Copa pricing

Integrated Business System (IBS)

GT FI EFNS for CO PAPricing

KPMG International

November 2010

Revision History and Approval

Revision historyVersion Author Date Revision/CR #0.1 Mainak Ghosh 18 May 2009 Initial Version - Updated the Staff Level

determination logic based on change in HCM stuff level field.

0.2 Debasish Jana 18 Oct 2010 Changes: Cost plus & Admin surcharge functionality added

1.0 John Hughes 09 Nov 2010 Final Version

ApprovalVersion Name Date Reviewed

1.0 John Hughes 09 Nov 20101.0 Neta West 08 Nov 20101.0 Bryan Dobes 09 Nov 20101.0 Debasish Jana 09 Nov 20101.0 Praveen Kumar Singh 09 Nov 20101.0 Peter Walker 09 Dec 20101.0 QCB 14 Dec 20101.0 Ian Stutt

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Contents1 Introduction 11.1 Purpose of the Document 1

1.2 Request Overview 2

2 Overview 42.1 Business Driver 4

2.2 Key Business Requirements 4

2.2.1 Standard Charge out Rates and Standard Cost Rates 4

2.2.2 Special Charge out Rate 5

2.3 Assumptions 6

2.4 High level Process overview 6

2.5 Alternative Solutions evaluated 6

3 Enhancement Definition Details 83.1 Detailed Processing Logic 8

3.1.1 Logic 8

3.1.2 Document Processing Logic 8

3.1.3 Business Process Steps required 8

3.2 Customized Screens 9

3.2.1 Pricing Matrix Table Maintenance Screen Layout 9

3.3 Custom Table Definition 10

3.3.1 Custom Tables 10

3.3.2 Standard Tables 11

3.4 Exception Handling Rules 11

3.5 Special Requirements 11

3.6 Dependencies 11

3.6.1 Data Dependencies 12

3.6.2 System Dependencies 12

3.6.3 Process Dependencies 12

3.7 Constraints 12

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3.8 Workflow Requirements 12

3.8.1 Workflow Tasks/Notifications 12

3.8.2 Thresholds 12

4 Scheduling Requirements 13

5 Testing Requirements 145.1 Test Specification 14

5.2 Functional Test Scenarios 14

5.3 Test Data & Other Needs 15

5.4 Test System & Environment 16

5.4.1 Unit Test Environment 16

5.4.2 Quality Test Environment 16

5.4.3 Pre-Production Test Environment 16

5.4.4 System Landscape Testing 16

5.4.5 Stress Testing Requirements16

5.4.6 Regression Testing Requirement 17

6 Globalization 186.1 Internationalization 18

6.1.1 Currency Format 18

6.1.2 Date Formats 18

6.1.3 Language 18

6.1.3.1 Data 18

6.1.3.2 Messages 18

6.1.3.3 User-Determined Text 18

6.1.4 Configuration Requirements 18

6.1.5 User Interface Elements 18

6.1.5.1 Window Titles 18

6.1.5.2 Titles 18

6.1.5.3 Button Texts 19

6.1.5.4 Labels 19

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6.1.5.5 Captions (comments/instructions/texts) 19

6.1.5.6 Tool Tips 19

6.1.5.7 Menus 19

6.1.5.8 Roadmap Steps 19

6.1.5.9 Links 19

6.1.5.10 Tab Labels 19

6.1.5.11 Table Column Labels 19

6.1.5.12 Field Label Texts 19

7 Audit Requirements/Integrity Controls/Security 207.1 Audit Requirements/Integrity Controls 20

7.2 Transaction Codes 20

7.3 Security/Authorization Requirements 20

7.3.1 Authorization Group 20

7.3.2 Custom Authorization Check 20

8 Appendix 21

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1 Introduction

1.1 Purpose of the Document

The purpose of this document is to document any SAP code modifications or additional processing logic requirements to further enhance the standard SAP delivered functionality.

This document forms the basis of the Technical Specification and the development work by the development team.

This Functional Specification elaborates upon the WIP Blueprint to provide a more detailed design of the SAP CO-PA Pricing functionality for KPMG IBS Global Template.

It is envisaged that due to the high level of development within the solution, there may be additional changes to coding required during development or testing that are not possible to fully identify at the time of compiling this document.

Similarly, some new design elements incorporated into this document will be subject to change, based on the actual development and final configuration approach taken. For example, this will include numbering/naming conventions and the use of some pricing conditions.

Work in Progress (WIP) valuation (pricing) is to be performed by the Controlling Profitability Analysis module in SAP (CO-PA).

This involves calculating standard chargeable price and standard cost price for the valuation of time.

When time is approved it is updated to the CATSDB and then subsequently to the CATSCO table. The CO-PA inbound program pulls these values from the CATSCO table into CO-PA in order to update WIP on a real time basis (i.e. as and when they are updated to the CATSCO table.)

The time records when they are updated to CO-PA are first pulled through the derivation logic in order to derive the appropriate details for CO-PA. Then it is valuated using the standard charge out and cost rates. This valuation uses the pricing to assign a dollar value to the time. The charge out rate provides the values for the time spent, which are updated to the WIP Ledger (once the ERP percentage is applied if applicable). The cost rate determination and update to the WIP ledger enables the calculation of a margin for the time spent.

This RICEFW solely covers the creation of the custom table which will hold the Activity Type. The Activity Type represents the combination of characteristics which a price is required to be defined at. This RICEFW has dependencies and is linked to the HCM RICEFW for automatic maintenance of the info type 315 on the personnel record. The assignment of the appropriate Activity Type to info type 0315 enables the correct determination of pricing for the individual, providing there is no special price assignment.

The configuration details regarding pricing are contained in the Profitability Accounting Blueprint.

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1.2 Request Overview

Scenario ID F11

Scenario Title Financial Accounting

Process ID F1224

Process Title CO-PA Pricing

Development Specification ID

RICEFW_FI_0006

Name of Enhancement

CO-PA Pricing

Brief Description This Functional Specification elaborates upon the Profitability Accounting Blueprint to provide a more detailed design of the SAP CO-PA Pricing functionality for KPMG IBS Global Template.

Requesting Team Finance

Controlling

Type Function Exit / User Exit Routines SAP Code Modification

Custom Program/Transaction

This is custom table will have an associated custom transaction to enable the maintenance of the pricing table.

Other_________________

Data latency Real-time Batch On-demand

Frequency Annually Quarterly Monthly

Weekly Daily Other

Systems Impacted ECC CRM APO

EBP BI SEM

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Other_________

Modules Impacted FI CO SD

MM PP QM

BW SEM

Other_________

Complexity High Medium Low

Spec Created on 10/18/2010

Date required by 11/15/2010

Created by Debasish Jana Phone: 201-505-2681

Functional Analyst John Hughes Phone: 201-505-2262

Technical Analyst To be defined Phone:

Business Owner Peter Walker Phone: +44 1923 214530

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2 Overview

2.1 Business Driver

To provide the business with a flexible solution for pricing within the Global Template so that Member Firms can configure pricing to meet their local needs with minimal development effort.

The Global template will provide a flexible pricing procedure solution for:

Standard Cost Rate

Standard Cost Plus (Transfer Cost) Rate

Standard Charge out Rate

Special Charge out Rate (Special Price)

Administrative Surcharge

2.2 Key Business Requirements

2.2.1 Standard Charge out Rates and Standard Cost Rates

The set up of the standard charge out rate and standard cost rate will be primarily at the intersection of the following dimensions:

Employee (Personnel Number) – Dimension used only for Standard Charge Out Rates

Staff Function (Audit, Tax, Advisory, and Shared Services)

Staff Location and Region (Personnel Area)

Staff Level (Job Key)

Profit Center (Employee Profit Center)

Staff Office location (Personnel Subarea)

Staff Level (Job Key)

Within the Global Template the above dimensions will be defined as reference for defining the standard charge out, standard cost, and cost plus rate.

The values for these characteristics are defined and owned by HR. These are maintained on the personnel record (InfoType 001) as part of Personnel Administration (PA). However, values that are not yet maintained for personnel are able to be updated into this table e.g. a Personnel Subarea is created but has not yet been assigned to an employee.

Member firms will have the flexibility to define the standard charge out rate, standard cost, and cost plus rate using any combination of these characteristics. This will be set up in a custom table where the combination of characteristics is represented by an Activity Type.

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The CO-PA pricing is associated with Activity Type and assigns a standard cost, cost plus rate and in addition a standard charge out rate. Standard Cost and Cost Plus amounts must be calculated and entered separately on the appropriate activity type. The Cost Plus transfer cost amount is optional.

The Activity Types will be created with $1 fixed value, “manually priced” (in SAP terms) for all relevant Cost Centers, updated by a batch process during the planning process. This price is does not reflect the KPMG pricing model, it facilities the CO entry when timesheets are submitted. The time should not be valuated using this pricing.

The Activity Type represents a generic staff level in Base system (e.g. Senior Manager, Year 2).

In the base solution the generic staff level is represented by job key in the personnel master record. The first three digits of the matching Job Key description is mapped into Personnel master record Info Type 0315, as it is the same as the Activity Type key.

The activity type shall be 6 characters with first 2 for company no, 3rd digit for Audit/Tax/Advisory/Shared services (1/2/3/4) and last 3 characters sequential.

General Release Begin -

Cost plus rate would be % of standard cost rate to be defined in pricing procedure once standard cost rate is determined by the COPA pricing procedure as defined above.

Admin surcharge would be a % of standard charge out rate to be defined in pricing procedure once standard charge out rate is determined by the COPA pricing procedure as defined above.

It is calculated as a percentage of standard revenue. Calculation = Standard engagement revenue X %.

They are defined as a percentage by function (e.g. Audit 11%, Tax 11.5%, Advisory 11%) of the resource

General Relesae End -

2.2.2 Special Charge out Rate

Special Price is engagement or employee specific pricing which enables special pricing for a specific employee to apply to a single engagement. This pricing is determined first before all other pricing conditions.

Special Prices are excluded from the ERP percentage assignment.

The special price can be determined with the combinations of the following dimensions:

Engagement Code / Phase / Personnel Number

Engagement, by Phase by Personnel Number pricing – enables special pricing for a particular resource to apply to a single engagement for a particular phase. This pricing overrides Engagement by Personnel Number rates and Engagement and Staff Level pricing.

Engagement Code / Personnel Number

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Engagement and Personnel Number pricing – enables special pricing for a particular resource to apply to a single engagement. This pricing overrides Engagement and phase realization rates and Engagement and Staff Level pricing.

Engagement Code / Staff Level

Engagement and staff level pricing (Engagement/activity) - enables special pricing for a particular staff level to apply to a single Engagement. This pricing overrides Engagement and phase realization rates and service type and staff level pricing.

Service Type / Staff Level

Service type and staff level pricing (material number/activity) - uses an activity material for the service type, a service material for the staff level and HR activity classification. This pricing condition overrides realization rates set at Engagement or phase levels.

The determination and assignment of the special price is achieved through the set up of the access sequence and the set up of prices by the combinations of the above characteristics.

The following business rules have been identified for this enhancement:

The Global Template is required to support the assignment of a cost rate for one, two or all of the characteristics.

There will be the ability to maintain the standard cost, cost plus, and charge out rate for Shared Services if required by Member Firms.

The standard cost rate will need to be defined and set up for external contractors.

The standard charge out, standard cost, and cost plus rates are required to have a validity period ‘from’ and ‘to’.

In some cases individuals will have a standard charge out rate defined specifically, this is typically used to represent a special skill or value that the individual has and is able to charge out on engagements.

Special pricing will not have the ERP applied. This rate is the rate at which work has been agreed at.

2.3 Assumptions

The following assumptions have been identified for this enhancement:

Pricing is defined and set at the Member Firm level. This is ensured by including Controlling Area in the custom table. Prices are set at that level.

The Activity Types are required to be created prior to the maintenance of the characteristics for pricing.

One set of standard charge out, cost, and cost plus rates are required to be maintained for the Global Template.

Member Firm will be required to maintain a custom table with the characteristic values for which pricing is determined.

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The following characteristics are required to be maintained on the personnel records (Info Type 0001) are maintained correctly. (These are mandatory fields in HCM).

2.4 High level Process overview

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2.5 Alternative Solutions evaluated

There are no viable alternatives that can be evaluated to address these business requirements.

No. Alternatives Evaluation Reason for Rejection (Cost, Timeline, Change Impact, etc.)

1 N/A Pros

Cons

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3 Enhancement Definition Details

3.1 Detailed Processing Logic

3.1.1 Logic

There is no associated program logic for CO-PA pricing as the enhancement requires the creation of a custom table only.

3.1.2 Document Processing Logic

There is no associated document processing logic required for this enhancement.

3.1.3 Business Process Steps required

The following business process steps are required to ensure that the custom table is updated appropriately.

1. Determine function, staff level, location and/or Profit Center and Activity Types required.

2. Create an Activity Type for the job keys (staff level), Function (Segment), Region (Personnel Area) and/or Location (Personnel Sub-Area) with numbering based on 6 characters with first 2 for company no, 3rd digit for Audit/Tax/Advisory/Shared services (1/2/3/4) and last 3 characters sequential.

3. Upload the Activity Type pricing of $1 per hour by Activity Type/cost centre for fiscal year.

4. Maintain the new /KGO/FI_COPA_PRI table showing relationship between Function, Job Key, Location and Activity Type.

5. Create/change Personnel Master records, assigning job key, function, location and cost centre. Infotype 315 should populate automatically with the correct Activity Type upon save by reading new table /KGO/FI_COPA_PRI table.

A HCM function specification will be created which will outline the enhancement to automatically populate the Info Type 315 with the relevant Activity Type. Refer to this document for details.

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3.2 Customized Screens

A screen is required for this enhancement in order to maintain the custom table /KGO/FI_COPA_PRI.

3.2.1 Pricing Matrix Table Maintenance Screen Layout

Population of /KGO/FI_COPA_PRI table:

/KGO/FI_COPA_PRI –BUKRS:Manual / automatic, with a validation and maintenance help from BUKRS field of T001 table.

/KGO/FI_COPA_PRI – SEGMENT:Manual / automatic, with a validation and maintenance help from SEGMENT of FAGL_SEGM table which is function.

/KGO/FI_COPA_PRI –USRID(staff level):Manual / automatic, with a validation and maintenance help from JOB_LEVEL field of ZTJOB_KEY table.

/KGO/FI_COPA_PRI - PERSA (region):Manual / automatic, with a validation and maintenance help from WERKS of T500P table.

/KGO/FI_COPA_PRI -BTRTL (location):Manual / automatic, with a validation and maintenance help from BTRTL field of T001P table.

KGO/FI_COPA_PRI –PRCTR (profit center):Manual / automatic, with a validation and maintenance help from PRCTR field of CEPC table.

/KGO/FI_COPA_PRI - LSTAR (activity type):Manual Entry, with a validation and maintenance help from LSTAR of CSLA table.

/KGO/FI_COPA_PRI –KTEXT:Automatically populated at the time of the savings of the record, the record selection of Activity Type from KTEXT field of CSLT table.

Additional verification: Location field cannot be updated without region field.

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3.3 Custom Table Definition

The following custom and standard tables are required for this enhancement.

3.3.1 Custom Tables

This table will be manually maintained. It will be possible for a Member Firm to maintain this table via an excel spreadsheet upload using a custom program.

The table will have entry help and an existence check for all the fields in the table against the standard tables to ensure that only valid entries are maintained in this table.

Field/Data Element

Short Description

Data Type Key Mandatory / Optional

Domain Check/Help

BUKRS Company Code CHAR(4) X Mandatory BUKRS T001

SEGMENT Function CHAR(10) X Mandatory SEGMENT FAGL_SEGM

USRID Staff level CHAR(10) X Mandatory USRID ZT_JOBKEY

PERSA Region CHAR(4) X Optional PERSA T500P

BTRTL Location CHAR(4) X Optional BTRTL T001P

PRCTR Profit Center CHAR(10) X Optional PRCTR CEPC

LSTAR Activity Type CHAR(6) X Mandatory LSTAR CSLA-LSTAR

KTEXT Activity Type Description

CHAR(20) Mandatory KTEXT CSLT- KTEXT

As mentioned above it will be possible for a Member Firm to maintain this table using an upload program.

A separate upload to maintain this table from an excel spreadsheet (*.CSV) will be enabled. The program will need to be designed to work based on the following requirements:

A. A direct upload program will be used to update the custom tableB. The program will be called through a custom transaction codeC. The key fields must be populated on the spreadsheet to enable the upload of the data to the tableD. The excel spreadsheet will be the same structure as the table and populated in that order.


3.3.2 Standard Tables

The following standard tables will be used as reference to provide a control check to the custom table.

Table Name Data Field Field Description

T001 BUKRS Company Code

FAGL_SEGM SEGMENT Segment

ZTJOB_KEY USRID Staff Level

CEPC PRCTR Profit Center

T500P PERSA Personnel Area

T001P BTRTL Personnel Sub-Area

CSLA LSTAR Activity Type

CSLT KTEXT Activity Description

3.4 Exception Handling Rules

The following exception handling rules have been identified for this enhancement:

Common function module will be called for all exception messages. As this program will be called by standard program all error messages will be encoded within the program itself.

3.5 Special Requirements

No special requirements have been identified for this enhancement. Information help will not be provided on the table maintenance screen for the CO-PA Pricing table as this is not possible with standard SAP functionality. The table maintenance view is automatically generated by SAP and as such custom fields cannot be added to the screen.

System administration procedures will be developed which will outline the process and provide the user help to support the maintenance of the account determination tables.

3.6 Dependencies

The following dependencies have been identified for this enhancement:


3.6.1 Data Dependencies The Activity Type must exist before maintenance on this table can be carried out.

The custom table must be maintained in order for the appropriate Activity Type to be updated on Info Type 0315.

3.6.2 System Dependencies

No system dependencies have been identified for this enhancement.

3.6.3 Process Dependencies

No process dependencies have been identified for this enhancement.

3.7 Constraints

No limitations or constrains have been identified for this enhancement.

3.8 Workflow Requirements

No workflow requirements have been indentified at the time of this writing.

3.8.1 Workflow Tasks/Notifications

Msg Nbr

Process

Work List Type

Action Req’d.

Summarized text required

Detailed text required

Triggered from

Who receives it

Who elsecan see it

3.8.2 Thresholds

Scenario Function Threshold Requirements: Engagement code realization rate & function

Task Recipient


4 Scheduling RequirementsThis process will not be executed by a scheduled batch session.

Job scheduling information

N/A

Dependencies

N/A

Frequency

N/A


5 Testing Requirements

5.1 Test Specification

Refer to the attached test specification for this enhancement:

5.2 Functional Test Scenarios

ID Test Scenario - Positive Expected Results Comments

Maintain the table with all valid data

System should allow to save the Data

ID Test Scenario - Negative Expected Results Comments

Maintain the table with invalid data

Error message “Relevant data field name is not valid in the system” should be displayed

Maintain the table with an org key number which is not valid in current date

Error message ”Org Key is not valid as of current date” should be displayed


5.3 Test Data & Other Needs

Master Data Company Code A single Company Code is required for testing this

enhancement

Client At least on client of each client type should be maintained

in that Company Code

Controlling Area A single Controlling Area is required for testing this

enhancement

Organization Assignment record for Personnel Number An organizational assignment record should be

maintained before testing this table maintenance

Transactional Data N/A


5.4 Test System & Environment

5.4.1 Unit Test Environment

System SAP Unit Test Client

Client TBD

Test User/s No specific roles will be used for unit testing.

PortalMOSS Portal and EP for SAP

5.4.2 Quality Test Environment

System SAP Quality Test Client

Client TBD

Test User/s Pricing Analyst


5.4.3 Pre-Production Test Environment

System SAP Pre-Production Test Client

Client TBD

Test User/s Pricing Analyst


5.4.4 System Landscape Testing

This will be defined as part of the realization phase.

5.4.5 Stress Testing Requirements



5.4.6 Regression Testing Requirement



6 Globalization

6.1 Internationalization

6.1.1 Currency Format

This is not relevant for this enhancement.

6.1.2 Date Formats


6.1.3 Language

6.1.3.1 Data

The data elements contained in this custom table are referencing some standard data elements which will be translated where required automatically.

6.1.3.2 Messages

Messages used within this enhancement are contained in the message class /KGO/FI_MSG_CLASS.

These messages will need to be translated.

6.1.3.3 User-Determined Text


6.1.4 Configuration Requirements

There is no specific configuration associated with this enhancement.

6.1.5 User Interface Elements

6.1.5.1 Window Titles


6.1.5.2 Titles

Custom text elements created for the screens associated with this enhancement are required to be translated.


6.1.5.3 Button Texts


6.1.5.4 Labels


6.1.5.5 Captions (comments/instructions/texts)


6.1.5.6 Tool Tips


6.1.5.7 Menus


6.1.5.8 Roadmap Steps


6.1.5.9 Links


6.1.5.10 Tab Labels


6.1.5.11 Table Column Labels

Standard table column labels are used and will be automatically translated. No custom translation is required.

6.1.5.12 Field Label Texts

Standard field label texts are used and will be automatically translated. No custom translation is required.


7 Audit Requirements/Integrity Controls/Security

7.1 Audit Requirements/Integrity Controls

There are no requirements that have been identified for this enhancement:

7.2 Transaction Codes

The following transaction codes have been identified for this enhancement:

Transaction Code

Description Purpose

ZFI_COPA_PRI_MNT

Pricing Matrix Maintenance This transaction enables the user to maintain a pricing matrix custom table.

ZFI_COPA_UPLOAD

Pricing Matrix Data upload from Excel

This transaction enables the user to upload excel data in pricing matrix table.

7.3 Security/Authorization Requirements

The following security requirements have been identified for this enhancement:

Role Transaction Authorization Considerations

Pricing Analyst ZFI_COPA_PRI_MNT Pricing Analyst person will have authorization to maintain the custom table.

7.3.1 Authorization Group

The transaction code to maintain the custom table will be associated with the authorization group ZFIN.

7.3.2 Custom Authorization Check



8 Appendix

Related/Referenced Documents

Document Name Version Brief Description

GT FI Blueprint F1223 Profitability Accounting

General Release Profitability Accounting Blueprint

GT FI Blueprint F1224 Engagement and Project Accounting

General Release Engagement and Project Accounting Blueprint

Attachments

Document Name Version Brief Description

Test Spec Unit Testing Specification Template

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
