CO-PA New Funct 1 - General Topics

Table of Contents

Unit 4 Flows of Actual Values

Unit 5 Planning

Unit 6 Reporting

Unit 1 General Topics

Unit 2 Structures

Unit 3 Master Data

New Functions in CO-PA in Releases 4.0 and 4.5

General Topics

Parallel Update of Operating Concern Currency andCompany Code Currency in CO-PA

Use of Transfer Prices in CO-PA

Enhancements in Corporate Controlling

ContentsContents

Rel. 4.0 + 4.5

Bukrs 0002

Frf

Parallel Currencies - Business Background

In 3.0 all values in one operating concern were stored in one currency (operating concern currency).

In reporting, you can convert those values to any currency using monthly or annual average exchange rates.

Corporations in particular want to report their profitability in group currency (operating concern) as well as in the local currency (company code).

In order to ensure reconciled profitability reports with FI and to avoid currency variances, Release 4.0 lets you transfer both currencies to CO-PA for each transaction.

FRF

CompanyCompanycodecode

CompanyCompanycodecode

ControllingControllingareaarea

ControllingControllingareaarea

OperatingOperatingconcernconcern

OperatingOperatingconcernconcern

CO-CO-PAPA

Operat

ing

conce

rn c

ur.

Compan

y

code

cur.

Contro

lling

area

curre

ncy

Com

pany

code

curre

ncy

Outgoing invoice

intransaction currency

Customer

New

USDDEM

Parallel Currencies: Currency TypesRel. 4.0

costing-basedcosting-basedcosting-basedcosting-based

Working With Two Currencies: Overview Flows of Actual Data

All actual value flows can be stored in both the operating concern currency and the company code currency in parallel.

Planning

For each plan version, you decide which currency to use to store values (operating concern currency or company code currency).

Plan data in the company code currency can be translated periodically into the operating concern currency. This translation works in both directions.

Possibilities in Reporting

Cross-company reports in the operating concern currency

Reports in company code currency as well as operating concern currency, where the company code is a mandatory characteristic

Rel. 4.0

Parallel Currencies for Actual Data: Example

Frf

Subsidiary

Billing document to customer:

Product 1: 6000 FrF

Profit and Loss StatementRevenues 6000 FrF

Reconciliation

Headquarters CO-PA Report

Oper. concerncurrency:

Rev. 2000 DEM

Company codecurrency:

Rev. 6000 FrF

CO-CO-PAPA

Scenario:

FIFI

CoCd 0001

DM

CoCd 0002

Rel. 4.0

Parallel Currencies for Plan Data: Example

Characteristic Char. valueCustomer 4711

QuantityRevenueDiscountNet revenue......

Plandata -> Company code

currency (FRF)

-> Operating concern currency (DEM)

Copy/Revaluate

Selection

Select

Save

Customer: 4711Version: 120

Layout

Version 110Version 120

100 Units3000 FrF 200 FrF2800 FrF......

Rel. 4.0

Notes on Customizing Parallel Currencies

For purposes of reconciliation, you can store your CO-PA data in the operating concern currency and in the company code currency.

In the attributes for you operating concern, set whether data should also be stored in the company code currency.

For purposes of sales and profit planning, specify for each individual plan version whether it should store values in the operating concern currency or in the company code currency.

Rel. 4.0

Business Background

Normally, billing documents in SD are only created for "external sales" to third parties or other companies within the corporate group. (Intercompany)

Internal sales (such as stock transfers between profit centers) valuated on the basis of transfer prices are not a standard part of profitability analysis. (Intracompany)

Information:

Requirement: Organizations that treat their profit centers as

independent organizational units need to be able to see both internal and external sales in Profitability Analysis. (Intercompany + Intracompany)

Rel. 4.5

Different Views of a Corporation: Example

Internal +externalsales/profit

center view

Profit center Division 3 Division 3

Division 2 Division 2Division 1Division 1

Division 4Division 4

TP

TP

TP

Group viewGroup

Externalsales/

legal viewCompany code 3Company code 3

Salescompanies

Company code 2Company code 2

ProductionFinished goods


ProductionSemifinished gds.

TP

TP

Rel. 4.5

Different overviews in CO-PA

Group

Profit center


Marketingcompany


Prefabrication

Division 3Division 3

TP

TP

TP

Division 2Division 2Division 1Division 1

Group result

Revenues withthird parties

-Group CGM

Result for the legallyindependent company

Revenues with third parties + other

companies in corp. grp -

Legal CGM

Profit center result

Revenues with third parties, companies in corp. grp + profit ctrs

-Profit ctr CGM

Rel. 4.5

Result for the Legally Independent Company

Result

(Intercompany business)


Marketingcompany



Group-

external

customer

Revenues with companies

in corp. Grp-

Legal CGM

Revenues with 3rd parties-

Legal CGM

Pre 4.0

Group Result

Result


Marketingcompany



Group-

external

customer

From 4.0


Comp. CGM

Notes on Customizing "Group Results" You can now supplement the legal view of data in

CO-PA with all information necessary for the group result.

Use a characteristic (such as a intercompanyflag) to classify your customers as companies within the same corporate group to distinguish them from group-external companies.

Valuate your sales in parallel value fields with legal costs and group costs of goods manufactured.

Organize your reports as follows:

Legal reports to show the legal costs of goods manufactured

Group reports to show the group costs of goods manufactured

Ab 4.0

Productionorder

Salesorder

Cost center

Company code 1

PrCtr1 PrCtr2 PrCtr3 PrCtr4

L 70

G 70

P 70

75L 70G 70P 75

L 70

G 70

P 75

L 120G 90 P 140

L 120

G 90

P 140

100

120

CoCtr. 20CoCtr. 20

L 220

G 90

P 240

- +

Assume: Plan = Actual => No Variances

220

240

Company code 2 Company code 3

Productionorder

Integrated Parallel Valuation Approaches in the Transfer Price Solution (D45TP)

Semi-finished

Rawmaterials

Saleswarehouse

Finishedgoods

From 4.0

Parallel Valuation Approaches in R/3 Accounting

as in 3.0or or Cur.

Leg.

Cur.

GrpGrpPrCtr

Cur.EC-EC-PCAPCA

Profit Center Accounting

Cur.

Leg.

Cur.

GrpGrp

PrCtr

Cur.

FIFI

Financial Accounting

Oblig.

Opt.

Opt.

Cur.

Leg.

Cur.

GrpGrp

PrCtr

Cur.

CO-CO-OMOM

Controlling

See versionconcept

CO-CO-PCPC

Cur.

Leg.

Cur.

GrpGrp

CO-CO-PAPA

Opt.Oblig. Opt.Cur.

Leg.

Cur.

GrpGrp PrCtr

Cur.Material Ledger

From 4.0

PrCtr

.Cur.

Profit Center Result Using Transfer Prices

Result

(Intracompany business)

Group-

external

customer

From 4.5

PrCtr 4PrCtr 4PrCtr 3PrCtr 3PrCtr 2PrCtr 2PrCtr 1PrCtr 1

Revenues with companies in corporate group

- Profit center CGM


Profit center CGM

Revenues with profit ctrs-

Profit center CGM

Notes on Customizing

From 4.5

With the SAP Transfer price solution you can analyze the profitability of individual products on the basis of transfer prices for sales between profit centers.

The only prerequisite is that you store parallel valuation approaches in accounting (see course D45TP).

This involves specifying in the attributes of your operating concern if you wish to store profit center valuation and which currency type you wish to use.

Determine which value fields should be used to display internal revenues.

Finally, activate profit center valuation to save the the profitability data concurrently with the legal view.

New Functions for Group Controlling

Values stored in two parallel currencies

Valuation using group product cost estimates

Number of characteristics increased to 50

Realignment programs redesigned

Top-down distribution of actual data

Concepts for separating OLTP and OLAP

CO-PA New Funct 1 - General Topics

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