Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore, new_zealand, emea_transversal, apac_transversal

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance

      • E.g. 2: France Operation in Financial Accounting:
        • Labels to be used: country_accounting, france, financial_accounting
          (for country operations, the Domain is always country_accounting)


3. Fill in all fields as described above

4. Name the title of each section using OPD methodology naming convention - Infinitive verb without the “to”, mainly action verb...something) - " I do something..."

5. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow 




Domain: Costing



Responsibility area: Ensure Costing Allocations


Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)



Scope

3. Remove the icon when not applicable


ERP

4. Remove the icon(s) when not applicable


Frequency

5. Remove the icon(s) when not applicable


References

6. Add the link to SAP transaction(s) (when it exists)

FS10N; GR55; KE30; KE21N; F.01; GR55


Forms

FI COPA CONTROL.xlsm


Attachments

8. Add the link to attachments or external links



Previous OP << >> Next OP



1. Objective and Scope

1.1. Objective of this Operation

The goal of this operation is to guarantee that, at the end of each month, the results in FI match with the ones in COPA.


1.2. Scope

This procedure is applied to all companies WW.


2. Definitions

Definitions should be added in the Finance Glossary - Add definition and link it to respective Letter in Finance Glossary 

See Finance Glossary:


3. Tasks description

3.1. I run the FI report "net result"



Go to transaction GR55, report Z4F1. Update the company code, the period, and check the result in heading L12000:



Go to transaction FS10N. Update the company code, the year, and check the result for all BS 98* accounts:




3.2. I run the CO-PA report "net result"



Go to transaction KE30, report ZZZ-SOLV00. Update the company code, the period, and check the result in the Net Result:




Go to transaction KE30, report ZZZ-SOLV00. Update the company code, the period, and check the result in the Net Result:


3.3. I compare both results

Both amounts must match.


3.4. I analyse the reason of the discrepancy and take the corresponding corrective action












All postings done directly in COPA should be avoided. If possible, all necessary corrections must be done in the original CO object.


Anyway, several times it's necessary to make these postings, and therefore we need to guarantee that the total impact in PL of those postings is 0 (or that they were posted to correct already some discrepancy coming from FI - example: from Z1K_Reconciliation).


Go to KE24 and search for manual postings (record type = Z):


All postings that we find should have a total amount 0:

  • In the same value field - transfer of characteristic (profit center, product, customer, etc)

  • In different value fields - transfer of value field (example below)





1) Check on CHEF_DUMMY

  • How to check:
    • KE24 with variant SPS_001 -> just need to add the relevant company codes
    • KE30 ZZZ-SOLV00 report -> check P&L lines with CHEF_DUMMY PrCtr
  • Goal: 
    • CHEF_DUMMY PrCtr needs to have balance 0 in all value fields end of the month. Take into account that the original posting and corrections may be done with different posting dates.
  • To reduce the number of future cases we should identify the reason for the CHEF_DUMMY PrCtr assignment. Most of the times it is due to missing PrCtr in the material master data (view General Plant Data / Storage 2 OR Costing1), so in this case it's necessary to address the topic to SU MAC (giving the material/plant/missing profit center) so that we can update the material master data.



2) Check on Activity1

    • How to check:
      • KE24 with variant SPS_002 -> just need to add the relevant company codes
      • KE30 ZZZ-SOLV00 report -> check P&L lines with empty Activity1(mkt)
    • Goal:
      • All headings requiring Activity1 detail must have balance 0 at the end of the month. Take into account that the original posting and corrections may be done with different posting dates. These headings can be found here.
  • To reduce the number of future cases you should identify the reason for which Activity1 was not determined. Most of the times it is due to:
  • Posting in COPA together with a common CCtr because the posting involves a G/L account defined in the FI PA transfer structure (cost element group XCS-FIPA)
    • You should decide either if you want to keep the CCtr or the COPA posting but not both and reclassify the posting.
      • If CCtr -> another G/L account should be used
      • If CO-PA -> remove the CCtr and include the basic CO-PA axes: material and plant -> PrCtr should be derived from the material
    • Soon we'll set a substitution in the system to eliminate these cases.
  • Common PrCtr (Cxxx) assigned to the material. Actions:
    • Correct the material master data and PrCtr assignment  (view General Plant Data / Storage 2 OR Costing1)
    • Reclassify the posting:
      • Manually KE21N (cancel original CO-PA doc + create manual document taking the original one as reference and update the PrCtr)











All Orders in KOC4 must be balanced




All postings done directly in COPA should be avoided. If possible, all necessary corrections must be done in the original CO object.


Anyway, several times it's necessary to make these postings, and therefore we need to guarantee that the total impact in PL of those postings is 0 (or that they were posted to correct already some discrepancy coming from FI - example: from ZWFA15P).


Go to KE24 and search for manual postings (record type = Z):

All postings that we find should have a total amount 0:

  • In the same value field - transfer of characteristic (profit center, product, customer, etc)

  • In different value fields - transfer of value field (example below)



3.5. I perform a direct CO-PA posting in PL (KE30), in case of impossibility to correct automatically the FI/COPA discrepancy



Important: Please note that the following amounts must be added to the result of the COPA report KE30 as they concern manual corrections:


  • Manual Postings in account 98350050 with cost center XXXX-9200 (XXXX stands for company code);
  • Manual Postings in COPA derivation accounts 98154199, 98258199 and 98254199;
  • MR11 postings in account 98150363 (documents beginning with  48*).



Manual Corrections via FI (Standard Method)

 

Some accounts are created to be used in manual accounting in COPA. These accounts are assigned in the field status group “Z033 - Purchase & Change in stock acc. COPA” that is, the profit segment fields need to be filled/used: customer, product, distr. channel, payer, ship-to-party and payer country. These accounts are created in CO with cost element category 1 and are customized in the automatic transfer of structure in COPA for direct posting  in FI:

Cost Element

Cost Element Name

COPA Structure

COPA Structure Name

98100199

NS COPA REGUL

VVB10

Net Sales Corr.

98120020

VAR. SELLING EXPENSES FREIGHT COST ON SALES COPA

VVC20

Freight (Prov)

98120120

VARIABLE SELLING EXPENSES -COMMISSIONS ASCE. CC

VVC10

Sales Commission

98120210

VARIABLE SELLING EXP - INSURANCES ON SALES COPA

VVC20

Freight (Prov)

98150364

VC - DIRECT TRADE WITH THIRD PARTIES COPA

VVD00

VC Variable Cost

98154199

CP ADJUSTEMENTS - COPA

VVD45

VB cc variances

98254199

CNP ADJUSTEMENTS - COPA

VVE45

FC cc variances

98258199

CNP DEPRECIATION - COPA

VVF45

Dep cc variances

98279199

CNP DIVERS ADJUSTEMENTS - COPA

VVE65

FC others

98333199

FAC ADJUSTEMENTS - COPA

VVI25

G&A adm expenses

98361199

R&D ADJUSTEMENTS - COPA

VVJ01

R&D gross cost


Posting Rules:

  • Manual documents with document type AD
  • Reversed on the following period if the flow is not complete
  • Items of the document: enter the most elements (plant, material, sales order) as possible allowed by the account to have the most accurate allocation of these corrections when analyzed. Check file Possible_Variances.xlsx tab “Example COPA Info Search” to see an example on how to retrieve the COPA data to be used in the posting.
  • Posting on “direct COPA” P&L accounts (more often cost valuation differences):If dedicated to a specific flow, report the elements of sales flow (material, plant, customer, sales domain) in the PA object; If more generic, some generic values (material, customer) may be used but the sales domain (sales organization, distribution channel, division) should be carefully chosen in order to allocate this cost to the right BU.

 

 

These generic values allow the corrections to be taken in account in Premier Pilotage.

Generally, division XH “non allocated”, 999930 for non EU customer or 999931 for EU customer, 77269 for generic material

Types of FI-COPA Adjustments:

Accounting stock corrections – Temporary Corrections Reversed in the following month.

Deliveries not billed:

  1. Some very specific cases may not be treated by transaction ZWFAT135 → Need to post a manual adjustment.
  2. Sales invoices posted on the closing period after ZWFAT135 process.
Stock variation adjustment account: 98350050 “FINISHED PRODUCT STOCK VARIATION-COST OF SALES ADJ” +  Cost center CCCC-9200 (statistical cost center for cost of goods sold)
Stock adjustment account: 37000109 “FINISHED PRODUCTS-ADJUSTMENT”
Debit / credit position depending on the correction


Correction of COPA cost of sales – Permanent Corrections not Reversed in the following month.

Posting using a FI document:

  • C.O.G.S. adjustment P&L account 98154190 “CP Adjustment CC” + Cost center CCCC-9200 (statistical cost center for cost of sales)
  • C.O.G.S. adjustment P&L account 98154199 “CP Adjustment – COPA” with direct posting in COPA “D45 VC CC variance”
 Credit/Debit depends on the type of correction (COPA increase or decrease)
 COPA segment parameters should be entered following those of the original flow

 

Posting Example (IECRA Transfer):

The customer code has been set as mandatory to guarantee the consistency of the analyses made in Premier Pilotage (BOXI). To allow generic postings, the following was defined for the sake of consistency and to avoid discrepancies between RCS PPE and Magnitude: 

  • “Dummy” customer codes : 999930 ( outside EU) and 999931 ( within EU ).
  • Generic “dummy material code” = 77269
    • division XH (unallocated )
    • Combined with an “unallocated” Distribution Channel which is linked to one IECRA (see the list in file RCS unallocated Distribution Channels.xlsx)   
    • corresponding commercial product 90032925

  

 

Important:

There are value fields in COPA that must not be used in cycles, because they are reserved for automatic accounts of logistical flows (see table on the right).

VVA01

Qty invoice

VVA02

Qty as is

VVA03

Qty in %

VVA04

Qty unit base

VVB00

B00 Net Sales

VVB20

B20 Add Net Sales Internal

VVB30

B30 Sales Industrial Invoice

VVB41

B41 Sales Adm&Com SD

VVB50

B50 Sales R&D Invoice

VVB55

B55 Sales Management Fees

VVC00

C00 Rebates

VVC05

C05 Cash Discount Customer SD

VVC30

C30 Foreign Import

VVD00

D00 VC Variable Cost

VVD01

D01 Variable Cost 1

VVC40

C40 Tax/Sale SD Cond


VVD05

D05 VC Process Order Variance

VVD47

D47 CP Ec/T030

VVD52

D52 CP Rev. CCR T030

VVD55

D55 VC Free 1

VVD90

D90 CP Integrated

VVE00

E00 FC Fixed Costs

VVE01

E01 FC Fixed Costs 1

VVE05

E05 FC Process Order Variance

VVE47

E47 CNP Ec/T030

VVD52

D52 CNP Rev. CCR T030

VVD90

D90 CNP Integrated

VVF00

F00 DEP Depreciation

VVF05

F05 DEP Process Order Variance

VVF90

F90 AMO Integrated

VVG25

G25 Bon&m/stock T030




3.6. I properly check the result of the posting

After correcting all differences, re-check the results in FI and in COPA to guarantee that the postings were correctly made, and that the difference doesn't exist anymore.


Also it's necessary to remark that, after the closure, all differences not corrected properly must be analyzed and corrected in the origin:

  • New materials should be costed before being used (delivery, production, billing)
  • New orders or WBS elements should have a settlement rule
  • New cost centers should be included in the assessment cycles
  • Blocked invoices in VFX3 should be processed everyday
  • Avoid returns with stock movements in different periods of the corresponding credit memos. 


For WP1 it might be useful to use the file below to see in detail the existing differences:

FI COPA CONTROL.xlsm


End of document.