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SYMPA ACADEMY

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Structure of the training

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1- The first part explains the construction of the BFC P/L. Several concepts need to be presented such as Master Data, closing process and Product Costing. Master Data are the static concepts used to carry out properly the closing process. Closing subsection demonstrate the dynamic use of the master data. Product costing is a sub-product but it is an important section because a big amount of the Cost of Goods Sold (COGS) is built during product costing process.

2- The second part presents all the reports to be used to carry out performance analysis and how you can use those reports.

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Read me first

Introduction

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title	Understand BFC P&/L

SECTION 1 Construction of the P&L

methodology

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	SYMPA academy - Understand BFC P/L methodology
	SYMPA academy - Understand BFC P/L methodology

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title	How P&L is built	Where are the data coming to build BFC P/L

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	Where are the data coming from to build BFC P/L?
	Where are the data coming from to build BFC P/L?

Rules P&L - PF1

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SECTION 1 Construction of the P/L

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Rules P&L - PF1

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title	Master data

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title	Overview of the CO structure

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title	CO structure

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	CostFAQ:Rules - CO structure - PF2
	CostFAQ:Rules - CO structure - PF2

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title	Business structure

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	CostFAQ:Rules - Business structure
	CostFAQ:Rules - Business structure

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title	Product hierarchy

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	CostFAQ:Rules - PF1 - PIF
	CostFAQ:Rules - PF1 - PIF

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title	Plant

Logistics Organizational Unit representing the place where either materials are produced or goods and services provided.

Identification of production and non production plants.

Use in CO:

Organizational Cost Centers standard hierarchy
Profit Centers standard hierarchy
Cost Object Hierarchy (first 2 levels in the structure)
Materials: To identify the ones relevant for costing and to be updated during the Project (Accounting / Costing views).
Material Ledger activation (customizing).

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title	Country code

1 digit code identifying the country inside Solvay ERP.

Use in CO:

Reporting Profit Centers codification at PIF level (position before last)

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title	Establishment code

It is used in the codification of the Cost Centers (=first two digits) in PF1.

The establishment code is a combination of a legal company on a site

SM = cy 0001 SCH
XR = cy 0270 Solvay Quimica, Italian in Rosignano
SV = cy 0306 Solvay Portugal, Prod Quim.

The codes are part of the enterprise structure and managed by Core Tables

The establishment code can be displayed with PF1 PF2 - ZPRI Display table ETAB

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title	Structure axes

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	CostFAQ:Rules - PF2 - Activity 1
	CostFAQ:Rules - PF2 - Activity 1

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title	Cost element

Info

title	SAP t-code

KA03 - Display Cost Element

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title	Codification

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	CostFAQ:Rules - Cost Element codification - PF1element Codification
	CostFAQ:Rules - Cost Element codification - PF1element Codification

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title	Cost elements group

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title	SAP t-code

KAH3 - Display cost element group

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title	ZRCS-FC

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	CostFAQ:Rules - Cost element Group ZRCS-FC
	CostFAQ:Rules - Cost element Group ZRCS-FC

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title	XCS-ALL

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	CostFAQ:Rules - Cost element Group XCS-ALL
	CostFAQ:Rules - Cost element Group XCS-ALL

Cost Collector

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title	Cost Center

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title	A. Standard hierarchy & codification

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title	Standard hierarchy

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	CostFAQ:Rules - PF1 PF2 - Cost Center Standard hierarchy
	CostFAQ:Rules - PF1 PF2 - Cost Center Standard hierarchy

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title	Reporting Cost Centers - PF1

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	CostFAQ:Rules - PF1 PF2 - Cost Center Reporting codification - HISTORICAL INFORMATION ONLY !
	CostFAQ:Rules - PF1 PF2 - Cost Center Reporting codification - HISTORICAL INFORMATION ONLY !

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title	Organizational Cost Centers - PF1

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	CostFAQ:Rules - PF1 PF2 - Cost Center Organizational codification
	CostFAQ:Rules - PF1 PF2 - Cost Center Organizational codification

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title	B. ZCBS hierarchy

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	CostFAQ:Rules - Cost Center ZCBS hierarchy
	CostFAQ:Rules - Cost Center ZCBS hierarchy

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title	C. Validity date

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	CostFAQ:Rules - Cost Center Validity date
	CostFAQ:Rules - Cost Center Validity date

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title	D. Profit Center

The Result (Reporting) Profit Centers are the basis for Group reporting

All elements for BFC statement are extracted from the Profit centers (except NETV, QTV and TPT which are extracted from CO-Profitability Analysis -> CO-PA). To make this extraction work (through interfaces), all objects in CO must be assigned to a profit center;

Material (plant level, Costing view)
Cost centers
CO orders
PM orders
PP orders
Cost collectors
WBS

The Result Profit centers are depending on the Profit center group “CHEFCHEOPS”. These profit centers are generally assigned to all the ERP companies;

The non reporting Profit Center are in group “CHEF_CNTRL

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title	Organizational Profit Centers

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	CostFAQ:Rules - PF1 PF2 - Profit Center Organizational codification
	CostFAQ:Rules - PF1 PF2 - Profit Center Organizational codification

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title	Reporting Profit Centers

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	CostFAQ:Rules - PF1 PF2 - Profit Center Reporting codification
	CostFAQ:Rules - PF1 PF2 - Profit Center Reporting codification

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title	E. Business area

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	CostFAQ:Rules - Cost Center Business Area
	CostFAQ:Rules - Cost Center Business Area

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title	F. Responsible

The person responsible of a cost center is accountable for the elements allocated in the cost center

The companies using SRM7 for purchasing should have a SRM7 user ID (=BIP user ID) entered in this field, starting with 5, such as 50000000

To display the list of person responsible use the report PF1 PF2 - SRM Validators in cost centers

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title	G. Name in english

Usually the name & description of a cost center is free but in some cases there can be special needs.

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title	H. Assessment cycles

Cycles

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title

Assessment cycles

Definition

Cost object in Product Cost by Period that collects the periodic actual costs incurred in the production of a material. When a cost collector is used, the product is the main cost object.

Use

Product cost collectors are independent of the production type. This means that costs can be collected on product cost collectors in the following production environments:

In order-related production (using production orders) to analyze the costs by period rather than by lot;
In process manufacturing (using process orders) to analyze the costs by period rather than by lot;
Repetitive manufacturing: product cost collectors are used as cost objects.

Practically speaking

Cost collectors are independent of the production type. This means that costs can be collected

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title	Allocation Structure

All Organizational Cost centers, depending on the original cost elements posted in them, have to allocate their cost as Fixed Cost or Depreciation. Also in the case of Utilities partially as variable
Sometimes it may be necessary to track these allocations with separate assessment cost elements so they can be used for instance to determine the origin of the cost for product Costing purpose (activity types / Cost component structure or PRG)
This can be done creating several segments for each cost center or cost center group allocation
But we may SIMPLIFY this allocation by unifying all the multiple allocation into a single segment, using an allocation structure.
With this, we may also adopt standardized assessment cycles for all companies, treating equally the allocation of cost elements and cost centers to Reporting CC or to Production CC
We’ll have just one segment per cost center

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title	Splitting Structure

Splitting structure is used in cost center planning to define which cost elements are considered for calculating which prices of activity types, when a cost center has more than one activity associated to it, and the price is not manually determined (most of the cases in production CC). Also for actual price calculation of the activity types. It links Cost elements (and its amounts) with activities types of a given production CC.

It is done at CC level.
The level of complexity is determined by the different types of activity types used in production CC.
The right design of the splitting Structure/Activity Types is a preliminary step to have the Cost Component structure as detailed or as simple as we want.

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title	Cost Component

Cost Component structure are used to classify within the cost collector which cost elements are fixed, variable or Depreciation. But not only this. The level of granularity depends on the GBU election (election of Cost Component), but it has to be coherent with activity types. It links them to material ledger classification

It is customized at Company level.
The level of detail provided and its complexity is determined by the different types of activity types used in production CC.
The right design of the Splitting structure / Activity Types is a preliminary step to have the Cost Component structure as detailed or simple as we want.

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title	Closing

Info
An assessment cycle is used in SAP to assign all primary cost elements and secondary cost elements from a sending cost center to the receiver cost center.When you want to transfer costs from one cost center to another through an assessment cycle, sap use a secondary cost element and accumulates all the primary cost and secondary cost and send it to the receiving cost center.

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	CostFAQ:Assessment cycles
	CostFAQ:Assessment cycles

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title	Distribution cycles

Info
A distribution cycle is used in SAP to transfer primary costs from a sender cost center to receiving controlling objects. The original cost element remains the same.

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	CostFAQ:Distribution cycles - PF1
	CostFAQ:Distribution cycles - PF1

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title	COPA cycles

Info
COPA Assessment cycle assesses costs from a Cost Center to COPA Value Fields.

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	CostFAQ:COPA cycles - PF2
	CostFAQ:COPA cycles - PF2

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title	Key Principles

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	Costing Key Principles - PF1
	Costing Key Principles - PF1

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title	Cost Collector

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	Cost collector
	Cost collector

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title	Allocation Structure

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	CostFAQ:Allocation structure - PF1
	CostFAQ:Allocation structure - PF1

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title	Splitting Structure

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	Splitting structure - PF1
	Splitting structure - PF1

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title	Cost Component

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	Cost Component Structures - PF1
	Cost Component Structures - PF1

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title	Closing

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	Understand the closing process
	Understand the closing process

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title	Product costing

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	Understand the closing process
	Understand the closing process

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title	Product Costing-PL

SECTION 2 Usage of different reports to explain

PL

the P/L

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title	KE30

Use PF2 - KE30

- Report Z1KCHEOPS to have a report of Sales (R10000) & variable logistic costs (R12910)

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Open a data source or workbook

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title	BW

Info

PF1 Data have been merged in BW – production - WBP to facilitate the analysis of GBUs using WP1 & PF1. For more details, you can visit RtR PE Reporting

Access WBP and Open data source or workbook or go to BW - Analysis Workbook Guide for more details regarding BW

To have the P&L in BW you can use the report ZZKPL_M01_BASIC_02

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title	ZZKPL_M01_BASIC_02 - Basic Report

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	ZZKPL_M01_BASIC_02 - Basic Report
	ZZKPL_M01_BASIC_02 - Basic Report

Other reports that can be used

Report

Description of the report

ZZKPL_M01_CONSO_01

P&L - Consolidation Report.

Not used at legal entity level but used by GBU controllers. It is set-up with the consolidation methodology used in BFC

ZZKPL_M01_CONSO_03

P&L - Consolidation Report

Integrated Margin. It considers the Margin taking in account the production cost at Origin. Only available for SpP and Soda Ash (active also for Peroxide but not validated yet with GBU controller).

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title	Access a BW report

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Open a data source or workbook

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title	GR55

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	CostOP:PF2 - GR55 - BFC Monthly evolution
	CostOP:PF2 - GR55 - BFC Monthly evolution

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title	ML

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	Material ledger - reports
	Material ledger - reports

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title	CCs Reports

With S_ALR_87013615 - Breakdown by Partner,

Info
To have a report of R25460 - Absorption variance: Period non-proportional costs of production (excl depr) & R25860 - Absorption variance: Period non-proportional depreciation of production

Select:

Cost centers group : CCCCXXCC; where CCCC is company code XX the 2 digits of the division (or activity 1)
Cost elements group. Use the group Rules - Cost element Group XCS-ALL or its subgroups
- XCS-FCPE in case you want to report Period Fixed costs
- XCS-DEPPE in case you want to report Period Depreciation

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Info
To have a report of Administrative expenses (non-functions) (R33310), Commercial expenses (R33320) & Shared service function expenses (function costs at the origin) (R33400)

Select:

Cost centers group : all cost centers in Working File 3 using the allocation structure S2 (for R33310), S1 (for R33320) or S3 (for R33400)
Cost elements group. Use the group Rules - Cost element Group ZRCS-FC

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Warning

The report will not tie with the P&L when:

there are direct posting in Reporting cost centers,
there are costs centers not using the appropriate allocation structure

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title	QlikView

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	CostFAQ:Qlikview Fixed costs dashboard
	CostFAQ:Qlikview Fixed costs dashboard

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title	PRG

Use the report PF2- Z1K_MATCOST_SYMPA - Prix de revient

There are PRG

templates that:

Are provided to controllers for their scope: Entity - plant
There are adapted to local request.
Filters can be changed by controllers: eg unfilter depreciation services. Or they can add other dimension.

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(*) RECONCILIATION FC

title		Fixed costs reconciliation

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	PF1 - Fixed costs reconciliation
	PF1 - Fixed costs reconciliation

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Versions Compared

Old Version 7

New Version Current

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SYMPA ACADEMY

Structure of the training

Read me first

SECTION 1 Construction of the P/L

SECTION 2 Usage of different reports to explain

the P/L

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Versions Compared

Old Version 7

New Version Current

Key

SYMPA ACADEMY

Structure of the training

Read me first

SECTION 1 Construction of the P/L

SECTION 2 Usage of different reports to explain

the P/L