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TFIN22_2Management Accounting II
mySAP ERP Financials
Date
Training Center
Instructors
Education Website
Participant HandbookCourse Version: 2006/Q2Course Duration: 2 Days
Material Number: 50080906
An SAP course - use it to learn, reference it for work
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Copyright
Copyright © 2006 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose
without the express permission of SAP AG. The information contained herein may be changed
without prior notice.
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About This Handbook
This handbook is intended to complement the instructor-led presentation of this
course, and serve as a source of reference. It is not suitable for self-study.
Typographic Conventions
American English is the standard used in this handbook. The following
typographic conventions are also used.
Type Style Description
Example text Words or characters that appear on the screen. Theseinclude field names, screen titles, pushbuttons as well
as menu names, paths, and options.
Also used for cross-references to other documentation
both internal (in this documentation) and external (in
other locations, such as SAPNet).
Example text Emphasized words or phrases in body text, titles of
graphics, and tables
EXAMPLE TEXT Names of elements in the system. These include
report names, program names, transaction codes, tablenames, and individual key words of a programming
language, when surrounded by body text, for example
SELECT and INCLUDE.
Example text Screen output. This includes file and directory names
and their paths, messages, names of variables and
parameters, and passages of the source text of a
program.
Example text Exact user entry. These are words and characters that
you enter in the system exactly as they appear in the
documentation.
<Example text> Variable user entry. Pointed brackets indicate that you
replace these words and characters with appropriate
entries.
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About This Handbook TFIN22_2
Icons in Body Text
The following icons are used in this handbook.
Icon Meaning
For more information, tips, or background
Note or further explanation of previous point
Exception or caution
Procedures
Indicates that the item is displayed in the instructor's
presentation.
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Contents
Course Overview ....... ....... ....... ....... ....... ...... ....... ....... .. vii
Course Goals ....... ........ ........ ........ ........ ....... ........ .....vii
Course Objectives ... .... ... .... .... .... .... .... .... ... .... ... .... .... .vii
Unit 1: Structures ....... ....... ....... ....... ...... ........ ...... ....... ... 1
Overview of Operating Concern . ... ... .. ... .. ... ... .. .. ... ... .. ... .. .2
Data Structures........................................................ 16
Unit 2: Master Data ...................................................... 43Introduction to Characteristic Derivation and Valuation.......... 44
Characteristic Derivation............................................. 48
Valuation ....... ........ ........ ....... ........ ........ ....... ........ .. 67
Unit 3: Actual Data...................................................... 105
Flow of Actual Data..................................................106
Transfer of Overhead... ... .... .... .... .... .... .... ... .... .... .... ... 111
Appendix 1: Appendix ...... ....... ....... ....... ....... ....... ..... 147
Index ....................................................................... 181
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Contents TFIN22_2
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Course Overview
This course describes the functions in Profitability Analysis and outlines how to
implement the component. It covers how to set up the structures of an operating
concern and characteristic derivation and valuation. In addition, it explains
how the flow of actual values from the SD, FI, and CO modules works. It also
examines how to create planning layouts, reports, and report forms.
Target Audience
This course is intended for the following audiences:
• Project team members from the Management Accounting departments• Database administrators
• Project team members from the Sales and Marketing departments
Course Prerequisites
Required Knowledge
• AC040 Business Processes and Controlling
• Basic knowledge and experience in cost accounting
• Good working knowledge of the Microsoft Windows operating environment
Recommended Knowledge
• SAP01 - SAP Overview
Course Goals
This course will prepare you to:
• Understand the functions in Profitability Analysis and obtain an insight on
how to implement the component
• Explain Profitability Management in an SAP system
• Work with CO-PA structures and master data• Identify the sources of actual values
• Execute planning
• Use the Information System and work with the additional functions in CO-PA
Course Objectives
After completing this course, you will be able to:
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Course Overview TFIN22_2
• Understand the functions in Profitability Analysis and obtain an insight on
how to implement the component
• Set up the structures of an operating concern and examine characteristicderivation and valuation
• Explain how the integration works between Sales Order Management,
Financial Accounting, and Management Accounting
• Create planning layouts, reports, and report forms
SAP Software Component Information
The information in this course pertains to the following SAP Software Components
and releases:
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Unit 1Structures
Unit Overview
This unit introduces you to the organizational structures from a Profitability
Analysis perspective. It helps you to know the data structures used within
Profitability Analysis. It explains the CO-PA characteristics and value fields andthe possibilities that the system offers to define these data structures.
Unit Objectives
After completing this unit, you will be able to:
• Describe the various organizational units
• Understand the basic concepts, characteristics and value fields, of an
operating concern
• Define an operating concern and its attributes
• Define data structures
• Identify transaction data structures
• Describe the CO-PA database structures and the operating concern templates
Unit Contents
Lesson: Overview of Operating Concern .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .2Exercise 1: Operating Concerns .. ... .. ... ... .. ... .. ... ... .. .. ... .. ... ... . 11
Lesson: Data Structures ... .... .... ... .... .... .... .... .... .... ... .... .... .... ... 16Exercise 2: Data Structures................................................ 25Exercise 3: Maintain the Operating Concern ............................ 31
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Unit 1: Structures TFIN22_2
Lesson: Overview of Operating Concern
Lesson Overview
This lesson describes the various organizational units. In addition, it covers the
concepts, characteristics, and value fields of an operating concern. It also defines
an operating concern and its attributes.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe the various organizational units
• Understand the basic concepts, characteristics and value fields, of an
operating concern
• Define an operating concern and its attributes
Business Example
The management of your company wants to implement a profitability accounting
application in the SAP system. As a member of the project team, you are supposed
to advise on the question of whether to implement CO-PA or EC-PCA in the SAP
system. You then will be responsible to implement the selected applications.
Both cross-company and company-specific reporting of contribution margins is
required in multiple currencies. Multidimensional analysis of sales information,
cost-of-sales information, production variances, and period cost information isrequired for the various market segments. Estimated costs are required for the
actual costs posted only at the month-end. Actual period costs (S, G, and A) for
the various organizational entities are to be reflected at the month-end. Analytics
by value category and by income statement account is required.
For this purpose, you need to identify the operating concern, which represents a
sales and marketing reporting unit for a corporation. You also need to understand
the concept of characteristics and value fields.
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TFIN22_2 Lesson: Overview of Operating Concern
Introduction to Organizational Units
Figure 1: Organizational Units
The operating concern is the key organizational unit within CO-PA. It defines the
extent of the marketing and sales information that can be reported in combination
by this component. One or more controlling areas are assigned to an operating
concern when organizational structures are defined. In most cases, corporations
have only a single operating concern, which is recommended for the sake of
simplicity and convenience if all controlling areas and company codes share the
same fiscal calendar.
The controlling area is an organizational unit delimiting the independent cost
accounting operations of the organization, such as cost center accounting,
profit center accounting, and order accounting. Company codes are assigned
to controlling areas when organizational structures are defined. Mostly, a 1:1
relationship exists between the company code and the controlling area. Notice
that a controlling area can also incorporate several company codes to take
cross-company cost allocations into account.
The company code is an independent accounting unit within a client. The legal
requirements of a balance sheet or a profit and loss statement are fulfilled on the
company code level. Plants are assigned to company codes when organizational
structures are defined.
The plant represents a production center. It is the primary organizational unit in
operations and manufacturing.
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Unit 1: Structures TFIN22_2
Basic Concepts: Characteristics and Value Fields
Figure 2: Basic Concepts of CO-PA
Characteristics
• Answer the question: What do I want to report on?
• Examples: Divisions, Regions, Products, Customers.
Characteristic Values
• Answer the question: What values can I have for these characteristics?
• Examples: Region South; Region North.
Profitability Segments
• Answer the question: What is the technical definition of my sales channel?
• Examples: Combination of Region North, Product Prod1, Sales Rep Miller.
Value Fields
• Answer the question: What performance measures do I want to track andanalyze?
• Examples: Gross Sales, Surcharges, Discounts, Cost-of-Sales.
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TFIN22_2 Lesson: Overview of Operating Concern
Figure 3: Categories of Characteristics
Meaning of Characteristics
Characteristics are the analytic dimensions of the Profitability Analysis. They
define what items or objects the user can evaluate. Several characteristics, such as
sales organization, customer, and product, are predefined automatically for every
operating concern. These are known as fixed characteristics.
In addition to the fixed characteristics, up to 50 non-fixed non fixed characteristics
can be added to an operating concern.
Characteristic maintenance in the field catalog: These non-fixed characteristicsmust be added to the field catalog before they can be used to define a new operating
concern. The characteristics in the field catalog can be accessed in any client.
The field catalog originally contains some suggested characteristics which might
be used in a new operating concern definition. There are two ways to add other
characteristics to the field catalog:
• Choose an existing field from certain SAP tables, which must be five
characters long or less.
• Create a characteristic independently, which should begin with WW and be
four to five characters total.Behind every characteristic, there is potentially a check table with the valid
characteristic values for CO-PA. In this way, the data that flows into CO-PA are
checked. When manually creating a new characteristic in the field catalog, you
can decide whether the system should generate a check table for this.
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Unit 1: Structures TFIN22_2
Figure 4: Categories of Characteristics in Detail
Characteristics can be categorized according to how and when they are defined:
• Characteristics transferred from SAP tables: You can use characteristics
that already exist in other applications when you define your operating
concerns. For example, you can copy the fields from the tables for the
customer master records, material master records, and sales documents. You
can also copy the partner roles defined in the structure, PAPARTNER, in the
Sales and Distribution, SD, application as characteristics in Profitability
Analysis.• Newly defined characteristics: You can create ones that are only required
in Profitability Analysis. To derive the values for these characteristics, you
need to define your own derivation strategy.
• Predefined characteristics: In addition to the fixed characteristics, a
number of other predefined characteristics are available in the field catalog
and can be added to your operating concern, if required. These include the
customer group, customer district, and country characteristics.
• Fixed characteristics: A number of fundamental characteristics are
automatically predefined in every operating concern. These include the
product number, company code, billing type, business area, and sales order
characteristics.
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TFIN22_2 Lesson: Overview of Operating Concern
Figure 5: Categories of Value Fields
Meaning of Value Fields
• In costing-based Profitability Analysis, value fields store the base quantities
and amounts for reporting. Value fields can either be highly summarized,
such as representing a summary of cost element balances, or highly detailed,
such as representing just one part of a single cost element balance.
• The sales-related key figures (e.g. revenue types, discounts, surcharges) are
normally presented in a very detailed way. By comparison, items based
on periodic costs (for example, period cost types) are aggregated. Unlike
characteristics, there are no fixed value fields for a new operating concern.
Value Field Maintenance in the Field Catalog
• All value fields must exist in the field catalog before they can be used to
define a new operating concern. The value fields in the field catalog can be
accessed in any client. The field catalog originally contains some suggested
value fields, which might be used in a new operating concern. Value fields
can also be defined independently. These should begin with VV..., and
should be four to five characters in total.
• You do not need to create the value fields for calculated items, such as net
sales and contribution margin. These items are normally calculated from the
base values stored in the value fields during the report execution progress.
This minimizes the necessary data storage requirements.
Fixed Basic Key Figures (Account-Based CO-PA only)
• In account-based Profitability Analysis, all values are updated to accounts.
Each amount is stored in up to three different currencies under fixed basic
key figures, which are accessed in reporting.
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Unit 1: Structures TFIN22_2
Figure 6: Value Fields With New Time Aggregation Rules
You can use value fields with the aggregation rules, AVG (average) and LAS (last)
in CO-PA drill-down reports.
You define these value fields when you define the data structures for Profitability
Analysis.
Defining an Operating Concern and its Attributes
Figure 7: Steps in Defining an Operating Concern
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TFIN22_2 Lesson: Overview of Operating Concern
You define the structure of your operating concern when you set up your system.
This is done by selecting the characteristics you want to use in the data structures
of the operating concern.
In costing-based Profitability Analysis, you also need to select the value fields
you want to use.
The structure of an operating concern is valid in all clients.
Figure 8: Defining Operating Concern and Attributes
The attributes are client-specific parameters of an operating concern. They have
different effects, depending on the type of Profitability Analysis you are workingin.
Currency types
Operating concern currency- In costing-based Profitability Analysis, the actual
data is always updated in the operating concern currency. You can change the
operating concern currency as long as no data has been posted in the operating
concern.
Company code currency- In addition to the operating concern currency, you have
the option of storing all data in the currency of the relevant company code. This
makes sense if your organization operates internationally and is concerned with
exchange rates that change daily. It allows you to avoid differences due to differentexchange rates and enables you to reconcile your CO-PA data directly with FI.
Profit center valuation In addition to storing data in these two currencies using
the legal company code, valuation view, you can also store data in both of these
currencies valuated from the viewpoint of individual profit centers.
Fiscal year variant
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Unit 1: Structures TFIN22_2
The fiscal year variant determines the number of posting periods for each fiscal
year. Because each controlling area assigned to the operating concern, and each
company code assigned to each of the controlling areas, can have its own fiscalyear variant, the variant you choose for the operating concern must agree with
that for the other areas.
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TFIN22_2 Lesson: Overview of Operating Concern
Exercise 1: Operating Concerns
Exercise Objectives
After completing this exercise, you will be able to:
• Describe the organizational structures relevant for Profitability Analysis
• Summarize the types of Profitability Analysis in the SAP system
Business Example
The group has legal entities in Germany, Italy, and the United States. For this
reason, it must be able to report sales and profitability both across the corporation
in a group currency and in each of the legal entity’s local currency. The sales
managers require summarized sales performance figures, such as revenue,discounts, and surcharges both along and across the lines of the sales structure,
product lines, and customers. They also need to view sales and marketing costs
along these lines. Describe the options available for the organizational structures
for CO-PA.
Task 1:
1. Check the basic settings and organizational assignments for the IDEA
operating concern using the Customizing Monitor.
Is the controlling area 1000 assigned to the IDEA operating concern?
Does the IDEA operating concern have the same fiscal year variants as
the controlling area 1000?
Does the assigned Company Code 1000 also have the same fiscal year
variant?
What chart of accounts do the controlling area and the Company Code have?
Task 2:
Call the profitability report AC605-ORDER (order analysis) in the costing-based
Profitability Analysis. Select the reporting date for the previous year.
1. Obtain an overview of the order situation with regard to sales characteristics.
Continued on next page
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Unit 1: Structures TFIN22_2
Task 3:
Call the profitability report AC605-ECPCA (Profit Center) in the costing-based
Profitability Analysis. Select the reporting date for the previous year with a plan
version.
1. Obtain an overview of the actual data with regard to sales characteristics.
Profit Center
Strategic Business Unit
Company Code
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TFIN22_2 Lesson: Overview of Operating Concern
Solution 1: Operating Concerns
Task 1:
1. Check the basic settings and organizational assignments for the IDEA
operating concern using the Customizing Monitor.
Is the controlling area 1000 assigned to the IDEA operating concern?
Does the IDEA operating concern have the same fiscal year variants as
the controlling area 1000?
Does the assigned Company Code 1000 also have the same fiscal year
variant?
What chart of accounts do the controlling area and the Company Code have?
a) Use the following shortcut to display the IMG:
IMG – Controlling – Profitability Analysis – Tools – Analysis – Check
Customizing Settings.
Expand to the IDEA operating concern. Controlling area 1000 is
assigned. The Company Code 1000 is also assigned to the controlling
area 1000.
All have the same fiscal year variant. Controlling Area and Company
Code have the same chart of accounts.All assigned organizational units are listed in the overview of
the organizational structures of the operational concern; detailed
information from the respective master data are also displayed.
Continued on next page
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Unit 1: Structures TFIN22_2
Task 2:
Call the profitability report AC605-ORDER (order analysis) in the costing-based
Profitability Analysis. Select the reporting date for the previous year.
1. Obtain an overview of the order situation with regard to sales characteristics.
a) SAP menu→ Accounting → Controlling → Profitability Analysis →
Information System→ Execute Report
If required, set the costing-based Profitability Analysis via SAP menu
→ Accounting → Controlling → Profitability Analysis→ Environment
→ Set Operating Concern.
Execute AC605 – ORDER order using F8 or via Report – Execute. The
report contains the data on incoming sales orders or revenue. The
difference represents the incoming sales orders = order balance still to be processed.
You can evaluate the prorated incoming sales orders or turnover,
differentiated according to strategic business units, sales organizations,
distribution channels and divisions using the assigned characteristics.
Task 3:
Call the profitability report AC605-ECPCA (Profit Center) in the costing-based
Profitability Analysis. Select the reporting date for the previous year with a plan
version.
1. Obtain an overview of the actual data with regard to sales characteristics.
Profit Center
Strategic Business Unit
Company Code
a) SAP Menu→ Accounting → Controlling → Profitability Analysis →
Information System→ Execute Report
Execute the AC605 – ECPCA report using F8 or via Report – Execute.
The report contains the data accumulated according to Profit Center.
However, reporting is done here according to cost of sales accounting, position values are not presented in CO-PA.
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TFIN22_2 Lesson: Overview of Operating Concern
Lesson Summary
You should now be able to:• Describe the various organizational units
• Understand the basic concepts, characteristics and value fields, of an
operating concern
• Define an operating concern and its attributes
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Unit 1: Structures TFIN22_2
Lesson: Data Structures
Lesson Overview
This lesson defines data structures and identifies the transaction data structures. It
also covers the CO-PA database structures and the operating concern templates.
Lesson Objectives
After completing this lesson, you will be able to:
• Define data structures
• Identify transaction data structures
• Describe the CO-PA database structures and the operating concern templates
Business Example
The management of your company wants to implement a profitability accounting
application in the SAP system. As a member of the project team of your company,
you are supposed to advise on the question of whether to implement CO-PA or
EC-PCA in the SAP system. You will be responsible to implement the selected
applications. Both cross-company and company-specific reporting of contribution
margins is required in multiple currencies. The multidimensional analysis of
sales information, cost-of-sales information, production variances, and period
cost information is required for various market segments. Estimated costs are
required for the actual costs posted only at the month-end. Actual period costs (S,G, and A) for various organizational entities are to be reflected at the month-end.
Reporting by value category and by income statement account is required. For
this purpose, you need to understand the operating concern, data structures, and
segment level and non segment level characteristics.
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TFIN22_2 Lesson: Data Structures
Defining Data Structures
Figure 9: Operating Concern Data Structures
Defining Data Structures
To define data structures, copy the required characteristics and value fields to
the operating concern and save them.
Activating the Environment (up to 4.6B Generation)
After you have defined the attributes and data structures of an operating concern,
you must activate them and generate the operating environment.
This process generates all the tables, programs, and technical objects required to
support the operating concern you have defined.
After you generate the operating concern and before you activate Profitability
Analysis for data entry, add the valid characteristic values to the check tables
generated for the new characteristics.
Changing the Data Structures
You must reactivate the environment after you change the data structures of an
operating concern. For example, reactivate the environment after you add a new
characteristic or a value field.
The regeneration process does not affect any existing transaction data. Notice that
it also does not automatically back-populate any new fields for existing transaction
data although this sometimes may be carried out using the CO-PA realignment or
periodic valuation functions.
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Unit 1: Structures TFIN22_2
The regeneration process will not affect any characteristic values that have already
been entered in check tables for user-defined characteristics.
Transaction Data Structures
Figure 10: CO-PA Transaction Data Structures (1)
Costing-based CO-PA stores its transaction data in its own data tables, which are
created when activating and generating the operating concern. This means that its
data will never affect the execution speed of a report in another CO application.
Account-based CO-PA stores its transaction data in the transaction data tables for
Overhead Cost Management. This means that its data will affect the execution
speed of reports for other CO applications that share the same transaction data
tables.
The definitions of profitability segments for both CO-PA sub modules are stored
in the same table, CE4XXXX, where XXXX = operating concern. The system
always accesses this segment definition table when posting the transaction data for costing-based or account-based CO-PA.
Profitability segments, which represent the account assignment objects for
profitability analysis, are unique combinations of characteristic values that the
system creates and numbers automatically from the information in the originating
transactions.
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TFIN22_2 Lesson: Data Structures
Figure 11: CO-PA Transaction Data Structures (2)
The CE3... and CE4... tables work effectively together to store the summarized
transaction information, both actual and plan, for costing-based Profitability
Analysis.
The CO-PA drill-down reporting tool accesses the data in the CE3... and CE4...
tables. Line item data and the information from the CE1... and CE2... tables can
be accessed through line item display features.
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Unit 1: Structures TFIN22_2
CO-PA Database Structures
Figure 12: CO-PA Database Structures
The data of CO-PA is divided into characteristics and value fields. The
characteristics are stored in the data division of the table, CE4xxxx. The key of
the CE4xxxx basically consists of the profitability segment number that is used as
a join field for the table, CE3xxxx. The key of the table, CE3xxxx, consists of the profitability segment number and the posting-period and some other technical
fields that are not listed. The value fields are specified in the data division.
The table, CE4xxxx, represents the profitability segments, created based on the
business considerations that are defined when an operating concern is created. The
table, CE3xxxx, contains the values posted to the profitability segments that are
additionally available broken down into the posting period. Typical record lengths:
CE4xxxx = 250 bytes, CE3xxxx = 2000 bytes.
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TFIN22_2 Lesson: Data Structures
Segment Level and Non-Segment Level Characteristics
Figure 13: Segment-Level Characteristics
For reasons of performance, we recommend that the number of profitability
segments be kept as low as possible so that the quantity of the totals records
required in the profitability segment also remains low. You can achieve this by
restricting the selection of characteristics for the profitability segment.
You can to configure the system so that certain characteristics are not used in
defining profitability segments. The impact of this is that the values for thesenon-segment-level characteristics will appear on CO-PA line items but will not be
available for reporting with the CO-PA drill-down reporting tool.
For example, you must have access to the number of the order that has occurred in
SD in every CO-PA line item (CE1). However, it is not necessary to save a new
totals record in the object level (CE3) for every line item that is created during the
transfer from the SD. This would create as many summary records as line items.
You can individually adjust the characteristics that have been used or not used at
object level and make different settings for the costing-based and account-based
profitability analysis. Certain fixed characteristics are generally not used at object
level. However, this can be changed if required.SAP recommends that data be summarized on a higher level, something other than
the customer or product level, for account-based CO-PA to minimize the number
of summary records. This is because its transaction data is stored in the tables that
are shared with other Management Accounting applications.
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Unit 1: Structures TFIN22_2
Operating Concern Templates
Figure 14: Operating Concern Templates
CO-PA provides you with operating concern templates, predefined sample
operating concerns, an environment in which to display the Customizing for these
operating concern, make changes to the Customizing settings, and copy them.
S_AL: Template for Route Profitability.
S_GO: Cross Industry Template.
S_CP: Consumer Goods Industry Template.
Operating concern templates offer the following advantages:
They enable you to gain an insight into Profitability Analysis as a demonstration,
without your having to perform extensive Customizing. This means that you can
use the templates as a basis for quickly calling up reports.
The operating concern templates simplify the Customizing in the profitability
analysis. If necessary, you can adjust your Customizing settings for an operatingconcern template as required, copy these and then use the copied and adjusted
operating concern productively.
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TFIN22_2 Lesson: Data Structures
Figure 15: Quickstart
Use SAP Operating Concern Templates.
This is where you can gain an initial overview of Profitability Analysis without
the need to have any specialist knowledge and without the need to have made
any settings previously. Further, operating concerns that have already been
preset are available, allowing Profitability Analysis to be quickly integrated into
your productive system. To do this, you can customize these operating concerntemplates. At any time, you can reset the templates to their original settings.
Start the transaction for operating concern templates. The template for the
consumer industry is loaded automatically.
The details view provides you with an overview of the delivered settings and of
the modifications that you can make. By choosing Application examples, you can
view reports and planning layouts. The system fills them with example data to
demonstrate more clearly how the application works. You can delete the example
data later.
If you want to use an operating concern template for your profitability analysis,
you first have to copy it. You can find this function under “Tools”. This is alsowhere you can choose to reset an operating concern template back to its initial
state.
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Unit 1: Structures TFIN22_2
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TFIN22_2 Lesson: Data Structures
Exercise 2: Data Structures
Exercise Objectives
After completing this exercise, you will be able to:
• Understand the concepts of value fields and characteristics
• Evaluate the different sources of characteristics
• Explain the settings available for value fields
Business Example
The following requirements apply for the value fields and characteristics needed
for profitability reporting in your organization:
Your sales manager requires summarized sales performance figures, such as gross
revenue, discounts, and surcharges both along as well as across the lines of the
sales structure, product lines, and customers of the company. The sales manager
also wants to view sales and marketing costs along these lines.
Task 1:
In the CO-PA settings menu, display all defined characteristics.
1. What is the table of origin for the Customer Class characteristic?
2. What is the check table for the Sales District characteristic?
Task 2:
Based on the requirements of your project team defined in the company scenario,
you determine that the following characteristics and value fields are required for
reporting. In the data structures of the operating concern, determine which of
the following items are value fields, non-fixed characteristics, fixed (delivered)
characteristics, and technical fields:
Customer, Customer Group, Material Group, Controlling Area, Cost
Element, Revenue, Customer Discount, Profit Center, Price Reduction, Sales
Organization, Variable Production Costs, Sales District, Posting Date, Fiscal
Year, and Number of Employees.
Note: The overview list contains all user-defined characteristics, default
characteristics, and the characteristics selected from the reference tables.
It does not include fixed characteristics or technical fields.
Assign the list of items in 2-2 to the following groups:
1. Which characteristics are non-fixed characteristics?
Continued on next page
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Unit 1: Structures TFIN22_2
2. Which characteristics are fixed characteristics?
3. Which fields are technical fields?
4. Which fields are value fields?
5. What are the aggregation settings for the Number of Employees value field?
Why may you decide to use this field?
6. Display the Strategic Business Unit characteristic. What type of
characteristic is the Strategic Business Unit?
7. Display the REGIO (Region) characteristic. Is the characteristic grouped
with another characteristic?
Why and with what consequences?
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TFIN22_2 Lesson: Data Structures
Solution 2: Data Structures
Task 1:
In the CO-PA settings menu, display all defined characteristics.
1. What is the table of origin for the Customer Class characteristic?
a) IMG→ Controlling → Profitability Analysis → Structures→ Define
Operating Concern→ Maintain Characteristics
Set the indicator for “all characteristics”.
Search for the characteristic “KUKLA” (customer classification)
2. What is the check table for the Sales District characteristic?
a) Select: BZIRK and Details. The check table is T171.
Task 2:
Based on the requirements of your project team defined in the company scenario,
you determine that the following characteristics and value fields are required for
reporting. In the data structures of the operating concern, determine which of
the following items are value fields, non-fixed characteristics, fixed (delivered)
characteristics, and technical fields:
Customer, Customer Group, Material Group, Controlling Area, Cost
Element, Revenue, Customer Discount, Profit Center, Price Reduction, Sales
Organization, Variable Production Costs, Sales District, Posting Date, FiscalYear, and Number of Employees.
Note: The overview list contains all user-defined characteristics, default
characteristics, and the characteristics selected from the reference tables.
It does not include fixed characteristics or technical fields.
Assign the list of items in 2-2 to the following groups:
1. Which characteristics are non-fixed characteristics?
a) IMG→ Controlling → Profitability Analysis → Structures→ Define
Operating Concern→
Maintain CharacteristicsSelect Display All Characteristics and Choose Display
Customer Group, Material Group, and Sales District.
2. Which characteristics are fixed characteristics?
a) Extras→ Fixed Fields
Customer, Controlling Area, Profit Center, and Sales Organization.
Continued on next page
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Unit 1: Structures TFIN22_2
3. Which fields are technical fields?
a) Posting Date, Fiscal Year, and Cost Element
4. Which fields are value fields?
a) IMG→ Controlling → Profitability Analysis → Structures→
Operating Concern→ Maintain Value Fields
Select All Value Fields→ Display
Revenue, Customer Discount, Price Reduction, Variable Production
Costs, Number of Employees
5. What are the aggregation settings for the Number of Employees value field?
Why may you decide to use this field?
a) Select No. of Employees and Detail.
LAS (AVG and SUM also possible).
Period values are normally added together in the Information System
and in Profitability Analysis (CO-PA) planning. This means the
aggregation rule is SUM. The aggregation rules, Last value and
Average, are useful only for representing statistical, non-cumulative
values in value fields, when the most recent or average value is required
instead of the sum.
6. Display the Strategic Business Unit characteristic. What type of
characteristic is the Strategic Business Unit?
a) IMG→ Controlling → Profitability Analysis → Structures→ Define
Operating Concern→ Maintain Characteristics
Select All Characteristics→ Display
Select the strategic business unit WWSBU and then Detail:
User-defined field with 8 characters.
7. Display the REGIO (Region) characteristic. Is the characteristic grouped
with another characteristic?
Continued on next page
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TFIN22_2 Lesson: Data Structures
Why and with what consequences?
a) IMG→ Controlling → Profitability Analysis → Structures→ Define
Operating Concern→ Maintain Characteristics
Select : Display All Characteristics. Select the characteristic REGIO
(not Region before Rel. 4.5) and, in the detailed display, click: Show
compound characteristic
The REGIO characteristic is grouped with the COUNTRY
characteristic. This takes into consideration that the table for
maintaining the master data values for the REGIO characteristic is also
maintained for the COUNTRY characteristic, because region without
country does not have a clear, semantic meaning.
By double-clicking the check table T005S for the REGIO characteristic,
the assignment of the country characteristic becomes visible as part of
the selection.
The result is that, when saving data next to the region, the country is
also saved. When you call a report, the country is also displayed, even
if you have only assigned the REGIO characteristic to the report.
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Unit 1: Structures TFIN22_2
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TFIN22_2 Lesson: Data Structures
Exercise 3: Maintain the Operating
ConcernExercise Objectives
After completing this exercise, you will be able to:
• Determine the attributes of the operating concern
• Add characteristics and value fields to the operating concern
Business Example
You need reports in both the group and company currency because your
organization conducts business in foreign countries.Your sales manager and product manager ask you which data fields you
specifically require for reporting.
Task 1:
Attributes of the Operating Concern
You have decided to use both company code and operating concern currencies in
costing-based PA.
1. Display the currency settings for the operating concern, IDEA. What settings
are configured?
2. What is the fiscal year variant for IDEA?
Task 2:
Data Structures of the Operating Concern
Your sales manager has asked you to check which of the following characteristics
are active for the operating concern:
Material Group, Customer, Postal Code
1. Which of these characteristics are selected for the operating concern?
2. Your product manager has requested that the following value fields be madeavailable in the operating concern:
Sales Order Quantity, Scrap, Marketing Projects
Which of these value fields are configured for the operating concern?
Continued on next page
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Unit 1: Structures TFIN22_2
Task 3:
1. Are own profitability segments formed on the “IDEA” operating concern for
the characteristics ORDER or SALES ORDER ITEM?
2. When data are posted into the costing-based and account-based IDEA
profitability analysis for 3 different products, how many data records
are posted in the costing-based,
account-based
profitability analysis?
Task 4:
1. What is the status of the operating concern, IDEA? Why could thisinformation be important?
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TFIN22_2 Lesson: Data Structures
Solution 3: Maintain the Operating
ConcernTask 1:
Attributes of the Operating Concern
You have decided to use both company code and operating concern currencies in
costing-based PA.
1. Display the currency settings for the operating concern, IDEA. What settings
are configured?
a) You have decided to use both company code and operating concern
currencies in costing-based PA.
Display the currency settings for the operating concern, IDEA. What
settings are configured?
IMG → Controlling → Profitability Analysis→ Structures→ Define
Operating Concern→ Maintain Operating Concern: 'Attributes' tab
Operating Concern Currency: EURO
Company Code Currency: selected
OpConCurrency, PrCtr-Valuation: selected
CompCodeCurrency, PrCtr-Valuation: selected
2. What is the fiscal year variant for IDEA?
a) What is the fiscal year variant for IDEA?
K4, Calendar Year + 4 special periods
Continued on next page
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Unit 1: Structures TFIN22_2
Task 2:
Data Structures of the Operating Concern
Your sales manager has asked you to check which of the following characteristics
are active for the operating concern:
Material Group, Customer, Postal Code
1. Which of these characteristics are selected for the operating concern?
a) Data Structures of the Operating Concern
Your sales manager has asked you to check which of the following
characteristics are active for the operating concern:
Material Group, Customer, and Postal Code
Which of these characteristics are selected for the operating concern?
IMG → Controlling → Profitability Analysis→ Structures→ Define
Operating Concern→ Maintain Operating Concern
Choose → Display and then select the Characteristics tab on the
Data Structure tab. To display the fixed characteristics select Extras
→ Display Fixed Fields).
Material Group, Customer (fixed characteristic)
2. Your product manager has requested that the following value fields be made
available in the operating concern:
Sales Order Quantity, Scrap, Marketing Projects
Which of these value fields are configured for the operating concern?
a) Your product manager has requested that the following value fields are
available in the operating concern:
Ordered Quantity, Scrap, Marketing Activities, and Annual Rebates.
Which of these value fields are configured for the operating concern?
IMG → Controlling → Profitability Analysis→ Structures→ Define
Operating Concern→ Maintain Operating Concern
Choose Display and select the Value Fields tab on the Data Structuretab.
Sales Order Quantity, Scrap, and Marketing Activities.
Continued on next page
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TFIN22_2 Lesson: Data Structures
Task 3:
1. Are own profitability segments formed on the “IDEA” operating concern for
the characteristics ORDER or SALES ORDER ITEM?
a) IMG→ Controlling → Profitability Analysis → Structures→ Define
Profitability Segment Characteristics (Segment-Lvl Characteristics)
No profitability segments are formed for the characteristics Order and
Sales Order Item. However, this does not mean that the data cannot be
evaluated according to these characteristics. The line item report and
the profitability report based on line items are available for this.
2. When data are posted into the costing-based and account-based IDEA
profitability analysis for 3 different products, how many data records
are posted in the costing-based,
account-based
profitability analysis?
a) As the PRODUCT characteristic was only excluded for the
account-based profitability analysis, when updating
• in the costing-based profitability analysis per product,
• only 1 totals record is updated in the account-based profitability
analysis
by comparison. The reason may have to do with the different
information requirements of the users in the account-based or
costing-based profitability analysis.
Task 4:
1. What is the status of the operating concern, IDEA? Why could this
information be important?
a) What is the status of the operating concern, IDEA? Why could this
information be important?
IMG → Controlling → Profitability Analysis→ Structures→ Define
Operating Concern→
Maintain Operating Concern: 'Environment' tab
Status = Active
This means that the environment of the operating concern has been
generated, all data tables are active, and attributes created. If any of the
steps, Save, Activate, or Generate have been left out, no postings can
be made to the tables of the operating concern. This would result in an
error in any data transaction that affects the operating concern.
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Unit 1: Structures TFIN22_2
Lesson Summary
You should now be able to:• Define data structures
• Identify transaction data structures
• Describe the CO-PA database structures and the operating concern templates
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TFIN22_2 Unit Summary
Unit Summary
You should now be able to:
• Describe the various organizational units
• Understand the basic concepts, characteristics and value fields, of an
operating concern
• Define an operating concern and its attributes
• Define data structures
• Identify transaction data structures
• Describe the CO-PA database structures and the operating concern templates
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Unit Summary TFIN22_2
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TFIN22_2 Test Your Knowledge
Test Your Knowledge
1. What does a controlling area represent?
2. In costing-based Profitability Analysis, store the
base quantities and amounts for reporting.
Fill in the blanks to complete the sentence.
3. State the importance of the fiscal year variant in an operating concern.
4. Which of the following is the highest reporting level within CO-PA?
Choose the correct answer(s).
□ A Operating concern
□ B Controlling area□ C Company code
□ D Plant
5. The characteristics, such as “sales organization”, “customer”, “and product”,
are predefined automatically for every operating concern and are known as
.
Fill in the blanks to complete the sentence.
6. In costing-based Profitability Analysis, the actual data is always updated in
the company code currency. Determine whether this statement is true or false.
□ True
□ False
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Test Your Knowledge TFIN22_2
7. To define data structures, you need to copy the required characteristics and
value fields to the operating concern.
Determine whether this statement is true or false.
□ True
□ False
8. -based CO-PA stores its transaction data in its own data
tables, which are created when activating and generating the operating
concern.
Fill in the blanks to complete the sentence.
9. If you want to implement an operating concern template as a template for
your Profitability Analysis, you first need to copy it using the copy functionunder .
Fill in the blanks to complete the sentence.
10. What must be done after you generate the operating concern, and before you
activate Profitability Analysis for data entry?
11. Costing-based CO-PA stores its transaction data in the transaction data tables
for Overhead Cost Management.
Determine whether this statement is true or false.
□ True
□ False
12. State the advantages of operating concern templates.
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TFIN22_2 Test Your Knowledge
Answers
1. What does a controlling area represent?
Answer: The controlling area is an organizational unit delimiting
theindependent cost accounting operations of the organization, such as cost
center accounting, profit center accounting, and order accounting. Company
codes are assigned to controlling areas when organizational structures are
defined.
2. In costing-based Profitability Analysis, value fields store the base quantities
and amounts for reporting.
Answer: value fields
3. State the importance of the fiscal year variant in an operating concern.
Answer: The fiscal year variant determines the number of posting periods
for each fiscal year. Each controlling area assigned to the operating concern
and each company code assigned to each of those controlling areas can have
its own fiscal year variant. For this reason, the variant you choose for the
operating concern must agree with that for the other areas.
4. Which of the following is the highest reporting level within CO-PA?
Answer: A
Operating concern is the highest reporting level within CO-PA.
5. The characteristics, such as “sales organization”, “customer”, “and product”,
are predefined automatically for every operating concern and are known as
fixed characteristics.
Answer: fixed characteristics
6. In costing-based Profitability Analysis, the actual data is always updated inthe company code currency.
Answer: False
In costing-based Profitability Analysis, the actual data is always updated
in the operating concern currency.
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Test Your Knowledge TFIN22_2
7. To define data structures, you need to copy the required characteristics and
value fields to the operating concern.
Answer: True
To define data structures, copy the required characteristics and value fields to
the operating concern and save them.
8. Costing-based CO-PA stores its transaction data in its own data tables, which
are created when activating and generating the operating concern.
Answer: Costing
9. If you want to implement an operating concern template as a template for your Profitability Analysis, you first need to copy it using the copy function
under Tools.
Answer: Tools
10. What must be done after you generate the operating concern, and before you
activate Profitability Analysis for data entry?
Answer: After you generate the operating concern and before you activate
Profitability Analysis for data entry, you need to add the valid characteristic
values to the check tables generated for the new characteristics.
11. Costing-based CO-PA stores its transaction data in the transaction data tables
for Overhead Cost Management.
Answer: False
Account-based CO-PA stores its transaction data in the transaction data
tables for Overhead Cost Management.
12. State the advantages of operating concern templates.
Answer: The advantages of operating concern templates are:
1. They enable you to gain an insight into Profitability Analysis without
the need to perform extensive Customizing.
2. The operating concern templates simplify the Customizing in the
profitability analysis. If necessary, you can adjust your Customizing
settings for an operating concern template as required, copy these and
then use the copied and adjusted operating concern productively.
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Unit 2 Master Data
Unit Overview
This unit discusses the concepts of derivation and valuation. It explains the
derivation strategy and how to evaluate the derivation techniques. In addition, it
discusses valuation using product cost information and outlines valuation using aCO-PA costing sheet.
Unit Objectives
After completing this unit, you will be able to:
• Explain the derivation concepts
• Explain the valuation concepts
• Explain the derivation strategy
• Evaluate derivation techniques
• Understand valuation using the product cost information
• Outline valuation using a CO-PA costing sheet
• Use the Customizing Monitor to perform valuation analysis
Unit Contents
Lesson: Introduction to Characteristic Derivation and Valuation .......... 44
Lesson: Characteristic Derivation .. ... ... .. ... .. ... ... .. ... ... .. .. ... .. ... ... . 48Exercise 4: Derivation ... .... ... .... .... .... ... .... .... .... .... .... .... ... .. 57
Lesson: Valuation................................................................ 67
Exercise 5: Valuation....... .... ... .... .... .... .... .... .... ... .... ... .... .... 81
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Unit 2: Master Data TFIN22_2
Lesson: Introduction to Characteristic Derivation and
Valuation
Lesson Overview
This lesson helps you to understand the concept of characteristic derivation. It
also describes the concept of valuation.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the derivation concepts
• Explain the valuation concepts
Business Example
The management of your company wants to implement a profitability accounting
application in the SAP system. As a member of the project team, you are supposed
to advise on the question of whether to implement CO-PA or EC-PCA in the SAP
system. You then will be responsible to implement the selected applications.
Mr. Udo, Mrs. Veloce, and Mrs. Schnell require profitability reports for
many characteristics, some of which are available on the selling and invoicing
transactions (the sales organization, sold-to, product, etc.), and some of which are
available only on master records (the product group, state, etc.). Mr. Udo requeststhat, for sales reports, the state and country should first of all be determined from
the goods recipient (if there is one for the CO-PA relevant transaction). If not, they
should be derived from the sold-to party. Mrs. Veloce is familiar with the customer
hierarchy that is defined in the Sales Order Management and insists on being able
to report along the lines of that hierarchy even in the Profitability Analysis. In
addition, she requires profitability reports on the special characteristic Strategic
Business Unit, which is only determined via the product group. This special
categorization of product groups is only used within CO-PA. The true freight costs
are not known at the time of invoicing but are known only at the period-end when
the invoices have been received from the freight vendors. These costs are not
applied in a costing-based way in FI, but are calculated in the profitability analysis.
This is why Mrs Schnell was able to estimate the expected final result for her plant
already before the end of the month. Mr Cash, who is responsible for company
planning, requests that sales quantities be planned with regard to the material
requirements in the profitability analysis. Here, price and cost information should
be read by the system and automatically applied to the planned quantities, so that
the respective revenues and cost of sales - and thus the profit - can be determined
with sufficient accuracy. The Product Costing module is being used. The detail
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TFIN22_2 Lesson: Introduction to Characteristic Derivation and Valuation
results are to be imported into CO-PA so that true cost-of-sales can be analyzed
extensively and different types of margins can be calculated and analyzed, such as
the margin after fixed costs and the margin after all costs.
For this purpose, an understanding about the characteristic derivation and
valuation concepts is required.
Characteristic Derivation: Central Points
• Some keys point about derivation:
– Derivation supplements or overwrites certain automatically mapped
characteristic values.
– A derivation strategy is a sequence of steps, where each step uses one
derivation technique to calculate one or more values for one or more
characteristics, respectively.
– Control attributes can be assigned to each step, such as conditions for
execution, reactions when unsuccessful, and overwrite authority.
– Some derivation steps are created by the system at generation time, of
which some are modifiable. Others are created by the configurator
from the beginning.
Evaluation: Central Points
• Some key points about valuation are:
– Valuation supplements the data being passed directly from transactions
into Controlling Profitability Analysis with calculated, retrieved, or
otherwise accessed values.
– A valuation strategy can contain CO-PA costing sheets, Sales Order
Management pricing procedures (in planning), product costing calls,
and user exit calls, in a sequence that can be customized.
– Valuation strategies must be assigned to record types, points of
valuation, and plan versions when applicable to be activated.
– Using valuation is optional. It is merely a tool that can be used in an
attempt to get the most complete and useful information out of CO-PA.
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Unit 2: Master Data TFIN22_2
Example of Characteristic Derivation and Valuation
Figure 16: Example: Example of the Characteristic Derivation and Valuation
Every CO-PA relevant activity in the SAP system (for example, billing) creates
line items in CO-PA. The data created in CO-PA are defined by automatic and
manual assignments as well as the configuration of the characteristic derivation
and the valuation.
For each sales order management transaction, the system automatically imports
the sales organization, distribution channel, division, customer, product, profit
center, business area, and any sales order management partners for each sales
order or invoice item. Notice that the values for all of these, except customer and
product, can be overwritten with derivation.
In addition to those values determined through the automatic mappings, derivation
can access additional information, such as characteristic values, both on and off
the originating transaction. For example, it could supply the sales district from the
invoice and the product group from the material master.
In addition to the values imported through the manual mappings, valuation can
import information that is off of the originating transaction as well. For example, it
could supply in-depth product cost breakdown information from Product Costing,
which is not available on the sales document.
All CO-PA-relevant transactions are affected by derivation configuration, and
some of these are affected potentially by valuation configuration, which is optional.
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TFIN22_2 Lesson: Introduction to Characteristic Derivation and Valuation
Lesson Summary
You should now be able to:• Explain the derivation concepts
• Explain the valuation concepts
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Unit 2: Master Data TFIN22_2
Lesson: Characteristic Derivation
Lesson Overview
This lesson helps you to understand the derivation strategy. In addition, it explains
how to evaluate derivation techniques.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the derivation strategy
• Evaluate derivation techniques
Business Example
The management of your company wants to implement a profitability accounting
application in the SAP system. As a member of the project team of your company,
you are supposed to provide advise on the question of whether to implement
CO-PA or EC-PCA in the SAP system. You then will be responsible to implement
the selected applications.
Mr. Udo, Mrs. Veloce, and Mrs. Schnell require profitability reports for
many characteristics, some of which are available on the selling and invoicing
transactions (the sales organization, sold-to, product, etc.), and some of which are
available only on master records (the product group, state, etc.). Mr. Udo requests
that, for sales reports, the state and country should first of all be determined fromthe goods recipient (if there is one for the CO-PA relevant transaction). If not,
they should be derived from the sold-to party. Mrs. Veloce is familiar with the
customer hierarchy that is defined in the Sales Order Management and insists
on being able to report along the lines of that hierarchy even in the Profitability
Analysis. In addition, she requires profitability reports on the special characteristic
“Strategic Business Unit”, which is only determined via the product group. This
special categorization of product groups has meaning only within CO-PA.
As a result, for reporting, sales organization, distribution channel, division,
sold-to, ship-to, and product, the information is required from each order/invoice
item. The product group and product hierarchy information is required from the
material master record. The country and state are required from either the ship-torecord or the sold-to record. The customer hierarchy information is required for
each business transaction (or simply „transaction") involving a customer. Product
groups are to be categorized into special categories called ‘strategic business
units’ for reporting.
For this purpose, the characteristic derivation strategy and techniques need to
be used.
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TFIN22_2 Lesson: Characteristic Derivation
Characteristic Derivation Concept
Figure 17: Characteristic Derivation Concept
For each CO-PA-relevant transaction, if the derivation strategy is complete,
the system tries to derive a characteristic value for each characteristic in the
operating concern. Notice that derivation is not always successful. If the systemcannot determine a characteristic value for a characteristic, then a blank, null, or
unassigned characteristic value is posted.
The total combination of (segment-level) characteristic values for a given
transaction consists of the definition of the relevant profitability segment.
The profitability segment is the account assignment object for the Profitability
Analysis.
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Unit 2: Master Data TFIN22_2
Derivation Strategy and Techniques
Figure 18: Derivation from a Customizing Viewpoint
A derivation strategy consists of a number of different steps, which derive
the different characteristic values. Each derivation step defines the logical
interrelationship between known source characteristics and the characteristics
to be derived.
The system automatically creates a standard derivation strategy for each operating
concern. This strategy contains the derivation steps for all the dependencies that
are already known between characteristics. You can then change this strategy to
meet the requirements of your organization. If you define your own characteristics
that need to be derived from other characteristics, you need to add your own
derivation steps to the standard strategy to define this derivation.
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TFIN22_2 Lesson: Characteristic Derivation
Figure 19: Options for Derivation Steps
The system goes through a sequence of steps in attempting to locate a characteristic
value for each characteristic for a COPA-relevant transaction. This step sequence
is known as the derivation strategy.
The steps are performed in a customizable sequence to maximize the possibilities
to locate or determine valid characteristic values. The following items can be
configured for each step:
• Conditions under which the step should be executed
• Whether or not initial values are allowed for source fields in a step
• Whether or not the step should overwrite an existing characteristic value
• Whether or not an error message should generate if the step is unsuccessful
Each step normally represents one of the customizable derivation techniques,
such as table lookups, derivation rules, region, product and customer hierarchies,
moves, clears, and enhancements. The values for one or more characteristics can
be determined in a single step.
Derivation occurs for every CO-PA-relevant transaction, including direct entry
into CO-PA and external data uploads into CO-PA. Note: For more information on
customer exit functions, see the Appendix.
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Unit 2: Master Data TFIN22_2
Figure 20: Standard Derivation of Organizational Units
Certain characteristics, such as division and profit center, have fixed derivation
steps. This means that the system automatically generates nonmodifiable steps
that may be used to determine their values. These may take the form of one of the
six standard derivation techniques or may be function calls.
You can use other derivation steps to overwrite the values determined through the
fixed derivation steps. This can be normally achieved with all characteristics,except for controlling area, company code, product, and customer. These have
fixed, nonmodifiable derivation.
The system incorporates fixed derivation to force, at high levels, or at least
enhance the possibility of reconciliation with data in other modules in the SAP
system, at other levels.
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TFIN22_2 Lesson: Characteristic Derivation
Figure 21: Derivation through Table Lookup
A table lookup is a derivation method used by CO-PA to access the characteristic
values from SAP master data tables when this information is not available on the
originating transaction. For example, an invoice may not contain the purchasing
group for a material that is being sold. Notice that CO-PA can capture this
information for the invoice item using a table lookup.
Table lookups can be performed when the key of the table to be accessed can be filled with the characteristic values that are already known to CO-PA for the
transaction. For example, a country value can be determined when a customer
is known. This is because the customer is the only key to the KNA1 table that
contains general customer information, such as addresses.
The ability to customize table lookup derivation allows the configurator to control
exactly which types of characteristic values are used to access other characteristic
values. For example, you can configure the table lookup for the characteristic
country to find the country value for the ship-to instead of the country value for
the sold-to.
Using table lookups, you can access entire field values or parts of field values for the fields in the tables in which keys can be filled with the known characteristic
values for transactions. For example, the derivation lookup for product hierarchy
could be configured to import the entire product hierarchy value or only the first
several characters of the hierarchy into CO-PA.
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Unit 2: Master Data TFIN22_2
Some table lookups are generated automatically on the basis of a characteristic‘s
definition. These are generated when the operating concern environment is
generated. Notice that the nonfixed lookups can be modified. Other tableslookups, such as the ones for user-defined characteristics must be created from
the beginning.
Figure 22: Derivation Rule
Derivation rules are used to determine characteristic values through user-defined
logic. They are frequently used with user-defined characteristics although they are
not limited to this application.
With derivation rules, characteristic values, known as target values, are determined
directly based on the values of other characteristic values, known as source values.
Similar to other derivation steps, derivation rules can be configured either to apply
for all situations or to only apply when certain conditions are met (for example,
only for sales organization 1000). Accordingly, you can also configure the
derivation rules to produce an error message when a characteristic value cannot bedetermined through the rule entries. You can also ignore the error and proceed.
In contrast to other derivation steps, derivation rule entries can be configured to
be either related to a specific interval or time, which is being time-dependent, or
applicable for all times, which is being time-independent. Derivation rules can be
set up in sequence with other derivation steps and methods to produce complex
derivation logic.
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TFIN22_2 Lesson: Characteristic Derivation
Figure 23: Derivation with Move and Clear
With a move, you can directly transfer a characteristic value or a part of the
characteristic value to another characteristic. Under certain conditions, you can
also move a constant to a characteristic.
In the above example, the sold-to value is copied into the ship-to value with the
move function if the ship-to field is originally not populated by any previous
derivation step. When certain conditions arise, the clear function is available to
clear a value from a characteristic. In addition, the employee value is cleared to
“not assigned” when the product is a specific value because the employees should
not get sales credit for certain items.
The system automatically generates a move derivation step to move the dummy
profit center value from EC-PCA into CO-PA if no profit center can be determined
by other steps.
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Unit 2: Master Data TFIN22_2
Customizing Monitor Derivation Analysis
Figure 24: Customizing Monitor: Derivation Analysis
The Customizing Monitor provides an overview of all derivation steps. Additional
functions are available when you use the SAP list viewer to display derivation
analysis. You can search for specific value fields and determine their use inderivation.
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TFIN22_2 Lesson: Characteristic Derivation
Exercise 4: Derivation
Exercise Objectives
After completing this exercise, you will be able to:
• Customize derivation techniques and place them in a sequence to obtain
characteristic values from desired sources for all CO-PA-relevant transactions
• Test and analyze the derivation strategy settings
Business Example
The country and area are required from either the ship-to record (if there is one)
or the sold-to record.
Product groups are to be categorized into strategic business units for reporting.
Your Sales Manager requires reports for the customer group and sales district and
would like to know whether the values for these fields can be read directly from
customer master and sales document tables.
Note: The term characteristic value refers to an actual individual quantity
defined for a particular characteristic. All data transferred to CO-PA
is checked against the valid characteristic values, which are stored in
check tables. These check tables can either already exist in the original
component of the characteristic or can be maintained manually in
the Profitability Analysis. The characteristic derivation describes the
determining of characteristic values for every business transaction that is
relevant for Profitability Analysis.
Task 1:
1. In the CO-PA application menu, display the check tables for each of the
following characteristics, and find two valid values for each characteristic:
Sales District:
Strategic Business Unit:
Task 2:Display the derivation strategy in the Customizing settings of the Profitability
Analysis. The first screen only shows user-defined derivation steps. You can
expand the display to view all derivation steps, including predefined derivation
steps.
1. Why can some derivation steps be modified and others cannot?
Continued on next page
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Unit 2: Master Data TFIN22_2
2. Display the derivation rule for the Strategic Business Unit characteristic.
What are the source fields?
In which application do the source fields originate?
3. Strategic Business Unit is a user-defined field in CO-PA.
Rule values have been defined that determine the valid characteristic value
combinations used to derive a new value, the strategic business unit. What is
the rule used to determine the CHEMFOOD strategic business unit?
4. Display the table lookup for the Customer Classification from Customer
characteristic. What is the table of origin for this characteristic?
Why are there no rule values for this characteristic?
Task 3:In the Customizing settings for Profitability Analysis, under Master Data→
Define Characteristic Derivation:
1. Display the MOVE step for the Ship-to Party characteristic.
What are the source and target fields?
An attribute has been maintained for this characteristic, to apply the
derivation rule only under certain conditions. What is the attribute for this
derivation step?
What is the purpose of this particular step?
Continued on next page
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TFIN22_2 Lesson: Characteristic Derivation
Task 4:
To test the derivation strategy, enter a line item for your sample customer and
the product P-100 using the transaction Simulate Evaluation. Select Derivation
to execute. As you can see, some of the fields have remained blank. Use the
derivation analysis to view the various derivation steps.
Posting Date: Today's date
Record Type: F
Point of valuation: 01
Legal view: X
Customer: T-CO05A##
Product: P-100
Plant: 1000
Sales Org.: 1000
Distribution Channel: 10
Company Code: 1000
1. The order reason field is blank. Why?
2. How did the system determine the “Customer Group” field?
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Unit 2: Master Data TFIN22_2
Solution 4: Derivation
Task 1:
1. In the CO-PA application menu, display the check tables for each of the
following characteristics, and find two valid values for each characteristic:
Sales District:
Strategic Business Unit:
a) In the CO-PA application menu, display the check tables for each
of the following characteristics, and find two valid values for each
characteristic:
Accounting → Controlling → Profitability Analysis → Master Data
→ Characteristic Values→ Display Characteristic Values→ All
Characteristics On/Off → referenced characteristics→ Sales District
→ Define Sales Districts:
Sales District:
Sales District: District Name
000001 Northern region
000002 Southern region
000003 Western region
000004 Eastern region
Strategic Business Unit:
Use the same menu path as above, but select Strategic Business Unit
under user-defined characteristics.
Strat.Business Unit Name:
CHEMAGRA Agricultural Chemicals
CHEMCHEM Chemicals
CHEMFOOD Food chemicalsCOMPINDU Industrial computers
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TFIN22_2 Lesson: Characteristic Derivation
Task 2:
Display the derivation strategy in the Customizing settings of the Profitability
Analysis. The first screen only shows user-defined derivation steps. You can
expand the display to view all derivation steps, including predefined derivation
steps.
1. Why can some derivation steps be modified and others cannot?
a) Display the derivation strategy table in the Customizing settings of
the Profitability Analysis. The first screen only shows user-defined
derivation steps. You can expand the display to view all derivation
steps, including predefined derivation steps.
IMG: Controlling → Profitability Analysis→ Master Data→ Define
Characteristic Derivation: View→ Display All Steps
Why can some derivation steps be modified and others cannot?
Nearly all fixed characteristics have programmed derivation steps that
cannot be changed for technical reasons, for example, the derivation of
the company code from the sales organization.
2. Display the derivation rule for the Strategic Business Unit characteristic.
What are the source fields?
In which application do the source fields originate?
a) Display the derivation rule for the Strategic Business Unit (SBU)
characteristic. What are the source fields?
Select the derivation rule Prod.Cat. + Industry→ SBU. Select Choose.
WWPRC Product Category BRSCH Industry Key
In which application do the source fields originate?
CO-PA
3. Strategic Business Unit is a user-defined field in CO-PA.
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Unit 2: Master Data TFIN22_2
Rule values have been defined that determine the valid characteristic value
combinations used to derive a new value, the strategic business unit. What is
the rule used to determine the CHEMFOOD strategic business unit?
a) Strategic Business Unit is a user-defined field in CO-PA.
Rule values have been defined that determine the valid characteristic
value combinations used to derive the strategic business unit. What is
the rule used to determine the CHEMFOOD strategic business unit?
Select the derivation rule Prod.Cat. + Industry→ SBU. Click
Maintain Rule Values.
Product category Industry key
SBU
CHEM FOOD
= CHEMFOOD
4. Display the table lookup for the Customer Classification from Customer
characteristic. What is the table of origin for this characteristic?
Why are there no rule values for this characteristic?
a) Display the table lookup for the Customer Classification from Customer
characteristic. What is the table of origin for this characteristic?
Select Table Lookup for customer classification from Customer and
then select : KNA1
Why are there no rule values for this characteristic?
This field is populated from the customer master general data
table. In this case, the Profitability Analysis derives the customer
classification directly from this table. That is why no special rules
(check tables) are required in the Profitability Analysis.
Task 3:
In the Customizing settings for Profitability Analysis, under Master Data→
Define Characteristic Derivation:
1. Display the MOVE step for the Ship-to Party characteristic.
What are the source and target fields?
An attribute has been maintained for this characteristic, to apply the
derivation rule only under certain conditions. What is the attribute for this
derivation step?
Continued on next page
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TFIN22_2 Lesson: Characteristic Derivation
What is the purpose of this particular step?
a) In the Customizing settings for Profitability Analysis, under Master
Data→ Define Characteristic Derivation:
Display the MOVE step for the Ship-to Party characteristic. What
are the source and target fields?
To display, click ALL derivation steps: View→ Display All Steps
Select the “move” step for Ship-to Party, and select “Choose”.
Source field: → CO-PA→ KNDNR→ Choose Customer.
Target field: → CO-PA→ KUNWE → Ship-to party
An attribute has been maintained for this characteristic, to apply the
derivation rule only under certain conditions. What is the attributefor this derivation step?
Select the Condition tab. This derivation step is only carried out if
the Ship-to field is blank.
What is the purpose of this particular step?
In this case, the Ship-to field is filled with the value in the Customer
field.
Task 4:
To test the derivation strategy, enter a line item for your sample customer andthe product P-100 using the transaction Simulate Evaluation. Select Derivation
to execute. As you can see, some of the fields have remained blank. Use the
derivation analysis to view the various derivation steps.
Posting Date: Today's date
Record Type: F
Point of valuation: 01
Legal view: X
Customer: T-CO05A##
Product: P-100
Plant: 1000
Sales Org.: 1000
Distribution Channel: 10
Company Code: 1000
1. The order reason field is blank. Why?
Continued on next page
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Unit 2: Master Data TFIN22_2
a) To test the derivation strategy, enter a line item for your sample
customer and the product P-100 directly in the costing-based
Profitability Analysis. Select Derivation to execute. As you can see,some of the fields have remained blank. Use the derivation analysis to
view the various derivation steps.
The order reason field is blank. Why?
IMG → Controlling → Profitability Analysis→ Tools→ Analysis
→ Valuation Simulation.
Record Type: F
Posting Date: Today
Point of valuation: 01
Choose Continue.
Customer: T-CO05A##
Product: P-100
Company Code: 1000
Plant: 1000
Sales Org.: 1000
Distribution Channel: 10
Select Derivation, then Extras→ Derivation Analysis. Select values
before/after, order reason is empty
Save the derivation step in the derivation analysis. The Customer
Order Reason field is empty, because the source field Customer
Order Number (initial) is empty. That means that the order reason is
derived from the Sales Order Document field. This is not a sales order
document, but a simulated derivation analysis. That is why the Order
Reason field cannot be created or derived from the simulation.
The derivation of the ORDER REASON field can be reproduced
in Customizing under the derivation rules. IMG→ Controlling →
Profitability Analysis→ Master Data→ Characteristic Values→
Define Characteristic Derivation: Display All Steps.
The order reason is derived per table look-up from the sales document.
Continued on next page
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TFIN22_2 Lesson: Characteristic Derivation
2. How did the system determine the “Customer Group” field?
a) How did the system determine the “Customer Group” field?
Select the icon next to the table lookup to view the Sales Office.
The source fields for this derivation step are Customer, Sales
Organization, Distribution Channel, and Division.
The system has derived the customer group from the customer master
record
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Unit 2: Master Data TFIN22_2
Lesson Summary
You should now be able to:• Explain the derivation strategy
• Evaluate derivation techniques
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TFIN22_2 Lesson: Valuation
Lesson: Valuation
Lesson Overview
This lesson helps you to understand valuation using the product cost information.
It also outlines the valuation using a CO-PA costing sheet.
Lesson Objectives
After completing this lesson, you will be able to:
• Understand valuation using the product cost information
• Outline valuation using a CO-PA costing sheet
• Use the Customizing Monitor to perform valuation analysis
Business Example
The management of your company would like to implement a profitability
accounting application in the SAP system. As a member of your the project team,
you are supposed to advise on the question of whether to implement CO-PA or
EC-PCA in the SAP system. You then will be responsible for implementing the
selected applications.
Mrs. Schnell has requirements for profitability reports along the lines of
many characteristics, some of which are available on the selling and invoicing
transactions, such as the sales organization, sold-to, and product, and some of
which are available only on master records, such as the product group and state.
True freight costs are not known at the time of invoicing but are known only at the
month-end when the invoices are received from the freight vendors. These costs
are not applied in a cost-based way in FI, but are calculated in the profitability
analysis. This is why Mrs. Schnell was able to estimate the expected final result
for her plant already before the end of the month. Mr. Cash, who is responsible
for company planning, requests that sales quantities be planned with regard to
the material requirements in the profitability analysis. Here, price and cost
information should be read by the system and automatically applied to the planned
quantities, so that the respective revenues and cost of sales - and thus the profit -
can be determined with sufficient accuracy. The Product Costing module is being
used, and the detail results are to be imported into CO-PA. This is to analyze truecost-of-sales extensively, and to analyze and calculate the types of margins, such
as the margin after fixed costs and the margin after all costs.
As a result, freight and packaging costs are to be estimated for each line item
on each order/invoice (transaction-based billing). Revenue and COGS are to be
projected automatically for the materials with planned quantities in aggregate. The
Detail Product Costing information is to be brought in for each line item on each
order/invoice (transaction-based billing).
For this purpose, the valuation strategy and techniques need to be used.
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Unit 2: Master Data TFIN22_2
Valuation Concept
Figure 25: Valuation Concept
In costing-based Profitability Analysis, you can configure a function known
as valuation to supplement the performance information provided directly by
a transaction. The additional information may be estimated, calculated, or
retrieved from a different source. For example, you can set your system so that
it automatically calculates the internal commissions and freight costs that are to
be expected in the respective business transaction, when you transfer billing data
into CO-PA. In this way, you can evaluate the expected profit from the business
transactions without all actual data having been posted. Similarly, you can access
the detailed product costing information.
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TFIN22_2 Lesson: Valuation
Figure 26: Valuation: Overview
Valuation can be used with either actual or planning data. It is often used in
Controlling Profitability Analysis (CO-PA) planning to access the pricing and
product cost information for the products that have planned quantities. This
enables the automatic calculation of projected revenue and cost-of-sales figures.
Valuation can be configured to function either in real-time, which means at the
time data is first posted to CO-PA, or periodically, which means at some later point
when manually triggered. The periodic evaluation provides advantages whenmany postings are executed, thereby causing a higher system load for real-time
evaluation. By putting off the evaluation to a later date, you ease the system.
Similarly, it gives the option of re-evaluating the posted data.
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Unit 2: Master Data TFIN22_2
Valuation Strategy and Techniques
Figure 27: Valuation Strategy
The valuation strategy is central to valuation configuration. A valuation strategy
may contain references to multiple valuation techniques, such as costing sheets,
user exits, and product costing information, which are to be applied to a given
COPA-relevant transaction.
You need to decide to what record types, F, A, B, C, and 0-9, and at what points,
known as points of valuation, each valuation strategy should apply. Similarly, if
a strategy is to be applied to planning data, the relevant planning version must
be specified.
The various valuation techniques that populate the value fields in different ways
are:
• With costing sheets, condition types are mapped to value fields.
• From Product Costing, cost components are mapped to value fields.
• Value fields are updated directly through user exits.
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TFIN22_2 Lesson: Valuation
Figure 28: Product Cost Estimates in Product Costing
The Product Cost Controlling (CO-PC) module is used to generate the product
cost estimates for materials. The results of a product cost estimate can be viewed
in different ways, such as by item, cost element, or cost component. Through
valuation, the product cost estimate information for CO-PC can be transferred into
CO-PA, through cost component values. This function can be used to import
extensive cost-of-sales information into CO-PA for flexible margin reporting.
In configuration, cost components are mapped to value fields. You can map each
component to its own value field or multiple components to a single value field.
You can also map the fixed and variable portions of a component to separate value
fields. This function exists so that cost-of-sales can be analyzed extensively in
CO-PA and multiple margin values can be calculated and analyzed in CO-PA.
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Unit 2: Master Data TFIN22_2
Figure 29: Valuation using Product Costing: Customizing (1)
Using a costing key, you can determine which cost estimate, meaning which
costing variant should be used with which validity date for valuation. By
assigning a costing key, you control which cost estimate, standard, modified
standard, or current cost estimate should be used in which case, depending on the
material, material type, or any other combination of characteristics.
If an entry exists for the material, this has priority over the entry for the material
type. The entry for the material type has priority over any entries defined for
other characteristics.
In the assignment lines, you determine which values of the cost component
structure are transferred to which value fields in the operating concern.
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TFIN22_2 Lesson: Valuation
Figure 30: Valuation using Product Costing: Customizing (2)
When you define a costing key, you can enter either a costing date or a period or
a value for the period indicator. Using the plan period indicator, you specify the
date for which the system should look for a valid material cost estimate in the
database, for Product Cost Controlling.
The following options are available for the plan period indicator:
0 for the future standard cost estimate.
1 for the current standard cost estimate.
2 for the past standard cost estimate.
3 for the standard cost estimate valid on the posting date.
4 for the standard cost estimate valid on the date of goods issue.
If you enter 0, 1, or 2 for the plan period indicator, the system reads the standard
cost estimate valid on the first day of the period. This refers to the future, current,
or past period for which the standard cost estimate is valid according to theentries in the valuation segment of the relevant material master record. If
you enter 3 or 4 for the plan period indicator, the system reads the standard cost
estimate valid on the given posting date or date of goods issue, regardless of
what is stored in the material master.
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Unit 2: Master Data TFIN22_2
Figure 31: Valuation using Product Costing: Customizing (3)
In addition to assigning the costing keys to products or material types, you can
assign the costing keys to any combination of characteristics. This allows greater
flexibility and control in using costing keys.
You can use up to three characteristics as source fields”, such as plant, product,
and group. In this way, you do not need to assign costing keys to one specificmaterial or material type. You can also assign costing keys to a combination
of different characteristics. This makes it possible to access the cost of goods
manufactured from different plants, which is useful if you want to use the costs
from the production plant when the product is sold by different sales plants.
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TFIN22_2 Lesson: Valuation
Figure 32: Valuation Using Costing Sheets
Costing sheets are a vehicle through which special values can be accessed or
calculated. They are the central piece to the condition technique, a method used
throughout SAP for performing calculations.
Costing sheets consist of a sequence of user-defined condition types, each of
which accesses a value or performs specific calculations, as dictated by thedefinitions of the condition types. Each condition type is mapped to a value field
in the operating concern.
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Unit 2: Master Data TFIN22_2
Figure 33: Condition Types - Condition Records
A condition type represents one step in a costing sheet. What calculation the
system carries out in that step depends on the following control indicators:
• Condition category
• Calculation type
• Condition class
• Scale basis
Calculation type: The calculation type determines how the system calculates
prices, reductions, or surcharges for a condition type. For example, it can specify
that a sales deduction should be dependent on the quantity sold or a value scale.
Scale basis: The scale basis determines how the system interprets the value or
quantity scale for a condition. Scales can be dependent on a quantity or a currency
amount.
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TFIN22_2 Lesson: Valuation
Figure 34: Valuation Using Costing Sheet: Customizing
Base condition types form the basis for calculations. They signify the value fields
that have already been populated through other means. These condition types
must have on their master record, a condition category of “K”, a calculation rule
of “B”, and a condition class of “B”.
Calculation condition types perform calculations on the lines in the costing sheets
that represent subtotals of amounts, such as base amounts. These condition types
actually populate the value fields with values. Notice that their definitions can
vary.
A calculation condition type is assigned an access sequence here with
corresponding condition records. The condition records contains deductions or
additions or absolute values that refer to certain combinations of characteristic
values.
For complete information about how to use the condition technique, refer to
pricing documentation or take a class on pricing or the condition technique.
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Unit 2: Master Data TFIN22_2
Customizing Monitor Valuation Analysis
Figure 35: Customizing Monitor Valuation Analysis
The value field analysis function enables you to analyze all the flows of actual
data to Profitability Analysis. You can find inconsistencies by looking at the
individual value fields. The report shows you what value flows the value field is
involved in and what condition types or cost elements it gets its values from. In
all, you can analyze the following actual value flows:
• Transfer of billing documents and incoming sales orders from Sales Order
Management.
• Direct postings from Financial Accounting and operations.
• Order and project settlement from Overhead Cost Orders (CO-OPA), and
the Project System Cost center assessment from Cost Center Accounting
(CO-OM-CCA).
• External data transfer.
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TFIN22_2 Lesson: Valuation
Figure 36: Analysis of Valuation
Valuation analysis is available to you when entering of plan or actual data. Notice
that you have the possibility of checking valuation by simulating the entry of
single line items. You can specify different valuation points in time and in this
way check different valuation strategies.
To analyze the valuation errors during billing document transfer, you can executea simulation of previously transferred billing documents and then analyze the
results of your valuation strategies. For further options for the simulation of
billing document transfers, refer to the section, Tools.
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Unit 2: Master Data TFIN22_2
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TFIN22_2 Lesson: Valuation
Exercise 5: Valuation
Exercise Objectives
After completing this exercise, you will be able to:
• Create a link to material costing, to obtain extensive information about the
key cost of manufacturing components, such as material and production labor
• Use costing sheets to determine specific values, such as the cost of packaging
materials
Business Example
Your controlling manager wants to ensure that sales and product managers
understand the key cost components for the manufactured products.
You want to determine the estimated costs for packing the finished products. This
is normally 1.50 for each unit.
Note: If you implement material costing in your SAP system, you can
transfer extensive information to CO-PA, to calculate and analyze the
estimated cost of sales and different contribution margins, such as the
margin after fixed costs, and the margin after all costs. Valuation signifies
the concept of supplementing the performance information provided
directly by a transaction and allows access to in-depth material costing
information.
Task 1:
In the Customizing settings for CO-PA, display the entries configured under
Costing Keys for Valuation.
What type of cost estimate is assigned to the costing key, I10?
For which period does the system access the material cost estimate?
Note: Costing keys can be assigned to an individual product, a material
type, or any characteristic, such as plant. This step defines the level at
which the system accesses the material costing information. You can
assign a valuation strategy to determine the transactions valuated. Toallocate the estimated production costs, such as materials and labor, to
CO-PA value fields, you can assign the cost components of a material
cost estimate to value fields.
1. Display the costing key assignment for product P-100. Which is the assigned
costing key?
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Unit 2: Master Data TFIN22_2
What is the point of valuation at which the system will use the costing key,
I10, for the product, P-100?
What is the costing type for which the system will use the costing key, I10,
for the product, P-100?
2. Display the currently released (status FR) standard cost estimate for the
product, P-100, in the Product Cost Planning component. Use the costing
variant, PPC1. Notice that the costing lot size for the product is 100.
What is the total raw material cost? What is the Cost Component number
and description?
3. Display the value field assignments for the cost component structure, 01.
To which value field is the raw material cost component assigned?
Task 2:
To test your valuation strategy, enter a line item for your customer directly in
CO-PA under Tools→ Analyze Value Flows→ Simulate Valuation. Fill in the
header data as required, and enter product P-100 in plant 1000 in the line item
entry screen. After carrying out derivation, enter 100 pieces in the Invoiced
Quantity field with a Revenue of $100,000. Carry out valuation.
Posting Date: Today's date
Record Type: F
Point of valuation 01
Customer: T-CO05A##
Sales Org.: 1000
Distribution Channel: 10
Company Code: 1000
Product: P-100
Plant: 1000
Invoiced Quantity: 100Revenue: 100,000
1. What is the value for Material Input ? Why?
2. Next, execute a valuation analysis: How was the “Material overheads”
field filled?
Save the line item and write down the document number.
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TFIN22_2 Lesson: Valuation
Carry out a valuation analysis:
Extras→ Valuation Analysis
How was the Material Overhead field populated?
Select the “Result of valuation” tab.
Sort according to the text. Step 10 for Valuation View I10.
Select the “Display Value Field Assignments” tab.
With the costing key I10, that is connected to the costing variant PPC1,
Value field VV250 was connected to cost component 080 in cost component
structure 01.
Save the line item and write down the document number.
Task 3:
The true costs for packaging and accessories are not known at the time of invoicing
but are known at the month-end when the packaging materials are posted and
allocated to various cost centers. These costs are not accrued during the month in
FI but they are to be estimated in CO-PA so that your Plant Manager can estimate
true profitability of all plants prior to the month-end. You can use valuation to
configure the system to calculate the estimated values for packaging supplies at
the time an invoice is billed.
1. Display the costing sheet under the Valuation settings in the IMG. What basis
is used to calculate estimated packaging (OUPA)?2. Display the condition record for the condition type, OUPA. Which condition
type is used?
3. What overhead type is used for OUPA?
4. In the plant, 1000, what rate does the system use to estimate the packaging
for one piece of the material, P-100?
Task 4:
1. To verify that the costing sheet has been configured correctly, enter another
line item in CO-PA. Enter your customer and all other associated information.Enter product P-100. In this entry you will manually enter 10 for the Invoiced
Quantity, 10,000 for Revenue, and 8,000 in the Cost of Goods Sold field.
Carry out valuation. What is the value for Dispatch Packaging ?
Task 5:
1. Create a conditions list for the existing condition records.
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Unit 2: Master Data TFIN22_2
2. Name your condition list Z#. For #, use the i-th letter of the alphabet that
corresponds to your group number.
# A B C D E F G H I K K M N O P R S T
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Name of the list: Z#
Header: Condition list group #
Choose selected fields
Highlight the PLANT field and continue via AND.
Highlight only table 506 (access to plant)
Continue via “continue to list structure”.
Select for positioning: Group header of the condition list.
Select for condition type: Position level of the condition list.
Select for the text: Key field and text.
Highlight “Selection”, but leave the column for required entries
unhighlighted!
Save your condition list.
When saving, create a realignment request with the name AC605GR## after
the system requests that you do so.
Execute your condition list.
Task 6:
You can use the Customizing Monitor to analyze in one step all the configuration
settings you have made. It also allows you to evaluate the existing settings, the
use of characteristics, and value fields.
1. Analyze the Customizing settings for the planning data entered manually.
If you decided to create a sales plan for the billed orders manually, how does
the system valuate your data, assuming you are using the version, 100?
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TFIN22_2 Lesson: Valuation
Field Name or Data Type Values
Point of Valuation 03
Plan Version 100
Record Type Billing
2. Next, you try to establish where the characteristic, WWSBU, is used in your
client. Which origin and target fields are assigned in this step? Use the
Customizing Monitor to establish this.
Reports:
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Unit 2: Master Data TFIN22_2
Solution 5: Valuation
Task 1:
In the Customizing settings for CO-PA, display the entries configured under
Costing Keys for Valuation.
What type of cost estimate is assigned to the costing key, I10?
For which period does the system access the material cost estimate?
Note: Costing keys can be assigned to an individual product, a material
type, or any characteristic, such as plant. This step defines the level at
which the system accesses the material costing information. You can
assign a valuation strategy to determine the transactions valuated. To
allocate the estimated production costs, such as materials and labor, to
CO-PA value fields, you can assign the cost components of a material
cost estimate to value fields.
1. Display the costing key assignment for product P-100. Which is the assigned
costing key?
What is the point of valuation at which the system will use the costing key,
I10, for the product, P-100?
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TFIN22_2 Lesson: Valuation
What is the costing type for which the system will use the costing key, I10,
for the product, P-100?
a) In the Customizing settings for CO-PA, display the entries configured
under Costing Keys for Valuation.
IMG: Controlling → Profitability Analysis→ Master Data→
Valuation→ Set Up Valuation Using Material Cost Estimate→
Define Access to Standard Cost Estimates
What type of cost estimate is assigned to the costing key, I10?
Select I10 and Details:
Costing Variant, PPC1, which is the Standard Cost Estimate
For which period does the system access the material cost estimate?
Released standard cost estimate matching goods issue date.
Note: Costing keys can be assigned to an individual product,
a material type, or any characteristic, such as a plant. This
step defines the level at which the system accesses the
product-costing information. You can assign a valuation
strategy to determine the transactions valuated. To allocate the
estimated production costs, such as materials and labor, to
CO-PA value fields, you can assign the cost components of a
material cost estimate to value.
Display the costing key assignment for product P-100.
Which is the assigned costing key?
IMG: Controlling → Profitability Analysis→ Master Data→
Valuation→ Set Up Valuation Using Material Cost Estimates→
Assign Costing Keys to Products
Product, P-100, is assigned to the costing key, I10.
What is the point of valuation at which the system will use the costing
key, I10, for the product, P-100?
For real-time actual data transfer. PV = 1
What is the record type for which the system will use the costing key,
I10, for the product, P-100?
For the record type, A, incoming sales orders, and F, billed sales
orders.
2. Display the currently released (status FR) standard cost estimate for the
product, P-100, in the Product Cost Planning component. Use the costing
variant, PPC1. Notice that the costing lot size for the product is 100.
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Unit 2: Master Data TFIN22_2
What is the total raw material cost? What is the Cost Component number
and description?
a) Display the currently released (status FR) standard cost estimate for the
product, P-100, in the Product Cost Planning component.
Accounting → Controlling → Product Cost Controlling → Product
Cost Planning → Material Costing → Cost Estimate with Quantity
Structure→ Display
Field Name or Data Type Values
Material P-100
Plant 1000
Costing Variant PPC1Costing Version 1
Date Leave Default
Click Find Cost Estimates (Binoculars icon) and make sure the
costing status is set to FR. Choose Execute.
After you have accessed the product cost estimate, click the Cost
Component icon on the toolbar. Click the Cost Comps icon (bottom
right).
What is the total raw material cost? What is the Cost Component
number and description?
3. Display the value field assignments for the cost component structure, 01.
To which value field is the raw material cost component assigned?
a) Next, display the value field assignments for cost component structure
01. To which value field is the “raw material” cost component assigned?
IMG: Controlling → Profitability Analysis→ Master Data→
Valuation→ Set Up Valuation Using Material Cost Estimate→
Assign Value Fields
Use the cost component layout 01.
Cost component, 10, Raw Materials is assigned to Value Field,
VV150, Material Input .
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TFIN22_2 Lesson: Valuation
Task 2:
To test your valuation strategy, enter a line item for your customer directly in
CO-PA under Tools→ Analyze Value Flows→ Simulate Valuation. Fill in the
header data as required, and enter product P-100 in plant 1000 in the line item
entry screen. After carrying out derivation, enter 100 pieces in the Invoiced
Quantity field with a Revenue of $100,000. Carry out valuation.
Posting Date: Today's date
Record Type: F
Point of valuation 01
Customer: T-CO05A##
Sales Org.: 1000
Distribution Channel: 10
Company Code: 1000
Product: P-100
Plant: 1000
Invoiced Quantity: 100
Revenue: 100,000
1. What is the value for Material Input ? Why?
a) To test your valuation strategy, enter a valuation simulation for your
customer directly in CO-PA. Fill in the header data, as required, and
enter the product P-100 in plant 1000 in the entry screen. After carrying
out derivation, enter 100 pieces in the “Invoiced Quantity” field with a
revenue of 100,000. Carry out valuation.
Accounting → Controlling → Profitability Analysis→ Tools→
Analyze Value Flows→ Simulate Evaluation.
Field Name or Data Type Values
Posting Date Today's date
Record Type F
Select Continue: Tab “Characteristics”
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Unit 2: Master Data TFIN22_2
Field Name or Data Type Values
Customer T-CO05A##
Product P-100
Distribution Channel 10
Plant 1000
Sales organization 1000
Company code 1000
Select the Value fields tab.
Field Name or Data Type Values
Invoiced Quantity 100
Revenue 100000
Select the Origin data tab.
Field Name or Data Type Values
Goods Issue Date Today's date
Select Valuation
What is the value for Material Input ? Why?
Compare this with the product costing. The standard cost estimate
for product P-100 in online valuation was assigned to CO-PA via
the costing key. In addition, the Material Input value field has been
mapped to cost component 01 of the cost estimate.
2. Next, execute a valuation analysis: How was the “Material overheads”
field filled?
Save the line item and write down the document number.
Carry out a valuation analysis:
Extras→ Valuation Analysis
How was the Material Overhead field populated?
Select the “Result of valuation” tab.
Sort according to the text. Step 10 for Valuation View I10.
Select the “Display Value Field Assignments” tab.
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TFIN22_2 Lesson: Valuation
With the costing key I10, that is connected to the costing variant PPC1,
Value field VV250 was connected to cost component 080 in cost component
structure 01.
Save the line item and write down the document number.
a)
Task 3:
The true costs for packaging and accessories are not known at the time of invoicing
but are known at the month-end when the packaging materials are posted and
allocated to various cost centers. These costs are not accrued during the month in
FI but they are to be estimated in CO-PA so that your Plant Manager can estimate
true profitability of all plants prior to the month-end. You can use valuation to
configure the system to calculate the estimated values for packaging supplies atthe time an invoice is billed.
1. Display the costing sheet under the Valuation settings in the IMG. What basis
is used to calculate estimated packaging (OUPA)?
a) The true costs for packaging and accessories are not known at the
time of invoicing but are known at the month-end when the packaging
materials are posted and allocated to the various cost centers. These
costs are not accrued during the month in FI but they are to be estimated
in CO-PA so your plant manager can estimate true profitability for her
plants prior to the month-end. You can use valuation to configure the
system to calculate the estimated values for packaging supplies at thetime an invoice is billed.
Display the costing sheet under the Valuation settings in the IMG. What
basis is used to calculate estimated packaging (OUPA)?
IMG: Controlling → Profitability Analysis→ Master Data→
Valuation→ Set Up Conditions and Costing Sheets→ Create
Condition Types and Costing Sheets.
From the Surcharge/reduction list, select the condition type OUPA
(double click).
The addition is calculated quantity-dependent with the calculation
type..
Select→ Records for Cond. Type. The quantity-related addition
is 3.00 per pc.
Hint: The quantity field assigned to the valuation strategy is
used automatically .
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Unit 2: Master Data TFIN22_2
2. Display the condition record for the condition type, OUPA. Which condition
type is used?
a) Display the condition record for the condition type, OUPA. Which
condition type is used?
IMG: Controlling → Profitability Analysis→ Master Data→
Valuation→ Set Up Conditions and Costing Sheets→ Create
Condition Types and Costing Sheets. Select OUPA from the list of
“pricing procedures” in the table on the upper left of the screen.
The condition type is Surcharge/Reduction.
3. What overhead type is used for OUPA?
a) What overhead type is used for OUPA?
This condition type is quantity-based.
4. In the plant, 1000, what rate does the system use to estimate the packaging
for one piece of the material, P-100?
a) In the plant 1000, what rate does the system use to estimate packaging
for one piece of the material, P-100?
Select CondRcrds-Access and display the condition record for plant
1000.
Execute→ Choose Plant 1000→ Display.
Using this condition record, the packaging costs 3 per unit.
Task 4:
1. To verify that the costing sheet has been configured correctly, enter another
line item in CO-PA. Enter your customer and all other associated information.
Enter product P-100. In this entry you will manually enter 10 for the Invoiced
Quantity, 10,000 for Revenue, and 8,000 in the Cost of Goods Sold field.
Carry out valuation. What is the value for Dispatch Packaging ?
a) To verify that the costing sheet has been configured correctly, enter
another line item in CO-PA. Enter your customer and all other
associated information. Enter product P-100. In this entry you will
manually enter 10 for the Invoiced Quantity, 10,000 for Revenue, and
8,000 in the Cost of Goods Sold field. Carry out valuation. What is the
value for Dispatch Packaging ?
What value appears in the Dispatch Packaging field? A rate of 30
was calculated, based on the costing sheet.
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TFIN22_2 Lesson: Valuation
Task 5:
1. Create a conditions list for the existing condition records.
a) SAP Menu→ Accounting → Controlling → Profitability Analysis →
Master Data→ Condition Lists
2. Name your condition list Z#. For #, use the i-th letter of the alphabet that
corresponds to your group number.
# A B C D E F G H I K K M N O P R S T
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Name of the list: Z#
Header: Condition list group #
Choose selected fields
Highlight the PLANT field and continue via AND.
Highlight only table 506 (access to plant)
Continue via “continue to list structure”.
Select for positioning: Group header of the condition list.
Select for condition type: Position level of the condition list.
Select for the text: Key field and text.
Highlight “Selection”, but leave the column for required entries
unhighlighted!
Save your condition list.
When saving, create a realignment request with the name AC605GR## after
the system requests that you do so.
Execute your condition list.
a)
Task 6:
You can use the Customizing Monitor to analyze in one step all the configuration
settings you have made. It also allows you to evaluate the existing settings, the
use of characteristics, and value fields.
1. Analyze the Customizing settings for the planning data entered manually.
Continued on next page
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Unit 2: Master Data TFIN22_2
If you decided to create a sales plan for the billed orders manually, how does
the system valuate your data, assuming you are using the version, 100?
Field Name or Data Type Values
Point of Valuation 03
Plan Version 100
Record Type Billing
a) You can use the Customizing Monitor to analyze in one step all the
configuration settings you have made. It also allows you to evaluate the
existing settings, the use of characteristics, and value fields.
Analyze the Customizing settings for the planning data entered
manually.
IMG → Controlling → Profitability Analysis→ Tools→ Analysis
→ Check Customizing Settings
Choose Overview of Valuation :
If you decided to create a sales plan for the billed orders manually,
how does the system valuate your data, assuming you are using the
version, 100?
Field Name or Data Type Values
Point of Valuation 03
Plan Version 100
Record Type Billing Document
Execute.
The system first accesses the Costing Sheet, COPA10, and then the
Costing Sheet, ACT001. It then looks for information about material
cost estimates and finally, it accesses a user exit.
2. Next, you try to establish where the characteristic, WWSBU, is used in your
client. Which origin and target fields are assigned in this step? Use theCustomizing Monitor to establish this.
Continued on next page
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TFIN22_2 Lesson: Valuation
Reports:
a) You now try to establish where the WWSBU characteristic is used in
your client. Which origin and target fields are assigned in this step?
Use the Customizing Monitor to establish this.
IMG → Controlling → Profitability Analysis→ Tools→ Analysis
→ Check customizing settings
Choose Where-Used List .
Field Name or Data Type Values
Characteristic WWSBU
Client Current Client
Select Execute, and then Information System→ Reports→
Costing-Based
Reporting: IDES-300, IDES-310 – IDES-314
(may vary)
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Unit 2: Master Data TFIN22_2
Lesson Summary
You should now be able to:• Understand valuation using the product cost information
• Outline valuation using a CO-PA costing sheet
• Use the Customizing Monitor to perform valuation analysis
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TFIN22_2 Unit Summary
Unit Summary
You should now be able to:
• Explain the derivation concepts
• Explain the valuation concepts
• Explain the derivation strategy
• Evaluate derivation techniques
• Understand valuation using the product cost information
• Outline valuation using a CO-PA costing sheet
• Use the Customizing Monitor to perform valuation analysis
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Unit Summary TFIN22_2
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TFIN22_2 Test Your Knowledge
Test Your Knowledge
1. supplements automatically mapped characteristic
values. Fill in the blanks to complete the sentence.
2. What all can a valuation strategy contain?
3. supplements the data being passed directly from
transactions into CO-PA with calculated, retrieved, or otherwise accessed
values.
Fill in the blanks to complete the sentence.
4. What is a derivation strategy?
5. A consists of a number of different
steps, which derive different characteristic values.
Fill in the blanks to complete the sentence.
6. Characteristic derivation signifies the process to determine the characteristic
values for all CO-PA characteristics.
Determine whether this statement is true or false.
□ True
□ False
7. What is a table lookup?
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Test Your Knowledge TFIN22_2
8. The system automatically creates a standard derivation strategy for each
operating concern.
Determine whether this statement is true or false.
□ True
□ False
9. What is the Product Costing module used for?
10. The scale basis determines how the system interprets the value or quantity
scale for a condition. These scales can be dependent on a
or a .
Fill in the blanks to complete the sentence.
11. Identify the actual value flows that can be analyzed using the value field
analysis function.
Choose the correct answer(s).
□ A Transfer of billing documents
□ B Incoming sales orders from Sales and Distribution
□ C Direct postings from Financial Accounting and Materials
Management
□ D Actual costs
12. Using a , you can determine which cost estimate
should be used with which validity date for valuation.
Fill in the blanks to complete the sentence.
13. What do costing sheets consist of?
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TFIN22_2 Test Your Knowledge
14. The value field analysis function enables you to analyze all the flows of
actual data to Profitability Analysis.
Determine whether this statement is true or false.
□ True
□ False
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Test Your Knowledge TFIN22_2
Answers
1. Derivation supplements automatically mapped characteristic values.
Answer: Derivation
2. What all can a valuation strategy contain?
Answer: A valuation strategy can contain CO-PA costing sheets, SD pricing
procedures, product costing calls, and user exit calls in a sequence that can
be customized.
3. Valuation supplements the data being passed directly from transactions intoCO-PA with calculated, retrieved, or otherwise accessed values.
Answer: Valuation
4. What is a derivation strategy?
Answer: A derivation strategy is a sequence of steps, where each step uses
one derivation technique to calculate one or more values for one or more
characteristics, respectively.
5. A derivation strategy consists of a number of different steps, which derivedifferent characteristic values.
Answer: derivation strategy
6. Characteristic derivation signifies the process to determine the characteristic
values for all CO-PA characteristics.
Answer: True
Characteristic derivation signifies the process to determine characteristic
values for all CO-PA characteristics.
7. What is a table lookup?
Answer: A table lookup is a derivation technique that is utilized by CO-PA
to access the characteristic values from SAP master data tables.
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TFIN22_2 Test Your Knowledge
8. The system automatically creates a standard derivation strategy for each
operating concern.
Answer: True
The system automatically creates a standard derivation strategy for each
operating concern. This strategy contains the derivation steps for all the
dependencies that are already known between characteristics. You can then
change this strategy to meet your organization's requirements.
9. What is the Product Costing module used for?
Answer: The Product Cost Controlling (CO-PC) module is used to generate
the product cost estimates for materials.
10. The scale basis determines how the system interprets the value or quantity
scale for a condition. These scales can be dependent on a quantity or a
currency amount.
Answer: quantity, currency amount
11. Identify the actual value flows that can be analyzed using the value field
analysis function.
Answer: A, B, C
The value field analysis function enables you to analyze the actual value
flows, such as transfer of billing documents, incoming sales orders from
Sales and Distribution, direct postings from Financial Accounting and
Materials Management, and external data transfer.
12. Using a costing key, you can determine which cost estimate should be used
with which validity date for valuation.
Answer: costing key
13. What do costing sheets consist of?
Answer: Costing sheets consist of a sequence of user-defined condition
types, each of which accesses a value or performs specific calculations, as
dictated by the definitions of the condition types.
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Test Your Knowledge TFIN22_2
14. The value field analysis function enables you to analyze all the flows of
actual data to Profitability Analysis.
Answer: True
The value field analysis function enables you to analyze all the flows of
actual data to Profitability Analysis. You can find inconsistencies by looking
at individual value fields.
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Unit 3Actual Data
Unit Overview
This unit explains the flow of actual data. It explains condition types and the
transfer and allocation of costs. In addition, it provides an overview of settlement
orders and discusses direct and automatic posting, variance calculation, andschedule manager.
Unit Objectives
After completing this unit, you will be able to:
• Explain the flow of actual data in CO-PA
• List the sources of value fields
• Explain the transfer and allocation of costs
• Explain the settlement of orders
Unit Contents
Lesson: Flow of Actual Data...................................................106Lesson: Transfer of Overhead ................................................ 111
Exercise 6: Cost Center Assessment....................................121
Exercise 7: Internal Orders................................................127Exercise 8: Activity Allocation.... ... .. .. ... .. ... ... .. ... .. ... .. ... .. ... ... 135
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Unit 3: Actual Data TFIN22_2
Lesson: Flow of Actual Data
Lesson Overview
This lesson should provide you with an understanding of the value flows in the
Profitability Analysis. Furthermore, you will become familiar with the steps
required to prepare the Profitability Analysis for actual value flows.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the flow of actual data in CO-PA
• List the sources of value fields
Business Example
The management of your company wants to implement a profitability accounting
application in the SAP system. As a member of the project team, you are supposed
to advise on the question of whether to implement CO-PA or EC-PCA in the SAP
system. You then will be responsible to implement the selected applications.
Your corporate controller asks you to explain the differences in the actual value
flows in the costing-based and account-based profitability analysis. Your Japanese
sales manager is very familiar with the sales order process. He asks you to explain
at what point data is posted to CO-PA. Furthermore, he wants to know what order
data are specified in CO-PA.
In order to be able to allocate completely the spending levels for research and
development that are currently collected at the production group level via internal
orders, Mr. Cash tries to find out whether the internal orders can be calculated in
CO-PA. The logistics department in your company would like to allocate costs
across the two manufacturing plants and the distribution centers in Canada, the
US, and Japan. They can track the services they provided at the division level and
want to ensure that Logistics costs are included in the contribution margin reports.
Your Marketing department has spent an extensive amount of time training the
world wide sales force and product management on the advantages of the new
'Blue Bicycle' product line. They have tracked training hours and want to allocatecosts to all the products within the “Blue Bicycle” product group. The product
manager for Taiwan has been informed of price increases for bicycle seats which
are purchased externally, and wonders how that will affect contribution margins.
He also wants to analyze the cost of production variances due to the scrap and use
of reflectors for the three models within the ‘Blue Bicycle’ product group.
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TFIN22_2 Lesson: Flow of Actual Data
Value Flows in Actual: Overview and Results
Figure 37: Flows of Actual Values - Overview
Revenues and discounts are transferred to profitability segments in Profitability
Analysis at the point of billing in Sales Order management. Quantities sold are
valuated at the same time with the standard cost of goods manufactured accordingto the cost component split from Product Cost Controlling (CO-PC).
In Overhead Cost Controlling, primary postings are posted to the objects
in Overhead Cost Controlling and allocated to the cost object by the most
source-related means available. The actual cost of goods manufactured is
also allocated to the cost object, and the cost centers that perform the activity
are credited. From the viewpoint of Profitability Analysis, this leads to under
absorption or over absorption for the cost centers performing the activity and
production variances for the corresponding cost objects, such as production orders.
Production variances: The difference between the actual costs of goods
manufactured and the standard costs determined for cost objects, in this case
production orders, are divided into variance categories and settled to profitabilitysegments.
Overhead costs remaining on the Overhead Cost Controlling objects are allocated
to the originating profitability segments.
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Unit 3: Actual Data TFIN22_2
Figure 38: Flow of Actual Values – Results
The method of determining period operating results in Profitability Analysis is
based on the assumption that the success of a company can be measured primarily
on the basis of its transactions with other companies. The aim is to supply the
sales, marketing, product management, controlling, and corporate planning teams
with decision-support information.
This sales-oriented approach in Controlling Profitability Analysis means that no
contribution to the success of the organization is made until a sales transaction is
completed. As a result, the products sold are transferred to CO-PA in accordance
with the cost of sales accounting method and provide the information about the
sales revenue and sales deductions.
This net revenue is compared with the cost of sales. The costs consist of the cost
of goods manufactured, products sold, or services rendered in addition to any
production variances known.
To complete your profitability data, you can also assign overhead costs to
profitability segments in the course of your period-end closing activities.
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TFIN22_2 Lesson: Flow of Actual Data
Sources of Value Fields
Figure 39: Sources of Value Fields
The value fields in the costing-based CO-PA contain the amounts and quantitiesthat you want to report on. They represent the finest level of detail at which costs
and revenues are broken down. One of the most important tasks in Customizing
for the costing-based CO-PA is to assign your costs and revenues to the required
value fields. This enables you to calculate the contribution margins that your
organization requires in the Information System.
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Unit 3: Actual Data TFIN22_2
Lesson Summary
You should now be able to:• Explain the flow of actual data in CO-PA
• List the sources of value fields
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TFIN22_2 Lesson: Transfer of Overhead
Lesson: Transfer of Overhead
Lesson Overview
This lesson helps you understand the transfer and allocation of costs. It also
explains settlement of orders.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the transfer and allocation of costs
• Explain the settlement of orders
Business Example
The management of your company would like to implement a profitability
accounting application in the SAP system. As a member of your the project team,
you are supposed to advise on the question of whether to implement CO-PA or
EC-PCA in the SAP system. You then will be responsible for implementing the
selected applications.
Your corporate operations department would like to allocate costs across the two
manufacturing plants and the distribution centers in Canada, the US, and Japan.
They can track the services they provided at the division level and want to ensure
that the Logistics costs are included in the contribution margin reports.
For this reason, you need to execute allocations and settlements of overhead costs.
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Unit 3: Actual Data TFIN22_2
Transfer and Activity Allocation
Figure 40: Transfer of Overhead Costs: Overview
To show in Profitability Analysis all the costs incurred in Overhead Costs
Controlling, you can transfer to Controlling Profitability Analysis (CO-PA) the
particular overhead costs for the cost centers and the business processes that are
not allocated to the inventory. This can be done using periodic assessment.
In addition, you can execute a direct or indirect allocation of internal activities
into CO-PA for Cost Centers and business processes. Along wíth the sender
(cost center or process) and the receiver (profitability segment), you enter the
quantity of the activity performed and valuate it with the planned price of the
activity type. The amount that is arrived at is credited to the sender and debited
to the profitability segment receiving the quantity. The amount that is arrived at
is credited to the sender and debited to the profitability segment receiving the
quantity. This means that a transport activity can be directly posted to particular
customers without the need to be posted to a cost center or an order.
If you use the cost component split in Cost Center Accounting or Activity-Based
Costing for price calculation, you can update the prices divided into cost
components during allocations to Profitability Analysis.
Credit object Which time basis
Cost Center Assessment CostCenter Periodical costs
Direct activity allocation Cost center Quantity Price ad-hoc
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TFIN22_2 Lesson: Transfer of Overhead
Indirect activity allocation Cost center Quantity Price periodic
Process assessment Process costs periodic
Template allocation Process Quantity Price periodic
Figure 41: Activity Allocation
You can transfer overhead costs from Cost Center Accounting either on an
activity-allocation or a periodic basis. You can transfer the activities either
directly or indirectly to Profitability Analysis.
You can use a PA transfer structure to control the secondary cost element of
activity allocation in the value fields for costing-based profitability analysis.
You can transfer the cost component split of the prices for each Cost Center to
CO-PA. To do this, you must activate the respective settings in Customizing and
then enter the cost elements in the various value fields.
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Unit 3: Actual Data TFIN22_2
Figure 42: Assessing Cost Center and Process Costs
The Overhead Cost Controlling Activity-Based Costing (CO-OM-ABC)
application component provides an alternative form of overhead control that is
particularly useful when indirect activities generate a large share of the value
added to products. It uses cost drivers to allocate the internal activities to the
overhead processes, which can then be transferred to profitability segments
using the process assessment function. Reference values for the transfer can be
quantities and values posted in CO-PA or additional cost driver information, suchas the number of sales orders created.
The assessment of cost center costs function allows you to transfer the variances
in production cost centers as well as the costs in sales and administrative cost
centers to Profitability Analysis.
The cost centers and processes are credited by the amount allocated. As a result,
all costs can only be allocated one time. You assess cost center and process costs
in the same way as done within Overhead Cost Controlling, which is by defining
cycles and executing them on a periodic basis. These cycles contain the control
information for the assessment and can be maintained in Customizing.
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TFIN22_2 Lesson: Transfer of Overhead
Figure 43: Defining and Executing an Assessment Cycle
A cycle controls how assessment is processed. It contains all the relevant
information about the senders, receivers, sender rules, receiver rules, and tracing
factors. Each cycle can contain a number of segments. The segment describes a
combination of senders and receivers that are to be processed together.
In theory, you could create one cycle for transferring all the overhead costs to
Profitability Analysis. Notice that for performance reasons as well as for technical
ones, it is a good idea to create several cycles and process them sequentially in
the order entered.
You should divide your assessment into separate cycles if you want to allocate
the different areas of your organization to CO-PA at different times. This also
has the advantage that when errors or changes occur, you only need to repeat
the affected cycles.
A cycle can contain the sender cost centers or sender processes from one
controlling area and can use the values from either costing-based or account-based
Profitability Analysis as tracing factors.
The sender cost centers or processes are credited in the assessment cost element
specified in the segment of the cycle.
The receiver is defined by a combination of characteristic values, which means a
profitability segment. The values are debited to the profitability segment using the
assessment cost element, such as account-based CO-PA and value fields, such as
costing-based CO-PA, which you specified for each segment of the cycle.
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Unit 3: Actual Data TFIN22_2
Figure 44: Allocating Processes
In the SAP system, you allocate the process costs incurred for individual
profitability segments, such as a sales organization, to Profitability Analysis.
Notice that here you transfer the valuated process quantities and not the activity
type quantities as with cost centers.
When you create the process allocation, you can specify a profitability segment as
the receiver by selecting the Profit segment field. Then, when you press ENTER,the system displays a dialog box in which you can specify the characteristic values
to which you want to allocate the process.
The process quantity is then valuated using the planned price for that process and
credited to the cost center as actual data with the allocation cost element that was
assigned to the relevant business process.
In account-based CO-PA, the costs are debited with the same allocation cost
element. For costing-based CO-PA, you need to assign this allocation cost element
to the required value field in the PA transfer structure CO.
In dynamic process allocation, you can determine to a great extent, which
profitability segment used the process and, as a result, should receive the processcosts. In this case, you can use a process template to define the formulae and
functions that select the cost drivers from Profitability Analysis or other sources to
assign the costs most accurately to their cause.
In Customizing, you assign this process template to characteristics, which are used
to select the cost drivers. Then, you need to assign update characteristics, which
ultimately determine the profitability segments to which the business process
costs are allocated.
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TFIN22_2 Lesson: Transfer of Overhead
Settlement of Orders
Figure 45: Settlement of Orders
In the SAP system, you settle internal orders, sales orders, projects, as well
as production orders, and run schedules with production cost collectors to
profitability segments. These objects are used for the various purposes that are
relevant to Profitability Analysis.
• Internal orders and projects can be used to control the costs of an internal
activity, such as the costs of an advertising campaign. The costs of the
activity are posted to the order and collected there. At the end of the activity,
they are settled to the appropriate profitability segments, such as the product
range and sales area.
• You can also use Management Accounting orders to calculate the anticipated
values to be able to evaluate the accuracy of your accrual method. First,
you credit the accrual costs calculated in CO-PA to a special cost order for
accruals, currently by manual posting only. When the costs are actually
incurred, they are posted to that order as well so that the difference between
the anticipated costs and the actual costs can be displayed at the order level.
• A third possible use of internal orders or projects is in make-to-order
manufacturing. If you are handling sales orders, a customer project or a
Management Accounting order to which revenue postings are allowed, you
can post costs, such as production costs and S costs, as well as revenue and
sales deductions to the order or project. When the product is complete, the
costs and revenues can be settled to Profitability Analysis. You can also
transfer the accrued values that are particularly important for progress billing.
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Unit 3: Actual Data TFIN22_2
Figure 46: Settling Orders - Customizing (1)
In a settlement profile, you define which receivers are allowed for order settlement.
You define a default settlement structure and a default PA transfer structure. When
you create an order, you need to specify an order type. The system uses this order
type to determine which settlement profile and, as a result, which settlement
structure and PA transfer structure to use.
In account-based CO-PA, costs are settled to the settlement cost element specified
in the settlement structure.
In costing-based CO-PA, costs are settled from the original cost elements to the
value fields to which they are assigned in the PA transfer structure.
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TFIN22_2 Lesson: Transfer of Overhead
Figure 47: Settling Orders - Customizing (2)
The PA transfer structure contains the assignment of costs and revenues to
the value fields in costing-based CO-PA. PA transfer structures are used in
order settlement, direct postings from FI, and internal activity allocations in
Management Accounting.
A PA transfer structure consists of any number of “assignment lines”. Each
assignment line contains the assignment of one interval or a group of cost or
revenue elements to the required value field.
A PA transfer structure must meet the following criteria:
• It must be complete: All the cost and revenue elements that can receive costs
or revenues must be assigned to a value field in the PA transfer structure.
• The assignments must be unique: Each cost or revenue element can only
occur one time within a PA transfer structure.
Settlement structure: During settlement, the costs incurred under the primary and
secondary cost elements by a sender are allocated to one or more receivers. When
you settle by cost element, you settle using the appropriate original cost element.
An allocation structure consists of one or several settlement assignments. Anassignment defines which costs (Origin: Cost element groups from debit cost
elements) are to be settled to which receiver type (for example, cost center or
order). You have two alternatives in settlement assignment:
• You can assign the debit cost element groups to a settlement cost element.
• You can settle by cost element, which means the debit cost element is the
settlement cost element.
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Unit 3: Actual Data TFIN22_2
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TFIN22_2 Lesson: Transfer of Overhead
Exercise 6: Cost Center Assessment
Exercise Objectives
After completing this exercise, you will be able to:
• Allocate costs using Cost Center Assessment
Business Example
The costs of a marketing survey conducted by an outside service provider are to be
allocated from the marketing cost center to the products, P-101 and P-102.
Note: The primary source of the data for CO-PA is normally sales order
management billing. The primary source of period costs, such as salesand administration costs, for CO-PA is normally Cost Center Accounting.
With cost center assessments, you can allocate responsibility-oriented
costs across profitability segments for P&L reporting.
Task:
Post an invoice from the marketing company CEB Berlin against this cost center
to pay for a market survey it conducted. AC605-##
The credit entry in this case will be posted to the vendor account number, and
the debit entry will be posted against the cost center using the external services
account number. The posting is made in the company code, 1000.
Vendor : 1000 C.E.B Berlin
Invoice Number: 1234##
Invoice Amount: 10,000.00
Account Number: 417000 External Services
Account Assignment: Marketing Cost Center
AC605-##
1. In the costing-based profitability analysis, apportion a cost assessment for
the Cost Center to products P-101 and P-102. The costs should be dividedequally between the two products.
2. Create an allocation cycle, CYC-##, starting January 01, XXXX, to allocate
the marketing costs to the Marketing Costs value field. Use the assessment
cost element, 692000, Marketing Assessments.
Continued on next page
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Unit 3: Actual Data TFIN22_2
Field Name or Data Type Values
Sender Selection Type 1 (unsplit costs)
CO Area 1000
Tracing factor 1 (costing-based CO-PA)
Attach Segment 1.
Field Name or Data Type Values
Segment Number/Name 1
Assessment Cost Element 692000
Value field VV380
Sender Values Posted Amounts
Share in % 100
Rule for receiver tracing factor Fixed percentages
Enter 50% as the receiver tracing factor for each product.
3. Execute your allocation cycle without the test mode for the current period.
Display the actual line item you just created, P-101, in the costing-based and
account-based profitability analysis.
Which record type was used to post the line item?
What is the value in the Marketing Costs field?
How many line items have been posted in the account-based or costing-based
CO-PA?
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TFIN22_2 Lesson: Transfer of Overhead
Solution 6: Cost Center Assessment
Task:
Post an invoice from the marketing company CEB Berlin against this cost center
to pay for a market survey it conducted. AC605-##
The credit entry in this case will be posted to the vendor account number, and
the debit entry will be posted against the cost center using the external services
account number. The posting is made in the company code, 1000.
Vendor : 1000 C.E.B Berlin
Invoice Number: 1234##
Invoice Amount: 10,000.00 Account Number: 417000 External Services
Account Assignment: Marketing Cost Center
AC605-##
1. In the costing-based profitability analysis, apportion a cost assessment for
the Cost Center to products P-101 and P-102. The costs should be divided
equally between the two products.
a) Post an invoice from CEB Berlin the Marketing firm against this cost
center to pay for a market survey it conducted.
The credit entry in this case is posted to the vendor account number,
and the debit entry is posted against the cost center using the external
services account number. The posting is made in the company code,
1000.
Accounting → Financial Accounting → Accounts Payable→
Document Entry→ Invoice:
Field Name or Data Type Values
Vendor 1000
Invoice Date Today's date
Posting Date Today's date
Amount (due to vendor) 10,000
Account Number 417000
D/C Debit
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Unit 3: Actual Data TFIN22_2
Amount 10,000
Tax Code 0I
Cost Center AC605-##
Post your document.
Hint: During your posting, several messages may appear that
the account, 417000, is relevant for tax. These are warning
messages. Select Enter to confirm these.
2. Create an allocation cycle, CYC-##, starting January 01, XXXX, to allocate
the marketing costs to the Marketing Costs value field. Use the assessment
cost element, 692000, Marketing Assessments.
Field Name or Data Type Values
Sender Selection Type 1 (unsplit costs)
CO Area 1000
Tracing factor 1 (costing-based CO-PA)
Attach Segment 1.
Field Name or Data Type ValuesSegment Number/Name 1
Assessment Cost Element 692000
Value field VV380
Sender Values Posted Amounts
Share in % 100
Rule for receiver tracing factor Fixed percentages
Enter 50% as the receiver tracing factor for each product.
a) In the cost-based profitability analysis, apportion the costs for the Cost
Center on products P-101 and P-102. The costs should be divided
equally between the two products.
Create an allocation cycle, CYC-## , valid as of January 01, XXXX, to
allocate the marketing costs to the Marketing Costs value field. Use the
assessment cost element, 692000, and assessment result marketing.
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TFIN22_2 Lesson: Transfer of Overhead
Accounting → Controlling → Profitability Analysis → Actual Postings
→ Period End Closing → Transfer Cost Center Costs/Process Costs→
Indirect Activity Allocation: Extras→ Cycle→ Create
Field Name or Data Type Values
Cycle Name CYC-##
Start Date 1/1/XXXX
Enter:
Field Name or Data Type Values
Sender Selection Type 1 (unsplit costs)
CO Area 1000
Tracing Factor 1 (costing-based CO-PA)
Attach Segment 1.
Select: Attach Segment: Segment Header
Field Name or Data Type Values
Segment Number/Name 1
Assessment Cost Element 692000
Value Field VV380
Sender Values Posted Amountsr
Share in % 100
Rule for Receiver Tracing Factor Fixed percentages
Choose Sender/Receiver.
Field Name or Data Type Values
Cost Center AC605-##
Cost Element 417000
Receivers Products P-101 to P-102
Select the Receiver Tracing Factor tab and enter 50% for each product.
Save your cycle and return to the initial assessment screen.
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Unit 3: Actual Data TFIN22_2
3. Execute your allocation cycle without the test mode for the current period.
Display the actual line item you just created, P-101, in the costing-based and
account-based profitability analysis.
Which record type was used to post the line item?
What is the value in the Marketing Costs field?
How many line items have been posted in the account-based or costing-based
CO-PA?
a) Execute your allocation cycle without the test mode for the current
period.
To execute your cycle, enter its number in the field provided. Deselect
Test Run but select Detailed Lists. Execute your cycle for the current
period.
Display the actual line item you just created for the product, P-101.
Accounting → Controlling → Profitability Analysis→ Information
System→ Display Line Item List → Actual
Field Name or Data Type Values
Record Type D
Period/Year Current
Entered by Your user ID
Product P-101
Which record type was used to post the line item? D
What is the value for General Marketing Costs? 5000
How many line items have been created in the costing-based or
account-based CO-PA?
Goto the account-based CO-PA. Only 1 line item was created there.
Reason: No setting for characteristic use in the account-based CO-PA
(see Customizing CO-PA, characteristic use).
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TFIN22_2 Lesson: Transfer of Overhead
Exercise 7: Internal Orders
Exercise Objectives
After completing this exercise, you will be able to:
• Allocate the costs collected on an internal order to profitability analysis
Business Example
Your sales manager has planned to participate in a number of trade fairs this year.
The costs for the trade fairs are collected on internal orders to track the cost for
each fair separately from the recurring cost center costs.
Note: In CO, internal orders can be used to collect the costs for specific projects, such as research and development, or marketing events. They
allow you to view and monitor costs on an alternate controlling object and
periodically settle these costs to a cost center or profitability segment.
This allows you to separate project costs from recurring expenditures.
Task:
Create an internal order in the company code, 1000, to capture the costs for the
Fun & Rec Show in Las Vegas.
Order Type: 0450 Exhibitions
Short Text: FUN & REC SHOW
Business Area: 5000
Profit Center: 1000
Make sure you release the internal order, as the costs will be posted to it.
1. Create a settlement rule that determines where the costs for your internal
order are allocated at the period close. The settlement receiver is a
profitability segment. In the settlement information, you need to specify that
the settlement will be made to the material group, 001.
Save the internal order number.
Order Number:
2. Charge costs to the internal order with a journal entry in Financial
Accounting. So far, you have incurred the following costs for the Las Vegas
trade fair:
Amount: 1000.00 Cost element: 476000
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Unit 3: Actual Data TFIN22_2
All costs are exempt from tax, tax code V0. These costs have been paid
from bank account, 113100.
Financial Accounting document number:
3. In the CO internal order application, process the internal order settlement for
the current period to Profitability Analysis.
Amount settled:
4. View the line item you created with the settlement of your internal order
in CO-PA.
Which value fields were populated? Why?
5. In the IMG, view the settlement configuration for the order type, 0450. To
which settlement profile is this order type assigned?
Display the settlement profile settings. What allocation structure is used in
the settlement profile?
Which PA transfer structure is linked to this settlement profile?
6. What is the purpose of the PA transfer structure?
To which value fields are Total Costs assigned?
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TFIN22_2 Lesson: Transfer of Overhead
Solution 7: Internal Orders
Task:
Create an internal order in the company code, 1000, to capture the costs for the
Fun & Rec Show in Las Vegas.
Order Type: 0450 Exhibitions
Short Text: FUN & REC SHOW
Business Area: 5000
Profit Center: 1000
Make sure you release the internal order, as the costs will be posted to it.
1. Create a settlement rule that determines where the costs for your internal
order are allocated at the period close. The settlement receiver is a
profitability segment. In the settlement information, you need to specify that
the settlement will be made to the material group, 001.
Save the internal order number.
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Unit 3: Actual Data TFIN22_2
Order Number:
a) Create an internal order to capture the costs for the Fun & Rec Show
in Las Vegas.
Accounting → Controlling → Internal Orders→ Master Data→
Special Functions→ Order → Create:
Field Name or Data Type Values
Order Type 0450
Short Text Fun & Rec Show
Company Code 1000
Business Area 5000
Profit Center 1000
Check whether the internal order is released.
Select the Control data tab. If the system status is CRTD, click
Release to change the system status to FREE.
Create a settlement rule that determines where the costs for your
internal order are allocated at the period close. The settlement receiver
is a profitability segment. In the settlement information, you need to
specify that the settlement will be made to the material group, 001.
Select Settlement Rule. From the Settlement rule entry screen, select Details. From the Distribution Rules screen, select Profitability. Enter
Material Group, 001, and select Enter to continue. To view the profit
segment number, go back to the distribution rule and choose Hierarchy.
Save the internal order.
Order number:
2. Charge costs to the internal order with a journal entry in Financial
Accounting. So far, you have incurred the following costs for the Las Vegas
trade fair:
Amount: 1000.00 Cost element: 476000
All costs are exempt from tax, tax code V0. These costs have been paid
from bank account, 113100.
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TFIN22_2 Lesson: Transfer of Overhead
Financial Accounting document number:
a) Charge costs to the internal order with a journal entry in Financial
Accounting. So far, you have incurred the following costs for the Las
Vegas trade fair:
Amount:1000.00 Cost Element:
All costs are exempt from tax, tax code V0. These costs have been paid
from the bank account, 113100.
Accounting → Financial Accounting → General Ledger → Posting
→ Enter G/L Account Document
Header
Field Name or Data Type Values
Document Date Today's date
Row 1:
G/L Account 476000
D/C Debit
Amount 1000
Tax Code V0
Order Your internal order number
Row 2:
Field Name or Data Type Values
G/L Account 113100
D/C Credit
Amount 1000
Post your document.
Financial Accounting document number:
3. In the CO internal order application, process the internal order settlement for
the current period to Profitability Analysis.
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Unit 3: Actual Data TFIN22_2
Amount settled:
a) In the CO internal order application, process the internal order
settlement for the current period to Profitability Analysis.
Accounting → Controlling → Internal Orders→ Period-End Closing
→ Single Functions→ Settlement → Individual Processing:
Field Name or Data Type Values
Purchase Order Number Your order number
Settlement Period Current
Fiscal Year Current
Test Run Not selected
Amount settled: 1000
4. View the line item you created with the settlement of your internal order
in CO-PA.
Which value fields were populated? Why?
a) Accounting → Controlling → Profitability Analysis→ Information
System→ Display Line Items→ Actual:
Field Name or Data Type Values
Record Type C
Period/Year Current
Entered by Your user ID
Which value fields were populated? Why?
Settings→ Layout → Change
Select Marketing Activities from the column set.
Marketing Activities - Based on the configuration of the PA transfer
structure that determines which costs are settled and to which value
field.
5. In the IMG, view the settlement configuration for the order type, 0450. To
which settlement profile is this order type assigned?
Display the settlement profile settings. What allocation structure is used in
the settlement profile?
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TFIN22_2 Lesson: Transfer of Overhead
Which PA transfer structure is linked to this settlement profile?
a) To which settlement profile is this order type assigned?
IMG:Controlling → Internal Orders→ Order Master Data→ Define
Order Types: Select 'Detail' for the order type 0450.
The settlement profile is 100.
Display the settlement profile settings. Which allocation structure
is used in the settlement profile?
IMG: Controlling → Internal Orders→ Actual Postings→ Settlement
→ Maintain Settlement Profiles: Select Profile 100
The CO allocation structure relevant for account-based CO-PA is A1.
Which PA transfer structure is linked to this settlement profile?
10
6. What is the purpose of the PA transfer structure?
To which value fields are Total Costs assigned?
a) The transfer structure determines the value fields to which costs will be
settled to. It consists of:
The settlement assignment – groups costs together.
The source – cost element group.
The value fields to which each assignment group is settled.
To which value fields the Total Costs are assigned.
IMG: Controlling → Profitability Analysis → Flows of Actual Values
→ Order and Project Settlement → Define PA Transfer Structure for
Settlement
Select : Structure 10 → Assignment lines
Select: All costs→ Value fields
VV410 – Marketing Activities
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Unit 3: Actual Data TFIN22_2
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TFIN22_2 Lesson: Transfer of Overhead
Exercise 8: Activity Allocation
Exercise Objectives
After completing this exercise, you will be able to:
• Allocate the costs from Overhead Cost Accounting to CO-PA using activity
types
Business Example
Your R&D cost center manager wants to allocate R&D costs to products whenever
possible. The Product Engineering group spent 10 hours last month in improving
product P-101. Controlling has set a rate of $100.00 per development hour.
Note: In addition to cost center assessments, you can use activities to
allocate the costs from cost centers to Profitability Analysis. The activities
in the SAP system are normally defined as the productive output of a cost
center and can be measured in time increments or units. Activity prices
can be planned manually or calculated by the system based on planned
or actual costs. Activities can be allocated using a process called Direct
Activity Allocation, which credits the sending cost center and debits one
or more receivers.
Task 1:
1. Create the activity type EH## for the development time in hours. Validity period from 1 January of the current year to 31 December 9999.
All the cost center categories should be able to use this activity. The
activity type category is 1 because the costs are allocated manually. The
secondary cost element, 621000, will debit the activity receiver and credit
the cost center.
Save the activity type.
Task 2:
1. Plan the activity price for this activity type for the current fiscal year in
the plan version, 0.
The development department plans to spend 1200 hours R&D time on blue
bicycles.
In Cost Center Accounting, choose Planning → Activities/Prices to plan a
rate of 100 for the activity type, EH##, and the cost center, 4500.
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Unit 3: Actual Data TFIN22_2
Task 3:
1. Process the actual activity allocation for the current period to the product,
P-101, in the company code, 1000, and the business area 1000, also in Cost
Center Accounting.
The screen variant, Profitability Segment/Cost Center, allows you to allocate
the costs from a cost center to a profitability segment using an activity type.
Save the document.
Sender: Cost Center, 4500, Activity Type, EH##
Recipient: Profitability segment (product, P-101, company code, 1000,
business area, 1000)
Hours consumed:
Document number:
Task 4:
1. Display the line items you have created during the allocation in CO-PA.
Which record type was used to post the line item?
Which value field has been debited with the activity allocation? Why?
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TFIN22_2 Lesson: Transfer of Overhead
Solution 8: Activity Allocation
Task 1:
1. Create the activity type EH## for the development time in hours. Validity
period from 1 January of the current year to 31 December 9999.
All the cost center categories should be able to use this activity. The
activity type category is 1 because the costs are allocated manually. The
secondary cost element, 621000, will debit the activity receiver and credit
the cost center.
Save the activity type.
a) Create the activity type EH## for the development time in hours.
Validity period from 1 January of the current year to 31 December 9999.
All the cost center categories should be able to use this activity. The
activity type category is 1 because the costs are allocated manually.
The secondary cost element, 621000, will debit the activity receiver
and credit the cost center.
Accounting → Controlling → Cost Center Accounting → Master Data
→ Activity Type→ Individual Processing → Create:
Save the activity type.
Name: Development Hours
Activity Unit H
CCtr Category: *
ATyp Category: 1
Allocation Cost Element: 621000
Price Indicator: 3
Task 2:1. Plan the activity price for this activity type for the current fiscal year in
the plan version, 0.
The development department plans to spend 1200 hours R&D time on blue
bicycles.
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Unit 3: Actual Data TFIN22_2
In Cost Center Accounting, choose Planning → Activities/Prices to plan a
rate of 100 for the activity type, EH##, and the cost center, 4500.
a) Plan the activity price for this activity type for the current fiscal year in
the plan version, 0.
The development department plans to spend 1200 hours R&D time on
blue bicycles.
In Cost Center Accounting, choose Planning → Activities/Prices to
plan a rate of 100 for the activity type, EH##, and the cost center, 4500.
Controlling → Cost Center Accounting → Planning → Activity
Output/Prices→ Change:
Field Name or Data Type ValuesVersion 0
Period 1 –12
Fiscal Year Current
Cost Center 4500
Activity Type EH##
Select Form-based.
Select Overview and enter the following:
Plan Activity: 1200
Fixed Price: 100
Save your plan price.
Task 3:
1. Process the actual activity allocation for the current period to the product,
P-101, in the company code, 1000, and the business area 1000, also in Cost
Center Accounting.
The screen variant, Profitability Segment/Cost Center, allows you to allocate
the costs from a cost center to a profitability segment using an activity type.
Save the document.
Sender: Cost Center, 4500, Activity Type, EH##
Recipient: Profitability segment (product, P-101, company code, 1000,
business area, 1000)
Hours consumed:
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TFIN22_2 Lesson: Transfer of Overhead
Document number:
a) Process the actual activity allocation for the current period to the
product, P-101, in the company code, 1000, and the business area,
1000, also in Cost Center Accounting.
You can use a screen variant to allocate the costs from a cost center to a
profitability segment using an activity type. Save the document.
Accounting → Controlling → Cost Center Accounting → Actual
Postings→ Activity Allocation→ Enter:
Select the Profit Segment/Cost Center screen variant and choose
Individual Entry.
Field Name or Data Type ValuesSend. CCtr (Sender Cost
Center)
4500
SAtyTyp (Sender Act.Type) EH##
Total Quantity: 10
Receiver: Choose the profitability segment
Select Profitability segment and choose Enter. Enter product P-101
for Company Code 1000 and Business Area 1000. Post your entry.
Document number:
Task 4:
1. Display the line items you have created during the allocation in CO-PA.
Which record type was used to post the line item?
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Unit 3: Actual Data TFIN22_2
Which value field has been debited with the activity allocation? Why?
a) Display the line items you have created during the allocation in CO-PA.
Which record type was used to post the line item?
Accounting → Controlling → Profitability Analysis→ Information
System→ Display Line Items→ Actual
Record Type: D
Period/Year : Current
Entered by : Your user ID
Product: P-101
Which value field has been debited with the activity allocation? Why?
Settings→ Layout → Change
Select Marketing Activities from the column set.
Marketing Activities. The PA transfer structure, CO, is referenced
during the activity allocation to CO-PA.
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TFIN22_2 Lesson: Transfer of Overhead
Lesson Summary
You should now be able to:• Explain the transfer and allocation of costs
• Explain the settlement of orders
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Unit Summary TFIN22_2
Unit Summary
You should now be able to:
• Explain the flow of actual data in CO-PA
• List the sources of value fields
• Explain the transfer and allocation of costs
• Explain the settlement of orders
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TFIN22_2 Test Your Knowledge
Test Your Knowledge
1. and discounts are transferred to profitability segments in
Profitability Analysis at the point of billing in Sales Order Management.
Fill in the blanks to complete the sentence.
2. How are production variances calculated?
3. One of the important tasks in Customizing for the costing-based CO-PA is to
assign your costs and revenues to the required value fields.
Determine whether this statement is true or false.
□ True
□ False
4. in the costing-based CO-PA contain the amounts
and quantities on which you want to report.
Fill in the blanks to complete the sentence.
5. You can transfer the overhead costs from Cost Center Accounting either on
an activity-allocation or a basis.
Fill in the blanks to complete the sentence.
6. What all can you settle in SAP R/3?
7. The application component
provides an alternative form of overhead control.
Fill in the blanks to complete the sentence.
8. In , costs are settled to the
settlement cost element specified in the settlement structure.
Fill in the blanks to complete the sentence.
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Test Your Knowledge TFIN22_2
Answers
1. Revenues and discounts are transferred to profitability segments in
Profitability Analysis at the point of billing in Sales Order Management.
Answer: Revenues
2. How are production variances calculated?
Answer: The production variances are calculated as the difference between
the actual costs of goods manufactured and standard costs.
3. One of the important tasks in Customizing for the costing-based CO-PA is toassign your costs and revenues to the required value fields.
Answer: True
One of the important tasks in Customizing for the costing-based CO-PA is to
assign your costs and revenues to the required value fields.
4. Value fields in the costing-based CO-PA contain the amounts and quantities
on which you want to report.
Answer: Value fields
5. You can transfer the overhead costs from Cost Center Accounting either on
an activity-allocation or a periodic basis.
Answer: periodic
6. What all can you settle in SAP R/3?
Answer: In SAP system, you settle internal orders (CO), sales orders (SD),
projects (PS), as well as production orders.
7. The Activity-Based Costing application component provides an alternative
form of overhead control.
Answer: Activity-Based Costing
8. In account-based CO-PA, costs are settled to the settlement cost element
specified in the settlement structure.
Answer: account-based CO-PA
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TFIN22_2 Course Summary
Course Summary
You should now be able to:
• Understand the functions in Profitability Analysis and obtain an insight on
how to implement the component
• Set up the structures of an operating concern and examine characteristic
derivation and valuation
• Explain how the integration works between Sales Order Management,
Financial Accounting, and Management Accounting
• Create planning layouts, reports, and report forms
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Course Summary TFIN22_2
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Appendix 1Appendix
Figure 48: Appendix
Figure 49: Master Data : Additional Topics
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Appendix 1: Appendix TFIN22_2
Figure 50: Working with a Standard Unit of Measure
Working with standard units of measure (UoM) allows you to convert different
UoMs into a single UoM of universal application. This conversion can occur
in two different ways.
First, you can define the standard UoM in such a way that the UoM transferred
from the source quantity field's previous applications can be converted into
the standard CO-PA UoM for all materials. When you do this, ensure that theUoM that is selected as standard is also maintained in the material master for all
materials, either as a base UoM or as an alternative UoM.
If you cannot define a uniform standard UoM due to the heterogeneity of the
materials affected, you can define a comparable standard UoM using the methods
for deriving characteristics. To do this, use a characteristic value (such as a
product group) as your basis.
This straightforward feature enables you to compare the different UoMs in CO-PA.
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Figure 51: Aggregating the Tracing Factor
Normally, periodic allocation is carried out using tracing factors defined
specifically in the period concerned. This means that the periodic sender values
posted are settled on the basis of the tracing factors defined in this period.
Note that if these tracing factors are subject to significant periodic fluctuations,
you cannot allocate the values according to their cause.
As of Release 4.0A, you can use the Aggregated tracing factor indicator to
eliminate the fluctuations between periods.
Figure 52: CO-PA Derivation: (1)
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Characteristic derivation refers to the system's attempts to determine the
characteristic values for the characteristics for all COPA-relevant transactions
(supplementing the automatic mappings).
By supplementing the values determined by automatic mapping, derivation can
access additional information (characteristic values) both within and outside the
originating transaction.
For every COPA-relevant transaction, the system will attempt to derive a
characteristic value for each and every characteristic in the operating concern if
the derivation configuration is complete.
Derivation is not always successful. Unsuccessful derivation for a characteristic
results in the posting of a blank or unassigned characteristic value, or the value
zero.
The total of all characteristic values used at segment level for a particular business
transaction defines the respective profitability segment. The profitability segment
is the CO-PA account assignment object.
The dependant characteristics, such as the customer group and the sales district
can be derived only if the characteristic values for the independent characteristics,
customer, sales organization, distribution channel, and division are all specified.
Figure 53: CO-PA Derivation: (2)
Derivation rules are used to determine characteristic values through user-defined
logic. They are frequently used with user-defined characteristics, although they
are not limited to this application.
With derivation rules, characteristic values (also known as “target values”) are
determined directly based on the values of other characteristic values (known as
“source values”).
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As with other derivation steps, derivation rules can be configured to apply to
either all situations or only when certain conditions are met (for example, when
a sales organization is 1000).
If a value cannot be determined by the rule entries, derivation rules can also be
configured to produce an error or to ignore this failure and proceed.
Unlike other derivation steps, derivation rule entries can be configured so
that they apply at a specific interval or time (time-dependent), or at all times
(time-independent).
Derivation rules can be set up in sequence with other derivation steps and methods
to produce complex derivation logic.
If a CO-PA derivation rule is not maintained properly, the system will issue an
error message when CO-PA derivation is performed. An incorrect derivation rule
may prevent billing documents being released to accounting.
Figure 54: Special Characteristics
Figure 55: Product Hierarchy
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The product hierarchy entered in the material master is contained in an 18-character
field that is logically divided into different levels. If you simply choose this field
from the reference table, the tables MARA or MVKE, as you would for other characteristics, the Information System cannot recognize its encrypted hierarchical
structure. This means that you can drill down only on one level of the hierarchy.
Figure 56: Transfer "Product Hierarchy" before Rel. 4.5
If you want to drill down through all the levels of the product hierarchy, you
need to represent each of the individual levels as a separate characteristic in
CO-PA. Example: The product hierarchy contains three parts, the first two with
the length 5 and the third with the length 8. This means that the first level of the
product hierarchy is of the length 5, the second one of the length 10 (because
it is composed of the first two parts) and the third level is of the length 18. In
CO-PA, you need to define the following three characteristics for these three
levels (in transaction KEA0):
WWPH1 ‘Product Hierarchy. Level 1' CHAR 5
WWPH2 ‘Product Hierarchy. Level 2' CHAR 10 (5 + 5 !)
WWPH3 ‘Product Hierarchy. Level 3' CHAR 18 (5 + 5 + 8 !) Next, you need to inform the system that the characteristics defined above are to be
supplied with the values from a product hierarchy. By maintaining the appropriate
derivation table entries, you can supply these levels automatically with the product
hierarchy contained in the material master. For more information, see SAP Note
62690. In CO-PA, you need to maintain master data for your user-defined fields.
For the above example, enter all the valid product hierarchy elements for all three
characteristics, WWPH1, WWPH2, and WWPH3 (transaction KES1).
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Figure 57: Transfer “Product Hierarchy” Release 4.5 (1)
As of Release 4.5, you can transfer the levels of the “Product hierarchy”
characteristic to CO-PA from the material master.
The levels of the product hierarchy are defined in Customizing under: Logistics -
General → Basic Data Logistics: Material Master → Material → Data Relevant
to Sales→ Define Product Hierarchies.
The PAPH1 and PAPH2 fields are generated in CO-PA to correspond to the
product hierarchy levels. With the CO-PA Customizing function “Transfer from
SAP table”, you can transfer the required fields from table MVKE to CO-PA
as characteristics. This enables you to evaluate the individual hierarchy levels
in reporting.
In contrast to when you define your own characteristics, you do not need to
maintain any characteristic values or derivation rules when you adopt the
characteristics from an SAP table.
You can still use any user-defined characteristics for the product hierarchy that
you were already using.
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Figure 58: Transfer “Region” from an SAP Table
As of Release 4.5, you can transfer the “Region” field from the customer master
to use it as a characteristic in Profitability Analysis.
The PAREG field is available through the “Transfer from SAP table” function in
CO-PA Customizing, and can be transferred from the customer master (table
KNA1). This field is composed of the characteristic values of country and region.
In contrast to when you define your own characteristics, you do not need tomaintain any characteristic values or derivation rules when you adopt the
characteristics from an SAP table.
You can still use the “Region” characteristic (possibly a user-defined characteristic)
that you were already using.
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Figure 59: Customer Hierarchies
In Profitability Analysis, you use particular characteristics to map the customer
hierarchy from SD. You can add these characteristics to your operating concern's
data structure from the PAPARTNER structure. Each individual level of the
customer hierarchy is assigned to a separate CO-PA characteristic, HIE01, HIE02,
and HIE10.
When you transfer sales orders or billing documents, the customer hierarchy
determined by SD is automatically transferred to CO-PA with the order or
document. In other Profitability Analysis transactions, the customer hierarchy
is derived uisng the customer, sales organization, distribution channel, and
division characteristics. The customer hierarchy category that is assigned to the
corresponding operating concern should always be taken into account.
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Figure 60: Determination of the division in SD
Figure 61: Partner functions
You can use the partner functions from SD as characteristics in Profitability
Analysis. Certain standard partner functions are available for this purpose.
Furthermore, you can define your own partner functions in SD. The
customer-defined partner functions can also be transferred to the Profitability
Analysis data structures as characteristics.
A clear distinction must be made between the standard partner functions and the
user-defined partner functions. For both the standard partner functions and the
user-defined partner functions, a further distinction is made between personnel
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representative functions and partner functions, which signify the customer master
data table and the KNA1 or LFA1 vendor master data tables. Partner functions,
which refer to the customer master data table or the vendor master data tables,are assigned to the corresponding master data tables (KNA1 or LFA1) as value
tables. Personnel representative functions do not have any value tables. The sales
employee is an example of a personnel representative function, which is available
in the standard system.
For an in-depth explanation of how to transfer partner functions from SD to
CO-PA, see SAP Note 36557.
Figure 62: Value Flows
Figure 63: SD/CO-PA interface (transfer of sales revenue/revenue
deductions)
The system accesses only those condition types in SD that have been assigned
to a CO-PA value field in CO-PA Customizing. Even so, note that only certaincondition types in SD can be transferred to CO-PA. These are:
• Revenues and sales deductions, the G/L account for which was created in
CO with the cost element types 11 = “Revenue” or 12 = “Sales deduction”
• Conditions that are defined as statistical in SD, such as the VPRS condition
type, which contains the costs of goods sold. Statistical conditions do not lead
to a posting to a G/L account. In addition, note that only active conditions
are transferred to CO-PA. Inactive conditions are not transferred. If all the
conditions in an item are inactive, the order item is not transferred to CO-PA.
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For make-to-order production (the VBRP-VBELV field in the billing document is
filled), data has to be transferred to CO-PA using order settlement.
Figure 64: SD/CO-PA Interface: Plus/Minus Sign Logic
All values are transferred to CO-PA as positive. For credit memos (billing
type G2), all signs are reversed. Only in CO-PA reporting are sales deductions
subtracted from the gross revenues. The reason for this procedure is that the
revenues in the different SAP applications have different plus and minus (+/-)signs. The revenues in the SD component are managed as positive amounts, but in
the FI component they are negative amounts. Since revenues can be transferred to
CO-PA from both systems, the plus and minus signs (+/-) have to be processed.
Note that this solution requires condition types that are managed as negative
amounts in SD, such as discounts, to be assigned to other CO-PA value fields as
positive condition types, such as special revenues.
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Figure 65: FI/CO-PA Interface versus SD/CO-PA Interface: Plus/Minus Sign
Logic
Figure 66: Project System: New Analyses in CO-PA
Settlement of incoming sales orders for each billing element.
Copying the revenues and costs relating to incoming orders into CO-PA so that an
expected result can be derived from the orders that belong to the current period
(taxable under the indicator “processing type”).
Order balance = settled incoming orders together with consideration of revenues
and of the cost of sales already billed.
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You can monitor the history of the value of incoming orders by distinguishing:
• New orders
• Changed orders
• Cancellations
• Change of plans
Analysis is possible in CO-PA and in the Information System.
Customizing settings - See the release notes.
Figure 67: How to Compare Estimated Values with Actuals?
When the billing document is released to Accounting, the accrued discount from
the billing document is transferred to costing-based CO-PA using a statistical
“Cash Discount” condition.
The cash discount is calculated during the run of the payment program in FI. To
transfer the actual cash discount to CO-PA, you have two options.
First, you can use automatic account assignment to post actual cash discount
at a higher level into CO-PA.
Second, you can start the “Profit and Loss Readjustment” program (SAPF181) in
your period-closing activities as shown above. Actual cash discount will now be
assigned to the customer level to trace your actual customer profitability.
In both cases, make sure that accrued cash discounts and actual cash discounts are
stored in two different value fields. Reporting must be designed accordingly.
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Figure 68: Top Down Distribution of Single Valuation Views
Previously, in top down distribution for actual data, the data used to be distributed
for all the valuation views from legal valuation and profit center valuation.
Currently, individual valuation views can be processed separately within a top
down valuation run.
In cases where you use both valuation views but require details for only one, it is
a good idea to perform top down distribution just for this view. This allows youto reduce runtimes in top down distribution and avoid generating unnecessarily
large volumes of data.
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Figure 69: Top Down Distribution of Various Record Types
With top down distribution, you can concurrently distribute data from several
record types, in a single run. This eliminates the need to re-enter the same
parameters for separate runs for each individual record type.
Figure 70: Specifying the Currency Type for Reference Data
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Top down distribution offers you more flexibility when entering reference data.
Instead of automatically applying the respective currencies of the reference data,
you can now indicate a fixed reference currency – the company code currency or the operating concern currency.
Figure 71: Reference Data with Various Record Types
In top down distribution, you can select different record types as reference data.
You can specify whether the reference data for the different record types should be
cumulated or handled separately.
If you choose “Cumulate Record Type”, the reference data is summarized at record
type level. This means that the data is processed as if the same record type applied.
If the record type is not cumulated, the number of record types needs to be the
same for the actual data and the reference data. Processing observes the sequence
in which the record types are entered for the multiple selection. Actual data with
the first record type is thus distributed in accordance with the reference data of
the record type occurring first in the sequence (for a detailed example, see the
following section). (This example is also found in the F1 Help documentation.)
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Figure 72: Aggregating Record Types - Example
Additional Costing: Aggregation without Transaction Type
100 = 1000*10/ (10+40+50)
400 = 1000*40/ (10+40+50)
500 = 1000*50/ (10+40+50)3000
1600 = 2000*80/ (80+20)
400 = 2000*20/ (80+20)
Additional Costing: Aggregation with Transaction Type
360 = 1000*(10+80) / ((10+80)+(40+50+20)+50)
440 = 1000*(40+50+20) / ((10+80)+(40+50+20)+50)
200 = 1000*50 / ((10+80)+(40+50+20)+50)
1080 = 3000*(10+80) / ((10+80)+(40+50+20)+50)
1320 = 3000*(40+50+20) /((10+80)+(40+50+20)+50)
600 = 3000*50 / ((10+80)+(40+50+20)+50)
720 = 2000*(10+80) / ((10+80)+(40+50+20)+50)
880 = 2000 *(40+50+20) /((10+80)+(40+50+20)+50)
400 = 2000 *50 / ((10+80)+(40+50+20)+50)
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Figure 73: Event Planning with Object-Dependent Revaluation Key
Events, such as special sales campaigns, can have a short-term influence on the
sales of products.
As of Release 4.5, events can be taken into account in manual and automatic
sales and profit planning.
From a functional perspective, an event can be seen as a revaluation key linked to
a specific length of time.Events can influence the data of an entire plan or be defined with reference to
specified characteristics, such as a specific region.
Figure 74: Additional Functions
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Figure 75: Recommendations on How to Use Excel (1)
When you define your Excel template, you should distinguish between two types
of spreadsheet in Customizing:
• An SAP spreadsheet, which is used to transfer data to R/3 Enterprise
• Further Excel spreadsheets in which the planner processes the data
Macros are used to transfer data between the sheets.
When you plan with the SAP spreadsheet, you should be aware of the specialfeatures:
• You cannot make any further alterations to the position of the data in Excel
when planning. You cannot delete columns or move cells at this stage.
• You can add new entries in the SAP spreadsheet only in the lines below
the totals line.
• To display possible entries, you can use the button in the R/3 environment
designed for this purpose.
• All other R/3 planning functions require you to select the required line in
Excel and to perform the required function in the R/3 menu bar.
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Figure 76: Recommendations on How to Use Excel (2)
Due to the restrictions of the SAP spreadsheet, a procedure can be followed in
which data is copied from the SAP sheet to a different Excel spreadsheet.
You can use all the Excel functions to create data, depict data with graphics or
calculate data using models.
After you have finished working on the appropriate record, data is transferred back
to the SAP spreadsheet using a macro. For more information, see the appropriateexample in the documentation.
Note: When you develop the macro, it is good idea to test your solution
outside of R/3 Customizing first and then transfer it using Cut and Paste.
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Figure 77: Using Attributes to Display More Information
In previous releases, it was possible only to determine how the lead column
should be displayed, such as the key, characteristic name, or both. You can now
use attributes to display further information from the characteristic master data
tables in the lead column.
Choosing “Settings→ Characteristic display” allows you to determine how
characteristics are displayed in the lead column. The characteristic name is
displayed in the above example.
If you select the lead column and choose “Settings→ Characteristic display→
Lead column”, a dialog box appears prompting you to select the attributes to be
displayed in the additional columns of the report list. The “City” attribute was
selected in the above example.
Finally, choosing “ Extras→ Attributes” allows you to display a dialog box
showing all the attributes for a characteristic.
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Figure 78: The Transport Concept (1)
Each independent installation of R/3 is known as an R/3 instance. Normally, there
is a 1:1 ratio between R/3 instances and database servers. In addition, there are at
least three instances for each SAP project: for development, integration testing,
and production activities.
Each operating entity within an instance is called a “client”. There are normally
several clients in any instance, which are used for different tasks, such as“playgrounds”, development, unit testing, and backups. The way in which the
clients and instances are used in a project is known as a client strategy.
The technical operating level of an instance is known as the data dictionary
(DDIC). The DDIC contains objects, such as tables, programs, and data elements,
which are client-independent. This means they pertain to all the clients in an
instance.
Certain objects contain data that is client-dependent. Data can be classified as
master data, configuration data, and transaction data. Master data should be
maintained on the user side of system. Configuration data represents the settings
that define transactions for R/3 Enterprise.
Transaction data is produced by the transactions in R/3 Enterprise. Transporting
indicates the SAP process of moving items between clients within an instance
and among instances.
With transporting, items (such as objects and data) are collected into transportable
bundles, which are then processed at the operating system level by a systems
administrator. Normally, configuration data can be transported between clients
within or among instances. Master data and transaction data, on the other hand,
cannot be transported in this way. However, they do not have to be transported
between clients since they are client-independent.
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Figure 79: The Transport Concept (2)
Each independent installation of R/3 is known as an R/3 instance. Normally, there
is a 1:1 ratio between R/3 instances and database servers. In addition, there are at
least three instances for each SAP project: for development, integration testing,
and production activities.
Each operating entity within an instance is called a “client”. There are normally
several clients in any instance which are used for different tasks, such as“playgrounds”, development, unit testing, and backups. The way in which the
clients and instances are used in a project is known as a client strategy.
The technical operating level of an instance is known as the data dictionary
(DDIC). The DDIC contains objects, such as tables, programs, and data elements,
which are client-independent. This means they pertain to all the clients in an
instance.
Certain objects contain data that is client-dependent. Data can be classified as
master data, configuration data, and transaction data. Master data should be
maintained on the user side of system. Configuration data represents the settings
that define transactions for R/3 Enterprise.
Transaction data is produced by the transactions in R/3 Enterprise. Transporting
indicates the SAP process of moving items between clients within an instance
and among instances.
With transporting, items (such as objects and data) are collected into transportable
bundles, which are then processed at the operating system level by a systems
administrator. Normally, configuration data can be transported between clients
within or among instances. Master data and transaction data, on the other hand,
cannot be transported in this way. However, they do not have to be transported
between clients since they are client-independent.
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Figure 80: Transports in CO-PA
The transport function for CO-PA is flexible and sophisticated, allowing for a
number of ways to accomplish the required goals.
Option 1: Most CO-PA Customizing changes are automatically included in change
requests when the change management system is active for a client. The change
requests can be transported with standard functions. This approach is encouraged
for small configuration changes, especially deletions. Note: Not all Customizing settings can be transported using this option, as not all
Customizing settings create change requests automatically. However, deletions of
mappings must be transported with this option.
Option 2: Most configuration which takes the form of entries in a table (technically
speaking, that configuration which is modified through view maintenance) can be
selectively added to manually triggered transports. Manually created transports
are triggered by an option in the Table View menu.
Note: This option is for transporting selected entries in a table, such as mappings of
condition types. Again, only some configuration can be transported in this manner.
Option #3: This tool facilitates the transport and ensures consistency in thedevelopment of CO-PA. This transport tool can transport all or some parts of
an operating concern.
Notes: Other such objects are listed below.
Option 4: Copying of certain items, such as reports, forms, line item layouts,
report line structures, and planning layouts, from client to client within an instance
and within an operating concern is possible with an import tool, without going
through any CTS procedures at all.
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Figure 81: CO-PA Transport Tool – Operating Concern
The method used to process transports generated by the three CTS-relevant
transport options (remember that this excludes the import tool) depends on the
location of the receiver.
• If the receiver is a client in a different SAP instance, then the standard
system-to-system transport method is required to process the transport(s).
• If the receiver is a client in the same instance, then a client has to be copiedin accordance with the transport request. This ignores any client-independent
objects.
It is recommended that you regenerate the operating concern and summarization
levels in the target after transporting any configuration changes. This ensures that
all the necessary items in the DDIC are updated for the change.
The special transport tool can transport Customizing data separately or together.
You can transport the following objects:
• Client-independent structures for data structures and summarization levels
• Client-dependent configuration for actual postings and planning
• Derivation and valuation configuration pieces
• Table entries for check tables and derivation rules
• Miscellaneous, such as number range groups and plan structures
Note that number range groups and their assignments to record types are
transported with the transport tool. However, the number intervals themselves
have to be transported separately. It is a good idea to use the same number range
intervals in all instances to avoid possible conflicts as a result of transports.
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Figure 82: Authorization Concept
The authorization concept in the ERP system can be described as follows:
• SAP delivers certain authorization objects with the standard system. These
authorization objects consist of up to 10 fields, each of which represents an
element that has to be protected, such as “Operating concern”, “Form”,
and “Activity”.
Authorizations are defined by selecting an authorizations object and assigning
corresponding values to the relevant fields. Authorizations contain specific
combinations of values that are to be allowed for the fields of an object during a
transaction that accesses that particular object.
You can summarize different authorizations in one profile, and these authorizations
can be assigned either to the users directly or to profiles. (These profiles can
then be assigned to users or more compex profiles.) These frequently represent a
collection of all the authorizations an individual needs to perform the job.
A user can have more than one assigned profile. This means that it is possible to
define profiles as a set of duties and then assign the profiles to all persons by the
duties they perform or are responsible for.
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Figure 83: Authorization Objects in CO-PA
Profitability Analysis uses the standard R/3 functions for authorizations. A
number of predefined authorization objects are shipped with the standard system.
You can use these to create authorizations and profiles and protect the Customizing
and application functions in the CO-PA components.
For example, most CO-PA users will be authorized only to enter planning data
and execute reports. Cost accountants may be allowed to perform cost center assessments and other allocations to CO-PA. Other support employees may also
be authorized to create line items directly, update derivation rule entries, or make
assignment changes.
To restrict data in CO-PA, you need to create custom authorization objects for
certain characteristics, value fields, and key figures. The default settings for an
operation concern state that all data is unprotected (freely accessible) at data level
until a custom authorization object is created for a field or combination of fields.
For example, you can create an authorization object to protect information about
individual sales employees (such as sales commission) or about certain product
costing information. Different authorization objects are used for planning data andactual data. If you want to protect both data types, you have to create two objects.
R/3 Enterprise delivers the standard profile, K_RKE_ALL, which contains full
authorizations for all the delivered CO-PA authorization objects. This means that
a user with this profile can perform any function in CO-PA, provided that no
custom authorization objects have been created. If objects have been created,
then authorizations for them have to be created and added to this or another
assigned profile.
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Figure 84: External Data Transfer to CO-PA
Data can be uploaded directly into costing-based CO-PA through the external data
upload feature. You may need to do this if a company is not implementing the
SD module but wants sales details in CO-PA to take advantage of the module's
multidimensional reporting capabilities. It might also be used to load historic
data in CO-PA or to load the data for company divisions that do not use the ERP
system productively.
With this feature, data is uploaded directly from text files on the operating system
level into the costing-based CO-PA transaction data tables. The feature does notsimulate the manual line item create feature. The records in the text file must be of
a consistent format, where each field is allocated a fixed number of characters, and
where records are not separated by characters or carriage returns.
If you upload data through the external data interface, you need to define the
structure of the file to be uploaded and assign the fields of that structure to the
fields of the operating concern. The fields are mapped to each other through the
aid of assignment groups. This allows different mappings for data to be uploaded
to the same structure.
The configuration described above is set in Customizing, but the transfer itself is
conducted in the application menu. The function is available for both actual dataand planning data. However, you have to transfer these separately. Derivation,
valuation, and validation occur during the upload, just as they would for any other
transaction that transfers data to CO-PA.
Any records that do not pass the validation checks are written to an error file, which
can be corrected. These files can then be uploaded to the CO-PA component. This
procedure can occur only once for each file, since the system monitors the files
to avoid data being duplicated. Each file can be uploaded to CO-PA only once
because the system logs the files to ensure that the data is not duplicated. Multiple
files can be uploaded into CO-PA at the same time for maximum performance.
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Figure 85: Archiving and Deleting CO-PA Data
Profitability Analysis uses the standard ERP system functions to archive and delete
movement data. In the ERP system, archiving means copying data from ERP
datatables to archive files. Deletion means removing data from ERP datatables.
As a result, you can archive with or without deletion. If you archive with deletion,
you can configure the two processes to occur simultaneously or sequentially.
In Profitability Analysis, you can archive or delete line items for selected periods
(although not for the current period). Summary records, on the other hand,can only be deleted once a year. Actual and planning data, as well as data in
costing-based and account-based Profitability Analysis, is archived and deleted
separately. Data records can also be archived and deleted by record type.
Incidentally, there are standard functions in the Implementation Guide to
reorganize or delete the other types of data and other items in CO-PA, such as
frozen data, report definitions, form definitions, planning layouts, and line item
layouts. Note that deleting security data does not delete movement data from the
standard tables but only deletes the “frozen” data for the reports.
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Figure 86: SAP Enhancement Concept
The R/3 enhancement tool is used to add customized functions to SAP's standard
business applications. Through enhancements, customers can implement their own
functions without needing to modify the standard SAP code. Each enhancement
has a specific purpose.
Enhancements are beneficial because they provide the exits and entrances at
the appropriate places in R/3 along with the necessary data that may be used,
manipulated, and returned. Enhancements also isolate custom functions so they
will not harm SAP transactions nor upgrades.
To use enhancements, custom functions must be programmed into the
enhancements. The enhancements must be assigned to enhancement projects.
In addition, each project must be activated for all of the functions contained inthe related enhancements to take effect.
Figure 87: CO-PA Enhancement Overview (1)
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With the COPA0001 enhancement, you can program steps to determine
characteristic values during derivation. These steps can be given step IDs and
sorted in your derivation strategy as required. For example, this enhancementmight be used to determine the value for a special user-defined characteristic,
which is determined by complex logic not achievable through derivation rules.
With the COPA0002 enhancement, you can program the steps to calculate or
retrieve the special values during valuation. Separate calculations can be defined
for the planned and actual data. Calculations are assigned user exit numbers,
which must be placed in active CO-PA valuation strategies for the calculations to
occur during the posting of data. For example, this enhancement might be used
to delete certain values for updating Profitability Analysis, provided that these
are not required (for example, “dummy” products for freight, documentation,
and services).
With the COPA0003 enhancement, you can use characteristic groups in
conjunction with additional conditions (instead of just one report) whenever
manual assignment to a profitability segment is required. This means the same
transaction could require the specification of values for different characteristics
when different situations arise.
For example, you can use this enhancement to determine a characteristic group
according to the account that is posted, so that product-related accounts have the
product number and customer-related accounts have the customer as a required
field in the profit segment.
Figure 88: CO-PA Enhancement Overview (2)
With the COPA0004 enhancement, you can reprogram the exchange rate type
that should be used for currency transaction when actual data is processed in
costing-based CO-PA.
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TFIN22_2 Appendix 1: Appendix
For example, for actual postings you can change the average exchange rate (“M”)
to the bank buying rate (“G”) or the bank selling rate (“B”).
With the COPA0005 enhancement, you can change or define characteristic values
or field values on the interfaces with other applications by using information from
the source document. This cannot be done with the enhancements for derivation
and valuation, since these only use information that is contained in the CO-PA
component.
For example, this enhancement might be used to change the characteristic values
being derived for an FI journal entry to CO-PA based on information in the
allocation field or the text field of the document.
With the COPA0006 enhancement, you can program the special functions for
processing planning data during the manual and automatic planning processes.
Each function is given an exit number, which must be specified when conductingthe tasks to access the required calculations.
For example, this enhancement can be used to for distribution using a
characteristic-specific distribution key, for revaluation using a time-dependent
revaluation factor, or for moving plan/actual variances to future periods.
With the COPA0007 enhancement, you can program special processing
instructions for externally uploaded data only. This means you can modify the
line items that are transferred to costing-based CO-PA over the standard interface
using customized source code.
Figure 89: Recommended Follow-Up Activities
Data Used in the Exercises
Data Data in Training
System
Data in IDES System
Operating Concern IDEA IDEA
Controlling Area 1000 1000
Company Code 1000 1000
Sales Organization 1000 1000
Distribution Channel 10 10
Division 00 00
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Products P-100, P-101, P-102,
P-103
P-100, P-101, P-102, P-103
Customer T-CO05A## T-CO05A##
Sales Order Type TA TA
Internal Order Type 0450 0450
Cost Center 4500 4500
Activity Type EH##
Currency UNI UNI
Business Area 5000 5000
Plan Version 100 5## 100
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Index AAssignment lines, 72
BBase condition types, 77
C
Calculation condition types,77
Calculation Type, 76Characteristic derivation, 49Characteristic Values, 4Characteristics, 4 – 5CO orders, 117CO-PA relevant transaction,
46Company code, 3Condition type, 76Controlling area, 3Controlling Pr ofitability
Analysis (CO-PA), 69Costing key, 72Costing sheets, 75Customizing Monitor , 56
DDerivation rules, 54Derivation strategy, 50
OOperating concern, 3
Overhead Cost Controlling,107
Overhead Costs Controlling,112
PPA transfer structure, 119
Period indicator , 73Periodic valuation, 69Plant, 3Product Cost Controlling
(CO-PC), 71Product Costing, 70Production variances, 107Profitability Analysis, 68, 108Profitability segment, 49
Ssales order management
transaction, 46Scale Basis, 76settlement profile, 118
TTable lookup, 53
VValuation analysis, 79Valuation configuration, 70Value Fields, 7
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Index TFIN22_2
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