Transcription

Achieving Customer Material Level Profitability WithS/4HANA Finance - Account-Based COPASession ID # 83037May 7 – 9, 2019

About the SpeakersKris GriswoldRaju Chintalapudi Controller, Dole PackagedFoods Senior Manager – SAP, DolePackaged Foods Several decades of experienceas public accountant andcontroller for largeenterprises Extensive experience inbusiness transformation andimplementation of enterpriseapplications Western Classical Singer Eastern Classical Musician

Key Outcomes/Objectives1. Design Philosophy to Customer Profitability2. How to realize Customer Profitability using S/43. Benefits and challenges in ABCOPA with S/4HANA

AGENDA INTRODUCTION OUR LANDSCAPE CUSTOMER/MATERIAL PROFITABILITY– CONCEPTUALIZATION– REALIZATION S/4 HANA - ACOUNT BASED COPA– ACTIVATION– MIGRATION FUTURE VISION

Dole Packaged FoodsDole International HoldingsDole Packaged Foods, LLC 165 year History 1B Rev., Packaged Only Fresh (Asia) and Packaged Direct/Broker Sales 300 Products 75% Asia Sourced 90 Countries USA Frozen Mfg. 25,000 Employees US Headquarters in LA 2.5 Billion Revenue 3PL Based NA Supply ChainProduct Categories

1851DOLE FOODS – MAKING HISTORY18631899-190119111964-19821990s20132017Dole merges withCastle and Cooke andkeeps the DOLE brand.Samuel Castle & Amos Cooke,originally from Boston, set up theirtrading company in HawaiiPhilipp Astheimer & Sohn isestablished in Hamburg,Germany. This company is nowthe basis for Dole’s EuropeanbusinessDole introduces FruitBowls , the first all-naturalfruit snack in a plastic cup.James Drummond Dole, ofHarvard School of Horticultureand Agriculture, comes toHawaii and establishedHawaiian Pineapple Company“We havebuilt thiscompany onquality, andquality, andquality”.First machine forpeeling, coring, andcutting pineapplesDiversification intobananas and other fruitsand vegetables, andexpansion into LatinAmerica and Europe Implementationof multiple SAPsolutions,includingS/4HANA Jan 2017 GoLive Dole PackagedFoodsbecomes partof ItochuCorporation 59bn tradingbusiness

KEY BUSINESS gementCost nanceTransportationMarketingProduct l Planning ProcessFinancial Close tionReporting ProcessesAnalytics ProcessFinancialAccountingProcessesTradeFunctional Integration ses

IDOCSSAP BW(HANA)I2Others 3partysSAP BOBJ3PLConcurAsia JDE & I2BanksSAP S/4 HANAARIBA NetworkWarehousePromotionsSprinklr( Social Listening)GXS InovisC4C HybrisSAP POIBPSAP CRM(HANA)SAP TPOSAP AnalyticsCloudCustomerCURRENT LANDSCAPEHyperion

CUSTOMER PROFITABILITY – CONCEPTUALIZATIONIs yourorganizationunderstandingprofitability byproducts andcustomersDo you havestrong businessprocess andsystem design toachieve this ?What is yourHow to get there Just the end ofphilosophy ? Do ?beginning .longyou want to beway to goprecisely wrongor approximatelyright ?

CUSTOMER PROFITABILITY – REALIZATIONSDTMTPMINVPURCOFIAB - CO-PACustomer Groups(CL, GR, FS, etc.)Cost of Goods SoldTrade Promotion CostsTransportation CostsBillingMarketing CostsIndirect / G&A CostsOverheads(collected in CostCenters / InternalOrders)Assessments /SettlementProduct Groups(Fruit Bowl , Packaged Pine etc.)Fx Gains/LossReference BasisRun AllocationsVolumes /Revenues/Costs Sold byCustomer / Product / OrderDirect Costs / RevenuesPFR(PeriodFinancialReport)Allocated OverheadCosts by product andcustomer

Key FunctionalitiesCharacteristicsIntegrated withall modulesCharacteristicsDerivation RulesProjectSettlementsCOPAAssessmentsTop DownAllocationsOther FeaturesCustomerSDTable LookupMarketingCost CentersByVolume/ValueRealignmentsProductMMUser ExitsR&DFixed % orDerivedReferencevaluesFixed VsVariable rSpendTransactionalTMParallelCurrencies /ValuationsAccountFIValuationHierarchiesCOStandard CostSplit

CBCOPA -CHALLENGES FI & COPA – Expertise GAPDifferent language between GL and COPA. (Accounts Vs FPA lived in different worlds)Reconciliation Issues–––– Ship Not billedMissing EntriesFunctional Area ReconciliationCOGS Reconciliation (KEAT)Value Field Restricted/impact on adding new onesSign Handling ComplexityReliance on CBCOPA for Critical Decision Making - Statistical Vs Real Postings in COPA.Single Entry postings in COPA Reporting in BW/BI. Standard ECC reporting Clunky.

Universal Journal Entry (ACDOCA)THANKS TO S/4HANA - ABCOPAMerger of GL Account, Cost Elements & Value FieldsAll COPA Characteristics in GLAll postings in GLGap between CBCOPA & ABCOPA functionality minimal

SINGLE SOURCE OF TRUTH – RUN SIMPLE FROM 1 T-CODE!Functional Area & GLAccountCustomer/MaterialSales Order Type1 Transaction Qty &3 Additional QtyTransaction, Local& Group CurrenciesFAGLL03H – The Weapon of the Accountant

MIGRATING & ACTIVATION OF ABCOPA - GAPSABCOPA activation in S/4 HANA is Optional .No Migration path from CBCOPA to ABCOPANo complete Parity of Functionality (though getting close – Refer 2349278 - S4TWL - Profitability Analysis)No Enhancement Framework for Valuation - COPA0005 Enhancement for actual data update (CO-PA)Though parallel activation possible – this would create double work for at least an year to keep both ABCOPA & CBCOPA in sync.(Accounting will hate it )No Ability to repost to COPA Independently (KE4S) or No Fixes using KE21NNo Functionality to reset quantities (for non inventory movement )

WHAT WE DID ?HOW DID WE BENEFIT ?Activated ABCOPA & CBCOPA inparallel upon S/4 MigrationStart Collecting data to ensure howdata is posting using COPA over fewperiods . De-risk initial Go liveConverted CBCOPA into ABCOPA usingHANA Model but stored in ZACDOCA(Shadow table )Ability to Combine ABCOPA andCBCOPA data for reportingImplemented Enhancements /automation for Ship not billed , COGSdifferencesReduced/ close gaps compared toCBOPANew Characteristic for Inventory withtrue goods movementReport True volume Sold & use forallocationsHard Cut off to transition to ABCOPAonce stableReduce duplication of work in parallelrunning and reconciling of ABCOPA &CBCOPABusiness Process Design IntegrityNo reconciliation and reduction oftime to close

1PAST REPORTING ARCHITECTURE WITH BWCurrent StateSAPBOBJPFRNAEU CPReportingNA CPReportingCDM (Act/Proj)SAPBWProfitabilityActuals from BW(one per period)Various udget DataHyperionBudget datafromHyperion toS/.4Forecast Data toHyperion oncea periodForecastData form i2to BWSAPERPPFREUi2ReportsInterfaces

S/4 HANA LIVE EMBEDDED ANALYTICS – COMBINE SALES AND PROFITABILITY WITHIN S/4Query 1Query 2Queries/ReportsVirtual CubeZCC UDM0 DataFootprintZBF UDM2ZBF UDMSemantic LayerZBF BOOKEDUDMZBF INTRANSITBASEPhysicalTablesZBF BOOKEDBASEZBF BILL PCVBPAZCOPAACDOCACB COPAZBF FIN UDMZBF FORECASTZBF BUDGETUDMZBF nning

FUTURE VISIONSAP Analytics Cloud Single Planning Platform (BPC) Collaborative Planning Experience Supports top down or bottom up budgeting/ forecasting processWeb Based Planning & es within the transactional system Uses scalable and stable HANA architecture User experience using both Excel and Webbased analytics and planning (Unified userPFREUexperience )BPCFinance Trade SpendDataForecastData form i2to BPCi2SAP CRM/BW No interfaces (minimal integration) Budgeting / Forecast by material &customer / sales office

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