Controlling with SAP—Practical Guide

Janet Salmon is a regular speaker on Controlling at conferences, including ASUG, SAP Financials (U.S. and Europe), and Mastering SAP Financials (Australia) with high speaker ratings. Janet joined SAP in 1992, working first as a translator and then as a technical writer for product cost controlling. She began working as a product manager/solution manager for the product costing area in 1995 and gradually began covering profitability analysis and overhead controlling.

Preface. 15

1. Introduction. 25

1.1 Basic Controlling Functions. 29

1.2 Essential Record-Keeping Functions. 34

1.3 Managing Close and Valuation Processes. 41

1.4 Preparing Budgets and Planning. 44

1.5 Process Analysis and Internal Controls. 49

1.6 Summary. 50

2. Reporting. 53

2.1 Cost Center Line Items. 54

2.2 Order Line Items. 66

2.3 Product Costs: Itemization … 71

2.4 Product Costs: Cost Objects. 76

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

3.2 Internal Orders. 117

3.3 Statistical Key Figures. 127

3.4 Statistical Key Figure Groups … 130

3.5 Activity Types. 131

3.6 Secondary Cost Elements. 137

3.7 Product Cost Collectors. 143

3.8 Cost Object Hierarchies. 145

3.9 Maintenance Issues. 147

3.10 Change Requests for a SOX-Compliant Master Data Process. 152

3.11 Summary. 156

4. Master Data for Which Controlling Is a Stakeholder. 157

4.1 Material Masters. 159

4.2 Customer Masters. 171

4.3 Bills of Material. 173

4.4 Routings. 183

4.5 Work Centers and Resources. 188

4.6 Procurement Alternatives and Mixed Costing. 190

4.7 Projects. 194

4.8 Investment Programs. 198

4.9 Primary Cost Elements and Profit and Loss Accounts. 201

4.10 Setting Prices for Product Costing. 207

4.11 Summary. 214

5. Planning and Budgeting. 217

5.1 Complete Sales Plan in a Manufacturing Environment. 219

5.2 Planning and Budgeting for Investment Programs. 273

5.3 Summary. 285

6. Actual Postings. 287

6.1 Integrated Process Flows: Buy, Make, and Sell. 287

6.2 Distribution of Usage Variances. 318

6.3 Integrated Process Flows: Other Logistics Scenarios. 324

6.4 Corrections or Adjustment Postings. 347

6.5 Cross-Company Postings. 353

6.6 Summary. 358

7. Period Close. 359

7.1 Allocations. 360

7.2 Calculations and Settlement. 389

7.3 Multilevel Actual Costing in Material Ledger. 407

7.4 CO-PA Processes. 420

7.5 Summary. 425

8. Reporting in SAP BW and SAP BusinessObjects. 427

8.1 Reporting on Large Data Volumes in SAP ERP. 428

8.2 How to Decide Whether You Need SAP BW for Reporting. 436

8.3 Cost Center Reporting in SAP BW. 455

8.4 Reporting with SAP BusinessObjects Tools. 461

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

9.3 Governance Requirements for Master Data. 492

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

10.3 Orchestrating the Planning Process. 527

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

11.3 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

12.2 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

13.2 New Approaches to SAP Controlling. 645

13.3 New Applications in SAP Controlling. 666

13.4 Summary. 681

The Author. 683

Index. 685