CO - Change Management

a spotlight presentation
CHANGE MANAGEMENT
FINANCE & ACCOUNTS
Aikya CO Team
The only thing constant in this world is CHANGE

Contents
 Common Changes
 Cost Center Accounting
Profit Center Accounting
Internal Orders
Profitability Analysis
Funds Management
Common Changes
Current Process SAP Process
 Monthly MIS report is compiled by collecting data from  Data will flow from various modules in the system in to the
various departments in an excel sheet. Controlling Module where by MIS reports will be online.
 Integration and reconciliation of MIS with accounting was  Since CO is integrated with other modules like FI, MM, PM
not observed. and PS, reconciliation is done in real time.
 Period End process is a lengthy and time consuming  Period end process is simplified with Schedule Manager
exercise. and maintenance of allocation cycles.
Common Changes
Benefits Roles Impacted
 Plan / Budget /Actual - Variance Analysis is available on line for

management to take timely decisions.
 Data flows from various modules viz. FI, MM, PM, SD, PS
through real time integration facilitating the preparation of MIS on
time.
Cost Center Accounting
 Cost Center Accounting is not done at the time when the  Cost Center Accounting will be done in real time from the
transactions are entered in to the system. It is done offline in point of origin of financial transactions.
an excel sheet.
 The identification of expenses to the responsible centers is
 To identify expenses to the responsible centers, various done thru cost centers there by reducing the number of GL in
ledgers are maintained in the legacy system. the system.
 Allocation and distribution of overhead is done thru excel  Allocation and distribution of common overhead will be
sheet . done thru distribution and assessment cycles.
 Cost Center Planning is done outside the system.  Cost Center Planning is done within the system.
Cost Center Accounting
 The drill down reports of cost center takes us to the origin of

expenses incurred to have a better control.
 Plan vs Actual is readily available once the period end activities

are done.
 Activity Types and Statistical Key Figures are used to allocate

the internal resources.
Profit Center Accounting
 Profitability of each operational unit is calculated in an excel  The data flows from various modules to Profit center as and
sheet as a periodic activity or as per requirement. when transactions occur. Profitability of each operational unit is
available in real time basis.
 Profit Center field is a mandatory field in all transactions. The

 Profit center data are not maintained in real time basis. profit center is either derived actively or passively.
 Assessment and distribution of overheads is done in excel Assessment and distribution of overheads is done as a
sheet. periodic activity by executing cycles.
Profit Center Accounting
 Balance sheet can be generated at Profit Center level with

the new GL functionality.
 Profit centers are now defined as independent organizational

units within the company code.
 Profitability of revenue generating units are readily available

for management purpose.
Internal Order
 Order creation is totally new concept. Costs of special event /  Internal orders are created to capture costs of a special
activity are maintained in excel sheet as and when required. event/ activity.
 Planning for such event is done in excel.  Planning and Budgeting is possible at Internal Order Level.
 Various costs for production, maintenance etc. or maintained  Internal orders will be created for capturing Assets under
by the concerned dept. in excel sheet. Construction, Production, Maintenance Orders, Investment
Orders
 At the end of the period, costs are allocated to respective
assets / cost centers manually.  At the end of the period, settlement of internal orders are
done by executing the settlement run.
Internal Order
 Plan / Budget / Actual – Variance reports is readily available
 Settlement of expenses to various receivers at various

percentage / proportion can be handled easily
CO-PA (Profitability Analysis)
(Applicable to MPSEZ)
 At present profitability analysis is being done Cargo wise  With the help of CO-PA, profitability analysis will be done
and party wise in excel sheet. on various dimensions such as Berth, Import/Export, Cargo ,
Activity , Asset , Customer etc.
 Planning is done in excel sheet.
 Planning will be done within the system.
 Overhead allocation is done in excel sheet.
 Overhead allocation will be done thru assessment cycle in
CO-PA

 This will provide accurate details for making critical
managerial decisions.
 It will provide data on various type of performance indicators

for Balance Score Card purpose.
Fund Management
 Till now budget has been prepared for planning / information  With FM module, expenditure will be controlled as per Budget.
purposes. If budget is exceeded, the system will stop the transaction till the
supplement is provided.
 Comparisons of Budget, Planned cost and Actual Cost will be

 Currently comparison of actual expenses with budget is available from the system.
prepared manually in excel.
 For IPMS related expenses for MPSEZ, the budget will only
give a warning and will not stop the transaction.

 Better control of expenditure.
Change Management
Thank You

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a spotlight presentation

The only thing constant in this world is CHANGE

 Cost Center Accounting

Profit Center Accounting

Current Process SAP Process

Benefits Roles Impacted

 Plan / Budget /Actual - Variance Analysis is available on line for

Current Process SAP Process

Benefits Roles Impacted

 The drill down reports of cost center takes us to the origin of

 Plan vs Actual is readily available once the period end activities

 Activity Types and Statistical Key Figures are used to allocate

Current Process SAP Process

 Profit Center field is a mandatory field in all transactions. The

Benefits Roles Impacted

 Balance sheet can be generated at Profit Center level with

 Profit centers are now defined as independent organizational

 Profitability of revenue generating units are readily available

Current Process SAP Process

Benefits Roles Impacted

 Plan / Budget / Actual – Variance reports is readily available

 Settlement of expenses to various receivers at various

Current Process SAP Process

Benefits Roles Impacted

 It will provide data on various type of performance indicators

Current Process SAP Process

 Comparisons of Budget, Planned cost and Actual Cost will be

Benefits Roles Impacted

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