Below are the definitions for the FA (Financial Accounting) Key Performance Indicators from the BW "RCS FA KPI" workbook.

Manual adjustments in CO-PA

Definition

Number of manual adjustments directly posted to CO-PA.

CO-PA is the RCS module that is used to produce the P&L (CRA) by product / market / customer, … . It is interfaced with Magnitude and Premier Pilotage Economics datawarehouse.

Good practice

In the normal RCS process, CO/PA documents should be posted automatically, either through direct transfers from other SAP modules such as SD (revenue, sales deductions, transport costs, ...) or CO-PC (semi-standard Cost of Goods sold, production variances, ...) or through assessment cycles (variances on cost centers, projects, ...).

As CO-PA must be reconciled with Magnitude, some direct manual adjustments (reclassification, corrections, ...) must be posted before interfacing to Magnitude. A limited number of postings are made necessary by technical issues or very specific processes, but most part are due to erroneous or missing allocations 1ing from misleading upstream processes or bad quality of some master data.

In that extend, a limited number of manual adjustments is an indicator of the quality of data and of upstream processes.

Target

"Posting right first" and avoiding non significant adjustments represents a key contributor to the reduction of month-end closing times required by the D4 project.

Comparison between entities

Simplification and standardization of closing processes through D4 project should lead to a limited number of manual postings in all BUs

Calculation

Manual adjustments are corresponding to the number of documents of Z type posted to CO-PA.

As some automated postings such as the inventory revaluation reverse are using the same Z document type, we excluded documents having the "Valuation class" field populated. This assumption may lead to exclusion of some rare pure manual adjustments. We are investigating to implement a dedicated document type for automatic postings so that we could technically isolate pure manual adjustments.

Analysis axes

Business Unit / Plant code

Automatic service invoicing

Definition

Among the total number of Service invoices issued by each Rodia Company during the month, this indicator shows the respective percentage of manual invoices and invoices produced through the automated RCS process

Good practice

The best practice consists in using the automated process to issue and post Service invoices.

The RCS solution consists in capturing the costs of services to be (re-)invoiced on WBS elements in the PS module. At month-end, an automatic process based on pricing conditions entered in SD contracts per customers generates and posts the related service invoices. In addition, for inter-company services, a new process also posts automatically the invoice in the receiving company.

Through productivity and quality improvements, this process represents a key contributor to the reduction of month-end closing times required by the D4 project.

Target

A small number of invoices related to non recurrent service flows may still be produced manually, but the target should be close to 100% of automated invoices

Comparison between entities

No comparison as long as the process has not been fully rolled-out.

Calculation

Ratio calculated on the total number of document types (Manual h1.DR and DG / Automatic RV ) used for postings on P&L accounts related to Revenues of Services during a said month

Analysis axes

Company code level.

Comment

This process is not yet rolled-out on a WW basis, so as long as accountants have not been trained, manual invoices will represent 100% of the total. A significant progress should be noticed at mont-end following the training.

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