The IMEP (Integrated Manufacturing & Energy Performance) application is under the finance domain using data from SAP CO (Controlling) to provides to business the possibility to analyze the production's target cost, actual cost, the variance for each cost item in process order, the cost collector, and to determine energy consumption and CO2 emission during production process.
For this Application the access is provided based on the BW menu "IMEP - Integrated Manufacturing & Energy Performance" and it's done via Service one.
Fill the form
https://solvay-dwp.onbmc.com/dwp/app/#/itemprofile/622
In SAP system select the "WBP - BW Business Warehouse"
In WBP - BW Business Warehouse : Select the Business Role select the "IMEP - Integrated Manufacturing & Energy Performance"
VERSION | DATE | MODIFIED BY | DESCRIPTION |
0.01 | 09.10.2023 | Inês Vilares | Initial draft |
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| Technologies |
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Data Sources Note: list of all applications and various environment |
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2.0 Business Process
To understand better the main goal for the IMEP application it's necessary to know some concepts from the SAP CO module for the product costs.
Product Costing
The flow of the product costing is composed of a series of standard transactions which are interconnected. This requires the processing in a certain sequence. The procedure starts in the cost center accounting referring to so-called production cost centers. Defined activity types are assigned to these cost centers. For the daily movements the activity prices are valuated at standard cost. In the closing of the product costing they will be revaluated at actual prices. The differences are credited on the production cost centers and debited on the production cost collectors, managed in the cost object hierarchy.
The procedure continues with the distribution of postings of actual costs on the cost object level to the assigned cost collectors.
All categories of variances between target costs and actual costs, like price and quantity variances in raw and packaging materials, same for consumed activities are calculated within the cost object hierarchy and posted on cost collectors. As the cost collectors are a certain kind of order, they must be settled at the end of the period.
Intermediate checks take place in order to look at the ‘zero’ balance of the cost accounting objects involved.
Material Ledger
To execute the Material LEdger it's necessary that the Prodcut Costing was successfully completed.
After that it is necessary to run Material Ledger, in order to correct the standard price, calculating an actual price for each material, based on all the actual costs for that specific period. This actual price is called “periodic price unit” and can be used to revaluate the material stock for the mentioned period.
Actual Costing - determines what portion of the variance is to be debited to the next highest level using material consumption. With the actual BOM, variances can be rolled-up over multiple production levels all the way to the finished products.
Material Ledger is activated at company level but its use can be limited by plant or by article. So, if one plant is customized with ML, all the articles in this plant will have material ledger postings but with a different importance depending if the article is included in the end of the month procedure or not.
After the run of Material Ledger, all the inventory stocks are revaluated at actual prices and actual production cost of the period.
To see more detil information about the process please check in the wiki page for "Costing - Knowledge Base" .
Below you can see that for each system we have main differences coming from Costing Methodology:
The valuation in solvay it's done once a month.
For WP1 each month we revaluate the standard price of the products and independent of the actual costs of the month, the valuation in stock for the products will be done with the standard price so it will exist a variance and this difference will be posted in a dedicated line in P&L.
For PF1 we use the Material Ledger to calculate the actual costs, that means each entry in stock of a produced material it will be done at the actual costs. In the end of the month they will reassign the difference between the standard cost and the actual cost and to have the stock with the actual cost. In this case the difference is allocated to the product and not in P&L as in WP1.
SAP Transaction Material master data: MM03 in Accounting1 and Costing 2 page.
3.0 Application Feature Overview
For this application find below all the workbooks available (the most used workboks are identified by the symbol 
):
| Reports | Definition | Prompts | BW Workbook Query | Query Technical Name |
|---|---|---|---|---|
| BW - IMEP - WP1 Manuf. Local Database (Core Workbook) | It gives a transversal and consolidated view of manufacturing costs (from sites to GBU level) for all plants managed in WP1 . | Mandatory:
Optional:
| BW_WBK_CO_0019 | BW_QRY_MVCOPP01_0009 |
| BW - IMEP - PF1 Manuf. Local database (Core Workbook) | It gives a transversal and consolidated view of manufacturing costs (from sites to GBU level) for all plants managed in PF1 . | Mandatory:
Optional:
| BW_WBK_CO_0021 | BW_QRY_MVCOPP01_0011 |
| BW - IMEP - PF1 Check of data consistency (Core Workbook) | The workbook is used to validate the quality of the data reported in imep for the sites in PF1. | Mandatory:
Optional:
| BW_WBK_CO_0024 | BW_QRY_MVCOPP01_0013 |
| BW - IMEP - PF1 ML synthesis (Core Workbook) | This report answers a specific need of GBUs operating in PF1 who wants to better understand the impact of the stock effects in their P&L. It can be used as the report Z1K_CONS_ESTO in PF1 but for a wider scope. | Mandatory:
Optional:
| BW_WBK_CO_0026 | BW_QRY_MVCOPP01_0018 |
| BW - IMEP - PF1 Prod. Cost Center Actual Postings (Core Workbook) | It is cost center report that can be used to detail the Index 1 = 9. It is mainly used to provide the detailed utilities costs that are posted in dedicated cost centers with dedicated Statistical Key figure. | Mandatory:
Optional:
| BW_WBK_CO_0025 | BW_QRY_MVCOPP01_0016 |
| BW - IMEP - PF1 Prod. Costs by Cost Objects (Core Workbook) | This workbook is the same as the workbook BW_WBK_CO_0021 IMEP - PF1 Manuf. Local database (Core Workbook) with a different lay-out. | Mandatory:
Optional:
| BW_WBK_CO_0029 | BW_QRY_MVCOPP01_0011 |
| BW - IMEP - PF1 Uploaded budget data check (Core Workbook) | This report used to control the budget that was uploaded using the transaction ZIMEP_FILE. | Mandatory:
Optional:
| BW_WBK_CO_0023 | BW_QRY_MVCOPP01_0012 |
4.0 Functional Specification
4.1 General Data/Calculations
For these reports, it’s important to understand some general concepts which are transversal to all the reports which allows the users to work with the reports.
| Standard Cost | Refers to a predetermined, fixed cost that a company assigns to its products, materials, or services for the purpose of internal cost accounting and cost control. It serves as a benchmark or baseline cost against which actual costs are compared. The key elements of a standard cost include labor, material, and overhead costs. |
|---|---|
| Costing Lote size | For a material we have in the master data the definition for the costing lote size and we can have 1 unit or 100 units and for the value of the stock this will be used with the price defined. |
| Cost Object | in PF1 it's a grouping of material which doesn't exist in WP1. |
| Index | Is a key element to understand to set-up an accurate report to follow production quantities and costs. More detail information in the Process Detail section. |
4.2 Process Detail
4.2.1. Report/Process Definition
| Domain | Finance |
|---|---|
| Application | BW reports under IMEP - Integrated Manufacturing & energy Performance folder |
| Provider | MVCOPP01 |
SAP BW High Level View
IMEP - Characteristics
You can find below the list of all characteristics and some measures available in iMEP workbooks.
Type in y ou r keywords in the field "Text search"
Index 1
In the application iMEP, the caracteristic Index 1 is a key element to understand to set-up an accurate report to follow production quantities and costs.
For historical reasons, the data structure is not the same in our two source systems (WP1 & PF1). It explains why some indexes only exist in one of the two ERPs.
| Code | Description | Definition | WP1 | PF1 |
|---|---|---|---|---|
| 1 | Produced material | Costs and quantities at finished product level |  | |
| 2 | Co-product | Co-product | | |
| 3 | BOM component | Costs and quantities issued from component consumption | | |
| 4 | Subcontracting | Subcontracting costs | | |
| 5 | Activity type | Costs and quantities issued from activity consumption at standard costs | | |
| 6 | Settlement | Process Orders variances | |  |
| 7 | Cost Collector Varia | Allocation of activity variances done by Material Ledger |
| |
| 9 | SKF/direct Posting | Detailed origin of costs consumed on production cost centers by Activities | | |
Example PF1
The aim is to have the detailed quantities and costs of production of the material 157142 in iMEP
There are 4 columns in the report:
- Finished product code:
- Index 1
- Actual quantities
- Mat. Ledger Costs = Actual costs
The detail of costs & quantities is:
| Index 1 | ||
|---|---|---|
| a | 1 - Produced material | 70 000 KG of the finished product 157142 SD are produced and the total production cost is 6 840 € |
| b | 3 - BOM conponent | 206 000 KG of Raw Materials are used for the production of the finished product with a total cost of 2 650 € |
| c | 5 - Activity type | The cost of activities used for the production is 4 440 €. It is based on the estimated costs of activities |
| d | 7 - Cost Collector Varia | It is the difference between the standard cost of activities and actual costs (=4 190 € - 4 440 €) |
| e | 9 - SKF/direct Posting | It is the detail of activity costs |
- The cost of production (a) = cost of raw materials (b) + cost of activities (standard (c) & variance(d)) = 6 840 € = 2 650 € + 4 440 € - 250 €
- Index 1 = 9 (e) is the detail of activity costs. It is equal to Index 1 = 5 (c) and Index 1 = 7 (d) => 4 440 € - 250 € = 4 190 €
Control data accuracy
The workbook BW_WBK_CO_0024 is used to perform some consistency checks.
Example WP1
The aim is to have the detailed quantities and costs of production of the material 157142 in iMEP
There are 4 columns in the report:
- Finished product code:
- Index 1
- Actual quantities
- Actual Costs
The detail of costs & quantities is:
| Index 1 | ||
|---|---|---|
| a | 1 - Produced material | 35 000 TO of the finished product 81016 SOD are produced and the total production cost is 2 700 k€ |
| b | 3 - BOM component | 10 500 TO of Raw Materials are used for the production of the finished product with a total cost of 2 300 k€ |
| c | 5 - Activity type | The cost of activities used for the production is 350 k€. |
| d | 6 - Settlement | It is the production variance. The amount is settled to the P&L to the value field D05/E05/F05 |
- The cost of production (a) = cost of raw materials (b) + cost of activities (c) + variance (d) = 2 700 k€ = 2 300 k€ + 350 € + 50 k€
Workbook Details
Access the workbook
The workbook to be used is BW_WBK_CO_0021 - BW - IMEP - PF1 Manuf. Local database (Core Workbook)
=> Go to Analysis for Office in excel
=> Click "Open Data Source"
Go to the tab "Role" and open the folder IMEP - Integrated Manufacturing & Energy Performance => Manufacturing and Double-click on the workbook which the user will use to open it.
BW - IMEP - WP1 Manuf. Local Database (Core Workbook)
This workbook gives a transversal and consolidated view of manufacturing costs (from sites to GBU level) for all plants managed in WP1 .
Open the workbook (BW_WBK_CO_0019)
It is mandatory to enter the period (1) : MMM.YYYY
It is also recommended to enter at least a GBU (6), a company code (7) or a plant code (11)
It is also possible to enter:
- a target currency (3) to have all values converted with the same currency
- a Unit of Measure for the quantity conversion (ex: TO for Tons) (4)
- a Unit of Measure for Active ingredients (5)
- a Cost center (8)
- an Index 1 (9)
- a material code (10)
Click "OK"
How to understand the report
By default there are 11 columns in the report:
- The source system = WP1_400
- The Controlling Area
- The production plant
- The material = The finished product
- The Index 1
- The Origin
- The Actual quantity produced
- The Actual costs of production splited by
- Actual Variable costs (9)
- Actual Fixed costs (10)
- Actual Depreciation (11)
It is recommended to keep these columns in your report to avoid that all master data start with "WP1_400/" or "Z006/" but you can hide them in the design panel. Click on the dimension you want to hide and select "No display"
In this example t he material 11830 ZEOSIL 1165MP BULK was produced during the period in plant 0087:
- 2 763 Tons were produced and the total production costs is 1 513 312,29 EUR
- 49 Tons of co-products were also produced and the total production costs is 492,40 EUR
- The production of the finished product & the co-product was done with 11 533 Tons of Raw materials. And the total cost of these raw materials was 824 265,21 EUR
- Activities (Labour, energy, fixed costs) were also allocated to the production costs of these products with a total costs of 688 054,53 EUR
- The variance between actual production costs & standard costs (=process order variance) is 1 484,95 EUR
- The total should be zero as the total production costs (Index 1 = 1 & 2) corresponds to the cost of raw material & activities + variances (Index 1 = 3, 5 & 6)
Set-up a detailed report
when you have a good understanding of the report, you can add additional information in the report. You can refer to the list IMEP - Characteristics to have a definition of each dimension available in iMEP reports.
For instance add:
- the field "Origin" to have additional details by raw material & activity
- the measures "Actual Costs VC", "Actual Costs FX" & "Actual Costs DP" (c) to have the split of costs by variables costs, fixed costs and depreciation
=> You can also add the QUR, QUS, CUR, CUS (actual and standard unit quantity & cost)
BW - IMEP - PF1 Manuf. Local database (Core Workbook)
This workbook gives a transversal and consolidated view of manufacturing costs (from sites to GBU level) for all plants managed in PF1 .
Open the workbook (BW_WBK_CO_0021)
It is mandatory to enter the period (1) : MMM.YYYY
It is also recommended to enter at least a GBU (5), a company code (6) or a plant code (11)
It is also possible to enter:
- a target currency (2) to have all values converted with the same currency
- a Unit of Measure for the quantity conversion (ex: TO for Tons) (3)
- a Unit of Measure for Active ingredients (4)
- a Cost center (7)
- a Cost object (8)
- an Index 1 (9)
- a material code (10)
Click "OK"
Set-up a basic report
When you start working with iMEP, you can simplify the lay-out that is proposed by default.
- Click the button "display" to show the "Design Panel"
- Remove "CE Grp XCS-ALL Lev2", Cost Element, Origin from the report. (drag this values from the box "Rows")
- You can also hide the value "Source Syst." & "CO Area" (Click the dimension and select "no display")
There are 6 columns in the report:
- The plant code
- The code of the material produced and its description
- The Index 1
- The actual quantity
- The actual costs
How to understand the report
In this example the material 157142 SD CS1250 4SMVSH was produced during the period in plant TOSA:
- 49 210 Tons were produced and the total production costs is 5 091 065,04 EUR
- 26 710 M3 of co-products were also produced and the total production costs is 7 919,39 EUR
- The production of the finished product & the co-product was done with 49 210 Tons of Raw materials. And the total cost of these raw materials was 4 696 549,05 EUR
- Activities (Labour, energy, fixed costs) were also allocated to the production costs of these products with a total costs of 443 377,61 EUR (Standard costs) - 40 942,28 EUR (Variances) = 402 435,33 EUR
- Detailed of costs posted on cost centers = 402 435,33 EUR. It provides the detail of the activities costs and the total amount is the same as (4).
- The total should be zero as the total production costs corresponds to the cost of raw material & activities. However in this example the cost of activities is double-counted (4) & (5). It is recommended to exclude the Index 1 = 9 of your reports except if you have a specific need.
When you exclude the Index 1 = 9 of your report then the total Mat. Ledger Costs by material code is close to zero.
=> You can use the workbook IMEP - PF1 Check of data consistency to validate that it is true for all the materials of a plant, company or GBU.
Set-up a detailed report
when you have a good understanding of the report, you can add additional information in the report. You can refer to the list IMEP - Characteristics to have a definition of each dimension available in iMEP reports.
For instance you can add:
- the field "Origin" to have additional details by raw material & activities
- the measures "ML VC", "ML FX" & "ML DP" to have the split of costs by variables costs, fixed costs and depreciation
=> You can also add the QUR, QUS, CUR, CUS (actual and standard unit quantity & cost)
BW - IMEP - PF1 Check of data consistency (Core Workbook)
The aim of this workbook is to validate the quality of the data reported in imep for the sites in PF1.
It can be used when you start working with iMEP queries and confirm that there is no specificity in your production site / GBU that is not taken into account in the imep program.
Open the workbook (BW_WBK_CO_0024)
It is mandatory to enter the period (2) : MMM.YYYY
It is also recommended to enter at least a company code (6) or a plant code (11)
It is also possible to enter:
- a target currency (3) however it is recommended to perform the test with the local currency
- a Unit of Measure for the quantity conversion (ex: TO for Tons) (4)
- a GBU (5)
- a Cost object (8)
- an Index 1 (9)
- a material code (10)
Click "OK"
The workbook in detail
There are 7 sheets in the workbook:
1. DS_6
The aim of the report iMEP is to provide a detail of actual production costs by material/plant. In PF1, the actual production costs by material is calculated with Material Ledger and the total by material/plant can be displayed with the transaction CKM3 - Material Price Analysis.
The purpose of the control (DS_6) is to compare the calculation done by Material Ledger (3) and the one done in iMEP (2) material code by material code (1)
Ex: The actual production costs calculated with Material Ledger (3) gives the same result as iMEP (2). It confirms that the report iMEP is accurate.
(2) = (3)
=> In case of discrepancies, a ticket should be created to get the support of the IS team
2. DS_2
Produced quantity (2) should be equal to Actual quantity (3)
(1) = (2) - (3)
=> In case of discrepancies, a ticket should be created to get the support of the IS team.
3. DS_1
The aim of this control is to ensure that the total productions costs (2) calculated by iMEP is equal to variable costs (3) + fixed costs (4) + depreciation (5).
(1) = (2) - ((3) + (4) + (5))
=> In case of discrepancies, a ticket should be created to get the support of the IS team
4. DS_3
The aim of this control is to ensure that the total productions costs (Index 1 = 1 & 2) (2)(3) calculated by iMEP is equal to the sum of Raw materials (Index 1 = 3) (4) and activities (Index 1 = 5 & 7) (5)(6) costs.
(1) = (2) - ((3) + (4) + (5) + (6))
=> In case of discrepancies, a ticket should be created to get the support of the IS team
5. DS_4
The aim of this control is to ensure that the total activities costs (Index 1 = 5 & 7) (1)(2) calculated by iMEP is equal to the production costs recorded in a cost center (Index 1 = 9) (4)
(3) = ((1) + (2)) - (4)
=> The control is only true when a production cost center is dedicated to the production of a single material.
In the case of multi-materials cost centers, it is not possible to report the index 1 = 9 per material and therefore the control does not work.
6. DS_5
TO BE COMPLETED
7. Data loading
In this sheet you can find some information regarding the loading of data in iMEP
BW - IMEP - PF1 ML synthesis (Core Workbook)
This report answers a specific need of GBUs operating in PF1 who wants to better understand the impact of the stock effects in their P&L. It can be used as the report Z1K_CONS_ESTO in PF1 but for a wider scope.
Open the workbook (BW_WBK_CO_0026)
It is mandatory to enter the period (2) : MMM.YYYY
It is also recommended to enter at least a GBU (5), a company code (6) or a plant code (9)
It is also possible to enter:
- a target currency (3) to have all values converted with the same currency
- a Unit of Measure for the quantity conversion (ex: TO for Tons) (4)
- a Cost object (7)
- a material code (8)
Click "OK"
The report
The report is displayed with the list of raw materials and the detail of stock movements
There are 20 columns in the report for amounts (blue) and quantities (green)
- Inventory at the beginning of the period entered in the prompt
- Production of the material during the period
- Other receipts such as purchases
- Consumption of the material in production
- Sales
- Other consumption such as transfer to another plant
- Other movements of inventory
- Ending inventory
- Delta is the difference between the beginning and the ending inventory
- Control that the difference between the beginning inventory and the ending inventory corresponds to the sum of all inventory movements. It should be equal to zero.
This detail corresponds to the detail available in the transaction CKM3 - Material Price Analysis in PF1 by material code
5.0 Non-functional Descriptions
5.1 Usability
5.2 Regulatory Compliance
5.3 Security
5.4 Performance
5.5 Reliability
5.6 Scalability
5.7 Compatibility
5.8 Availability
5.9 Refresh of the Data
The loads for this application it's once per daya as we can see below at 6 a.m:
