Controlling with SAP: A Practical Guide (H3195)

Description

* Understand how your controlling processes relate to SAP

* Discover the many features and functionalities of the Controlling component

* Up-to-date for enhancement package 5

 If you use Controlling in SAP ERP Financials, this book is a must-have resource for your daily work. You'll learn how to perform transactions with fewer steps and less effort, and you'll discover how to troubleshoot minor problems and system issues. In addition to the core areas of Controlling, you'll also find coverage of more advanced topics, such as SAP NetWeaver BW, SAP BusinessObjects, the SAP Financials Closing Cockpit, and topics added in recent enhancement packages. This book will help you to master the system and work more efficiently on a daily basis.

CONTENTS:

... Preface ... 15

1 ... Introduction ... 25

1.1 ... Basic Controlling Functions ... 28

1.1.1 ... Goals of Controlling ... 29

1.1.2 ... Cost Accounting in the United States ... 31

1.1.3 ... Standard Costs and Actual Costs ... 32

1.1.4 ... Investment and Project Controlling ... 32

1.1.5 ... Lean Accounting ... 33

1.2 ... Essential Record Keeping Functions ... 33

1.2.1 ... Record Keeping by Cost Center ... 35

1.2.2 ... Record Keeping by Order ... 38

1.2.3 ... Record Keeping by Project ... 39

1.3 ... Managing Close and Valuation Processes ... 40

1.3.1 ... Valuation of Goods Movements ... 40

1.3.2 ... Work in Process ... 41

1.3.3 ... Scrap ... 41

1.3.4 ... Work in Process for Projects ... 42

1.4 ... Preparing Budgets and Planning ... 43

1.4.1 ... Driver-Based Cost Planning ... 43

1.4.2 ... Driver-Based Cost Planning Between Cost Centers ... 45

1.4.3 ... Budgeting ... 46

1.5 ... Process Analysis and Internal Controls ... 47

1.5.1 ... Master Data Controls ... 47

1.5.2 ... Workflow ... 48

1.5.3 ... Process Controls ... 48

1.6 ... Summary ... 49

2 ... Reporting ... 51

2.1 ... Cost Center Line Items ... 52

2.1.1 ... Classic Cost Center Line Item Report ... 52

2.1.2 ... Simplified Cost Center Line Item Report ... 59

2.1.3 ... Totals Records for Cost Centers ... 61

2.2 ... Order Line Items ... 62

2.2.1 ... Classic Order Line Items ... 63

2.2.2 ... Simplified Order Line Items ... 65

2.3 ... Product Costs: Itemization ... 65

2.3.1 ... Classic Reports for Product Cost Reporting ... 67

2.3.2 ... Simplified Reports for Product Cost Reporting ... 70

2.4 ... Product Costs: Cost Objects ... 72

2.4.1 ... Product Cost by Order ... 72

2.4.2 ... Product Cost by Period ... 74

2.4.3 ... Product Costs by Sales Order ... 76

2.5 ... Material Ledger ... 77

2.6 ... Profitability Analysis Reports ... 80

2.7 ... Summary ... 87

3 ... Master Data Owned by Controlling ... 89

3.1 ... How to Set Up Cost Centers ... 90

3.1.1 ... Responsibility for a Cost Center ... 92

3.1.2 ... Embedding the Cost Center Design in SAP ERP ... 93

3.1.3 ... Ensuring that Cost Center Expenses Are Handled Correctly ... 95

3.1.4 ... Cost Center Hierarchies ... 97

3.1.5 ... Enterprise Organization ... 102

3.1.6 ... Reporting of Cost Center Master Data ... 103

3.2 ... Internal Orders ... 105

3.2.1 ... Internal Orders and Cost Centers ... 108

3.2.2 ... Settlement Rules for Internal Orders ... 108

3.2.3 ... Statistical Internal Orders ... 110

3.2.4 ... Order Groups ... 111

3.2.5 ... Reporting Order Master Data ... 112

3.3 ... Statistical Key Figures ... 114

3.3.1 ... Statistical Key Figure Groups ... 117

3.4 ... Activity Types ... 117

3.4.1 ... Direct and Indirect Activity Allocations ... 120

3.4.2 ... Settings for Activity Price Calculation ... 121

3.4.3 ... Activity Type Groups ... 122

3.4.4 ... Reporting Activity Type Master Data ... 122

3.5 ... Secondary Cost Elements ... 123

3.5.1 ... Cost Element Groups ... 127

3.5.2 ... Reporting on Cost Element Master Data ... 128

3.6 ... Product Cost Collectors ... 130

3.7 ... Cost Object Hierarchies ... 132

3.8 ... Maintenance Issues ... 134

3.8.1 ... Time-Dependent Fields ... 135

3.8.2 ... Status Management ... 136

3.9 ... Change Requests for a SOX-Compliant Master Data Process ... 137

3.10 ... Summary ... 141

4 ... Master Data Where Controlling Is a Stakeholder ... 143

4.1 ... Material Masters ... 144

4.1.1 ... Basic View ... 146

4.1.2 ... Accounting View ... 147

4.1.3 ... Costing Views ... 151

4.1.4 ... MRP View ... 154

4.1.5 ... Sales View ... 154

4.1.6 ... Batches ... 155

4.2 ... Customer Masters ... 156

4.3 ... Bills of Material ... 158

4.3.1 ... Quantity Definition ... 161

4.3.2 ... Co-Products and By-Products ... 161

4.3.3 ... Recursive BOMs ... 164

4.3.4 ... Configurable BOMs ... 165

4.4 ... Routings ... 168

4.4.1 ... Types of Routing ... 168

4.4.2 ... Operation Values ... 170

4.4.3 ... Operation-Level Costing ... 172

4.5 ... Work Centers and Resources ... 173

4.6 ... Procurement Alternatives and Mixed Costing ... 175

4.6.1 ... Internal Processing ... 176

4.6.2 ... External Procurement ... 177

4.6.3 ... Plant to Plant Transfer ... 177

4.6.4 ... Subcontracting ... 178

4.6.5 ... Mixing Ratios ... 178

4.7 ... Projects ... 179

4.7.1 ... Work Breakdown Structure Elements ... 180

4.7.2 ... Networks and Network Activities ... 181

4.8 ... Investment Programs ... 183

4.8.1 ... Appropriation Requests ... 185

4.9 ... Primary Cost Elements and P&L Accounts ... 186

4.9.1 ... Chart of Accounts ... 187

4.9.2 ... Controlling and the Financial Accounts ... 189

4.10 ... Setting Prices for Product Costing ... 191

4.10.1 ... Setting Standard Costs for Raw Materials ... 192

4.10.2 ... Balance Sheet Valuation ... 195

4.10.3 ... Calculating Actual Costs ... 196

4.10.4 ... Cross-Company Costing ... 196

4.11 ... Summary ... 198

5 ... Planning and Budgeting ... 201

5.1 ... Complete Sales Plan in a Manufacturing Environment ... 203

5.1.1 ... Sales and Operations Planning ... 205

5.1.2 ... Cost Center Planning ... 211

5.1.3 ... Calculate Standard Costs for Products to Be Manufactured ... 230

5.1.4 ... Profitability Planning ... 245

5.2 ... Planning and Budgeting For Investment Programs ... 246

5.2.1 ... Investment Program ... 247

5.2.2 ... Overall Plan ... 247

5.2.3 ... Cost Element Planning ... 248

5.2.4 ... Budgeting ... 251

5.2.5 ... Displaying and Changing a Budget ... 254

5.3 ... Summary ... 256

6 ... Actual Postings ... 257

6.1 ... Integrated Process Flows: Buy, Make, and Sell ... 257

6.1.1 ... Procure to Pay ... 258

6.1.2 ... Plan to Manufacture ... 267

6.1.3 ... Order to Cash ... 281

6.2 ... Distribution of Usage Variances ... 289

6.2.1 ... Capturing Physical Inventory Documents ... 290

6.2.2 ... Distribution of Usage Variances ... 292

6.2.3 ... Distribution of Activities ... 293

6.3 ... Integrated Process Flows: Other Logistics Scenarios ... 295

6.3.1 ... Product Cost by Order ... 295

6.3.2 ... Product Cost by Period ... 300

6.3.3 ... Product Cost by Sales Order ... 302

6.3.4 ... Project Controlling ... 307

6.4 ... Corrections or Adjustment Postings ... 313

6.4.1 ... Reposting Line Items ... 314

6.4.2 ... Correcting an Activity Allocation ... 317

6.4.3 ... Reposting Values ... 318

6.5 ... Cross-Company Postings ... 319

6.6 ... Summary ... 324

7 ... Period Close ... 325

7.1 ... Allocations ... 326

7.1.1 ... Steps Prior to the Start of the Period Close ... 328

7.1.2 ... Depreciation of Fixed Assets ... 328

7.1.3 ... Allocations Between Cost Centers ... 330

7.1.4 ... Allocations to Profitability Analysis ... 343

7.1.5 ... Target Costs and Variances on Cost Centers ... 347

7.2 ... Calculations and Settlement ... 352

7.2.1 ... Overhead Calculation ... 355

7.2.2 ... Work in Process ... 357

7.2.3 ... Target Costs and Variances in Production ... 361

7.2.4 ... Settlement ... 367

7.2.5 ... Product Cost by Sales Order ... 369

7.3 ... Multilevel Actual Costing in Material Ledger ... 371

7.3.1 ... Types of Costing Run ... 372

7.3.2 ... Periodic Costing Run ... 372

7.3.3 ... Alternative Valuation Run ... 378

7.4 ... CO-PA Processes ... 384

7.4.1 ... Revaluation ... 384

7.4.2 ... Top-Down Distribution ... 385

7.5 ... Summary ... 386

8 ... Reporting in SAP NetWeaver BW and SAP Business - Objects ... 387

8.1 ... Reporting on Large Data Volumes in SAP ERP ... 388

8.1.1 ... Using Extracts to Accelerate Cost Center and Internal Order Reports ... 388

8.1.2 ... Using Summarization Levels to Accelerate CO-PA Reports ... 392

8.1.3 ... Using Summarization in Product Cost Reports ... 393

8.2 ... How to Decide Whether You Need SAP NetWeaver BW for Reporting ... 395

8.2.1 ... Performance Concerns ... 395

8.2.2 ... Multidimensionality ... 401

8.2.3 ... Navigation Attributes ... 404

8.2.4 ... Inclusion of Non-SAP Data ... 408

8.2.5 ... Building Queries ... 409

8.3 ... Cost Center Reporting in SAP NetWeaver BW ... 413

8.4 ... Reporting with SAP Business - Objects Tools ... 418

8.4.1 ... Crystal Reports for Controlling ... 418

8.4.2 ... Dashboards for Controlling ... 422

8.4.3 ... SAP Business - Objects Explorer for CO-PA Reporting ... 423

8.5 ... Summary ... 426

9 ... Master Data in a Multisystem/Shared Service Environment ... 427

9.1 ... Change Requests in SAP ERP ... 430

9.2 ... New Solutions for Handling Master Data in a Multisystem Environment ... 436

9.2.1 ... Data Modeling in SAP Master Data Governance for Financials ... 437

9.2.2 ... Editions in SAP Master Data Governance for Financials ... 438

9.3 ... Governance Requirements for Master Data ... 443

9.3.1 ... Creating a Change Request ... 443

9.3.2 ... Finding Change Requests ... 448

9.3.3 ... Workflow Steps for a Change Request ... 449

9.4 ... Creating Change Requests in a Shared Service Center ... 451

9.5 ... Summary ... 456

10 ... Planning in SAP NetWeaver BW or SAP SEM ... 457

10.1 ... New Options for Planning ... 459

10.1.1 ... Structure of Planning Applications in SAP ERP ... 459

10.1.2 ... Structure of Planning Applications in SAP NetWeaver BW ... 462

10.1.3 ... Multidimensional Database Layer in SAP NetWeaver BW ... 464

10.1.4 ... Data Entry and Planning Functions ... 469

10.2 ... Options in SAP ERP from SAP Enhancement Package 6 for SAP ERP 6.0 ... 472

10.2.1 ... Role Project Planner and Cost Estimator ... 473

10.2.2 ... Overall Planning ... 474

10.2.3 ... Cost Element Planning ... 476

10.3 ... Express Planning as a Framework for the Planning Process ... 479

10.3.1 ... Creating a Planning Round ... 480

10.3.2 ... How Cost Center Managers Submit Their Data ... 487

10.3.3 ... Monitoring, Reviewing, and Approving the Planning Process ... 491

10.3.4 ... Embedding Overall and Cost Element Planning in Express Planning ... 493

10.4 ... Summary ... 495

11 ... Allocations Using SAP Cost and Profitability Management ... 497

11.1 ... New Tools for Performing Allocations in SAP ERP ... 500

11.1.1 ... Template Allocations in SAP ERP ... 501

11.2 ... New Tools for Performing Allocations in SAP Business - Objects PCM ... 510

11.2.1 ... Mapping the Costing Model in SAP Business - Objects PCM with SAP ERP ... 512

11.2.2 ... Dimensions of the Costing Model ... 513

11.2.3 ... Assignments in the Costing Model ... 518

11.2.4 ... Loading Data to the Model ... 521

11.3 ... Customer Value Analysis Using SAP Business - Objects PCM ... 523

11.4 ... Summary ... 525

12 ... Period Close Using SAP Financial Closing Cockpit ... 527

12.1 ... New Options for Accelerating the Period Close ... 528

12.1.1 ... Orchestrating Your Closing Tasks ... 530

12.1.2 ... Executing Your Close Tasks ... 533

12.1.3 ... Automating Closing Transactions ... 536

12.1.4 ... Creating Program Variants for Your Close Tasks ... 539

12.1.5 ... Scheduling Tasks ... 541

12.1.6 ... Using Workflows In the Close ... 546

12.1.7 ... Handling Costing Runs in Your Close ... 551

12.1.8 ... Handling Organizational Units in the Closing Cockpit ... 552

12.1.9 ... Closing Cockpit and SAP Financial Closing Cockpit ... 557

12.2 ... Closing Tasks in Multiple Systems ... 559

12.3 ... Summary ... 564

12.4 ... Post-Script ... 564

... The Author ... 565

... Index ... 567