Costs of Goods Manufactured

APS/BI Integration Steps of GCP

Group Costing and Profitability (GCP) Engine in Business Planning and Corporate Controlling

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  1. 1. Sales Planning in DP

    The planning process can start from a CRM System, where advertising effort and marketing campaigns impact Demand Planning (DP) in APO. Alternatively, consolidated sales figures can be used sourced from SAP BW, SAP ERP (CO-PA or SD) or from other local ERP systems.

  2. 2. Supply network planning in SNP

    The sales figures described above are the first level input into the engine. If available from APO component SNP or from long-term planning in ERP purchasing and production data as well as planned closing stocks may also be extracted and loaded into GCP.
  3. 3. Planning Influences from BPS

    Factors that contribute to the cost of products which are not modelled (or not modelled to the appropriate level of detail) in the ERP systems, may be sourced from the BI component BPS (Business Planning and Simulation).
  4. 4. Top-Down Planning in GCP

    If planned purchase and production figures are not available or are incomplete, GCP can calculate these figures starting from the sales volumes and following a top down approach. This process is known as dynamic resource allocation. GCP can then show the impact derived from the changes in the sales figures by calculating the quantity of material to be purchased, as well as the consequent production and logistics volumes necessary to meet the increased or decreased sales demand. 
  5. 5. Cost Center Planning in CO-CC

    You can also have the system determine activity quantities, which the cost centre planner needs in order to carry out planning for the cost centre in the ERP system. In practice, these processes are often very time-consuming and even if sales and operations planning have already been changed, the cost centre planner is still forced to work on old numbers, as recalculation of activity volumes would take too long and the time available would not be sufficient to complete the analysis based on the new numbers.
  6. 6. Iteration of activity prices in CO-CC

    Once the cost centre planners have completed their task, the activity prices can be iterated and used in CO-PC.
  7. 7. Product Cost Planning in CO-PC

    Once the product costings have been released, GCP will extract their itemizations into the GCP format and calculate costs and results from the group view in later stages.
  8. 8. Bottom-Up Costing in GCP-Engine

    GCP can calculate manufacturing costs bottom-up and show the impact of these results on each level of the Value Chain (roll up costs).
  9. 9. Profitability Reporting in BW

    The results of the cost rollup kept at the lowest level within the product hierarchy can be reported directly in GCP by means of a powerful, self-developed tool called ALV Browser. If however, rectified to CO-PA, GCP data need to be reported on hierarchy levels (product group or product hierarchy, countries, sales organizations, customer group or hierarchy, industries), IM&C recommends the use of the GCP content for SAP BW or other BI tools.
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