Preface

17

A Practical Guide to Controlling with SAP

20

Introduction

20

Reporting

20

Master Data Owned by Controlling

21

Master Data for Which Controlling Is a Stakeholder

21

Planning and Budgeting

21

Actual Postings

22

Period Close

22

Reporting in SAP BW and SAP BusinessObjects

23

Master Data in a Multisystem/Shared Service Environment

23

Planning Using SAP BW Technologies

23

Allocations Using SAP Profitability and Cost Management

24

Period Close Using the SAP Financial Closing Cockpit

24

Controlling with New Technologies

24

SAP S/4HANA and Controlling

25

Acknowledgments

25

1 Introduction

27

1.1 Basic Controlling Functions

31

1.1.1 Goals of Controlling

32

1.1.2 Cost Accounting in the United States

34

1.1.3 Standard Costs and Actual Costs

35

1.1.4 Investment and Project Controlling

35

1.1.5 Lean Accounting

36

1.2 Essential Record-Keeping Functions

37

1.2.1 Record Keeping by Cost Center

39

1.2.2 Record-Keeping by Order

41

1.2.3 Record-Keeping by Project

43

1.3 Managing Close and Valuation Processes

43

1.3.1 Valuation of Goods Movements

44

1.3.2 Work in Process

44

1.3.3 Scrap

45

1.3.4 Work in Process for Projects

45

1.4 Preparing Budgets and Planning

46

1.4.1 Driver-Based Cost Planning

46

1.4.2 Driver-Based Cost Planning among Cost Centers

48

1.4.3 Budgeting

49

1.5 Process Analysis and Internal Controls

50

1.5.1 Master Data Controls

51

1.5.2 Workflow

51

1.5.3 Process Controls

51

1.6 Summary

52

2 Reporting

53

2.1 Cost Center Line Items

54

2.1.1 Classic Cost Center Line Item Report

54

2.1.2 Simplified Cost Center Line Item Report

63

2.1.3 Totals Records for Cost Centers

65

2.2 Order Line Items

67

2.3 Product Costs: Itemization

71

2.4 Classic Reports for Product Cost Reporting

72

2.5 Product Costs: Cost Objects

76

2.5.1 Product Cost by Order

77

2.5.2 Product Cost by Period

80

2.5.3 Product Costs by Sales Order

82

2.6 Material Ledger/Actual Costing

84

2.7 Profitability Analysis Reports

88

2.8 Summary

95

3 Master Data Owned by Controlling

97

3.1 How to Set Up Cost Centers

98

3.1.1 Responsibility for a Cost Center

100

3.1.2 Embedding the Cost Center Design in SAP ERP

105

3.1.3 Ensuring that Cost Center Expenses Are Handled Correctly

106

3.1.4 Cost Center Hierarchies

109

3.1.5 Reporting of Cost Center Master Data

115

3.2 Internal Orders

118

3.2.1 Internal Orders and Cost Centers

122

3.2.2 Settlement Rules for Internal Orders

122

3.2.3 Statistical Internal Orders

124

3.2.4 Order Groups

125

3.2.5 Reporting Order Master Data

126

3.3 Statistical Key Figures

128

3.4 Activity Types

131

3.4.1 Direct and Indirect Activity Allocations

134

3.4.2 Settings for Activity Price Calculation

136

3.4.3 Activity Type Groups

137

3.4.4 Reporting Activity Type Master Data

137

3.5 Secondary Cost Elements

138

3.5.1 Cost Element Groups

141

3.5.2 Reporting on Cost Element Master Data

143

3.6 Product Cost Collectors

144

3.7 Cost Object Hierarchies

146

3.8 Maintenance Issues

148

3.8.1 Time-Dependent Fields

149

3.8.2 Creating Hierarchies for a Specific Time Frame

150

3.8.3 Status Management

153

3.9 Change Requests for a SOX-Compliant Master Data Process

153

3.10 Summary

156

4 Master Data for Which Controlling Is a Stakeholder

159

4.1 Material Masters

161

4.1.1 Basic View

162

4.1.2 Accounting View

164

4.1.3 Costing Views

167

4.1.4 MRP Views

170

4.1.5 Sales View

170

4.1.6 Batches

171

4.2 Customer Masters

172

4.3 Bills of Material

174

4.3.1 Quantity Definition

177

4.3.2 Coproducts and Byproducts

178

4.3.3 Recursive BOMs

181

4.3.4 Configurable BOMs

181

4.4 Routings

184

4.4.1 Types of Routing

185

4.4.2 Operation Values

187

4.4.3 Operation-Level Costing

189

4.5 Work Centers and Resources

190

4.6 Procurement Alternatives and Mixed Costing

192

4.6.1 Internal Processing

192

4.6.2 External Procurement

193

4.6.3 Plant-to-Plant Transfer

194

4.6.4 Subcontracting

194

4.6.5 Mixing Ratios

195

4.7 Projects

196

4.7.1 Work Breakdown Structure Elements

196

4.7.2 Networks and Network Activities

198

4.8 Investment Programs

199

4.9 Primary Cost Elements and Profit and Loss Accounts

202

4.9.1 Chart of Accounts

203

4.9.2 Controlling and the Financial Accounts

206

4.10 Setting Prices for Product Costing

209

4.10.1 Setting Standard Costs for Raw Materials

210

4.10.2 Balance Sheet Valuation

213

4.10.3 Calculating Actual Costs

214

4.10.4 Cross-Company Costing

214

4.11 Summary

216

5 Planning and Budgeting

217

5.1 Complete Sales Plan in a Manufacturing Environment

219

5.1.1 Sales and Operations Planning

221

5.1.2 Cost Center Planning

229

5.1.3 Calculating Standard Costs for Products to Be Manufactured

256

5.1.4 Profitability Planning

271

5.2 Planning and Budgeting for Investment Programs

273

5.2.1 Investment Program

273

5.2.2 Overall Plan

274

5.2.3 Cost Element Planning

276

5.2.4 Budgeting

279

5.2.5 Displaying and Changing a Budget

282

5.3 Summary

285

6 Actual Postings

287

6.1 Integrated Process Flows: Buy, Make, and Sell

287

6.1.1 Procure to Pay

288

6.1.2 Plan to Manufacture

298

6.1.3 Order to Cash

311

6.2 Distribution of Usage Variances

320

6.2.1 Capturing Physical Inventory Documents

321

6.2.2 Distribution of Usage Variances

322

6.2.3 Distribution of Activities

324

6.3 Integrated Process Flows: Other Logistics Scenarios

326

6.3.1 Product Cost by Order

326

6.3.2 Product Cost by Period

332

6.3.3 Product Cost by Sales Order

336

6.3.4 Project Controlling

341

6.3.5 Controlling for Maintenance and Service Orders

347

6.4 Corrections or Adjustment Postings

350

6.4.1 Reposting Line Items

351

6.4.2 Correcting an Activity Allocation

354

6.4.3 Reposting Values

355

6.5 Cross-Company Postings

357

6.6 Summary

362

7 Period Close

363

7.1 Allocations

364

7.1.1 Before the Start of the Period Close

366

7.1.2 Allocations between Cost Centers

368

7.1.3 Allocations to Profitability Analysis

384

7.1.4 Target Costs and Variances on Cost Centers

388

7.2 Calculations and Settlement

396

7.2.1 Overhead Calculation

399

7.2.2 Work in Process

401

7.2.3 Target Costs and Variances in Production

404

7.2.4 Settlement

410

7.2.5 Product Cost by Sales Order

412

7.3 Multilevel Actual Costing in the Material Ledger

414

7.3.1 Types of Costing Runs

415

7.3.2 Periodic Costing Run

416

7.3.3 Alternative Valuation Run

421

7.4 CO-PA Processes

428

7.4.1 Revaluation

428

7.4.2 Top-Down Distribution

429

7.5 Summary

433

8 Reporting in SAP BW and SAP BusinessObjects

435

8.1 Reporting on Large Data Volumes in SAP ERP

436

8.1.1 Using Extracts to Accelerate Cost Center and Internal Order Reports

436

8.1.2 Using Summarization Levels to Accelerate CO-PA Reports

441

8.1.3 Using Summarization in Product Cost Reports

442

8.1.4 Using Summarization Hierarchies for CO-PC Reporting

443

8.2 How to Decide Whether You Need SAP BW for Reporting

445

8.2.1 Performance Concerns

445

8.2.2 Multidimensionality

451

8.2.3 Navigation Attributes

455

8.2.4 Inclusion of Non-SAP Data

459

8.2.5 Building Queries

461

8.3 Cost Center Reporting in SAP BW

464

8.3.1 Reporting Using Virtual and Physical InfoProviders

465

8.3.2 Transient InfoProviders and Operational DataProviders

468

8.4 Reporting with SAP BusinessObjects Tools

471

8.4.1 SAP Analysis for Microsoft Office

471

8.4.2 SAP Crystal Reports for Controlling

474

8.4.3 SAP BusinessObjects Dashboards for Controlling

477

8.4.4 SAP BusinessObjects Explorer for CO-PA Reporting

478

8.5 Summary

480

9 Master Data in a Multisystem/Shared Service Environment

481

9.1 Change Requests in SAP ERP

484

9.2 New Solutions for Handling Master Data in a Multisystem Environment

490

9.2.1 Data Modeling in SAP Master Data Governance for Financials

491

9.2.2 Roles for SAP Master Data Governance

495

9.2.3 Editions in SAP Master Data Governance for Financials

497

9.3 Governance Requirements for Master Data

503

9.3.1 Creating a Change Request for a Single Object

503

9.3.2 Workflow Steps for a Change Request

508

9.4 Creating Change Requests in a Shared Service Center

509

9.5 Summary

512

10 Planning Using SAP BW Technologies

513

10.1 Planning Applications in SAP ERP

515

10.2 Planning Applications in SAP BW

519

10.2.1 Multidimensional Database Layer in SAP BW

521

10.2.2 Virtual InfoProviders in SAP ERP

524

10.2.3 Aggregation Levels and Planning Functions

526

10.2.4 Data Entry Screens

530

10.3 Summary

536

11 Allocations Using SAP Profitability and Cost Management

537

11.1 Template Allocations in SAP ERP

540

11.2 Allocations in SAP PCM

549

11.2.1 Mapping the Costing Model in SAP PCM with SAP ERP

551

11.2.2 Dimensions of the Costing Model

552

11.2.3 Assignments in the Costing Model

558

11.2.4 Loading Data into the Model

560

11.3 Customer Value Analysis Using SAP PCM

561

11.4 Summary

565

12 Period Close Using the SAP Financial Closing Cockpit

567

12.1 New Options for Accelerating the Period Close

568

12.1.1 Orchestrating Your Closing Tasks

570

12.1.2 Executing Your Close Tasks

574

12.1.3 Automating Closing Transactions

577

12.1.4 Creating Program Variants for Your Close Tasks

580

12.1.5 Scheduling Tasks

583

12.1.6 Using Workflows in the Close

587

12.1.7 Handling Costing Runs in Your Close

593

12.1.8 Handling Organizational Units in the SAP Financial Closing Cockpit

594

12.1.9 Closing Cockpit and SAP Financial Closing Cockpit

598

12.2 Closing Tasks in Multiple Systems

600

12.3 Transparency within the Close

604

12.4 Summary

607

13 Controlling with New Technologies

609

13.1 Controlling with SAP HANA

612

13.1.1 Profitability Analysis (CO-PA)

612

13.1.2 Product Cost Controlling (CO-PC)

619

13.1.3 Overhead Management (CO-OM)

626

13.1.4 Investment Management (IM)

630

13.1.5 SAP HANA Live

632

13.2 SAP Fiori Applications

636

13.2.1 Search Models and Fact Sheets

637

13.2.2 My Spend and My Unusual Items

641

13.2.3 Net Margin Results and Profit Analysis

645

13.3 Summary

651

14 SAP S/4HANA and Controlling

653

14.1 The Universal Journal

654

14.1.1 Merging Accounts and Cost Elements

658

14.1.2 Cost Centers, Orders and Projects

662

14.1.3 Profit Centers, Functional Areas, and Segments

664

14.1.4 Profitability Analysis (CO-PA)

665

14.2 The Material Ledger

673

14.2.1 Inventory Valuation in the Universal Journal

673

14.2.2 Compulsory Use of Material Ledger for Inventory Valuation

675

14.2.3 Using the Material Ledger for Transfer Prices and Group Valuation

677

14.2.4 Architectural Changes in Actual Costing

680

14.3 Profitability Analysis

681

14.3.1 Derivation of CO-PA Characteristics during Cost Assignment

682

14.3.2 Revenue Recognition for Professional Services

685

14.3.3 Cross-Company Resource-Related Billing for Professional Services

689

14.3.4 New Approaches in Cost Object Controlling

691

14.4 Reporting in SAP Fiori

693

14.4.1 Multidimensional Reporting

695

14.4.2 Accounts and Key Figures

696

14.4.3 Hierarchies

698

14.5 Planning

700

14.5.1 Simplified Planning Model for Financial Planning

700

14.5.2 Functional Expenses and Sales Costs

706

14.5.3 Commitments and Budgeting

711

14.6 Summary and Postscript

712