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AC040 Cost Management and Controlling Enterprise Controlling Enterprise Controlling.

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Presentation on theme: "AC040 Cost Management and Controlling Enterprise Controlling Enterprise Controlling."— Presentation transcript:

1 AC040 Cost Management and Controlling Enterprise Controlling Enterprise Controlling

2 Overview of CO Components Profit center accounting CO CONTROLLING Profitability analysis Sales analysis of products and services Contribution margin Profitability analysis by organizational units Enterprise Controlling MC CO CONTROLLING Overhead and process costs Cost/Revenue elements Cost centers Internal orders and projects Cost allocation by sources

3 Master Data in Profitability and Sales Accounting Overhead Cost Controlling Product cost Controlling Product cost Controlling Cost object Profitability segment Profitability Analysis Profitability Analysis Profit Center Accounting Profit Center Accounting Profit Center Process Cost Center Internal Orders

4 Basic Concepts of CO-PA CUST. GRP. Sales regionNorth ProductProd1 Product groupElectronics customerCust1 Cust. grp Wholesale trade LandGermany Sales rep.Miller Characteristics Revenues800 Sales, discounts and returns100 COGS650 Value fields Revenues Sales, discounts and returns COGS Profitability segment Values REGION S N W PRODUCT GRP FoodBicy. Electr.

5 Types of Profitability Analysis in Operating concern M001 Account-Based Value Fields Revenues 1,000,000 Sales Deductions 100,000 -------------- Net Revenue 900,000 Material Costs 400,000 Production Costs 190,000 Production Variances 10,000 -------------- Contribution Margin 1 300,000 Material Overhead 50,000 Production Overhead 50,000 -------------- Contribution Margin 2 200,000 R & D 10,000 Marketing Costs 50,000 Admin. Costs 40,000 -------------- Contribution Margin 3 100,000 Costing-Based Cost/Revenue Elements 800000 Revenue 1,000,000 808000 Sales deductions100,000 -------------- Net Revenue 900,000 893000 Cost of Sales 690,000 231000 Price Variances 10,000 651000 R & D Costs 10,000 671000 Marketing Costs50,000 655000 Admin. Costs 40,000 -------------- Operating Profit 100,000

6 Operating concern M001 ALTKNPrev.acct no. BISMTOld mat. number KDGRPCustomer group KONDAPrice group KONDMMat.pricing grp KTGRMAcct asgnmt grp LAND1Country MTARTMaterial type PLTYPPrice list type PRODHProd.hierarchy STAWNComm./imp. code WW001Group of countries WW003Sales group WW004Sales office WW005Customer group WW006Customer area WW007Region WW008Raguired term of del WW009Key of valid conditi WW010Incoterms 1 WW011Incoterms 2 WW012Net value WW013Material tax WW015Batch number WW016Statist.mater.number WW017Land Characteristics Value fields Values

7 Operating concern M001 Value fields ABSMGSales quantity ERLOSRevenue STDPRStandard price VVDIF VVFI1FI VVKG1Net value kg VVP08Total payable VVP09Paid advance payment VVP10Guarant.flat ratePON VVP11Other costs PON VVP12Market-flat ratePON VVP13Freight PON VVP14Insurance-freightPON VVP15Insurance-credit PON VVP16FCO VVP17Sum PON VVP26Commision PON VVP27Claim compensation % VVP28Cost overrun % VVP29Cost overrun -amount VVP30Price-Internal setl% VVP31Price-Internal settl VVP32Output VAT VVP33Price-cost overrun% VVP34Price-Cost overrunAm

8 Operating concern M001 Value fields VVP39MTP VVP40Rebate perc./val. VVP41Rebate perc./qty. VVP42Rebate val./qty. VVP43Gross / price list VVP44Manual gross price VVP45Net price VVP46Net price manual VVP47Basic discount VVP48Additional discount VVP49Additional discount2 VVP50Discount excl. (man) VVP51Discounts add. (man) VVP52Discount val (man) VVP53Surcharge manual VVP54Surcharge manual % VVP55DA discount VVP56Manual gross price VVP58Cash discount VVP59Comm. Accr. perc/val VVP60Comm. Accr. val/qty

9 Profit Center Validity Period Basic Data Profit Center Company Code Assignment Address Data Communication Data

10 Profit Center – division in Mitas Organizational Profit centers Profit Center Product type Profit centers

11 Profit Centers in Mitas Profit Centers Industry Profit Centers Agro 3115 3 – BU Industry 1 – Plant 15 – Product/Goods group Plant 3 – off take products 6110 6 – BU Agro 1 – Plant 10 – Product/Goods group

12 Profit Center Assignments Cost center, businessprocess Cost object Internal order Sales order Profitability segments Asset Product order Profit centers Material Profitcenter

13 Planning and Planning Integration: Overview Introduction to Planning Planning in Cost Center Accounting using different Controlling methods Integrated Planning Cycle Planning With ABC

14 Copy Plan and Actual Data Plan data Copy: Cost Centers Profitability Segments.. Plan 2005 Version 1 Actual data Actual 2004 Plan data Plan 2004 Version 1 Revaluation

15 Integrated Corporate Planning SOPLTP Sales Activity input quantity Process Input quantity Activity price Process price Material Cost Estimate Profit Planning Sales Planning Strategic Procedure planned requirements Cost of goods manufactured / sold Cost center/ Activity type Template Bill of material Routing LIS

16 Planning Integration - Update Sales Plan/CO-PA Sales quantity Profit Planning Activity requirements Cost of goods sold Sales Planning/ Fore-casts Plan-IntegratedOrders Materialmaster Cost components Logistics Information System Sales quantity Product costing Production - PP SOP, LTP Cost Centers

17 CO- PA: Planning Sales Organization Time frame from … to... Version ProductQuantityRevenueCOGSIndustry Media Software Pharma 1000 5000 3000 4000 1000 2000 3000 800

18 Integrated Planning in Profit Center Accounting Sales100,000 Discounts 5,000 Cost of sales50,000 Marketing costs10,000 Administration costs15,000 …. Profit Center Plan Profitability Analysis LIS PC t Internal Order Cost Center

19 Transaction-Based Postings In CO: Contents Postings in Overhead Cost Controlling Postings in Cost Object Controlling Postings in Profitability and Sales Accounting Example Posting for Transfer Prices

20 Transferring Sales Order Receipts to CO-PA Quantity+ Revenue+ Bonus+ COS+ Quantity flow CO- PA (accrued) SD 1 1 Customer Order t Acct.CO-PA FI EC- PCA

21 Delivery and Billing X X X Revenue Customer Rebate X COS X Inventory Quantity+ Revenue+ Bonus+ COS+ 1 Sales order 2 Delivery 3 Billing Quantity flow CO- PA (costing-based) SD FI EC- PCA t Acct.CO-PA

22 Selling Goods and Services - with Sales Order Controlling Goods receipts External activities Invoice Billing Document Order Settlement Sales order Item 20 Installation onsite CO-PA Profitability Analysis CO Object CCtr Acty Allocation SD MM

23 Period-End Postings in CO: Unit Contents Overhead Cost Controlling Cost Object Controlling Actual Costing/Material Ledger Profitability Analysis Schedule Manager Reconciliation Ledger

24 Overview of the Data Flow in Profitability Analysis Cost and Revenue Element Accounting Overhead Cost Controlling Product cost Controlling Profitability Analysis Profitability Segments CO Cost of goods estimation Revenues Discounts Cost object CO- PA Cost Centers Internal Orders SD FI

25 Assigning Overhead Costs: Overview Process Cost Center Assessment Value Fields Administrative costs Direct/indirect activity allocation Order/project settlement Template Allocation CO-OM CO-PA Field service hours Marketing campaign Customer support Special deliveries

26 Assessment of Cost Center and Process Costs Assessment 400000 20,000 430000 30,000 50,000 630000 - 50,000 Cycle: Administration: + 50,000 CO-PA Cost center administration

27 Order Settlement to Profitability Analysis Invoice + x% CostsInvoicesOverheads Order CO-PA

28 Overview of the Data Flow to Profit Center Accounting Cost and Revenue Element Accounting Overhead Cost Controlling Product cost Controlling Profitability Analysis CO revenues Discounts Cost object EC- PCA Profit Center Accounting Processes Cost Centers Internal Orders FI SD

29 Balance Sheet Items in EC-PCA EC-PCA Online Assets Work in Process Inventory Values Down Payments Financial Accounting Assets Work in Process Down Payments Inventory Values Receivables Payables

30 Distribution/ Assessment VaVallueueFFllowowVaVallueueFFllowowlFl Profit Centers Sales Administration Profit Center Sports cars Period-End Closing: Distribution Profit Center Motor cycles EC- PCA Distribution and Assessment similar to Cost Center Accounting

31 Distribution/ Assessment in Mitas VaVallueueFFllowowVaVallueueFFllowowlFl Organizational Profit Centers  Sales  Administration Profit Center Tyre 2 Period-End Closing: Distribution/Assessment Profit Center Tyre 1 EC- PCA Overhead Distribution/Assessment to Product Profit Centers Profit/Loss Statement:  Revenues  Change of Inventory  Overhead Profit/Loss Statement:  Overhead

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