CO-PA Management BPO

7/27/2019 CO-PA Management BPO

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SAP AG 2000 filename (author) / 1

ProfitabilityManagement

with




Overview

Imagine you are a Sales Business Analyst

Introduction into Profitability Management

Profitability Reporting in mySAP.com

1

2

5

Transferring Actual Data to Profitability Analysis3

Profitability Planning4




Analyze Market Development

• Market growth / Market share

•

Trends in demand and prices• Trends in technology

Portal for a Sales Business Analyst / Tasks

Web browser access

Workplace of a Sales

BusinessAnalyst

Analyze Sales Figures

• Sales by office / regions and

customers

• Sales by products

Analyze Profitability and Margins

• Gross margins by customer

• Evaluate the efficiency of field

service and promotional activities

• Contribution margins by products

Sales Budgets

• Coordinate sales activities

by setting goals

Early Warning Indicators

• Analyze the current sales

pipeline




Portal for a Sales Business Analyst / Screens

Web browser access

Workplace of a Sales

BusinessAnalyst




The Workplace with MiniApps




Overview




1

2

5




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Integrated Business Model to Collect Revenue and Costs

Sales quantity

Sales revenue

- Rebates

Net revenue

- Direct costs

- Var. prod. costs

Contrib. margin I

- Fixed prod. costs

Contrib. margin II

- Variances

- Overhead costs

Operating profit

Act. Plan

Documents

Value flows

SD Transfer of

billing docs

FI

CO-

PC

Direct

Valuation

using cost

estimates

CO-

PC FI

CO-

OM

Transfer of

overhead

Planning

Customizing



Views of Profitability Management

Profit Centers

Profitability

Segments

Responsibility Accounting Profitability Analysis byMarket Segments

Revenue 2000Discounts 100COGS 460

Contr.Margin 1440Marketing 230 ...

Revenue 2000Salaries 468Material 230

...Profit 1000ROI 12 ...

Procurement Production Distribution Sales



Profitability Analysis by Market Segments

Reporting Dimensions

Customer Region

Sales officeBusiness Unit

Revenue

Cost

Sales Quantity

Sales Revenue

Customer discount

Sales commission

Direct sales costs

Net revenue

Direct material costs

Variable production costs

Contribution margin I

Material overhead

Fixed production costs

Contribution margin II

Variances

Contribution margin III

Overhead costs

Operating profit

Product

Determ ine and analyze the prof i tab i li ty of market segments



Responsibility Accounting by Profit Center

Reporting Dimensions

Profit Centers

Answers

Profit

Sales Revenue

Sales Deductions

Cost of Goods Sold

Operating Profit

Liabilities

Accounts Receivables

Invested Capital in Assets

Inventory

Cost of Capital

Return on Investment

Accounts

ROIEquity Turnover

Return on Sales

Economic Profit Invested

Capital

Determ ine and analyze prof i t , balance

and f inanc ial rat ios by Prof i t Center



Integrated Business Model

Business

ProcessProduction

Goods

movement Sales/Billing Procurement

VA

L

U

E

FL

O

W

PP SDMM MM

CO-PC

CO-

PA

FI

CO-OM

Standard costs

VariancesManufacturing

Administration

Marketing

Sales



Organizational Units

ControllingArea

CompanyCodes

Profitability-Segment

OperatingConcern

Profitability-Segment

CompanyCodes

Sales Organization

DistributionChannel

Customer Customer

Plant

CompanyCodes

ControllingArea




Basic Concepts of CO-PA

Sales Region North

Product Prod1

Product Group Electronics

Customer Cust1

Customer Grp WholesaleState Illinois

Sales Rep Miller

Characteristics

Revenues 800

Discounts 100

COGS 650

Value Fields

Revenue

Discounts

COGS

Profi tabi l i ty

segment

Values

R E G I O N

PROD. GROUP




PZ

Input

Cust.

Product

Sls rep.

District

State

Cust.grp

Prod.grp

Sls reg.

Strat.BU

R1

P1

C1

Output

Cust.

Product

Sls rep.

District

State

Cust.grp

Prod.grp

Sls reg.

Strat.BU

SR

R1

P1

C1

D1

S1

G1

PZ

SB

Product

Customer group

State

Product group

District

Sales rep. Sales region

Strategic

business unit

Customer

Characteristics Derivation Concept

D1 S1

G1

SB

SR

DERIVATION

SDCO-

PA

R1

P1

C1




Output

Quantity

Customer Disc.

Revenue 10000

1000

10Quantity 10

Var. pr od . co sts 5,200

Fixed pro d. cos ts 1,800

Special hand l ing 200

Revenue 10,000

Sales commision 500

Valuation Concept

Input

Billing Document

Customer 1000

Product P-100

Quantity 10

Revenue 10,000

Discounts 1,000

…

… Valuation

SD CO-

PA

Special handling

Sales commision

Fixed prod. costs 1800

500

200

5200Var. prod. costs 5200




Ergebnisbereich-Templates




Overview




1

2

5






Sources of Value Fields

SD

Cost Center

Order

Process

Cost Estimate

General Ledger Posting

Billing Document

FI

CO-OM

PS

CO-PA

WBS Element

Network Operation

Additional Costs

Quantity

Sales Revenues

Sales Deductions

Cost of Goods Sold

Variable Cost of Goods Mfd

Fixed Cost of Goods Mfd

Bonuses

Freight Costs

Sales and Administration Costs

Marketing Costs

Variances

Research & Development Costs

Estimated Discounts

Estimated Bonuses

CO-PC-OBJProduction Order Production Variances

CO-PC




YES

Transfer Billings Document to CO-PA: In Detail

NO

Derivation error Error in account-

determination

Cost estimate not

found

SD Header : Customer 47

Item 10: Product A

Item 20: Product B

SAVE

Billing-documentSD

Info

missing ?

Release to

Accounting

CO

PA

FI

FI-Docu-

ment

Line-item 1

Line-item 2

Customer 47Product A

Revenue ...

Disc. ...

COGS ...




Reconciliation Report FI / SD and CO-PA

Rel. 4.5




Kunde/ArtikelKunde/ArtikelKunde/Artikel

Source Related Allocation of Overhead Costs

Company

overhead

Operation Profit

Customer Group

1

overhead costs

sales dept.

CM4

Product Group

1

productionvariances

CM3

Customer A/

Product 1

revenue

rebates

net revenue

var. prod. costs

CM1

fix prod. costs

CM2Cost Centers

cost center “production“

cost centers“sales dept.“

revenue

:

:

:

CM1

:

CM2

revenue

:

:

:

CM1

:

CM2

:

:

CM3

revenue

:

:

:

CM1

:

CM2

:

:

CM3

:

:

:

CM4cost center “administration“

./.

./.

./.

./.

./.

./.

Di t P ti f S l C t




Direct Posting of Sales Costs



Pl i Diff l




Planning on Different Levels

Cost of Goods Sold

Distribution

Expenses

Marketing

Expenses

Sales Volumes

Revenues




Elements in Planning

Plan

Package

Planning Level

Planning Method

Characteristics

Sales Organizat ion: Sou th

Div is ion Customer Group

Product

Characteristic Values

Div is ion: Pumps

Custom er Group: Indu str ia l

Product : *

Perio d/Year: 01.00 - 12.00

Record Type: F

Change Planning Data

Planning Layou t

Currency

Distr ibut ion Key

Numb er Format

Parameter Set

O i f Pl i F k




Overview of Planning Framework

Planning method

Parameter set

Parameter set

Definition ScreenPlanning level

Planning package

Planning package

Planning package

N Pl i F k




New Planning Framework

Status of the planning package

All automatic planningfunctions included

Th CO PA Pl i F ti O i




The CO-PA Planning Functions: Overview

Customizable

planning layout

Integrated Excel

Planning @Web

Manual Plann ing

Revaluations

Valuations

Period dist.

Forecast

Planning A ids

Event planning

Monitoring of

sales deals

Sales and Promo t ions Budget

Au tomatic Planning Funct ions

Transfer of cost center costs/

process costs

Settlement of order planning data

and project planning data

Transfer of quantities to/from SOP

Transfer of planning data to/from LIS

Transfer of planning data to PCA

Transfer of planning data to F/GL

Retraction of BW-Data

Integrated Plann ing

Copying/deleting/adapting plans

Top-down distribution

Planning

in

CO-PA

N Pl i F ti i P Vi




New Planning Functions in a Process View

Plan

proposal

Annualgoals

Objectives

by ...

Bottom-up

planning

Valuated

plan

Complete

contributionmargin plan

Are

objectives

attained ?Reference

data

T Diff t R l




Two Different Roles

Coordinates and

organizes the planning

process

Configurates the planning

process in the system

Decides what should be

planned Decides who should plan

what

Contributes his

business knowledge as

an end user

Receives a personalized

view of his planning

Does not need any

knowledge of theplanning process and

technical aspects

Planning Coordinator Operative Planner

N Pl i F ti i P Vi





Plan

proposal

AnnualGoals

Objectives

by ...

Bottom-up

Planning

Valuated

plan

Complete


Are

objectives

attained ?Reference

data

Manual Planning of Annual Goals




Manual Planning of Annual Goals

Fix SAP Sheet and

flexible Customer Sheet

Full Excel Macro

functionality available

Planning with a Ratio Scheme




Planning with a Ratio Scheme

Record type F Year 2000

Reference version: Actual data

Customer

Group

Price

(Ratio M1)

01

02

03

10.00

15.00

12.00

Record type F Year 2001

Version 1, plan version

Customer

Group

Revenue

(Qty * M1)

Sales Qty.

(Plan)

01

02

03

25,000

10,000

10,000

250,000

150,000

120,000

Ratio M1 =

Ratio Scheme A:

Revenue

Quantity

Method: Distributing Entire Values




Method: Distributing Entire Values

Prod. groupPumps

Nonassigned

Total

Credit

Revenues2000

10003000

-3000

Plan Values

Product

P1

P2

Prod. group

Pumps

Pumps

Revenues

Result: Distributed Values

Quantity in '99 100

200

Reference Data

ProductP1

P2

Prod. group Pumps

Pumps

Value to be

distributed

Result1/3*3000 = 1000

2/3*3000 = 2000

New Planning Functions from a Process View




New Planning Functions from a Process View

Plan

proposal

Annualgoals

Objectives

by ...

Bottom-up

Planning

Valuated

plan

Complete


Are

objectives

attained ?Reference

data




Classic Layout




Profitability Planning

@ Web




Integrated Excel






Plan

Proposal

AnnualGoals

Objectives

by ...

Bottom-up

Planning

Valuated

Plan

Complete

ContributionMargin plan

Are

Objectives

Attained ?Reference

data

Integration of Planning




Integration of Planning

EC-

PCA

Internal orders

Cost center CO-

OM

Projects

PS ABC BusinessProcess

CO-

PA

Overview




Overview




1

2

5



Checking Your Planning Results in Reporting




Checking Your Planning Results in Reporting

Extraction of Data from CO-PA to SAP BW




Extraction of Data from CO PA to SAP BW

InfoCubes

DataSource (Characteristics / Value fields)

BW InfoSource (InfoObjects)

SAP BW Server

OLTP R/3

CO-PA

CO-PA

Metadata

Mapping

Flow of

Transaction

Data

BW 2.0

Web-Enabled Drilldown Reporting




Web Enabled Drilldown Reporting

You can draw report

data by executing reportsfrom your personal

user's role menu

With the help of

MiniApps, report

data is placed rightat your fingertips



