1. Global Cost Accounting
6.1- FPLC Global Design Presentation:
Global Finished Product Logistics Cost (FPLC) Design

2. Global Cost Accounting
FPLC Design:
Provides standards for managing FPLC across all businesses around the globe.
Uses SAP CO-PA module to simplify & standardize FPLC accounting & analysis needs (Reporting).
Addresses needs of different regions for handling the different components of FPLC costs differently, if needed.

3. Global Cost Accounting
Definition (from SAFE):
Cost incurred from the entry of finished, wrapped pallets or unit loads to the warehousing and distribution chain, until delivery of cases to the customer's receiving dock. (Non– Inventoriable Cost)

4. Global Cost Accounting
Basic Components of FPLC:
Warehousing Costs:
Warehousing Costs include receiving, handling, storage and management of finished product at producing plant warehouses, including product produced at other plants.
Inter-Site Freight:
Transportation cost to ship finished product from the producing plant to a different ship point or between ship points (e.g., between distribution centers).
Customer Freight:
Freight to move finished product to the customer from plants, warehouses, RDCs, or custom packers.

5. Global Cost Accounting
FPLC Data Flow: Warehouse Cost
Warehouse Cost
-Handling /Storage Expense at CC
-Allocation to TDCVAL CC
-Post Recoveries to CC / offset to P&L
at Category Level
-Calculate Variances (CC).
Move Variances from TDCVAL PC
to Category (release)
New Scenario for Handling & Storage
COPA
ProvidesWHS Recoveries based
on actual shipment volume from
SD times Mix-Adjusted Standard
GCF to ECCS / S1-SC
S1-SC /Customer Rev/BP&L

6. Global Cost Accounting
FPLC Data Flow: Transportation Cost
Transportation Cost
-Transportation at CC
-Allocation to TDCVAL CC
-Post Recoveries to CC / offset to P&L
at Category Level
-Calculate Variances (CC).
Move Variances from TDCVAL PC
to Category (release)
COPA
Provides Transportation Recov.
Based on actual shipment volume
From SD times Mix Adjusted Std
GCF to ECCS / S1-SC
S1-SC /Customer Rev/BP&L

7. Global Cost Accounting
General Logistics Cost:
Miscellaneous costs incurred in conjunction with the process of warehousing and distributing. These costs should be charged out based on a "peg rate" (standard rate multiplied by shipment volume) set at the beginning of the fiscal year. The peg rate may then be updated quarterly to reflect changes in cost expectations (if approved by the GBU Regional Category Finance Manager and the Regional A&FRS Cost Manager.)

8. Global Cost Accounting
FPLC Data Flow: General Logistics Cost
General Logistics Cost
-General Logistics Cost at CC
-Allocation to TDCVAL CC
-Post Recoveries to CC / offset to P&L
at Category Level
-Calculate Variances (CC).
Move Variances to BS at Cat. Level
COPA
Provides GLC Recoveries based
on actual shipment volume from
SD times Mix-Adjusted Standard
GCF to ECCS / S1-SC
S1-SC /Customer Rev/BP&L

9. Global Cost Accounting
Master Data - No Inventoriable Standards:
In parallel to the effort going on to calculate inventoriable standard costs, the non-inventoriable standards have to be calculated and uploaded into SAP.
The GBUs are responsible for calculating and passing the standard FPLC Rates to SAP-COPA. They will need to work closely with their CSL Organization to determine the right logistics related costs.
Importantly, these non- inventoriable standard costs must be calculated outside SAP and uploaded into SAP-COPA as part of the ‘fiscal year standard setting process’:
The standard GMC & FPLC rates are loaded into COPA as Condition Types.

10. Global Cost Accounting
GBU (Cost Forecasters/Analysts) own the following:
Submitting these standards to the COPA Accountant in the ‘Condition Type Rate Upload Tool’ (ZKXXP018) Upload Tool format.
Validate that the material as setup in SAP-COPA is accurate to the GBU’s forecast.
GBS (Cost Accountants / COPA Accountants) own the following:
Cost Accountant owns coordinating the Firm Forecast and Standard Setting Processes, including meetings between GBU & GBS. They also own working with the GBU’s to make sure they understand the non- inventorable forecasting process, due dates, and getting the rates from the GBUs and to the COPA Accountants.
COPA Accountants owns uploading the rates into COPA, then validating that COPA reconciles to the upload spreadsheet provided by the Cost Accountant. They also will monitor the volume postings weekly in COPA to ensure there are no missing rates. If a revaluation is required within COPA due to missing rates, they will perform this process.

11. Global Cost Accounting
GBS (Cost Accountants / COPA Accountants) own the following:
The Standard GMC Rate and the Standard FPLC Rates should be calculated and input into COPA on an annual basis. Corporate policy should govern when Mid-year adjustments to the standards are needed.
Access Sequences should be standardized across the GBUs. This standardization will help keep master data issue to a minimum while significantly improving data accuracy.
The GBUs and CSL Organizations own the Integrity and Accuracy of the GMC and the FPLC Rates.

12. Module Integration Supply Chain Client CRM Client CO CO COPA MM
=> Inventoriable Cost Estimates Calculated
=> Recipe & Resources Setup CO
Inventoriable Cost Estimates Stored
Mark & Release
Finished Product Cost Estimates
Inventoriable Cost Estimate Components
Material Masters
Accounting & Cost Views Only
Bill of Material
Material Masters
COPA
=> Mix-Adjusted Inventoriable & Non-Inventoriable Standard Costs MM
=> Bill of Materials & Material Masters Setup

13. Global Cost Accounting
COPA Introduction:
CO-PA Access real time data from transactional Systems enabling bottom up aggregation on multi-dimensions.
-Forecast Update
-NOS and Volume Data
CO-PA Supports the Legal Entity Books closing (e.g calculating journal entries).

14. Global Cost Accounting
CO-PA provides a Financial Data Strategy in two areas:
1.Financial Profitability Analysis
Brand P&L Actuals
COPA is the source of Revenue & TDC Mix-Adjusted at Brand Level.
Provides feedback to management on GCF Legal Entity books for Actuals Profit Proofing.
Enables Management reporting of the Legal Entity Books for profitability analysis by key dimension (brand, geography) versus the business plan.
Profit Forecast System
COPA is the source of Revenue and TMC and FPLC/GMC mix adjusted costs at Finished Product Code.
Data is provided to the forecast system to incorporate into the monthly Brand Profit Estimates

15. Global Cost Accounting
CO-PA provides a Financial Data Strategy in two areas:
1.Financial Profitability Analysis
Customer Revenue:
COPA module is designed to capture customer information and measures associated to all shipments and financial customer adjustments (providing customer information is entered), across the product hierarchy. This enables S1 customer revenue reports to be sourced from COPA.
Official Shipments:
COPA module is the official source of daily shipment reporting figures to Source 1 for countries integrated with SD Module.

16. Global Cost Accounting
CO-PA provides a Financial Data Strategy in two areas:
2. Cost Accounting:
CO-PA module delivers in conjunction with CO-PC (product costing) TMC and FPLC Standard Solution. (full picture of TDC Std Setting)
Enables the reconciliation of Standards of the products that the business Imports/Exports or sells. (Cost Estimates SC vs. CRM)
Provides Mix-Adjusted Std for GMC (Shipment based)
FPLC Standard accounting:
- Set up Standard Rates (high level to lower product hierarchy level)
- Provides Mix-Adjusted standards automatically upon shipment.
- Allows rates set up at Brand Code, TDCVAL, transportation type rather than one overall peg rate for the site.

17. Global Cost Accounting
CO-PA provides a Financial Data Strategy in two areas:
2. Cost Accounting
FPLC Standard Accounting:
- Provides means to a more budget based FPLC plan, meaning more accurate ICBP.
- Drives the business units to develop better annual business plans.
Plant/Cost Accounting:
- Enables Month-End Processes (e.g. COPS Reclassification, ICBP Calculation, etc).
- Enables Scorecard reporting for TMC & FPLC by site.
- Operational reports for standard TMC / FPLC analysis and month-end processes are available from the COPA module.

18. Global Cost Accounting
COPA – Introduction:
COPA’s specific importance to standard building is that all ‘non-inventoriable’ standards (or ‘rates’) need to be calculated outside SAP and uploaded into COPA, where they will be stored.
Non-inventoriable standards are ONLY stored in COPA.
These standards remain ‘frozen’ within COPA and used, as previously explained, to valuate product costs upon actual shipment of a finished product to a customer.
Non-inventoriable standards can be changed during the year if they meet the same threshold criteria as inventoriable standards.

19. Global Cost Accounting
Characteristics:
Characteristic Values are the criteria or multi-dimensional attributes within COPA that enable operating results analysis as well as the creation of Firm Forecast/Plan data. Some characteristics are hierarchical, and can be derived from one another (example: brand and category can be derived from product code).
Characteristic can be ‘product based’ or ‘shipment based’, as outlined below:
Product-Based Characteristics: These are product based attributes that relate to the product being shipped.
An example is the ‘product hierarchy’ which enables aggregation of product-based attributes like sales, shipment, or cost data according to a variety of reporting requirements and therefore of reporting levels.

20. Global Cost Accounting
Characteristics:
Shipment – Based Characteristics: These are attributes related to how or where the product is shipped.
An example is the ‘customer account assignment group (CAAG)’ which is a code within COPA that is derived from the ‘sold-to-party’. This is used to differentiate between affiliate and trade shipments. (IC, Ex/ SR (RE-SR), 01 (Trade).
Characteristic values are important to standard setting in that this value represents the product hierarchy level where the non-inventoriable rates are set.
An example is where all non-inventoriable rates are set at TDC VAL Product Hierarchy level, meaning that all shipped finished products within that TDC VAL will be charged the same rate upon shipment.

21. Global Cost Accounting
COPA – Introduction:
COPA captures information on a real time basis from the billing documents (from shipment system whether SD, COSMOS, or OSB) and aggregates this data on higher levels based on a pre-defined criteria (as in the product hierarchy).
For example, all the transactions in SD take place at a SKU level. COPA aggregates this data to a higher level such as TDC VAL, Category, Sub-Sector, Sector, etc.
Said another way, when an SD billing document is posted, the ‘non-inventoriable’ standards are combined with the ‘inventoriable’ standard rates within CO-PA, then multiplied by the shipment volume to “valuate” the TDC costs for that specific shipment.

22. Global Cost Accounting
Characteristic Derivations:
Characteristic derivation functionality makes it possible for the system to automatically derive unknown characteristic values if these are dependent on characteristics whose values are known. This means that even though a business may set their non-inventoriable standards at TDC VAL level, COPA will automatically ‘derive’ down to finished product code level upon shipment.
Derivation rules are valid for a specific timeframe. This parameter makes it possible for the system to handle future business changes like a reorganization and/or master data changes like profit center or product groups, etc. COPA will read these changes effective from the date specified in master data with no implications on historical data.

23. Global Cost Accounting
Condition or Condition Types:
A Condition Type represents one step in a Costing Sheet, and essentially represents a rate that is calculated by the Cost Analyst and then uploaded by the COPA Administrator into COPA at standard setting time.
COPA uses conditions and access sequences to calculate anticipated values called value fields (value fields are used for reporting purposes).
For example, cost components non- inventoriable standards like GMC, FPLC & PS ADMIN, which are not included within the Material Cost Estimates, need to be defined within COPA using conditions so that we get a total picture of TDC for the volumes shipped.

24. Global Cost Accounting
The standard GMC & FPLC rates are loaded into COPA as Condition Types.
Condition Types: Condition types are simply a rate per stat unit value that COPA will read during the valuation process. They can be maintained against many different characteristics and combination of characteristics.
Once the condition types have been successfully uploaded into SAP-COPA, the rates will be used to valuate volume postings upon shipment from the businesses Billing System.

25. Global Cost Accounting
Condition Types are important to the standard setting process because all non- inventoriable standards are uploaded into SAP COPA using condition types as the ‘cost component’ (or standard rate), at stat case value.
For example:
Condition Type Cost Component
ZCFR Customer Freight
ZIFR Interstice Freight
ZWHS Warehousing Cost
ZGLC General Logistics Costs
ZGMC General Manufacturing Costs
Reference the Global Cost Team space for more detailed information concerning Condition Types, including a full list of possible options together with detailed descriptions of each.

26. Global Cost Accounting
Value Fields hold the total value of a non-inventoriable standard (example is customer freight) for a specific product hierarchy level, based on COPA ‘mix-adjusted’ functionality.
Condition Types are loaded into COPA as standard rates, with each ‘type’ being mapped to its own ‘value field’ via internal COPA mapping tables.
COPA ‘mix-adjusted’ functionality calculates product hierarchy level standards through interaction of shipment volumes from the billing system with Condition Types (rates).
Reference the Global Cost Team space for more detailed information concerning Value Fields, including a full list of possible options together with detailed descriptions of each.

27. Global Cost Accounting
Currency Value Fields

28. Global Cost Accounting
The GMC & FPLC Rates will need to be Computed at a specific level in the Hierarchical Structure. The levels available in COPA are defined by the Access Sequences.
The Access Sequences define the level the rates will be maintained at. They are the characteristics that the condition types are loaded against.
Examples of ‘access sequences’ that the GBUs can select from are outlined below.

29. Global Cost Accounting
Access Sequence Examples:
Warehouse Costs
GMC
GLC
Ccode x Plant x Brand Element
Ccode x Plant x Brand Element
Ccode x Plant x TDC Val
Ccode x Plant x TDC Val
Ccode x Plant x TDC Val
Ccode x Plant x TDC Val x Cust AAGr
Ccode x Plant x TD
C Val x Cust AAGr
Ccode x Plant x TDC Val x Cust AAGr
Ccode x TDC Val
Ccode x Brand Element
Ccode x Brand Element
Ccode x Category
Ccode x TDC Val
Ccode x TDC Val
Ccode x Plant x Category
Ccode x Category
Ccode x Category
Ccode x Plant x Category
Ccode x Plant x Sector
Ccode x Ct
ry x TDC Val
Ccode x Planning Unit
Ccode x Sector
Intersite Freight
Customer Freight
Ccode x Plant x Brand Element
Ccode x Brand Element
Ccode x Plant x TDC Val
Ccode x TDC Val
Ccode x Brand Element
Ccode x Ctry x TDC Val
Ccode x TDC Val
Ccode x Planning Unit
Ccode x
Plant x Category
Ccode x Sector
Ccode x Plant x Sector
Ccode x Cust AA
Ccode x Planning Unit
Ccode x Ctry x Plant x Tzonegrp x Brand Element
Ccode x Sector
Ccode x Ctry x Plant x Tzonegrp x TDC Val
Ccode x Plant x Planning Unit
Ccode x Ctry x Plant x Tzonegrp x Category
Ccode x Ctry x CAAG x Category
Ccode x Ctry x SSKU
Ccode x Cust AAG x Category
Ccode x Ctry x Brand Element
Ccode x Ctry x Sector

30. Global Cost Accounting
Access Sequence Selection Guidelines:
Use an Existing Access Sequence as defined above.
The same Access Sequence selection should be employed per Rate across each of the GBUs.
WANT STANDARDIZATION where possible.
The access sequence selected will offer certain benefits, based on the level selected:
Lower-level rates provide enhanced accuracy.
Higher-level rates provide less on-going maintenance and reduced chance of missing a rates.

31. Profit Center Substitution
Global Cost Accounting
Profit Center Substitution
Business case:
In standard SAP, all SD bookings (ex. revenue and COPS bookings) are done to the profit center derived from the material master.
For P&G purposes, need to post shipments into P&L profit centers, per category / country sold to.
Material master profit centers however are at the level of TDC VAL / ship-from DC.
SD-COPA solution:
Special SD user exit during order entry substitutes the SAP material master profit center in the order with the corresponding P&L profit center.
Derivation is maintained in table ZVXXPCSUBS.
In COPA, P&L profit center is then mapped to a P&G profit center on GBU/Region level.

32. Global Cost Accounting
GBS X-Bundle Initiative : End-to-End
System Work Process Organization
(F&A/IT)
SourceOne Automated Brand P/L Reporting BIS/BIS
Customer NOS/CR Reporting BIS/BIS
Forecast Update - Actuals BIS/BIS
FPLC Scorecard Reporting BIS/BIS
CO-PA COPA Financials Data BIS & A&FR/ITBS
CO Cost Accounting (FPLC,Affiliate) A&FR/ITBS
FI General Accounting A&FR/A&FR
Realization Accounting
MSA Accounting
SD/OSB/COSMOS Shipping,Billing (Invoices/Credits) CL&FS/ITBS
Other (ex:Siebel) Customer Payments CL&FS/ITBS
Management
Reporting
CO-PA Financials
SAP Transactional
Integration

33. Source One Brand P/L always ties to the official company books (ECCS).
Accounting & CO-PA Data Flow
COPA Delivers Low Level Mgmt Reporting
To S1 (Brand, LE, Country, Customer,Profit Ctr)
CO-PA
SourceOne
Transactional
System Data Flow
Source One Brand P/L always ties to the official company books (ECCS).
The sum of the brand detail COPA data needs to equal the Legal Entity Books Category data.
Volume
Outside Sales, Sales Deductions,
TDC St’nds
CO-PA Financials
Brand
P&L
Financial
Forecast
Actuals
Customer
Analysis
GCF
EC-CS
Supply Chain
FPLC S’card
Legal Entity
Books Data Flow
EC-CS
ECCS Delivers High Level Mgmt
Reporting to S1 (Category Level)

34. Global Cost Accounting
Finance & Accounting Systems Vision
Using SAP Design – Deliver Financial Information Via Two Paths:
Global Core Financials (G/L) - High Level Information
Delivers Accounting by Legal Entity and Profit Center
High Level Management Reporting (Category Level)
CO-PA (Controlling-Profitability Analysis) – Lower Level and Segment Information
Source of Realization, Sales Deductions and
TMC/FPLC Mix Adjusted Standards by Key Dimension
Brand
Country (Geography)
Customer
Legal Entity
Profit Center
Used to Close the Legal Entity Accounting Books – Cost Accounting & Other
Integrated with SAP Transactional Modules (Sales Distribution/OSB/COSMOS,
CO-Cost Accounting, FI-General Ledger, Sales, MSA)

35. Global Cost Accounting
Business/Management Reporting
Integrated/Automated Brand P/L (+ 7 w/day)
Actuals for Financial Forecast Update (+2 & +7 w/day)
Week One “NOS” (+2 w/day)
CO-PA Financials (+2 & + 7 w/day : TBD)
CO-PA Financials Cube by Region
Sales Realization/Net Trade Sales (WE)
Customer Analysis (+7 w/day)
Customer Revenue (LA)
Customer NOS/MDA (Future)
Mix Adjusted FPLC for Scorecard Reporting (+ 7 w/day)
Cost Accounting Solution
FPLC/GMC Standard Cost Accounting
ICBP Generation (Western Europe)
Affiliate Accounting and Mark-up Reversal
COPS Reclassification
Other
Shipment Reporting (Replaced by MDO Release 5.5)
Corporate Restructure Pricing Analysis

36. Global Cost Accounting
COPA Reconciliations:
Master Data reconciliation (COPA Adminstrator/Cost Accountant/G/L Acct)
Material Master Data – Cost & Accounting Views (TDCVAL Profit Ctr)
Material Cost Estimates Reconciliation
PCSUBS Table
Shipment Volume with Transactional Systems
SD/OSB/COSMOS Billing (G/L Revenue) To CO-PA Volume comparison of totals by company code / FP code (COPA Acct/CLS.)
Goods Issue (G/L COPS) to SD/OSB/COMOS Billing (G/L Revenue) at the transaction level (CSL/Cost Accountant/CO-PA Acct)
FPLC Recoveries (FPLC Accountant/COPA Accountant)
CO-PA Calculation To Supply Chain-Cost Accounting (G/L Journals) comparison by legal entity / cost component (e.g. Warehouse)

37. Global Cost Accounting
COPA Reconciliations:
Mix Adjusted Total Delivered Cost (COPA Accountant/Cost Accountant)
CO-PA Reconciliation To Supply Chain-Cost Accounting (G/L COPS) comparison by legal entity / profit center of total TMC, total GMC, total FPLC
FI CRM Box (COPA Accountant/G/L Accountant)
CO-PA ‘Realization’ Reporting To FI-Sales Accounting (G/L Accounts)
comparison by legal entity / profit center at the major account code level (Outside sales, Sales deductions…)
SAP CO-PA/SourceOne CO-PA Financials (COPA Accountant)
System to System Reconciliation of Data Submitted vs Data Received