General presentation

Objective of the application

Manufacturing VC query (QV_BW_QRY_CPCOPC04_0001) is one of the components to calculate the FL (Forward-Looking) ICM.

The Variable Cost (VC) of a product, used to calculate the ICM (Integrated Contribution Margin). is the sum of Raw Materials + Packaging + Tolling + Utilities costs.

We bring these detailed costs from SAP from the BOM (Bill of Material).

The BOM brings, for a given Finished Product/Plant/Month, the detailed list of components with the corresponding quantities and costs.

In the query, we calculate the FL Variable Cost for projected months, using the forecasted prices for Raw Material and Energy (input by the users in IP workbooks). If no forecast is found, then we extrapolate last Actual price to the future months.

Tool Leader + IT leader of the application: 

Usage information

History

Roles & Access

Roles and access

List of application role + menu role  and explanation if we have several applications role with specials rules.

Authorization variables

List of authorization variables mandatory for the application.

Dataflow overview

There is one Composite Provider (CPCOPC04) containing 2 DSOs:

• ABCOPC06 - WP1 
• ABCOP06B - PF1

BOM data flow

First step to calculate Manufacturing Cost is to load the BOM.

It is loaded from WP1 and PF1 in different data flows.

WP1 data flow is a technical replication of the old BOM query used by Novecare (QV_BW_QRY_CPCSPR02_0001). We select all the finished products sold in the past 24 months (DTS_PU_RM01) and do the BOM explosion, level by level (via lookup in ODS_PCP1) in a BW routine.

PF1 data flow is totally new for Pricing Project and uses a table generated in PF1 (ZCO_PRICE_RM). The BW flow is more straight-forward because the logic of the BOM explosion resides in PF1 and there is not much transformation of data on BW side (only transposition from columns to rows). On the other hand, we don't have all the level of detail as in WP1.

The BOM data from both ERPs is then harmonized in CV_FMCO_BOM to be consumed by the Manufacturing Cost CVs.

(ABCOPC05 is an intermediate DSO put in place to correctly aggregate the prices from WP1 as we remove some characteristics to send to Manufacturing Cost CV).

There are 2 different BOM queries (not used directly in Pricing dashboard, but can be used to check the BOM data with all the available granularity)

• QV_BW_QRY_CPCOBOM1_0001 - for WP1  
• QV_BW_QRY_CPCOBOM2_0001 - for PF1 

You can find the dimensions of each query here:

Granularity of the BOM

From WP1 (Novecare), each record in the BOM is an individual component, which is either a Raw Material (C_BOMCPT) or an Activity Type (0ACTTYPE).

From PF1 (SpP), we don't have the same granularity. Only the critical raw materials are detailed (with quantity and price). This is what we call SIMPLE version.

Then we have some "buckets" that aggregate the costs as follows:

• OTHER_RM - Sum of the costs of the non-critical raw materials
• OTHER_PK - Sum of the cost of Packaging Materials
• OTHER_UTI - Sum of the cost of Utilities
• OTHER_TOLL - Sum of the cost of Tolling

Integration with Forecast 

Forecast prices are saved in following ADSOs:

• ABCOPC01 - FL - Raw Mat - Planification
• ABCOPC10 - FL - Energy - Planification

Then these DSOs are used in CV_FMCO_MAN_COST_RCS

Raw Material Forecast integration:

Then same logic for Energy Forecast

"Buy & Sell" products (Novecare)

These are products that the GBU buy and re-sell, and they have no BOM in SAP.

They are identified in Critical Raw Material Master Data C_FLRMAT, with “Critical flag” (C_FLRMATF) =  “B” (No BOM)

We create a "virtual" BOM in BW assigning the same material code as both Finished Product and Raw Material, with the whole quantity of the lot size (1000 KG).

This is done with 2 different Transformations into ABCOPC06 (WP1 only):

• TRSF: ABCOPC01 -> ABCOPC06

Here we get from ABCOPC01 the forecast prices for Buy & Sell products.

• TRSF: ODS_PCP9 -> ABCOPC06 

Here we get the actual price from P&L. query QVSBS_QRY_MVCOPA06_0001 (technically we take data directly from ODS_PCP9 field C_MVR_CP).

We adjust the price to a lot size of 1000 KG and also convert the price to EUR using CAR3 exchange rate.

Also in this transformation, we extrapolate Actual price for the future 12 months, in case no forecast exists in ABCOPC01. 

"Make or Buy" products (SpP)

The relevant raw materials for "Make or Buy" process are marked in Critical Raw Material Master Data C_FLRMAT, with “Critical flag” (C_FLRMATF) = “I” for internal and “E” for external.

In ABCOPC17 we find the adjusted ratio (K_ADJRAT) to be applied into the raw material forecast prices. This ratio is stored by quarter.

In CV_FMCO_MAN_COST we read data from ABCOPC17 joining with CALMONTH  to extrapolate the months in each quarter and copy the adjusted ratio in each month.

The adjusted ratio is applied to the forecast price to get an adjusted price (CC_ADJ_PRI) to calculate the adjusted cost (CC_ADJ_COST).

Then in TRSF: DTS_CV_FMCO_BOM_FORECAST -> ABCOP06B we take the adjusted cost in case an adjusted price exists.

The adjusted price can be seen in Manufacturing query but it's hidden by default.

You can find FL-ICM overall architecture here:

Functional and Technical rules on Workbench + Reporting

Rules & Explanations

Novecare (in WP1) works with Standard Cost.

Beginning of month M, we have the cost for month M.

Specialty Polymers (in PF1) works with Actual Cost.

Beginning of month M, we have the cost for month M-1 (last closed month).

In order to have a common view, for a unique Running Period, this is the way we generate data in Manufacturing Cost query.

Note that for Novecare (WP1), there is a month lag in the Forecast price for the projected months (for example, April Forecast is calculated with the price from March).

2 different calculation views were created as we can only filter a single period to read BOM data, so in each CV, Run Period is calculated differently:

CV_FMCO_MAN_COST_RCS (WP1)

RUNPER is equal to FISCPER from DTP (used to extract BOM)

CV_FMCO_MAN_COST (PF1)

RUNPER = FISCPER from DTP +1

For example: to generate RUNPER 03/2022

DTP from WP1 with  FISCPER = 03/2022 (to extract BOM data from 03/2022)

CV will generate RUNPER 03/2022.

DTP from PF1 with FISCPER = 02/2022 (to extract BOM data from 02/2022)

CV will generate RUNPER 03/2022.

Dependencies with other applications

Data loadings

Info providers and objects loaded

Process chain PC_COPC_10 scheduled monthly on CD7 (calendar day 7)

Loading frequency

Monthly on Day 7

Average performance

Record Keeping

Reporting

Main queries

Manufacturing Unit Cost query : QV_BW_QRY_CPCOPC04_0001

Main functionalities

It combines BOM (Bill of Material) data for Actuals + Raw Material Forecast.

Global properties

Variables

Definitions

Variable Sequence

Filters

Key figures

Characteristics

Broadcast