Actual Value Flows
The system uses the
The following methods of controlling data are frequently used:
- SD interface
- Settlement to CO-PA
- FI interface
- Cost center assessment
- Direct entry of line items (correction option)
- Third party interfaces
How does CO-PA know which of these methods were used? It knows this from the fixed characteristic record type. The record type shows which method was responsible for feeding the data into CO-PA. Invoice data is adopted with record type F, sales orders with A, FI postings with B, cost center assessments with D, and settlements with C. You can also define characteristic values for the record type yourself — if you want to see everything that has been included via possible line item corrections (that hopefully occur only infrequently), for example.
The Most Important Interface to CO-PA
The SD Interface as you have seen from my previous explanations, you usually use CO-PA to present your results on the market and to assess them according to various criteria and business requirements. It will therefore probably not surprise you that the interface to the SAP module SD (Sales and Distribution) is very important. This important function is also clearly visible in the SAP system from the fact that you can use this interface for two different times of data transfer to CO-PA: at the time the sales order is received and at the time of invoicing.
Transferring actual data at the time of the incoming sales order is interesting for companies for which the time of the incoming sales order and the time of invoicing are quite far apart. You may work for a company that wants to see at the time the order is received how the future business situation will develop without having to wait for invoice data. These companies often sell products from project-related production, variant configuration, make-to-order production, or make-to-stock production, i.e., products for which manufacture takes a long time or products that are not produced until after the order is received. In contrast, if you sell MTS (make-to-stock) products, you can usually deliver products for incoming sales orders quickly from your warehouse and then invoice them. In these cases, transferring the SD data at the time of invoicing is usually sufficient as you do not gain any new information in comparison to transferring the data at the time of the incoming sales order.
If a company does not sell MTS products, it usually decides to use both data transfer times. However, there are also companies that use the sales order in SD as a cost and revenue collector and settle this sales order to CO-PA later. The invoice is then issued, but the invoice data is not transferred to CO-PA until the settlement of the sales order and not at the time the invoice is issued.
Handling of Quantity Fields
In order to transfer sales order quantities or sales quantities to CO-PA, you have to name certain SAP fields that you want to assign to your quantity fields. You can find these quantity fields in customizing for CO-PA, if you want to assign your CO-PA quantity fields. In the configuration menu for CO-PA (transaction ORKE), you maintain the SD interface for the quantity fields via FLOWS OF ACTUAL VALUES • TRANSFER OF BILLING DOCUMENTS• ASSIGN QUANTITY FIELDS. The SD quantity fields shown in Figure below are available.
Selection of SD quantity fields for CO-PA quantity fields
Sales quantities from the invoice are in field FKIMG or FKLMG, and sales order quantities in field KWMENG. For our example, we assign these two SD quantity fields to our CO-PA quantity field ABSMG (see Figure below).
Assignment of SD quantity field to CO-PA quantity field
Can we assign both fields to the SALES QUANTITY quantity field? If you want to transfer both the sales orders and the invoices to CO-PA, in CO-PA, you can create one quantity field for the sales order quantity and one for the invoice quantity and then assign them either to KWMENG or FKIMG. The advantage of this is that you can separate both quantity transfers in CO-PA reports and treat them differently in the valuation strategies.
Transferring Invoice Data
If you decide for your company to transfer the actual data to CO-PA at the time of the invoice, the advantage is that you can transfer and post the data in real-time. A great advantage of the SAP system is that the data that you enter is often available in other modules and reports when you save it — i.e., immediately in real-time. A further resulting advantage is that you usually only have to enter a data record once to be able to see and use it in multiple modules. Duplicate entries are a thing of the past, but this may well be why you have decided to use SAP.
Back to the invoice transfer: SD works with SD pricing procedures to determine prices and conditions. These pricing procedures use condition types. During invoicing (and during entry of the sales order), the system runs through this pricing procedure, finding the required prices, discounts, cash discounts, rebates, freight charges, sales promotions, etc. for the customer/ product combination that you want to invoice. We adopt this form of pricing and condition determination in CO-PA — by assigning the condition types to our value fields defined in the operating concern.
The business event is a combination of two or three characteristic values.
- 01 (actual valuation) in combination with a record type
- 03 (manual planning) in combination with a record type and a plan version
- 04 (automatic planning) in combination with a record type and a plan version
If you now assign a valuation strategy to business event 01 in combination with record type F, no invoice data is transferred to CO-PA for the sales orders to be invoiced if these sales orders collect costs and revenues. If you want to settle sales orders to CO-PA as cost and revenue collectors, you have to assign business event 01 in combination with record type C to an actual valuation strategy and define a corresponding settlement strategy.
Transferring Incoming Sales Orders
You can valuate incoming sales orders (as expected revenues) and transfer them from SD to CO-PA in order to obtain an early estimate of anticipated profits. By analyzing this data characteristic value, you can obtain early profitability results for individual segments of your business. Consequently, you can create reports that not only reflect the course of actual profits and contribution margins on the basis of billing documents, but also allow you to analyze these developments on the basis of incoming orders. (To analyze incoming orders, specify record type A in the report. To analyze billing data, specify record type F.)
This function is especially useful when there is a long span of time between when you open the sales order and when you actually bill the customer. It allows you to react early and appropriately if you notice any unexpected developments.
We have already covered a lot of information on this topic, but the important thing to emphasize is that you have to explicitly activate the transfer of incoming sales orders to CO-PA as part of customizing, otherwise it does not work. You also have to assign your actual valuation strategy to business event 01 in combination with record type A. Record type A identifies the CO-PA documents that originate from the incoming sales order. If you forget to assign valuation business event 01 in combination with record type A for a valuation strategy, when you transfer incoming sales order documents to CO-PA, no additional value or quantity fields are valuated.
Interface for Our Example Data
For our example, we want to use the SD interface to fill the following value fields:
- Sales Quantity
- Other Discounts
- Cash Discount
- Annual Rebates
- Outgoing Freight
- Sales Promotion
As already described, condition types are defined in the SD pricing procedure to fill these value fields. For revenues, discounts, and rebates, there are also simultaneous postings to G/ L accounts in Financial Accounting. Cash discounts, freight charges, and sales promotions are marked as statistical in the SD pricing procedure. This means that the data that is transferred to CO-PA via these condition types is not simultaneously posted to the FI. This only happens in the costing-based form of Profitability Analysis. You may also discover that sales promotions should also be transferred via the SD interface. Sales promotions are products that we give to the customer free of charge in the hope of higher sales. These products are invoiced to the customer with a value of zero; in CO-PA, they are transferred statistically (i.e., costing-based) with the value at which these products are also valued in the balance sheet.
Incoming sales order
Postings only occur to FI accounts if you use the SD interface for invoice transfer. Sales orders are transferred with record type A, if everything is customized correctly, without being posted in FI.
Customizing the SD Interface
The SD interface can be activated both for the billing and additionally for the incoming sales order. With the interface to the incoming sales order you get information about the profitability analysis at an early time. The profitability analysis differentiates between the billing documents and the incoming order documents with the help of the record type (F or A).
If you do not need real-time revenue information, you must not transfer incoming sales orders to the profitability analysis, but only billings.
In the configuration menu for CO-PA (transaction ORKE), maintain the SD interface for the value fields via FLOWS OF ACTUAL VALUES • TRANSFER OF BILLING DOCUMENTS• ASSIGN VALUE FIELDS. Then double click the entry MAINTAIN ASSIGNMENT OF SD CONDITIONS TO CO-PA VALUE FIELDS.