From Sales Planning to Integrated Profit Planning

8/4/2019 From Sales Planning to Integrated Profit Planning

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SAP AG CO-PA Planning / S. Kraus June.1998/ 1

Stefan KrausProduct Manager CO-PASAP AG Walldorf

From Sales Planning tointegrated Profit Planning

SAPPHIRE Madrid, June 1998




Agenda

Introduction

Example of a Typical Implementation in CO-PAPlanning

Setting Objectives

Bottom-Up Planning

Monitoring Variances

Simulations and Goal-Seeking Approaches

Emphasis on New 4.0 and 4.5 Functions

Ratio Planning Benefits of Excel Integration

Event Planning




CO

FI

Cost Element Accounting

EC-PCA

Processes

Cost centers

Internalorders

Actual: Integrated Valueflows in CO-PA

SegmentsProfitability Analysis

Overhead Cost Controlling

Costobjects

Product CostControlling

SD

REVENUES

StandardCoGM




Overview of CO-PA Planning Functions

CustomizableDesign

Integration ofExcel

Planning Layouts

Revaluation

Valuation

Period Distrib.

Forecasts...

Planning Aids

Event Planning

Monitoring of SalesCampaigns

Sales and Promotion Budgets

Automatic Planning Functions

Transfer of Cost Center/ ProcessPlans

Settlement of Order/ProjectPlans

Transfer Quantity from/to SOP

Transfer Plan Data from/to LIS

Transfer of Plandata to EC-PCA

Integrated Planning

Copy / Change / GeneratePlans

Top-Down Distribution

Planning in

CO-PA




Setting and Attaining Objectives in ProfitPlanning

SettingObjectives

Head Office

Sales Organi- zations

Top-DownDistributionby SalesOrganization

Bottom-UpSales QuantityPlanning

Valuation

Are ObjectivesAttained?

Simulation

RollingForecast




Setting ObjectivesSetting

Objectives

Revaluate,

aggregate,

redistribute

Manual

planning

Valuatefurthervalues

Distribute

top-down

Generate a

plan proposal

(e.g. Copyactual data)




Planning Objectives with Goal-Seek Approach

Goal Seek

Source Sold quantity

Target Margin

Value 20,000.00


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Top-Down Distribution Concept

Product hier.

Pumps Revenue9,000

9,000-

1998 Plan Data

ProductP1P2

Prod. hierarchyPumpsPumps

Revenue3,0006,000

Results: 1998 Plan Data

'97 Sls Qty 100200

Reference Data

ProductP1 P2

Prod.hier. Pumps Pumps

Data to beDistributed

Results

Top-DownDistribution

By OperatingUnit



Bottom-Up Sales Quantity PlanningBottom-Up

Sales QuantityPlanning

Sales org.Product:

Prod. grp:Customer:

SO1Prod1

PrgrACust1

Quantity 120

Sales org.Product:Prod. grp:Customer:

SO1Prod2PrgrBCust2

Quantity 180

Sales org.Product:Prod. grp:Customer:

SO1Prod1PrgrACust2

Quantity 130

Sales org. SO1Prod. grp: PrgrA Prgr B

Quantity 250 180



Sales volume Sales price Sales deductions Cost of sales

Valuation of Actual Data

Quantity flow

Purchasing Manufacturing Sales

Product costs Overhead costs

Project costs

Profitability Analysis - Actual Databy Customer / Product / ...

Valuation



Sales price Sales volume Sales deductions Cost of sales

Valuation of Plans with Operative Data

Quantity flow


Product costs Overhead costs

Project costs

Profitability Analysis - Sales Planby Product / Key Customer/...

Profitability Analysis - Actual Databy Customer / Product / ...

Plan datatransfers

Valuationwith CO-PC

Valuationwith SD prices

Valuation



CO-PA Reference Data

Valuation with Ratios Implicitly Stored in CO-PA ReferenceData

Quantity flow


Product costs

Sales price Sales volume Sales deductions Cost of sales

Overhead costs

Project costs

Profitability Analysis - Sales Planby Product / Key Customer/...

Profitability Analysis - Actual data

by Customer / Product /...

Ratio Ratio Ratio Ratio Ratio Ratio Ratio Ratio Ratio Ratio Ratio



Planning with a Ratio Scheme

Currentsales plan

CustomerGroup

Revenue(Plan)

Price(Ratio M1)

Sales Qty.(Plan)

Record Type F Year 1997

Version R, Reference Version

0102

03

10.0015.00

12.00

10,00015,000

20,000

100,000225,000

240,000Current

sales plan Customer

Group

Revenue(Qty * M1)

Sales Qty.(Plan)

Record Type F Year 1998Version 1, Plan Version

01

0203

25,000

10,00010,000

250,000

150,000120,000 Revenue

QuantityRatio M1 =Ratio Scheme A:



Status ofplan mustbe checked

Workflow: Simulating Quantity and Price Changes

Referenzversion

Qty (Q1) 150Rev. (R1) 3000Net revenue......

Current plan version

Actual data

serves asbasis

Price Planning

Quantity Planning

Changequantities

Simulation

Plan versionserves as

basis

Quantitiesare to beplanned

Plan datacopied toref. version

Analyticalplanning of

sales quantities

Copy sales

quantities

Correct,revaluatequantities

Quantityplan isdefined

Referenceversiondefined

Modifyreferenceversion

Plan pricesexist

Valuatequantitiesusing ref.

prices

Planning

goals met

Changeprices

Valuationusing ratios

Quantity (Q1) 100Revenue (R1) 2000Net revenue......

- Revaluate- Correct prices- Redistribute to periods- Calculate average prices

(e.g. for product groups)

Reference versionActual data

copied toref. version



Are Objectives Attained?

Key customer, C1 C2 C1Product, P1 P2 P2Quantity 100 PC 150 PC 200 PC

Planning

of

sales quantity

Manual

planningValuation

Compare

objectives

with

sales plan

Generate a

plan proposal

(e.g. copyactual data)

Sales org. 1000 1000Product P1 P2

Objectivesare

attained ?

DivisionProd. Hier. Pumps

Company


Objectives

Bottom-upPlan



Setting and Attaining Objectives in ProfitPlanning

SettingObjectives

Head Office

Sales Organi- zations

Top-DownDistributionby SalesOrganization

Bottom-UpSales QuantityPlanning

Valuation


Simulation

RollingForecast



Planning of Events

Reference tovalue, qtyfield

Reference toperiod

0 1 2 3 4 5 6 7 8

Example of a revaluation factor

Sales campaign

Reference toprofitablitysegment



Integration of MS Excel in Profitability Planning

Flexible downloadand upload to

support decentralizedplanning

Planning layouts communicate

with Excel

From Sales Planning to Integrated Profit Planning

Documents

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