The Profit & Loss Integrated Costs or Integrated Margins application it’s part of the Finance domain using data from SAP systems and non-ERP system information based on data already built for the Profit and Loss report using COPA data (Controlling - Profitability Analysis) a component from SAP CO module.
The goal of the Integrated Costs is to have the full profitability of a product at customer level.
- In standard reports the margin is given by legal entity,
- With the integrated margin report, the aim is to give the margin at Group or GBU level and get rid of legal entities constraints.
Describe the key User profiles that exist for the application. To be checked
General role/Viewer role:
Approver role:
VERSION | DATE | MODIFIED BY | DESCRIPTION |
0.01 | 01.08.2023 | Inês Vilares | Initial draft |
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Data Sources Note: list of all applications and various environment |
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2.0 Business Process
From the business process please see below the logic comparing the contribuiton margin with the integrated margin process for selling a product to a final customer where in this scenario, the product undergoes multiple stages involving several companies from Solvay, in its production. Throughout this process, there are internal margins between the companies which making it challenging to determine the real value of the external margin when the product is sold to the final customer, as these internal margins are already included into the overall flow.
To obtain a clearer view of the external margins, we have this process to not take in consideration the internal margins and only have the influence of the freight and duties. By doing so, we can present more transparent and easily comprehensible values of the contribution margins for each company involved.
Contribution Margin Concept:
Integrated Margin Concept:
3.0 Application Feature Overview
| Reports | Definition | Prompts | BW Workbook Query | Query Technical Name |
|---|---|---|---|---|
P&L Integrated Margin - Freight & Duties Costs Tables | ||||
| P&L Integrated Margin - IM Cost Unit Query | ||||
| P&L Integrated Margin - Contribution Margin Query | ||||
| P&L Integrated Margin - CM/GM Query | ||||
| P&L Integrated Margin - Monthly CM/GM Query | ||||
| P&L Integrated Margin - Monthly CM/GM Query (Month Selected) |
4.0 Functional Specification
4.1 General Data/Calculations
This section will approach the concepts/definitions that will be used in all the reports and required to understand the data from the reports.
Could be specific fields, closing activities, additional information to work and understand the reports.
4.2 Process Detail
4.2.1. Report/Process Definition
| Domain | Finance |
|---|---|
| Application | BW reports under P&L folder |
| Provider | MVCOPA01, MVCOPA04 and MVCOPA06 |
SAP BW High level view:
To see the data from the source systems see below how the information is organized in the BW perspective: To be check with Ludovic
Part of MVCOPA01 provider:
MVCOPA04 & MVCOPA06 providers:
Integrated Margin for PF1
The logic for PF1 is using a specific program ZZCONACT where it's manage in PF1 system and we only load the data into BW. To be checked with Ludovic
Integrated Margin for WP1
| 1º Step; Costing Run | In WP1, the costing run is marked on D-2 or D-1 and released on D1. It is used as a reference for the calculation of the integrated costing. |
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| 2º Step: Special Procurement Codes (SPK) | They are used to determine from which plant a material comes from. It can be maintained by the Supply Chain or the finance team. The SPK should reflect the reality of the flow and every time a flow is created or changed, the SPK should be updated. The SPK is maintained in WP1 in the Material Master Data (MM03) and it can be maintained in the view MRP 2 or in the view Costing 1. |
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UPIS- Unrealized Profit in Inventories
This information was to provide data for logistic side to be available for the Integrated Margin concept. It's coming from a upload of a file in ZPL_UPIS Transaction. (for the moment not used)
4.2.2. KPI's/Calculations/Indicators
Indicators available:
- XXXX
- XXXX
Indicatores/KPI's | Definition | Calculation/Extraction of data |
|---|---|---|
Can be a field, a program, something that was created or the report | What are we looking for ? Why has this KPI been created/developed? What is the goal of monitoring this data ? | How is the calculation, or if it's a program what are the steps or how the data is extracted if it's by files |
5.0 Non-functional Descriptions
Please populate the relevant section and delete those that are not applicable.
5.1 Usability
Usability is about the ease with which a User can learn to start using the solution and the ease with which they can use the system. In addition to ease of learning and ease of use, usability also includes areas such as ease of recall, error avoidance and handling, accessibility among others e.g., 99% of metadata entry Users who have use the Maintenance Dashboard should be able to change filters, extract etc., when required. Maintenance data will be centrally stored in the Google Cloud platform, which will be available to other applications e.g., and Dashboards if needed.
5.2 Regulatory Compliance
Software systems must comply with legal and regulatory e.g., GDPR requirements, this can change depending on country, organisation industry and / or region. The software systems must be secure from unauthorized access. The Maintenance Dashboard will comply with Solvay’s regulations and compliance e.g., access only granted to authorized Users.
5.3 Security
Security refers to essential aspects that assure a solution and its components will be protected against unauthorized access or malware attacks. Important considerations related to security aspects of a system are User authentication, User authorization or User access privileges, data theft, malware attacks, data encryption, and maintaining audit trails, e.g., only Users with administrator access shall be able to create new accounts and assign data access privileges to the new accounts e.g.,
- All data will be encrypted in the dashboard
- Only authorised Users / Administrative Users will be able to access data.
- Maintenance data will be split between either SCO or ECO, and Users will only have authority to one Entity data.
5.4 Performance
Performance defines how fast a software system or a particular section of it responds to certain User actions under a certain workload. In most cases, this metric explains how long a User must wait before the target operation happens e.g., the page renders, a transaction is processed, etc., given the overall number of Users now. Performance requirements may describe background processes invisible to Users, e.g., backup and speed of data transfers.
5.5 Reliability
Reliability is the ability of a solution or its component to perform its required functions without failure under predefined conditions for a specified time / period. Reliability can possibly be specified in terms of average time system runs before failure occurs, percentage of operations completed successfully within a time / period, maximum acceptable failure probability, or number of failures within a period. Reliability aspects are in reference to (but not limited to) evaluation of the system to be considered as reliable, classification of reliability defining failures vs. regular failures, and the impact of failure on business operations. The Maintenance Dashboard will display data from the previous refresh of data.
5.6 Scalability
Scalability refers to the degree to which a solution can evolve to handle increased amounts of work. The increased amount of work could be in terms of the user base, transactions, data, network traffic, or other factors e.g., the system should be able to handle an additional load of a maximum of 5,000 Users every month for the next 6 months without any noticeable performance impacts.
5.7 Compatibility
Interoperability is the degree to which the solution is compatible with other components. It is a measure of how effectively the system interoperates with other software systems and how easily it integrates with external hardware devices.
Interoperability aspects to be discussed during elicitation are in reference to (but not limited to) software systems to be interfaced with along with data / messages to be exchanged and any standard data formats, hardware components to be integrated with, and any standard communication protocols to be followed e.g., Order Management system will push the order file into a secured file transfer protocol server from where it will be loaded into the system through a daily job. To guarantee between Google Cloud platform and SAP BW Queries e.g., BW_QRY_MVPMOR01_0002, Solvay has introduced a new tool called Xtract (Xtract).
5.8 Availability
Availability is the degree to which the solution is operable and accessible when required. It is a measure of time during which the system is fully operational e.g., available for use and sometimes included as a Service Level Agreement (SLA) considering its criticality to the business, e.g., the system shall be at least 99% available on weekdays between 09:00 to 18:30 Central European Time (CET).
5.9 Refresh of the Data
Frequency, data, and time of the data refresh in the data product.