CO-PA and BW A Winning Team

Stefan Kraus (Product Manager Profitability Management) SAP AG

2000 ASUG Annual Conference & Vendor Fa i r May 7-10, 2000 G e o r g i a W o r l d C o n g r e s s C e n t e r A t l a n t a G e o r g i a

A M E R I C A S

S A P

U S E R S

Copyright G R O U P Copyright 20002000

Overview

Concepts of Profitability Analysis 1.1 An Integrated Business Model for Revenues and Costs 1.2 Integration of Master Data and Valuation 1.3 Integration of Actual Value Flows and Planning

2
3

Concepts of SAP Business Information Warehouse (BW) Interplay between Profitability Analysis and BW 3.1 Technical Interplay (Extracting and Retracting Functions) 3.2 Profitability Reporting with Delivered Business Content 3.3 Business Scenarios

Profitability Analysis and CRM with BW

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Overview

Concepts of Profitability Analysis 1.1 An Integrated Business Model for Revenues and Costs 1.2 Integration of Master Data and Valuation 1.3 Integration of Actual Value Flows and Planning

2
3

Concepts of SAP Business Information Warehouse (BW) Interplay between Profitability Analysis and BW 3.1 Technical Interplay (Extracting and Retracting Functions) 3.2 Profitability Reporting with Delivered Business Content 3.3 Business Scenarios

Profitability Analysis and CRM with BW

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Integrated Business Model

V A L U E F L O W

COOM Manufacturing Administration Marketing Sales

COPC
Standard costs Variances

COPA

FI

Business Process

Procurement Production

Goods movement

Sales/Billing

MM
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PP

MM

SD

Integrated Business Model to Collect Revenue and Costs

Planning Documents Value flows SD Transfer of billing docs FI Direct Sales quantity Sales revenue - Rebates Net revenue - Direct costs - Var. prod. costs Contrib. margin I - Fixed prod. costs Contrib. margin II - Variances - Overhead costs Operating profit Act. Plan

COPC

Valuation using cost estimates

FI

COPC

COOM

Transfer of overhead

Customizing
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Typical Questions in Profitability Analysis

Contribution of Individual Market Segments

Which are the largest and fastest growing customers?

Margin goals of Individual Sales Entities

Did the salesforce reach their contribution margin goal? What was the success of the most recent sales promotion for a product line?

Success of Marketing Activities

Revenue and Cost Structure

What is the impact of a pricing strategy for a group of customers?

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Checking Your Planning Results in Reporting

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Navigating within Web-reporting

Web-reporting allows nagivating by : Menu Double clicking Right mouse click

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Manual Planning of Annual Goals

Full Excel Macro functionality available

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Fix SAP Sheet and flexible Customer Sheet

Overview

Concepts of Profitability Analysis 1.1 An Integrated Business Model for Revenues and Costs 1.2 Integration of Master Data and Valuation 1.3 Integration of Actual Value Flows and Planning

2
3

Concepts of SAP Business Information Warehouse (BW) Interplay between Profitability Analysis and BW 3.1 Technical Interplay (Extracting and Retracting Functions) 3.2 Profitability Reporting with Delivered Business Content 3.3 Business Scenarios

Profitability Analysis and CRM with BW

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Basic Concepts of CO-PA

Characteristics Sales Region Product Product Group Customer Customer Grp State Sales Rep

Values North Prod1 Electronics Cust1 Wholesale Illinois Miller REGION PROD. GROUP
Profitability segment

Value Fields

Revenues Discounts COGS

800 100 650

Revenue Discounts COGS

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Characteristics Derivation Concept

Customer group Input

Strat.BU Sls reg. Prod.grp Cust.grp State District Sls rep. Product Cust.

Customer

G1
District State

Output
Strat.BU Sls reg. Prod.grp Cust.grp State District Sls rep. Product Cust.
SB
SR PZ G1 S1

C1

D1
Product Product group

S1

P1
R1 P1 C1

PZ
Sales region

Strategic business unit

D1
R1 P1 C1

Sales rep.

SB

R1

SR

SD
DERIVATION
COPA

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Valuation Concept

Input
Quantity 10 5,200 1,800 200 10,000 500
Quantity

Output
10 10000 1000

Billing Document Customer 1000 Product P-100 Quantity 10 Revenue 10,000 Discounts 1,000
Var. prod. costs Fixed prod. costs Special handling Revenue Sales commision
Revenue Customer Disc. Var. prod. costs Fixed prod. costs Sales commision Special handling
COPA

5200 1800 500 200

SD

Valuation

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Transfer Billings Document to CO-PA: In Detail

FI-Document

SD

Billingdocument

Header : Customer 47 SD Item 10: Product A Item 20: Product B

SAVE
Info missing ?

FI

NO
CO PA

YES

Release to Accounting

Line-item 1 Line-item 2
Customer 47 Product A Revenue ... Disc. ... COGS ...

Error

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Source Related Allocation of Overhead Costs

Kunde/Artikel Kunde/Artikel Customer A/ Kunde/Artikel Product 1
revenue ./. rebates net revenue ./. var. prod. costs CM1 ./. fix prod. costs CM2 ./.

Product Group 1
revenue : : : CM1 : CM2 production variances CM3

Customer Group 1
revenue : : : CM1 : CM2 : : CM3 ./. overhead costs
sales dept.

Company
revenue : : : CM1 : CM2 : : CM3 : : : CM4 ./.
overhead

Cost Centers cost center production cost centers sales dept. cost center administration

CM4

Operation Profit

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Overview

Concepts of Profitability Analysis 1.1 An Integrated Business Model for Revenues and Costs 1.2 Integration of Master Data and Valuation 1.3 Integration of Actual Value Flows and Planning

2
3

Concepts of SAP Business Information Warehouse (BW) Interplay between Profitability Analysis and BW 3.1 Technical Interplay (Extracting and Retracting Functions) 3.2 Profitability Reporting with Delivered Business Content 3.3 Business Scenarios

Profitability Analysis and CRM with BW

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Datawarehousing in BW

Business Explorer

3rd party OLAP clientclient

BAPI

OLAP processor

Administrator Workbench

Meta Data Repository

BAPI

InfoCubes
BAPI

Staging Engine
BAPI

ODS

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The mySAP.com Landscape

CRM

SEM

APO

Retractor

Extractor

BW R/3 Financials

NonSAP

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Portal for a Sales Business Analyst / Tasks

CRM
Workplace of a Sales Business Analyst

SEM

APO

BW R/3
NonSAP

Web browser access

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Reporting in BW

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Overview

Concepts of Profitability Analysis 1.1 An Integrated Business Model for Revenues and Costs 1.2 Integration of Master Data and Valuation 1.3 Integration of Actual Value Flows and Planning

2
3

Concepts of SAP Business Information Warehouse (BW) Interplay between Profitability Analysis and BW 3.1 Technical Interplay (Extracting and Retracting Functions) 3.2 Profitability Reporting with Delivered Business Content 3.3 Business Scenarios

Profitability Analysis and CRM with BW

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Extraction of Data from CO-PA to SAP BW

SAP BW Server

InfoSource

Communication structure

Mapping Transferstructure

DataSource

Metadata upload

CO-PA Metadata

Flow of Transaction Data

CO-PA

OLTP R/3
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Retraction of Data from BW to CO-PA

SAP BW Server

Create BW Query

Mapping between field catalog & CO-PA

BW 2.0B Add-on

CO-PA

CO-PA

OLTP R/3
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Flow of Transaction Data

Retract data from BW and back into CO-PA

CO-PA in the mySAP.com Landscape

CRM

APO

BW

R/3

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SEM

Overview

Concepts of Profitability Analysis 1.1 An Integrated Business Model for Revenues and Costs 1.2 Integration of Master Data and Valuation 1.3 Integration of Actual Value Flows and Planning

2
3

Concepts of SAP Business Information Warehouse (BW) Interplay between Profitability Analysis and BW 3.1 Technical Interplay (Extracting and Retracting Functions) 3.2 Profitability Reporting with Delivered Business Content 3.3 Business Scenarios

Profitability Analysis and CRM with BW

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Delivered CO-PA Business Content

Goal: Ready-to-Run Business Content for CO-PA Scenario 1: Connecting live CO-PA to BW and reporting of live data with queries (for testing) as easy and quickly as possible

Assign elements of your Key Figure Scheme to elements of a delivered CM structure

Extract live data to delivered InfoCube Report your data with delivered queries

Scenario 2: Providing pre-defined Operating Concern Templates and matching BW InfoCubes for new installations and demos

Use/copy delivered Oper. Concern Templates Extract demo data/live data to delivered InfoCube Report data with delivered queries

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Scenario 1: Connecting live CO-PA

CO-PA
Elements of customer-defined Key Figure Scheme are assigned to...
Sales Quantity Sales Revenue Gross Revenue Customer Discount Material Discount Cash Discount ........ ........ ........ Sales Quantity

SAP BW
... pre-defined key figures which are used in ...

...a pre-defined InfoCube + ready-to-run Queries

Total Sales Discount Total Dir. Sales Costs Net Revenue Cost of Goods Sold Contribution Margin I Variances Contribution Margin II Total Overhead Costs Operating Result

........
........ ........ ........ ........
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Steps: Connecting live CO-PA

Assign elements of Key Figure Scheme to pre-defined key figures which are used in InfoCube

Where: R/3 System -> Transaction SBIW -> Customer-defined DataSource -> Prof. Analysis -> Assign Key Figures

Create DataSource and select the pre-defined key figures which are to be populated in BW

Where: SBIW -> Create DataSource -> Calculated key figures from the key figure scheme (instead of 'value fields' !)

Map DataSource to pre-defined InfoSource 0CO_PA_1

Where: BW System -> Admin Workbench -> InfoSource 0CO_PA_1 -> Transferstructure / Transfer rules

Execute standard steps for connecting Business Content (MetaData Upload, Create InfoPackage, Execute InfoPackage,...) using InfoCube 0COPA_C01 Publishing Key Figures

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Scenario 2: Demo Content for BW and Workplace

Workplace

Delivered queries

BW

Infocube (S_GO)
Extraction of

R/3
Demo data

Operating Concern Template S_ GO

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Delivered Oper. Concern Templates and InfoCubes

Quickstart: simple Operating Concern (basic characteristics and CM)

Template: S_GO / InfoCube: CO-PA: Quickstart (S_GO) 0COPA_C03

Consumer Products: industry-related characteristics and CM

Template: S_ CP / InfoCube: CO-PA: Consumer Products (S_CP) 0COPA_C04

Airline Profitability: industry-specific characteristics and CM

Template: S_AL / InfoCube: CO-PA: Airline Profitability (S_AL) 0COPA_C05

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Overview

Concepts of Profitability Analysis 1.1 An Integrated Business Model for Revenues and Costs 1.2 Integration of Master Data and Valuation 1.3 Integration of Actual Value Flows and Planning

2
3

Concepts of SAP Business Information Warehouse (BW) Interplay between Profitability Analysis and BW 3.1 Technical Interplay (Extracting and Retracting Functions) 3.2 Profitability Reporting with Delivered Business Content 3.3 Business Scenarios

Profitability Analysis and CRM with BW

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High-Volume and Cross- Application Reporting

COPA

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Collecting Data from Several R/3 Systems

COPA

COCO- PA PA

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Collecting Data from Legacy Systems

Legacy System

COPA

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Overview

Concepts of Profitability Analysis 1.1 An Integrated Business Model for Revenues and Costs 1.2 Integration of Master Data and Valuation 1.3 Integration of Actual Value Flows and Planning

2
3

Concepts of SAP Business Information Warehouse (BW) Interplay between Profitability Analysis and BW 3.1 Technical Interplay (Extracting and Retracting Functions) 3.2 Profitability Reporting with Delivered Business Content 3.3 Business Scenarios

Profitability Analysis and CRM with BW

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Customer Value - Examples

Key Customer Development
Top Ten Customers

Customer Lifetime Value Analysis

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Customer-Related Revenues and Costs

Cust:Jones A&P

Collect customer-related revenues and costs

Net Profit

Order handling & delivery Marketing campaigns Customer visits

Service Time

Quotations

Complaints

Billing and payments

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Interplay between CRM and CO-PA

SAP BW Market Data
COPA

Customer Evaluation in the Workplace

Workplace

Customer Profitability

Info cubes

R/3
Info cubes

Customer Profitability

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Source-Related Allocation of Customer-Related Costs

CustomerRelated Activities Customer

Net Revenue Cost of Sales

Customer Profitability

Transport and Distribution Customer Visits Customer Complaints Order Handling & Delivery

Direct Sales Costs

Customer Service Processing

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Source-Related Allocation of Customer-Related Costs

Customer

Net Revenue Cost of Sales

FI

Direct posting
Activity alloc. of customer visits Accruals dependent on order size

Direct Sales Costs

COOM

Cost Centers SALES & SERVICE

Customer Service Processing

Allocation of costs based on cost drivers in CRM

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Example: Customer Direct Costs

CRM

Activity Log: #Calls per customer

CRM-Screen: Cost of calls for a specific customer

1
CO-OM: Total cost per call center
BW

R/3

3
CO-PA: Cost of calls per customer

InfoCube: Cost of calls per customer

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Profitability Management Workshops

Workshop Location Chicago Chicago San Francisco San Francisco San Francisco San Francisco Date July 13 & 14 July 17 & 18 October 2000 December 2000 January 2001 January 2001

Performance Tuning in CO-PA BW/CO-PA Configuration & Integration SD/COPA Integration Workshop Integrated Profitability Planning Performance Tuning in CO-PA BW/CO-PA Configuration & Integration

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Where to sign up
Please check SAPNET for exact dates, location and further details:

http://www.sap.com/usa/education

Use keyword Workshop

To register:

Use SAPNET: http://www.sap.com/usa/education Call Central Registration at 1-888-777-1SAP (1727) Fax 1-888-FAX-1SAP (329-1727)

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Links to Further Information

CO-PA Home page

SAPNet -> Alias 'co-pa'

Factsheets

Profitability Management (mat. no. 50030578) Sales and Profit Planning in Profit. Analysis (mat. no. 50030579) CO-PA and SAP BW - A Winning Team (mat. no. 50034426)

Delta Study Guides

SAPNet -> SAP Store / SAPShop -> Knowledge Shop

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