Introduction

SECTION 1 Construction of the P&L

TO BE UPDATED WITH AFTER SPS PROJECT

Business Financial Consolidation (BFC)

P&L statements and BFC interfaces are produced through

CO-PA for sales data (by country, partner, etc.)
CO-PCA for other P/L reporting items
Material ledger for COGS (split VC / NVC / DEP)

A specific transaction in PF1 (ZZF_BFC_COLLECTIVE) is used to extract the data to send to BFC, from the different sources.

The assignment of financial accounts and cost elements to BFC reporting items is done via sets of accounts (centrally managed) (GS03 - Display Set)

COCA PL-BFC mapping-Active accounts

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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).

1 digit code identifying the country inside Solvay ERP.

Use in CO:

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

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 - ZPRI Display table ETAB

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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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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 - SRM Validators in cost centers

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

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

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

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.

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.

SECTION 2 Usage of different reports to explain PL

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SYMPA Academy

Introduction

SECTION 1 Construction of the P&L

SECTION 2 Usage of different reports to explain PL