1 Introduction

25

1.1 Basic Controlling Functions

29

1.1.1 Goals of Controlling

29

1.1.2 Cost Accounting in the United States

31

1.1.3 Standard Costs and Actual Costs

32

1.1.4 Investment and Project Controlling

33

1.1.5 Lean Accounting

34

1.2 Essential Record-Keeping Functions

34

1.2.1 Record Keeping by Cost Center

36

1.2.2 Record Keeping by Order

39

1.2.3 Record Keeping by Project

40

1.3 Managing Close and Valuation Processes

41

1.3.1 Valuation of Goods Movements

42

1.3.2 Work in Process

42

1.3.3 Scrap

42

1.3.4 Work in Process for Projects

43

1.4 Preparing Budgets and Planning

44

1.4.1 Driver-Based Cost Planning

44

1.4.2 Driver-Based Cost Planning among Cost Centers

46

1.4.3 Budgeting

47

1.5 Process Analysis and Internal Controls

49

1.5.1 Master Data Controls

49

1.5.2 Workflow

49

1.5.3 Process Controls

50

1.6 Summary

50

2 Reporting

53

2.1 Cost Center Line Items

54

2.1.1 Classic Cost Center Line Item Report

54

2.1.2 Simplified Cost Center Line Item Report

63

2.1.3 Totals Records for Cost Centers

65

2.2 Order Line Items

66

2.3 Product Costs: Itemization

71

2.4 Product Costs: Cost Objects

76

2.4.1 Product Cost by Order

77

2.4.2 Product Cost by Period

80

2.4.3 Product Costs by Sales Order

82

2.5 Material Ledger

85

2.6 Profitability Analysis Reports

88

2.7 Summary

95

3 Master Data Owned by Controlling

97

3.1 How to Set Up Cost Centers

98

3.1.1 Responsibility for a Cost Center

100

3.1.2 Embedding the Cost Center Design in SAP ERP

104

3.1.3 Ensuring that Cost Center Expenses Are Handled Correctly

106

3.1.4 Cost Center Hierarchies

108

3.1.5 Enterprise Organization

115

3.1.6 Reporting of Cost Center Master Data

115

3.2 Internal Orders

117

3.2.1 Internal Orders and Cost Centers

121

3.2.2 Settlement Rules for Internal Orders

122

3.2.3 Statistical Internal Orders

124

3.2.4 Order Groups

124

3.2.5 Reporting Order Master Data

125

3.3 Statistical Key Figures

127

3.4 Activity Types

131

3.4.1 Direct and Indirect Activity Allocations

133

3.4.2 Settings for Activity Price Calculation

135

3.4.3 Activity Type Groups

136

3.4.4 Reporting Activity Type Master Data

136

3.5 Secondary Cost Elements

137

3.5.1 Cost Element Groups

140

3.5.2 Reporting on Cost Element Master Data

141

3.6 Product Cost Collectors

143

3.7 Cost Object Hierarchies

145

3.8 Maintenance Issues

147

3.8.1 Time-Dependent Fields

148

3.8.2 Creating Hierarchies for a Specific Time Frame

149

3.8.3 Status Management

151

3.9 Change Requests for a SOX-Compliant Master Data Process

152

3.10 Summary

156

4 Master Data for Which Controlling Is a Stakeholder

157

4.1 Material Masters

159

4.1.1 Basic View

161

4.1.2 Accounting View

162

4.1.3 Costing Views

166

4.1.4 MRP Views

169

4.1.5 Sales View

169

4.1.6 Batches

170

4.2 Customer Masters

171

4.3 Bills of Material

173

4.3.1 Quantity Definition

176

4.3.2 Co-Products and Byproducts

176

4.3.3 Recursive BOMs

179

4.3.4 Configurable BOMs

180

4.4 Routings

183

4.4.1 Types of Routing

183

4.4.2 Operation Values

185

4.4.3 Operation-Level Costing

187

4.5 Work Centers and Resources

188

4.6 Procurement Alternatives and Mixed Costing

190

4.6.1 Internal Processing

191

4.6.2 External Procurement

192

4.6.3 Plant-to-Plant Transfer

192

4.6.4 Subcontracting

193

4.6.5 Mixing Ratios

193

4.7 Projects

194

4.7.1 Work Breakdown Structure Elements

195

4.7.2 Networks and Network Activities

196

4.8 Investment Programs

198

4.9 Primary Cost Elements and Profit and Loss Accounts

201

4.9.1 Chart of Accounts

202

4.9.2 Controlling and the Financial Accounts

204

4.10 Setting Prices for Product Costing

207

4.10.1 Setting Standard Costs for Raw Materials

208

4.10.2 Balance Sheet Valuation

211

4.10.3 Calculating Actual Costs

212

4.10.4 Cross-Company Costing

213

4.11 Summary

214

5 Planning and Budgeting

217

5.1 Complete Sales Plan in a Manufacturing Environment

219

5.1.1 Sales and Operations Planning

221

5.1.2 Cost Center Planning

229

5.1.3 Calculating Standard Costs for Products to Be Manufactured

256

5.1.4 Profitability Planning

271

5.2 Planning and Budgeting for Investment Programs

273

5.2.1 Investment Program

273

5.2.2 Overall Plan

274

5.2.3 Cost Element Planning

276

5.2.4 Budgeting

279

5.2.5 Displaying and Changing a Budget

282

5.3 Summary

285

6 Actual Postings

287

6.1 Integrated Process Flows: Buy, Make, and Sell

287

6.1.1 Procure to Pay

288

6.1.2 Plan to Manufacture

297

6.1.3 Order to Cash

310

6.2 Distribution of Usage Variances

318

6.2.1 Capturing Physical Inventory Documents

319

6.2.2 Distribution of Usage Variances

320

6.2.3 Distribution of Activities

322

6.3 Integrated Process Flows: Other Logistics Scenarios

324

6.3.1 Product Cost by Order

324

6.3.2 Product Cost by Period

330

6.3.3 Product Cost by Sales Order

334

6.3.4 Project Controlling

339

6.3.5 Controlling for Maintenance and Service Orders

344

6.4 Corrections or Adjustment Postings

347

6.4.1 Reposting Line Items

348

6.4.2 Correcting an Activity Allocation

351

6.4.3 Reposting Values

352

6.5 Cross-Company Postings

353

6.6 Summary

358

7 Period Close

359

7.1 Allocations

360

7.1.1 Before the Start of the Period Close

362

7.1.2 Depreciation of Fixed Assets

363

7.1.3 Allocations between Cost Centers

364

7.1.4 Allocations to Profitability Analysis

378

7.1.5 Target Costs and Variances on Cost Centers

382

7.2 Calculations and Settlement

389

7.2.1 Overhead Calculation

392

7.2.2 Work in Process

394

7.2.3 Target Costs and Variances in Production

397

7.2.4 Settlement

403

7.2.5 Product Cost by Sales Order

404

7.3 Multilevel Actual Costing in Material Ledger

407

7.3.1 Types of Costing Run

408

7.3.2 Periodic Costing Run

408

7.3.3 Alternative Valuation Run

413

7.4 CO-PA Processes

420

7.4.1 Revaluation

420

7.4.2 Top-Down Distribution

421

7.5 Summary

425

8 Reporting in SAP BW and SAP BusinessObjects

427

8.1 Reporting on Large Data Volumes in SAP ERP

428

8.1.1 Using Extracts to Accelerate Cost Center and Internal Order Reports

428

8.1.2 Using Summarization Levels to Accelerate CO-PA Reports

433

8.1.3 Using Summarization in Product Cost Reports

433

8.1.4 Using Summarization Hierarchies for CO-PC Reporting

434

8.2 How to Decide Whether You Need SAP BW for Reporting

436

8.2.1 Performance Concerns

437

8.2.2 Multidimensionality

443

8.2.3 Navigation Attributes

446

8.2.4 Inclusion of Non-SAP Data

450

8.2.5 Building Queries

451

8.3 Cost Center Reporting in SAP BW

455

8.3.1 Reporting Using Virtual and Physical InfoProviders

455

8.3.2 Transient InfoProviders and Operational DataProviders

458

8.4 Reporting with SAP BusinessObjects Tools

461

8.4.1 SAP BusinessObjects Analysis for Microsoft Excel

461

8.4.2 SAP Crystal Reports for Controlling

464

8.4.3 SAP BusinessObjects Dashboards for Controlling

467

8.4.4 SAP BusinessObjects Explorer for CO-PA Reporting

468

8.5 Summary

470

9 Master Data in a Multisystem/Shared Service Environment

471

9.1 Change Requests in SAP ERP

474

9.2 New Solutions for Handling Master Data in a Multisystem Environment

479

9.2.1 Data Modeling in SAP Master Data Governance for Financials

480

9.2.2 Roles for SAP Master Data Governance

484

9.2.3 Editions in SAP Master Data Governance for Financials

486

9.3 Governance Requirements for Master Data

492

9.3.1 Creating a Change Request for a Single Object

492

9.3.2 Workflow Steps for a Change Request

497

9.4 Creating Change Requests in a Shared Service Center

498

9.5 Summary

501

10 Planning Using SAP BW Technologies

503

10.1 Planning Applications in SAP ERP

505

10.2 Planning Applications in SAP BW

509

10.2.1 Multidimensional Database Layer in SAP BW

512

10.2.2 Virtual InfoProviders in SAP ERP

514

10.2.3 Aggregation Levels and Planning Functions

517

10.2.4 Data Entry Screens

520

10.3 Orchestrating the Planning Process

527

10.3.1 Using Express Planning to Orchestrate the Planning Process

527

10.3.2 Creating a Planning Round

527

10.3.3 Submitting Data

534

10.3.4 Monitoring, Reviewing, and Approving the Planning Process

539

10.3.5 Orchestrating the Planning Process Using the Process Monitor in SAP BPC

540

10.4 Summary

546

11 Allocations Using SAP Cost and Profitability Management

547

11.1 Template Allocations in SAP ERP

550

11.2 Allocations in SAP PCM

559

11.2.1 Mapping the Costing Model in SAP PCM with SAP ERP

561

11.2.2 Dimensions of the Costing Model

562

11.2.3 Assignments in the Costing Model

568

11.2.4 Loading Data to the Model

570

11.3 Customer Value Analysis Using SAP PCM

571

11.4 Summary

575

12 Period Close Using the SAP Financial Closing Cockpit

577

12.1 New Options for Accelerating the Period Close

578

12.1.1 Orchestrating Your Closing Tasks

581

12.1.2 Executing Your Close Tasks

584

12.1.3 Automating Closing Transactions

587

12.1.4 Creating Program Variants for Your Close Tasks

591

12.1.5 Scheduling Tasks

593

12.1.6 Using Workflows in the Close

597

12.1.7 Handling Costing Runs in Your Close

602

12.1.8 Handling Organizational Units in the Closing Cockpit

603

12.1.9 Closing Cockpit and SAP Financial Closing Cockpit

607

12.2 Closing Tasks in Multiple Systems

609

12.3 Transparency within the Close

613

12.4 Summary

615

13 SAP HANA and Its Impact on Controlling

617

13.1 Impact on Existing Controlling Applications

620

13.1.1 Changes to Profitability Analysis (CO-PA)

620

13.1.2 Changes to Product Cost Controlling (CO-PC)

627

13.1.3 Changes to Overhead Management (CO-OM)

635

13.1.4 Changes to Investment Management (IM)

640

13.1.5 SAP HANA Live

642

13.2 New Approaches to SAP Controlling

645

13.2.1 Line Item Merge for FI and CO Documents

646

13.2.2 Single Planning Model

651

13.2.3 Removing the Totals Tables

654

13.2.4 Changes to Profitability Analysis (CO-PA)

656

13.2.5 Data Selection Optimization during the Period Close

660

13.2.6 SQL Approach for WIP Calculation, Variance Calculation, and Results Analysis

661

13.3 New Applications in SAP Controlling

666

13.3.1 Search Models and Fact Sheets

667

13.3.2 My Spend and My Unusual Items

671

13.3.3 Net Margin Results and Profit Analysis

676

13.4 Summary

681

13.5 Postscript

681