Table of Contents

New Functions in CO-PA in Releases 4.0 and 4.5

Unit 1 General Topics Unit 4 Flows of Actual Values

Unit 2 Structures Unit 5 Planning
Unit 3 Master Data Unit 6 Reporting
 Rel. 4.0 + 4.5

General Topics

Contents

 Parallel Update of Operating Concern Currency and

Company Code Currency in CO-PA
Frf  Use of Transfer Prices in CO-PA
 Enhancements in Corporate Controlling

Bukrs 0002
Parallel Currencies - Business Background
 In 3.0 all values in one operating concern were stored in
one currency (operating concern currency).
 In reporting, you can convert those values to any currency
using monthly or annual average exchange rates.
 Corporations in particular want to report their profitability
in group currency (operating concern) as well as in the
local currency (company code).
 In order to ensure reconciled profitability reports with FI
and to avoid currency variances, Release 4.0 lets you
transfer both currencies to CO-PA for each transaction.
 Rel. 4.0

Parallel Currencies: Currency Types

g
t in ur.
costing-based
costing-based era n c
p r
CO- O ce y New
Operating n n
PA co pa ur.
concern m c
Co ode Customer
c
g Outgoing
ll in cy
tro ren invoice
n r
Controlling Co a cu in
area e
ar transaction currency
DEM
USD
any cy
p en
om rr
Company C c u
code
code ode
c
FRF
 Rel. 4.0

Working With Two Currencies: Overview

 Flows of Actual Data
 All actual value flows can be stored in both the operating concern
currency and the company code currency in parallel.
 Planning
 For each plan version, you decide which currency to use to store
values (operating concern currency or company code currency).
 Plan data in the company code currency can be translated periodically
into the operating concern currency. This translation works in both
directions.
 Possibilities in Reporting
 Cross-company reports in the operating concern currency
 Reports in company code currency as well as operating concern
currency, where the company code is a mandatory characteristic
 Rel. 4.0

Parallel Currencies for Actual Data: Example

Scenario:
Headquarters CO- CO-PA Report
PA
Oper. concern Company code
CoCd currency:
0001
currency:

Rev. 2000 DEM Rev. 6000 FrF

DM

Subsidiary Reconciliation

FI
Billing document
CoCd 0002
to customer: Profit and Loss Statement
Frf Revenues 6000 FrF
Product 1: 6000 FrF
 Rel. 4.0

Parallel Currencies for Plan Data: Example

Layout
Characteristic Char. value
n Customer
tio 4711

l ec
Se
Customer: 4711
Version: 120
Quantity 100 Units
Revenue 3000 FrF
Discount 200 FrF
Net revenue 2800 FrF
...... ......

Save

Select

Version 120 Version 110

Plan
Copy/
data -> Company code
Revaluate
-> Operating
concern currency
currency (FRF)
(DEM)
 Rel. 4.0

Notes on Customizing Parallel Currencies

 For purposes of reconciliation, you can store
your CO-PA data in the operating concern
currency and in the company code currency.
 In the attributes for you operating concern, set
whether data should also be stored in the
company code currency.
 For purposes of sales and profit planning, specify
for each individual plan version whether it should
store values in the operating concern currency or
in the company code currency.
 Rel. 4.5

Business Background
Information:
 Normally, billing documents in SD are only created for
"external sales" to third parties or other companies within
the corporate group. (Intercompany)
 Internal sales (such as stock transfers between profit
centers) valuated on the basis of transfer prices are not a
standard part of profitability analysis. (Intracompany)

Requirement:
 Organizations that treat their profit centers as
independent organizational units need to be able to
see both internal and external sales in Profitability
Analysis. (Intercompany + Intracompany)
 Rel. 4.5

Different Views of a Corporation: Example

Group
Group view

TP External
Company
Companycode
code11 TP
sales/
Production Company
Companycode
code22
Semifinished gds. legal view
Production Company
Companycode
code33
Finished goods
Sales
companies
TP Internal +
TP TP
Division
Division11 external
Profit center Division
Division22 sales/
Division
Division33 Division
Division44 profit
center view
 Rel. 4.5

Different overviews in CO-PA

Group result

Group
Revenues with
third parties
-
Group CGM
TP
Company
Companycode
code22 Result for the legally
Company
Company code
code33 independent company
Prefabrication
Marketing Revenues with third
company parties + other
companies in corp. grp
-
TP Legal CGM
TP
Profit center Division
Division11 Profit center result
Division
Division22
Division
Division33 Revenues with third
parties, companies in
corp. grp + profit ctrs
-
Profit ctr CGM
 Pre 4.0

Result for the Legally Independent Company

Result

Revenues with companies Revenues with 3rd parties

in corp. Grp -
- Legal CGM
Legal CGM

Group-
Company
Companycode
code11
external
Company
Companycode
code22 customer
Company
Company code
code33
Marketing
company
(Intercompany business)
 From 4.0

Group Result
Result

Revenues with 3rd parties

-
Comp. CGM

Company
Companycode
code11 Group-
Company external
Companycode
code22
customer
Company
Company code
code33
Marketing
company
 Ab 4.0

Notes on Customizing "Group Results"

 You can now supplement the legal view of data in
CO-PA with all information necessary for the
group result.
 Use a characteristic (such as a intercompany
flag) to classify your customers as companies
within the same corporate group to distinguish
them from group-external companies.
 Valuate your sales in parallel value fields with
legal costs and group costs of goods
manufactured.
 Organize your reports as follows:
 Legal reports to show the legal costs of goods manufactured
 Group reports to show the group costs of goods manufactured
 From 4.0

Integrated Parallel Valuation Approaches in the

Transfer Price Solution (D45TP)
Cost center
Raw Finished Sales
materials Semi- goods warehouse
finished Sales
order

Production Production
order order

Company code 1 Company code 2 Company code 3

PrCtr1 PrCtr2 PrCtr3 PrCtr4
CoCtr. 20
CoCtr. 20

L 70 100 L 120
75 G 90
G 70
P 75 - + 120 P 140
L 70 L 120 220
L 70 L 220
G 70 G 90 G 90
G 70
240
P 70 P 75 P 140 P 240

Assume: Plan = Actual => No Variances

 From 4.0

Parallel Valuation Approaches in R/3

Accounting
Profit Center Accounting
EC-
Cur. Cur. Cur.
PCA or or as in 3.0
PrCtr Grp Leg.

Financial Accounting Controlling

Cur. Cur. Cur.

Leg.
Oblig. CO- Leg. CO- Leg.
OM PA
See Cur.
FI Cur. Cur.
Grp
Opt. CO-
Grp
version Grp
PC
concept
Cur.
.
Cur. Cur.
PrCtr
Opt. PrCtr
PrCtr

Material Ledger Cur. Cur.

Cur.
Oblig. Opt. PrCtr Opt.
Leg. Grp
 From 4.5

Profit Center Result Using Transfer Prices

Result

Revenues with companies

in corporate group
-
Profit center CGM

Revenues with profit ctrs Revenues with 3rd parties

-
- Profit center CGM
Profit center CGM

Group-
external
PrCtr
PrCtr11 customer
PrCtr
PrCtr22
PrCtr
PrCtr33 PrCtr
PrCtr44

(Intracompany business)
 From 4.5

Notes on Customizing
 With the SAP Transfer price solution you can analyze
the profitability of individual products on the basis of
transfer prices for sales between profit centers.
 The only prerequisite is that you store parallel
valuation approaches in accounting
(see course D45TP).
 This involves specifying in the attributes of your
operating concern if you wish to store profit center
valuation and which currency type you wish to use.
 Determine which value fields should be used to
display internal revenues.
 Finally, activate profit center valuation to save the the
profitability data concurrently with the legal view.
New Functions for Group Controlling

 Values stored in two parallel currencies

 Valuation using group product cost estimates
 Number of characteristics increased to 50
 Realignment programs redesigned
 Top-down distribution of actual data
 Concepts for separating OLTP and OLAP