S4/Hana– Business Blueprint Document

Production Planning

Prepared by: Mazars

Process Doc No. Page 1 of 11

 Document Control
DOCUMENT INFORMATION

Document Category Process Definition Document

Document Title Production Planning Business Blueprint

Team

Created By

Project Management Approval Yes / No

Business User Approval Yes / No

Document Status Draft / Released for vetting / Final / Approved

REVISION HISTORY

Version Date Author Status

0.1

TARGET READERS
Project Core Team
Business Process Owners
Project Management Office

Contents
Document Control.................................................................................................................................2

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GLOSSARY.............................................................................................................................................3
1. BUSINESS BLUEPRINT.....................................................................................................................4
2. About Profit center accounting Business Blueprint.....................................................................5
3. Business Process..............................................................................................................................5
3.1 Business Process Map Legends...................................................................................................5
3.3 CO ORGANIZATION STRUCTURE...............................................................................................5
3.4 CONTROLLING AREA.....................................................................................................................6
3.5 segment............................................................................................................................................6
4. PROFIT CENTER ACCOUNTING......................................................................................................7
5. Process and Requirement................................................................................................................9
6. List of standard SAP reports............................................................................................................9
7. Technical Consideration – RICEFW..............................................................................................10
8. Technical Consideration – FIORI...................................................................................................10
9. Recommendation of New / Add. Technology Solution for future optimisation........................10
10. Recommendation parked with Business....................................................................................11
11. Authorisation Considerations......................................................................................................11
12. Document Signoff Sheet...............................................................................................................11

GLOSSARY

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 Cod
Code Description Description Code Description
e

XXX Purchase
Project Name PR BBP Business Blueprint
X Requisition

Financial
FI PO Purchase Order KDS Key Data Structure
Accounting

Sales and
CO Controlling SD GL General Ledger
Distribution

Material
MM MM Material Master BP Business Partner
Management

Quality Bank Reconciliation

QM SO Sales Order BRS
Management Statement

Production Stock Transfer

PP STO Co Code Company Code – Legal Entity
Planning Order

Plant
PM MTO Make to Order COA Chart of Accounts
maintenance

BP Business Partner MTS Make to Stock COD Chart of Depreciation

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 1. BUSINESS BLUEPRINT

The SAP Blueprint is a detailed description of a company's business processes and system requirements. It is a key
implementation document. The SAP Blueprint document shows all the important steps to be mapped to company
needs. In other words, SAP Blueprint is the architectural foundation for the success of a project

2. About Profit centre accounting Business Blueprint

The main purpose of Profit center accounting is to determine profit for internal areas of responsibility. By Assigning
balance sheet items (Fixed assets, Receivables and Payables, Stocks) to profit centers, we can analyze our
company’s fixed asset by profit center. Profit centers can be set up according to product lines, geographical factors
(region, offices or production sites) or function (production, sales). We divide our business into profit centers by
assigning the profit centers to the various master data (materials, cost centers, orders, projects, Sales orders, assets,
cost objects and profitability segments). Every profit center is assigned to the organizational unit controlling area.
Profit Center evaluates the revenues and costs for a particular Project, product line, or a plant or a business unit.
Though you can generate balance sheets and profit and loss accounts per Profit Center still a profit center should
basically be used as a tool only for internal reporting purposes .

3. Business Process
3.1 Business Process Map Legends

Based on business requirements / expectations, recommendations and KPI requirements key business
process are designed. Below legends shapes and shading are used to describe to be process in flow diagram.

3.2 Introduction

Controlling (CO) contains all accounting functions necessary for effective decision-making process. If an
organization divides accounting into internal and external viewpoints, CO represents the internal
accounting perspective. It provides information for managers - those who are inside an organization and
are vested with directing and controlling its operations. CO covers both the operational and the strategic
aspects of management.

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 3.3 CO ORGANIZATION STRUCTURE

Controlling Area is an organizational unit used to represent a closed system for cost accounting purposes.
Controlling Area 1000 would be created . The Controlling Organizational Structure would be as follows:

3.4 CONTROLLING AREA

The Controlling Area is the business unit where Cost Accounting is carried out. The Company Code
allocated to the Controlling area must use the same operating chart of accounts and the same fiscal year
variant.

Each controlling area has a unique standard hierarchy; the highest node is created when maintaining the
Structure. To the standard hierarchy of cost centers are attached all the cost centers created for a Company
code.

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 A controlling area may include single or multiple company codes that may use different currencies. Cross-
Company Code cost accounting is possible if all the companies use same Chart of Account and same Fiscal
year variant.

3.5 segment

The segment is defined as a subarea of a company with activities that generate expenses and revenues, with
an operating result that is regularly used by management for profit assessment and resource allocation
purposes, and for which separate financial data is available.

Segment is assigned to Profit Center under 1: N assignment i.e. multiple profit centers can be assigned to a
single Segment. Here, multiple profit centers which are assigned to a single segment can belong to different
company codes.

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 4. PROFIT CENTER ACCOUNTING

A profit center is a management-oriented organizational unit used for internal controlling purposes. Dividing
your company up into profit centers allows you to analyze areas of responsibility and to delegate
responsibility to decentralized units, thus treating them as “companies within the company”.

In other words, Profit Center Accounting (EC-PCA) lets the business determine profits and losses by profit
center using either period accounting or the cost-of-sales approach.

Ex 1:1 mapping of Plant and Profit Center i.e. each plant will be created as a Profit Center in sap system.

Hence profit centers, to be created in S/4HANA will be activated only for that company code to which the
plant belongs to.

4.1 Dummy profit centre

The dummy profit center is the default profit center to which data is posted when the corresponding object
has not been assigned to a profit center. Data from this profit center can be assessed or distributed to the
desired profit centers. In other words, dummy profit center is updated in data transfers whenever the object to
which the data was originally posted (cost center, internal order, and so on) is not assigned to a profit center.
This ensures that the data in Profit Center Accounting is complete. The data in the dummy profit center can
be sent to the other profit centers using assessment or distribution.

4.2 Value Flows in PCA

Assignments of materials to profit centres provide the default values for assignment of sales orders and manufacturing orders.
With internal goods movements also (such as stock transfers or material withdrawals) the profit centre is derived from the
material master, if no other account assignment has been made.

The assignment of materials also forms the basis for the transfer of material stocks to Profit Centre Accounting.

It is necessary to assign SD sales orders to profit centres in order to reflect sales revenues and sales deductions. The profit centre
assignment is also passed on from the sales order through the logical chain sales order -> delivery note -> goods issue -> billing
document. This means that when the goods issue is posted, the goods usage which corresponds to the revenues is also
passed on to the profit centre of the sales order.

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 Sales orders are divided into header data and item data. Each order item is assigned separately to a profit centre, since this
is the finer level of detail.

The system proposes the profit centre of the product in the sender plant as the default profit centre. Consequently, you usually do
not need to enter a profit centre manually. This default supports a product- oriented and geographical division of your
organization into profit centres.

Profit Centre would help in analysing the revenue earned by a Profit centre against the cost incurred.

5. Process and Requirement

The purpose of the Profit Centre accounting is to allow an organization to route all profitability and balance
sheet related information to a profit center. As you activate profit center accounting for each of your
controlling areas, all assigned company codes are automatically associated with the ledger.

5.1 Integration Requirement

Key Assumptions

S No. Module Description

1 Sales & Distribution At delivery and billing, profit center will populate

At Goods issue and Goods received on production

2 Production Planning
order, profit center will populate

3 Material Management At MIGO/MIRO profit center will populate

4 Finance At any expense/revenue posting in finance

5 Cost reposting/allocation At any cost reposting and allocation

Key Dependencies

S No. Description

1 Proper assignment of Profit Centre master with 1.) Material Master 2.) Cost Centre Master

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 6. List of standard SAP reports

No. Report Name System Standard/Customized T-Code

1. Profit Centre: Actual Line Item S/4HANA Standard KE5Z

2. Profit Centre: Receivables S/4HANA Standard S_ALR_87013343

3. Profit Centre: Payables S/4HANA Standard S_ALR_87013344

7. Technical Consideration – RICEFW

The following table illustrates the various customization requirements required by business/ said solution.
Each requirement is tagged to a BPML and the type of RICEFW has been highlighted. Further large
requirements comprising of multiple RICEFWs has been classified as Module Pools (MP).

Sr. No. BPML Reference no Structure Element RICEFW Type RICEF Details

PCTR.01 Profit Center Wise Daily, monthly, yearly

1 R
report profit center Report

8. Technical Consideration – FIORI

Sr. Name of Fiori App Fiori App

No. Details

1. Profit Center Standard

2. Manage Profit Center Standard

3. Manage Profit Center Group Standard

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 9. Recommendation of New / Add. Technology Solution for future
optimisation

Sr. No. Recommendation Acknowledge By Business

1.

10. Recommendation parked with Business

Sr.
Recommendation Reason for Parking
No.

Other system linking with S4/HANA

1. system for better tracking of daily Decision required from Business
production

11. Authorisation Considerations

Authorization will depend as per organizational needs. Authorization matrix will be prepared during the
realization phase.

12. Document Signoff Sheet

Role Name Signature

Business Process
Owner

Core Team Member

Consultant (Mazars)

Project Manager
(Mazars)

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