Introduction

 

SECTION 1 Construction of the P&L

 

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

KA03 - Display Cost Element

KAH3 - Display cost element group

 

 

 

 

 

 

 

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

 

 

 

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.

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.

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. 

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

 

 

 

Root cause analysis for the contribution margin readability: split building between «Variable costs» and «Fixed costs» 

 

PRG vs ML: Main Differences


  • PRG provides the product Costing at Cost Object hierarchy (Group of Materials)
  • Material Ledger Provides it at Material code Level
  • PRG provides info about Utilities consumption and other SKF
  • Material Ledger does not
  • Material Ledger is integrated and is the basis for the Cost of Good Sold.

 

SECTION 2 Usage of different reports to explain PL

Use PF1 - KE30 - Report Z1KCHEOPS to have a report of Sales (R10000) & variable logistic costs (R12910)

 

 

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 a 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

 

 

 

Other reports that can be used

ReportDescription 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).

 

 

 

Use CKM3 - Material Price Analysis with the view "Cost elements".

  • R15400 Proportional costs of sales

  • R25460 Period non-proportional costs of production (excl depr)