Controlling-Profitability Analysis (CO-PA) with SAP (2nd Edition)

Controlling-Profitability Analysis (CO-PA) with SAP (2nd Edition)

2012
978-1-59229-386-5
552

Product Details

• Find step-by-step configuration and implementation highlights for the CO-PA component
• Integrate CO-PA with SAP NetWeaver BW, SAP BusinessObjects Planning and Consolidation (BPC), and more
• Uncover new trends for in-memory computing and the SAP HANA platform

If you’re looking for a book that will help get you started with configuring Profitability Analysis (CO-PA) in SAP, look no further! Revised and updated, this best-seller will get you up to speed with the basic tools, methods, and key functionalities you need for a CO-PA implementation. Find what you need to make CO-PA work best for your business, and benefit from new information on integration topics, SAP BusinessObjects, and more.

Business and Technical Knowledge
Decide whether costing- or account-based CO-PA is best for your business requirements, and understand how to configure the software for a successful implementation.

Step-by-Step Instructions
Follow process-oriented steps, learn how to configure master data so it can be transferred to CO-PA from other SAP components, create reports, and define your planning environments.

Supplement CO-PA
Learn about tools and technologies that can supplement your CO-PA practices such as SAP BPC, SAP HANA, SAP NetWeaver BW, and SAP BusinessObjects Analytics.

Introduction to SAP HANA
Understand what new in-memory trends mean for your ability to process and analyze business data with CO-PA.

Updated and Expanded
Benefit from expanded content on topics like top-down distribution, work in process, reporting with CO-PA in the SAP NetWeaver BW environment, and much more.

Highlights

- Working with pre-delivered templates
- Operating concern configuration
- Reporting
- Actual value flows
- CO-PA Best Practices
- SAP Profitability Model
- Costing- and account-based CO-PA
- CO planning framework
- Top-down distribution
- SAP BusinessObjects Analytics
- SAP BusinessObjects tools
- SAP BusinessObjects Planning and
- Consolidation (BPC)
- SAP in-memory computing and HANA


The Author

Dr. Marco Sisfontes-Monge is a managing partner of Arellius Enterprises and the author of several books and articles. For more than 15 years he has supported SAP implementation teams, direct clients, and other customers around the world.

Table of Contents

  • ... Acknowledgments ... 15
  • ... Preface ... 17
  • 1 ... Introduction and Overview ... 19
  • 1.1 ... The Purpose of This Book ... 21
  • 1.2 ... How This Book Is Organized ... 23
  • 1.3 ... Summary ... 25
  • 2 ... Basics of Profitability Analysis ... 27
  • 2.1 ... Fundamental Principles ... 27
  • 2.2 ... Profitability Analysis as Multidimensional Analysis ... 29
  • 2.3 ... The Profitability Analysis Process ... 31
  • 2.4 ... Break-Even Analysis ... 33
  • 2.4.1 ... Revenues, Fixed and Variable Costs ... 33
  • 2.4.2 ... Sunken Costs ... 34
  • 2.5 ... Cost Classifications ... 34
  • 2.5.1 ... Costs Based on Their Function ... 35
  • 2.5.2 ... Costs Based on Activity ... 35
  • 2.5.3 ... Costs Depending on When They’re Charged Against Revenues ... 35
  • 2.5.4 ... Costs Depending on the Authority ... 36
  • 2.5.5 ... Costs Based on Their Importance to Decision Making ... 36
  • 2.6 ... Summary ... 37
  • 3 ... Introducing CO-PA with SAP ... 39
  • 3.1 ... General Overview of CO-PA ... 39
  • 3.1.1 ... OLTP ... 40
  • 3.1.2 ... OLAP ... 40
  • 3.1.3 ... Linking OLTP and OLAP ... 41
  • 3.1.4 ... SAP ERP ECC 6.0—Specific Recommendations ... 42
  • 3.2 ... The SAP Profitability Model ... 43
  • 3.3 ... Components of CO-PA ... 47
  • 3.3.1 ... Accessing the IMG ... 49
  • 3.3.2 ... Profitability Analysis Menu Items ... 49
  • 3.3.3 ... Master Data ... 52
  • 3.3.4 ... Planning ... 53
  • 3.3.5 ... Flows of Actual Values ... 54
  • 3.3.6 ... Information System ... 56
  • 3.3.7 ... Tools ... 57
  • 3.4 ... Working with SAP Operating Concern Templates ... 58
  • 3.4.1 ... The Quickstart S_GO Operating Concern Template ... 59
  • 3.4.2 ... Customizing ... 61
  • 3.4.3 ... Application Examples: Prepare Application Examples ... 75
  • 3.4.4 ... Application Examples: Perform Application Examples ... 76
  • 3.4.5 ... Tools ... 78
  • 3.5 ... Manually Activating an Operating Concern and Setting It as Current ... 78
  • 3.6 ... Summary ... 81
  • 4 ... Configuring Costing-Based CO-PA ... 83
  • 4.1 ... General CO-PA Overview ... 83
  • 4.2 ... Costing-Based CO-PA versus Account-Based CO-PA ... 85
  • 4.3 ... Creating Characteristics and Value Fields ... 88
  • 4.4 ... Maintaining an Operating Concern ... 96
  • 4.4.1 ... Accessing and Creating Operating Concerns ... 96
  • 4.4.2 ... Creating User-Defined Value Fields and Characteristics Within an Operating Concern ... 101
  • 4.4.3 ... Specifying the Operating Concern Currency ... 103
  • 4.5 ... Defining Profitability Segments and CO-PA Exceptions ... 104
  • 4.5.1 ... Profitability Segments Overview ... 104
  • 4.5.2 ... Exceptions Overview ... 105
  • 4.5.3 ... Automatically Excluded Characteristics ... 105
  • 4.5.4 ... Defining Profitability Segment Characteristics ... 106
  • 4.5.5 ... Creating Exceptions ... 107
  • 4.5.6 ... Exception Recommendations ... 110
  • 4.6 ... Operating Concern Attributes Tab ... 111
  • 4.7 ... Assigning a Controlling Area to an Operating Concern ... 114
  • 4.7.1 ... Reviewing Controlling Area Components and Verifying the Existence of Operating Concerns ... 114
  • 4.7.2 ... Assigning a Company Code to a Controlling Area ... 117
  • 4.8 ... Activating CO-PA in R/3 or SAP ERP ECC 6.0 ... 121
  • 4.8.1 ... Checking the Current Profitability Analysis Activation Status ... 121
  • 4.8.2 ... Performing the Activation ... 122
  • 4.8.3 ... Verifying the Activation ... 125
  • 4.9 ... CO-PA: Additional Functionalities ... 126
  • 4.9.1 ... Import Operating Concern ... 128
  • 4.9.2 ... Copy Operating Concern ... 129
  • 4.9.3 ... Copy Specific Objects ... 130
  • 4.10 ... Performing CO-PA Transports ... 132
  • 4.10.1 ... Automatic Transport or Manual Transport ... 135
  • 4.10.2 ... Client-Specific and Cross-Client Settings ... 136
  • 4.10.3 ... Transporting Translated Settings ... 137
  • 4.10.4 ... Transporting CO-PA Assessment Cycles ... 139
  • 4.10.5 ... Transporting CO-PA Layouts ... 142
  • 4.10.6 ... Transporting Planning Levels ... 145
  • 4.11 ... Summary ... 146
  • 5 ... Master Data in CO-PA ... 149
  • 5.1 ... Components of Master Data Menus in CO-PA ... 149
  • 5.2 ... Maintaining Characteristic Values ... 151
  • 5.2.1 ... Define Characteristics Hierarchy ... 153
  • 5.2.2 ... Derivation, Derivation Tables, and Rules Overview ... 159
  • 5.2.3 ... Creating Characteristic Derivations and Derivation Rules ... 170
  • 5.2.4 ... Valuation in CO-PA ... 186
  • 5.3 ... Working with Valuation Methods ... 189
  • 5.3.1 ... Working with Material Cost Estimates ... 191
  • 5.3.2 ... Working with Conditions and Costing Sheets ... 197
  • 5.3.3 ... Assigning Condition Types to CO-PA Value Fields ... 205
  • 5.4 ... Valuation Strategies ... 207
  • 5.5 ... Summary ... 213
  • 6 ... Introduction to CO-PA Planning ... 215
  • 6.1 ... Overview ... 215
  • 6.2 ... The Framework of Corporate Planning: Sales and Profit Planning in CO-PA ... 218
  • 6.3 ... Planning with CO-PA or SAP NetWeaver BI ... 221
  • 6.4 ... A First Look at the CO-PA Planning Framework ... 224
  • 6.5 ... Number Ranges for Planning Data ... 229
  • 6.6 ... Maintaining Versions ... 230
  • 6.7 ... Planning with the CO-PA Planning Framework ... 232
  • 6.7.1 ... Planning Levels ... 233
  • 6.7.2 ... Planning Package ... 234
  • 6.7.3 ... Working with Planning Methods, Parameter Sets, and Planning Layouts ... 237
  • 6.7.4 ... Planning Variables ... 245
  • 6.8 ... The Report Painter and CO-PA Planning Layouts ... 249
  • 6.9 ... Planning Profiles ... 254
  • 6.10 ... Summary ... 260
  • 7 ... CO-PA Planning: Configuration ... 261
  • 7.1 ... Basic Planning Methods in the CO-PA Planning Framework ... 261
  • 7.1.1 ... Enter Planning Data ... 262
  • 7.1.2 ... Display Planning Data ... 262
  • 7.1.3 ... Copy ... 263
  • 7.1.4 ... Forecast ... 267
  • 7.1.5 ... Valuation ... 276
  • 7.1.6 ... Revaluation ... 276
  • 7.1.7 ... Ratios ... 280
  • 7.1.8 ... Delete ... 291
  • 7.2 ... Planning Sequences ... 293
  • 7.3 ... Configuring CO-PA Assessments Cycles ... 295
  • 7.3.1 ... Configuring Allocations and Assessment Cycles ... 298
  • 7.3.2 ... Creating a CO-PA Assessment Cycle ... 304
  • 7.4 ... Top-Down Distribution ... 311
  • 7.5 ... Summary ... 316
  • 8 ... Flows of Actual Values: Transferring Actual Data into CO-PA ... 319
  • 8.1 ... Overview ... 320
  • 8.2 ... General Review of the CO-PA Flows of Actual Values Menu ... 322
  • 8.3 ... Transfer of Incoming Sales Orders ... 324
  • 8.3.1 ... Activating the Transfer of Incoming Sales Orders ... 328
  • 8.3.2 ... Correct Errors in Sales Orders ... 331
  • 8.3.3 ... Post Existing Sales Orders to CO-PA ... 334
  • 8.4 ... Transfer of Billing Documents ... 338
  • 8.5 ... Order and Project Settlement ... 341
  • 8.5.1 ... Define a PA Transfer Structure for Settlement ... 342
  • 8.5.2 ... Assign a PA Transfer Structure to a Settlement Profile ... 344
  • 8.6 ... Direct Posting from FI/MM ... 350
  • 8.6.1 ... Maintain PA Transfer Structure for Direct Postings ... 351
  • 8.6.2 ... Automatic Account Assignment ... 355
  • 8.7 ... Settlement of Production Variances ... 358
  • 8.8 ... Transfer of Overhead ... 360
  • 8.9 ... Summary ... 362
  • 9 ... CO-PA Reporting: Basics ... 363
  • 9.1 ... CO-PA Reporting Scenarios ... 364
  • 9.2 ... Working with Reports in CO-PA ... 367
  • 9.2.1 ... Report Types ... 368
  • 9.2.2 ... Creating a Basic Report ... 369
  • 9.2.3 ... Creating Reports Based on Line Items ... 380
  • 9.3 ... Working with Forms ... 384
  • 9.4 ... Summary ... 390
  • 10 ... CO-PA Reporting: Configuration ... 391
  • 10.1 ... Predefining Headers and Footers ... 391
  • 10.1.1 ... Frames ... 393
  • 10.1.2 ... General Variables ... 395
  • 10.1.3 ... Selection Parameters ... 397
  • 10.1.4 ... Footers ... 399
  • 10.2 ... Defining Variables in Reports ... 400
  • 10.3 ... CO-PA Reporting: Best Practices ... 409
  • 10.3.1 ... Creating Frozen Reports ... 411
  • 10.3.2 ... Key Figure Schemes ... 421
  • 10.3.3 ... Improving Performance in Reports and Forms Using Summarization Levels ... 431
  • 10.4 ... Summary ... 434
  • 11 ... Working with Account-Based CO-PA ... 435
  • 11.1 ... Differences between Costing-Based and Account-Based CO-PA ... 435
  • 11.1.1 ... Defining Cost Elements for CO-PA ... 436
  • 11.1.2 ... Changing the Operating Concern from Costing-Based to Account-Based CO-PA ... 439
  • 11.1.3 ... Controlling Areas and Account-Based CO-PA ... 439
  • 11.1.4 ... Currencies and Account-Based CO-PA ... 440
  • 11.1.5 ... Data Structures and Data Retention ... 440
  • 11.1.6 ... Characteristic Derivation and Valuation ... 441
  • 11.1.7 ... Actual Data Flow and Data Transfer ... 441
  • 11.1.8 ... Profitability Analysis Reports ... 442
  • 11.1.9 ... Assessment of Cost Center Costs ... 443
  • 11.1.10 ... Order and Project Settlement ... 443
  • 11.1.11 ... Internal Activity Allocation ... 443
  • 11.1.12 ... Work in Process (WIP) and Results Analysis (RA) ... 444
  • 11.1.13 ... Conclusion ... 455
  • 11.2 ... Sales and Profit Planning ... 456
  • 11.3 ... External Data Transfer ... 456
  • 11.4 ... Summary ... 456
  • 12 ... Tips and Tricks with CO-PA ... 459
  • 12.1 ... Integrate Planning Layouts with Microsoft Excel ... 459
  • 12.2 ... Working with Summarization Levels ... 462
  • 12.3 ... Performing Report Splitting ... 469
  • 12.4 ... Working with the Report-Report Interface (RRI) ... 471
  • 12.5 ... Final Tips ... 476
  • 12.6 ... Summary ... 477
  • 13 ... Enhancing CO-PA with SAP BusinessObjects Tools ... 479
  • 13.1 ... CO-PA Integration with SAP Business Analytics ... 480
  • 13.1.1 ... Existing Technologies in the Business Analytics Suite ... 480
  • 13.1.2 ... SAP BusinessObjects Tools—Activating Pre-Delivered CO-PA Functionality Available in SAP NetWeaver Business Warehouse ... 483
  • 13.1.3 ... What Tools Should I Use? ... 488
  • 13.2 ... SAP BusinessObjects Integration with CO-PA Structures ... 489
  • 13.3 ... Comparing SAP BusinessObjects Planning and Consolidation (BPC) and CO-PA ... 492
  • 13.3.1 ... Deciding if SAP BPC is Right for You ... 494
  • 13.3.2 ... General Overview of the SAP BPC Extraction and Upload Process ... 500
  • 13.4 ... SAP High Performance Analytic Appliance (HANA) and In-Memory Computing ... 511
  • 13.4.1 ... Capabilities Overview ... 512
  • 13.4.2 ... SAP HANA Architecture ... 515
  • 13.4.3 ... A New Platform to Support a Variety of Tools ... 518
  • 13.4.4 ... A Quick Scenario: CO-PA and SAP HANA ... 520
  • 13.5 ... Summary ... 526
  • 14 ... Concluding Remarks ... 529
  • ... Appendices ... 533
  • A ... Glossary ... 535
  • B ... Bibliography ... 539
  • C ... The Author ... 541
  • ... Index ... 543