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SAP’s Innovations – Are You Overlooking Important Functionality in SAP Controlling?
Janet SalmonSAP SE
Introduction
• With the huge interest around SAP HANA and SAP Fiori it can be easy to miss some of the other innovations that SAP has been introducing.
• In this session we’ll look at how you can use some of the SAP HANA innovations without even implementing SAP HANA!
• We’ll look at some key business functions introduced with Enhancement Package 5:• FIN_CO_COGM • LOG_MM_SIT • LOG_EAM_OLC
• We’ll look at some new user interfaces introduced with Enhancement Package 6:• FIN_CO_CCMGMT• FIN_CO_CCPLAN and FIN_CO_ORPLAN3
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
4
SAP Innovation Discovery – Try It
https://apps.support.sap.com/innovation-discovery/index.html
Installing an SAP Enhancement Package
You will need to install an Enhancement Package to use many of the options discussed in this presentation.
Installing an Add-On…
You will need to install an add-on to use the following applications in Controlling:• SAP Fiori Add-On,• SAP Financial Closing cockpit
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
8
One atomic copy of data for Transactions + Analysis, all in Memory
Eliminate unnecessary complexity and latency Less hardware to manage Accelerate through innovation, simplification + in-memory
3 copies of data in different data models Inherent data latency Poor innovation leading to wastage
Transactions + Analysis + Acceleration processes separated
SAP HANA(DRAM)
Transact
ETL
Analyze
ETL
Re-think Data Management for Real-time Business
A Common Database Approach for OLTP and OLAP Using an In-Memory Column DatabaseHasso Plattner
Accelerate
Cache VS
Data Warehouse Approach to Profitability Reporting
Transact
ETL
Analyze
ETL
Accelerate
Cache
Assigned to Operating Concern
Characteristics/Value Fields
Totals RecordsSummarization Levels…
Moved to InfoProviders
ExtractEnrichLoad…
Transactions RecordedIn CO-PA
InvoicesSales DocumentsAssessment CyclesSettlementOthers…
To Deliver
Profitability by Dimension…
Data Latency – Around 8 Hours
Leaner Approach to Profitability Reporting
UI: Analysis for Microsoft Office
TransactAnalyze
ETL
DataSource: BW Query
Operating Concern on SAP HANA
CE1 table (transactions)CE4 table (dimensions)
Virtual Info Provicder(Create using transaction KEIP)
Result for SAP IT: Postings to CO-PA are visible immediately and close schedule is reduced by three days.
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
12
Virtual InfoProviders for Material Ledger
1. Use Transaction HDBC to display all options2. Select Material Ledger > Virtual InfoProviders3. Generate Virtual InfoProviders for Material
Ledger and Actual Cost Component Split
Virtual InfoProviders for Material Ledger (cont.)
Sample Report Provisioned Using Virtual Infoprovider
Generated Virtual Info Provider
• See Also: SAP Note 1654843 – ERP accelerators: Material Ledger- Virtual InfoProviders
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
15
Virtual Info Providers for CO-PA
Use Transaction KEIP to Generate Your Virtual InfoProviderSee Also SAP Note 1667584 – Virtual InfoProvider for CO-PA
Virtual Info Providers for CO-PA (cont.)
Mastering SAP Financials 2013| 17
Info Provider for Your Operating Concern (Under Unassigned Nodes)
Sample Report Provisioned Using Virtual InfoProvider
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
18
Activate Using Transaction SFW5 (Switch Framework)
All business functions are off by default.You will need to have your system administrator activate those you need.
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
20
Parallel Accounting: Cost of Goods Manufactured
Value Flow — Overview
ControllingUpdate of Depreciation Expenses by Cost
Center and Version
Actual CostingPeriodic Costing RunUpdates either leading valuation or local valuation*
Version 0 (legal)(Actual rate)
Version N (par.
COGM) (Actual rate)
Actual CostingAlternative Valuation RunUpdates local valuation if both valuations use actual costs*
Depreciation Area 01 (IFRS) Asset Accounting
Perform Depreciation Run
Version 0(legal valuation)
Ledger 0L (IFRS)
Version N
Depreciation Area 02(Local GAAP)
Ledger N(Local GAAP)
(parallel COGM)
Version N (par. COGM)(Actual rate)
ControllingDirect Activity Allocation at standard;
Actual Rate Calculated at Period Close
Version 0 (legal)(Actual rate)
Version 0 (legal) (Standard rate)
Version N (par.COGM)(Actual rate)
OR
Financial AccountingUpdate of General Ledger
Post depreciation in Asset Accounting
Transfer depreciation to General Ledger
Transfer depreciation to Cost Center Accounting
Transfer of depreciation from asset accounting to controlling
The depreciation values for the international accounting principle are updated to the leading ledger in the SAP General Ledger application (or the global accounts in the classic general ledger) and to version 0 in controlling. The depreciation values for the second accounting principle are updated to a nonleading ledger in the SAP General Ledger (or the local accounts in the classic general ledger) and to a delta version in controlling.
* Improvements
Allows global manufacturing organizations to set activity prices that take account of depreciation according to IFRS and local GAAP.
In previous releases, only the values in the leading ledger were transferred to controlling. Other values were unavailable for controlling and therefore could not be used to determine activity prices and update inventory values for the goods manufactured.
Customer business challenges Business value
Asset Accountant
*
Financial Accountant ControllerParallel Accounting and
related processes*
Calculation of activity prices to reflect multiple accounting approaches
During all operational processes (such as confirmations and backflushing in logistics), the hours worked are valued with the planned activity rate in version 0 in controlling. At period close, activity price calculation is used to determine the actual activity rates for the leading version (international accounting standard) and the alternative version (local GAAP) in that period. Both are calculated as deltas to the initial standard activity price.
Perform order confirmation/backflushing
* Improvements
Calculate standard activity rates
Include standard activity rates in material ledger
Calculate actual activity rates for both approaches
Controller
Reduces manual effort at period close.
In previous releases, it was possible to calculate only activity prices to take account of the leading valuation. Alternative approaches required manual workarounds.
Customer business challenges Business value
Record working time
*
ControllerShopfloor Employee
Inventory Accountant
Parallel Accounting and related processes*
Select actual activity rates for activities used during period
Calculate actual product costs in leading or alternative valuation
Revalue material inventory in leading or alternative valuation
Inclusion of multiple activity prices in periodic costing run
Allows the periodic costing run to use activity price from leading valuation to determine the cost of goods manufactured according to the global accounting standard, and update the inventory values accordingly
May also be used to calculate actual costs according to the local accounting standard, if the group accounting approach is standard costs
* Improvements
Reduces manual effort at period closePeriodic costing run only allows the inclusion of activity prices in version 0
Customer business challenges Business value
**Parallel Accounting and
related processes*
Controller/Inventory Accountant Inventory Accountant
Controller/Inventory Accountant
Select actual activity rates for activities used during period
Calculate actual product costs for period in alternative valuation
Revalue material inventory in alternative valuation
Inclusion of multiple activity rates in alternative valuation run
Allows multiple valuation runs to be created to determine the value of the cost of goods manufactured. The periodic costing run uses the activity price for the leading valuation (version 0) while the alternative valuation run uses the activity price for the alternative valuation. It is then possible to revaluate inventory (create closing entries) to take account of both valuations.
** Improvements
Reduces manual effort at period close.In previous releases, the alternative valuation run could include different approaches to the valuation of raw materials, such as FIFO, LIFO, and so on, and initiate activity price calculations for the periods selected. Now activity prices for the relevant version can be included in the run.
Customer business challenges Business value
*
Parallel Accounting and related processes*
Controller/Inventory Accountant Inventory Accountant
Controller/Inventory Accountant
Parallel Accounting: Asset Accounting
Smart Financials
Processflow:
Generated documents by settlement:
(2) With Acc.Principle local GAAP
D 70 Machines 32000 10.200
C 50 Other Expenses 415000 10.000
C 50 Freight Expenses 472000 200
IFRS
D 70 Machines 32000 10.000
C 50 Other Expenses 415000 10.000
Assumptions: • Freight Costs are capitalized under
IFRS only• 100% of other expenses are
capitalized under IFRS and local GAAP
• 80% of other expenses are capitalized under Tax Law.
local GAAP
(2c) With Acc.Principle TAX D 70 Machines 32000 8.000
C 50 Other Expenses 415000 8.000
Tax
(1) With Acc.Principle IFRS
Investm. Order
Other expenses,Freight costs
Ext. Procurement,Production costs
Settlement AuC, Asset
Parallel Accounting for Fixed Assets
FI-AA (New) – Settlement
• CO generates accounting principle specific postings• Assign settlement rule for AuC: you need to assign a settlement
rule for each line item (per accounting principle)
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
30
Stock in Transit and Actual Costing
Stock in Transit for (Cross-Company-Code) Sales Processes
During the transportation phase companies, can keep ownership of the materials that are sent to a customer or another company code (visible as stock in transit in this company).
Alternatively, ownership for these materials (during the transportation phase) can be directly transferred to the receiving company code (visible as stock in transit in the receiving company code).
There is also an option to move materials from one stock in transit to another.
Delivered by Business Function: Cross-Company-Code Stock Transfer & Actual Costing
Create Stock Transport Order
* Improvements
This functionality enables companies to track and manage ownership changes better when selling materials to a customer or another company code.
Companies can more easily fulfill the legal requirement of showing all the stock values in the group.
In sales processes and cross-company transfer processes, it was impossible to model stock in transit. The ownership of the material was not reflected correctly in SAP ERP.
When selling materials from one company code to another using the two-step approach, the stock value did not automatically appear in the balance sheet after the first step.
Customer business challenges Business value
Purchaser
Create Cross-Company Delivery
Perform Goods Issue
Perform Goods Receipt
Manage Ownership Transfer *
*
Plant Manager Warehouse Clerk Warehouse Clerk
*
EHP 5: Cross-Company Code Material Transfer with Stock in Transit
Sender Company Code Receiver Company Code
Sender‘s Free Stock
In plant In transit In plantIn transit
OutboundDelivery
Purchase Order
Receiver‘sFree Stock
Sender‘s Free Stock
Receiver‘sFree Stock
Sender‘s Transit Stock1
Sender‘s Free Stock
Receiver‘sFree Stock
Sender‘s Transit Stock2 Receiver‘s
Transit Stock
Sender‘s Free Stock
Receiver‘sFree Stock
Receiver‘s Transit Stock 3
Immediate Transfer (1-step scenario)
Goods stay in sender’s ownership during transfer
Ownership changes during the transfer, e.g., upon arrival in the port of destination
Ownership changes when leaving the sender
0
Actual costs and internal profit in company 1
Actual costs and internal profit in company 2
Actual costs and internal profit for the whole group
Cross-Company-Code Actual Costing
By activating this business function, you can extend material and actual costing to run across company codes without losing actual costs and actual cost component split at the company code border. The intercompany sales process allows transfer of the costs and cost component split information from the sending company code to the receiving company code. Calculation of mark-up or intercompany profit in such a value chain is also supported.
Delivered by Business Function: Cross-Company-Code Stock Transfer & Actual Costing
** Improvements
• Markups and transfer profits visible in cost element • Legal valuation: show transfer profit in actual cost component split• Group valuation: rollup of price variances • Group valuation: rollup of actual cost component split
Up to now, customers could not transfer actual cost component split information from one company code to another.
Marks-ups could not be used in a cross-company-code sales scenario.
Customer business challenges Business value
Cost accountant company 1
**
Cost accountant company 2 Group controller and portfolio manager
Cross-Company Actual Costing
Group
Company A
Company B
CostsRaw Mat. 20 Energy 25Labor 15Production 40
CostsRaw Mat. 100 Energy 0Labor 0Production 0
Sales process
Actual costing provides no visibility into cost structure after intercompany sales
The enhanced solution shall ensure cost transparency during intra-company sales by adding freight costs and intra-company profits to the costs incurred in the selling company code to provide a correct valuation from a group perspective
Issue Requirement
General Mechanism of Cost Transfer
• The new stock in transit processes secure that the inventory value is always recorded and present in material ledger.
• When a stock transfer between company codes is posted, ML records the value from the purchase order in parallel to the cost at the sending side.
• The PO price is used for the legal valuation, the cost is used for group valuation. The difference of both is shown as mark-up.
• If actual costs at sender are recalculated the mark-up and the group costs are adjusted.
Plant 1Total cost 1000
Materials 500
Labor 400
Overhead 100
Freight
CC Markup 0
Sold to
Plant 2Total cost 1100
Materials 1100
Labor 0
Overhead 0
Freight
CC Markup 100
PO-Price1100,-
37
Comparison of Views
• There are 3 different implementation options:• Legal View (LV): contains the markup, but will show no cost component
information from supply chain members outside the own company. Materials purchased from affiliate companies will populate only the material cost component and the markup • Default in currency type 10.
• Transparent Legal View (TLV): Contains the markup, and will preserve cost component information coming from affiliate companies if the logistical process allows that.• Activated by a BADI in currency type 10.
• Group View (GV): Can be used in parallel to the LV or TLV in a parallel valuation. Does not show a markup, since all processes are treated as if the plants were part of the same organization, without taking company code borders into account.
• Currency type 11 or 31.• An implementation can use either LV or TLV. GV can be added for both• The 2 typical scenarios to evaluate would be only TLV or LV + GV
Valuation Example in 3 Views
• LV (Legal View)• Total Cost from PO +
Freight Cost• Markup shown• CC collapsed
Plant 1Total cost 1000
Materials 500
Labor 400
Overhead 100
Freight
CC Markup 0
Sold to
Shipper
Plant 2 LV TLV GVTotal cost 1175 1175 1075
Materials 1100 600 500
Labor 0 400 400
Overhead 0 100 100
Freight 75 75 75
CC Markup 100 100 100
PO Price1100,-
Freightinvoice75,-
• TLV (Transparent Legal View) • Total Cost from PO +
Freight Cost• Markup shown• CC from Sender• Material cost include
markup
• GV (Group View)• Total Cost from
Sender + Freight• No Markup• CC from Sender
Screenshots in Group View
Plant 2000 sold 5 PC to plant 1000 within the same group:Cost Info is preservedNo Mark-up is shownA transit stock on the sending side was used intermediately
Screenshots in Transparent Legal View
Plant 2000 sold 5 PC to plant 1000 in another company codeConsider the different currencies:
GBP in plant 200
EUR in plant 1000
Currency conversion will take place using the rate GBP /EUR
The PO / Invoice Price was 4000 EUR
The cost component info is transferred (TLV is activated via BADI)
The consumption cost component for the material in plant 1000 is ‘other cost’. Therefore the ‘Delta Company Code’ is mirrored there
Usage of Transit Stock (Legal View)
1. Material is produced in plant 2000 using 2 materials and one activity
2. Material is moved into the transit stock, keeping its value
3. Material arrives in plant 1000 at the PO price of 4000 EUR
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
42
Operation Account Assignment
existing header costed orders operation level costing
header
operation
operation
operation
costs:plan/actual header
operation
operation
operationcosts:plan/actual
costs:plan/actual
costs:plan/actual
Operation Costs
Update of Plant Maintenance Cost View
OAA Order
The system status I0053 (ACAS in English) is displayed when the order operation is the account assignment object. This is the same indicator as for a PS network with activity level costing.
• Indication using System Status
OAA Order
• Account assignment details and operation costsThe account assignment details for an operation are shown on the Account Assignment tab of the operation detail view.Sub-operation account assignment values are inherited from the superior operation.The costs are displayed in the cost tabs on the lower panel.
existing header costed orders
operation level costing
header
operation
operation
operation
costs:plan/actual header
operation
operation
operationcosts:plan/actual
costs:plan/actual
costs:plan/actual
ORnnnn………
Reporting / Transactions / Extraction
Transformation of costs
(plan/actual) according to
value categories
OVnnnnOVnnnnOVnnnn…………
Stored in database as
Dynamic summation for header values
Operation Costs
• Update of Plant Maintenance Cost View
OAA order costs are only stored for the operation objects. Header totals are dynamically summed as required. No costs are stored on the database for the OAA Order object.
Reporting
The operation cost overview report shows costs for all operations by value category.The report can be run as a transaction IW40N and include sub-orders.
• Operation overview report
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
49
Activate Business Function and Relevant WebDynpros!
50
Use transaction SICF to activate the relevant webdynpro applications
Copy the WebDynpros from the Sample Roles to Your Controller Roles
51
Copy the delivered master data applications from the role SAP_CO_INTERNAL_CONTROLLER to your roles
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
52
WebDynpro Application for Cost Center Maintenance
53
Rolle
Configurable UI
54
WebDynpro Application for Cost Center Hierarchies
55
Inactive Versions
56
Changes can be made prior to a reorganization and stored as an inactive version
Inactive Versions (cont.)
57
Choose between versions in the application and in, e.g., Report Writer
Web Dynpro Application for Internal Orders
58
Web Dynpro Application for Activity Types
59
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
60
Projects: Cost Element Planning
61
Projects: Top-Down Planning
62
Web and Excel Frontend in EhP6
• Both frontends use the same backend planning model• Same planning queries and same planning functions
• All features described are available in both frontends
Web Dynpro Analysis Office
Query Adaptations
• Customers want to see: • Actual values• Plan values from other
years/versions• Formula columns
• „Planning is like reporting with editable columns“
Topics
• Finding Out About SAP’s innovations• New Reporting Options with SAP HANA
• Material Ledger• CO-PA
• New Business Functions for Controlling• FIN_CO_COGM• LOG_MM_SIT• LOG_EAM_OLC
• New Business Functions for the User Interfaces in Controlling• FIN_CO_CCMGMT• FIN_CO_CCPLAN, FIN_CO_ORPLAN
• Summary
65
SAP Resources
• http://help.sap.com/businesssuite > SAP ERP• Business Functions in SAP ERP > Enterprise Business
Functions > Accounting• CO, Parallel Cost of Goods Manufactured• CO, Cost Center Managerment• CO, Cost Center Planning• CO, Order Planning• Business Functions in SAP ERP > Enterprise Business
Functions > Logistics• MM, Stock in Transit and Actual Costing• Operation Account Assignment
67
Resources (cont.)
• www.financialsexpertonline.com/• Janet Salmon, “Provide Parallel Product Costs for Inventory Valuation in
the SAP General Ledger” (Financials Expert, October 2009).• Janet Salmon, “Use Alternative Valuation Runs in the Material Ledger to
Smooth Seasonal Price Variances” (Financials Expert, November 2007).• Marco Jordy “Don’t Wait Until After Go-live to Set Up Cross-Company
Code Controlling” (Financials Expert, September 2006).• Ashim A.Nanda “Cater to Arm’s Length Standards by automated
Intercompany Transfer Pricing Design” (Financials Expert, October 2010).• Janet Salmon, “Capture Service and Maintenance Costs at Operation
Level from SAP Enhancement Package 5” (Financials Expert, December 2012).
• Janet Salmon, “Refresh the Look of the Master Data in Cost Center Accounting with a New Business Function” (Financials Expert, February 2013).
68
Resources (cont.)
• https://scn.sap.com/docs/DOC-32680• http://scn.sap.com/docs/DOC-29523• SAP Notes 1836149, 1719702 (project planning) and
1777947 (cost center planning)
Other Resources
Janet Salmon, Controlling with SAP – Practical GuideISBN: ISBN 978-1-4932-1012-1https://www.sap-press.com/controlling-with-sap-practical-guide_3625/
Martin Munzel, New SAP Controlling Planning Interface
http://co.planning.espresso-tutorials.com
Five Key Ideas
70
• Use SAP Innovation Discovery to find out about Enhancement Packages, SAP Notes and other innovations
• Consider using virtual InfoProviders to improve your end user reporting
• If you are a global company, explore the new functions for Actual Costing and Multiple Valuations
• Don’t forget that some of the CO-related innovations might be in Logistics because of the integrated nature of SAP ERP
• Consider updating the look of your user interfaces and planning applications, especially if you are bringing new users online
Disclaimer
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