Profit Planning 

Use

By defining a suitable planning layout, you can plan goods movements by entering quantities of representative materials. The system valuate these quantities with transfer prices from the profit center view.

This allows you to plan sales quantities instead of revenues. The system uses transfer prices to calculate the corresponding revenues. The system reads the corresponding material direct costs from a material cost estimate.

It is also possible to plan stock changes with transfer prices. To do this, the system reads the all material direct costs with transfer prices from the material cost estimate.

Integration

This planning function is integrated with transfer pricing and the material cost estimate.

Prerequisites

To valuate plan quantities with transfer prices, you need to store transfer prices from the profit center valuation view in your system (see Transfer Prices in Profit Center Accounting).

To read material direct costs, the standard costs of goods manufactured from the profit center valuation view must be stored in your system (see Updating Parallel Values in Material Costing). Since material direct costs can only be determined here for representative materials, you also need to have defined and activated the necessary representative materials (see Representative Materials).

You have made the necessary settings in Profit Center Accounting Customizing for valuating quantities and deriving material direct costs. For more information, see the Implementation Guide (IMG), under Profit Planning.

Features

Carrying Out Valuation

Enter the plan quantities in a suitable layout (see below). You can define the corresponding revenues and costs in two ways.

1: Automatic derivation whenever you save the planned quantities

Select the following fields in the costs/revenues row in the planner profile:

●     Valuate with TP if you want the system to valuate the planned sales quantities with transfer prices when you save your entries in the planning layout.

●     Mat.costs auto if you want to derive the costs for the planned sales quantities using material direct costs with transfer prices when you save your entries in the planning layout.

●     TP:Valuate Changes in Stock if you want to derive the costs for planned stock changes using the cost of goods manufactured with transfer prices when you save your entries in the planning layout.

2: Manual derivation

Do not select the fields mentioned above in the planner profile. Instead, after entering the plan quantities in the layout, choose the required rows and then the required buttons.

●     If you choose Valuate with TP, the system will valuate the planned sales quantities with transfer prices.

●     If you choose Derive Mat. Costs, the system will derive the material direct costs for the quantities in question with transfer prices.

●     If you choose Valuate Changes in Stock, the system will derive the cost of goods manufactured for the planned changes in stock with transfer prices.

Planning Layouts for Valuation

You can valuate plan quantities with transfer prices using special planning layouts (see Defining a Layout). You can copy the standard SAP planning layouts and use these as templates.

Standard SAP layouts for Profit Planning

●     In layout 8A-106 (8A-116), you can enter plan quantities for certain profit centers (profit center groups). After you have carried out valuation with transfer prices, the corresponding revenues are displayed in the same layout.

●     If, in addition to the revenues for a profit center (profit center group), you also want to derive the corresponding costs, you can display these in layout 8A-107 (8A-117).

●     Layout 8A-108 (8A-118) provides an overview of planned sales and balance quantities, as well as the corresponding material input, all valuated with transfer prices. The profit is calculated and displayed from these values.

When you create your own layouts, be sure to include the following information in the header or in the columns of your layouts:

○     Fiscal year

○     Account number

○     Representative material

○     Plant

○     Quantity

○     Unit of measure

○     Value field

You can only valuate quantities and determine costs if this information is defined in the layout. If transfer prices in your organization are dependent on the partner profit center, you also need to define a column for the partner profit center in your layout.

Plan reconciliation report

Once you have derived your plan data, you can execute a standard SAP plan reconciliation report. This provides a comparison at totals record level between the planned revenues of a profit center and the planned costs of its partner profit center.