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Domain: Costing

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Responsibility area: Ensure Costing Allocations

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

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group	confluence-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

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Domain: Costing

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bgColor	#F7F7F7
borderWidth	1
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Responsibility area: Ensure Costing Allocations

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.

3.2. I run the FI report "net result"

Expand

title	WP1WP2

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

Expand

title	PF1PF2

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

3.

2

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

Expand

title	PF2

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

Image Added

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

Image Removed

Expand

title	WP2PF1

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

Image Removed

Expand

title	WP1

3.3. I compare both results

Both amounts must match.

3.4.

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

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title	PF1PF2

Expand

title	Check Cost Centers

Include Page

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

Expand

title	Check Orders

Include Page

	S_ALR_87013127 - Check that orders are settled
	S_ALR_87013127 - Check that orders are settled

Expand

title	Check WBS

Include Page

	Z1K_SOLDE_WBS - Check that WBS are settled in PF1PF2
	Z1K_SOLDE_WBS - Check that WBS are settled in PF1PF2

Expand

title	Check COGS

Include Page

	Z1K_RECONCILIATION - Reconciliation of Cost of Goods Sold
	Z1K_RECONCILIATION - Reconciliation of Cost of Goods Sold

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

Expand

title	Check 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):

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

title	Postings 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:

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.

Expand

title	Additional 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)

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).If the material is managed at Standard Price, the price difference will be rolled-up with Material Ledger(using these Values Fields).

Expand

title	WP1WP2

Expand

title	Check 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

title	Check Orders

All Orders in KOC4 must be balanced

Include Page

	KOC4 - Check the process orders variance
	KOC4 - Check the process orders variance

Expand

title	Check WBS

Include Page

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

Expand

title	Check 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

title	Check 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

title	Postings 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.

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

title	Specfic 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: Some very specific cases may not be treated by transaction ZWFAT135 → Need to post a manual adjustment. 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

title	PF1 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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Key

Table of contents

Scope

Image Added

ERP

Frequency

References

Forms

Attachments

1. Objective and Scope

1.1. Objective of this Operation

1.2. Scope

2. Definitions

3. Tasks description

3.1. I run the FI CO reconciliation report:

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

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

Table of contents

Scope

Image Removed

ERP

Frequency

References

Forms

Attachments

1. Objective and Scope

1.1. Objective of this Operation

1.2. Scope

2. Definitions

3. Tasks description

3.2.

I run the FI report "net result"

3.

3.

I run the CO-PA report "net result"

3.3. I compare both results

3.4. I compare both results

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

3.

6.

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

3.

7.

I properly check the result of the posting