.

Double-click on column 3.

Select Formula .Click the X001 pushbutton to select the actual column.

Click the pushbutton for the minus sign.

Click on the X002 pushbutton to select the plan column.Confirm the formula.

Enter VAR ABS as the short text for the column.

Click the Copy shor t text pushbutton.

Confirm.

Delete column 4.

Set the cursor on column 4.

Click the Delete element icon.

Define the first row as the characteristic line with account number 800000domestic revenues. The row text should be sales.

Double-click on Row 1 .Choose Key figure with characteristics.

Select Costs/revs in prof it center local curr . in the key figure field.

Select the characteristic Account Number in the list of Availablecharacteristics .

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Click on the Move selected to lef t icon.

Enter the value 800000 for the selected characteristic account number.

Click the Change shor t, middle and long texts icon.

Enter Sales as the short text.

Click the Copy shor t text pushbutton and confirm.

Click the Confirm pushbutton in order to complete the row definition.

Define the second row as the characteristic row with account number 893015Cost of goods sold. The row text should be COGS.

Double-click on Row 2 .

Choose Key figure with characteristics.Select Costs/revs in prof it center local curr . in the key figure field. If not already selected, select the characteristic Account Number in the list

of Avail able character istics

and click on the Move selected to left icon.

Enter the value 893015 for the selected characteristic Account Number.


Enter COGS as the short text.

Click the Copy shor t text pushbutton and confirm.


Define the third row as the formula Sales + COGS. This is necessary because

sales are posted with a negative sign in Profit Center Accounting. The row textshould be contributio n margin I.

Double-click on Row 3 .Select Formula .

Click on the Y001 pushbutton to select row 1.

Click the pushbutton for the plus sign.

Click on the Y002 pushbutton to select row 2.Confirm the formula.

Enter Margin I as the short text for the row.

Click the Copy shor t text pushbutton.Confirm.

Define the fourth row as the characteristic line with the SET 3060000.INT

personnel expense. The line text should be personnel.

Double-click on Row 4 .

Choose Key figure with characteristics.

Select Costs/revs in prof it center l ocal curr. in the Key Figure field. If not already selected, select the characteristic Account Number in the list

of Avail able character istics

and click on the Move selected to left icon.

Click the SET ON/OFF indicator.

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Enter the value 3060000. INT Personnel expense as the SET and confirm.


Enter Personnel as the short text.Click the Copy shor t text pushbutton and confirm.


Define the fifth row as the formula contribution margin I + personnel. The rowtext should be contribution margin II.

Double-click on the fifth row (the blank space below row 4 that was

configured above).

Select Formula .

Click on the Y003 pushbutton to select contribution margin I.Click the pushbutton for the plus sign.

Click on the Y004 pushbutton to select Personal.Confirm the formula.

Enter Margin II as the short text for the row.Click the Copy shor t text pushbutton.Confirm.

Save the form.

Click Save.

3-3-2 Create the report AC610FORM## Coverage Group ## with formAC610FORM##.

PCA: Information System ? Tools ? Drilldown Reporting ? Create

Report

Enter AC610FORM## Coverage Group ##.

Click Report with form and enter AC610FORM##.

Click the Create pushbutton.

Define ledger and profit center as the navigation characteristics. Do not makeany further entries.

The characteristics Ledger and Profit Center are preassigned.

Fill the variables with the data of the current period of the current fiscal year.Make sure that all the variables can be entered at execution. For the output

choose the graphical output with the output areas information, navigation,drilldown and detail.

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Click the Variables tab page.


Name Description

From Period Current period

To Period Current period


Make sure that the Entr y at Execution indicator is set.

Click the Output Type tab page.

Click Graphical report -output .Choose the combination I nfo control, navigation control, dri ll down control,

detail control under Output areas.

Save the document.Do not enter a hierarchy for the characteristics Profit Center.

3-3-3 Execute report AC610FORM## for the current period of the current fiscal

year.


Report

Double-click on report AC610FORM01.


Name Description

From Period Current period

To Period Current period


Execute the report.

Where do you see the layout definition from the form?

The detail output area shows the Report Painter form with the total of the

values displayed in the drilldown area.

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? SAP AG 2003

Actual Data

Master Data

InformationSystem

Transfer Prices

Profit Center

PlanningProfitability Analysis

Conclusion

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Course Objectives

On completion of this course, you will be able to? set up the Profit Center Accounting application

? differentiate between Profit Center Accountingand Profitability Analysis

? use the essential functions of Profit CenterAccounting in the context of Planning and

Actual business processes

?

understand the business purpose of ProfitCenter Accounting as it relates to ProfitabilityManagement

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Recommended Follow-up Activities

? Go through the exercises using IDES data or your own data

? Read on-line documentation

? Read IMG documentation

? Read release notes

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© SAP AG AC610 Appendix-1

? SAP AG 2003

Appendix

Contents:? Profit Center Determination with Special Postings

? Additional Course Slides

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? SAP AG 2003

MM Goods Movement

MM Goods Movement

Normal

Case

Price

Differences

Goods

Receipt forPurchaseOrder

Change in

Stock withGoods Issue forDelivery Note

Subcontracting:

Goods Issue,SubcontractingComponents

Valuated Sales

Order Stock

Valuated

ProjectStock

PurchaseOrder

DeliveryNote

PurchaseOrder

(FinishedProduct)

Material/Plant

Material/Plant

Receiver

Material/Receiver

Plant

Sales Order ItemOR

Material/Plant

(with StockTransport Orders)

Material/

Plant ofProduction

Material

Material/

PlantOR

WBS

Element

Material/Plant

ORSubstitution at

Creation of Sales

Order OR

Manual Change

? The graphic illustrates how the system determines the profit center for an MM goods movement. The

data in the MM document is posted in Profit Center Accounting to the profit center determined by thesystem.

? As you can see from the graphic, the profit center for an MM goods movement can be determined eitherdynamically or indirectly via the preceding document.

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Invoice Receipt

FI Invoice Receipt

Normal Case Third -Party Transaction:

Invoice Receipt fromExternal Vendor

Cross-Company Transaction

Invoice Receipt f romInternal Vendor (Internal Allocation)

Purchase Order Sales Order

ItemBilling Item

Material/Plant

SalesOrder

Item

Material/Plant

ORSubstitution at

Creation of Sales

Order OR

Manual Change

MM-RE

? The graphic illustrates how the system determines the profit center for an MM goods receipt posting.

The data in the MM document is posted in Profit Center Accounting to the profit center determined bythe system.

? When a goods receipt posting is made, the profit center is always determined indirectly via the preceding document.

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Posting in FI and in FI-AA

Manual EntryOR

Assignment of CO-Account

Assignment Object

Overhead Cost Order OR

Cost Center of Asset

FI PostingsFI-AA-

Asset Postings

? The graphic illustrates how the system determines the profit center for FI and FI-AA postings. In Profit

Center Accounting, the data in the FI or FI-AA document is posted to the profit center determined bythe system.

? The profit center is always determined dynamically from the FI or FI-AA document.

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SD Billing Document

Sales Order Item

DeliveryNote

SalesOrder

Normal Case

Stock

Transport

Order

ValuatedSales

Order Stock

Valuated

Project

Stock

Cross-

Company

Transaction

SD Billing Document

Material/Plant

ORSubstitution at

Creation ofSales Order

or Billing DocumentOR

Manual Change

Material/Plant

ORSubstitution at

Creation ofSales Order

or Billing DocumentOR

Manual Change

Material/Plant

WBSElement

Substitution

? The graphic illustrates how the system determines the profit center for an SD billing document. In Profit

Center Accounting, the data in the SD billing document is posted to the profit center determined by thesystem.

? For an SD billing document, the profit center is - with one exception - always determined indirectly viathe preceding document.

? The exception to this rule is an SD billing document with valuated project stock. With this type of

billing document, the profit center is determined dynamically from the WBS element contained in theactual SD billing document.

? With cross-company transactions, the sales order item always contains the supplying profit center.

? This profit center is used both for the internal settlement and the goods issue (see normal case in thegraphic).

? The profit center making the sale must be determined using a substitution when the customer billing

document is created(see cross-company transaction in the graphic).

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ALE Scenarios in Profit Center Accounting

?

Centralized Profit Center Accounting

? Decentralized Profit Center Accounting

Master data is maintained centrally and thendistributed

A profit center can be posted to all decentralizedsystems where PCA is activated

Summarized records are transferred periodicallyto the Central System

? Application Link Enabling (ALE) is explained in detail in the documentation ALE Introduction and

Overview. There you will also find a chapter dealing specifically with Profit Center Accounting. Tolearn how to set up distribution using ALE, see Customizing.

? Application Link Enabling scenarios have been implemented in Profit Center Accounting to allow youto decentralize your Profit Center Accounting.

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Centralized Profit Center Accounting

Central SystemCentral System

System ASystem A

Documents Posted LocallyDocuments Posted Locally

System BSystem B

Documents Entered LocallyDocuments Entered Locally

No data exchange

between System A and

System B

Transaction data can only

be updated per iodical ly to

central systems

Transact ion d ata can on ly

be updated per iodical ly to

central sys tems

? The line items are stored locally in the home system of the relevant profit center. If a posting is made to

a profit center, which is not in the home system of the profit center, the line items are posted withreference to the originating document.

? You can analyze the line items and totals records of a profit center in its home system. If you want toexecute reports for all profit centers, you have to transfer the line items and total records from thedifferent local systems to the central system after period-end closing. The data is stored there in a

"rollup ledger", ledger 8C. This ledger is generated automatically in the logical system of thecontrolling area if you selected the ALE distribution method "2" in Customizing. This ensures that nodata from the local systems is imported more than once.

? If you transfer planning data from other applications, do this in the system where the data was generatedoriginally. The data is then sent to all the systems concerned in the same way as actual data,

? Profit centers can only be planned manually in your home system.

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Profit Center Reporting in BW