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Domain: Costing
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Responsibility area: Ensure Costing Allocations

Table of contents 

Table of Contents
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Scope

Image Added
ERP

PF2

WP2

Frequency

Image Added

References
  • FS10N
  • GR55
  • KE30
  • KE21N
  • F.01
Forms

FI COPA CONTROL.xlsm

Attachments


Previous OP <<

Page_title
>> Next OP



1. Objective and Scope

1.1. Objective of this Operation

The goal of this operation is to guarantee that, at the end of each month, the results in FI match with the ones in COPA.

1.2. Scope

This procedure is applied to all companies WW.

2. Definitions

See Finance - Glossary

3. Tasks description

3.1. I run the FI CO reconciliation report:

Go to transaction ZCO_FICO_RCON. Update Company code, fiscal year and posting period:

Click on Image Added and check its execution on transaction SM37.

Once it is done, click on Image Added

It will show FI and CO Net Results, their difference, and the possible sources:

Image Added

A detailed guide is in the link https://docs.google.com/presentation/d/1OxH84TKYZeXuh7KBikd_3XHkRDv-HtLL7ghPjShnJZU/edit#slide=id.p1.

How to eliminate the differences is indicated in 3.6 below.

If necessary, you may do the detailed analysis described in 3.2 to 3.5

3.2. I run the FI report "net result"

 

Expand
titleWP2


Go to transaction FS10N. Update the company code, the year, and check the result for all BS 98* accounts:

Image Added


Image Added


Expand
titlePF2


Go to transaction GR55, report Z4F1. Update the company code, the period, and check the result in heading L12000:

Image Added

3.3. I run the CO-PA report "net result"


Expand
titlePF2


Go to transaction KE30, report ZZZ-SOLV00. Update the company code, the period, and check the result in the Net Result:

Image Added

Expand
titleWP2


Go to transaction KE30, report ZZZ-SOLV00. Update the company code, the period, and check the result in the Net Result:

Image Added

3.4. I compare both results

Both amounts must match. If it is not year closing, and the total difference is below 3K local currency, nothing must be done during closing ((Implemented in July /2022 under controller validation reduction - Everyday Close Project)), but must be left to adjust during the rest of the month (before next closing). Else, the actions below must be done during closing.

3.5. I analyse the reason of the discrepancy and take the corresponding corrective action


Expand
titlePF2
Expand
titleCheck Cost Centers


Include Page
GR55 - Check that cost centers are balanced
GR55 - Check that cost centers are balanced

Expand
titleCheck Orders


Include Page
S_ALR_87013127 - Check that orders are settled
S_ALR_87013127 - Check that orders are settled

Expand
titleCheck WBS


Include Page
Z1K_SOLDE_WBS - Check that WBS are settled in PF2
Z1K_SOLDE_WBS - Check that WBS are settled in PF2

Expand
titleCheck COGS


Include Page
Z1K_RECONCILIATION - Reconciliation of Cost of Goods Sold
Z1K_RECONCILIATION - Reconciliation of Cost of Goods Sold


How to analyze and correct COGS differences: click here.

Expand
titleCheck Manual Postings in COPA


All postings done directly in COPA should be avoided. If possible, all necessary corrections must be done in the original CO object.

Anyway, several times it's necessary to make these postings, and therefore we need to guarantee that the total impact in PL of those postings is 0 (or that they were posted to correct already some discrepancy coming from FI - example: from Z1K_Reconciliation).

Go to KE24 and search for manual postings (record type = Z):

Image Added

All postings that we find should have a total amount 0:

  • In the same value field - transfer of characteristic (profit center, product, customer, etc)

  • In different value fields - transfer of value field (example below)

Image Added


Expand
titlePostings without CO Object

Several times we are facing manual postings done without any CO Object. This generates differences FI/COPA, so we need to identify them and correct them.

In order to do it, go to transaction SQ00.

Select Environment- Query Areas, and then select the Standard Area.

Then select the User Group "FI_3S_CTB" and run Query "Z_FI_DOC", selecting the company and the period:

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After executing you will have all items posted in the respective company without any CO Object (if any), and that most probably will be generating the FI/COPA differences.

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groupconfluence-users

Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore, new_zealand, emea_transversal, apac_transversal

Unit and Domain according to the List of labels to be used in the Finance Service Line space

E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
Labels to be used: ww, financial_accounting, central_fin_proc_compliance
  • E.g. 2: France Operation in Financial Accounting:
    • Labels to be used: country_accounting, france, financial_accounting
      (for country operations, the Domain is always country_accounting)

    • 3. Fill in all fields as described above

    4. Name the title of each section using OPD methodology naming convention - Infinitive verb without the “to”, mainly action verb...something) - " I do something..."

    5. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow 

    Panel
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    Domain: Costing
    Panel
    bgColor#F7F7F7
    borderWidth1
    borderStylenone

    Responsibility area: Ensure Costing Allocations

    Table of contents 

    Table of Contents
    maxLevel2

    Panel
    borderStylenone
    Scope
    Image Removed
    ERP

    Image RemovedImage Removed

    Frequency

    Image Removed

    References

    FS10N; GR55; KE30; KE21N; F.01; GR55

    Forms

    FI COPA CONTROL.xlsm

    Attachments

    Previous OP <<

    Page_title
    >> Next OP

    1. Objective and Scope

    1.1. Objective of this Operation

    The goal of this operation is to guarantee that, at the end of each month, the results in FI match with the ones in COPA.

    1.2. Scope

    This procedure is applied to all companies WW.

    2. Definitions

    See Finance Glossary:

    3. Tasks description

    3.1. I run the FI report "net result"

    Expand
    titleWP1

    Go to transaction FS10N. Update the company code, the year, and check the result for all BS 98* accounts:

    Image Removed

    Image Removed

    Expand
    titlePF1

    Go to transaction GR55, report Z4F1. Update the company code, the period, and check the result in heading L12000:

    Image Removed

    3.2. I run the CO-PA report "net result"

    Expand
    titlePF1

    Go to transaction KE30, report ZZZ-SOLV00. Update the company code, the period, and check the result in the Net Result:

    Image Removed

    Expand
    titleWP1

    Go to transaction KE30, report ZZZ-SOLV00. Update the company code, the period, and check the result in the Net Result:

    Image Removed

    3.3. I compare both results

    Both amounts must match.

    3.4. I analyse the reason of the discrepancy and take the corresponding corrective action

    Expand
    titlePF1

    How to analyse and correct COGS differences: click here.

    Expand
    titleCheck Cost Centers
    Include Page
    GR55 - Check that cost centers are balancedGR55 - Check that cost centers are balanced
    Expand
    titleCheck Orders
    Include Page
    S_ALR_87013127 - Check that orders are settledS_ALR_87013127 - Check that orders are settled
    Expand
    titleCheck WBS
    Include Page
    Z1K_SOLDE_WBS - Check that WBS are settled in PF1Z1K_SOLDE_WBS - Check that WBS are settled in PF1
    Expand
    titleCheck COGS
    Include Page
    Z1K_RECONCILIATION - Reconciliation of Cost of Goods SoldZ1K_RECONCILIATION - Reconciliation of Cost of Goods Sold
    Expand
    titleCheck Manual Postings in COPA
    All postings done directly in COPA should be avoided. If possible, all necessary corrections must be done in the original CO object.

    Anyway, several times it's necessary to make these postings, and therefore we need to guarantee that the total impact in PL of those postings is 0 (or that they were posted to correct already some discrepancy coming from FI - example: from Z1K_Reconciliation).

    Go to KE24 and search for manual postings (record type = Z):

    Image Removed

    All postings that we find should have a total amount 0:

    • In the same value field - transfer of characteristic (profit center, product, customer, etc)

    • In different value fields - transfer of value field (example below)

    Image Removed


    Expand
    titleAdditional Checks

    1) Check on CHEF_DUMMY

    • How to check:
      • KE24 with variant SPS_001 -> just need to add the relevant company codes
      • KE30 ZZZ-SOLV00 report -> check P&L lines with CHEF_DUMMY PrCtr
    • Goal: 
      • CHEF_DUMMY PrCtr needs to have balance 0 in all value fields end of the month. Take into account that the original posting and corrections may be done with different posting dates.
    • To reduce the number of future cases we should identify the reason for the CHEF_DUMMY PrCtr assignment. Most of the times it is due to missing PrCtr in the material master data (view General Plant Data / Storage 2 OR Costing1), so in this case it's necessary to address the topic to SU MAC (giving the material/plant/missing profit center) so that we can update the material master data.

    2) Check on Activity1

      • How to check:
        • KE24 with variant SPS_002 -> just need to add the relevant company codes
        • KE30 ZZZ-SOLV00 report -> check P&L lines with empty Activity1(mkt)
      • Goal:
        • All headings requiring Activity1 detail must have balance 0 at the end of the month. Take into account that the original posting and corrections may be done with different posting dates. These headings can be found here.
    • To reduce the number of future cases you should identify the reason for which Activity1 was not determined. Most of the times it is due to:
    • Posting in COPA together with a common CCtr because the posting involves a G/L account defined in the FI PA transfer structure (cost element group XCS-FIPA)
      • You should decide either if you want to keep the CCtr or the COPA posting but not both and reclassify the posting.
        • If CCtr -> another G/L account should be used
        • If CO-PA -> remove the CCtr and include the basic CO-PA axes: material and plant -> PrCtr should be derived from the material
      • Soon we'll set a substitution in the system to eliminate these cases.
    • Common PrCtr (Cxxx) assigned to the material. Actions:
      • Correct the material master data and PrCtr assignment  (view General Plant Data / Storage 2 OR Costing1)
      • Reclassify the posting:
        • Manually KE21N (cancel original CO-PA doc + create manual document taking the original one as reference and update the PrCtr)
    • this case it's necessary to address the topic to SU MAC (giving the material/plant/missing profit center) so that we can update the material master data.

    2) Check on Activity1

      • How to check:
        • KE24 with variant SPS_002 -> just need to add the relevant company codes
        • KE30 ZZZ-SOLV00 report -> check P&L lines with empty Activity1(mkt)
      • Goal:
        • All headings requiring Activity1 detail must have balance 0 at the end of the month. Take into account that the original posting and corrections may be done with different posting dates. These headings can be found here.
    • To reduce the number of future cases you should identify the reason for which Activity1 was not determined. Most of the times it is due to:
    • Posting in COPA together with a common CCtr because the posting involves a G/L account defined in the FI PA transfer structure (cost element group XCS-FIPA)
      • You should decide either if you want to keep the CCtr or the COPA posting but not both and reclassify the posting.
        • If CCtr -> another G/L account should be used
        • If CO-PA -> remove the CCtr and include the basic CO-PA axes: material and plant -> PrCtr should be derived from the material
      • Soon we'll set a substitution in the system to eliminate these cases.
    • Common PrCtr (Cxxx) assigned to the material. Actions:
      • Correct the material master data and PrCtr assignment  (view General Plant Data / Storage 2 OR Costing1)
      • Reclassify the posting:
        • Manually KE21N (cancel original CO-PA doc + create manual document taking the original one as reference and update the PrCtr)

    3) Check on D4X and E4X

    • Goal of these Value Fields:

      • Used only in Purchases of Materials with Moving Average Price. If the material is managed at Standard Price, the price difference will be rolled-up with Material Ledger.
      • Whenever an operation affects the purchase price of the material subsequently to its consumption, the price variance will be allocated proportionally to the existing stock and P&L (using these Values Fields).
    Expand
    titleWP2
    Expand
    titleWP1
    Expand
    titleCheck Cost Centers


    Include Page
    S_ALR_87013635 - Check balance of Cost Centers in 2 currencies
    S_ALR_87013635 - Check balance of Cost Centers in 2 currencies

    Expand
    titleCheck Orders

    All Orders in KOC4 must be balanced

    Include Page
    KOC4 - Check the process orders variance
    KOC4 - Check the process orders variance

    Expand
    titleCheck WBS

    Include Page
    CJI3 - Check that WBS are settled in WP1WP2
    CJI3 - Check that WBS are settled in WP1WP2

    Expand
    titleCheck COGS

    Include Page
    ZWFA15P - Reconciliation of Cost of Goods Sold
    ZWFA15P - Reconciliation of Cost of Goods Sold

    How to analyse analyze and correct COGS differences:  click here.

    Expand
    titleCheck Manual Postings in COPA

    All postings done directly in COPA should be avoided. If possible, all necessary corrections must be done in the original CO object.

    Anyway, several times it's necessary to make these postings, and therefore we need to guarantee that the total impact in PL of those postings is 0 (or that they were posted to correct already some discrepancy coming from FI - example: from ZWFA15P).

    Go to KE24 and search for manual postings (record type = Z):

    All postings that we find should have a total amount 0:

    • In the same value field - transfer of characteristic (profit center, product, customer, etc)

    • In different value fields - transfer of value field (example below)

    Expand
    titlePostings without CO Object

    Several times we are facing manual postings done without any CO Object. This generates differences FI/COPA, so we need to identify them and correct them.

    In order to do it, go to transaction SQ00.

    Select Environment- Query Areas, and then select the Standard Area.

    Then select the Costing Group and run Query "Z_FI_DOC", selecting the company and the period:

    After executing you will have all items posted in the respective company without any CO Object (if any), and that most probably will be generating the FI/COPA differences.

    Image Added


    3.

    5

    6.

     

    I perform a direct CO-PA posting in PL (KE30), in case of impossibility to correct automatically the FI/COPA discrepancy

     

    Expand
    titleSpecfic Specific for WP1WP2

    Important: Please note that the following amounts must be added to the result of the COPA report KE30 as they concern manual corrections:

    • Manual Postings in account 98350050 with cost center XXXX-9200 (XXXX stands for company code);
    • Manual Postings in COPA derivation accounts 98154199, 98258199 and 98254199;
    • MR11 postings in account 98150363 (documents beginning with  48*).

    Manual Corrections via FI (Standard Method) 


    Some accounts are created to be used in manual accounting in COPA. These accounts are assigned in the field status group “Z033 - Purchase & Change in stock acc. COPA” that is, the profit segment fields need to be filled/used: customer, product, distr. channel, payer, ship-to-party and payer country. These accounts are created in CO with cost element category 1 and are customized in the automatic transfer of structure in COPA for direct posting  in FI:

    Cost Element

    Cost Element Name

    COPA Structure

    COPA Structure Name

    98100199

    NS COPA REGUL

    VVB10

    Net Sales Corr.

    98120020

    VAR. SELLING EXPENSES FREIGHT COST ON SALES COPA

    VVC20

    Freight (Prov)

    98120120

    VARIABLE SELLING EXPENSES -COMMISSIONS ASCE. CC

    VVC10

    Sales Commission

    98120210

    VARIABLE SELLING EXP - INSURANCES ON SALES COPA

    VVC20

    Freight (Prov)

    98150364

    VC - DIRECT TRADE WITH THIRD PARTIES COPA

    VVD00

    VC Variable Cost

    98154199

    CP ADJUSTEMENTS - COPA

    VVD45

    VB cc variances

    98254199

    CNP ADJUSTEMENTS - COPA

    VVE45

    FC cc variances

    98258199

    CNP DEPRECIATION - COPA

    VVF45

    Dep cc variances

    98279199

    CNP DIVERS ADJUSTEMENTS - COPA

    VVE65

    FC others

    98333199

    FAC ADJUSTEMENTS - COPA

    VVI25

    G&A adm expenses

    98361199

    R&D ADJUSTEMENTS - COPA

    VVJ01

    R&D gross cost

    Posting Rules:

    • Manual documents with document type AD
    • Reversed on the following period if the flow is not complete
    • Items of the document: enter the most elements (plant, material, sales order) as possible allowed by the account to have the most accurate allocation of these corrections when analyzed. Check file Possible_Variances.xlsx tab “Example COPA Info Search” to see an example on how to retrieve the COPA data to be used in the posting.
    • Posting on “direct COPA” P&L accounts (more often cost valuation differences):If dedicated to a specific flow, report the elements of sales flow (material, plant, customer, sales domain) in the PA object; If more generic, some generic values (material, customer) may be used but the sales domain (sales organization, distribution channel, division) should be carefully chosen in order to allocate this cost to the right BU.

     

     

    These generic values allow the corrections to be taken in account in Premier Pilotage.

    Generally, division XH “non allocated”, 999930 for non EU customer or 999931 for EU customer, 77269 for generic material

    Types of FI-COPA Adjustments:

    Accounting stock corrections – Temporary Corrections Reversed in the following month.

    Deliveries not billed:

    1. Some very specific cases may not be treated by transaction ZWFAT135 → Need to post a manual adjustment.
    2. Sales invoices posted on the closing period after ZWFAT135 process.
    Stock variation adjustment account: 98350050 “FINISHED PRODUCT STOCK VARIATION-COST OF SALES ADJ” +  Cost center CCCC-9200 (statistical cost center for cost of goods sold)
    Stock adjustment account: 37000109 “FINISHED PRODUCTS-ADJUSTMENT”
    Debit / credit position depending on the correction

    Correction of COPA cost of sales – Permanent Corrections not Reversed in the following month.

    Posting using a FI document:

    • C.O.G.S. adjustment P&L account 98154190 “CP Adjustment CC” + Cost center CCCC-9200 (statistical cost center for cost of sales)
    • C.O.G.S. adjustment P&L account 98154199 “CP Adjustment – COPA” with direct posting in COPA “D45 VC CC variance”
     Credit/Debit depends on the type of correction (COPA increase or decrease)
     COPA segment parameters should be entered following those of the original flow

     

    Posting Example (IECRA Transfer):

    The customer code has been set as mandatory to guarantee the consistency of the analyses made in Premier Pilotage (BOXI). To allow generic postings, the following was defined for the sake of consistency and to avoid discrepancies between RCS PPE and Magnitude: 

    • “Dummy” customer codes : 999930 ( outside EU) and 999931 ( within EU ).
    • Generic “dummy material code” = 77269
      • division XH (unallocated )
      • Combined with an “unallocated” Distribution Channel which is linked to one IECRA (see the list in file RCS unallocated Distribution Channels.xlsx)   
      • corresponding commercial product 90032925

      

     


    Important:

    There are value fields in COPA that must not be used in cycles, because they are reserved for automatic accounts of logistical flows (see table on the right).

    VVA01

    Qty invoice

    VVA02

    Qty as is

    VVA03

    Qty in %

    VVA04

    Qty unit base

    VVB00

    B00 Net Sales

    VVB20

    B20 Add Net Sales Internal

    VVB30

    B30 Sales Industrial Invoice

    VVB41

    B41 Sales Adm&Com SD

    VVB50

    B50 Sales R&D Invoice

    VVB55

    B55 Sales Management Fees

    VVC00

    C00 Rebates

    VVC05

    C05 Cash Discount Customer SD

    VVC30

    C30 Foreign Import

    VVD00

    D00 VC Variable Cost

    VVD01

    D01 Variable Cost 1

    VVC40

    C40 Tax/Sale SD Cond

    VVD05

    D05 VC Process Order Variance

    VVD47

    D47 CP Ec/T030

    VVD52

    D52 CP Rev. CCR T030

    VVD55

    D55 VC Free 1

    VVD90

    D90 CP Integrated

    VVE00

    E00 FC Fixed Costs

    VVE01

    E01 FC Fixed Costs 1

    VVE05

    E05 FC Process Order Variance

    VVE47

    E47 CNP Ec/T030

    VVD52

    D52 CNP Rev. CCR T030

    VVD90

    D90 CNP Integrated

    VVF00

    F00 DEP Depreciation

    VVF05

    F05 DEP Process Order Variance

    VVF90

    F90 AMO Integrated

    VVG25

    G25 Bon&m/stock T030

    Expand
    titlePF1 PF2 + WP1WP2

    Include Page
    KE21N - Manual Posting in COPA
    KE21N - Manual Posting in COPA

    3.

    6

    7.

     I

    I properly check the result of the posting

    After correcting all differences, re-check the results in FI and in COPA to guarantee that the postings were correctly made, and that the difference doesn't exist anymore.

    Also it's necessary to remark that, after the closure, all differences not corrected properly must be analyzed and corrected in the origin:

    • New materials should be costed before being used (delivery, production, billing)
    • New orders or WBS elements should have a settlement rule
    • New cost centers should be included in the assessment cycles
    • Blocked invoices in VFX3 should be processed everyday
    • Avoid returns with stock movements in different periods of the corresponding credit memos. 


    For WP1 it WP2 it might be useful to use the file below to see in detail the existing differences:

    FI COPA CONTROL.xlsm

    End of document.

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