1.0 Overview
The P&L (Profit and Loss) application it’s part of the Finance domain using data from SAP systems, non-ERP system and BFC information based on data from COPA (Controlling - Profitability Analysis) a component from SAP CO module. P&L application provides reports fully aligned with BFC structure (BFC Headings) down to REBIT/REBITDA able to analyze P&L starting from the BFC view (Company/Activity) and ability to drill down to Customer Material level. A profit and loss statement (P&L) is a financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time, usually a fiscal quarter or year. These records provide information about a company's ability – or lack thereof – to generate profit by increasing revenue, reducing costs, or both. |
Target Users: GBU controllers, Site controllers and Marketing and Sales. |
VERSION | DATE | MODIFIED BY | DESCRIPTION |
0.01 | 24.07.2023 | Inês Vilares | Initial draft |
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2.0 Business Process
The P&L information is generate by the SAP Controlling (CO) module. The process starts in the controlling part where we don't have the data organized to be aligned with the guidelines from the oficial report tool. In this way, Solvay uses the Business Financial Consolidation (BFC) tool to have the data in compliance and generate the oficial reports to the company. For this, all the operating financial data are stored in SAP systems and exist and interface to extract data to be translated to BFC format and generate the file to upload in BFC. Also, Solvay uses the SAP Business Warehouse (SAP BW) tool to extract reports with data coming from the transactional systems (mainly WP1 & PF1) that enable the compay to have the adjustments/enhacement for some fields/calculations to allow the users to realize their analysis on a more efficient way and to perform checkings/controls on the P&L data in alignment with BFC struture. In SAP BW, you can integrate, transform, and consolidate relevant business information from productive SAP applications and external data sources. SAP BW levereged the P&L in the following ways:
Overview of the business process in P&L:
In the process the data is in the SAP CO module where we have the different phases until the information has the struture aligned with BFC to become in the end the final data to be reported. Cost objects controlling: Product Costing: CO-PA: |
3.0 Application Feature Overview
Below we have all the workbooks available:
| Reports | Definition | Prompts (some fields can be for multiple selections or a single value) | BW Workbook Query | Query Technical Name |
|---|---|---|---|---|
| P&L Query | In a single report, the P&L of all legal entities of the GBU are displayed. The user can analyze the different KPI's (e.g. Net Sales, Contribution Margin, EBITDA, etc) and check the costs and sales for the company or companies depending on the selection of the user. It's possible to analyze the data for one month or more. | Mandatory fields:
Optional:
| BW_WBK_PL_0001 | BW_QRY_MVCOPA01_0001 |
| P&L Monthly Query | In a single report, the P&L of all legal entities of the GBU are displayed. The user can analyze the different KPI's (e.g. Net Sales, Contribution Margin, EBITDA, etc) and check the costs and sales for the company or companies depending on the selection of the user. In this report the user will see the data not for a specific month but for all months for the year selected in the prompts. Also the user can check the data by Quarter. If no currency is selected, no conversion is applied and data is extracted in local currency. For month 06/2018:Conversion will be the average exchange rate from 1 to 07 2018 – Average exchange rate from 1 to 6 2018); | Mandatory fields:
Optional:
| BW_WBK_PL_0002 | BW_QRY_MVCOPA01_0002 |
| P&L Monthly Query (Month Selected) | Same layout and fields as the P&L Monthly Query but the user only can select one month for the analysis. | Mandatory fields:
Optional:
| BW_WBK_PL_0009 | BW_QRY_MVCOPA01_0008 |
| P&L Reconciliation Query | P&L report presenting information about the costs and revenues, different KPI's for the comparison between the YTD Actual BW values and BFC Pack amounts. Ask Ludovic for FC Conso | Mandatory fields:
Optional:
| BW_WBK_PL_0003 | BW_QRY_MVCOPA01_0003 |
| P&L Query - Period Comparison | The report show the P&L information based in period 1 and period 2 to perform a comparison for actual data for the selected periods. The periods can be just one month or a range of months. | Mandatory fields:
Optional:
| BW_WBK_PL_0011 | BW_QRY_MVCOPA01_0006 |
| P&L Fixed Costs analysis | This represent only the measures related with fixed costs with the respective heading in BFC to see the values by default per GBU for one or more companies. | Mandatory fields:
Optional:
| BW_WBK_PL_0008 | BW_QRY_MVCOPA01_0001 |
4.0 Functional Specification
4.1 General Data/Calculations
For these reports, it’s important to understand some general concepts which are transversal to all the reports which allows the users to work with the reports in the same way as the SAP system and BFC tool.
| Consolidation View | The query takes the integration rate of the company and the partner from a table managed by GAR (Group Accounting Reporting).
The formula to retrieve the consolidated sales is in line with BFC: Consolidated Sales = Amount * Max [ 0, Integration Rate of CY (tingsoc) - Integration Rate of Partner (tingpart) ] Internal Sales = Amount * Min [ Integration Rate of CY (tingsoc), Integration Rate of Partner (tingpart) ] The integration rate of the partner is managed on the TRADING PARTNER. For specific cases some external customer must be considered as internal for certain company code (joint venture for example) . For cases the Partner integration rate is taken at the crossing Sold To/Company code. In this way, the user has 4 options:
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|---|---|
| GBU Assignment | The concept for GBU doesn't exist in SAP but it’s a requirement to have in BW since in BFC we have this definition. This GBU assignment is different for WP1 and PF1 and it will be explain in detail in the Process Definition section. |
| Exchange Rate | The application BW P&L is using the Cumulated Average Rate (exchange rate type C) from BFC. Values can be checked In the finance team site. Under Exchange Rate. "Moyen / Average": https://aodocs.altirnao.com/?locale=en_US&aodocs-domain=solvay.com#Menu_listDoc/LibraryId_QLsALxhAuXNKLSz74H/ViewId_QLsANWb3lkRIe5nnjN/Filter_%257B%2522QLsALAy014DXTQRuXH%2522:%25220B0Km5zvG_rngN2p2YTBvSjEtSjQ%2522%257D Or in the Solia CICC Online, Financial And Credit Tools: http://solia.solvay.com/irj/portal/CICCOnline_FinancialAndCreditTools Definition for ech Exchange Rate: https://wiki.solvay.com/display/ISAPPSUP/Exchange+rates P&L Exchange: https://wiki.solvay.com/pages/viewpage.action?pageId=303006136#P&LExchangerates-BFCMethodology P&L Monthly exchange rates: If no currency is selected, no conversion is applied and data is extracted in local currency. For example: month 06/2018: Conversion will be the average exchange rate from 1 to 07 2018 minus Average exchange rate from 1 to 6 2018); |
| PRS Concept | The PRS is one dedicated SAP environment (based on PF1) whose aim is to unify some structural information as Master Data information for customers, vendors, company codes, etc. For this, depending on each master data we are referring to, we have specific tables created to maintain the data and have the configuration from source systems to BFC definition and alignment. |
| Value Fields concept | CO-PA is an hypercube (like a pivot table in excel) where figures are posted to value fields. Value fields are mapped to BFC accounts in the interface tables. |
| Annual Closing | Each end of year, the main BW master data (about the structure) which are not time-dependent need to be frozen = no more loading from ECC or flat file on these main master data. To avoid the impact of the new evolution scheduled for next year on the yearly closing a freeze is applied to block the loading to allow the yearly closing period with the same scope done for the year and not with inputs for next year, for some master data, the loading are freeze in the middle of December until end of January. So when there is a new organization, historical data is restated in BW (not in SAP and BFC). |
4.2 Process Detail
4.2.1. Report/Process Definition
| Domain | Finance |
|---|---|
| Application | BW reports under P&L folder |
| Provider | MVCOPA01 (main P&L data) |
| Existing Documentation | https://wiki.solvay.com/pages/viewpage.action?pageId=20886860 https://wiki.solvay.com/pages/viewpage.action?pageId=20882904 |
XXX |
GBU Assignment
See below the logic for WP1 and PF1
WP1 Logic:
An IECRA is the combination of:
- a division: groups of similar products or product lines produced with the same technology.
- and a distribution channel: channel through which saleable materials or services reach the customer.
IECRA are grouped into CDPRF (=Profit center carat) - A CDPRF corresponds to the "Activity 1" in BFC
CDPRF are grouped into ENTRP (enterprise codes) - The ENTRP corresponds to the "Group of Activities" in BFC
ENTRP are then grouped into ZSECT - The ZSECT code corresponds to the GBU in BFC
You can display the structure with WP1 - Report ZWFAR571 - Reporting structure axes
Determination of the IECRA in COPA (KE30 - Profitability report)
Depending on information available in the posting, the determination of the IECRA differs:
For sales & standard costs of goods sold
The IECRA is determined with the combination of:
- The division and a the distribution channel = DV x DC
Example: The division of the material code 110778 Geropon is TN (MM03 - Display the Division) In the sales order to the customer 2025815 CATALITE CO., LTD, the distribution channel is 10 Emulsion/Polymers (VA03 - WP1 : Check the Sales organization) The combination TN x 10 is assigned to the IECRA01126 (WP1 - Report ZWFAR571 - Reporting structure axes) |
For purchase price & process orders variances + Revaluation
There is a unique link Profit Center-IECRA
Usually the last 4 digit of the profit center is equal to the last 4 digits of the corresponding IECRA.
Example: The profit center 8026-M0449 is assigned to a material code 110778 in the plant 8026 (view "Costing 1" in MM03) The profit center 8026-M0449 is linked to the IECRA00449 (WP1 - ZWFAI052 - Display profit centers). All variances related to the material code 110779 in the plant 8026 are assigned to the IECRA00449 in COPA. |
For cost centers
Costs posted in a cost center are assigned to the P&L through an assessment cycle that is maintained in KEU3 - Dislay actual assessment to CO-PA.
Example: The cost center 8026-7000 is assessed to the IECRA00449 in the Assessment cycle 8026PA (ZWFAR600 - Cycle master data extraction) |
PF1 Logic:
In PF1, the determination of the business structure is done in the P&L (KE30 - Profitability report) using the profit center of the COPA posting.
The following rule is applicable when the codification of the profit center starts with a D or a F. When the code of the profit center starts with another letter (ex: S, E or C), it can not be allocated to a business. |
When the code of the profit center starts with D or F, the system looks at the Profit center name in english.
It can be displayed with KE53 - Display Profit Center
Example: The name of the profit center F47ABBXXE1 is 747 ABB 0227E |
The system takes the position 2 & 3 of the Profit center name. It corresponds to the reporting division.
Example: The reporting division of the profit center F47ABBXXE1 is 47 |
In some cases, the "reporting division" is replaced by the "converted division". It is done using the exception table ZZR_REPO_DIV_EXC that is maintained at company code level.
Example: In the company code 0125, the reporting division 47 is replaced by the converted division 59 In other companies, the reporting division remains 47 |
The activity 1 is determined with the table ZZF_BFC_DIV_COVV using the original or converted reporting division.
Example: The division 47 corresponds to the BFC Activity 1 = 47 |
The group of activities is determined with the table ZZR_REPO_DIV using the original or converted reporting division.
Example: The division 47 corresponds to the BFC Group of activities = SDERI |
The GBU is determined using the group of activities with the table ZZR_REPO_SBU
Example: The group of activities SDERI belongs to the GBU SD Soda Ash & Derivatives. |
Partner Activity
Identify the business to which the amounts are allocated in the Solvay partner company in cross-company flows. See below the different logic for WP1 and PF1.
Determination of the partner activity in WP1
In WP1, a partner activity 1 / group of activities / GBU is done when the movement type in COPA (KE30 - Profitability report) is equal to:
- 01 - vente intra cdp
- 10 - vente inter entrepr.
- 13 - Vte OMC zone EUROPE
- 15 - vente inter cdp
If there is no movement type, no partner activity 1 is determined.
Depending on the movement type, the program will look at different tables until it find the right correspondance as detailed below.
If there is a missing entry in a table, contact SBS support.
01 - vente intra cdp
The partner activity 1 is the same as the activity 1
In case there is no activity 1, the partner activity 1 = ZZ01 |
10 - vente inter entrepr.
1. Table ZWFAT176
BW starts by looking at the table ZWFAT176 - FC – company code/IECRA/company/Ship-to (mvt 10)
If it finds the combination Company Code x IECRA x Trading partner x Ship-To Party then the partner activity = GBU = 00
Ex: the combination 3865 x IECRA01169 x 4274 x 85392 = BFC Partner Activity CH + 00 = CH00
2. Table ZWFAT118
If no combination can be found in the table ZWFAT176 then the system looks at the table ZWFAT118 FC – company code/enterprise/company/PRCOM (mvt 10)
If it finds the combination Company Code x Enterprise x Trading partner x Commercial product then the partner activity = GBU = 00
3. Table ZWFAT119
If no combination can be found in the table ZWFAT118 then the system looks at the table ZWFAT119 FC – company code/enterprise/company (mvt 10)
If it finds the combination Company Code x Enterprise x Trading partner then the partner activity = GBU = 00
Ex: the combination 3865 x ENTRP00046 x 4274 = BFC Partner Activity CH + 00 = CH00
4. Table ZWFAT113
If no combination can be found in the table ZWFAT119 then the system looks at the table ZWFAT113 FC - ENTERPRISES
If it finds the combination Company Code x Enterprise then the partner activity = GBU = 00
If no combination can be found in the table ZWFAT113, then the partner activity 1 = ZZ10 |
13 - Vte OMC zone EUROPE
The partner activity 1 = MZ00
15 - vente inter cdp
1. Table ZWFAT116
BW starts by looking at the table ZWFAT116 - MAGNITUDE - company code/partner IECRA/comp/PRCOM (mvt 15)
If it finds the combination Company Code x IECRA x Trading partner x Commercial product then the partner activity = MGN Market
2. Table ZWFAT117
If no combination can be found in the table ZWFAT116 then the system looks at the table ZWFAT117 FC - company code/partner IECRA/company (mvt 15)
If it finds the combination Company Code x IECRA x Trading partner then the partner activity = FC Market
3. Table ZWFAT113
If no combination can be found in the table ZWFAT117 then the system looks at the table ZWFAT113 FC - ENTERPRISES
If it finds the combination Company Code x Enterprise then the partner activity = FC Market
If no combination can be found in the table ZWFAT113, then the partner activity 1 = ZZ15 |
Overview - determination of the partner activity in WP1
Determination of the partner activity in PF1
Overview - determination of the partner activity in PF1
GBR Fields:
This is done via transaction ZPL_FILE in WBP. to be confirmed
Aero fields:
UPIS- Unrealized Profit in Inventories:
4.2.2. KPI's/Calculations/Indicators
Indicators available:
- XXX
- XXX
Indicatores/KPI's | Definition | Calculation/Extraction of data |
|---|---|---|
5.0 Non-functional Descriptions
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.
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
Closing Time:
Outside of Closing: the reload of data is 1x/ day during in the night