This application is made for CBS controllers who want to follow the fixed costs of their function.



Scope

  • Worldwide
  • All consolidated legal entities in PF1, PI1, WP1


Users

  • Corporate Controlling Controllers : at aggregated level, to report to COMEX -> query synthesis
  • Function Controllers : at detailed level, to pilot activity of their Function / scope -> query by function
  • Accountants : for reconciliation ERP / BW / FC -> query by company


Authorizations

  • Function x Company Code


Structures

The structure is based on: 

Function costs are split in 4 parts:

  • Corporate (not re-invoiced)
  • Function services (re-invoiced and under guarantee)
  • R&D and engineering projects
  • Interco flows - It allows the identification of inter-company billing at company level

Costs included in the report: 

  • Actual costs only: Statistical costs are not taken into account
  • IFRS rules only: Costs posted using local gaap accounts are excluded (Brazilian entities)
  • Costs posted on CBS (Corporate Business Services) cost centers (directly or through orders or WBS). It corresponds to the cost centers included in the following groups of the cost centers hierarchy ZCBS: 
    • ZCBS-CORPO = Corporate
    • ZCBS-FUNCT = Function services
    • ZCBS-PROJ =Projects
    • ZCBS-ICO = Interco
  • Costs are organized with the cost elements group ZRCS-FC
  • Inter-company re-invoiced function service costs should be posted on cost centers of the group ZCBS-ICO


Function cost tracking reports

Design

5 queries available, corresponding to 2 approaches

  • Point of entry : function(s) or company(ies)
  • End of month (final settlement on function CC) or During the month (link to function CC before settlement)


End of MonthDuring the Month


to be used for reporting after the closing when all costs posted in orders are settled on CBS cost centersto be used during the month when orders are not yet settled
By Function

function controlling

BW_QRY_MPR_FC001_001 (star)

BW_QRY_MPR_FC001_005

BW_QRY_MPR_FC001_003
corporate controlling

By companylocal controllingBW_QRY_MPR_FC001_002 (star) (star) BW_QRY_MPR_FC001_004

(star) BW_QRY_MPR_FC001_001         CBS Functions - end of month => for reporting to corporate controlling

(star) (star) BW_QRY_MPR_FC001_002     CBS Functions by companies => for reconciliation FC vs BW

Possibility to analyze a “one-level-up” cost cascade

Data

  • CO documents: actual costs in local currency + report in other currency with BFC exchange rate
  • Entries on Cost Centers, Orders and WBS elements
  • Postings to COPA & Local Gaap cost elements are excluded


“Synthesis” & “Function – end of month”  reports

Additional axis : Structure with 6 categories


Category

Definition

Example

(1)

Gross

All costs excluding depreciation before any deduction (sales, capitalization, etc…)

all labour costs + travel + services + …

(2)

Depreciation

Postings with depreciation cost elements

depreciation costs

(3)

Sales

postings with sales cost elements (excluding capitalization) + postings with all other cost elements linked to Invoicing WBS element (partners with object class “Profitability Analysis”)

activity (man Hr) posted on invoicing WBS
-> time spent on IT project reinvoiced to customer

(4)

Costs going to be capitalized

postings linked to Investment WBS or Orders (partners with object class “Investment”)

activity (man Hr) posted on investment WBS
-> time spent on IT project for development phase

(5)

Cost transferred (star)

Credits from overheads CC WBS IO (partners with  class object “Overheads” - excluding sales cost elements)

activity (man Hr) posted on overhead WBS
-> time spent on IT project for training phase


Net Function

Balance of the cost center

(1) + (2) - (3) - (4) - (5)


(star) postings on function CC from WBS or internal order settlement are classified in Gross




BW Reports

Synthesis

  • Costs posted on function cost centers only
  • Categorization of costs following the structure described in the slide ““Synthesis” & “Function – end of month”  report”.
  • Highest level of detail: cost center x cost element
  • The sign of the amount is seen from the function cost center ( +: costs increase / -: costs decrease)
  • List of characteristics available

Functions – End of month

  • Costs posted on function cost centers only
  • Categorization of costs following the structure described in the slide ““Synthesis” & “Function – end of month”  report”.
  • Highest level of detail: partner CO object
  • The sign of the amount is seen from the function cost center ( +: costs increase / -: costs decrease)
  • List of characteristics available

Functions – During the month

  • Costs posted on function cost centers and CO objects with function CC as responsible CC
  • No categorization of costs
  • Highest level of detail: partner CO object
  • The sign of the amount is seen from the function cost center ( +: costs increase / -: costs decrease)
  • List of characteristics available

Functions by Company – End of month

  • Costs posted on function cost centers only
  • No categorization of costs
  • Highest level of detail: partner CO object
  • The sign of the amount is seen from the function cost center ( +: costs increase / -: costs decrease)
  • List of characteristics available

Functions by companies – During the month

  • Costs posted on function cost centers and CO objects with function CC as responsible CC
  • No categorization of costs
  • Highest level of detail: partner CO object
  • The sign of the amount is seen from the function cost center ( +: costs increase / -: costs decrease)
  • List of characteristics available
  • Same layout as “Functions – During the month”


Characteristics available in CBS reports

Characteristic


Synthesis

Functions – End of month

Functions by Companies – End of Month

Reports – During month

0 – Hierarchy

Level 0 of ZCBS hierarchy

X

X

X

X

1 – Organization

Level 1 of ZCBS hierarchy

X

X

X

X

2 – Function

Level 2 of ZCBS hierarchy

X

X

X

X

3 – Sub-Funct Group

Level 3 of ZCBS hierarchy

X

X

X

X

4 – Sub-Function

Level 4 of ZCBS hierarchy

X

X

X

X

Controlling area

Controlling area of the function CC

X

X

X

X

Company

Company of the function CC

X

X

X

X

Country

Country of the company

X

X

X

X

Geographical zone

Zone to which the country is attached

X

X

X

X

Cost center

Function cost center

X

X

X

X

Responsible Cost Center

Function CC responsible of an order or a WBS element




X

WBS element

WBS element with a function CC as a responsible CC




X

Order

Order with a function CC as a responsible CC




X

Fixed Cost Group 1

Level 2 of ZRCS-FC hierarchy

X

X

X

X

Fixed Cost Group 2

Level 3 of ZRCS-FC hierarchy

X

X

X

X

Fixed Cost Group 3

Level 4 of ZRCS-FC hierarchy

X

X

X

X

Cost Element

Cost element used to post function costs

X

X

X

X

Partner Cost Center

Cost center with which the function CC exchanges costs (credit or debit)


X

X

X

Partner Activity Type

Type of activity used to transfer costs to the function CC from a partner CC


X

X

X

Partner WBS element

WBS with which the function CC exchanges costs (credit or debit/Posting or settlement )


X

X

X

Partner Order

order with which the function CC exchanges costs (credit or debit/Posting or settlement )


X

X

X

Partner Vendor

Vendor in purchase flows


X

X


Sender / Receiver

indicator that identifies the direction of the posting


X

X

X

Cost Structure

slide ““Synthesis” & “Function – end of month”  reports

X

X