Intro to CO-PA Philosophy in Budgeting

7/30/2019 Intro to CO-PA Philosophy in Budgeting

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SAP AG 2000 filename (author) / 1

Overview

Introduction to CO-PAs Philosophy in Budgeting

Flexible Use of Planning Levels in Profitability Planning

The Budgeting Process

Overview and Framework in Planning

Maintain Plan data Planning Process and Planning Methods

Plan-/Actual Comparisions and Forcasting

Reporting

New User-Interface in Reporting

Integration with BW

Summary


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Customizing

Sales Quantity

Sales Revenue

- Rebates

Net revenue

- Direct costs

- Var. prod. costs

Contrib. margin I

- Fixed prod. costs

Contrib. margin II

- Variances

- Overhead costs

Operating profit

Act. Plan

CO-PAs Integration of Actuals and Budget Dollars

DocumentsValue-flows

SDTransfer ofBillings

FI

CO-PC

Direct

Valuationwith cost-estimate

CO-PC

FI

CO-OM

Transfer ofOverhead-

costs

Planning


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Communicating the Budgets

Bottom-up Planning

Goals SALES Budget Sales quantity

Products

PRODUCTION Budget

Material-Budget/

Procurement

Standard Costs

Selling and Adminis-trative Expenses

Profit PLAN Products Customer group Distr.Channels...

DirectLabor

Budget

Production-Overheads,

Process Costs


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The CO-PA Planning Functions: Overview

Customizableplanning layout

Integrated Excel

Manual Planning

Revaluations

Valuations

Period dist.

Forecast

Planning Aids

Event planning

Monitoring of

sales deals

Sales and Promotions Budget

Automatic Planning Functions

Transfer of cost center costs/process costs

Settlement of order plan dataand project plan data

Transfer of quantities to/from SOP

Transfer of plan data to/from LIS

Transfer of plan data to PCA

Integrated Planning

Copying/deleting/adaptingplans

Top-down distribution

Planningin

CO-PA


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Simulative and Iterative Improvements of Budgets

Annual Budget/Objectives

VolumesGross Sales

Trade ExpensesCustomer DiscountsPromotionsBonus AgreementsNet SalesCost of Goods SoldMargin

AdvertisingGeneral Administation

Manual Entry orCalculation in Excel

Valuated withSD Pricing

Apply Average Ratioof Last Year

Percentage onGross Sales

Calculated as aResult of Goal-seekAlgorithm

Average Ratio onBrand Level

Calculated using aMacro in Excel


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Continuous Plan/Actual Comparision

Annual Budget/Objectives

Bottom-up/Planning

Year 2000

Agreed Budget

Forcast I

Forcast II

Forcast III

Actuals


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Overview





Maintain Plan data Planning Process and Planning Methods


Reporting


Integration with BW

Summary



Basic Concepts of CO-PA

Sales Region NorthProduct Prod1Product Group ElectronicsCustomer Cust1

Customer Grp WholesaleState IllinoisSales Rep Miller

Characteristics

Revenues 800Discounts 100COGS 650

Value Fields

RevenueDiscounts

COGS

Profitability

segment

Values

REGION

PROD. GROUP



Planning on Different Levels

Cost of Goods Sold

DistributionExpenses

MarketingExpenses

Sales VolumesRevenues



PZ

Input

Cust.

Product

Sls rep.

District

State

Cust.grp

Prod.grp

Sls reg.

Strat.BU

R1

P1

C1

Output

Cust.

Product

Sls rep.

District

StateCust.grp

Prod.grp

Sls reg.

Strat.BU

SR

R1

P1

C1

D1

S1

G1

PZ

SB

Product

Customer group

State

Product group

District

Sales rep. Sales region

Strategicbusiness unit

Customer

Characteristics Derivation Concept

D1 S1

G1

SB

SR

DERIVATION

SDCO-PA

R1

P1

C1



Output

Quantity

Customer Disc.

Revenue 10000

1000

10Quantity 10

Var. prod. costs 5,200Fixed prod. costs 1,800

Special handling 200

Revenue 10,000

Sales commision 500

Valuation Concept

Input

Billing Document

Customer 1000Product P-100Quantity 10Revenue 10,000Discounts 1,000

Valuation

SD CO-PA

Special handling

Sales commision

Fixed prod. costs 1800

500

200

5200Var. prod. costs 5200



Overview





Planning Process and Planning Methods Plan-/Actual Comparisions and Forcasting

Reporting


Integration with BW

Summary



Overview of Planning Screen

Planning method

Parameter set

Parameter set

Definition Screen

Planning level

Plan package

Plan package

Plan package



Elements in Planning

PlanPackage

Planning Level

Planning Method

Characteristics

Sales Organization: South

DivisionCustomer GroupProduct

Characteristic Values

Division: PumpsCustomer Group: IndustrialProduct: *Period/Year: 01.00 - 12.00Record Type: F

Change Plan Data

Planning LayoutCurrencyDistribution KeyNumber Format

Parameter Set



Defining a Planning Layout (1)

Lead columns Value columns Attributes

Header - General data selection

Planning Layout



Defining a Planning Layout (2)

Sales OrganizationPeriod From ToRecord TypeVersion

Product Quantity Revenue CoGSCust. grp

ParameterSet

PlanningLevel

PlanPackage



New Planning Framework


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Integration of Microsoft Excel in Profit Planning

Customizing

Plan layout inR/3

10.000

Exceltemplate

10.000


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Data Entry with Excel Integration

Decentral data entryin Excel andupload to R/3

Data entry in Excelembedded in R/3


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CO-PA Planning Internet Scenario


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Overview





Planning Process and Planning Methods


Reporting


Integration with BW

Summary


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Create Manual Plan Data using variousplanning aids

Copy data (plan and actual) to plans

Create forecasts (projections based onmodels)

Perform top-down distribution of planningdata

Change plan data (valuate, revaluate,redistribute)

Delete planning data

Planning Methods: Topic Objectives

At the conclusion of this topic, you will be able to:


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Typical Phases in Sales Planning

Simulation

Targetsattained?

Planningtargetvalues

1

Break-downof targetvalues

2

Analyticalbottom-upplanning

3

Integratedtransfer ofplan data

Transfer toproductionplanning

4

5


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Planning Target Values

Determiningaverage prices

and costs

Planning andsimulatingtarget values

Methods in R/3

Simplification of simulationby using ratios

Manual Planning

Simulating data using thegoal seek function

Manual revisionof plan values

Planningtarget

values 1


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Planning with Ratios

Current Plan

Sales quantityPriceRevenue...

RatioPrice

R1 /Q1Valuation

A ratio is a quotient of two value fields

calculated dynamicallybased on reference data

Actual Data

Quantity (Q1)Revenue (R1)

Pl i i h R i S h


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Planning with a Ratio Scheme

Record Type F Year 2000Reference Version: Actual Data

CustomerGroup

Price(Ratio M1)

010203

10.0015.0012.00

Record Type F Year 2001Version 1, Plan Version

CustomerGroup

Revenue(Qty *M1)

Sales Qty.(Plan)

010203

25,00010,00010,000

250,000150,000120,000

Ratio M1 =

Ratio Scheme A:

RevenueQuantity


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Reaching Objectives with Goal Seek Approach

Product Quantity Price Revenue

P-100 20 5,000 100,000

120,000P-100 20

Source: Price

Target: Revenue

Value: 120,000

6,000

B O


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Breakdown of Objectives

Determine

reference baseand distr. method

Methods

in R/3

Top-down distributionin manual planning

Methods fortop-down distribution

Distribute targetvalues to productsand sales reps

Break-downof target

values 2

T D Di ib i i Pl i


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Plan values

Distributed values

Reference Base

Values to bedistributed

RESULT

Top-Down Distribution in Planning

Methods:Nonassigned valuesEntire value

M th d Di t ib ti 'N i d V l '


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Method: Distributing 'Nonassigned Values'

Prod. GroupPumpsNonassignedCredit

Revenues20001000

-1000

Plan Values

ProductP1P2

Prod. GroupPumpsPumps

Revenues

1600400

Result: Distributed Values

Quantity in '99100200

Reference Data

ProductP1P2

Prod. GroupPumpsPumps

Value to bedistributed

Result+ 1/3*1000+ 2/3*1000

M th d Di t ib ti E ti V l


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Method: Distributing Entire Values

Prod. groupPumpsNonassignedTotalCredit

Revenues200010003000

-3000

Plan Values

ProductP1P2

Prod. groupPumpsPumps

Revenues

Result: Distributed Values

Quantity in '99100200

Reference Data

ProductP1P2

Prod. groupPumpsPumps

Value to bedistributed

Result1/3*3000 = 10002/3*3000 = 2000

B tt U Pl i


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Bottom-Up Planning

Copy and summarizeactual data to plan,

revaluate if desired

Methods

in R/3

Copy, Forecast and

Revaluation inautomatic planning

Excel Integrationwith CO-PA planning

Enter plan datain Excel, integratedwith the R/3 System

Valuate planningwith operative pricesand cost of goodsmanufactured

Analyticalbottom-upplanning

3

B tt U Pl i E l


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Bottom-Up Planning Example

Plan for Salesperson: Emerson

Sales org. 1000Product Group Media

Quantity: 400

Sales organization 1000Product S-110Product Group MediaCustomer Meyer AG

Quantity 180

Sales organization 1000Salesperson Grant

Product Group MediaCustomer Miller AG

Quantity 100

Sales organization 1000Salesperson Meyer

ediaInc.

120

Sales organization 1000Salesperson Black

ediaCo.

180

Sales Organization 1000

Product Group Media

Quantity 400

I t ti f Mi ft E l i P fit Pl i


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Integration of Microsoft Excel in Profit Planning

Customizing

Plan layout inR/3

10.000

Exceltemplate

10.000

D t E t ith E l I t ti


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Data Entry with Excel Integration

Decentral data entryin Excel andupload to R/3

Data entry in Excelembedded in R/3

Automatic Planning


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Automatic Planning

Plan 2000

Version 2Division A

Actual 1999

Division ADivision B

Plan 2000

Version 1Division A

Plan data Actual DataReference

Destination

Top-downDistribution

Forecast

Copy

Copy Plan (1)


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Copy Plan (1)

CustomerGroup

Revenue Sales Qty.

010203

10,00015,00020,000

100,000225,000240,000

SourceReference

01

0203

10,000

15,00020,000

100,000

225,000240,000

SalesQuantity

CustomerGroup

Revenue

Actual data 1999Record Type F

Destination

010203

10,00015,00020,000

100,000225,000240,000

SalesQuantity

CustomerGroup

Revenue

Plan data 2000 Version 1Rec. Type F

Settings

Initial SettingsProcessing InstructionsSelection CriteriaValue Fields

Copy Plan (2)


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Customer GroupRetain

Selection Criteria Processing Instructions

CustomerCycle OneBikeworld

Cust. GroupMotor 100Motor 200

Customer

#

Cust. Group

Motor 300

Reference Data

CustomerMiller

Cust. GroupMotor 100

Customer*

Customer GroupMotor

Customer

*

Customer Group

Motor

Customer Group*

CustomerCycle One

Customer Group

Retain

Customer GroupRetain

CustomerRetain

Customer

SUMM

CustomerMiller

Summarize

Copy to

Retain

Copy Plan (2)

Customer Customer Group RevenueCycle OneBikeworld

MotorMotor

100200

Copy with Revaluation


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Copy with Revaluation

Customer

Cycle OneBikeworld

Customer Group

MotorMotor

Revenue

100200

Customer

Cycle OneBikeworld

Customer Group

Non-MotorNon-Motor

Revenue

110220

Reference

Destination

Revaluation Key

Value field: RevenuePercentage: 10%

Forecasting


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Forecasting

Posted Values

10090

110150

100

Forecast profile: Moving Average

Forecast strategy: Moving Average

Historic periods: 5

Periods/season:

Source Data

Actual RevenuePeriod

12/0011/0010/0009/00

08/00

Forecast DataPlan Revenue

Period01/01 110

Forecast results

Integrated Transfers of Plan Data


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Transfer plannedcost center costs orprocess costs

Methods

in R/3

Allocations fortransferring overhead costs

(see actual data)

Planned settlementof orders

Integration withLIS and SOP

Settle orderand project plans

Integrated Transfers of Plan Data

Transfer planto/from LIS orSOP

Integratedtransfer of

plan data 4

Integration of Planning


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Integration of Planning

EC-PCA

Internal orders

Cost centerCO-OM

Projects

PS ABC BusinessProcess

CO-PA

Integration LIS - CO-PA


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Integration LIS CO PA

CO-PA

SOP

LIS

Quantities

CO Plan Integration


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CO Plan Integration

Cost CenterAdmininstration

400000

430000

630000

CO-PA

Costing based: 630000 + 50.000,-

Account based: Admin. + 50.000,-

20.000,--

30.000,--

50.000,--

- 50.000,--

Plan Cycle

Process

Assessment

Summary


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Summary

Sales and profit planning in CO-PA is an integral part of corporateplanning.

The definition of a version is valid for all CO applications, but thereare specific settings for each operating concern.

Customized planning layouts and profiles can be created for use inmanual planning.

Automatic planning is for mass processing of planning data (copy,change, delete, forecast, and top-down distribution).

CO-PA plan data can be transferred to and from Sales and Operations

Planning and the Logistics Information System.

Overview


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Overview







Reporting


Integration with BW

Summary

Rolling Forcast / Latest Estimate


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Rolling Forcast / Latest Estimate

Latest

Estimate

Actual Data 1-8.99 Plan 1-8.99 Variance

Volumes 2000 2200 200

Gross Sales 10000 15000 5000

Trade Expenses 600 800 200

Customer Discounts 120 160 40

Promotions 90 160 70Bonus Agreements 150 200 50

Net Sales 9040 10000 960

Cost of Goods Sold 4500 5000 500

Margin 4540 5000 460

Advertising 2300 2800 500

General Administation 1000 2000 1000Profit 1240 200 -1040

Overview


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Overview







Reporting


Integration with BW

Summary

Reporting - Introduction


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Reporting Introduction

Sales Report: Divisions

Period 1 - 7, 1999

Customer GroupSales OrganizationMaterial Group

Characteristics

Division

Division Cost of SalesRevenue CM1%

01 Cars 1,000,000 800,000 20%02 Cycles 250,000 150,000 16%03 Parts 100,000 70,000 30%

Revenue - Divisions

Cars Cycles Parts

1000000

500000

250000

0

Revenue 1,000,000Cost of Sales 800,000

CM1 200,000CM1 % 20%Sales & Admin 50,000

Reporting


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p g

Extraction of Data from CO-PA to SAP BW


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Extraction of Data from CO PA to SAP BW

UpdateRules

InfoCubes

Extract Source Structure (CO-PA Characteristics / Value fields)

Transfer Structure (BW InfoObjects)

SAP BW Server

OLTP R/3

CO-PA

CO-PAMetadata

Mapping

Flow ofTransaction

Data